How to Dispute Credit Report Errors

The clock is ticking.  The time limit for challenging a credit reporting error begins to run from the date the error is reported.  The time limit DOES NOT run from the time you discover it.  So, check your credit now and check it often.  You can check it for free once a year by going to www.annualcreditreport.com.  If you find an error, consult the Federal Trade Commission for instructions on how to dispute credit report errors.  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm  If you dispute the error and the creditor or credit reporting agency refuses to correct the problem, call us. 
-Brandon L. Blankenship (205)912-8248
Blankenship Harrelson, LLP

Options in Foreclosure

If your home was foreclosed between January 1, 2009 and December 31, 2010, you can request a review of the foreclosure process to see if it was handled properly. Fourteen mortgage companies are required to participate in this process. If there were errors, misrepresentations or other irregularities with the process, you may be entitled to financial compensation or other remedies. This process only applies to the home that was your primary residence. Letters will be mailed out from the mortgage companies, but they will probably be sent to the house that you no longer live in. If you would like to have your foreclosure reviewed, you can call 1-888-952-9105 for the form you will need to fill out or visit the web site at www.independentforeclosurereview.com.

The fourteen mortgage servicers involved in this process are America's Servicing Co., Aurora Loan Services, Bank of America, Beneficial, Chase, Citibank, CitiFinancial, CitiMortgage, Countrywide, EMC, EverBank/EverHome Mortgage Company, GMAC Mortgage, HFC, HSBC, IndyMac Mortgage Services, MetLife Bank, National City Mortgage, PNC Mortgage, Sovereign Bank, SunTrust Mortgage, U.S. Bank, Wachovia Mortgage, Washington Mutual (WaMu), and Wells Fargo Bank, N.A.

Please let us know if we can help you with this process.  Brandon L. Blankenship (205)912-8248
-Blankenship Harrelson, LLP

Do You Have the Credit Report Woes?

We previously blogged about the importance of reviewing one’s credit report to help protect against credit errors and identify theft.   In addition to reviewing credit reports at regular intervals, consumers who find themselves the subject of debt collection may want to check their credit reports more frequently to ensure accuracy.   Under certain circumstances, debt collectors are permitted to report consumer debs to credit reporting agencies.   However, because a debt collector can be a separate entity from the original creditor, the same debt may be listed several times on a consumer’s credit report.   This problem can be compounded by the fact that it is not uncommon for one debt collector to sell a consumer’s debt to another debt collector; in fact, some debts may even be sold multiple times.   If a new debt collector reports the same debt each time it is sold, a single debt may be reported multiple times on a consumer’s credit report.   This can cause the report to appear misleading, giving the implication that numerous debts are owed to different companies when in reality, the same debt is being reported over and over.   Thus, while it is important for all consumers to periodically review their credit reports, those who are the subject of debt collection may want to review their reports more often to ensure reporting accuracy.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

A Debt Collector Put a Debt on my Credit Report That I Don't Owe!

Dispute it!   Consumers can and should protect their credit reports by disputing incorrect information listed by a debt collector.   This can include a debt collector listing a debt the consumer does not owe at all, or simply listing a debt that the consumer disputes in whole or in part. Consumers can make oral dispute debts to a debt collector, but it is best to make a written dispute to the collector.   When making a dispute, consumers should provide as much information as possible, including any documents which support the dispute.   It would also be a good idea for consumers to use certified mail or request delivery confirmation when sending the dispute and to keep a copy of the dispute for their records.   An attorney can help consumers determine what rights they have if the debt collector refuses to investigate the debt or refuses to report it as “disputed.”   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

What Is Credit Reputation?

Your credit reputation is what others think about your habits surrounding borrowing and repayment. Whether you know it or not, agree to it or not or want or not, your credit reputation has been scored with a number called a credit score. Your credit score is determined and maintained by the three credit reporting agencies: Trans Union, Equifax and Experian. Each agency will assign you a different score. Because of the way credit scores are determined, however, the scores should be fairly close. You can think of your credit score just like the grades you received in school:

Credit Score     Grade   
Over 720           A Excellent Credit   
700 - 720          B Good Credit   
680 - 700          C+ Above Average Credit   
660 - 680          C Average Credit   
620 - 660          D Below Average Credit   
Below 620         F Poor Credit

Why should you care? Well, people with an “A” credit reputation pay lower interest rates, pay lower insurance premiums, have more credit opportunities and get hired more often. Also, people with an “A” credit reputation can finance a house with a low interest rate and little or no down payment. People with a “F” credit reputation cannot finance a house with a traditional lender.

