Too many people today are facing financial hardships because of their debt. Recent studies show that more than a third of Americans feel their financial situations have worsened over the past year.
If you’re among the multitude of people struggling to make ends meet due to debt, the debt relief attorneys at National Legal Center are here to help. We don’t just want to help you, though. We want to help your children, too! Here are four money lessons to help your children avoid debt.
1. Teach your children to envision financial success.
Every parent wants their child to be successful. Success, of course, can be defined in a multitude of ways. For now, though, let’s focus on financial success.
Many people were raised to equate wealth with greed or that well-off people must have done something morally questionable along their path. Money doesn’t have to be vilified, though. There’s nothing wrong with encouraging your children to envision themselves as being financially successful in the future.
Ask your child to envision their future financial success. Ask them what it looks like. Allow them to imagine and let them bring you into that world with them. Having conversations like this will help them define financial success and adopt a mindset that creates a healthy relationship with money.
2. Teach your children the difference between debit and credit.
Recent surveys show that 79% of the national population embraces credit cards. However, while credit cards are very convenient, you can easily overlook that credit is just debt in disguise and can be harmful when not handled responsibly.
When discussing money with your children, you should explain the difference between debit cards and credit cards. Begin by explaining how using a credit card allows someone to buy something now and pay for it later, whereas a debit card directly pays for the transaction with funds in the bank.
You might also consider explaining the security benefits that come with credit cards over debit cards. Specifically, they limit the direct line of access to your bank account. Of course, as with many financial decisions, your child will want to understand how to weigh the pros and cons as they decide whether to use debit or credit.
3. Instill financial values intended to help your children avoid debt.
There’s a lot of buzz about bringing financial education into public schooling curriculums. National Legal Center Principal Attorney, Arthur Kohler, emphatically embraces the initiative and believes it can benefit our next generation tremendously.
In addition to bringing financial education into schools, we need to instill financial values, which starts at home.
There are a few financial values that can help your children avoid debt.
First, your child should know the importance of saving. If you teach them about money from an early age, it shouldn’t be challenging to guide them to understand that saving is essential to avoiding debt and securing their financial future.
Second, make sure your children understand the importance of living within their means. They need to know that debt is not a way of life, and they must always make an effort to spend and save responsibly.
Next, instill in your child that credit can be helpful, but it can also be dangerous. Make sure they know that credit is a tool they should use responsibly. Credit cards are heavily marketed and can seem exciting, but your child should understand how credit leads to debt if not used correctly.
Finally, we come to gratitude. It is so easy to fall into the trap of comparing ourselves to others and aligning our worth or success to others’ material belongings. Helping your child find gratitude for the things they have—especially the non-tangibles—will make it easier for them to ignore that yearning that we all experience.
4. Encourage your child to be open about finances (by being open yourself).
Studies show that children learn lessons more quickly than adults. We know this to be especially true when it comes to learning languages—the more they hear it, the easier it is for them to learn.
So, let’s apply this same concept to money matters.
The younger your child is when they begin to learn about money—and the more they encounter discussions about it in their home—the easier it will be for them to understand the concepts. Parents can encourage their children to be open about finances by being open about their own finances.
You can further your child’s understanding of finances by talking with them about how you manage your money. Specifically, share the struggles you have faced, those you’ve overcome, and those you’re still working through.
Most of us face financial insecurity at some point in our lives.
Teach your child that this is normal and that even the direst of debt can be resolved by being willing to speak with others and get help when needed. You have the opportunity to show them how to put this into practice by ‘walking the walk.’ This is the rare situation where that actually happens by ‘talking-the-talk’!
Be honest and open with your children about the power of getting the right advice and how it can change lives for the better.
Perspective: Ellen Rogin
Financial education is a passionate topic for many of us here at National Legal. Admittedly, though, it’s not our pure focus. We are a law firm. We help people #standuptodebt, assert their rights as a debtor, and use legal strategies to solve their debt difficulties.
Ellen Rogin, though, is an expert in financial education.
Here is her TedTalk, where she offers actionable suggestions to help your kids avoid debt.
In Conclusion
By instilling these financial values early on, your children will have a much easier time avoiding debt as they get older. They will know not to fall for the credit card hype, and they’ll come to understand that overspending (and the debt that comes with it) doesn’t need to be a way of life. Instead, encourage them! Be open with them and lead by example, even when it’s tough.
If you’re overwhelmed by debt and need a helping hand, let us lead the way. The compassionate legal team at National Legal Center is ready to guide you to a debt-free future, one step at a time.
Struggling with debt? There ARE options. Request a free consultation today!
Disputing an incorrect charge with a cell phone provider can be frustrating and time-consuming. However, if you follow the steps outlined in this article, you’ll have a much better chance of getting a refund for an incorrect charge on your cell phone bill.
Identifying Errors on Cell Phone Bills
Before you can dispute an incorrect charge with a cell phone provider, you’ll need to identify any errors on your bill.
There are several different types of errors that can appear on a cell phone bill:
random charges from third-party vendors (like those app-store purchases made by your toddler!)
duplicate charges for services or products you used only once
actual billing errors for your cellular service
It’s important to go through your cell phone bills carefully to identify any potential errors so that you have a complete list of all the charges you disagree with.
Additionally, if possible, it’s best to have one or more past bills available. This will help show how long the error has been occurring on your bill and just how much money is at stake with each disputed charge.
Contacting a Cell Phone Provider to Dispute an Error
Once you’ve identified errors on your cell phone bill, it’s time to contact your cell phone provider to dispute the charges.
You can do this by calling the customer service number listed on your monthly statement or in the online user portal for your account. Or, you can email them or send a message through that customer service portal.
To keep frustration low, you might find electronic methods of communication to be best.
If you choose to call customer service, have your bill and a list of disputed charges available to help expedite the process. It can be hard to get someone on the phone, so be prepared for the call. Once you’re speaking with a representative from your cell phone provider, explain which charges on your bill are incorrect and state that you’d like them refunded as soon as possible. They’ll probably request whatever supporting documentation you have, another reason you might want to begin with electronic communication.
If you choose to email or message your cell phone provider, take your time to state your case! Explain the issue and what you’d like them to do about it. Provide copies of your statements with the items of concern highlighted, and give them a total amount that you’d like refunded.
During your call, be sure to keep notes. Things you’ll want to record are:
The date of the call;
Who you spoke with;
What you explained;
Their reasoning for the disputed cell phone charge;
The outcome of the call;
If they agreed to refund you for the incorrect cell phone charge, the amount and method of refund.
Hopefully, this will solve the matter, but it may take more than one round of communication to get to the bottom of things.
Keeping good records will help you in the future if the account goes to a collection agency. It can be alarming if you receive a collection letter for a cellphone bill, but you’ll be well prepared.
Escalating Your Dispute with a Cell Phone Provider
If your cell phone provider still isn’t doing something about the disputed charges after you’ve taken all of the above steps, try escalating things to a higher level.
First, see if you can get an actual person on the phone by calling during off-peak hours when customer service lines are usually less busy. Whether you’re dealing with Verizon, T-Mobile, Boost, AT&T, or others, first thing in the morning tends to be best.
Once you connect with a representative directly, explain that you’ve already done everything they requested, but the charges are still on your bill. Next, ask for help getting in touch with a billing department manager. Depending on the company, a manager may review your bill and resolve concerns quickly.
Consider filing a complaint with the Federal Communications Commission (FCC) if this doesn’t work. Call the FCC toll-free at 888-CALL FCC (888-225-5322) or go online to www.fcc.gov.
Dealing with Past Due Cellphone Bills
Our debt relief law firm has spoken with many people who have past-due cellphone bills. These are often an interesting outlier compared to most other accounts because many of these are behind, not because the person could not repay the debt but because the person felt the charges were incorrect.
When cellphone bills aren’t paid, the provider might send the account to a third-party collection agency to collect on the account. Verizon, AT&T, and T-Mobile have internal processes to collect the debt, but they often send them out to debt collection agencies, too. Likely the largest collector of unpaid cellphone debt is Enhanced Recovery Corporation (ERC).
When an account goes into collections, be it internal or external, you have two main options: dispute the cell phone debt or negotiate a settlement of the cellphone bill.
Disputing Cell Phone Debt with a Collection Agency
When you’re dealing with a collection agency, be it ERC or another company, you’ll want to know that while they aren’t going to be able to confirm or deny any billing errors. However, you do have the ability to dispute the validity of the debt.
