703-656-9974
VA, US
 | Alfalfa 2012-02-16 10:59:02 Unknown |
Watch what you're doing with time-barred debts
By Lesley Fair
January 30, 2012 - 10:56am
Of course, people are responsible for their debts. However, at a certain point, how much time has passed becomes an affirmative defense under state law and creditors can?t prevail in court. But what happens if a payment is made on a time-barred debt? A consumer can really get clocked ? because in many states the debt can be revived if a person makes a payment or says in writing that they intend to. The FTC has announced a $2.5 million settlement with Asset Acceptance, LLC, for allegedly breaking the law in how it tried to collect time-barred debts.
Michigan-based Asset Acceptance buys unpaid debts from credit card companies, health clubs, companies that provide telecom or utility service, and other debt buyers. Getting the debts for pennies on the dollar, the company targets accounts other collectors have pursued unsuccessfully and are more than a year past due. The problem, of course, is that if a debt collector tells somebody they owe money and demands payment, it may create the misleading impression that the company can collect in court. That?s not the case with time-barred debts.
A law enforcement action filed by the Department of Justice on the FTC?s behalf charges that Asset Acceptance pursued debts ? including time-barred debts ? in ways that violated the law. Among other things, the complaint alleges that the company:
?claimed that consumers owed money when Asset Acceptance didn?t have proof to back it up;
?failed to disclose that debts were too old to be legally enforceable or that a partial payment would restart the clock;
?failed to give consumers verification of a debt when they asked for it;
?provided information to credit reporting agencies it knew ? or had reasonable cause to know ? was inaccurate;
?didn?t notify consumers in writing that it passed negative information on to credit reporting agencies;
?didn?t conduct reasonable investigations when it got a notice of dispute from a credit reporting agency;
?illegally told third parties about people?s debts; and
?used illegal debt collection practices.
In addition to the $2.5 million civil penalty, the settlement puts provisions in place to protect consumers going forward. For example, when dealing with debt it knows or should know is time-barred, Asset Acceptance must disclose to the consumer that it won?t sue on the debt and ? assuming it?s the case ? it has to tell people that it may report nonpayment to the credit bureaus. Once it has made that disclosure, Asset Acceptance can?t sue, even if the consumer makes a partial payment that otherwise would restart the limitations clock.
The order also prohibits Asset Acceptance from making material misrepresentations about debts; from ?parking? debt on a consumer?s credit report when it has failed to notify them in writing; and from violating the FTC Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act in the ways alleged in the complaint.
http://business.ftc.gov/blog/2012/01/watch-what-youre-doing-time-barred-debts
By Lesley Fair
January 30, 2012 - 10:56am
Of course, people are responsible for their debts. However, at a certain point, how much time has passed becomes an affirmative defense under state law and creditors can?t prevail in court. But what happens if a payment is made on a time-barred debt? A consumer can really get clocked ? because in many states the debt can be revived if a person makes a payment or says in writing that they intend to. The FTC has announced a $2.5 million settlement with Asset Acceptance, LLC, for allegedly breaking the law in how it tried to collect time-barred debts.
Michigan-based Asset Acceptance buys unpaid debts from credit card companies, health clubs, companies that provide telecom or utility service, and other debt buyers. Getting the debts for pennies on the dollar, the company targets accounts other collectors have pursued unsuccessfully and are more than a year past due. The problem, of course, is that if a debt collector tells somebody they owe money and demands payment, it may create the misleading impression that the company can collect in court. That?s not the case with time-barred debts.
A law enforcement action filed by the Department of Justice on the FTC?s behalf charges that Asset Acceptance pursued debts ? including time-barred debts ? in ways that violated the law. Among other things, the complaint alleges that the company:
?claimed that consumers owed money when Asset Acceptance didn?t have proof to back it up;
?failed to disclose that debts were too old to be legally enforceable or that a partial payment would restart the clock;
?failed to give consumers verification of a debt when they asked for it;
?provided information to credit reporting agencies it knew ? or had reasonable cause to know ? was inaccurate;
?didn?t notify consumers in writing that it passed negative information on to credit reporting agencies;
?didn?t conduct reasonable investigations when it got a notice of dispute from a credit reporting agency;
?illegally told third parties about people?s debts; and
?used illegal debt collection practices.
