Debt Collectors Misled Borrowers

On September 6, 2012, in Debt collection defense, by Jason Mays, Esq.

Debt Collectors Misled Borrowers

Court Finds that Debt Collectors Misled Borrowers

A debt collection agency recently sent a letter to borrowers telling them that their student loan debts could not be discharged in bankruptcy, and must be paid. The truth is, student loans CAN sometimes be discharged in bankruptcy, although it is uncommon. Read more about this topic here.

Debt collectors misled borrowers often, judging from the number of successful Fair Debt Collection Practices lawsuits against them. If you have been harassed, lied to, contacted at unusual hours, or otherwise abused by debt collectors, you may be entitled to compensation.

Long Island Litigation Attorneys

The attorneys at The Law Firm of Vaughn, Weber & Prakope, PLLC can help in these matters.  Call (516) 858-2620 today for a free consultation!

Aggressive Debt Collectors

On September 6, 2012, in Debt collection defense, by Jason Mays, Esq.

Aggressive Debt Collectors

This article seems to suggest that they are. Although this is bad news for borrowers, the law, fortunately, protects borrowers from overly aggressive debt collectors. Debt collectors that harass borrowers, contact borrowers at odd hours, or contact borrowers’ employers may be violating the Fair Debt Collection Act. If so, those debt collectors may be forced to pay borrowers $1,000 in damages. Additionally, without proper documentation, the debt may be discharged.

If you believe that you have been harassed by aggressive debt collectors, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to help! Call (516) 858-2620 for a free consultation.

Flawed Credit Card Lawsuits

On August 14, 2012, in Debt collection defense, Debt settlement, by Robbie L. Vaughn, Esq.

Flawed Credit Card Lawsuits

Flawed Credit Card Lawsuits

Debt collectors are not the only ones filing faulty paperwork in an attempt to collect on alleged debts. As was reported in a recent New York Times article, original creditors are also filing faulty paperwork and overstating amounts owed in their credit card lawsuits. However, the article shows that Judges are starting to get wise to this:

The same problems that plagued the foreclosure process — and prompted a multibillion-dollar settlement with big banks — are now emerging in the debt collection practices of credit card companies.

As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money. But many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses, according to judges who oversee the cases.

Lenders, the judges said, are churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers. The concerns echo a recent abuse in the foreclosure system, a practice known as robo-signing in which banks produced similar documents for different homeowners and did not review them.

‘I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,’ said Noach Dear, a civil court judge in Brooklyn, who said he presided over as many as 100 such cases a day.

The problem is that the creditor is usually granted a default judgment because the borrower does not show up for court. This typically results in the borrower being responsible for whatever amount the lender alleged was owed in their complaint. The amount alleged to be owed is not always accurate! The same  NYT article states that “The Office of the Comptroller of the Currency is investigating JPMorgan Chase after a former employee said that nearly 23,000 delinquent accounts had incorrect balances, according to people with knowledge of the investigation.” So, as we have stated in the past, it may be a good idea to defend that credit card lawsuit!

The Law Firm of Vaughn, Weber & Prakope, PLLC can assist you with debt settlement and debt collection issues. Call (516) 858-2620 to arrange a FREE consultation with an attorney!

Debt Collectors Falling Short

On August 14, 2012, in Debt collection defense, by Robbie L. Vaughn, Esq.

Debt Collectors Falling Short

Debt Collectors Falling Short

Debt collectors are third parties that buy debts from lenders. More specifically, debt collectors buy the right to sue for a debt. The problem is, they don’t always have all the evidence they need to actually win the lawsuit.

If you are being sued by a debt collector, or have other legal questions, feel free to call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 to schedule a free consultation.

 

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan