Debt Collection

Consumer debt is money owed for personal, family and household obligations. Consumers that have fallen behind on repaying credit cards, personal loans, medical or utility debts, or mortgages may be contacted by a debt collector for payment. Sometimes, consumers are contacted by debt collectors because an error was made on their account. Whether a debt is owed or not, consumers have the right to be free from deceptive, unfair and abusive debt collection tactics on the part of debt collectors, collection agencies, or law firms acting as debt collectors.

Federal law, The Fair Debt Collection Practices Act (“FDCPA”), provides consumers with several protections and allows a consumer to sue a debt collector for violating the law. Consumers can sue the collector for actual and punitive damages who violate the Fair Debt Collection Practices Act. Additionally, the law provides that the consumer’s attorney’s fees will be paid by the debt collector. Under the FDCPA, debt collectors may not – either over the phone or through the mail:

• harass, oppress, or abuse you or any third parties they contact
• continue collection efforts after you write them to stop
• continue collecting after you write to tell them you’re represented by an attorney
• use any false or misleading statements when collecting a debt.
• represent that they operate or work for a credit bureau
• misrepresent or inflate the amount of your debt
• indicate that papers being sent to you are legal forms when they are not
• threaten to garnish your wages (in Pennsylvania, Texas or Florida)
• threaten to take an action they can’t take legally or don’t intend to take
• fail to disclose that they’re a debt collector
• give false credit information about you to anyone, including a credit bureau
• collect any amount greater than your debt, unless permitted by law
• call you after 9:00 p.m. or before 8:00 a.m., without your consent
• engage in any other false, deceptive or abusive conduct
• miscalculate interest, penalties or other charges

If you believe your rights have been violated by a debt collector, send us your debt collection letters and documentation of the debt collector’s phone contact with you. CONTACT US.

Car Repossession

Your debts can be unsecured or secured.  Secured debts usually are tied to an asset, like your car for an auto loan, or your house for a mortgage.  If you stop making these payments, lenders can repossess your car or file foreclosure proceedings  on your house.  Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans and debts for other types of services.

Most automobile financing agreements allow a creditor to repossess your car any time you’re in default.  Usually, no notice is required.  If your car is repossessed, you may have to pay either all past-due payments, or the full balance due on the loan, as well as towing and storage costs, to get it back.  You are entitled to a detailed letter stating the amount due and location of your vehicle. If you can’t pay all that is due, the creditor may sell the vehicle at auction.  If you see repossession approaching, you may choose to sell the car yourself and pay off the debt.  You’ll avoid the added costs of repossession and a negative entry on your credit report.

Most lenders are willing to work with you if they believe you’re acting in good faith and the situation is temporary.  Some lenders may reduce or suspend your payments for a short time.  When you resume regular payments, though, you may have to pay an additional amount toward the past due total.   Other lenders may agree to change the terms of the loan by extending the repayment period to reduce the monthly debt.  Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.  Whatever agreement you make with your lender, be sure to get all the terms IN WRITING.

Consumers – whether they are behind in a vehicle payment or not – are entitled to be free from unwarranted or unreasonable repossession tactics by banks, other auto finance companies and repossessors.  State laws provide detailed rules for lenders who wish to repossess a vehicle – rules relating to who can repossess and when, the timing and content of the notice of repossession, the commercial reasonability of a post-repossession sale, and the calculation of any delinquency.  Often, these rules are overlooked.  Further, an improper repossession can be the basis of a lawsuit under state and federal credit reporting, debt collection, or unfair trade practice laws, yielding significant recovery.

If you or a friend has a car that has been repossessed, CONTACT US. We will evaluate the details of your repossession and determine whether your rights have been violated or not.

Credit Reporting

You have the right to have your credit report completely and accurately reflect your credit history.  Negative information on your credit report can severely damage your credit score and your ability to obtain credit to buy things like a home or car, or be approved for a loan – it’s vitally important that your credit report be accurate.  The Fair Credit Reporting Act ("FCRA") provides a civil remedy for consumers who have been harmed by the failure to remove reported incorrect information placed on their credit reports by the credit bureaus or those who report credit information to the credit bureaus, called "furnishers."

