Anyone who has had or is having financial trouble has experienced the nightmare of the collection companies. Many ignore the law (Fair Debt Collection Practices Act) by calling before 8:00 am or after 9:00 pm, plus numerous other acts done for the sole purpose of bullying the consumer.

Some Defenses to Private Student Loan Collections

Student Loan Debt Rises to $1.5 TRILLION in May, 2018 There are two types of student loans – federal and private.  Federal loans have some protections for the lenders that private student loans do not.  Every month lawsuits are filed by the thousands, many that are invalid, but if the borrower does not respond the […]

IRS Assigns Collection of Back Taxes to Outside Companies

Four Collection Companies Hired to Collect Old IRS Tax Debts The IRS indicates it will give taxpayers and their representative written notice that the accounts are being transferred to the private collection agencies. The agencies are to send a second, separate letter to the taxpayer and their representative confirming this transfer.

Bankruptcy of Seniors Increasing – A Good Option for Many

Medical debt – number one cause for seniors filing bankruptcy According to an article in Forbes, the 65+ demographic now makes up a higher percentage of bankruptcy filers than it did a decade ago. Filing for bankruptcy is seen by many seniors as a social stigma.  Some live in a nightmare where they are forced […]

Beware Consumers No Longer Protected, Big Business Wins Again

ONCE AGAIN CONSUMERS LOSE TO BIG BUSINESS Reuters reports that Richard Cordray, director of the Consumer Financial Protection Bureau, will step down at the end of the month.  Large companies (banks, auto finances, pay day loans and student loans, to name a very few) are ecstatic because this opens the door for Trump to nominate […]

FDAA Cheated Consumers, Sued for Fraud & Misleading Clients

Sued for Fraud – Federal Debt Assistance Association, LLC and Financial Document Assistance Administration, Inc. “FDAA” The CFPB alleges that FDAA’s so-called “debt validation” programs violated the law by falsely promising to eliminate consumers’ debts and improve their credit scores in exchange for thousands of dollars in advance fees.

Supreme Court Finds Debt Buyers Free to Collect on Old Debts

May 15, 2017: Resolving a split of circuits, the Supreme Court held 5/3 in Midland Funding LLC v. Johnson  6-348 (Sup. Ct. May 15, 2017) that a debt collector who files a stale claim that is “obviously” barred by the statute of limitations has not engaged in false, deceptive, misleading, unconscionable, or unfair conduct and […]

Despite Dismal Past Failures Congress Unleashes New Tax Debt Collection Policy

April, 2017 – according an article in the New York Times, Congress instructed the Internal Revenue Service is going to use private debt-collection companies to collect overdue payments from taxpayers, despite this idea being a complete failure in 1996 and again in 2006.  This new provision was buried in a $305 billion highway funding bill […]

What is a Judgment Debtor’s Examination?

The following applies to Arizona lawsuits and collection rights. When a creditor sues and obtains a judgment there are several options available in order to collect on the judgment.  The one that is the most scary for the consumer is the “judgment debtor’s examination”.

Experian Fined $3 Million for Deceiving Consumers

According to a report from the Consumer Financial Protection Bureau ‘CFBP’ Experian is fined $3 Million for Deceiving Consumers Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Experian and its subsidiaries for deceiving consumers about the use of credit scores it sold to consumers. Experian claimed the credit scores it […]

Subprime Vehicle Loans are Skyrocketing

Subprime vehicle loans – according to an article in Automotive News and Bloomberg “about a third of the risky car loans that are bundled into bonds are considered “deep subprime,” a level that has surged since 2010 and is translating to higher delinquencies on the loans, according to Morgan Stanley.” Automotive financing is following the […]