Debt collectors must adhere to consumer protection laws, specifically the Fair Debt Collections Practices Act (FDCPA). One provision of this law states that you can dispute the balance or a portion of the balance owed.
Here’s how you can dispute a debt with a collection agency.
Taking that action is one more effort to see the account balance reduced to the proper amount. Once the account balance is corrected, you can repay the past-due cellphone bill in full.
Negotiate a Cellphone Bill Settlement
If disputing the debt is unsuccessful, or you are outside of the timeframe to do so, you can attempt to negotiate the debt instead.
A settlement is when you come to an agreement with a creditor or collection agency to reduce the amount owed. They will usually consider this not based on a disputed charge but due to financial hardship. It can be difficult to “let go” of the inaccurate charges, but if the goal is to pay a fair amount, this may be another avenue to reach that end.
When you call to make the settlement request, be ready to provide them with your financial information. You may be able to negotiate a settlement over several monthly installments versus or with one lump sum payment. You’ll sometimes get a better deal by paying all at once.
Once you reach an agreement, be sure to get a settlement letter that outlines that you are settling the cellphone bill.
The letter should include:
The account number;
How much they claim you owe;
The amount they’ve agreed to accept as settlement;
The date the payment(s) is due.
This letter will protect you in case anyone tries to collect after you pay the settlement.
Getting Legal Help to Resolve Incorrect Cellphone Charges
If you cannot reach an agreement with them that meets your needs, it might be time to contact a debt settlement attorney. A qualified attorney can review your situation and help you decide on the best course of action.
An attorney may be able to work with your cellphone provider, attempt to negotiate a settlement on your behalf, or even file a lawsuit against them if they determine the collection agency has violated your rights.
National Legal Center has helped thousands of people across the country overcome debt and credit issues. Contact us today if you need help figuring out what options are available to resolve your past-due cell phone bills and other accounts.
Complete the form below to #StandUpToDebt today.
Struggling with debt? There ARE options. Request a free consultation today!
Zwicker and Associates, P.C. is a law firm that acts as a debt collector on behalf of creditors and debt buyers.
If you’ve received a summons from Zwicker & Associates, you’re in the right place. Let’s simplify the situation and help you take your next steps.
Who Is Zwicker & Associates?
Zwicker and Associates is a law firm specializing in debt collection.
Their firm is retained by original creditors and debt buyers to collect on past due debts owed by consumers.
They may send debt collection letters and make phone calls to debtors. Because they are a law firm rather than a collection agency, they may also file lawsuits to collect on debts in the states where they have attorneys licensed to practice law.
Contact Information for Zwicker & Associates, P.C.
If you have an account that this law firm is collecting on, it helps to know how to contact them.
Address: 80 Minuteman Rd. Andover, MA 01810
Phone: 1-833-210-5100
Phone: 1-800-370-2251
Fax: 1-978-686-3538
Is Zwicker and Associates Legitimate?
As a consumer rights law firm, we always encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. However, if it truly is a call or letter from Zwicker and Associates, they are indeed a legitimate law firm. In fact, Zwicker & Associates P.C. is among the most well-established debt collection law firms the United States.
Can I be Sued by Zwicker and Associates?
When it comes to debt collection, it is helpful to know what companies can actually file a debt collection lawsuit against you for unpaid bills. To file a lawsuit—or make the decision to retain an outside law firm to file a lawsuit—a company must own the account.
This means that a debt collection agency that is collecting on behalf of a creditor or debt buyer cannot initiate a lawsuit. They do not own the debt, therefore they cannot make the decision to sue the debtor.
An original creditor or debt buyer who owns a debt can file a lawsuit against a debtor directly, or they can retain a law firm (licensed to practice law in the particular state) to pursue collections and file a lawsuit on their behalf.
Can you be sued by Zwicker and Associates?
Yes. They can file a lawsuit if they are retained by the owner of the debt.
What is a Summons and Complaint?
A summons is an official notice of legal proceedings. It is among the first steps in what could become serious legal trouble. It informs you that a lawsuit has been filed against you. The Complaint is delivered with the Summons and provides information such as:
Who is suing you (an original creditor like Discover card or a debt buyer like LVNV Funding);
On what grounds they are suing you;
In the event of defaulted debt, the dollar amount they claim you owe;
The contact information of the lawyers who filed the lawsuit.
If you receive a Summons and a Complaint from Zwicker & Associates, it is vital to consider addressing the matter. Ignoring a summons will often result in a default judgment, which means they win automatically.
Once they have that judgment, they could pursue collecting on the judgment in a few different ways. Depending on the laws of your state, here are a few examples of how they could collect on post-judgment accounts:
garnish wages (take money from your paycheck or other income);
levy a bank account (contact your bank and take money from your checking account), or
place a lien against your home (preventing you from refinancing or having access to your equity until you pay the balance owed on the account).
Of course, it is important to know what they can and cannot do in your state. An attorney can learn about your situation and advise you specifically on what if any risks you actually have.
What Kind of Debt Does Zwicker & Associates Collect?
Zwicker and Associates generally focuses on the consumer debt market— meaning debts owed by individuals rather than businesses.
An original creditor like Discover Financial Services, Citibank, Bank of America, or other lenders may hire them. Or, their law firm may be retained by debt buyers such as Second Round, CACH, or LVNV Funding.
Whether you were served regarding a Discover account, an American Express account, or any other company, the consumer rights attorneys at National Legal Center are here to help.
We can review the summons and complaint that you received and help you understand your risks. Then, if appropriate, we can help settle the debt, respond to the summons, or review other options that might be available.
How Do I Deal with a Debt Collection Law Firm?
If you’re receiving calls or letters from Zwicker & Associates, there are actions you can take to protect your rights as a consumer.
First, read the Attorney’s Guide to Reading A Collection Letter. This free guide will explain the core elements of the letter you received.
Then, determine your next steps.
Are you sure you owe the debt Zwicker & Associates P.C. says you owe?
If not, you might consider disputing the debt. With a bit of research and legwork, you can attempt to do this yourself. However, if you’d like to leave it to a debt attorney familiar with disputing debts, contact our team here at National Legal Center for a free consultation.
If you are sure the debt is valid, can you afford payments to resolve or settle the debt?
Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations. Coming to a reasonable compromise that is affordable long term is crucial. If you make an arrangement and fail to keep up with payments on the account, the deal is lost, and collection activity can resume.
Should you Negotiate a Settlement with Zwicker & Associates?
When you’re facing a debt collection lawsuit from Zwicker & Associates, one option to resolve the matter is by negotiating a settlement.
A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or in a series of monthly payments. The account is resolved in return for paying the settlement, and Zwicker & Associates should not take any further action.
When there is a lawsuit involved, being aware of the timing of the settlement is essential. For example, if the settlement occurs after Zwicker & Associates sent a summons, you’ll want to understand if the court hearing was canceled or if you still should appear in court.
While you can ask the collection agents at Zwicker & Associates these questions, it’s crucial to remember that they are not your attorneys!
Instead, they represent the other party, so it’s a good idea to be skeptical and confirm anything they tell you because their job is to collect the most funds possible on the accounts they handle.
Receiving a summons from Zwicker & Associates is a legal matter. So, it’s a smart idea to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make a mistake.
What Does it Mean When a Debt Collector Threatens Legal Action?
Debt collection lawsuits can be a serious matter.
The threat of litigation, however, may not be.
The hard part is telling the difference between collection agencies making a threat of a lawsuit and collection agents actually intending to pursue litigation.
One provision of the Fair Debt Collection Practices Act (FDCPA) states that debt collection companies may not state that they are going to take any action that they do not actually intend to pursue and have the capacity to pursue.
Okay, but what does that mean?
A debt collector cannot say they will have someone sent to your door with a lawsuit unless they actually intend to have someone come to your door with a summons.
This is where language becomes very important.
Here are two statements that a debt collector might make. In one scenario, the collector is making an empty threat. In the other, they’re gearing up for a lawsuit.
Can you tell which is which?
“If you don’t enter into a monthly payment plan by the end of the month, I may have no choice but to consider sending your file to the attorney for review.”
“If you don’t enter into a monthly payment plan by the end of the month, the attorney is going to take legal action.”
As you can see, the first statement uses vague language, while the second statement is more direct.
