Alabama Consumer Law Blog

CNNMoney.com has posted an interesting article ,that we have turned into a series of posts, where 10 former debt collectors were interviewed to share their experiences in the collections industry...and why they chose to leave it.

Mike Huddleston worked as a debt collector at a bank for 11 years where he was responsible for collecting on, and sometimes repossessing, car and boat loans. Needless to say, this didn't do much for his popularity and Huddleston says he was threatened with a gun, had 2 Dobermans sicced on him by a debtor. However, Huddleston says he never:

tried to scare people or take advantage of peoples' ignorance by threatening things like eviction even though we weren't allowed to evict someone. But it was still tough to deal with people who are struggling so much, and it was even harder knowing that a lot of people aren't telling you the truth.

The interview doesn't say why he left the debt collection industry, but Huddleston now works as a consumer credit counselor.

Ryan Neuweg was the founder an owner of a collection agency. He said he immediately realized the industry needed reform after he posted a job vacancy and received over 300 applications, but after telling applicants that drug and background checks were required, the pool dropped to about 100 people.

To assure no harassment or nothing illegal was being done, Neuweg says he:

had to put a lot of checks and balances in place and keep collector morale high to make sure no laws were violated and that standards were met. It's difficult to make 50 or 60 calls a day to people that don't want to hear from you -- so we had to try to keep the pressure off our collectors so that no one exploded over the phone with a debtor.

Neuweg had to do a lot of collecting himself and says he found it very rewarding to negotiate with debtors who felt "buried alive" by debt and come to an agreement. He now owns a matchmaking business that pairs debt collection companies with businesses.

If you have had issues with debt collection companies and 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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CNNMoney.com has posted an interesting article ,that we have turned into a series of posts, where 10 former debt collectors were interviewed to share their experiences in the collections industry...and why they chose to leave it.

Bruce McClary spent 3 years as a debt collector and says the agency where he worked didn't tolerate collectors using bad language or other harassment tactics with debtors. He says that in his case, the debtors were the ones that "would tear us apart over the phone" with some of "the meanest, most randomly strewn together vulgarities," or threaten to actually come to his place of work and "beat the stuffing" out of him.

McClary says he learned not to take this personally and, overall, cites his experience as a debt collector as positive. He says the repetitiveness of constantly demanding money prompted him to leave the industry do something that helps people. He currently works as a credit counselor.

Jeffrey Deutsch worked as a debt collector for 2.5 years and says the position appealed to him because he enjoyed the challenge of tracking down debtors. He says:

I would take it as a personal triumph when I got debt paid off, and in my opinion, they owed the money, so as a representative of the creditor, I had the right to collect the money.

Deutsch says he really enjoyed the challenges the job presented, but was let go after getting the flu and failing to meet his quota.

If you have had issues with debt collection companies and 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.

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:

CNNMoney.com has posted an interesting article ,that we have turned into a series of posts, where 10 former debt collectors were interviewed to share their experiences in the collections industry...and why they chose to leave it.

Michelle Dunn worked as a debt collector for 18 years and shows us a different take on it. She says she initially took the job because she was good at it and it was easy for her. At first she felt like she was doing a good thing by helping companies get the money they were owed. Based on this interview, she says the main reason she left the industry was because of the abuse she received as a debt collector. Consumers being harassed by creditors is common and inexcusable, but it's different to hear about a debt collector being the harassed party.

Dunn says that people would call her every five minutes and harass her since she was harassing them. She received verbal threats, was faxed pages of profanity and even had to be walked to her car by security because of debtors threatening to hurt her as she left work. She says she ended up leaving debt collecting because she "couldn't take the screaming and name calling anymore. That and the sob stories from people who are down and out, don't have the money you're asking for and are so unhappy to hear from you each time you call. It isn't fun for anyone. "

Lisa Parker was a debt collector for five years and says there was a lot of pressure to collect debts, by any means necessary, to keep the job. She says:

"I felt that I had to say whatever I needed to in order to collect the money, and there were times when I was more aggressive and more assertive than I would have chosen to be. "

Parker says she also illegally called debtors' neighbors and family members because she learned that was one of the best ways to intimidate people into calling her back. She says the long hours, pressure, and lack of self satisfaction in her work finally got to her and she left the collection agency.

If you have had issues with debt collection companies and 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.

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:

CNNMoney.com has posted an interesting article where 10 former debt collectors were interviewed to share their experiences in the collections industry...and why they chose to leave it.

Bob Cook was a debt collector for 16 years and says he quit due to the high stress; he says he would even sometimes become physically sick at the thought of going into work. He also was dealing with things like people chasing him in the street and finding a pit bull tied to the motorcycle he was sent to repossess.

Another time, Cook says he was speaking to a man who was 6 months behind on payments on his mobile home, was recently divorced and also had lost his job. Cook says he was being "perfectly reasonable" and reminded the man that he couldn't live there for free. He also told the man to enjoy the upcoming Christmas holidays and not stress about finding a place to live until January. The man ended up going home and shooting himself; Cook quit the collection agency afterwards.

