The Fair Debt Collection Practices Act (FDCPA) is a federal statute constituted by the Federal Trade Commission (FTC) to protect and ensure fair debt collection practices. This Act provides consumers an avenue for disputing and obtaining validation of debt information in order to ensure the information accuracy. The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. This Act is sometimes used in conjunction with the Fair Credit reporting Act (FCRA).

While the FDCPA is a federal statute, the states have different laws along the lines of the FDCPA. There are not many differences in the federal and state Acts but each state has certain specific rules attached to their statutes. California has its laws which are commonly referred to as Rosenthal Fair debt Collection Practices Act (RFDCPA).

Per the FDCPA, a debt collector is a third party collector either employed by a creditor or by a debt collection agency which is collecting on the debt. The RFDCPA differs in this as the RFDCPA includes creditors as debt collectors. In the RFDCPA, collection of property is included. In addition to the federal notices that are required by the FDCPA, the RFDCPA requires more notices. The RFDCPA includes in its violations all of the acts that are violations of the FDCPA with a couple of minor exceptions.

“California Civil Code 1788.2 (c) says the term "debt collector" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection, but does not include an attorney or counselor at law.”

So, if you start getting collection letters from anyone, including the creditor, and you live in California, you should check with an attorney to see if there are any FDCPA or RFDCPA violations.

Krohn & Moss, Ltd. has qualified RFDCPA attorneys who have helped thousands of customers in dealing with debt collection harassment cases.

The Fair Debt Collection Practices Act (FDCPA) enforced by the Federal Trade Commission (FTC) and private attorneys, allows to check the abusive conduct by debt collectors. This was also in the wake of the number of bankruptcies increasing due to these practices. The FDCPA provides guidelines for debt collectors collecting legitimate debts and provides protections and remedies for debtors.

The FDCPA covers all personal debts, family, household and medical debts, and credit card bills. The FDCPA is a federal law and different states in the United States have different debt collection laws. While filing a case you must take into consideration both the state and federal laws. The state laws are similar to the federal laws in structure but may cover a broader range of debts.

In house debt collectors or debt collectors engaged by creditors are normally not governed by the FDCPA. The Act governs third party collectors.

A debt collector should inform you the following in writing:

• The amount of money you owe
• The name of the original creditor to whom you owe
• Debt collectors should mention that unless you dispute the validity of the debt or a part of the debt, the debt will be assumed valid by the debt collector
• If you dispute the validity of the debt in full or in part within the thirty day period, the debt collector will send you the debt verification
• The debt collector will provide the name of the original creditor in reply to your written request within thirty day period
• If the creditor mentioned by the debt collector is different from the original creditor, the debt collector should provide you the details of the original creditor
• Debt collector needs to send a warning stating that the communication is from a debt collector and that the information he collects may be used to collect debt
• The first notice from debt collectors as well as all subsequent communication should contain this warning

Debt collectors are not bound by the initial thirty day period to continue the debt collection process. The only measure that debt collectors must take care of is to abide by the rights you have in the FDCPA. Their debt collection methods should be within the guidelines under the FDCPA.

Failing to send information is tantamount to violating the FDCPA. In 2009, 22,708 complaints of the total FDCPA complaints or 25.7% were about debt collectors not providing the required notices. This was 10% more than the complaints in 2008 which was 15.7%.

Verifying debts at your written request is mandatory under the FDCPA. If debt collectors do not verify the disputed debts, they must cease all collection efforts. In 2009, 11.5% of all FDCPA complaints were about not verifying disputed debts.

It is imperative for debt collectors to send consumer notices. The absence of such notices is considered a violation of the FDCPA. Your rights under the FDCPA protect you against such violations. You may contact an FDCPA attorney if you are a victim of such a violation.

One of the violations of the Fair Debt Collection Practices Act (FDCPA) enforced by the Federal Trade Commission (FTC), is collecting a non existent debt. Debt Collectors resort to creating phantom debts or bringing old and paid debts to life in search of easy money.

Creditors, unable to recollect debt from debtors, usually sell debts to third party debt collectors. These third party debt collectors are over zealous to extract money from innocent consumers. The debt collectors buy debts from creditors for a throw away price and have nothing to lose. However, each debt collector's commission is calculated on the basis of his ability to collect payments on debts.

