Daily Archives: November 5, 2015

Debt Collector Harassment

I have been blogging about student loan servicer harassment on my creditor CALLS

other site, www.dischargestudentloan.com. But they are not the only

debt collectors busy harassing and misleading folks.

The Consumer Protection Finance Bureau  (CFPB) issues regular reports, and they have been busy whacking errant debt collectors:

Debt collectors used illegal tactics to contact consumers: Bureau examiners found at least one debt collector’s employees violated federal law by failing to identify that they were debt collectors during phone calls with consumers. Examiners also found instances where one or more debt collectors illegally continued to contact consumers on the phone at work after consumers verbally told them to stop.

Only one?

The deal is, they are hard to find.

All of the debt collectors I hear about lie about who they are.

They say they have a warrant to turn over to the district attorney, even though Michigan does not have those, we have county prosecutors.

I have recordings sent to me by clients of people giving names and saying they are attorneys.

When I check that state’s list of licensed attorneys, no one by that name in that location.

I hope the CFPB finds ALL of the lying debt collectors.

Mortgage servicers failed to automatically terminate mortgage insurance and reimburse consumers: Examiners found one or more mortgage servicers violated the Homeowners Protection Act by failing to automatically terminate private mortgage insurance for borrowers eligible for automatic termination. For borrowers who are current on their payments, the Act requires servicers to automatically terminate private mortgage insurance when the loan’s principal balance is first scheduled to reach 78 percent of the property’s original value.

Yes, the industry model, those wonderful mortgage servicers.  Still messing up.

PRA, Portfolio Recovery Services, one of the homes of debt collector harassment, is losing a BIG FDCPA lawsuit, that is still pending in federal court.

Specifically, Magee and Peterson allege that PRA sent letters demanding payment of time-barred debt without disclosing that the debt was time-barred, and threatened to credit report the debt after a time that the debt could no longer be reported.

Something else I see all the time.

They buy this zombie debt without any warranty that the debt is still owed, and harass and sue people without even enough information to determine if the debt is past the statute of limitations.

And the statute of limitations only starts to run AFTER the last payment.  So, don’t get tricked into sending a small payment on an old debt, or, a debt you do not even remember, just to stop debt collector harassment.

Tape any calls, do NOT give out any personal information, and check with me if you are a victim of any of these scams.

 

 

 

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