Several things create and improve your credit reputation:

• Historically paying bills early
• Borrowing less than 25% of the credit available to you
• Having the same credit account for a long time
• Maintaining the right type of credit
• Having the right mix of new credit accounts

Several things that hurt your credit reputation:

• Late payments (the later the payment, the more harm)
• More than one account that has late payments
• Public filings such as bankruptcy, judgments and liens
• Borrowing more than 25% of the credit available to you

These factors impact credit reputation scoring generally. Credit reputation scoring is complex and it is difficult to show exactly how important any single factor is in determining your score. The level of importance for any one factor will be unique to you. What is important is the overall mixture of factors, which varies from person to person and for any one person over time. The two most important things to do to protect your credit score is to monitor it often and, when necessary, seek the help of a credit professional.  -Brandon L. Blankenship (205)912-8248
-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Are There Time Limits on My Debts?

http://youtu.be/YhGNiofkzaA

We recently blogged about the time limits consumers have to bring actions against harassing or abusive debt collectors.   Well, time limits similarly exist regarding how long debt collectors have to bring lawsuits against consumers for failure to pay a debt.   Unfortunately, many consumers are unaware of these time limits.   Although debt collectors may not be able to sue on a time-barred debt, they can still ask a consumer to pay it.   Further, there are several factors that might even extend the time limits on a particular debt.   The video by ABC news discusses how some debt collectors use time-barred debts, among other methods, to try to get money from consumers.   An attorney can help you determine whether you debts are time-barred or still available for collection.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Isn't Everyone Who Calls to Collect a Debt a "Debt Collector"?

The Fair Debt Collection Practices Act protects consumers from abusive collection conduct of debt collectors.   But, isn’t everyone who calls to collect a debt a "debt collector"?   Not necessarily.   The Fair Debt Collection Practices Act defines a debt collector as any person whose main business is collecting debts or who regularly collects debts owed to another person.   However, creditors who collect their own debts are exempted from the Act's definition of "debt collector" and therefore exempted from the prohibitions of the Act.   However, while they may have more leeway in collecting debts, creditors do not have free reign to abuse consumers.   Legal theories such as invasion of privacy may help protect consumers by requiring creditors’ debt collection conduct to be reasonable as well as reasonably related to legitimate collection efforts.   Conduct which includes threats, name-calling or harassment may not be considered “reasonable” and may therefore expose a creditor to liability.   An attorney can help you determine whether a creditor’s debt collection efforts are actionable or not.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

Understanding Your Credit Report

Creditors and debt collectors are allowed to report a consumer’s unpaid debts to their credit report under certain circumstances. However, a credit report may include several different debts and be confusing to understand. If you feel that your credit report includes debts that are listed in error or that the same debt is listed multiple times, an attorney can help you decipher your credit report and make sense of the confusion.  An attorney can also see if you have suffered credit reputation damage and are eligible for compensation.  Call us if we can help you.    -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

Debt Collection Calls from an Attorney

Debt Collection is often conducted by companies or agencies whose principal business is collecting debts for others. However, debt collectors can also come in the form of individuals—including attorneys. The FDCPA explains that a “debt collector” can be any “person” who regularly collects or attempts to collect debts for others or uses interstate commerce or mail in any business for which the principal purpose is collection of debts. FTC commentary on the FDCPA as well as various courts have explained that the FDCPA’s definition of debt collector may extend to attorneys whose business generally includes collecting debts for others. In these instances, attorneys would be subject to the same FDCPA prohibitions as debt collection companies. If an attorney has taken any prohibited action while attempting to collect a debt from you, you may be entitled to relief under the FDCPA.    -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Keep Copies of Your Records

It may seem like a simple thing to do, but when dealing with creditors, debt collectors, etc., one of the most important thing consumers can do is keep records of phone calls, letters, and any transactions with these entities.   Keeping a copy of these types of records can keep consumers aware of their financial relationship with these entities and can help remedy errors which may occur in the future.    -Meredith Phillips  (205) 912-8244

-Blankenship Harrelson, LLP

The ABC's of Debt Collection

The Fair Debt Collection Practices Act was designed to protect consumers against debt collection tactics which are harassing, unfair, deceptive or abusive. While the outcome of debt collection cases often depends on the particular facts, there are several basic prohibitions of which consumers (you) should be aware. 

This video produced by the Federal Trade Commission explains some of the debt collection conduct prohibited by the FDCPA as well as what consumers can do to help stop unwanted debt collection. 

Remember, just because you owe a debt, doesn't mean that it's ok to be abused or degraded in any way.  Find help for paying your debt, and call an attorney to stop harassment from debt collectors.  We'll be glad to talk over your situation and see if you have a case.  -Meredith Phillips (205)912-8244

-Blankenship Harrelson, LLP

http://www.ftc.gov/multimedia/video/credit/debt/debt-collection.shtm

One Phone Message is Worth a Thousand Words...or a Million Dollars

We have written blogs about this before, but it never hurts to say it again. When it comes to protecting yourself from abusive debt collectors, saving voice messages on your home or cell phone may be one of the most important steps you take. 

