Collection Agency Violates Telephone Consumer Protection Act

National Credit Adjusters, LLC Sued in Arizona for Violating Telephone Consumer Protection Act

My office recently filed suit against the Kansas collection agency National Credit Adjusters, LLC for violating the Telephone Consumer Protection Act, or TCPA. The suit alleges that National Credit Adjusters repeatedly telephoned the consumer's cellular phone in an attempt to collect a debt allegedly owed by the prior owner of the phone number. An agency, like National Credit Adjusters, often will use an auto dialer to telephone a debt who has now changed phone numbers. The calls then go to the new owner of the number who does not owe the debt. In addition, the new owner of the number never gave National Credit Adjusters permission to call. So the calls all violate the TCPA

TCPA Provides Recovery of Damages fro Arizona Consumers

The TCPA provides the recovery of damages of either $500 for each negligent call or $1,500 for each willful call. So an Arizona Consumer who has been called 20 times on their cell phone for a debt which does not belong to them, may be able to assert a claim for damages between $10,000 and $30,000.

 

FDCPA Requires Notice Prior to Bank Withdrawal

FDCPA Requires Collection Agencies to Give Consumer Notice Prior to Taking Monthly Withdrawals From Bank Account

Many consumers enter into payment agreements with collection agencies where the agency will take month payments from the consumer's bank account to pay off the debt. However, in order to take these automated and post dated payments, the collection agency must first sent written notice not more than 10 nor less than 3 business days before the withdrawal. So if a payment is scheduled to come out on the 15th of the month, the agency should be sending a letter sometime between the 1st and the 10th of the month. Most important, is that the debtor be given sufficient notice to make sure funds will be available in the bank account, and if they are not, sufficient time to notify the agency to not take the withdrawal.

Failure to Give Proper Notice of an Automatic Withdrawal Violates the FDCPA

A collection agency or law firm which fails to provide a debtor with adequate notice of an upcoming withdrawal from a bank account violates the Fair Debt Collection Practices Act, or FDCPA. The FDCPA provides consumers with claims for damages for these types of violations.

Arizona Consumer Sues National Credit Systems, Inc. for Failure to Give Written Notice Prior to Taking Automatic Bank Withdrawals

My office recently filed suit in Federal Court alleging National Credit Systems, Inc. failed to provide notice adequate notice to the debtor prior to taking out pre-authorized monthly debits from her bank account. Such failure to give proper notice violates the FDCPA. 

Client Services, Inc. Sued for Debt Collection Abuse

Arizona Consumer Sues Client Services, Inc. for Debt Collection Abuse

My office recently filed suit against the Missouri collection agency Client Services, Inc. for violations of the Fair Debt Collection Practices Act or FDCPA. The suit alleges that Client Services sent a letter demanding payment of over $147,000 for a Citibank credit card account which had a ending balance of less than $17,000 ten years earlier. When the debtor disputed the debt and demanded verification, Client Services sent copies of several old Citibank billing statements which showed less than $17,000 was owed.

Right To Dispute Debt

Under the FDCPA, a consumer has the right to challenge the debt by sending the collection agency a dispute letter and requesting verification the debt. If this is done within 30 days of the receipt of the initial letter from the collection agency, the agency is required to stop all collection activity until it provides validation and verification of the debt. That is what the debtor did in this case. He demanded that Client Services provide proof that he owed $147,000 as claimed in Client Services' initial letter. However, Client Services only provided statements showing $17,000 was owed, not $147,000. 

FDCPA Prohibits Collection Agencies from Collecting Amounts Not Owed

A collection agency cannot collect or attempt to collect any amount which is not owed under the contract, or which is not provided for by law. Sometimes, agencies add extra fees, or interest which is not allowed by the underlying contract, and or not allowed by law. If an collection agency attempts to collect these "forbidden fees," they are in violation of the FDCPA and the consumer has a right to collect damages for the agency's illegal actions. The suit alleges Client Services, Inc. attempted to collect amounts which were not owed, thus violating the FDCPA.