In addition to the $2.5 million civil penalty, the settlement puts provisions in place to protect consumers going forward. For example, when dealing with debt it knows or should know is time-barred, Asset Acceptance must disclose to the consumer that it won?t sue on the debt and ? assuming it?s the case ? it has to tell people that it may report nonpayment to the credit bureaus. Once it has made that disclosure, Asset Acceptance can?t sue, even if the consumer makes a partial payment that otherwise would restart the limitations clock.
The order also prohibits Asset Acceptance from making material misrepresentations about debts; from ?parking? debt on a consumer?s credit report when it has failed to notify them in writing; and from violating the FTC Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act in the ways alleged in the complaint.
http://business.ftc.gov/blog/2012/01/watch-what-youre-doing-time-barred-debts
| Hillari OBrien 2012-02-16 08:55:32 Debt Collector |
Asset Acceptance has tapped into my phone lines and is calling my number right after I hang up the phone. They are leaving messages for bogus names on my answering machine, calling under false caller id names and numbers, extending the dates on my credit reports, doubling and sometimes tripling the same company debt on my credit report and now sending letters for bogus debts.
| rainwoman 2011-06-06 20:54:55 Unknown |
I didn't answer. Wondering who this is.
| Arabella 2009-08-05 11:43:51 Debt Collector |
Lamet, the information you provided was very helpful. I don't owe anyone anything, and there is no reason why a debt collector would be calling me or making false claims on my credit reports. I will be filing a complaint with the FTC for investigation.
| lamet 2009-07-29 20:01:49 Unknown |
ASSET ACCEPTANCE - JUNK DEBT BUYER MAJOR FDCPA VIOLATOR
Asset Acceptance Corp.
28405 Van Dyke Avenue
Warren, Michigan 48092
Phone: (586) 446-7818
Fax: 586-446-7837
Web Address: www.assetacceptance.com
2840 S. Falkenburg Road, Riverview, FL 33569
(Physical Office in Brandon, FL)
Other Offices/Numbers:
10500 Highway 281 N. Ste 150
San Antonio, Texas 78216
Phone: (210) 979-3600
Fax: (210) 979-3659
410 846-2502
248-220-8709
9940 Franklin Square Dr.
Nottingham, MD 21236
(410) 933-0960 (410) 931-3044
600 West Resource Drive, Independence, OH 44131
(216) 661-6152, (216) 485-8400 and (216) 661-0165.
--------------------------------------------------------------------------------
Bud Says Consumer Comments Below
Asset Acceptance Corp. (AAC) is a publicly traded company. (Nasdaq: AACC) They purchase old portfolios of mostly worthless charged-off accounts for pennies on the dollar. Once owned, they appear to inflate the value of the portfolio, send out dunning notices and try to collect at a ridiculous profit.
Don't be surprised if you notice the date of last activity on your credit report, as stated by AAC is WRONG! Deliberately changing the date of last activity is a way to scam consumers into thinking they are entitled to money they would not legally be allowed to collect.
This is standard procedure for them -- from "re-aging" the debt on the credit history, to suing on what is probably a statute of limitations claim, to reneging on a written promise.
Watch out for the mystery $50-$75 payment you didn't' make that magically revives the account. When pressed, they claim to do an investigation and "discover" that they made a "clerical error" and mistakenly posted someone else's payment to your account.
NOTHING this 'House of Cons' does should be believed or taken at face value. They have proven over and over they are liars and thieves!
Under federal law, the Fair Credit Reporting Act (FCRA) an account may ONLY stay on a credit report for seven years. One of the cons being used by Asset Acceptance is to claim you made a $50 payment, which would have re-started that clock. Unfortunately this is a 'bogus-claim' by AAC, is illegal and violates your rights.
Asset Acceptance Corp has earned the distinction of one of "AMERICA'S WORST COLLECTION AGENCIES". They lie, steal, cheat, misrepresent, file bogus claims, create phony documents and commit perjury in the court system JUST to increase their bottom line.
CAUTION: I recommend you NEVER disclose your bank account or credit card information to a debt collector, as you risk them emptying your account, or maxing out your credit card. If you feel they are reporting on your credit bureau files in error or need assistance in dealing with them, email the details w/your location. Assistance and referral to a consumer legal specialist may be available.
