Alabama Consumer Law Blog

What to Do When You Have Been Sued By A Debt Buyer

Sun, 22 Apr 2012 16:13:57 -0600

It can be frightening to be sued by a debt buyer in Alabama (Asset Acceptance, LVNV, Midland Funding, Portfolio Recovery Associates, Unifund, etc.), especially one you have not heard of before the suit.

If this happens, the first thing to do is request our free report, The Five Secrets Debt Buyers Don’t Want You to Know. The report will give you a better understanding of what you will face when dealing with a debt buyer by exposing five secrets that debt buyers hope you never discover. Let us know you want this free report by completing our "Free Consumer Book" page, and we will email it to you right away. (Please note: This offer is not valid for anyone employed by debt collectors, debt buyers, or collection law firms.)

Second, remember that the debt buyer bears the burden of proof since it has brought the suit, and also remember that just because you have been sued does not mean you will lose the suit. The debt buyer must prove that you owe money not only to the debt buyer, but also to the original creditor. (Capital One, Bank of America, Chase, etc.)

Third, if you have been served in Alabama District Court (or Small Claims), you have 14 days from the date you were served to answer the lawsuit. If you have been served in the Alabama Circuit Court, you have 30 days from the time of being served to answer the lawsuit. Before making a decision, be sure to request our free report and the other information we will send you. Please note: If your time is running out to answer, you need to make a decision and take action before your time expires.

Fourth, although bankruptcy is a valid option to consider, it is normally not your only option. Consequently, many Alabama consumers file bankruptcy when they could have likely defeated a bogus debt buyer lawsuit. You have likely received many letters from bankruptcy attorneys. Definitely look at the information they sent you to decide if that is a good option, but always consider the option of fighting the debt buyer lawsuit.

Finally, if you are successful in your collection lawsuit, many good things happen. For instance, you should not receive any more calls or letters related to this debt from the debt buyer, or any other collectors. In addition, your credit report should be cleared of the debt buyer’s account as it relates to this lawsuit. If your credit report is not corrected when an investigation has been requested or you continue to get calls, you may be entitled to money damages against those responsible parties. All this because you won your debt buyer collection lawsuit.

Of course, being sued is no fun, but you have the opportunity to look into your options and turn the negative experience of being sued into a positive result for you. Contact us today by calling us at 205-879-2447 to learn more about your rights and options when you have been sued in Alabama by a debt buyer.

Debt Collection and Credit History

Fri, 20 Apr 2012 15:56:33 -0600

Debt collection can have a significant impact on your credit history. This article is designed to help you understand how debt collection can affect your credit report. We can help you understand your protection and rights under the law.

You can schedule a free, confidential consultation with a lawyer dedicated to helping consumers. Contact us or call our Birmingham office at 205-879-2447 or 205-714-4443.

Consumers Facing Debt Collection: Important Facts

Debt collectors and debt buyers do have the right to put a note on your credit report about the debt. Having a credit history of debt collection can negatively affect your chances of getting a mortgage or other loan.

A consumer has the right to and should dispute any debt that is false. In addition, if you send a credit report dispute to the debt collector and the credit reporting agencies (Equifax, Experian, Innovis, and TransUnion), a false account must be eliminated from your credit reports. The account must be shown as “disputed” even if it is kept on your reports. If a debt collector fails to do so, you can sue under the Fair Debt Collection Practices Act or the Fair Credit Reporting Act.

Dirty Tricks By Debt Collectors That Can Impact Your Credit History

We have seen debt buyers continue to report debts to credit agencies as delinquent and undisputed, even after being notified that it is disputed by the consumer, and even after the consumer has won the debt collection lawsuit. This is just one of the dirty tricks used by debt buyers and collectors to treat customers unfairly and illegally.

Debt buyers may also take part in other activity that violates the Fair Debt Collection Practices Act. For instance, they may “re-age” your account. This means that instead of letting the debt clear from your record after seven years, they will report the debt as more current in order to keep it in your debt history. They may also threaten or intimidate you with ruining your credit by keeping false information on your reports.

Know What Debt Collectors Are Saying About You By Requesting Your Free Credit Reports Today

If you have been contacted by a debt buyer or a debt collection agency, you need to understand the impact on your credit history and your rights. Every year, you are entitled to one free credit report from each bureau (Equifax, Experian, Innovis, and TransUnion). You can request a credit report by completing and mailing the request form, calling 1-877-322-8228, or visiting the official website. You can obtain your free Innovis report by downloading the report request form or by calling toll free at 1-800-540-2505.

When you meet with us, bring a copy of your free credit reports, any notes regarding the discrepancies, and documents that prove the errors. We will carefully examine your case, explain the law, and present your options. We are here to help you.

