Student loan debt collection has been making headlines recently.  If you go onto just about any online publication, you will see a new report on student loan debt. 

http://www.washingtonpost.com/national/at-unc-chapel-hill-obama-tells-new-crop-of-students-about-debt-weve-been-in-your-shoes/2012/04/24/gIQABDyifT_story.html

Watch the link here.

http://abcnews.go.com/WNT/video/credit-card-skimming-places-15932278

The problem with many of these lawsuits is that the debt collector cannot prove that the debt they are seeking to recover is actually owed or that the amount they are trying to recover is correct. Actually, in some cases these debt collectors filed suit against the wrong person. They file suit against someone who never had an account with that company at all.

Additionally, there are times when these debt collectors file suit on a debt that is past the limitations period for filing a suit. This time period is called the Statute of Limitations. The Statute of Limitations limits the time period for when a suit must be filed.

In Florida, you only have 20 days from the date that you are served with a complaint to file a response. If you sit by and do not do anything, you will have a default judgment entered against you. You may have defenses to such suits, as many times there are mistakes or deficiencies with the complaint for which a defense can be provided.

Remember, you have rights. If you or someone you know is experiencing this problem, contact an attorney today for a consultation. You may have viable defenses to the suit that was just filed against you.

Credit card “skimming” — the use of electronic gadgets to steal credit and debit card information — is not new in South Florida, but it’s on the rise, especially around the holidays, said U.S. Secret Service agent James Porter in Miami.  Porter specializes in electronic crimes.  Read the full article at http://www.sun-sentinel.com/business/fl-skimming-credit-card-threat-20111218,0,4121985.story

More than 3 million people have been victims of skimming at ATMs, losing an average of $1,000 per person, according to the ADT Security Services website. The company manufactures anti-skimming devices.

“South Florida is one of the top areas for this kind of fraud, for obvious reasons,” Porter said. “We’re a tourism hot spot. Where there’s a lot of economic activity, there’s fraudulent activity.”

Electronic devices that take, or “skim,” card numbers can be placed inside automated teller machines, gas station pumps, at check-out stations in stores or carried by hand to swipe cards.

If you have suffered the effects of identity theft, remember you’re not alone. Of the 1.3 million consumer complaints received by the Federal Trade Commission in 2009, identity theft was the most reported offense with more than twice the complaints of the next highest category: third party and creditor debt collection. Consumers lost over 1.7 billion dollars in 2009 due to identity theft.¹

¹from the 2009 Consumer Sentinel Network online database storing complaints received by the FTC

Having an identity theft attorney working for you can be a huge help. You don’t have to fight this alone.

According to the Federal Reserve Bank of New York, Americans owe more on student loans than on outstanding credit card debt, which currently exceeds $1 trillion this year.  The President is slated to announce the student loan measure today. 

With this move, it is estimated that the loan changes could cut monthly payments for 1.6 million graduates.   According to the article posted in the Sun Sentinel today, student debt may also be forgiven after 20 years, as compared to 25 years under the current law.  As of now, over 36 millions Americans have federal student loan debt, but only 450,000 have so far taken advantage of the existing income-based repayment plan (IBR) program.

Remember, you are not alone.  If you are currently in default of your student loans; dealing with a collection company; need help in determing the best course of action with getting out of default, contact an attorney today.  We are here to help with any questions you may have.  There are several options one may have when it comes to repayment of your loans. 

To read more, see:  http://www.sun-sentinel.com/news/nationworld/sns-rt-us-obama-studentstre79o7hz-20111025,0,1626867.story

Debt Collector Contacts

A debt collector may contact you over the telephone, by mail, in person, or by fax. The debt collector cannot call you at unreasonable times or places. Typically, this means that they should not call you before 8:00 a.m. in the morning or after 9:00 p.m. at night unless you agree to let them call you at those hours. A debt collector may call you at work unless you let them know that their employer disapproves of this. If you do get contacted at work, immediately notify the debt collector if your employer prohibits this.

Stopping contacts from debt collectors

You can request that the collector stop contacting you.  It is recommended that you do this by writing a letter to the debt collection agency in addition to telling them over the telephone. Make sure you keep a copy of this letter for your own records. When the debt collection agency receives the letter, they should not contact you again except to tell you if they are going to take specific action concerning the debt.  If they contact you other than to tell you they are going to take specific action, it is recommended that you contact an attorney immediately.

Debt Collector Contacts With Other People

The debt collector may contact other people such as friends, relatives, or neighbors only to find out information about where you live and work. Normally they can only contact these people once. In most cases, they are not allowed to tell these people about your debt, but only obtain information about your address and work.

If an attorney represents you on this debt, notify the debt collector of your attorney’s name, address and phone number. The debt collector should then contact only the attorney. 

What must the debt collector tell you?

A debt collector may contact you initially by telephone. If they do, they are required to send you a written notice within five days telling you the amount of the debt you owe, the name of the creditor that you owe the money to, and what action you should take if you do not owe the money.

Prohibited Harassment

Debt collectors can call you and request that you pay the debt. However, they cannot harass you or abuse you. Here are some examples of what debt collectors cannot do:

• Use obscene or profane language.
• Make repeated frequent calls to annoy you.
• Telephone you without identifying themselves.
• Use threats of violence or harm against you.
• Threaten to arrest you if you do not pay the debt.
• Threaten to take action such as lawsuits, garnishments, or taking your property unless the collector intends to do so and it is legal.
•  Debt collectors cannot make false statements about themselves or the debts.

 What should I do if I believe that I am a victim of Debt Collection Harassment?