COLLECTION AGENCIES DO NOT WANT YOU TO KNOW THIS INFORMATION!
FROM www.budhibbs.com A CONSUMER ADVOCATE WEBSITE that specializes in Debt Collections and offers assistance to consumers. THEY ALSO EXPOSE THE WORST FDCPA VIOLATOR IN THE COUNTRY
Dealing with debt collectors
http://www.budhibbs.com/start.html
Statute of limitations by state ? always double check directly with your own State Government Website
http://www.budhibbs.com/statute_of_limitations.htm
Recording calls from debt collectors ? always double check with your own State Government website
http://www.budhibbs.com/record.htm
From FEDERAL TRADE COMMISSION WEBSITE
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Debt Collection FAQs: A Guide for Consumers
If you?re behind in paying your bills, or a creditor?s records mistakenly make it appear that you are, a debt collector may be contacting you.
The Federal Trade Commission (FTC), the nation?s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.
Here are some questions and answers about your rights under the Act.
What types of debts are covered?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn?t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they?re told (orally or in writing) that you?re not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter ? even if you don?t think you owe the debt, can?t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don?t want the collector to contact you again, tell the collector ? in writing ? to stop contacting you. Here?s how to do that:
Make a copy of your letter. Send the original by certified mail, and pay for a ?return receipt? so you?ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don?t have an attorney, a collector may contact other people ? but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written ?validation notice? telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don?t think you owe the money.
Can a debt collector keep contacting me if I don?t think I owe any money?
If you send the debt collector a letter stating that you don?t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren?t; or
indicate that papers they send to you aren?t legal forms if they are.
Debt collectors also are prohibited from saying that:
you will be arrested if you don?t pay your debt;
they?ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don?t intend to take the action.
Debt collectors may not:
give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn?t; or
use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt ? or your state law ? allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don?t think you owe.
Can a debt collector garnish my bank account or my wages?
If you don?t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.
Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don?t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Can federal benefits be garnished?
Many federal benefits are exempt from garnishment, including:
Social Security Benefits
Supplemental Security Income (SSI) Benefits
Veterans? Benefits
Civil Service and Federal Retirement and Disability Benefits
Service Members? Pay
Military Annuities and Survivors? Benefits
Student Assistance
Railroad Retirement Benefits
Merchant Seamen Wages
Longshoremen?s and Harbor Workers? Death and Disability Benefits
Foreign Service Retirement and Disability Benefits
Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
Federal Emergency Management Agency Federal Disaster Assistance
But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can?t prove that you suffered actual damages. You also can be reimbursed for your attorney?s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector?s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?
If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.
Where do I report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General?s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General?s office can help you determine your rights under your state?s law.
For More Information
To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government?s portal to financial education.
Asset Acceptance Corp.
28405 Van Dyke Avenue
Warren, Michigan 48092
Phone: (586) 446-7818
Fax: 586-446-7837
Web Address: www.assetacceptance.com
2840 S. Falkenburg Road, Riverview, FL 33569
(Physical Office in Brandon, FL)
Other Offices/Numbers:
10500 Highway 281 N. Ste 150
San Antonio, Texas 78216
Phone: (210) 979-3600
Fax: (210) 979-3659
410 846-2502
248-220-8709
9940 Franklin Square Dr.
Nottingham, MD 21236
(410) 933-0960 (410) 931-3044
600 West Resource Drive, Independence, OH 44131
(216) 661-6152, (216) 485-8400 and (216) 661-0165.
--------------------------------------------------------------------------------
Bud Says Consumer Comments Below
Asset Acceptance Corp. (AAC) is a publicly traded company. (Nasdaq: AACC) They purchase old portfolios of mostly worthless charged-off accounts for pennies on the dollar. Once owned, they appear to inflate the value of the portfolio, send out dunning notices and try to collect at a ridiculous profit.
Don't be surprised if you notice the date of last activity on your credit report, as stated by AAC is WRONG! Deliberately changing the date of last activity is a way to scam consumers into thinking they are entitled to money they would not legally be allowed to collect.