“I may,” “review,” “for consideration,” “potential.” These are all words that collection agents will use to cover their bases and keep their collection agency out of trouble. They probably don’t intend to file a lawsuit when they use this language.
If you had a debt collector from Zwicker & Associates say they intend to take legal action, take it seriously. If they used vague, waiver-like language, you might have more time. Zwicker & Associates is a legitimate law firm, though, and you should take the collection activity seriously.
If you understand the regulations surrounding collection agencies and law firms that collect delinquent accounts, it’ll be easier to know if their threat of legal action is real or simply meant as a scare tactic.
National Legal Center negotiates with collection agencies and law firms like Zwicker regularly. Complete this short form to discover options to deal with a summons from Zwicker & Associates P.C. and any other creditors you may have.
If you’re tired of struggling with debt, you’ve got options. Call today and let National Legal help you #standuptodebt once and for all.
Struggling with debt? Use the form below to get in touch with us.
The Fair Debt Collection Practices Act (FDCPA) was enacted in 1977 by the Federal Trade Commission to protect consumers from abusive debt collection practices. It aimed to ensure that people are treated fairly and are not subjected to harassment, threatened, or publicly shamed for their debt.
The FDCPA governs collection agencies. Calls from your credit card company, an original creditor, or other financial companies that issue loans are not subject to these federal rules. However, some state laws offer consumer protection laws that include these financial institutions.
Two rules (issued in October 2020 and December 2020) which address debt collection in today’s world of electronic communication went into effect November 30th, 2021.
Read on to learn where the FDCPA and social media collide and how to protect yourself from debt collection harassment on social media.
Why are debt collection rules changing?
Put into law in 1977, the Fair Debt Collection Practices Act governs what collection agents can and can’t say, as well as the modes of communication. Specifically, it covers communication through phone, mail, and fax. That’s right—paper facsimile was a real mode of communication when the law went into effect!
Fast forward 44 years and updates to the law will now address the advances in technology that have occurred since then.
Among the most notable changes is that collection agencies may now use social media to contact people who owe them money.
Social media has become one of the most popular methods of communication.
It is where we get our news, connect with friends and family, and share our successes and worries. As such, it became a natural medium for debt collectors looking for opportunities to contact people they are trying to collect debts from.
While this may seem an intrusive and unwelcome turn of events, it has passed, and social media is officially open to collectors.
FDCPA Update: What’s changed?
The update to the FDCPA covers several areas and generally focuses on the methods and frequency of communication. However, the spirit of the law remains the same— to ensure consumers are treated fairly.
Much has already been written about the broad changes that have taken place in this FDCPA update. We would point you to a thorough overview of the new rules from resources made available by the National Consumer Law Center and the Consumer Financial Protection Bureau.
Among the most notable updates to the law:
Collection companies must wait seven days to call again after speaking with the debtor.
Debt collectors may now send private social media messages, as well as text messages to collect a past-due debt.
The new rule places restrictions on how and when they can contact consumers to collect on past due accounts.
We’ll be diving in on the other specific provisions of the law in future articles. We’re beginning with the social media component, as that may come as a surprise for consumers.
How do changes to the FDCPA affect your rights as a consumer?
The new provisions in the FDCPA open several ways for collection agencies to contact you.
In addition to calling or sending messages through postal mail and fax, they now have the option to text, email, or send a private message through platforms like Facebook, Twitter, and LinkedIn.
Your rights as a consumer are largely unchanged.
You still have the right to be treated fairly and keep your financial matters personal. In all cases, the collection agent must identify themselves and state that they are attempting to collect a debt. They are not allowed to use obscene, abusive, or threatening language and must comply with the consumer’s request to cease communication.
What should you do if a debt collector contacts you through social media?
If a collector contacts you online, don’t panic! Just like with any communication, you have options.
If our consumer rights law firm already represents you to resolve your debt, you’ll take the same actions as if they were to send a collection letter by sending it in for your legal team to review.
It is always best to have an attorney review any communication from collection agents. Especially as they have new communication methods, there’s a good chance that they may “accidentally on purpose” make a mistake under the presumption of grace with the new rules.
If you are not represented by our law firm for debt matters and a debt collector makes you feel harassed or uncomfortable, our legal team is here and ready to help. A free consultation is your first step.
Included in the new rules is a provision that allows consumers an opt-out option of any method of communication from a collector.
If they call, you can tell them not to call any longer, and the request should be honored. The same rule applies to receiving a message from a debt collector on social media. You can respond by saying that you do not want them to message you on the platform, and they should honor the request.
Remember- asking them to stop contacting you does not make the debt disappear. They may still pursue other collection methods if it is a valid debt. Debt collection lawsuits are very real, and if a collector has no other way to get in touch with you, they may choose to file a lawsuit.
If you aren’t sure of the best way to deal with debt collection calls or messages, complete the form below to request a free consultation with a member of our legal team.
Can a debt collector send me a Facebook message?
Yes, a debt collector can message you through Facebook. The amendments to Regulation F of the FDCPA went into effect on November 30th, 2021. As a result, debt collectors can now communicate with debtors through social media platforms.
The new rule includes an opt-out option that allows you to inform them you do not wish to be contacted through any particular method.
Can a debt collector post publicly about me on Facebook?
No. The new rule of the FDCPA continues to protect consumers from debt collectors making information about a debt publicly available. If a collector has posted publicly about your debt, you may choose to file a claim against the collector and may be awarded damages.
What should I do if a debt collector sends a Facebook message?
When a debt collector contacts you on Facebook, first consider whether or not it is a legitimate debt collector and not a scam. Several concerns are raised by the new rules of the FDCPA. Notably, scam artists now have a new way into victims’ pockets.
Suppose you want to engage the debt collectors and resolve the debt. First, request that they identify themselves. Make sure they are the ones providing information, not the other way around.
Once they provide their name and the name of their company, it’s time to confirm. Consider calling their agency to make sure they are who they say they are and take the conversation to phone calls which are likely to be more secure. Facebook is not the best place to discuss financial matters that involve your Personally Identifiable Information. Even if it takes a bit of extra time and effort, it is better to deal with the debt in a way that keeps you safe.
If you do not believe the debt is valid, you can request that they provide a validation of the debt. The new rules allow you to make that request through any method, so you can even request it right on that message.
If you do not want to engage the debt collectors, you can ignore them or ask that they no longer contact you. This does not resolve the debt or your obligation to pay. Still, you do have the right to opt out of communicating with them through any particular vertical.
What should I do if a debt collector sends a text message?
Just as above, if a debt collector contacts you through a text message, your first step is to determine whether or not you believe the person to be whom they say they are. If you are confident that they are a valid debt collector, you will proceed based on your goals.
Do you want to settle the debt?
Are you prepared to make a payment plan?
Do you need more information to decide if you really owe what they say you owe?
If you are unsure how to proceed, consider learning how a debt settlement attorney can help by contacting us through the form at the bottom of this page.
How to Protect Yourself from Debt Collectors on Social Media
Debt collectors are just now able to contact consumers on social media. However, they have long been familiar with using the platforms to learn about the people they are trying to reach.
Here are several ways to protect yourself from debt collectors on social media.
Keep your pages private.
We all love to celebrate our life-wins with our social networks. New cars, homes, jobs- we share all of life’s successes with our friends and family.
You probably weren’t considering the debt collectors who were zooming in to look at your ID badge to figure out where you work, though, were you?
Every platform has its own (wickedly confusing) set of privacy options and controls. Set your pages to private to ensure you are only celebrating with those who are in your corner.
Limit the Personally Identifiable Information you share.
Whether you choose to keep your social pages private or not, it is still wise to keep your Personally Identifiable Information off of your page. Information such as your phone number, email address, mailing address, and birthday are all gold for debt collectors who are trying to confirm that the profile they are looking at is actually yours.
Don’t accept that random friend request.
We’ve all received the random friend request.
Maybe it’s a super cool person we’d like to befriend, a gorgeous soul-mate, or a business opportunity we can’t miss out on. Is any of that likely to be the case, though?
If you aren’t sure who they are, there’s probably not much to gain by bringing them into your online world.
Don’t post pictures with identifying information.
Less is definitely more when it comes to protecting yourself from debt collectors on social media.
Sharing a picture of your favorite coffee shop you go to each day on your lunch break or your planned trip to visit a family member (who you tag, naturally) is innocent and friendly. However, it can lead a collector to find and call said person or place to anger or embarrass you into calling. No, the collection agent can’t divulge that they are calling to reach you about a debt. Still, you (and possibly the person they’ve called) know what the “personal business matter” they’re calling about is.