The FCRA may provide a remedy for you if you notice: 

• someone viewed your credit report without your permission
• inaccurate information on your credit report 
• unfamiliar accounts
• other indicators of identity theft
• someone else’s credit data on your report
• inaccurate or obsolete criminal history in employment reports
• incorrect entries by creditors / credit furnishers
• obsolete information, old addresses, etc.
• inaccurate/ incorrect entries on your credit file

STEPS TO TAKE

1. Request a Current Copy of Your Credit Report

To request a copy of your credit report, you will need to provide a letter with your personal information, such as your Social Security Number, date of birth, your full name, current and former addresses, a current phone number and current and former employers.  To confirm your identity, it is helpful to include a copy of your driver’s license, a recent utility bill or a current paystub, with your request.  You can submit requests for your credit report online or you may write for your report.

Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
http://www.equifax.com

Experian
National Consumer Assistance Center
P.O. Box 949
Allen, TX 75013-0949
1-800-682-7654
http://www.experian.com

TransUnion
Consumer Disclosure Center
P.O. Box 390
Chester, PA 19064-0390
1-800-888-4213
http://www.transunion.com

2. Get a FREE Credit Report

Under the FCRA you have the right to receive one free credit report a year, every 12 months, from each of the three major credit bureaus: Equifax, Experian and Trans Union. The official website for requesting a credit report is: www.AnnualCreditReport.com.  Reports may be requested online, or by phone: 1-877-322-8228.  If you call, you will need to go through a verification process.  Your reports will be mailed to you within 10 – 15 days (allow 2 – 3 weeks for delivery).  Frequently a credit reporting agency may contact a consumer requesting proof of identity, such as a driver’s license, recent utility bill or a current pay stub, for security purposes.

If you have been denied credit within the past 60 days, or you are a victim of identity theft, you may receive a FREE copy of your credit report from the credit reporting agencies.  When you request your report, you will need to supply a copy of the credit denial letter, or in the case of identity theft, a copy of the police report.  We recommend that you do not request or dispute a credit report online.  The credit bureaus sometime bury a legal waiver in the "click" agreement!  Send a written request for credit reports, or disputes, via US mail.  Keep a copy of your correspondence for your files!

3. DISPUTE:  Send a Request to Reinvestigate Letter

• You have the right to dispute inaccurate or erroneous information with the three major credit bureaus, Equifax, Experian and Trans Union.  Be sure to send your disputes in writing and send by Certified Mail, Return Receipt Requested. 
  • Write dispute letters, referred to as a "Request to Reinvestigate" letter, to all three credit bureaus and the credit furnisher (the company whose entry you’re disputing). Provide a concise explanation why the information is inaccurate and needs to be corrected.  Also, supply supporting documentation illustrating the error.
  • Send your dispute letters via Certified Mail, return receipt requested.  Mark your calendar 30 days from the date your request was received by the credit bureau.  The credit bureaus must respond to your request within 30 days of that date.
  • Keep copies of all letters you send and receive.
    If the negative entry is not removed, repeat the dispute process.  Note in your dispute that this is your second, or perhaps third, request to have information corrected.  If your dispute letters do not correct the error, contact us – you may have a lawsuit. 
  • Again, dispute by mail, not online!  You can fully explain while preserving your rights.

FREQUENTLY ASKED QUESTIONS

Identity Theft

You have the right to be free from identity theft and other invasions of your credit privacy. It's more important than ever that your personal data -- especially your Social Security number, your bank account or credit card numbers, your address and telephone numbers, and other valuable identifying data – stay out of the hands of crooks looking to run up bills on your good name.

Symptoms of an Identity Theft Victim: 

• unauthorized charges on your credit card or bank accounts
• a collection agency contacts you regarding a debt you did not incur
• receiving bills from a credit account you did not open
• being turned down for a job because of credit information
• billing statements don't arrive on time
• being turned down for a auto/student loan, mortgage, credit card, or other form of credit due to unauthorized debts on your credit report
• accounts you did not authorize appear on your credit report

Identity Theft Victims:  Steps to Take

(1)    File a police report . This report helps document the crime.  If your local police are reluctant to take your report, ask to file a “Miscellaneous Incidents” report, or try another jurisdiction, such as your state police, or the township where the identity theft – or attempt – occurred.   Also, you can check with your state Attorney General’s office. Contact the national attorneys general office to locate the attorney general offices in your state: www.naag.org

(2)    Contact the three major credit bureaus (Experian, Equifax, and Trans Union) and request that a "fraud alert" be placed on your account and that creditors get permission from you before opening any new accounts. Request the credit reporting agency provide a complete, current copy of your report.  We recommend that the report be requested in writing, by mail, not online. The credit bureaus often bury legal waiver clauses in their standard “click” agreement.  You should not have to give up legal rights just because you are a crime victim and need a credit report. Communicate with the credit bureaus by mail, not online, where possible.

