JAMES A FRANCIS Francis amp Mailman PC Land Title Building 19 th Floor 100 South Broad Street Philadelphia PA 19110 Phone 2157358600 Fax 2159408000 Email jfrancisconsumerlawfirmcom ID: 153100
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Debt Collection and Credit Reporting Issues Impacting Seniors
JAMES A. FRANCISFrancis & Mailman, PCLand Title Building, 19th Floor100 South Broad StreetPhiladelphia, PA 19110Phone: 215-735-8600Fax: 215-940-8000E-mail: jfrancis@consumerlawfirm.comwww.consumerlawfirm.com
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Why seniors may be subjected to unlawful debt collection and credit reporting practices
Rampant Abuse in Collection Industry FTC receives more complaints about debt collectors than any other industry, 140,036 in 2010Bad Debt Buying Industry has explodedSeniors perceived as vulnerable and having access to income, even though may be fixed;Often credit inactive
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Federal laws which prohibit unfairness, deception and harmful tactics by debt collectors and credit reporting industry
Mandatory attorney’s fees provide for free/no cost representation by private lawyers; Can recover $1000 statutory damages under FDCPA, plus any actual damages, FCRA actual damagesFDCPA “strict liability”statute/FCRA very specific as wellTwo Important Laws that Protect Seniors and Consumers Generally: Fair Debt Collection Practices Act and Fair Credit Reporting Act
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FTC and its website;
Consumer Financial Protection Bureau (CFPB)Senior Law CenterPrivate lawyers/consumer advocates who will usually work on a contingency;www.creditreportproblems.comResources Available To Seniors and Free Legal Help/Assistance
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Repeated, harassing and abusive phone calls;
Contacting family, neighbors and 3rd parties to embarrass consumer into paying debt;Lies/deceptions/misrepresentations—too many to listReporting debts on credit report that are prohibitedCommon Unlawful Collection Practices
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FDCPA prohibits harassing and abusive communications generally
No calls before 8AM or after 9PM Right to demand verification/validation of a debtRight to impose “cease and desist” on communicationsThe Telephone Consumer Protection Act, its applicability, cell phones and the Do Not Call List
STOPPING REPEATED AND HARASSING PHONE CALLS AND LETTERS
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Date
Your Name Your Address Your city, state, zip codeName of Collection AgencyAddressCity, state, zip codeDear Sir/Madam:
After being contacted on numerous occasions by employees of your agency, I am writing to demand that you cease and desist contacting myself or anyone else regarding this debt and in the future only contact me through US Mail. I also request that you send written verification that I owe this debt to your company.
Sincerely,
(sign here)
Your name
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SAMPLE CEASE AND DESIST LETTERSlide8
FDCPA prohibits debt collectors from speaking
with 3rd parties about a debt except for “location information”FDCPA prohibits calls to the workplace/employer if debt collector knows consumer cannot take calls there
Stopping Contact with 3rd
Parties
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Consumer
will be arrested or go to jailThreatening to sue or suing on old debtsSocial Security income is attachable“Sheriff is coming” to take house, cars or other propertySenior liable for debts of children/family membersClient
Seena Rosenberry case and the CBS
story
Children/family liable
for debts of
senior
Senior
liable for
medical billing/Medicare
submission
errors
Debt
will be reported on credit report even though
old
Common Lies and Misrepresentations
Punishable Under FDCPA
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Reporting false or otherwise prohibited information on consumer’s credit report
Both FDCPA and FCRA prohibit false credit reportingIncreasingly utilized tactic because of the “leverage” and pressure it creates and growing consumer awarenessMisreporting Debts/Account Information
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Reporting negative information after 7 years/Debt Reaging
Reporting account without noting that it has been disputed by the consumer Reporting prohibited information about medical bills/procedures (including reimbursement submissions)
Frequently Violated Credit Reporting Prohibitions
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Debt Collector buys delinquent or past due account that is older than 7 years
Age of debt relates to “date of first delinquency”Debt Collector assigns the date of collection as the date of first delinquency, reaging debt another 7 years;Debt Reaging
: A Common Practice With Collection Accounts
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FDCPA section 1692g
FDCPA section 1692e(8)FCRA section 1681i and 1681 s-2(b)Broad Dispute Rights Under FDCPA and FCRA 13Slide14
DC must advise consumer of right, and specifics of the debt (clearly outline the debt and creditor to whom owed)
Within 30 days of first communication from a debt collector, and within writing Gives consumer right to demand that debt collector provide verification or “proof” of the debtDebt Collector must cease collecting during verification periodFDCPA 1692g Dispute: Validation/Verification14Slide15
Prohibits debt collector from reporting the debt to anyone, including a credit reporting agency without noting its disputed statusDispute can be orally or in writing
Failing to note the disputed status an automatic violation;FDCPA Section 1692e(8)15Slide16
Apply to credit reporting agencies and creditors, not just debt collectors
Require both to conduct an investigation of the consumer’s dispute, and failing to do so allows consumer to sue for damagesDispute MUST be made to the CRAEven if the investigation results in verification of the debt/account, must still report disputed statusFCRA Sections 1681i/1681s-2(b)16Slide17
Date
Your nameYour addressYour city, state, zip codeName of CRA and/or furnisher [Equifax, Experian, Trans Union]AddressCity, state, zip codeDear Sir/Madam:After reviewing my credit report, I am writing to dispute the following inaccurate information. I am listing each item along with the way it should be corrected:
[Account name] [Account number] [How it should report/Why it’s inaccurate*]
Supporting documents have been enclosed. Pursuant to the FCRA, please forward them to the credit furnishers. If you are not going to forward them, please inform me so I may do so myself.
Sincerely,
(sign here)
Your name
Your Social Security Number
Your Date of Birth
Enclosures: (list what you are enclosing – examples: police report, fraud affidavit, proof of payment,
etc
)
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SAMPLE DISPUTE LETTERSlide18
Use of someone’s name and personal identifying information to buy goods, obtain money and use credit
Seniors sometimes targeted because often not credit activeThe Role of Identity Theft. What is it? 18Slide19
Secret Credit Card Swiping
ATM FraudMail left at old addressesThe Most Common Forms and Causes Today19Slide20
Order Credit Report Regularly
FACTA/FCRA now permits free report once a year from each of the CRASLook at credit history AND inquiries for creditors you don’t recognizeHow to Guard Against It20Slide21
Fraud Alerts
Invoking FDCPA right to demand verification/validationFair Credit Billing Act for ChargesRight to Disputes to Big 3 CRA’s and debt collectorsWhat to do if it Happens21