It makes sense when you think about it…a debt collector who is not afraid to abuse consumers is probably not afraid to lie about it later.   It is one thing to simply tell someone that a debt collector called you a name or threatened you, but it is quite another to actually hear the debt collector in the act of these illegal behaviors.   This link is from a news station and reports on a recent story out of Texas where recordings of abusive collection messages played an important role in a plaintiff’s lawsuit against the debt collector.  They won $50,000 in mental anguish and $1.5 million in punitive damages.

If you are being harrassed by debt collectors, save your messages and call an attorney.   -Meredith Phillips (205) 912-8244
-Blankenship Harrelson, LLP

http://www.wfaa.com/news/consumer/Vulgar-voicemails-force-debt-collector-to-pay-15M-95163714.html

Repeat Offenders: Calling over and over

One of the more common complaints against debt collectors concerns repetitive or continuous phone calls. While debt collectors are permitted to call consumers to collect or attempt to collect legitimate debts, debt collectors who repeatedly call in the same hour, same day, or even too many times in a single week may find their conduct deemed harassing and thus in violation of the Fair Debt Collection Practices Act. 

As with many Fair Debt Collection Practices Act violations, the number or pattern of phone calls which rises to the level of harassment will depend on the particular facts of the case. However, if you feel that your life has been consumed by debt collection calls lately, relief may be available. An attorney can help determine whether the calls violate the collection prohibitions and may even be able to help stop the calls.    -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

Time Limits on Debt Collection Lawsuits

A Statute of Limitations is essentially a deadline which limits the amount of time people have to bring a lawsuit under a particular law. Many, if not all laws have some sort of deadline like this and the Fair Debt Collection Practices Act is no exception.

When it comes to harassing or abusive debt collection, the FDCPA provides that lawsuits to enforce any portion of the Act must be brought within one year from the “date on which the violation occurs.” Depending on the particular facts, caselaw has some different interpretations of which “date” a violation of the FDCPA is said to actually.

However, the important thing to remember is that time is not limited. In order to protect their rights, consumers should be aware that deadlines do exist for bringing actions based on harassing or abusive debt collection, just as they do for many other legal violations. -Meredith Phillips (205) 912-8244

Blankenship Harrelson, LLP

How Can I Make Debt Collection Calls Stop?

The FDCPA protects consumers from abusive, unfair or deceptive debt collection practices and gives consumers a private right of action against debt collectors who violate the Act’s requirements.

So how can a consumer stop these calls? In addition to providing a private right of action to consumers whose rights have been violated by, the FDCPA requires debt collectors to stop all communications under certain circumstances. With a few exceptions, debt collectors must stop communication if a consumer notifies the debt collector in writing that the consumer (1) refuses to pay a debt or (2) wants the debt collector to stop further communication.

After a consumer provides this writing, the debt collector may contact the consumer for only two reasons: to tell the consumer that further collection efforts are stopping and to notify the consumer that the debt collector or creditor may use certain remedies available to them. Any other communications may subject the debt collector to liability under the FDCPA. -Meredith Phillips (205) 912-8244 Blankenship Harrelson, LLP

This simple practice will help protect your PIN from identity thieves

Thermal cameras take special photographs of an image and colors the photograph based on the amount of heat it is emitting.  These special cameras used to be inaccessible to the general public because they were so expensive.  As the price of the cameras go down, more and more creativity has been applied to their use.  Many of these uses are positive.  For example, thermal cameras can be used to photograph your home to show where additional insulation needs to be added or doors and windows need sealing. 

Identity thieves have discovered a not-so-good use for the thermal camera.  When you press the keys to enter your PIN, heat transfers from the tips of your fingers to the keys.  Identity thieves can then immediately snap a thermal photograph of the keypad and determine which keys were pressed.  In some cases, the order the keys were pressed can be determined because the first key pressed will have  the least residual heat and so forth.  Metal keys (such as on ATMs) tend to photograph better than non-metal keys. 

Put this simple practice in place to reduce your risk of your PIN being stolen in this way.  After you enter your PIN on a keypad, place your whole hand over the keypad (touching the keys) and leave it there for a count of five.  This will heat the whole keypad so that when a thermal image is taken ALL of the keys will show hot - not just the ones that you touched to enter your PIN.  This five seconds may save you the years it may take to overcome your PIN being stolen.  -Brandon Blankenship (205)912-8248
Blankenship Harrelson, LLP

Do I Still Have Rights if I Actually Owe the Debt?

Generally, creditors and/or debt collectors are permitted to contact you about a debt you owe in order to obtain payment on that debt. However, legitimately owing a debt does not give debt collectors permission to harass or threaten you about that debt. Many of those in debt are hardworking people who want to pay their bills but, for one reason or another, are simply unable to do so.

