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Year-To-Date FDCPA Lawsuits Increase 54%
November 12, 2009
Source: Collections&Credit Risk
The number of Fair Debt Collection Practices Act (FDCPA) lawsuits filed during the first 10 months of the year increased 53.9% compared with the same period in 2008. This year's total is 108.2% higher than in 2007.
More than 6,600 FDCPA lawsuits were filed this year in the United States, compared with 4,314 last year and 3,189 in 2007, according to WebRecon LLC, a Grand Rapids, Mich.-based research firm.
Telephone Consumer Protection Act (TCPA) lawsuits filed January through October of this year totaled 22, a 69.2% increase from 13 in 2008. Conversely, the number of Fair Credit Reporting Act (FCRA) cases has declined to 994 this year from 1,021 last year, and from 1,192 in 2007.
The total of unique plaintiffs involved with these cases increased to 7,346 this year from 5,300 in 2008, and from 4,254 two years ago.
"There is a less dramatic spike in the number of unique plaintiffs, which implies significantly more consumers filing multiple lawsuits than before," Jack Gordon, WebRecon's CEO, tells Collections & Credit Risk. "In 2009, there was almost a 39% spike in unique consumers filing over 2008, compared to a 24.5% increase the year before."
The number of unique defendants totaled 5,073 in the first 10 months of this year, compared with 4,636 last year and 4,422 in the same period of 2007.
"The increase in defendants seems to be relatively stagnant, increasing only nominally from year to year – just under 10% this year and just under 5% the year before," Gordon says. "I believe you can attribute this to the fact that there are only so many attractive targets out there and consumer attorneys are going after the deepest pockets."
http://www.paymentssource.com/asset/article/2707991/year-to-date-fdcpa-lawsuits-increase-54.html
KNOW YOUR RIGHTS UNDER FEDERAL LAW:
Debt Collection FAQs: A Guide for Consumers
If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.
Here are some questions and answers about your rights under the Act.
What types of debts are covered?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:
Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.
Can a debt collector keep contacting me if I don’t think I owe any money?
If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren’t; or
indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
you will be arrested if you don’t pay your debt;
they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
Debt collectors may not:
give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn’t; or
use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
November 12, 2009
Source: Collections&Credit Risk
The number of Fair Debt Collection Practices Act (FDCPA) lawsuits filed during the first 10 months of the year increased 53.9% compared with the same period in 2008. This year's total is 108.2% higher than in 2007.
More than 6,600 FDCPA lawsuits were filed this year in the United States, compared with 4,314 last year and 3,189 in 2007, according to WebRecon LLC, a Grand Rapids, Mich.-based research firm.
Telephone Consumer Protection Act (TCPA) lawsuits filed January through October of this year totaled 22, a 69.2% increase from 13 in 2008. Conversely, the number of Fair Credit Reporting Act (FCRA) cases has declined to 994 this year from 1,021 last year, and from 1,192 in 2007.
The total of unique plaintiffs involved with these cases increased to 7,346 this year from 5,300 in 2008, and from 4,254 two years ago.
"There is a less dramatic spike in the number of unique plaintiffs, which implies significantly more consumers filing multiple lawsuits than before," Jack Gordon, WebRecon's CEO, tells Collections & Credit Risk. "In 2009, there was almost a 39% spike in unique consumers filing over 2008, compared to a 24.5% increase the year before."
The number of unique defendants totaled 5,073 in the first 10 months of this year, compared with 4,636 last year and 4,422 in the same period of 2007.
"The increase in defendants seems to be relatively stagnant, increasing only nominally from year to year – just under 10% this year and just under 5% the year before," Gordon says. "I believe you can attribute this to the fact that there are only so many attractive targets out there and consumer attorneys are going after the deepest pockets."
http://www.paymentssource.com/asset/article/2707991/year-to-date-fdcpa-lawsuits-increase-54.html
KNOW YOUR RIGHTS UNDER FEDERAL LAW:
Debt Collection FAQs: A Guide for Consumers
If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.
Here are some questions and answers about your rights under the Act.
What types of debts are covered?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:
Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.
Can a debt collector keep contacting me if I don’t think I owe any money?
If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren’t; or
indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
you will be arrested if you don’t pay your debt;
they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
Debt collectors may not:
give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn’t; or
use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