Debt collectors need prey to feed on. You are the vulnerable victim that they have found for this purpose. Debt collectors bet on your lack of knowledge of your rights in the FDCPA. They often dig out old debts either completely paid or written off or have crossed the Statute of Limitations. These are called zombie debts. They are used by debt collectors to intimidate you to pay up. You have rights in the FDCPA that protect you from such debts.
 
If you are being harassed by a debt collector for an old debt of yours which you have repaid completely, you have to use your first tool – ask for validation of the debt within 35 days of the first call from debt collectors. Ask the debt collectors to send complete validation of the debt along with the name of the original creditor and details of the amount spent. Your request should be made in writing and the letter sent via certified mail with return receipt request. This should stop the debt collectors in their tracks because it is very difficult for debt collectors to validate a debt that is so old.

Like everything else debts also have expiry dates. The Statute of Limitations (SOL) is the maximum time a debt collector can collect the payment from you. Even after the SOL expires, if debt collectors contact you, you can counter by sending a cease and desist letter to the debt collectors through certified mail with return receipt request. If the debt collector sues you, you may go to the hearing  with the SOL and prove your case.

Cease and desist letter is a formal written request to debt collector to stop any further communication with you. This letter should stop the collector from calling you any further. If he continues to call, you can take legal action against him for violation of the FDCPA.

You may engage an attorney to handle the legal aspects of the case and intimate the debt collectors about this. Once you engage an attorney, debt collectors cannot contact you. If he still does he can be sued for this violation of the FDCPA.

Debt collectors cannot legally send your debt payment history to credit bureaus within the 30 days period for debt validation. If he reports, you can dispute the credit report by sending a credit dispute to the credit reporting agencies. It would be better to include a copy of the debt validation letter you sent to debt collectors.

You have a big company out here in the American society when it comes to debts. Rest assured there are millions like you immersed in debts. The good news is you also have many debt repayment techniques to free yourself of the debt. There are thousands of debt management companies thriving to help you.

It is important to understand why people get into debts that they cannot repay. American society has countless opportunities to make money. In this country, people start making a living working early in their lives. Once financially independent you get into the temptation of spending. The spending habits are out of control because you are in hold of credit cards that allow you to buy whatever you wish to at the outset.

Little do you remember at that time that you need to repay. The small minimum repayment balance often tempts you to consider buying what you cannot afford. If you were to buy an expensive Television set with a credit card repayment of $45.00 per month, it seems a very easy option to living without that Television set.

This Television set may lead to some expensive gifts for Christmas and then a trip to Bahamas for holidays. After a point of time it becomes impossible for you to stop and before you realize you are completely in a debt trap.

A credit card is a curse when it comes to the spending habits of individuals in our country. Approximately half of the credit card holders in America pay only the minimum monthly payment. Only a very few actually repay the credit card bills on time. If you can get over the temptation of buying with plastic money you can redeem yourself from debts.

If you have decided to absolve yourself from debt the first step is to write down your income and expenses. Where possible you may cut down the expenses by marking them unnecessary. You may budget the number of times you are eating out, the expensive cosmetics, the jewelry and the clothes that you buy etc. Expenses like college fee or medicines cannot be budgeted. Now budget your expenses to match your income and write down how much you can save.

The extra savings that you accrue now can be used for debt repayment. Of course the savings may seem very little at first but a persistent effort from you can do magic to the savings pile. In a month or two you will realize that you were actually not spending your money wisely that led you to the debt in the first place.

Once you have started saving and started using that money to clear your debts, it is easier to fall into the habit of saving similarly even after the debt is completely repaid. This habit will ensure you don't over spend anymore.

It is unpleasant to take calls from debt collectors. Quite often you don't want to speak to them. You can't avoid paying them if you have spent all those dollars through credit cards. If the debt is genuine it is better to pay up. However, even if you owe the debt you are protected against debt collector's harassment .

Let us understand debt collection harassment. A debt collection agency (third party) is retained by original creditors (first party), credit card companies or banks for example, to collect a debt from you which they failed to collect. Debt collection agencies (third party) can even be companies that bought the debt from original creditors (first party) and are intent on collecting the payments from debtors (second party). Debt collectors do not have the right to harass you for the money. The Federal Trade Commission (FTC) has enforced certain guidelines for fair debt collection in the Fair Debt Collection Practices Act (FDCPA).

