Zombie Debt Collectors don’t care.
About the law!
Any of the laws. Bankruptcy law, federal debt collection law, state consumer laws, you name it.
I keep blogging about zombie debt collectors, and, well, they keep providing new blogging material.
Up this week, a zombie debt collector that simply
MADE UP THAT IT WAS OWED THE DEBT.
Well, you could if you were a collection agency hired to collect on a debt owed to someone else.
But some folks in Illinois somehow acquired information on folks who obtained, or just applied for, payday loans. And (from FTC site linked to above):
called consumers and demanded immediate payment for supposedly delinquent loans, often armed with consumers’ sensitive personal and financial information. Defendants also allegedly threatened consumers with lawsuits or arrest, and falsely said they would be charged with “defrauding a financial institution” and “passing a bad check” – even though failing to pay a private debt is not a crime. In addition, the complaint claims that since 2015, the defendants have held themselves out as a law firm with authority to sue and obtain substantial judgments against delinquent consumers.
The defendants also allegedly harassed consumers with improper phone calls, disclosed debts to relatives, friends and co-workers, failed to notify consumers of their right to receive verification of the purported debts, and failed to register as a debt collector in Illinois, as required by state law.
I have heard from people about ALL of these types of threats, which are AGAINST THE LAW, and more, and from folks who say they either do not remember the loan, or that it was paid off.
Do Zombie Debt Collectors Care If You Filed Bankruptcy?
In fact, yesterday, Sunday, a Chapter 7 bankruptcy client called saying a check cashing place in Detroit would not return her check, which she came in simply to cash, because they said she still owed on a payday loan from 2011.
Which I highly doubt, as payday loan interest would have increased that debt to thousands of dollars by now.
At this point, I have written a letter demanding that my client’s check be returned, or I will file a contempt motion in bankruptcy court against him and his employer.
Under bankruptcy law, even though the debt was not listed, (remember, my client believes she had paid the loan) the bankruptcy automatic stay applies, as this case is still pending, and they now have actual notice of the bankruptcy case.
We shall see. Like I said, zombie debt collectors do not care about the law.