We recently sued Wells Fargo for wrongful foreclosure and fraud and since it is a common type of fraud, we thought it might be helpful to show you the complaint we filed in federal court.
If you live in Alabama and you are dealing with anything similar to this with any mortgage company (especially Wells Fargo), please let us know as we would like to hear about your experiences.
Interesting news report that JP Morgan Chase is apparently stopping its collection lawsuits. I have not verified this in Alabama as Chase is not a huge filer of collection lawsuits here but will do so when I have a moment.
Here are some interesting quotes from the excellent article:
A sampling of court records in the major cities in five states shows that Chase collection suits have virtually disappeared. In a sixth state, Illinois, contract attorneys continue to file small-dollar cases, though at a reduced rate.It is unclear whether Chase has stopped pursuing collection on many claims nationwide, or if intends to pursue the debts in some other fashion. The bank has not explained its apparent moratorium and declined comment.
Chase's halt does, however, follow scattered defeats in state courts and a whistle-blower's allegation that it falsely overstated the balances of thousands of delinquent accounts it sold to a third party. Former Chase employees and debt collection experts insist that the bank would not have abruptly retreated from its collections efforts in the absence of trouble.
We'll see how this plays out and how various problems with bogus debts affects the banks.
It is bad enough being sued by a debt buyer over an old debt. Worse to be sued when you don't owe the debt. The ultimate insult is when you have been sued, you win your lawsuit, and the debt buyer still won't remove the false information from your credit reports.
What is the best solution to this frustrating problem?
Each situation is different but often the best approach in Alabama is to sue the debt collector or debt buyer and the credit reporting agencies that refuse to correct false information. Unless you like being trapped in an endless loop of no one listening to you or helping you, then often the best approach to getting these companies to do the right thing is to sue them.
We recently did this by filing suit against LVNV, Equifax, Experian, and Trans Union after our Alabama consumer won the LVNV collection lawsuit, and disputed the false information on his credit reports.
If you have experienced this same problem in Alabama, please let us know as we would like to know your story as we gather more evidence of this growing problem.
We are in the process of finalizing a new website that is solely focused on Alabama foreclosures and ejectment lawsuits.
While Alabama Consumer and Alabama Consumer Protection have aspects devoted to foreclosure issues, we wanted a site that only discusses foreclosures to make it as easy as possible to find the information that you want.
We hope you enjoy it and leave us a comment or send us a message if you have any questions or suggestions.
Thanks!
John Watts and Stan Herring
There is a great deal of scams going on in the collection world related to pay day loans.
This lawsuit exposes a different facet of pay day loan collection scams -- assuming that the allegations are correct, which we believe they are.
I'm sure the defendants, National Credit Adjusters (also known as NCA) and Smith Haynes will strongly disagree and that is why, as an old judge told me once, they build these big courthouses. To decide who is right and who is wrong.
If you feel a collector has lied to you and you live in Alabama, please give us a call at 205-879-2447 and we'll be glad to chat with you and discuss your options.
You can read about what happened to an Alabama consumer after LVNV sued her, lost its case against her, and then continued to collect against her.
The collection activities included sending her collection letters from a law firm.
LVNV reported this debt on the consumer's credit reports, even though the court ruled the consumer did not owe the debt.
LVNV verified the debt, as did Equifax, when the consumer disputed the debt with Equifax by including a copy of the judgment in her favor.
If you live in Alabama and have been sued or threatened by a debt buyer or you won your case and the collection agency and debt buyer are still reporting the debt on your credit reports or they are sending you collection letters or calling you, feel free to pick up the phone and call us at 205-879-2447 or you can contact us through an online contact form and let us know if you prefer a phone call or email response.
Check out our other website where we have a long article on what it means when you win your Alabama collection lawsuit. This article discusses many of the illegal collection actions that collection agencies, debt buyers, and collection lawyers (all of these are debt collectors) take after you beat them in the lawsuit they filed against you.
Let us know if you have any questions about this and we hope this article is helpful.
It is no secret that there is an explosion of debt collection related to student loans and it is fairly common knowledge that student loan collectors have some greater powers than a typical collector has on a credit card debt or medical debt. We want to look at the additional powers these collectors have and the difference it makes whether the student loan is a private or federal student loan.
I have seen attorneys flatly say to people that there is no statute of limitation for private loans.
That you cannot discharge any student loan in bankruptcy.
That any student loan collector can garnish your wages or tax refunds or other government benefits whenever the collector wants to.
Not true.
Let's look at this way.
Similarities In Collection Of Federal And Private Student Loans
Under both types of loans, you can be sued by the proper party if you default on the loan.