(3)    Contact all of your creditors.  Inform them that you have become victim to Identity Theft. Request a review of all new charges on your account.  Dispute the charges that you do not recognize. 

Once you receive your next statement(s), review them carefully for charges that do not belong to you.  WRITE to your creditor and dispute the charges. 

(4)    Report the ID theft to the Federal Trade Commission. Submit an ID Theft Affidavit and Fraudulent Account Statement. www.consumer.gov/idtheft.

(5)    Once you have received a current copy of your credit report, send a BLOCKING LETTER to the credit reporting agency.  This letter will inform the credit reporting agency of specific items which are not yours.  By sending this letter you are telling the credit reporting agency to block any new charges that come to that account. 

(6)    Document all calls you make with date, time of day, name of person/agency and details of your conversations.  Make copies for your files of all correspondence you send.  Keep all correspondence you receive, including statements, agreements and receipts.    

Maintain an "Identity Theft: Phone/Dispute/Correspondence Log." You can download a sample log document here.

(7)    Keep Copies of all correspondence  you send to a police department, credit bureau(s), creditor, debt collector or any agency regarding your Identity Theft.   Send your correspondence by Certified Mail, return receipt requested to confirm receipt of your correspondence.

We can often help you gain relief from identity theft. 

How to Protect Yourself from Identity Theft

To discuss whether you have a lawsuit to pursue, CONTACT US.

Mortgages and Loans

Buying or refinancing your home may be one of the most important and complex financial decisions you'll ever make. Many lenders, appraisers, and real estate professionals stand ready to help you get a nice home and a great loan. However, you need to understand the home buying process to be a smart consumer. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Don't let this happen to you!

You have the right to be free from predatory lending practices.  The federal Truth in Lending Act (“TILA”) protects consumers from overcharges and other undisclosed “costs of credit”.  Other federal lending laws such as the Equal Credit Opportunity Act (“ECOA”), which protects against credit discrimination, and the Real Estate Settlement Procedures Act (“RESPA”), which prevents kickbacks and bait-and-switch lending, exist to help borrowers in the often complex area of loans and consumer lending.  Several state laws also provide protection for borrowers.

If you’re the victim of a bait and switch, in Pennsylvania or New Jersey, non-disclosure of material terms, overcharges and fees, or other predatory lending practices, we may be able to help.  CONTACT US to discuss the specific issues of your home purchase or refinance.

Our Client, a Victim of Mortgage Fraud, is Welcomed to the White House

A number of our consumer protection cases have gained national attention over the years, but none more than our litigation on behalf of Karen Cappuccio of Hellertown, PA whom we represented in a case against Countrywide Mortgage, which is now owned by Bank of America. On October 9, 2009, Karen was invited to the White House to discuss her story with the President of the United States.

 

As part of his national press conference on Consumer Financial Protection, President Obama pointed to Karen's case as a blatant example of predatory lending and added that Karen was forced to fend off foreclose  because "her mortgage company duped her into taking out two expensive loans when they had originally promised her one low, fixed-rate mortgage." The President's remarks, including his mention of Karen, can be viewed at http://www.youtube.com/watch?v=fwbqmZpSXho

 

In 2006, Karen applied to refinance her home mortgage with low-interest, fixed rate loans.  However, her application was later altered without her knowledge and she was placed in high-interest, variable rate loans.  We helped Karen fight the banks that put her in the position of having loans she did not want and loans she could not afford.  Karen’s case went to trial, where a jury awarded her a verdict under the federal Equal Credit Opportunity Act and Pennsylvania’s Consumer Protection Law. 

 

Pictured is our client, Karen Cappuccio (seated fourth from left), meeting with President Obama to discuss her experiences as a victim of mortgage fraud.  President Obama referred to Karen’s situation during his press conference on October 9, 2009 about establishing a new Consumer Financial Protection Agency.   

 

Robo-Calls and Junk Faxes

Telemarketing is popular because it is an inexpensive way to market products. Costs are low for the telemarketer, but high on the individual who may be annoyed, inconvenienced, or even psychologically harmed by numerous pre-recorded (or robo) calls throughout the day. You have the right to be free from unwanted automated telephone calls and faxes. 

