Alabama Consumer Law Blog

The Indiana Consumer Lawyer Blog has posted an article that provides some tips on being an effective consumer lawyer.

One of the most important things you can do as a consumer attorney is to listen to your client and then fully answer and explain their questions or concerns. Robert Duff, the writer of the article, compares this to going to see a doctor. If you were injured and told you had to have surgery, you would certainly want the doctor to thoroughly explain how surgery would repair the injury and what recovery time would be like. You would want the doctor to take his time with you and understand that your injury has hugely impacted your life and you wouldn't be there talking to him if you didn't need his expertise.

The same is true for attorneys and their clients. People come to attorneys when they have a problem dominating their lives, such as with an abusive debt collector, been sued by a debt collector, have credit report problems or a multitude of other reasons. They want and need a complete explanation for the solution to their problem.

There is also a lesson for consumers in this, too. Educate yourself, do research, get second opinions and be proactive when deciding on an attorney to hire.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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Our friend Denise Richardson of givemebackmycredit.com has posted an article what's really behind the cause of the continuing mortgage and foreclosure crisis. It seems that one of the major underlying problems is that there's no motivation for the banks, credit bureaus, corporations, or debt collection agencies to tell the truth. When the facts and the law aren't on their side, they simply bend the facts and situation to their advantage and end up hurting you, the consumer.

Many people feel that's exactly the scenario playing out across this country in courtrooms and on Capitol Hill. With continued reports of unfair and wrongful foreclosures and use of fabricated title documents cropping up in courtrooms across the country, it adds up to trouble. A whole lot mistruths, twisted facts and personal attacks designed to cover the truth -and someone else's butts.

In fact, here's a great example of how they do just that:

"Legal Tips for Servicers" a guide that essentially teaches mortgage services how to side-step liability. This can be considered as a little "cheat sheet" in what one can easily view as a handbook designed to show how servicers can legally get out of owning up to one's own mess. Nice. Too bad consumers didn't have the same ready made manual.

Consumers are definitely playing a losing game. Recent financial reforms have succeeded in toning down the worst of the predatory lending, wrongful foreclosures, most people believe it hasn't gone far enough to protect consumers.

One example; Fannie Mae and Freddie Mac and the auto financing industry all got big get out of jail free passes. And, we now have a huge 2,500-page bill set to be law, without full understanding as of yet, what these reforms will mean for the consumer. One thing is certain out of this: there will now be a much needed consumer financial protection agency -an agency designated to act as the consumer's watchdog.

Richardson brings up a specific case about how the Bank of America lied to a couple about a loan modification. Lynne Lucas and her partner, Patrick, approached BoA about a loan modification after they saw a decline in their incomes after he was diagnosed with lung cancer and given a slim chance of survival. They were approved for a modification in January of this year, and discovered that their interest rate was lowered from 6.5% to 4.75%...which sounded great until they read the terms and BoA had actually increased their monthly payment by $570 a month.

Lynne and Patrick tried to negotiate the modification, which was denied in March with BoA claiming "investor denied." The very next day, with no warning, the property was sold as a foreclosure...an illegal foreclosure at that.

There are two problems with this; BAC Home Loan Servicing (Bank of America's servicing arm) owns the note.

Bank of America's attorneys sold the property at Sheriff's Sale less than 24 hours after being denied a loan modification.

However, Bank of America's servicing company BAC Loan Servicing didn't sell the property.

Fannie Mae sold it and they sold it to themselves for the filing fee of $35.00.

According to representatives in Barbara DeSoer's office and the Office of the Benzie County Register of Deeds, BAC Home Loan Servicing owns this note not Fannie Mae. Fannie Mae also has no record of owning this note.

This is yet another example of how creditors are tweaking the system to their advantage with little regard for the homeowners it hurts!

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

We are often asked by Alabama consumers "How do I get collectors to stop calling me?" and "Should I send a cease and desist letter?"

We wrote a short article on this subject that covers three options you have:

1. Pay the debt;
2. Send a cease and desist letter; or
3. Sue the collector.

In the article we talk about when each step is normally appropriate. We hope this is helpful and if you like this article you might like our book on Stopping Abusive Debt Collectors. You can request it by calling us at 205-879-2447 or filling out our contact form on our website.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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No. You should not.

In this article we talk about who the foreclosure lawyer represents and why he or she cannot advise you and why you should not look at the foreclosure lawyer as your friend. These lawyers are good lawyers but they represent the mortgage company - not you.

[By the way we have many articles on wrongful foreclosures, abusive debt collectors, being sued by debt buyers, and credit report issues that are available for you to read - no charge.]

If you have any questions, and you live in Alabama, call us at 205-879-2447 and we'll set up a time to chat about your questions.

Best wishes

John Watts
Birmingham, Alabama

Most debt buyer lawsuits in Alabama take place in District (or Small Claims) court. The loser can appeal if they are unhappy with the result.

In this article we talk about what this means to you as someone who has been sued by a debt buyer.

One way you may improve your chances of success is to read our free report that for well over a year has been our most popular report - to receive a free copy of the Five Secrets Debt Buyer's Don't Want You To Know About When They Sue You, contact us at 205-879-2447, through our website, or by filling out the form below. We wish you the best!

You may also enjoy our short video talking about appeals to Circuit court:

We made a major revision to one of our most popular articles - Illegal Calls To Cell Phones By Collectors.

This concerns violations of the TCPA - Telephone Consumer Protection Act and the FDCPA - Fair Debt Collection Practices Act.

Here are the headings - if this looks interesting click here to read more about protecting yoursefl from illegal collection calls to your cell phone.

Can I Sue A Collector For Calling My Cell Phone?