This may feel extreme, but debt collectors are smart, resourceful, and trained to locate debtors and get them on the phone. Following the above suggestions of keeping your page private and ignoring random friend requests will allow you a bit less to worry about on this front.
How to Deal With Debt Collection Harassment on Social Media
Suppose you have found yourself in a situation where debt collectors are harassing you. In that case, there are actions you can take to protect yourself.
Keep a record.
While it may seem like an obvious suggestion, it is important to keep good records of whom you have talked to, when, and what was said. This includes recording the social media messages by taking a screenshot or printing the conversation.
Be clear and direct.
If a collector is harassing you, be very clear about what is happening and why it’s not OK with you. Avoid getting pulled into an argument of any kind. Keep a level head and end the conversation. Unlike phone calls, when the communication is electronic, you can’t exactly hang up to end the conversation. However, you can ignore the private messages and return to them later if you choose to do so.
Contact an attorney.
If the debt collector’s behavior becomes too much for you to handle, or if you think they are violating the law in any way, contact an attorney. The consumer advocates at National Legal Center may be able to help you turn the tables to take legal action against the harassing agency and protect your rights.
In Summary
Debt collectors are now able to contact debtors through social media. This is a recent change to the FDCPA that raises a number of concerns for consumers.
First, don’t share personally identifiable information on your social profiles or accept friend requests from strangers. Secondly, keep good records of what a collector says, how often they contact you, as well as their methods for contacting you. Finally, if you feel you are being harassed or need help dealing with your debt, reach out to an attorney to help protect your legal rights.
The consumer advocates at National Legal Center focus on debt collection harassment. If you feel like you are being harassed by debt collectors, please reach out to us for a free consultation. We will help you understand your legal rights and options to #standuptodebt today!
Use the form below to easily get in touch with us.
Debt settlement lawyers are your best friend when you’re deep in debt.
These professionals help with debt negotiation and ensure that creditors know they can’t take advantage of you. We’re going to review:
When you should hire a debt settlement attorney
Why it is a better option than using a debt settlement company
Essential things to consider along the way
Let’s go!
What is a debt settlement attorney?
Debt settlement attorneys have a great understanding of contract law and the power of negotiations. They may directly negotiate on your behalf or have professional non-attorney negotiators who assist them in negotiating your credit card debt.
The team at National Legal Center will review many elements of your financial situation and create a plan of action. They may consider factors like your income, assets, who the creditors are, the state you reside in, and more. Knowledge of consumer rights laws puts attorneys a step ahead of the game in knowing what to look for. For example, they’ll know what a debt collector can and cannot do when collecting on a delinquent account.
When you’re falling behind on your accounts, hiring one of these professionals is the best way to ensure that collectors cannot take advantage of you.
Debt settlement versus bankruptcy
Debt settlement is often the preferred option, particularly when it comes to credit card debt. Many creditors and collection agencies have a history of being willing to settle debt for less than the full amount owed. Given the long-lasting implications of bankruptcy, debt settlements may be the better option.
However, bankruptcy has a place, and sometimes it makes sense.
By speaking with a debt settlement law firm, you’ll be able to get a confident understanding of your options.
Debt settlement & your credit
When you’re trying to settle outstanding debt, the first thing that comes up is how it will affect your credit rating. A debt relief attorney has a good understanding of this and should provide insight into the implications of your options.
Nearly any action you take on your accounts will affect your credit score. The same goes for bankruptcy and debt consolidation, too.
When you cannot make the minimum payments on your credit cards, your credit will be affected. An impact on your score is unavoidable when you fall delinquent, don’t be surprised when you see that happen.
Your credit score is important, and we can help improve your credit report. But, there are more significant issues to tend to first. Above all, you need a way to deal with this unaffordable debt. A plan created by National Legal Center will provide you with a way to deal with all of your debts.
When It’s Time To Call A Debt Settlement Attorney
Even the savviest of DIY’ers will want to know their boundaries. Take replacing your roof, for instance. Sure, you might be able to do it yourself. But, you also might not.
You have to consider the roof, your tools, if you have enough money to buy the materials, the time, and more. There are so many things to consider when replacing a roof. Then, what if it leaks? What if you had the best of intentions, planned as best you could, and used the right tools, yet somewhere along the line, you goofed. Now you have a leaky roof that can potentially cause further damages, possibly even mold.
And that’s with something relatively straightforward compared to negotiating with creditors and collectors!
When you face settlement negotiations, you would be wise to hire professionals to handle the tough stuff. Keep it simple.
The best thing about working with a law firm like National Legal Center? Professionals who have had years of practice dealing with creditors and collection agencies will assist you. They will be able to make sure all the t’s are crossed, and i’s are dotted, so a collector doesn’t try to come back after you in the future.
An attorney can help you navigate the legal complexities that might come up along the way, too. For example, what if you receive a summons? What if a collector offers a great deal, but you don’t have enough money to take the deal? What if the collector says they will not settle? These are the situations that come up regularly when accounts are delinquent on unsecured debt. You’ll be grateful to know who to reach out to for legal advice when these things come up!
Are debt settlement companies less expensive than debt settlement attorneys?
Surprisingly, debt settlement lawyer fees are often comparable in pricing to a debt settlement company.
Even though they generally charge about the same amount, there are so many things that a debt settlement company cannot do for their clients. Because a debt settlement company is not a law firm, they cannot offer legal advice. They cannot provide direct answers to your questions about lawsuits while settling debt. They cannot discuss an account’s statute of limitations. They cannot advise you on limiting your risks to protect yourself in the event of a credit card lawsuit.
The attorney-client relationship is incredibly valuable to consumers. A part of this relationship includes diving a bit deeper than you could with a non-attorney, specifically on your legal risks. Additionally, you receive a level of confidentiality that the attorney-client relationship protects. The level of privacy and legal strategy simply cannot be provided by a debt settlement company. We’ll be upfront and transparent about everything from the tax consequences of the settlement process to the risks and rewards.
So, while debt settlement companies charge about the same as a debt settlement law firm, you get tremendously more value from working with an attorney who can speak to all of these matters.
Okay, now that we’ve covered all the groundwork, on with the show!
It’s Time To Call A Debt Settlement Attorney When…
Your are facing an overwhelming amount of unsecured debt.
Suppose you have 1 or 2 delinquent accounts that are smaller, or your total debts is mostly comprised of medical bills or is under $10,000. In that case, it probably doesn’t make sense to hire an attorney for debt relief. A debt management plan may be more suitable when you need a bit of a helping hand to lower your interest rates or monthly payments. The larger your balances are, the greater your opportunity for savings becomes. When you factor in legal fees and other considerations, it is generally suggested that you only consider hiring a lawyer for debt settlement work if you owe more than $10,000 in unsecured debt.
You know you cannot meet your minimum payments.
If you are making minimum payments each month and are seeing progress, stay the course! We want you to become debt-free with as few drawbacks as possible. An affordable payment plan may take a long time, but traditional repayment will help avoid late fees while you pay the balances you owe.
Are you struggling to make those minimum payments and falling further into crushing debt? Or maybe you received a collection letter with an offer you wished you could take, but just can’t afford it. If so, it’s time to consider all available options for dealing with the situation. You can request help from a lawyer to settle your accounts as a means to pay them down in a more affordable manner.
Pay the entire debt if you can. If you cannot, then speak with a case analyst at National Legal Center who has extensive experience with the options that are available.
You consider bankruptcy for debt relief.
Many of our clients are surprised to learn that they do not need to file bankruptcy to deal with overwhelming debt. There are many options to consider. For example, you may negotiate a settlement, request the collector validate the debt, or take another approach that is the right solution for you.
Are you considering a bankruptcy filing but would prefer to avoid it? If so, this is an excellent time to consider hiring a debt relief attorney. To be confident with whatever decision you choose, it is a good idea to consult with a bankruptcy attorney, too. This way, you can have a complete understanding of your available options.
Our firm employs many attorneys who practice bankruptcy. If not, we know many bankruptcy attorneys who offer a free consultation. We’ll be glad to make the connection.
You are facing a debt collection lawsuit.
Debt collectors make a lot of wild claims. Sometimes it can be hard to tell when they’re trying to scare you and when they really mean business.