The FDCPA requires debt collectors to follow basic rules to collect debts from consumers.

A recent case of debt collection harassment in Dallas was resolved by the jury awarding the consumer $1.5 million for punitive damages and $50.000.00 for mental anguish against constant debt collector harassment for a paltry amount of $200.00. The collectors left obscene and racial comments on the voice mail box of the consumer. The objectionable messages were used as proof of harassment and the Dallas County Jury passed judgment in the consumer's favor.

If not for these recorded voice messages, the case could not have stood the trial.

It is pertinent to note that if you know your debt collection rights you would not be harassed. A debt collector should not call you at inconvenient times, or repeatedly or speak obscene language. A debt collector should not call your family and friends to seek information about you except for your contact coordinates. Debt collectors should not call at your place of employment knowing you or your employer would not approve it. Debt collectors should not resort to abusive or racial comments that can hurt the sentiments of consumers.

You can stop the menacing calls by writing to the debt collectors. A letter requesting the debt collectors to stop calls and validate debt through a certified mail is a powerful weapon you should use to keep the calls away. Although this does not absolve you of the debt it will stop the unpleasant harassment. Not knowing this simple technique has led many harassed consumers to consider serious actions like suicide. Some consumers end up as medical wrecks.

Debt collection has taken ugly turn with the debt collectors violating the FDCPA. To ensure you are not a victim of debt collection harassment, know your rights in the FDCPA.

All of us at one time or the other gets cash for a gift. How many of us crossed theroid to the nearest bank and opened a saving accounts? Very few. We might want to blow it off on the latest game software for the PS 1, 2 or now 3. That was about the childhood flippancy we may not leave behind and the habit of extravagance stays with us.Saving habit inculcated as a child is one invaluable gift that goes a long way with us for a stress free life. We should not make it a habit and blame it on the recession. Some exigencies justify borrowing. After all saving is earning. If you were compelled to borrow recently and want to get out of it fast, consider, every month  how much money you: 

• Earn
• Spend
• Can save

 Carefully evaluate a long-term action plan to be rid of the debt on your own, in the following ways: Cut your spending immediately  Little drops of water make the mighty ocean.  You will be surprised how quickly small expenses add up to big savings.Make a list of the things you can do without and the things you can do yourselfExpensive recurring services from outside agencies for house cleaning, manicures, lawn-care services are the things you can do yourself. Look at the big picture of having a debt free and stress free life. Restaurant food is one extravagance you can do without. Carry home made luncheons and breakfasts to workplace and watch your savings grow quickly in your account. Other luxuries like premium cable, cell phone service with all those extras, new CDs or bills for online music are yet some more items one does not need. To save you real money every month opt for a less expensive cable/cell phone service package.Downsizing from expensive car/ apartment lease may prove difficult but not impossible. Such radical changes in the lifestyle add up to hundreds or thousands of dollars every month and would provide you with money you can use in paying off your debt. Do not take a new debt until you are in total control of your finances. You need to negotiate with your creditors, debt collectors, and credit or debt counselors. Stick to a budget and keep in touch with your creditors.If you have problems making payments, there always are ways you can convince your creditors, debt collectors, and credit or debt counselors about the seriousness of your intentions of repaying the debt.  The More Principal you pay off, the more you save on the interest The relation between your debt payment and the amount of interest is at the end is always in reverse proportion. When more money goes toward paying off the actual debt, less of your money goes to paying interest on your debt and you will reach your debt reduction goal quicker. The larger your debt repayment, the greater the savings from bringing down the interest rates on it. Negotiate with each credit card lender for a lower rate   Call the lender and let him know that you are shopping around for better terms. The credit card market is very competitive today, and you may find that this simple tactic can lower your rate by at least a couple of percentage points, and often more.  Visit www.westopdebtcollectors.com for more information if you are a victim of harassment or abuse by an unlawful debt collector. Prioritize your debts by interest rate.  Pay off the debts with the highest interest rates first, yet keep paying at least the monthly minimum due on each one.  Keep in touch with your creditors If you face any hurdles in paying your bills: 

• Contact your creditors
• Explain the problems you are facing
• Work out a modified payment plan for a more manageable one