Schedule your free confidential consultation by filling out the intake form on our “Contact Us” page or by calling us at 205-879-2447.

Good Or Bad To Sue Abusive Debt Collectors?

Mon, 12 Mar 2012 17:57:32 -0600

Good people who are harassed by debt collectors sometimes wonder if it is ok or right to sue an abusive debt collector.

Sometimes they are told that it is wrong to take action against debt collectors if you owe any money. Sometimes they are told that there is nothing that can be done against debt collectors or that no lawyers will help them.

Today I wrote an article entitled "Are You A Hero For Suing Abusive Debt Collectors" and I hope that this helps you as you think through these issues.

My position is that abusive debt collectors hurt not only consumers but also honest, law abiding collectors. This is not fair and it is not right. As we have explained in a closing argument in Federal Court -- it is bad for business to allow these cheaters to run free and destroy honest debt collection agencies.

The jury agreed.

But nothing can happen unless good, honest, determined Alabama consumers stand up and say "I will not take this anymore!"

The collectors use, and break, the laws so it is certainly appropriate and fitting for you to use the law in an honest, ethical way to do your part to stop even the largest of abusive collection agencies.

Be someone that others look up to.

Can I say it?

Be a hero.

Lawsuit Against LVNV and Northland Group By Alabama Consumer

Sat, 03 Mar 2012 08:38:36 -0600

You got sued by a debt buyer -- you won. But the debt buyer keeps collecting. Either give up and accept it or fight back.

We suggest fighting back is normally the best option.

This is what our client did when she was sued by the debt buyer/debt collector LVNV and she won her case. But then LVNV hired the rather famous debt collector Northland Group to continue to collect against her.

She could have given up.

Or she could have begged these debt collectors to follow the law -- but then again the judge had already ruled our client didn't owe the debt so I'm not sure what good telling LVNV and Northland Group would have done.

So she could give up or fight back.

She chose to fight back and ask a jury to decide about what LVNV and Northland Group have done after losing the collection case against her.

You can read about the lawsuit she filed against LVNV and Northland Group here.

If you have experienced similar conduct by LVNV or Northland Group and you live in Alabama, we would like to hear from you. You can call us at 205-879-2447.

Alabama Consumer Sues IC System For False Credit Reporting

Wed, 29 Feb 2012 21:23:25 -0600

You can read about a recent lawsuit that our Alabama consumer filed against the famous debt collection firm IC System out of Minnesota. The allegations include that IC System committed false credit reporting.

The moral of this story is to be careful if you are dealing with a collection agency and to check your credit reports to make sure there is no false information from the collection agency.

Transcript of Radio Interview About Debt Collectors

Tue, 28 Feb 2012 07:33:02 -0600

A couple of years ago I was interviewed on the "Steve and Leah Show" -- we talked about debt collectors, harassment, calls to work, how to deal with debt collectors, zombie debt, and credit reports.

They were great and if you would like to read the transcript, just click the link above.

John Watts

Access Your Student Loan Information -- Especially If Dealing With Collectors

Sat, 25 Feb 2012 13:48:24 -0600

One of the best places to start when looking at your student loan issue is exactly what does the National Student Loan Data System (NSLDS) show about your loans which is why we wrote a short article explaining how to access this site.

Find out where you are right now on your student loans and then you can plan for where you need to go next.

This is especially true when dealing with student loan collection issues -- sometimes it can be very confusing on which loan is being collected upon by which collection agency.

If you live in Alabama and have questions about student loan issues, please feel free to give us a call at 205-879-2447.

Lawsuit Against LVNV and Budzik Law Firm For FDCPA Violations By Alabama Consumer

Fri, 24 Feb 2012 10:37:03 -0600

Alabama consumers are filing lawsuits against the well known debt buyer and debt collector LVNV Funding for violating the Fair Debt Collection Practices Act (FDCPA). You can read about a recent suit against LVNV and a collection lawfirm called Budzik & Dynia, LLC (out of Chicago) that an Alabama resident filed.

Remember when a debt buyer sues you in Alabama, it must prove that you owe the debt and that the debt buyer now owns the debt. From what we see, normally debt buyers will not and cannot do this in Alabama.

When a debt buyer loses a case against you in Alabama, it must cease all collection activities, but often these debt buyers will not cease collecting the debt -- instead they keep trying to illegally collect it.

You can find a listing of some lawsuits against LVNV for this type of mis-conduct.

If you live in Alabama and have had a similar experience with LVNV or any other debt collector or debt buyer, please feel free to contact us for a free analysis of your rights and options, including suing the debt buyer. You can call us at 205-879-2447 and we'll be glad to chat with you.