Sometimes creditors will file a lawsuit on unsecured debts. Unfortunately, this can sometimes push consumers right into filing bankruptcy prematurely. Let’s face it—lawsuits are scary! You DO have options, though.
If you had to stop making payments on your debt and are facing a debt collection lawsuit, National Legal Center is here to help. We can provide legal information about the risks associated with the lawsuit. Even if you don’t have a lump sum to negotiate with them right now, we are very familiar with settling debts even after they’ve gone to a lawsuit.
It can be easy to focus solely on the lawsuit, but it is essential to remember your other debts, too. We’ll help you create a plan of action to deal with all of your creditors. Time is of the essence with debt collection lawsuits, though, so please connect with us right away to discuss the details of your case.
You’re worried about wage garnishment.
When a creditor obtains a judgment against you, they may attempt to garnish your wages. In addition to wage garnishment, they can also try to levy money from your bank account, place a lien against your real estate, or seize personal assets. If a judgment has been entered against you, don’t ignore it. Speak with the professionals at National Legal to come up with a plan of action to deal with the matter.
Need professional help? Talk to a debt settlement lawyer.
These situations are certainly difficult. There is hope though!
When you’re struggling to keep up with payments, it can be challenging to determine which actions you should take. If you’re wondering “is debt settlement right for me?”, National Legal Center is ready to help. Contact us today at 800-728-5285, or complete the short form on this page for a free consultation. Let’s talk about your debt relief options. We’re ready to help you Stand Up To Debt!
Did you receive a call or letter from Midland Credit Management? Are you wondering who this company is and what they want?
We’ll be glad to fill you in on who they are and give you some tips on dealing with Midland Credit Management, Inc.
Who Is Midland Credit Management?
Midland Credit Management is a debt purchasing company and a debt collection agency. They commonly go by MCM, or use another related entity called Midland Funding. An easy way to think of the relationship is that Midland Funding purchases the debts, and they then place it with Midland Credit Management for collection. The companies are separated for logistical and legal reasons; they are both under the parent company of Encore Capital Group.
Midland Funding (or one of their related entities) purchases large groups of delinquent consumer debts from lenders who have given up hope for recovery themselves. Then, MCM attempts to collect on those past-due accounts with persistence until the debt has been resolved.
They have a few other names under their umbrella. When you have a debt that has been purchased by Midland or Midland Funding, you may also see Encore Capital Group or Atlantic Credit and Finance. With all of these companies intertwined, it can get a bit tricky. Since most of their collection activity is completed by Midland Credit Management, we’ll mostly use that for the remainder of this post. Given the number of entities involved, it may not be a surprise to learn that Midland Credit Management is one of the largest debt collection companies in the country.
Is Midland Credit Management Legitimate?
As a consumer rights law firm, we always encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. However, if it truly is a call or letter from Midland Credit Management, they are indeed a legitimate debt buyer and collector. MCM is one of the largest debt buyers and collection agencies in America.
What Kind of Debt Does Midland Credit Management Collect?
MCM tends to focus on the consumer debt market, meaning debts owed by individuals rather than by businesses. They generally purchase delinquent consumer debt from consumer-focused lenders like credit card companies, auto loan lenders, and cellphone providers.
How Do I Deal With Midland Credit Management?
If you’re receiving calls or letters from Midland Credit Management, there are actions you can take and rights that protect you as a consumer in debt. First, read the Attorney’s Guide to Reading A Collection Letter. This will explain the core elements of the letter you received.
Then, determine your next steps.
Are you sure you owe the debt to MCM? If not, you might consider disputing the debt. With a bit of research and legwork, you can attempt to do this on your own. If you’d like to leave it to a debt attorney familiar with disputing debts, contact our team here at National Legal Center.
If you are sure the debt is valid, can you afford payments to resolve or settle the debt? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.
National Legal Center negotiates with companies like MCM daily. Complete this short form to discover options to deal with Midland Credit Management and any other creditors you may have.
If you’re tired of struggling with debt, you’ve got options. Call today and let National Legal help you #standuptodebt once and for all.
An Attorney’s Guide to Reading a Collection Letter
Collection letters are a scary thing for most people. So, we’re bringing you a debt relief attorney’s guide to reading a collection letter. They can be intimidating and confusing to read, but not if you follow these simple steps! Once you understand what the creditor wants from you, you’ll be ready to #standuptodebt with confidence.
We’re diving in deep to show you exactly how to read a collection letter from start to finish.
Have a specific item you’re curious about?
Follow these quick-links to the attorney’s guide to reading a collection letter to get you right to your answer.
Let’s begin the attorney’s guide to reading a debt collection letter by looking at:
What Does “Current Owner” Mean on a Collection Letter?
When you first look at a collection letter, you’ll notice a few things. Near the top you’ll usually see details about the account. This may include:
whom you owe
how much the claim you owe
who the current creditor or dent owner is
reference number
invoice numbers
the mailing address of the debt collection agency
First, we’ll dive in on the “current owner” portion of the details section. This may also appear as a “current creditor.” The terms can be used interchangeably.
What is a Current Owner or a Current Creditor?
If you have received a collection letter and are left asking yourself:
“What is a Current Owner/Creditor”
“Who is Midland Credit Management?”
“Who is Portfolio Recovery Associates?”
“Who is LVNV Funding?”
Or if you have some other company you’ve never heard of saying you owe them money—read on!
Who are these companies?
How could there be anything but the original creditor involved here?
Understanding the players involved will help you make informed decisions. In addition to understanding what a current owner is, we’ll also address how to know if you are dealing with a reputable company.
What is an Original Lender?
Before we jump into the current owner, let’s start from the beginning. The attorney’s guide to reading a collection letter is intended to be thorough, after all!
Among those details found near the top of a collection letter will usually be a reference to the original lender. The collection letter may also refer to the “creditor,” “lender,” or similar. Simply put, this is the company that you owed money to. This is the financial institution that initially issued the credit card, loan, or line of credit.
Examples include big banks such as Bank of America, Chase, or Discover, smaller local community banks and credit unions, and other lenders.
What is a Current Owner?
When someone falls behind on a debt, the account is considered “delinquent” or “in default.” A debt that falls behind goes through a rather expected lifecycle of delinquent debt.
One part of the lifecycle of delinquent debt is that the account may eventually be sold to a debt buyer. These are companies that purchase an inventory of delinquent debt for less than the total amount owed across all accounts. A lot less, according to the Federal Trade Commission.
Once they have purchased your debt, this debt buyer is now the owner of your account. Their goal is to collect as much as they can, on as many accounts as possible, to maximize their profit.
This company, the debt buyer who purchased your debt from the original creditor, is the “current owner” of the account. They have received the rights to the debt and can now pursue collections. They can attempt to collect directly, or they too can hire a third-party collection agency to collect on the debt.
Are They Legitimate?
If there is one thing the attorney’s guide to reading a collection letter wants to deliver, it is peace of mind. If you ever receive a letter from a company that is unfamiliar to you demanding money, pause! There are tons of scams out there, and they love to target vulnerable individuals.
If you have had debt trouble in the past, your debt may have been sold to a debt buyer. If the information regarding the debt is familiar to you, and you had trouble in the past, take it seriously, but confirm their credibility before paying.
If you are not familiar with the debt, or are not confident that this is a legitimate company attempting to collect on a legitimate debt, you have rights. You can research the company with a bit of online research. A bad BBB rating doesn’t mean they are illegitimate. Honestly, that is a bit expected for their industry.
Note that some types of debts, such as personal loans and payday loans, do have a higher tendency to attract scam artists. If this is the type of debt that the supposed collector is trying to collect, be extra wary.
Next in the Attorney’s Guide to Reading a Collection Letter:
What Does “Charge-Off” Mean on a Collection Letter?
Next, we’ll move on to another phrase often found when you read a collection letter.
Many collection letters will include the term “charge-off.”
Like credit reports, collection letters are full of terms that mean something other than what you might assume. Of all the odd terms found on collection letters, this one likely raises the most questions from clients receiving our debt resolution service.
So, what does “charge-off” mean on a collection letter?
Is it as bad as the collection letter makes it out to be?
Let’s take a look at that and also consider different perspectives based on your unique goals.
What Prompts it, and When?
The only time an account will charge off is if payments are delinquent.
Even if you are making partial payments, the creditor may charge off the account. Therefore, you need to make the minimum payment to avoid falling behind.