 Negotiating with your creditors early can save you real money by avoiding late and other penalty fees. It might also impress upon them that you are serious about your commitment and they will be more sympathetic and more likely to help.Visit www.westopdebtcollectors.com for more information if you are a victim of harassment or abuse by an unlawful debt collector. Negotiate with your Debt Collectors If your debt is long overdue, a debt collector may enter the scene to do the needful for your creditor. Debt collectors, like the original creditors, often consider a modified payment schedule if you request them to, in case of an exigency.Visit www.westopdebtcollectors.com for more information if you are a victim of harassment or abuse by an unlawful debt collector. Know your rights and duties Statute of limitations varies by state and you may be exempt from having to pay a debt. But then, certain debts like the government student loans can be collected regardless of how old they are. More information on your rights under the Fair Debt Collection Practices Act can be found on the Federal Trade Commission Web site. In spite of the law, many debt collectors break the law with the impression that consumers are not aware of the protections afforded to them by the Fair Debt Collection Practices Act. WeStopDebtCollectors protects consumers from bad debt collectors by providing legal assistance, and we can help stop unlawful debt collectors for free which may also entitle you for cash compensation.Visit www.westopdebtcollectors.com for more information if you are a victim of harassment or abuse by an unlawful debt collector.

In commercial collection industry, the debtor is a potential business. Anybody might need to borrow money for the purpose of business. Any amount of loan is as important as the other. In fact small borrowers form 30% of annual turn over in the financing industry.  The borrowers include: 

• Individuals
• Sole proprietors
• Partnerships
• Corporations

 Let us look at who is who in the financing industry. First party agency A first party agency is the department/subsidiary/the company itself that owns the debt it has financed. They are part of the first party to the contract/the original financier and is called the first party and are not subject to the fair debt collection practices act that police the third party collectors/ agencies. The employees from this section are responsible for 

• Recovering debt from the second party agency/Debtor
• Maintaining cordiality in customer relations

 The second party/Debtor  When business needs money, you might approach a financing institution or a financier for help.You will be eligible for bank loans only if you show collaterals to assure the banks that you will promptly repay what you borrow. To ensure a positive cash flow, the financing companies often hire debt collection agency/collection agents on their behalf after the stipulated 90 days, to recover the loans according to the contract.Many a lender,  like the credit card or the insurance company  go after unpaid bills after only 60 days or sometimes even earlier. If a loan collection process is more expensive than the amount of loan itself the financing banks/institutions may not be willing to try very hard to collect those bills.They might write off these loans.With a tight cash flow and slow business, companies are getting tough with the bad debts as a means to supply cash to stay afloat even it if means getting  a fraction of the original loan. Third party agencies Creditors retain accounts of their first party agencies for a period of around 6 months.Then they write it off and pass it onto a Third Party Agency/Collection agency. FAQs about Collection agency/the Third-party agencies  

• They are not a party to the original contract
• They are  assigned accounts by the creditors directly for a contingency-fee
• They may initially cost nothing to the creditor/merchant, except for the cost of communications
• They charge the creditors  depending on the individual service level agreement /SLA
• They charge a percentage of the debt upon successful collection known as the Pot Fee/No Collection - No Fee terms ranging from 10% to 35%
• They are  entitled to this fee should the creditor decide against the collection before its complete recovery
• Some  may offer a flat fee, around $10.00, as a pre-collection/soft collection service

 They start with sending a series of increasingly urgent letters, each ten days apart, instructing the debtors to 

• Pay the amount owed directly to the creditor
• Risk a collection action and negative credit report in case of failure to oblige

 Should the debtor fail to respond, these accounts may revert to hard collection status based on the SLA agreed upon. Despite the ugly face of the collection industry, having a debt collection agency on your side, from a business point of view is an asset in itself. If you are a soft target for any loan shark/ zombie/junk debt collector there are laws that help you chase them away. They might even have to pay you in damages besides paying for your attorney. Click www.westopdebtcollectors.com for more information.Fill the form for a free case review.  