What Is A Birmingham, Alabama Foreclosure Defense Lawyer?

Thu, 23 Feb 2012 09:12:43 -0600

There is a lot of news right now about foreclosures and potentially wrongful foreclosures. More and more lawyers (and non lawyers) are claiming they can help.

The non lawyers will give you a "loan audit" or "loan analysis" and tell you all of the laws that were violated in your loan. All of the ones I have seen have been worthless. But not free -- typically a thousand or two thousand dollars.

The lawyers all claim to be "Alabama Foreclosure Defense Lawyers" or "Birmingham Foreclosure Defense Attorneys."

There is even a New York firm that says it will do foreclosure defense in Alabama.

So what is a foreclosure defense lawyer and what can he or she do for you? And how do you find one? You can click on the link to go to a somewhat lengthy article that we think will give you some insight into the answers to these questions.

Do your research and your due diligence. Ask lots of questions. Then take the right action for you and your family.

Alabama Foreclosure -- Hire a Lawyer or Handle Yourself?

Tue, 21 Feb 2012 15:49:12 -0600

We recognize it is a difficult decision when you are facing a foreclosure, or have already been foreclosed, and you have to decide whether to make decisions and take action with a lawyer or without a lawyer.

There is no right or wrong answer to every legal issue you face.

We do suggest, however, that foreclosure type cases can be some of the more complicated cases and may not be the right legal matter to handle yourself. We just posted an article that discusses some thoughts and ideas about hiring an Alabama foreclosure defense lawyer or handling it yourself ("pro se").

Our encouragement is get some good advice and then decide whether to handle the case on your own or not.

Whatever your decision, we wish you the best.

John Watts and Stan Herring

Is Your Alabama Foreclosure Illegal? Did You Get Proper Notice?

Tue, 21 Feb 2012 08:32:11 -0600

You can read the actual opinion and our analysis on a wonderful Alabama Supreme Court order that clearly establishes that, under most mortgages, a letter must be sent to you before the mortgage company accelerates your mortgage.

This is something that we have been arguing and that we always believed but there was some doubt as to which way the court would go. We are thankful the Alabama Supreme Court simply applied the plain language of the contract (mortgage) and did not accept the mortgage bank industry's argument to ignore contracts.

Our Alabama Supreme Court is a conservative court that does not intend to "legislate" from the bench -- instead it simply desires to apply the law as it is written and enforce contracts as they are written.

Many in the mortgage industry thought the Supreme Court would do whatever was helpful to the mortgage industry -- nice to see that this was a mistaken belief.

If you are facing, or have faced, a foreclosure, look at your note and mortgage and see what happened so you can be better equipped to make decisions on whether to take any action or not against a mortgage company that has improperly and wrongfully foreclosed against you.

Can You Sue Chase Credit Card Company For Auto Dialed Calls?

Sun, 19 Feb 2012 15:26:35 -0600

Yes -- here is an example of Alabama consumers who sued Chase for auto dialed (computer or robo dialed calls) to their cell phones without permission.

If you never gave the creditor permission to call your cell phone, or if you revoke permission, then these annoying auto dialed calls can be illegal under the Telephone Consumer Protection Act (TCPA) and can entitle you to $500 or $1500 per call in statutory damages.

If you live in Alabama and want to discuss your particular situation, please let us know and we'll be happy to do so. You can call us at 205-879-2447 or contact us through this blog or our website contact form.

Lawsuit Against BSI Stops A Wrongful Foreclosure In Alabama

Fri, 17 Feb 2012 08:25:17 -0600

Our clients in Huntsville recently sued several mortgage companies before a planned foreclosure that we feel would have been wrongful and illegal.

Foreclosures are still running rampant across our state and when they are illegal and wrongful foreclosures, they need to be stopped or reversed.

Learn about your rights and take the appropriate action to protect yourself.

Alabama Consumer Sues Portfolio Recovery For Calls After A Cease And Desist Letter

Wed, 15 Feb 2012 08:18:22 -0600

A 71 year old Alabama consumer sued Portfolio Recovery Associates for continuing to call him after he told them, over the phone and in writing (by certified mail) to stop all communication with him.

Remember Portfolio's slogan about giving debt collection a good name....

Alabama Consumer Sues Student Loan Collector Allied Interstate

Sun, 12 Feb 2012 14:12:14 -0600

You can read a recent Alabama consumer lawsuit against the large debt collector Allied Interstate. This lawsuit relates to alleged abusive collection practices related to a federal student loan.

If you have any similar experiences, let us know as we are curious to see how widespread the problem is with Allied Interstate -- we know Allied Interstate has been fined in the past for student loan abuses and we doubt this is an isolated event.