A charge-off will generally occur after about 180 days of non-payment. There may be some variation based on the type of debt, according to the FDIC. It can sometimes happen as early as 120 days after missing the first payment, but the 180-day mark is the normal timeframe for credit cards.
The Credit Bureau’s Perspective
Let’s start by looking at the way Experian defines it.
According to Experian, “Charge off” means that the credit grantor wrote your account off of their receivables as a loss, and it is closed to future charges. When an account displays a status of “charge off,” it means the account is closed to future use, although the debt is still owed.”
As you can see, this refers more to the creditor than the debtor.
Yes, a charge-off is considered a negative remark on a credit report. And, yes, it can affect the way the debt is collected. However, it more has to do with a creditor’s internal accounting.
Probably one of the most critical points their definition makes is that the debt is still owed.
The Collection Definition
Collection letters will often make statements such as “if you do not make arrangements to repay this debt, it may result in the account being charged off….”
They intend for this to sound scary.
It should come as no surprise that a collector will do whatever they legally can to collect on a past-due debt. Turning an accounting term into a scare tactic is just another example of how they tend to operate.
It can help to know that this is a normal part of the collection process.
That is worth repeating.
A charge-off is a normal part of the collection process.
In many cases, a charge-off can be helpful because the lender or any third-party debt collector that may become involved may be more willing to make a deal to resolve the debt.
Further, among the most helpful benefits of a charge-off is that it prevents late fees from continuing to accrue on the account. It may go without saying that this can be incredibly helpful when trying to get out of debt.
Friend or Foe?
So, what is the real takeaway here?
Most people think of charge-offs in a very negative sense. Sure, it is a negative remark on a credit report. In all reality, though, it is more of a ‘matter-of-fact’ occurrence. By the time you have an account that reaches this point, it is probably no surprise that the debt is behind.
That is the real issue- the delinquency. Making a single payment to prevent that charge off is just a band-aid. You’ll still have the same struggle to deal with next month or on another account.
Rather than viewing the reference to a charge-off as a call to take action on that particular account, use it as a jumping-off point to work on bettering your entire financial situation.
Rather than attempting to prevent (or, more likely, delay) a single account from charging off, you will be better off making a plan to resolve all of your debts.
Easier Said Than Done?
Dealing with trouble debt and credit is hard. But, you don’t have to go it alone. We will lend a few suggestions, but always consider your unique big-picture to determine the best steps to reach your goals.
If you’ve just recently fallen behind, consider working with a reputable non-profit credit counseling agency. They can help you create a budget and make a plan to repay all of your debts.
We don’t want you just to read the attorney’s guide to reading a collection letter. We want you to take action.
If you are at the point of seeing your accounts charge off, you need a solution. This is an urgent situation, and you’ll want to create a plan of action to deal with the charge-off. The legal team at National Legal Center can assist you in doing exactly that.
One of the biggest focuses of the Attorney’s Guide to Reading a Collection Letter:
What Does ‘You have 30 days to dispute the validity of this debt’ Mean?
Collection letters come in all shapes and sizes.
They’re full of scary language and fine print. Or, maybe they say they’re on your side and want to be your friend. They may say the balance is due in full right away or that you must call their office to take advantage of some great offer. Sometimes they even have an entire second page with nothing but disclosures.
One of those disclosures, in particular, is very common. It usually accompanies the first letter a company sends after acquiring an account. This disclosure reads: “You have 30 days to dispute the validity of this debt.”
What does it mean?
What happens after 30 days?
Why are they giving that deadline?
What if you don’t do whatever it is they’re saying to do?
We’re going to dive in on all that and more.
This information is not just for clients enrolled in our Debt Resolution Legal Services but for anyone who needs to know how to read a debt collection letter. It shouldn’t take a legal degree to understand your consumer rights. We’re here to break it down for you so you can #standuptodebt, once and for all.
A Notice Of Your Rights
The first thing to know is that this is not a scare tactic.
People are sometimes concerned after reading this particular disclosure. They think that if they do not do this “thing,” they might be sued or face some other consequence.
The disclosure: “You have 30 days to dispute the validity of this debt.” is informing you of a right afforded to you under the Fair Debt Collections Practices Act (FDCPA). The wording may sound a bit doom-and-gloom because of that 30-day “deadline” that it seems to express. However, it is meant to help you!
Legal-Speak
According to the Federal Trade Commission, the particular provision of the FDCPA extending the right to dispute the validity of the debt is:
If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
Yes. That is quite a run-on sentence.
Real Talk
This disclosure explains that under the FDCPA, you have the right as a person in debt to essentially say “this is not mine,” “I don’t believe I owe this,” or “that balance is not correct.”
If you do that within 30 days from the date you receive the collection letter, the collector should stop collecting until they validate the debt. That means they are not supposed to call, email, send letters or pursue other means of collection until they have provided you—the debtor— with proof of the debt.
There is so much upside there. Validating a debt can be a powerful tool for a person in debt, which is why it is one that debt settlement attorneys often use.
The Window Closes… Sort Of
Everything seems to center around this 30-day timeframe.
So, what happens after 30 days?
According to the Consumer Financial Protection Bureau, you can lose important rights if you do not act within the allotted time. Our experience shows that many reputable collection agencies and debt collectors will choose to stop collecting until they’ve provided validation of the debt, even if it is after the 30-day timeframe. However, as the CFPB points out, they are not likely under a legal obligation to do so.
It is always best to act within the timeframe specified under the FDCPA. However, if you do not believe the debt is valid, it may be worth disputing even if that window seems to have closed.
When To Send A Debt Validation Letter
The purpose of this provision of the FDCPA is to allow consumers to set the record straight. If you are receiving collection notices about a debt you don’t owe, this is your first chance to put it to rest. However, this right is not meant to get you out of debt that you legitimately owe.
Be mindful when disputing a debt- it could work against you.
The particular details of your situation will determine whether or not you should consider disputing a debt. For example, if you really do owe the debt, and you know you owe it, it may not be worth making the collector jump through the hoop of validating the debt.
Responding to their letter confirms a few things for them.
you are alive
they have the correct address
you are aware of the debt
the debt is bothering you
In addition to the information above, you have also forced them to gather statements and other documentation they may not have had to get. You’ve prompted them to put energy and expense into your debt.
Many of the documents needed to validate the debt also happen to be the same ones that assist a collector in filing a lawsuit to collect the debt.
So, again, be mindful.
What To Write In A Debt Validation Letter
The specific language one should use when writing a debt validation letter is specific to the details of the situation.
For example, our debt relief attorneys may send one letter when a balance seems different from what the client believes they owe. For example, we might send a different letter for a client who believes the debt was not theirs at all.
The CFPB provides several sample letters that can be quite useful.
If you are taking the time to write a letter to a collector, you might expect some sort of response. Per the FDCPA, their only requirement is to stop collecting until they can validate the debt. Assuming this is within that 30-day window, of course.
In some instances, they will send a letter confirming receipt of your request for debt validation. Beyond that, they should top collecting or send what they believe is proof.
A full validation will likely include credit card statements, a signed contract, and other documents to the effect.
Sometimes, they will send a haphazard letter or explanation claiming the debt is valid without giving much “proof.” In instances like this, our attorneys will often engage them through several rounds of communication. They may explain why they don’t believe the validation was accurate or thorough, among other approaches.
And sometimes, the collectors won’t respond at all.
They may genuinely cease collecting on the debt, conceding that they cannot prove that it is valid. In some instances, they may even send a letter confirming that they could not obtain appropriate documentation and will discontinue collecting the debt.
Well, What is a Debtor to Do?
As is so often the case, it depends.
Debt matters are so situational that attempting to provide a cookie-cutter response would be a disservice to you and a risk to your financial future.
Before sending a letter on your own:
Arm yourself with all the information you can.
Read more.
Review example letters.
Make sure you understand the specifics of your debt situation and how aggressive or consumer-friendly the collecting entity is.
Each item should help you decide whether or not to take action after reading that now not-so-scary disclosure- “You have 30 days to dispute the validity of this debt.”
Last, but not least, in the Attorney’s Guide to Reading a Collection Letter:
What Does ‘The law limits how long you can be sued on this debt’ Mean on a Collection Letter?
Sometimes it can be hard to tell what a collection letter is really trying to say. For example, is the collector sharing a notice that they are required to share by law? Or are they trying to frighten the reader into making a payment?