You can face collection activities. This includes negative credit reporting. Collection calls. Collection letters.
Under both types of loans, it is very difficult (but not impossible as collectors will often lie and say) to file for and receive a bankruptcy discharge.
Student loan collectors have to follow the Fair Debt Collection Practices Act (FDCPA). The Telephone Consumer Protection Act (TCPA) also applies to calls to your cell phone.
Differences In Federal And Private Student Loan Collection
Statute of limitation -- none for federal loans. Private loans will be based upon the applicable state law and what the contract says.
Options to rehabilitate or consolidate to bring out of default -- on a federal loan you can rehabilitate or consolidate (i.e. refinance) one time each if you meet the requirements. A private student loan collector does not have to allow you to do either unless the contract requires it (I've never seen that).
The definition of default -- a federal loan is in default if you go 270 days without making a payment. A private loan is in default whenever the contract says it is. This usually is one missed payment. Or moving without providing a new address. Or filing for bankruptcy. Or any number of other items.
Ability to wage garnish -- under a federal loan, you do not have to be sued. You do have to receive a notice letter and have an opportunity to request an administrative hearing. (Note many collectors will lie about this -- they say they can garnish you whenever they want). A private student loan collector cannot do this -- instead you must be sued, lose the suit, and then you can be garnished if allowed under state law. This is the same as a credit card debt, mortgage loan, etc.
Ability to intercept government benefits or tax refunds -- a federal student loan default can result in your government benefits being intercepted. There are some exceptions but this is a very powerful tool. A collection agency for a private student loan company cannot do this. Instead it is simply the same as a credit card debt, car loan, etc.
Powerful Collection Powers But Still Governed By The FDCPA
Yes it is true that even private student loan collection activities are powerful but they are not unlimited. The main benefit to collectors is the difficulty of filing bankruptcy.
But even collection agencies on federal loans have limits.
And all of these guys, if they are considered debt collectors under the FDCPA, are governed by the FDCPA and cannot violate that law.
Well, they can violate the law. But if they do you can sue them.
So appreciate the powers they have -- especially if collecting a federal student loan -- but understand these collectors are not all powerful and can be brought down when they violate the law.
If you have been abused by student loan collectors or have any questions, get with a consumer lawyer in your state. If you live in Alabama, feel free to call us at 205-879-2447 or you can fill out a contact form on our website.
We wrote an article about another investigation into Encore (Midland Credit or Midland Funding) and in that post we discuss the "Consumer Bill of Rights" that Midland promises to abide by.
Interesting stuff about credit reporting, suing you, and collecting from you.
Let us know what you think of this by Midland....
Ever get those annoying robo dialed or computer dialed calls to your cell phones? Everyone does and they can be very harassing.
Instead of a person dialing your number, collection agencies (such as Portfolio Recovery), car finance companies (such as Santander), credit card companies (such as Chase), and others can hit a button on a computer and blow up thousands of phones a minute.
This is why these places will call you several times a day up to sometimes 10 times a day.
Not only is it harassing and annoying, but quite often it is illegal.
The Telephone Consumer Protection Act (TCPA) makes this illegal unless you gave permission.
If this law has been violated, as it often is, then you may be entitled to damages of either $500 per call or $1500 per call.
Find out more at Alabama Consumer Protection where we have a practice area page devoted to illegal calls to cell phones.
If you live in Alabama, please feel free to call us at 205-879-2447 to discuss this matter.
There are many reasons to consider bankruptcy. Maybe you are dealing with abusive debt collectors or you are facing foreclosure. Or maybe you have lost your job and are drowning in debt.
Bankruptcy is a very serious option with serious consequences. Those consequences can be good overview of the bankruptcy laws, particularly for the Birmingham, Alabama areagood or bad.
It makes sense to do what you are doing -- research to find out about your options.
On our website Alabama Consumer Protection, we have a page which gives you a good overview of the bankruptcy laws, particularly for the Birmingham, Alabama area.
You can also watch videos related to bankruptcy and read articles about bankruptcy and blog posts about bankruptcy. Our goal is to give you resources that can help you.
We wish you the best in your research and if we can help you understand the law or your options, and if you live in Alabama, please feel free to call us at 205-879-2447.
About half of our practice is suing abusive debt collectors in state and federal courts in Alabama. We have a ton of information on this blog, on our main website Alabama Consumer, but we also have just completed a long page with very detailed information about abusive debt collection practices and links to videos on Alabama Consumer Protection.
We invite you to check it out if you live in Alabama and if you are having any contact with debt collectors.
We hope you find this useful -- if you have any questions or comments, please feel free to leave them on this page or contact us at 205-879-2447.
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