This is standard procedure for them -- from "re-aging" the debt on the credit history, to suing on what is probably a statute of limitations claim, to reneging on a written promise.
Watch out for the mystery $50-$75 payment you didn't' make that magically revives the account. When pressed, they claim to do an investigation and "discover" that they made a "clerical error" and mistakenly posted someone else's payment to your account.
NOTHING this 'House of Cons' does should be believed or taken at face value. They have proven over and over they are liars and thieves!
Under federal law, the Fair Credit Reporting Act (FCRA) an account may ONLY stay on a credit report for seven years. One of the cons being used by Asset Acceptance is to claim you made a $50 payment, which would have re-started that clock. Unfortunately this is a 'bogus-claim' by AAC, is illegal and violates your rights.
Asset Acceptance Corp has earned the distinction of one of "AMERICA'S WORST COLLECTION AGENCIES". They lie, steal, cheat, misrepresent, file bogus claims, create phony documents and commit perjury in the court system JUST to increase their bottom line.
CAUTION: I recommend you NEVER disclose your bank account or credit card information to a debt collector, as you risk them emptying your account, or maxing out your credit card. If you feel they are reporting on your credit bureau files in error or need assistance in dealing with them, email the details w/your location. Assistance and referral to a consumer legal specialist may be available.
COLLECTION AGENCIES DO NOT WANT YOU TO KNOW THIS INFORMATION!
FROM www.budhibbs.com A CONSUMER ADVOCATE WEBSITE that specializes in Debt Collections and offers assistance to consumers. THEY ALSO EXPOSE THE WORST FDCPA VIOLATOR IN THE COUNTRY
Dealing with debt collectors
http://www.budhibbs.com/start.html
Statute of limitations by state ? always double check directly with your own State Government Website
http://www.budhibbs.com/statute_of_limitations.htm
Recording calls from debt collectors ? always double check with your own State Government website
http://www.budhibbs.com/record.htm
From FEDERAL TRADE COMMISSION WEBSITE
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Debt Collection FAQs: A Guide for Consumers
If you?re behind in paying your bills, or a creditor?s records mistakenly make it appear that you are, a debt collector may be contacting you.
The Federal Trade Commission (FTC), the nation?s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.
Here are some questions and answers about your rights under the Act.
What types of debts are covered?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn?t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they?re told (orally or in writing) that you?re not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter ? even if you don?t think you owe the debt, can?t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don?t want the collector to contact you again, tell the collector ? in writing ? to stop contacting you. Here?s how to do that:
Make a copy of your letter. Send the original by certified mail, and pay for a ?return receipt? so you?ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don?t have an attorney, a collector may contact other people ? but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written ?validation notice? telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don?t think you owe the money.
Can a debt collector keep contacting me if I don?t think I owe any money?
If you send the debt collector a letter stating that you don?t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren?t; or
indicate that papers they send to you aren?t legal forms if they are.
Debt collectors also are prohibited from saying that:
you will be arrested if you don?t pay your debt;
they?ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don?t intend to take the action.
Debt collectors may not:
give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn?t; or
use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt ? or your state law ? allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don?t think you owe.
Can a debt collector garnish my bank account or my wages?
If you don?t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.
Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don?t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Can federal benefits be garnished?
Many federal benefits are exempt from garnishment, including:
Social Security Benefits
Supplemental Security Income (SSI) Benefits
Veterans? Benefits
Civil Service and Federal Retirement and Disability Benefits
Service Members? Pay
Military Annuities and Survivors? Benefits
Student Assistance
Railroad Retirement Benefits
Merchant Seamen Wages
Longshoremen?s and Harbor Workers? Death and Disability Benefits
Foreign Service Retirement and Disability Benefits
Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
Federal Emergency Management Agency Federal Disaster Assistance
But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can?t prove that you suffered actual damages. You also can be reimbursed for your attorney?s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector?s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?
If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.
Where do I report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General?s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General?s office can help you determine your rights under your state?s law.
For More Information
To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government?s portal to financial education.
| RatherNot 2009-07-29 19:59:48 Debt Collector |
.
| Zoro 2009-07-22 20:39:38 Debt Collector |
It's Asset Acceptance, you can read all about them, just look them up on the internet.
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