If you have ever come across the phrase “The law limits how long you can be sued on a debt” on a collection letter, it is crucial that you understand the meaning. This one sentence may entirely change the way you choose to deal with the account.
Simple Notice or Scare Tactic?
When this disclosure appears on a collection letter, it is most assuredly not a scare tactic.
It can be alarming to see any phrasing that refers to being sued, which sends many people into a bit of a panic. In this situation, though, the entire sentence and context is very important. They are explaining that they cannot, or will not, sue you because of how long the debt has gone unpaid.
So, this is a win!
Eliminating this risk takes away one of the biggest concerns of debt falling delinquent.
In some places, law dictates that collection agencies and other collecting entities tell debtors that they cannot sue them. This crucial factor allows the consumer to make informed decisions on how to deal with the debt.
The paragraph may include other vital points for you to be aware of. For example, they may also explain situations where they can regain the option to take legal action, such as when the debtor agrees to make a payment. So, be sure to read the letter closely. Sometimes it helps you understand what not to do!
What is a Statute of Limitations?
A statute of limitations is how long a person or entity has to take legal action against another person or entity for a grievance.
Statutes of limitations apply to many different situations. For example, it can come into play in criminal, corporate, or civil matters.
Generally, a collector will not sue on a debt that has passed the statute of limitations. However, there are times when they may still do so. When that happens, they may be unaware of the passing of the limitation, or they may be hoping that the consumer isn’t aware of their legal rights.
Suppose someone is sued after the statute of limitations has passed. In that case, the debtor then has a solid legal defense should a creditor take legal action against the individual.
State Laws Regarding Debt Collection
Regarding debt collection, some laws are established under federal laws, and others under state laws. For example, the FDCPA (Fair Debt Collection Practices Act) is established under federal law, whereas individual states determine the statute of limitations applicable under civil contract law.
Each state dictates its own statute of limitations regarding debt litigation. While the time frame generally falls around 5-6 years, there is a great deal of nuance from one state to the next and one type of debt to the next. For this reason, it is essential to review this legal matter with a debt attorney who is familiar with the laws of your state.
Examples of the nuance that often come up which can complicate the interpretation of the statute of limitations on a collection letter are:
Did you move to a different state than when you opened the account?
What state law did the original agreement say it would use?
Has there ever been a lawsuit filed on this account before?
Was this a revolving line of credit, like a credit card, an installment loan, or some other type of debt?
Was there a co-borrower on the account?
Did you agree to make a payment after initially falling behind?
Did you actually make a payment after initially falling behind?
In some locations, did you acknowledge that yes, you owe that debt in writing?
These are just a few examples of facts to consider when determining what it means when you see “The law limits how long you can be sued on a debt” on a collection letter.
There is a good chance that seeing that language on a collection letter means the collector should not file a lawsuit. However, it is imperative to speak with a licensed debt attorney to be sure. They will be able to help you interpret the document correctly and guide you on the next steps.
What Starts The Clock?
In many jurisdictions, the account starts counting down toward the statute of limitation when the last transaction occurred. That, of course, does leave plenty of gray area, which is why it is best to err on the side of caution.
Reviewing your credit report can help you identify the date the creditor reported to the credit bureaus as the last payment date, as well as when the account charged off.
Continued Implications
When you see “The law limits how long you can be sued on a debt” on a collection letter, a deep sigh of relief is warranted! This is because the legal risks on the account are likely much less when that statute has passed.
While this is wonderful news, it also helps to know that there are continued implications to having the debt remain outstanding.
Credit Report
When an account is delinquent, it will be reported to the credit bureaus as being behind. The statute of limitations does not have any tie to how long an account appears on your credit report.
Accounts generally remain on credit reports for seven years from the initial delinquency. So, even if you live in a state with a short statute—say three years—it will likely continue to appear in your credit report until the end of that seven-year time frame.
Collection Activity
In addition to appearing on your credit report, you may still experience collection activity on the account. Even if the collector cannot sue, they can call and send letters as long as they wish, up until you tell each new collector to stop in writing. An entire subset of the debt purchasing industry focuses on purchasing debt long past the statute of limitations.
If they continue calling and sending letters, your risks are not likely to change as long as you do not do something that resets the statute of limitations. Some ways you can unintentionally do this are by making a payment or even just a promise to make a payment on the debt in some states.
Speaking with a debt attorney will help you understand how to handle ongoing collection activity on post-statute accounts. In fact, several laws govern the collection of this kind of debt. Suppose they are not adhering to these regulations. In that case, you may be able to take action against them, possibly leading to your receiving money from the collector.
Financing Hurdles
If you are in the market for a home or a mortgage refinance, the debt may pose a hurdle to you. Sometimes they will require the borrower to resolve the debt even if it is past the statute of limitations.
You may have the option of settling the debt, or they may require that you pay the balance in full to complete the financing.
What to Do
Now that you understand what it means to see “The law limits how long you can be sued on a debt” on a collection letter, what’s next?
Sometimes inaction is the best strategy.
Suppose you confirm that the account is truly past the statute of limitations, congratulations! Aside from a pesky remark on your credit report and occasional letters or calls, you are not likely to have much more trouble with this account. Even if the account isn’t actually past the statute of limitations, save the letter. If the same collector later files suit you can produce that in court to show why the case should be dismissed, because you relied on their assertion.
Given that this is a state law with quite a bit of nuance, we suggest speaking with a debt attorney familiar with your state laws to ensure correct interpretation of the letter. The legal professionals at National Legal Center are glad to discuss your available options to help you move forward with confidence.
An Attorney’s Guide To Reading a Collection Letter
While we hope that this information and the resources provided are helpful and maybe even actionable, we do not want you to take it as legal advice.
If you have received a collection letter, don’t panic!
This is a letter. You can take your time to read it carefully and understand what you are being asked to do. And you should.
If you have any questions, please submit a request for a consultation or call our office. We can help read through the collection letter you’ve received. Become confident as you navigate the collections process with a law firm by your side. Reach out so we can stand up to debt, together!
In a world where financial literacy is becoming increasingly important, employers are presented with an opportunity to help their employees.
The financial problems of employees can have a huge impact on their job performance. National Legal Center provides education regarding credit and debt law as a no-cost employee benefit. Together, we can #standuptodebt, improve financial literacy among your workforce and increase productivity along the way.
Do you know how far-reaching financial stress is for your employees?
Here are 6 Reasons employers should empower their employees with credit and financial literacy.
The financial problems of your staff are not just their problem. Financial stress creates a ripple effect that impacts the entire organization. Helping them improve financial literacy is an investment in improving overall business efficiency and success.
You will improve both engagement and productivity in the workplace. Research has shown that financial literacy training can improve both engagement and productivity in the workplace.
Increased morale among your team. Financial education programs increase job satisfaction because they know their employer helped relieve their financial stress. Higher morale leads to higher productivity. Therefore, employers who provide financial education for their employees will experience increased employee success and job satisfaction.
You’ll reduce turnover when you show genuine care for your employees. Employees with financial stress are more likely to leave their jobs. Lowering their financial stress can significantly reduce the cost of your talent acquisition and time invested in training.
Reduced stress helps their overall health. Employees who report financial stress are more likely to have high blood pressure, ulcers, and insomnia.
You’ll show you are vested in the people who are vested in your organization. It is challenging for anyone to thrive when they’re stressed about money. Employers should want their team to be well, both on and off the job.
Providing financial education for employees will save them money and improve your overall company culture. In addition, financial literacy training can lead to significant savings in many areas. Potential outcomes are improved debt management, reduced credit card interest and loan fees, better use of employer discounts, increased benefits from 401Ks and IRAs, and lower tax rates.
National Legal Center provides education regarding credit and debt law as a no-cost employee benefit. Together, we can #standuptodebt and improve financial literacy among your workforce and increase productivity along the way. To learn more about bringing this no-cost benefit to your team, head over to www.nationallegal.com/groupbenefits to request information. We’ll be happy to chat with you!
Sometimes it can be hard to tell what a collection letter is really trying to say. For example, is the collector sharing a notice that they are required to share by law? Or are they trying to frighten the reader into making a payment?
Today, we’ll review one of those phrases.
If you have ever come across the phrase “The law limits how long you can be sued on a debt” on a collection letter, it is crucial that you understand the meaning. This one sentence may entirely change the way you choose to deal with the account.