The Fair Debt Collection Practices Act specifically protects all consumers against harassing, unfair or deceptive debt collection practices and defines “consumer” as “any natural person obligated or allegedly obligated to pay any debt.” A person in debt does not deserve any less respect than a person who is not in debt.

Even if you legitimately owe a debt, the FDCPA was designed to protect consumers against abusive debt collection practices and an attorney can help you determine if your rights have been violated. Meredith Phillips (205)912-8244
Blankenship Harrelson, LLP

Protecting Your Credit

Credit reports contain information about a person’s financial life, such as bills and bankruptcies. In addition to containing information, credit reports may also affect a person’s ability to get a credit card, a loan or a job. Thus, the FTC explains the importance of periodically reviewing one’s credit report to make sure the information is accurate and to help protect against identify theft.

The FTC also informs consumers that amendments to a federal law called the Fair Credit Reporting Act require the three nationwide credit reporting companies (Equifax, Experian and TransUnion) to provide consumers with one free copy of their credit report each year, at the consumer’s request. For details on how to obtain your free credit report, consumers can visit the FTC’s website at http://www.ftc.gov/credit.

Just as it is important to review one’s credit report, it is also important to report errors as soon as possible. The FTC provides detailed information on how to dispute errors and make sure that one’s credit report is accurate. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm

By staying informed and proactive about credit report information, consumers can help protect themselves against credit errors which could have significant financial consequences. -Meredith Phillips (205)912-8244
Blankenship Harrelson, LLP

Telemarketing Text Messages

The Telephone Consumer Protection Act governs telephone marketing calls made to a consumer’s telephone. 

We previously blogged that debt collection calls to a consumer’s cell phone made with an automated dialer are prohibited unless the consumer previously gave express consent to receive calls on his/her cell phone. Express consent may have come from a credit application or other information the consumer provided to the company. 
This ban on autodialed cell phone calls applies to telemarketing or solicitation calls as well as debt collection calls. However with the advance of technology, there are now other ways to communicate on a cell phone besides making a call—for example, text messages. So, if the TCPA prohibits cell phone solicitation calls without the consumer’s consent, what about solicitation text messages?

Several courts have found that text messages sent with an automated dialer may be considered “calls” under the TCPA and therefore, may be prohibited without the consumer’s prior express consent. The FCC has also indicated that its rules prohibit using an automated dialer to send unwanted text messages to a cell phone.

An attorney can help you determine whether the unwanted telemarketing text messages on your cell phone are prohibited or not. -Meredith Phillips (205)912-8244
Blankenship Harrelson, LLP

Debt Collection after Death

While debt collection calls can be annoying and confusing at any time, they may be especially so after the loss of a loved one. When a person dies, many of his or her debts may remain outstanding. Thus, creditors and debt collectors still have a right to have those debts paid, often out of the assets of the deceased’s estate. Further, in some instances, a spouse or other relative may remain personally liable on certain of the deceased’s debts. The FTC has issued a Consumer Alert regarding who is responsible for paying the debts of a deceased relative, which can be located at http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt004.shtm.

The Fair Debt Collection Practices Act governs all calls by debt collectors—including those regarding deceased debtors. However, the FTC recently issued a policy statement clarifying the requirements of debt collectors attempting to collect a deceased’s debts. Problems commonly arise when debt collectors contact persons with no legal obligation or no authority to pay the debt out of the decedent’s estate and mislead those persons about their obligations. By engaging in this type of deceptive conduct, the debt collectors could be violating the FDCPA.

According to the FTC, a limitation of permissible contact provides additional protection for the family against deceptive and abusive collection conduct. The FTC instructs that debt collectors should only contact certain individuals regarding a deceased’s debts—including among others, the deceased consumer’s attorney, spouse, parent (if the deceased consumer was a minor), guardian, executor, administrator, or any other individual who has the authority to pay debts out of the deceased’s estate. The FTC also encourages collectors to make good faith efforts to search probate court records before contacting people other than the deceased estate’s executors or administrators. Moreover, once a collector identifies the executor or administrator, the collector must only communicate about the deceased’s debts with that individual or any of the other permissible individuals.

Additionally, when communicating with permissible individuals, a debt collector may make a reference to payment for “outstanding bills” of the deceased, but implying that the deceased was delinquent on those bills may violate the FDCPA. The full FTC Policy Statement can be located in a hyperlink at the following webpage, http://www.ftc.gov/opa/2011/07/fdcpa.shtm

In additional to the contact limitations imposed by the FTC, the FDCPA’s general prohibitions on misleading, deceptive, harassing or abusive contacts still apply to calls regarding a deceased’s debts. An attorney can help you determine whether calls regarding a deceased loved one’s debt are proper under the FDCPA. -Meredith Phillips (205)912-8244
Blankenship Harrelson, LLP