An anonymous interviewee spent 16 years as a debt collector and witnessed many different methods of consumer harassment in that time. This person says that a fellow collector in a nearby cubicle would call debtors and claim to be a legal counselor and then ask several personal questions, all the while reminding the debtor constantly that they were, allegedly, under oath. This person also says that collectors called people with the "intent of harassing and intimidating them." If someone hung up on the collector, they would call back immediately. If a debtor asked to speak to a supervisor or manager, the higher-up would also be just as obnoxious and "abrasive."

Our friend Anonymous says that collectors can get away with harassing people because consumers "just don't know their rights." This person was dismissed from the collection agency for not being "aggressive enough."

If you have had issues with debt collection companies and 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.

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:

USA Today.com has posted an article about how a new rule from the Federal Trade Commission can aid consumers who are looking into debt settlement options. This new rule will make it much more difficult for debt-settlement companies to make questionable claims about their success rate. Furthermore, the rule will ban the companies from charging up front fees, which is likely to drive a lot of the debt-settlement companies out of business.

"With this rule we'll be taking a major step towards cleaning up the Wild West of debt settlement," FTC Chairman Jon Leibowitz says.

The rule will crack down on marketing companies that earn big commissions for signing up as many customers for debt settlement as they can, says Gerri Detweiler, personal finance expert for Credit.com. These businesses have no interest in determining whether consumers are good candidates for debt settlement, she says.

Michael Bovee, founder and president of Consumer Recovery Network, a debt-settlement firm that doesn't charge upfront fees, agrees. Many consumers who have signed up for debt settlement in recent years should have filed for Chapter 7 bankruptcy, he says.

But Detweiler contends that debt settlement remains a viable option for some consumers who have large credit card debts but aren't good candidates for bankruptcy. A 2005 bankruptcy-reform law created a "means test" that has made it more difficult for some individuals to file for Chapter 7 bankruptcy. And a bankruptcy filing will stay on your credit report for 10 years, which could make it difficult for you to get a job, particularly one that requires a security clearance.

The FTC has provided a handy guide that prompts consumers to ask the following questions before signing up with any debt settlement company or agency.

-What's your success rate, and what percentage of people drop out of your program?

The rule prohibits companies from cherry-picking examples of successful customers to inflate their results. If a debt-settlement company claims it can reduce your debt by a certain percentage — 40% to 60%, for example — ask for objective evidence to support that claim.

•How much will it cost, and how long will it take to settle my debts? The biggest misconception consumers have about debt settlement is they'll get a service in exchange for an advance payment, Leibowitz says. "Most of them do not do that."

The FTC rule bars debt-settlement firms from collecting any money until they've settled or reduced your debt. But you should still make sure you understand how much the service is going to cost and how long you'll have to wait before you see results. Under the FTC rule, if the company bases its fees on a percentage of the amount it estimates you'll save, it must provide both the percentage and the estimated dollar amount that represents.

•How much will I need to save? Debt-settlement companies typically ask you to make regular payments to a dedicated account. When a certain amount has been saved, they'll go to your creditors and offer to pay off a percentage of the debt. The rule requires debt-settlement firms to provide a reasonable estimate of the amount you'll need to save before they'll make an offer.

•Where will the dedicated account be held? The FTC rule establishes several conditions for this account: It must be held at a financial institution that's not affiliated with the debt-settlement company; it must belong to you; and you must have the right to withdraw your money at any time.

Before signing on with a debt settlement group, it's a good idea to call your creditors and explain the situation.

If you have had problems with debt collection or debt settlement companies and 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.

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:

CNNMoney.com has posted an interesting article where 10 former debt collectors were interviewed to share their experiences in the collections industry...and why they chose to leave it. We will turn this into a sequence of 5 blog posts and highlight 2 former collectors in each post.

Mel Harsh, the first debt collector, admits that he was "absolutely ruthless" when he first started out as a debt collector and would even resort to using blind threats to intimidate people. He says that he thought being aggressive was the only way to succeed in that industry, and then he began to enjoy being so authoritative. He says he later realized that if someone owes his collection agency money, then they probably also owe several other companies money and he chose to soften his approach to be nicer, but will still sue people because "it's part of the job."

At the time of this interview, Harsh had one week left as a debt collector. He said he was leaving the industry because, although the money was excellent, "I'm sick of all the agony I put people through."

Alexis Moore, another former collector, says that collectors in the agency where she worked were asked to break the law everyday and if you didn't, "you were asked what was wrong with you." She engaged in law-breaking practices such as calling late at night and faxing a person's workplace regarding their debt. If someone didn't take their calls, she would call their neighbors and ask them to stick notices on the debtor's door telling them to contact the agency immediately.