Simple Notice or Scare Tactic?
When this disclosure appears on a collection letter, it is most assuredly not a scare tactic.
It can be alarming to see any phrasing that refers to being sued, which sends many people into a bit of a panic. In this situation, though, the entire sentence and context is very important. They are explaining that they cannot, or will not, sue you because of how long the debt has gone unpaid.
So, this is a win!
Eliminating this risk takes away one of the biggest concerns of debt falling delinquent.
In some places, law dictates that collection agencies and other collecting entities tell debtors that they cannot sue them. This crucial factor allows the consumer to make informed decisions on how to deal with the debt.
The paragraph may include other vital points for you to be aware of. For example, they may also explain situations where they can regain the option to take legal action, such as when the debtor agrees to make a payment. So, be sure to read the letter closely. Sometimes it helps you understand what not to do!
What is a Statute of Limitations?
A statute of limitations is how long a person or entity has to take legal action against another person or entity for a grievance.
Statutes of limitations apply to many different situations. For example, it can come into play in criminal, corporate, or civil matters.
Generally, a collector will not sue on a debt that has passed the statute of limitations. However, there are times when they may still do so. When that happens, they may be unaware of the passing of the limitation, or they may be hoping that the consumer isn’t aware of their legal rights.
Suppose someone is sued after the statute of limitations has passed. In that case, the debtor then has a solid legal defense should a creditor take legal action against the individual.
State Laws Regarding Debt Collection
Regarding debt collection, some laws are established under federal laws, and others under state laws. For example, the FDCPA (Fair Debt Collection Practices Act) is established under federal law, whereas individual states determine the statute of limitations applicable under civil contract law.
Each state dictates its own statute of limitations regarding debt litigation. While the time frame generally falls around 5-6 years, there is a great deal of nuance from one state to the next and one type of debt to the next. For this reason, it is essential to review this legal matter with a debt attorney who is familiar with the laws of your state.
Examples of the nuance that often come up which can complicate the interpretation of the statute of limitations on a collection letter are:
Did you move to a different state than when you opened the account?
What state law did the original agreement say it would use?
Has there ever been a lawsuit filed on this account before?
Was this a revolving line of credit, like a credit card, an installment loan, or some other type of debt?
Was there a co-borrower on the account?
Did you agree to make a payment after initially falling behind?
Did you actually make a payment after initially falling behind?
In some locations, did you acknowledge that yes, you owe that debt in writing?
These are just a few examples of facts to consider when determining what it means when you see “The law limits how long you can be sued on a debt” on a collection letter.
There is a good chance that seeing that language on a collection letter means the collector should not file a lawsuit. However, it is imperative to speak with a licensed debt attorney to be sure. They will be able to help you interpret the document correctly and guide you on the next steps.
What Starts The Clock?
In many jurisdictions, the account starts counting down toward the statute of limitation when the last transaction occurred. That, of course, does leave plenty of gray area, which is why it is best to err on the side of caution.
Reviewing your credit report can help you identify the date the creditor reported to the credit bureaus as the last payment date, as well as when the account charged off.
Continued Implications
When you see “The law limits how long you can be sued on a debt” on a collection letter, a deep sigh of relief is warranted! This is because the legal risks on the account are likely much less when that statute has passed.
While this is wonderful news, it also helps to know that there are continued implications to having the debt remain outstanding.
Credit Report
When an account is delinquent, it will be reported to the credit bureaus as being behind. The statute of limitations does not have any tie to how long an account appears on your credit report.
Accounts generally remain on credit reports for seven years from the initial delinquency. So, even if you live in a state with a short statute—say three years—it will likely continue to appear in your credit report until the end of that seven-year time frame.
Collection Activity
In addition to appearing on your credit report, you may still experience collection activity on the account. Even if the collector cannot sue, they can call and send letters as long as they wish, up until you tell each new collector to stop in writing. An entire subset of the debt purchasing industry focuses on purchasing debt long past the statute of limitations.
If they continue calling and sending letters, your risks are not likely to change as long as you do not do something that resets the statute of limitations. Some ways you can unintentionally do this are by making a payment or even just a promise to make a payment on the debt in some states.
Speaking with a debt attorney will help you understand how to handle ongoing collection activity on post-statute accounts. In fact, several laws govern the collection of this kind of debt. Suppose they are not adhering to these regulations. In that case, you may be able to take action against them, possibly leading to your receiving money from the collector.
Financing Hurdles
If you are in the market for a home or a mortgage refinance, the debt may pose a hurdle to you. Sometimes they will require the borrower to resolve the debt even if it is past the statute of limitations.
You may have the option of settling the debt, or they may require that you pay the balance in full to complete the financing.
What to Do
Now that you understand what it means to see “The law limits how long you can be sued on a debt” on a collection letter, what’s next?
Sometimes inaction is the best strategy.
Suppose you confirm that the account is truly past the statute of limitations, congratulations! Aside from a pesky remark on your credit report and occasional letters or calls, you are not likely to have much more trouble with this account. Even if the account isn’t actually past the statute of limitations, save the letter. If the same collector later files suit you can produce that in court to show why the case should be dismissed, because you relied on their assertion.
Given that this is a state law with quite a bit of nuance, we suggest speaking with a debt attorney familiar with your state laws to ensure correct interpretation of the letter. The legal professionals at National Legal Center are glad to discuss your available options to help you move forward with confidence.
What Does “Current Owner” Mean on a Collection Letter? What is a Current Owner?
Continuing our series on how to read a collection letter, we’ll answer the question: “What does “current owner” mean on a collection letter?”
If you have received a collection letter and are left asking yourself:
“Who is Midland Credit Management?”
“Who is Portfolio Recovery Associates?”
“Who is LVNV Funding?”
Or have some other company you’ve never heard of saying you owe them money—read on!
Who are these companies?
How could there be anything but the original lender involved here?
Understanding the players involved will help you make informed decisions. Today, we’ll review how to deal with a collection letter and how to know if you are dealing with a reputable company.
What is an Original Lender?
Before we jump into the current owner, let’s start from the beginning.
Often found near the top of a collection letter is a bit of general information. Among these can be your name, the original lender, the balance, the account number, and sometimes a reference or file number.
We’ll begin by looking at the original lender. The collection letter may also refer to the “creditor,” “lender,” or something similar. Simply put, this is the company that you owed money to. This is the financial institution that initially issued the credit card, loan, or line of credit.
Examples can include big banks such as Bank of America, Chase, or Discover, smaller local community banks and credit unions, and other lenders.
What is a Current Owner?
When someone falls behind on a debt, the account is considered “delinquent” or “in default.” A debt that has gone behind goes through a rather expected lifecycle of delinquent debt, which you can learn more about here.
A part of the lifecycle of delinquent debt will often lead to the account being sold to a debt buyer. These are companies that purchase an inventory of delinquent debt for less than the total amount owed across all of the accounts.
A lot less, according to the Federal Trade Commission.
Once they have purchased your debt, this debt buyer is now the owner of your account. Their goal is to collect as much as they can, on as many accounts as possible, to maximize their profit.
This company, the debt buyer who purchased your debt from the original creditor, is the “current owner” of the account.
They have received the rights to the debt and can now pursue collections. They can attempt to collect directly, or they too can hire a third-party collection agency to collect on the debt.
Are They Legitimate?
If ever you receive a letter from a company that is unfamiliar to you demanding money, pause!
There are tons of scams out there, and they love to target vulnerable individuals.
If you have had debt trouble in the past, your debt may have been sold to a debt buyer. If the information regarding the debt is familiar to you, and you had trouble in the past, take it seriously, but confirm their credibility before paying.
If you are not familiar with the debt, or if there is not enough to leave you confident that this is a legitimate company attempting to collect on a legitimate debt, you do have rights. You can research the company with a bit of online research. A bad BBB rating doesn’t mean they are illegitimate. It is a bit expected for their industry.
Note that some types of debts, such as personal loans and payday loans, do have a higher tendency to attract scam artists. If this is the type of debt that the supposed collector is trying to collect, be extra wary.
If you still aren’t convinced, consider disputing the validity of the debt. You can do this on your own or with the help of an experienced attorney like you can find at National Legal Center.
If you need help, we welcome you to reach out to our team to discuss how to deal with a collection letter and debt you may have. Our legal team and debt settlement attorneys can help you understand your rights and options so you can #standuptodebt once and for all.
