Portfolio Recovery Associates Sued For Collecting on a Settled Debt

Portfolio Recovery Associates, LLC, or PRA is a huge debt buyer that files thousands of law suits every year to collect debts it has purchased for pennies on the dollar. PRA files hundreds of collection suits here in Arizona.

My office recently filed a case under the Fair Debt Collection Practices Act or FDCPA against PRA for attempting to collect an alleged balance on a judgment which had been settled in full, and which had been set aside by the justice court so there was no longer a judgment.

Collection Abuse Continues Against Arizona Consumers

As this case illustrates, collection abuse by collection agencies, zombie debt buyers, and their collection lawyers continues in spite of federal law prohibiting their actions. The FDCPA prohibits a debt collector --- including collection agencies, zombie debt buyers, and collection attorneys --- from misrepresenting that a debt is owed when it is not. The FDCPA also prohibits a debt collector from attempting to collect amounts not owe, including aksing for payment of a debt which has already been settled. 

Northland Group Incorporated Sued for Collecting on Settled Debt

In December 2012, my office filed suit on behalf of an Arizona consumer who had previously settled her debt through Northland Group, and who was then subsequently contacted by Northland to collect on the same settled debt.

The Fair Debt Collection Practice Act or FDCPA protects Arizona consumers from receiving collection activity on an account which is not owed. In this case Northland’s actions are extra egregious since the account was settled through it and it knew that nothing more was owed on the account.

If you are an Arizona consumer who is receiving collection calls or letters on an account that you do not owe, or one that was previously settled, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if I can help you.

West Asset Management Inc. Agrees to Pay $2.8 Million to Settle FTC Complaint.

The collection agency West Asset Management has agreed to pay a civil penalty to settle the Federal Trade Commission’s complaint against it for violating the Fair Debt Collection Practices Act. West Asset Management was accused of the following illegal behavior:
 
•    Misrepresenting itself as a law firm or that its collectors are attorneys;
•    Misrepresenting that debtors will be arrested or have their property seized if they don’t pay;
•    Threatening actions that would be illegal, or actions that the company has no intention of taking;
•    Making false statements to collect a debt or obtain information about a consumer;
•    Withdrawing funds from consumers’ bank accounts or charging their credit cards without their consent;
•    Depositing postdated checks before the date on the check, or threatening to do so;
•    Revealing to third parties that a consumer owes a debt;
•    Asking a third party for a consumer’s location information more than once without the third party’s consent or a reasonable belief that the person’s earlier response was wrong or incomplete and that the person now has correct location information;
•    Calling consumers before 8 a.m. or after 9 p.m., or at their workplace;
•    Communicating with a consumer after receiving written notice that the consumer refuses to pay or wants the collector to stop calling; and
•    Using obscene or profane language, or harassing consumers with repeated phone calls.

West Asset is not the only agency that uses all or some of these illegal collection tactics against Arizona debtors.

If you are an Arizona consumer who has been contacted by a third-party debt collector or debt buyer and feel that their collection actions were deceptive, unfair, harassing, or abusive, please call attorney Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822.

MIDLAND CREDIT MANAGEMENT, INC. CONTINUES TO COLLECT FROM ARIZONA CONSUMERS AFTER CONSUMERS FILE BANKRUPTCY

Midland Credit Management, Inc. Continues Collection of Accounts from Arizona Debtors after Receiving Notice of Bankruptcy Filing.

Midland Credit Management, Inc., the sister company to Midland Funding, LLC, seems to have made it a regular practice to ignore the notices it and Midland Funding, LLC receives from the bankruptcy court so that it can continue to collect against Arizona consumers. Midland’s actions are illegal.

Arizona Debtor Sues Midland Credit Management, Inc. in Arizona Federal District Court for Harassing Phone Calls.

In December 2010, I filed a suit under the Fair Debt Collection Practices Act or FDCPA against Midland Credit Management on behalf of an Arizona consumer who, after filing bankruptcy, continued to receive numerous harassing telephone calls from Midland.  Midland ignored the consumer’s efforts to tell the collector that she had filed bankruptcy and that she had an attorney.  Midland continued to collect on a debt that she had included in her bankruptcy.

Before the calls began, Midland Credit Management and Midland Funding, LLC had received two notices from the bankruptcy court of the consumer’s bankruptcy filing.  One notice was mailed to Midland by the bankruptcy court, and the other was electronically send by the court.  Both notices informed Midland that the debtor was represented by a lawyer, and thus it was illegal for Midland to directly contact the consumer and to attempt to collect the debt.

Arizona Consumer Sues Midland Credit Management, Inc. in Arizona Federal District Court for Contacting Her after She Had Filed Bankruptcy and Knowing She Was Represented by a Lawyer.

In the second case, Midland Credit Management, Inc. had received two electronic notices from the bankruptcy court in early November 2010 of the consumers’ bankruptcy filing.  Despite these notices, Midland sent two letters, one in November and one in December, directly to the wife demanding payment on an account it claimed was owed.  Midland also directly sent the husband a letter in January 2011 on another account that was in his name only.

FDCPA Prohibits Direct Communication with a Consumer it Knows Is Represented by a Lawyer.

The Fair Debt Collection Practices Act or FDCPA protects Arizona consumers from debt collectors communicating directly with them once they have hired a lawyer.  So, any Arizona debtor who files bankruptcy using a bankruptcy lawyer should not receive any direct contact from a debt collector.  And, if a debt collector does contact the consumer directly, then the creditor would be in violation of the FDCPA.

If you are an Arizona consumer who has filed bankruptcy using a lawyer, and has been contacted by a debt collector after the bankruptcy, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if I can help you.

J.R. Brothers Sued by Arizona Consumer over Illegal Threats.