The Telephone Consumer Protection Act (TCPA) of 1991 and other related laws regulate unwanted telemarketing calls, junk faxes, and unwanted text messages to cell phones at the recipient’s cost. The TCPA and other regulations make it illegal for debt collectors and advertisers of products and services to make calls using automatic telephone dialing systems or artificial or prerecorded voice systems to cell phones or to residential phone lines without consent of the called parties.  Those making calls are required to:

1. Make calls between 8 a.m. or after 9 p.m., local time.
2. Maintain a “Do Not Call” (DNC) list, which must be honored for 5 years.
3. Provide their name, the name of the person or entity on whose behalf the call is being made, and a telephone number or address at which that person or entity may be contacted.  In addition:
4. Calls cannot be made to residences with artificial voices or recordings unless there is consent or an existing business relationship.
5. Calls cannot be made with artificial voices or recordings to cell phones or to any service in which the recipient is charged for the call.
6. Prerecorded or autodialed calls cannot engage two or more lines of a multi-line business or to any emergency number.
7. Unsolicited advertising faxes are prohibited.
8. If there is a violation of the TCPA, individuals or businesses are entitled to collect damages directly from the sender in the amount of $500 to $1,500 for each violation, or recover actual monetary loss, whichever is higher.

If you've received unwanted faxes or automated telephone calls from a debt collector or a company advertising a product or service, you may be entitled to sue.  Keep copies of faxes and voice messages and maintain a call log of when the calls or faxes were received.  Also, you may make a recording of messages that were left on your phone, creating a document with date, time of day and the message that was left.  CONTACT US to discuss whether a lawsuit can be pursued.

Recent Cases

Watson v. NCO Group, Inc., 462 F. Supp. 2d 641 (E.D. Pa. 2006)
Debt collector who made dozens of  automated “robo-call” debt collection calls to a consumer who owed no debt ,violated the Telephone Consumer Protection Act (TCPA) and the Fair Debt Collection Practices Act (FDCPA).

Unfair Business Practices

Unfair or Deceptive Acts and Practices

A variety of state and federal consumer protection laws exist to cover many unfair or fraudulent business practices in Pennsylvania and New Jersey.  These laws are often flexible enough to cover new scams or swindles that change with the times and technology.  Recently, our consumer lawyers won a jury verdict against a major national bank under Pennsylvania’s Consumer Protection Law after the jury found the bank engaged in deceptive, predatory mortgage lending. CONTACT US, we may be able to help you.

Product Defects and Warranties

You have the right to insist that the products you buy for yourself and for your family are safe and live-up to the manufacturer’s warranty.  As evidenced by the thousands of product recalls each year, the products we buy often have problems that make them unsafe or inadequate.  A warranty is often a major factor in the purchasing decisions we make.  If you’ve purchased a product that is dangerous, wears-out prematurely or is otherwise defective, contact us – we may be able to help.

Our firm is co-lead counsel in a class action suit against a major tire manufacturer over premature tire wear.  We negotiated a nationwide class action settlement which resulted in a settlement fund of up to $8million, with refunds of as much as $90 per tire for the class members.  If you purchased certain lines of Continental tires – whether on a new Chrysler 300 or at a retailer -- and your tires wore out early, you may be entitled to a substantial refund.  Check out www.tiresettlement.com for details.  You have until September 2010 to file a claim.

If a manufacturer or service provider is not living-up to a warranty it has made to you, you may have the basis for a lawsuit. CONTACT US, we can help. 

Serious Personal Injury

If you or a family member has been seriously injured by someone else’s carelessness, we may be able to help.  The firm has a long history in the settlement and trial of serious  personal injury matters.  Our trial results include:

• An award on a Philadelphia jury verdict of over $10 million involving a serious collision with a tractor-trailer;
• An arbitration award in Montgomery County of over $1.1 million to a union electrical worker injured while driving his company truck;
• A non-jury verdict in Bucks County of $2 million to a warehouse supervisor who suffered serious leg and foot injuries on a dangerous platform;
• An award on a Montgomery County jury verdict of over $240,000 to a retail manager injured in a car accident on his way home from work;

These are a sampling of trial verdicts and similar awards.  Of course, most cases are able to be settled without trial and the firm has secured millions of dollars in compensation for its clients by settlement. CONTACT US, we may be able to help.