The Fair Debt Collection Practices Act gives you a right to sue in state or federal court within one year from the violation. If you win, you can recover damages for your loss, court costs, and attorney’s fees. Remember that the one-year period runs from the date the debt collector violated the law. You should act promptly to contact an attorney if you believe a debt collector has violated the law. If you fail to file your suit within one year of the violation, you lose your right to do so.  You can also notify the Federal Trade Commission (FTC) of violations. They cannot file lawsuits on your behalf, but they can investigate your complaints. Their address is: Consumer Response Center, Federal Trade Commission, Washington, D.C. 20580. You can also file a complaint through the Internet.

Proving Your Claim:

Make sure to keep any and all copies of everything that the debt collection agency sends you.  It is recommended to use a file folder and keep all of your letters together. Additionally, make sure to keep copies of everything that you send to them as well.

When, and if, they call you, be sure to write down notes of the exact words they used while talking to you on the telephone. Right after you hang up, write a summary of everything they told you, and what you told them. Note the date and time they called you. Be sure to write down the persons name, telephone numbers used and the exact name of the company that they are with.

Remember, YOU HAVE RIGHTS!!!!If you believe you have been harassed by any debt collector, you should contact an attorney for specific legal advice on your problem.

According to the complaint, thousands of consumer complaints have been filed against West Asset Management Inc., which employs 1,500 debt collectors in 13 states and one offshore location. The complaint alleged that West Asset Management debt collectors violated the Fair Debt Collection Practices Act by calling consumers multiple times each day, often regarding accounts that did not belong to them, and sometimes using rude and abusive language. The FTC further charged that West Asset Management also illegally disclosed the existence of consumers’ debts to third parties and ignored consumers’ written demands that West Asset Management stop calling them.

The company also allegedly withdrew funds from consumers’ bank accounts or charged their credit cards without consent and falsely claimed that consumers would be sued, arrested, or have their property seized for nonpayment of their debt. In addition, the FTC alleged that West Asset Management falsely claimed that partial payments would be accepted as full settlement on accounts and that negative information would stay on consumers’ credit reports until debts were paid. According to the complaint, West Asset Management has collected on more than 24 million accounts on behalf of clients in the healthcare, telecommunications, consumer credit, and government service industries.

The settlement imposes a $2.8 million civil penalty, which is the largest civil penalty obtained by the FTC in a debt collection case. The settlement order permanently prohibits West Asset from using false, deceptive or unfair debt collection tactics, including:

• 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

To read more go to:  http://ftc.gov/opa/2011/03/wam.shtm.

This is one of the many reasons Congress enacted the Fair Debt Collection Practice Act (FDCPA), to prevent abusive collection agency practices such as this.  Florida expanded the FDCPA by introducing the Florida Consumer Collections Practices Act (FCCPA) that requires all debt collectors to register with the State of Florida.  Given the state of our economy more people are likely to fall victim to predators such as these.  It is important to know your rights when contacted by a debt collector.  These scammers got away with over $50,000 paid by people who did not owe these debts.  If you have questions about the debt collection practices of someone contacting you, you should contact a local attorney to find out your rights. 

Information taken from:  http://www.news-journalonline.com/news/local/west-volusia/2011/07/23/3-from-orange-city-firm-charged-in-illegal-debt-collections.html

Colleges have been accused of providing inflated numbers to prospective students for quite some time.  These numbers include inflating the income level of graduates, the percentage of graduates who are employed after graduation and a failing to disclose the total cost of education. 

The American Bar Association (ABA) is urging Congress to act by providing competitive and flexible terms for federal student loans.  Specifically, Resolution 111-A is calling for loan forgiveness programs for students who go into work for the private sector, and raising the federal income tax deduction for qualifying student loans.  At the same time, Resolution 111-B is asking law schools to revise their standards by, “requiring law schools to provide on their websites, and in other reasonable methods of communication, more data on employment and placement of graduates.”

Such action is critical; however, the action should come directly from state bar associations who are responsible for regulating the industry.  The decision to attend law school is a difficult one with a lot of pros and cons to weigh.  Action needs to be taken so that those who wish to make such a decision are armed with the correct information to base their decisions.

Information gathered from:  http://www.abajournal.com/news/article/aba_asks_u.s._govt_to_address_heavy_student_loan_debts/

Many graduates are realizing their career choice is either not a reality or their pay is substantially lower than they expected. Additionally, a borrower has between 270 – 360 days after graduation to contact their lender. The lender will reply that they have several options: begin making monthly payments, work out a payment plan, apply for a deferment or apply for forbearance of the loan. If these steps are not taken, the college graduate will find her loan entering into default.

When your loan enters default, your loan may be turned over to a collection agency. This will result in additional costs and penalties added to the amount of your loan. If the collection agency is unsuccessful, you may be sued for the amount owing. At this point, additional charges including attorney fees and court costs may be added to the loan amount. If unsuccessful in recovering the amount owed or establishing a repayment plan, the next step taken may be for the collection agency to garnish your wages. The debt collector is entitled in certain circumstances to garnish up to 15% of your paycheck to be paid directly to the debt collector. Additionally, your federal and state income tax refunds may be intercepted and applied to your loan balance and interest owing.

Upon default, the borrower’s credit score will be adversely affected. The credit rating of all three credit reporting agencies (Experian, Trans Union and Equifax) will report the default loan for up to seven years after the default claim is paid. With this default being reported, it will be more difficult to obtain an auto loan, mortgage or even a credit card, and will make the price of those loans more expensive.

There are ways to prevent default from occurring, with the most important step being constant communication with your lender. Now, if a debt collector has unlawfully garnished your wages or file a lawsuit against you containing wrong information, you may seek protective action. You should contact a student loan defense attorney to figure out your rights.

Information gathered from: http://www.finaid.org/loans/default.phtml
http://www.usafunds.org/borrowers/Pages/SuccessfulRepay.aspx