My office recently filed suit on behalf of an Arizona consumer against J.R. Brothers Financial, Inc., an Arizona collection agency. The lawsuit alleges that the J.R. Brothers’ collector told the consumer that because she had written a bad check, she had committed a felony.  It also alleges that J.R. Brothers’ threatened to “press charges” against her for passing a bad check.  Finally, the suit alleges that the collector told the consumer that her doctor would no longer see her because she had not paid her bill. These threats violate federal law!

False Threats Under FDCPA Illegal.

The basis for the Arizona lawsuit is that J.R. Brothers violated the Fair Debt Collection Practices Act or FDCPA by making false threats to coerce payments on a debt.  Even when a debt is owed, a collection agency such as J.R. Brothers is prohibited from threatening or implying criminal prosecution unless the action is lawful (which it was not here), and the debt collector intends to take such action (which it did not intend to take here).

J.R. Brothers’ false statement that the doctor would no longer see the consumer as a patient is also illegal under the FDCPA.

Any false or misleading representations made in connection with the collection of a debt are prohibited by the FDCPA.

FDCPA Provides Recovery of Damages for False or Misleading Representations.

The FDCPA provides that any collection agency, such as J.R. Brothers in this instance, is liable to the consumer for money damages for making false or misleading statements or representations in order to collect a debt. Damages under the FDCPA include statutory damages of up to $1,000, plus actual damages resulting from the violation. They are also liable for court costs and attorney’s fees.   

Take Action to Stop Collection Harassment.

If you are being harassed or threatened by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  Call Floyd W. Bybee at 480-756-8822

Debt Collection Harassment and Abuse Top Complaints to State Attorneys General.

The National Association of Attorneys General recently released their Top 10 List of Consumer Complaints for 2008, and Debt collection was number one.

The complete list is:
 
    1.    Debt Collection
    2.    Auto Sales
    3.    Home Repair/Construction
    4.    Credit Cards (tie)
    5.    Internet Goods and Services (tie)
    6.    Predatory Lending/Mortgages
    7.    Telemarketing/Do-Not-Call
    8.    Auto Repair
    9.    Auto Warranties (tie)
    10.    Telecom/Slamming/Cramming (tie)

Collection Harassment and Abuse Likely to Continue.

With the current economic struggles, Arizona consumers will likely continue to see increased collection harassment and abuse from collection agencies and junk-debt buyers. With fewer dollars in consumer’s pockets, collectors are resorting to more aggressive, abusive and threatening tactics to wrestle the limited money away from the consumer into their own pockets.

Report to Your State’s Attorney General.

If you have been subjected to collection harassment or abuse, you can report it to your own state’s attorney general. For you Arizona consumers, you can file a complant at the Arizona Attorney General's website.

Remedies Under the Fair Debt Collection Practices Act or FDCPA.

Remember, you also have the right to file suit against the abusive debt collector and recover damages under the Fair Debt Collection Practices Act or FDCPA.

If you are an Arizona debtor current being harassed or abused by a debt collector or junk-debt buyer regarding a consumer debt, I can help. I offer a free consultation. 

Call Floyd W. Bybee at 480-756-8822

Arizona Department of Financial Affairs Obtains Consent Decree Against Child Support Network, Inc.

Child Support Network, Inc., an Arizona collection agency, recently entered into a Consent Decree with the Arizona Department of Financial Affairs, the regulator of Arizona collection agencies.  The Decree was the result of Child Support Network’s misrepresentation of available remedies to enforce collection of a child support order, including threatening jail time and suspension of driver’s license, continued contact with the debtor’s employer, and contact with the debtor’s father threatening jail time if the father did not pay the debt.

Since this debt was for child support, there would be no remedies under the Fair Debt Collection Practices Act or FDCPA — the FDCPA requires that the debt or obligation arise out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes.  However, many of the tactics used by Child Support Network are regularly employed by third party collection agencies and by junk-debt buyers collecting on consumer debts and would violate the FDCPA.  

Stop Collection Harassment Today!

If you are being harassed or abused by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  I offer a free consultation.  

Call Floyd W. Bybee at 480-756-8822

 

Arizona Consumer Sues Gurstel, Staloch & Chargo for FDCPA Violations.

My office recently filed suit on behalf of an Arizona Consumer again the Minnesota law firm of Gurstel, Staloch & Chargo, P.A. (Gurstel also has offices in Tempe, Arizona) for violations of the Fair Debt Collection Practices Act (FDCPA). The lawsuit alleges that Gurstel continued to attempt to collect the debt from the consumer even though she had previously sent them written notice that she disputed the debt and notice that she refused to pay the debt.

Collectors Must Stop All Collection Efforts If Consumer Disputes Debt.

If the consumer disputes the debt in writing sent to the collector within thirty days after receiving the initial written communication from the collection agency, the collector must stop all collection activities until it provides “verification” of the debt to the consumer. Here, Gurstel received the dispute letters and finally stopped its collection efforts for over four months before it began calling her again demanding payment and threatening legal action. Gurstel had never provided verification. These calls violated the FDCPA.

Collectors Must Stop All Communications With the Consumer if the Consumer Sends Notice That She Refuses to Pay the Debt.

The FDCPA provides protection from continued collection harassment if the consumer sends written notice to the collection agency or collection law firm that she refuses to pay the debt. Upon receipt of such a notice, the agency or law firm must stop all communications with the consumer, including letters and phone calls. It does not, however, stop collection efforts such as filing a lawsuit or reporting the account to the credit bureaus.

In the case just filed, the consumer notified Gurstel that the alleged debt was the result of fraud and that she therefore refused to pay the debt. The subsequent phone calls violated the FDCPA.