Debt Collectors | Lionheart Group Scam Prevention Toolkit

Bud Hibbs Wants Your Junk Debt Buyer Affidavits from Debt Collection Lawsuits

April 23rd, 2011. Published under Business Scams, Scams. No Comments.

Bud Hibbs is attempting to collect affidavits to show that junk debt buyers engage in signing documents where they claim to have firsthand knowledge of the accounts and that these affidavits are routinely

Judge Issues Huge Smackdown on Debt Collectors and Industry for Harassing Consumers on Facebook and Social Media

April 18th, 2011. Published under Business Scams, Fraud. No Comments.

This should be a warning to every debt collection company in the United States that do not reign in collectors that break the law to make a quick commission. Legal precedence and decisions such as this will cost your companies mega-bucks. Personally I hope debt collectors do continue to harass consumers this way, so that the consumers can sue the pants of of the idiots and put money in their pockets for enduring the abuse. I like getting paid for debt collectors breaking the law. I’ve made more suing devious debt collectors than they ever have from me, and as long as they flaunt the law consumers can and will get paid for the harassment. A debt collection company operating in Jacksonville Florida, MarkOne financial, has (probably fired by now)

Two More Consumers Fend Off Debt Collectors in Court and Win with “THE BOOK”

March 22nd, 2011. Published under Business Scams, Fraud. No Comments.

I do love hearing that readers of the Stick it to Sue Happy Debt Collectors Book are fighting back against frivolous debt collection lawsuits and winning. Consumers that cannot afford and attorney can defend themselves in court again debt collectors and leave triumphant. Below are portions of emails that I received today from readers. I am so glad that I can empower people and enjoy their victories nearly as much as they d0.

Is American Express Violating the Credit Repair Organizations Act Using A Debt Collection Letter?

March 8th, 2011. Published under Business Scams, Fraud, Scams. No Comments.

Last month I received and unusual letter from American Express Centurion Bank offering me a chance to repair my credit, by them offering a credit card, if I pay an alleged debt. I do believe this “offer” is an unfair and deceptive act that may violate the Credit Repair Organizations Act by promising to improve my credit. The letter gets even funnier, further down in the letter they use a carefully worded phrase (after offering me a new credit card) that states, “After you pay your balance in full we will send you a pre-qualified application for a new Optima card”.

Man Can Sue for FDCPA Violation – Debt Collector Filed Suit in Wrong Jurisdiction

March 8th, 2011. Published under Business Scams, Scams. No Comments.

Jonathan Hess of Clay New York won the right to peruse debt collection law firm Cohen & Slamowitz for violations of the Fair Debt Collection Practices Act (FDCPA). Cohen & Slamowitz filed a collection lawsuit against Mr. Hess in an improper jurisdiction. The U.S. Court of Appeals in New York reversed a lower courts ruling which allows Mr. Hess to continue his FDPCA lawsuit against the law firm. “The initial lawsuit against Hess was filed in Syracuse City Court by Woodbury-based Cohen & Slamowitz on behalf of Midland Funding. Hess hired lawyer Anthony Pietrafesa, who challenged the lawsuit on jurisdictional grounds because none of the parties resided in Syracuse or a contiguous town as required by law.” ~ Syracuse.com Debt collectors must file debt lawsuits in the judicial district in which the defendant resides. Failure to properly files in the proper venue and jurisdiction should result in a dismissal of such lawsuits. In my opinion the filing of a lawsuit in an improper jurisdiction could quite possibly be a violation of the FDCPA, as it is false or misleading.

TCPA Class Action Filed Against Debt Collector Portfolio Recovery Associates Inc

March 3rd, 2011. Published under Business Scams. No Comments.

Turner Law Offices, Llc Announce Filing Of A Class Action Lawsuit Against Portfolio Recovery Associates, Inc.

Stick It Book Reader Gets Portfolio Recovery Debt Collection Lawsuit Dismissed with Prejudice

February 25th, 2011. Published under Scams. No Comments.

It warms my heart when a

Been Sued by Debt Collector Midland Funding LLC? You May Can Get Paid for Your Troubles

February 21st, 2011. Published under Fraud, Scams. No Comments.