She says they were encouraged to harass people, because while it was illegal, it got results. Moore says that there were contests to see which collector could make the most people cry during the workday, and she overheard one collector threaten someone over the phone in Spanish that they were going to send someone to his house to beat him with a tire iron.

Moore was a debt collector for ten years and is currently the founder and President of a non-profit advocacy group for people who have been victims of crimes such as cyber-stalking and identity theft.

If you have had issues with debt collection companies and 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.

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:

When we think about who the Fair Debt Collection Practices Act (FDCPA) is designed to protect we don't normally think of . . . debt collectors.

In a new article we explain how the FDCPA is designed to protect honorable . . . law abiding debt collectors from those debt collectors that are abusive and dishonorable.

You can learn more about the FDCPA and how it applies to consumers here and you can also request our free book on Stopping Abusive Debt Collectors.

If you live in Alabama, pick up the phone and call us at 205-879-2447 or fill out our website contact form and we'll get right back with you.

The New York Times has posted an article about an announcement made by the Fair Trade Commission that will help consumers rid themselves of "crippling" amounts of debt. The new restrictions are in response to complaints from consumers that lenders charge huge fees but fail to reduce the consumer's debt obligations.

Taking effect in the fall of this year, the new restrictions will prohibit debt collection companies from charging a fee before they reduce a customer's unsecured debt or credit card debt. Companies will also be required to set up accounts that will be dedicated for debt relief payments and fully disclose tell how long debt-reduction negotiations will take, how much it will cost and if there will be any negative consequences.

“Too many of these companies pick the last dollar out of consumers’ pocket and, far from leaving them better off, push them deeper into debt, even bankruptcy,” Jon Leibowitz, chairman of the F.T.C., said in a statement announcing the regulations.

“This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, upfront fees,” he said.

Debt collection programs became very popular because of the recession, high unemployment and the collapse of the housing market. Unfortunately, with the growth comes more unfair debt reduction practices that take advantage of consumers.

Attorneys general in more than 20 states have brought enforcement actions against debt-relief companies since 2004. According to comments filed with the F.T.C., the number of consumer complaints against companies in the industry more than doubled from 2007 to 2009.

The leader of a trade group representing the debt-settlement industry said he believed the rules were unfair and would put a lot of companies out of business.

“I think this is a victory for the big banks and a loss for consumers,” said David Leuthold, the executive director of the Association of Settlement Companies.

Credit card companies often will not settle a debt for less than is owed until a consumer has deposited the entire negotiated repayment in an independent account, Mr. Leuthold said. If the companies are not allowed to collect any fees before settlement, that leaves them providing services for months without compensation.

“Most companies will go out of business because of this,” he said.

If you have had issues with debt collection companies and 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.

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:

Every Thursday we send out our popular newsletter Consumer Power but it occurred to us that we should put our older issues online.

We are in the process of doing this - if you would like to read our June 2010 issues you can read them here

We talk about debt collectors, credit reporting, and foreclosure issues in our newsletters.

We'll put up all of the old issues but the best way to get them is to subscribe to them right here so you'll get them every Thursday morning.

We would love to include you! Just fill out the form below:

We have a new article that answers this question - why must the debt buyer stop reporting a debt on my credit report when I beat the collector in the collection lawsuit?

Short answer - because when you win it means you don't owe that collector on that debt.

If you don't owe the debt, then how can it be reported?

Legally, it can't.

If it is still being reported, then you may have the option to sue the collector.

If you live in Alabama and want to chat with us, pick up the phone and call us at 205-879-2447 or contact us through our website form here.

We wish you success in your debt buyer lawsuit.

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!

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.

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:

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:

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:

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:

We have mentioned before how most debt collectors who leave voicemails violate the law because, among other things, they don't leave the "Mini-Miranda" warning. This violates the Fair Debt Collection Practices Act (FDCPA).

Basically this is to say "I am a debt collector" and "This is an attempt to collect a debt."

Here is an advertisement from the Association of Credit and Collection Professionals (ACA) for a teleseminar on whether to leave messages or not. In the quote below you'll see a reference to "Foti" which is a case that held collectors must leave the Mini-Miranda:

Approximately 46 percent of respondents to a survey conducted by ACA in February said they currently use the Foti message with the mini-Miranda when calling consumers. Thirty-nine percent said they do not use that message and 14 percent said they do not leave a message at all. Questions continue to be raised regarding the benefits of leaving a message versus leaving no message at all.

Speaking of teleseminars, we held one on Stopping Abusive Debt Collectors and this is now a book that is free for Alabama consumers who are not working in the debt collection industry.

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:

Almost every day we get a question or a client inquiry about debt collectors calling a third party. And calling that third party - not for location information - but for an illegal purpose in collecting the debt. We wrote a new article you can find here that explains these concepts - third parties and location information.

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:

Mike talks about his experience with an abusive debt collector who was calling his cell phone.

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: