Daily Archives: February 27, 2014

Trott & Trott Michigan Foreclosure Letters

Trott and Trott is the law firm in Michigan that handles more foreclosure detroitVIEW

cases than anyone else.

I just set up a seminar by a consumer lawyer who has won the legal

argument that the standard letter sent by Trott and Trott warning of

foreclosure – violates the FDCPA.

What Is The FDCPA?

FDCPA stands for Fair Debt Collection Practices Act.

It is a federal law enacted to protect consumer from, unfair debt collection practices.

Courts have held that foreclosing on your home is an attempt to collect a debt.  The mortgage.  That seems like an easy call.

Lawfirms have also been found to be debt collectors, and thus, subject to the act.

If you are collecting a debt owed to you, you are not a debt collector.  So, if VISA calls about you paying VISA, the FDCPA does not apply.

If a collection agency, or law firm, contacts you on behalf of a creditor, they ARE covered by the FDCPA.

UNLESS – the creditor acquired the debt AFTER you were in default.  So, if some company buys a bad debt,

How Can The FDCPA Help Me? 

First, you get damages, money, if you can prove the FDCPA was violated, whether you have actual damages, like medical bills, or not.  This is called statutory damages.  If you prove the debt collector violated the law, you get $1,000.

Big deal, you say, where can I find a lawyer for that small of a case?

Well, the FDCPA is what we in the law biz call a fee shifting statute.  It shifts the responsibility for paying the plaintiff, the person bringing the suit, you, to the defendant, the bad guy, the debt collector, if you win.

So, I can take your case, if it is a good one, get money for you from them, and, get them to pay me.

What Does This Have To Do With Foreclosure Letters?

The FDCPA prohibits misleading information in debt collection communications, whether written letters or verbal phone calls.  It requires that the collector identify the creditor.

Most foreclosure form letters from law firms, who are debt collectors in this context, contain wording something like this:  “We are writing you on behalf of ____, which is either the mortgage holder or mortgage servicer for your mortgage.”

At least one court has held this is misleading.  Who is being represented?  The mortgage company?  Or the mortgage servicer?

This problem will NEVER get straightened out, because virtually all mortgages are held by Mortgage Backed Security Trusts, and it takes too much time and money to figure out which trust actually owns which mortgage.

So, if you get one of these letters, contact me.

There has been a court ruling that