Encore Capital Group Inc (ECPG) that owns and operates Midland Funding LLC a junk debt buyer and collection company. In consumer advocacy and protection groups, Midland Funding is well known for aggressive collection tactics such as filing lawsuits against alleged debtors. In many cases the use of an affidavit of debt or account were submitted as evidence supporting Midland Funding’s complaints. The problem is that these ‘affidavits’ may have been flawed or false documents submitted before the court. Encore Capital Group has just recently agreed to settle all pending class-action lawsuits that allege the company used false or phony affidavits in lawsuits filed against consumers. “In the most prominent case, an Ohio federal judge ruled in 2009 that Encore violated federal and state laws by trying to collect credit-card debt using a fake affidavit. Encore disclosed its settlement of the Ohio suit on Monday in a Securities and Exchange Commission filing. Some regulators and judges have complained that documents submitted to courts by debt collectors as proof of what a borrower owes frequently are sloppy or fraudulent. The accounts bought by debt-collection firms often lack information about the underlying debts, such as contracts or payment histories, according to judges who rule on collection cases. “ ~ MarketWatch In addition, the Texas Attorney General recently ordered Encore Capital to produce documents in an ongoing investigation of the company and its subsidiaries, and its methods of collecting debts. What this means for individuals sued by Midland Funding? It means that consumers may have an option to reopen a case that Midland Funding brought against them and have it dismissed for possible perjury or fraud upon the court. This also means that any default judgment obtained or garnishment orders could be dismissed as well. I suggest that if you have been sued or in the process of being sued you may want to contact a consumer protection attorney or even proceed as a pro se litigant and look into have judgments overturned. While I am not an attorney, Encores business practices of using falsified affidavits may also run afoul of the Fair Debt Collection Practices (Act) for use of false or misleading means to collect a debt. Whatever the case may be, consumers sued by Midland Funding now have a tool in which to have judgments or garnishments overturned and quite possibly a strong FDCPA case against Midland Funding LLC.

Consumer Beats Debt Collectors Zwicker and Citibank in Court with the ‘Stick It’ Book

February 2nd, 2011. Published under Business Scams, Fraud, Scams. No Comments.

Once again, justice is served for consumers. As I have often stated, most debt collection attorney’s, debt collectors, and junk debt buyers don’t have the proof that is needed to prove a consumer owes a debt. They still file frivolous lawsuits even they don’t have proper proof in the hopes of scaring a consumer into paying or that they are able to obtain a summary or default judgment. The biggest problem is that consumers are not aware of or are afraid of debt lawsuits and collectors. In as high as ninety percent of the cases get a judgment because the consumer did not respond or fight back and the plaintiffs were awarded a judgment. Just this morning I received an email from a read of ‘Stick it to Sue Happy Debt Collectors’ and he said: “I bought your book a few months ago and used the information to fight Zwicker and Associates who was representing Citibank. Today I received a call from a representative at the law firm telling me that they have voluntarily dismissed the case! Thank you for the book and all your help.” ~ J Wright I tell countless consumers every day that in nearly ninety-five of debt lawsuits the plaintiff doesn’t have sufficient proof to get a judgment and that by fighting back (as outlined in my book) and a consumer can win against debt collectors. I receive emails every week from happy and relieved consumers that did fight back using the book and won. The tactics that I use to put debt collectors in place (in court) and the countless consumers I have helped with the book

Criminals Working for Debt Collectors May Be Stealing Your Identity

January 31st, 2011. Published under Business Scams. No Comments.

It is bad enough that many times consumers are illegal threatened and harassed by ruthless debt collectors. It appears that many debt collection companies do not perform criminal background checks on call center employees. Many of these employees have criminal records. Even worse is the fact that many states do not require licensing or at the least background checks for debt collection employees. These collectors have open access to a consumers credit reports, bank account information and possibly other credit card information. The state of Minnesota is one of the few states that do require criminal background checks on the collectors they employ. In the past they found that one in twelve collection employees had a criminal record, including: identity theft, rape, check forgery, and assault (source Star Tribune ) The state of Minnesota has put eight large collection companies on notice and is considering pulling their collection licenses because they have consistently failed to perform criminal background checks on employees. The companies are Allied Interstate Inc, AllianceOne Receivables Management Inc, Bureau of Collection Recovery, I.C. System Inc, Financial Recovery Services Inc., NCO Financial Systems Inc, Receivables Management Solutions Inc, and Van Ru Credit Corp. Scary to think that persons involved in identity theft and check forgery has access to countless consumer’s personal credit information. Consumers having financial problems should freeze their credit immediately to prevent potential identity theft by collection industry employees. Other states should license debt collection industry employees or at the very least force companies to perform criminal background checks. All consumers deserve protection from known criminals, don’t you think?

Legal Decisions to Use in FDCPA Lawsuits Against Debt Collectors

January 13th, 2011. Published under Fraud, Scams. No Comments.

You’ve filed a lawsuit against a debt collector or law firm for violations of the Fair Debt Collection Practices Act (FDCPA). Chances are, in about 94% of FDCPA cases the defendant will attempt to settle soon after you file. However some collection agencies and law firms will fight you tooth and nail in court. With that being said the plaintiff in a FDCPA lawsuit needs legal precedents (legal decisions) to show the court in fact they have violated the law or to show prior causes for your filing of the FDCPA violation claims. The information below is a portion of Chapter Seven of my upcoming book ‘ Suing Abusive Debt Collectors – Don’t Get Mad, Get Even and Get Paid ’. If you would like to be notified when the book is published you may contact me here . Debt collection harassment comes in many forms: legal threats, physical threats, lack of disclosure, misleading or confusing consumers and many other forms of harassment are happening every day to consumers. Consumers MUST fight back to end debt collector harassment. The more collection agencies that are sued for violating a consumers rights the less likely it will occur in the future. Mind you the below are only the legal precedents, without explanations (detailed explanations will be included in

Stick it to Sue Happy Debt Collectors Book Now Available in ePub, PDF, Kindle and Print

January 8th, 2011. Published under Fraud, Scams. No Comments.