 

Third-party Debt collector or junk debt buyer is a bane from hell for anybody who got onto his hit list. We often read the horror stories dealt on innocent victims by the debt collectors, all over the web. Debt Validation, Debt Verification and Cease & Desist Letters are very effective in putting a third-party debt collector or junk debt buyers at bay.Mailing a Cease & Desist Letter along with filing your Notice of Appearance, Answer-Affirmative Defenses, and Certificate of Service, would  especially be helpful in getting  the debt collector back off, if you are engaged in a credit card debt lawsuit.Have you ever dreamt of the debt collector disappearing into the thin air? Things you need to do to realize your dream: 

• Maintain a file for all the correspondence and the communication with the debt collector such as the  Validation, Verification and Cease & Desist order
• Make photocopies of all the communication with the debt collector like the Validation, Verification and the Cease & Desist orders
• Send  a photocopy each of all the communication with the debt collector like, the Validation, Verification, Cease & Desist orders via Certified, Return Receipt Priority Mail with a USPS Tracking Number to him
• CC to the Attorney General in your state and to the one in the state of the debt collector
• Include the USPS Tracking Number for all parties in the letter so the debt collector would know that you are not lying
• CC  to the Bar Association for your state and to the one for the state of debt collector
• CC to the local TV consumer investigative reporter for your state and to the one for the state of the debt collector
• Include the C C  in bold letters on all documents sent to the debt collector with the USPS Tracking Numbers
• Follow through with his threats to contact the Bar Association

 Be pro-active and let the debt collector on notice, know that you know your rights and that you refuse to be bluffed by him. The debt collector very soon will be intimidated by your knowledge and would disappear into the thin air. This way, you have nothing to lose except the debt collector. Visit www.westopdebtcollectors.com for more information if you are a victim of harassment or abuse by an unlawful debt collector. In spite of the law, many debt collectors break the law with the impression that consumers are not aware of the protections afforded to them by the Fair Debt Collection Practices Act. WeStopDebtCollectors protects consumers from bad debt collectors by providing legal assistance, and we can help stop unlawful debt collectors for free which may also entitle you for cash compensation.

The Legitimate Debt Collection Industry: An Essential Vice for the Economy of a Nation   Every time I browse, I see the media abounding in the “horror stories” about the terrible debt collector. I have not seen any legitimate debt collector coming out with a sob story or a hard luck issue. Naturally my heart goes out for the debtors in distress, and for me the debt collector was a legend of highly motivated blood sucker.This was before I stumbled upon a study on the economical contribution by the third party collection industry to its nation. It stated that the number of employees in the third-party debt collection industry has grown from 70,000 in 1990 to 150,000 in 2005.  If the Debt collectors are so mean and inhuman, why is the diabolical debt collector with a payroll of $5 billion in 2005 allowed proliferating in the society? I, very soon got the answer. The study was referring to the legitimate and intelligent delegate of a debt collection agency, but not to the street smart brawler with a base ball stick recruited by a greedy loan sharks, zombie or junk debt collector.Because of this infamous trio the third party debt collection agency has fallen into discredit. I continued to look at the latest study from ACA International, the association that represents the debt collector. I find it more interesting as I go by and I started to look at the intriguing statistics. The good news is as following: 

• The industry The industry directly and indirectly, has supported a total of 426,700 American jobs with a payroll to the tune of $15 billion in 2005
• In 2005, the collection industry returned $39.3 billion to businesses that helped extend consumers credit
• Debt collectors saved the average American household $351
• The $39 billion returned to the U.S. economy was three percent of all U.S. corporate pre-tax profits
• Many companies would other wise have ended up  bankrupt if it was not for the debt collection services
• The fastest growing users of third-party debt collectors are the local, state and federal governments
• Federal government sought help  from the private collection agencies in its 2005 fiscal year for $13.7 billion in delinquent receivables 
• The private collection agencies recovered $603.1 million in 2005 for the federal government, up from $351.3 million in 2000

 Bad debt results in inflation in any country as the prices increase, in a bid to cover the losses.Thanks to the third party debt collection industry that has helped avoiding a dent in the annual savings in an average household to the tune of: 

• 19 bags of groceries
• 155 gallons of gas
• More than four months of electric bills

 If the debtors regularly repay the money they owe, they are helping the nation in general, and families in specific, tide over many a monetary crisis.In more ways than one, a legitimate debt collector appears to be more patriotic than a patriotic citizen. We only need to be aware of the credentials of lending party before we borrow from them. We can do away with the heart ache and the angst that we might have to face later. If you are a soft target for any loan shark/ zombie/junk debt collector there are laws that help you chase them away. They might even have to pay you in damages besides paying for your attorney.Click www.westopdebtcollectors.com for more information.