Creditors Can Be Busted Too
Creditors who use unfair or deceptive tactics when they attempt to collect their own debts. If you think you are a victim of unfair collection practices, use the Violation Manager tool to create a detailed report of the incident. Documenting a pattern of violations can be used as the basis of filing a lawsuit or used as leverage when negotiating a debt for settlement.
Violation Manager
We provide you with a Violation Manager to document any consumer violations. Once you have enough of them, you can refer to an Consumer Law Attorney for possible litigation. Proof of consumer violations can add significant leverage when negotiating credit card debt. It's so easy!
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) is a major federal law that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States.
FCRA spells out how long negative information such as late payments, bankruptcies, tax liens or judgments may stay on a consumer's credit report — typically seven years from the date of the delinquency. This is critical because all to often these dates manipulated and changed by collection companies who want to extend the time they have to collect on a debt. Use the Credit Clock program to set statutory timers for both State and Federal law.
Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law enacted by Congress in 1978 to eliminate abusive practices in the collection of consumer debts.
The Act prohibits certain types of abusive and deceptive conduct when attempting to collect debts, including the following:
Validation Rights
Consumers must be informed of their validation rights regarding any debt that they are alleged to owe. This must be done in writing within five working days from the time the debt collector first contacts the consumer. These validation rights are as follows:
1. The consumer has thirty days (30) to dispute a debt or any part of it and a dispute must be communicated to the bill collector in writing.
2. A bill collector may assume a debt is valid if no dispute is raised within 30 days.
3. A bill collector, when advised of a dispute in writing within 30 days, must cease collection efforts on the disputed portion of the debt until verification is provided.
4. That a consumer has thirty days (30) to request the name and address of the original creditor if different from the current creditor.
5. That a bill collector must cease collection efforts until he advises the consumer of the name and address of the original creditor or that the present creditor is the original creditor.