Use Of An Auto-Dialer Against Our Cell Phones Is Normally Illegal

What If I Gave Out My Cell Phone Number To The Collector? Revoke Any Permission You May Have Given To Call Your Cell Phone.

Voicemails On Your Cell Phone Can Violate The FDCPA

Save And Document All Voicemails

If The Law Was Violated, Sue To Recover Money Damages And Stop The Abuse!

You are welcome to request our free book on "Stopping Abusive Collectors" which explains in more detail how to fight back against collectors that violate the Fair Debt Collection Practices Act (FDCPA).

Feel free to contact us through our website or you can call us at 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Debt collectors - collection agencies, collection law firms, debt buyers, etc - cannot threaten to do anything that they:

1. Don't intend to do; or
2. Can't do.

It is illegal under the Fair Debt Collection Practices Act (FDCPA) to sue a consumer after the statute of limitations has expired.

So, it is illegal to threaten to sue after the time period has expired.

We have seen many consumers intimidated into paying debts they don't have to or that they don't owe for fear of being sued by a debt collector.

Know your rights.

Take action.

This is the best way to fight back against abusive law breaking debt collectors.

You are welcome to request our free book on "Stopping Abusive Collectors" which explains in more detail how to fight back against collectors that violate the Fair Debt Collection Practices Act (FDCPA).

Feel free to contact us through our website or you can call us at 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Don't fall for the myth that "I owe this debt so I don't have any protection from the law against abusive debt collection."

That's one of the central reasons Congress, over 30 years ago, passed the Fair Debt Collection Practices Act (FDCPA) - to protect consumers who owe debts from dishonorable and abusive debt collectors.

You are welcome to request our free book on "Stopping Abusive Collectors" which explains in more detail how to fight back against collectors that violate the Fair Debt Collection Practices Act (FDCPA).

Feel free to contact us through our website or you can call us at 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The Legal Intelligencer has posted an interesting article about a recent Pennsylvania ruling that says lawyers cannot use their own firm's letterheads when sending out collection letters unless the lawyer has reviewed the file and is prepared to file a lawsuit.

U.S. Magistrate Judge Andrew J. Smyser ruled that two letters from a New York lawyer amounted to clear violations of the Fair Debt Collection Practices Act because the use of law firm letterhead gave the false impression that a lawyer was working on the case and planning to sue.

"The least sophisticated consumer would be likely to believe upon receiving a communication from an attorney for the lender that the debt collection process has entered into a phase where the lender through its attorney will begin to use procedures established by law and known to attorneys to collect the debt," Smyser wrote in his 22-page opinion in Lesher v. Law Offices of Mitchell N. Kay .

Symser argues that a lawyer's letterhead automatically implies a threat of litigation since it is communication from an attorney. However, he also says that just because the letter had an attorney's letterhead then it automatically didn't violate the FDCPA because it contained the following sentence: "At this point in time, no attorney with this firm has personally reviewed the particular circumstances of your account." Because of that statement, Symser feels that it is clear that the letter didn't give the impression of impending legal action.

The suit alleged that the use of law firm letterhead to collect consumer debts — when there has not been attorney involvement or attorney review before collection letters are sent to consumers — is a violation of Section 1692e(3) and (5).

It also alleged a violation of Section 1692g on the grounds that Kay's collection letter created a false sense of heightened urgency and intimidation, and that there had not been a meaningful review of the plaintiff's account.

In court, the plaintiff's, Darwin Lesher, case is based on...

the notion that no matter how innocuous or benign the substance of the letter, an implied threat of litigation will exist because the letter came from an attorney. Plaintiff provides this court with no legal support for this proposition, and ... fails to point to anything in the substance of either of the defendant's letters which would violate Section 1692e(5) by suggesting such a threat,"

The defendant argued that the plaintiff was making too big of a deal about the use of a letterhead and ignoring the overall communication process between the lawyer and the recipient of the letter.

In the final ruling, Symser concluded that:

The use of law firm letterhead created a deceptive meaning.

"Although an attorney may be acting solely in the capacity of a debt collector and may not be communicating any explicit representation of a future course of action, when the attorney acting as a debt collector uses law firm letterhead the attorney acting as a debt collector plainly is communicating to the debtor in his or her capacity as an attorney," Smyser wrote.

"Therefore, since it is an attorney's communication, the implication is not avoidable that a threat of litigation is being presented to the debtor," Smyser wrote.

If you have had issues with attorneys seeking collections, feel free to contact us through our website or by calling 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

A common abusive tactic by debt collectors is to threaten to sue you even when the statute of limitations has expired. This is known as a "time barred debt" because it is too late for the debt collector to sue you.

A debt collector can't threaten to do anything that it does not intend to do or can't do. It can't sue you after the statute of limitations has expired. So it can't threaten you.

Check out our article here that discusses this illegal conduct by debt collectors if you would like to have more details.

You are welcome to request our free book on "Stopping Abusive Collectors" which explains in more detail how to fight back against collectors that violate the Fair Debt Collection Practices Act (FDCPA).
Feel free to contact us through our website or you can call us at 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Deepak Gupta has an excellent post on how the United States Supreme Court has ruled in a way to hurt consumers who seek justice but are prevented from doing this by arbitration agreements.

Take a look at the video and the post by Deepak - he does good stuff.

Let your senator know about this type of injustice.

Thank you.

John Watts

Monica, an Alabama consumer, discusses her experience with abusive debt collectors and how she felt after contacting our firm.

You are welcome to request our free book on "Stopping Abusive Collectors" which explains in more detail how to fight back against collectors that violate the Fair Debt Collection Practices Act (FDCPA).
Feel free to contact us through our website or you can call us at 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below: