Alabama Consumer Law Blog

The California Credit Law Blog refers to the not so free credit reports that Experian is pushing:

The NY Times reports that Experian is spending $70 million per years advertising its FreeCreditReport.com site where many consumers log on deceived into believing they will get a "free" credit report. For example, one person provided his credit card information thinking it was needed for identification only to find Experian charged him $14.95 a month for a credit-monitoring service.

The Experian website is not the one site where the credit report is free--that would be www.annualcreditreport.com. In 2005, the FTC sued Experian for deceptive marketing of its FreeCreditReport; Experian paid the FTC a fine of $950,000 settle.

We always recommend that pull your reports, review them, dispute errors, and file a suit if the errors are not corrected. Please contact us if you are having problems correcting errors on your credit reports.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Credit Report Errors

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We have sued the Texas debt collector Anderson Crenshaw in the past for violating the Fair Debt Collection Practices Act and re-aging accounts on credit reports. On August 6, 2008, the Texas Attorney General sued this collection agency for violating laws in collecting debts.

Many consumers are having to deal with Anderson Crenshaw, particularly over alarm systems, and if you are one of these consumers be very careful and protect yourself. We applaud the Texas Attorney General Gregg Abbott for taking this much needed action.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers

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Here is an interesting post from a collection attorney in Michigan concerning a debt buyer trying to prove its case against a consumer. While we differ with the author (Gary Nitzkin) on several issues - we do believe that the debt buyer must bring a witness from the original creditor, for example - still the substance of the article fits with our view of the law. And that is that it is very difficult for most debt buyers to prove their case because they are unwilling to follow the simple rules of evidence in a collection lawsuit.

They sue on debts they have no business suing on and refuse to dismiss lawsuits when the consumer challenges the suit. The entire strategy of the debt buyers we have dealt with is to hope and pray the consumer defaults. Don't let this strategy work - instead answer the lawsuit and challenge the ability of the debt buyer to prove its case at trial.

Feel free to contact us if you are dealing with a debt buyer lawsuit - we can help you understand your options and legal rights.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers

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Jay Fleischman has another short but powerful post on consumer litigation issues in his New York Consumer Litigation Blog. This post focuses on the fact that debt collectors (or debt buyers in this case) must actually prove that you owe them the money they claim. While traditionally Alabama courts have not been as demanding on debt collectors to prove in a default judgment setting that you owe the money, the tide seems to be turning in that direction. At least in a real trial we have found the judges to demand that debt buyers prove you owe the debt and that the debt buyer owns the debt.

If you have been sued in Alabama by a debt buyer, please contact us for more information.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers

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Our friend Jay Fleischman of the New York Consumer Litigation Blog points out something that is rarely discussed in collection suits over credit card debt - which state statute of limitation law applies when a credit card company (or debt buyer) sues you?

Here is the heart of the matter according to a recent court decision out of Florida:

In the recent case of Capital One Bank USA, NA v Gregorich, one court in Florida has hit the nail on the head by saying that the statute of limitations is governed by the Cardmember Agreement between the consumer and the credit card company.

In the Gregorich case, Capital One began a lawsuit about 3 1/2 years after the date of default. The Customer Agreement (Capital One’s term for Cardmember Agreement) specifically stated that it would be governed by Federal and Virginia law. The relevant statute of limitations in Virginia was deemed to be 3 years because the Agreement did not qualify as a “written contract” governed by the 5 year Virginia Statute of Limitations.

End result? Capital One loses.

Your lesson? Always check the Cardmember Agreement to determine the appropriate statute of limitations.

If you have been sued, feel free to contact us for a free evaluation of your options and rights under the law.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers , Credit Card

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Please read here for a sober warning about scams involving early retirement - even for employees of large well known companies. As always, educate yourself and protect yourself.

By the way, the Investor Fraud Lawyer Blog is an excellent resource for these types of issues.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Investment

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John G. Watts of Watts Law Group P.C. discusses debt collection, and the four elements necessary to have the Fair Debt Collection Practices Act apply.


MP3 File

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers , Podcasts

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Consumers can make a difference by being educated and taking action on their consumer rights. Abusive debt collectors can be sued. Credit reporting agencies can be sued. But the real long term difference will be made when we all (we are all consumers, right?) take action within the framework of the government. Here is a page on NACA (National Association of Consumer Advocates) which discusses what we can all do to make a difference. Please take the time to protect yourself by getting involved.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Recent Consumer News

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On our Personal Injury blog - Birminghaminjuryblog.com, we recently discussed a study reported by the NY Times on whether most plaintiffs come out better or worse when going to trial versus settling. While each case is unique and there are many factors to consider, this is an interesting study.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Trial Tips

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We previously discussed medical credit reports - here is an update with some additional information that may be of interest to you as this practice of rating consumers based upon either ability to pay or previous medical treatment will only grow. We'll keep you posted.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Credit Report Errors

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The CL&P always produces good work and this article is particularly interesting as it shows some seeming contradictions between past and current writings of one of arbitration's biggest supporters. Read the article yourself and keep your eyes open as it seems that the arbitration zealots have finally over-reached so much that Congress may be inclined to step in and take some much needed action for consumers....

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Arbitration

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The Consumerist recently ran a story on this gentleman who set himself on fire in a rent-a-center store because he said he had received too many late notices and collection calls.

Obviously there are serious issues involved with this man but Congress recognized when it passed the Fair Debt Collection Practices Act that abusive collection tactics can break up marriages and have a terrible effect on consumers. If you are being abused by collectors please feel free to contact us as we sue abusive debt collectors.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers , Recent Consumer News

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Our friend Denise Richardson has an interesting post about how Credit Solutions, supposedly the largest debt settlement company in the nation, is being sued for allegedly misrepresenting what it can do for consumers. With so many consumers facing crushing debt, there is a huge marketing campaign ongoing for debt settlement companies. While I'm sure there are some good ones, we typically hear of the bad ones who take consumers' money and provide nothing in return other than a destroyed credit report and, usually, default judgments when the consumer is sued. If you are considering using one of these companies, make sure you understand what you are "buying" and what they are "selling".

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Credit Card , Recent Consumer News

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Here is an interesting YouTube video on debt buyers, harassment, and ways to fight back. Enjoy this video and we hope it is helpful to you.

If you live in Alabama and are facing any type of contact with debt collectors, please contact us and we will be glad to help you.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers , Video

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We recently filed a suit on behalf of an Alabama consumer against three related debt collectors - LVNV, Capital Management, and Resurgent Capital. We also sued Experian for violating the Fair Credit Reporting Act by keeping a false account on our client's credit report.

LVNV sued our client and claimed she owed LVNV money. LVNV lost its collection case against our client. Instead of letting that be the end of it, LVNV had Capital Management and Resurgent Capital to start collecting on this debt that a judge said our client did not owe. LVNV also kept this account on our client's credit report, violating both the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

We have filed a number of these types of suits against debt buyers who refuse to follow the law and instead keep collecting and keep credit reporting false information. You can find our recent cases by looking at our website here or our blog here.

Please feel free to contact us if you live in Alabama and have questions about your credit reports after you have defeated a bogus collection suit

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Cases Filed , Collectors/Debt Buyers , Credit Report Errors

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Asset Acceptance is a company that we have sued before for false credit reporting after losing a collection lawsuit against our client who did not owe the money. Creditcollectionsworld.com recently ran an interesting story on the financial condition of this large debt buyer which is summarized in this final paragraph from the story:

Asset Acceptance had reported net income of $6.8 million in the first quarter ended March 31, down 31% from profits of more than $9.8 million in the same period last year. Revenues totaled $63.7 million, down 4.6% from first-quarter 2007 revenues of $66.8 million. In the quarter, Asset Acceptance spent $22.3 million to purchase charge-off consumer debt portfolios with a face value of $548.5 million, for a blended rate of a little over 4 cents on the dollar. This compares with a first-quarter 2007 investment of $36.3 million to purchase portfolios with a face value of $765.1 million.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers

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Click here to see a listing of the top debt buyers, collection agencies, and collection lawyers from 2007. Its always interesting to know if a company you are dealing with is a major company or a smaller company and we are always interested in this when we file suits against abusive debt collectors and debt buyers.

Posted by John G. Watts & M. Stan Herring | Permalink | Email This Post

Posted In: Collectors/Debt Buyers

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