Stick it to Sue Happy Debt Collectors has save many a consumer from the clutches of abusive debt collectors and shady debt collection law firms is now available in ePub, PDF, Kindle format as well as paperback. Since being published last year, readers have given the book high ratings and reviews. Whether you owe a debt or not, this book will give you the tools that you need to get these lawyers off your back.

Debt Collectors Gone Wild – Dead Woman’s Affidavits Still Haunting Courts

January 5th, 2011. Published under Fraud. No Comments.

Marta Kunkle died in 1995, yet for years afterward her name appeared on affidavits used in debt collection lawsuits filed by Portfolio Recovery Associates Inc. Despite being sued for fraud in 2008, Portfolio Recovery supposedly stopped using any documents bearing Ms. Kunkle signature in lawsuits. However, in July 2010 her name once again popped up in an affidavit. Several states are in the process or are considering investigating whether Ms. Kunkle’s affidavits are still being used in consumer litigation. Consumers that have been sued by Portfolio Recovery Inc., and had monetary court judgments against them in the past should seek to re-open their cases and see if the judgment was granted based on an affidavit signed and attested to by Martha Kunkle. If Ms. Kunkle’s name does appear then they may can have a judgment overturned or rescinded based on these fraudulent documents. The daughter testified in a deposition that other Providian employees used the name Martha Kunkle when signing affidavits. Along with other employees, the daughter was responsible for signing affidavits. After countersuing Portfolio Recovery Associates for alleged violations of the Fair Debt Collection Practices Act, Ms. Cole was the lead plaintiff in a 2008 federal-court suit in Montana alleging the company targeted 16,000 borrowers using “false and misleading” affidavits. “I’ve watched and wanted to tell defendants in these suits to demand proof of the underlying debt because that proof is so often flimsy,” one Iowa judge.. ~ Wall Street Journal Boilerplate, (aka

The House Energy and Commerce Committee Have Lost Their Collective Minds

December 8th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

It is official ACA International and other

Crazy Debt Collector News Headlines of the Week

November 21st, 2010. Published under Fraud. No Comments.

Once again it is time for the crazy, strange and unusual debt collector /collection headlines of the week. You know the ones that the Federal Trade Commission continues to turn a blind eye to. Florida woman launches legal battle against loan firms debt collection harassing on Facebook McGraw reaches settlement with N.J. lawyer, debt agencies

Fake Courtroom Debt Collector Unicredit America Inc Probe Expanded

November 16th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

Last week I reported on Unicredit America Inc for allegedly running a fake courtroom complete with fake deputies, judge and attorneys ( read it here ). According to a Michigan newspaper the probe has been expanded and also resulted in a judge ordering the debt collection operation shuttered and at least one client of Unicredit intends to file suit for breach of contract and fraud. It also appears that the Federal Bureau of Investigation (FBI) may also be interested in Unicredit America Inc. Attorney General Tom Corbett called Unicredit tactics “an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments.”

Debt Collection Class Action Lawsuit Encore Capital Group (aka Midland Funding, Midland Credit Management)

November 15th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

I sincerely hope this is the first of many class-action and individual lawsuits filed against debt collection companies and their holding companies that fraudulently submit affidavits to courts in order to get a judgment. It is also up to judges to questions these affidavits and to force affiants to show proper documentation that would show if the affidavit is fraudulent or not. The sad news is most judges allow these sorts of worthless documents to be used in court without question. I imagine that this is happening in just one state, but in all states. On November 10, 2010 in a Washington State U.S. District court a class-action lawsuit was filed naming Encore Capitol Group Inc, Isaac Hammer, Jane Doe Suttell, Jane Doe Case, John Doe Gurule and others. Lauber et al v. Encore Capitol Group Inc et al, civil filing number: 2:2010cv05132 According to Courthouse News Service, “A Bellevue law firm works with collection agencies to mislead courts and consumers by using “robo-signers” in Minnesota who sign up to 400 affidavits a day, falsely swearing they have “personal knowledge” of cases in Washington state, to secure speedy default judgments, according to a federal class action. The class claims that Encore Capital Group, Midland Funding, and Midland Credit Management work with the Suttell & Hammer law firm, faxing a boilerplate form to a “legal specialist” in Minnesota, who signs the affidavit before any supporting documents are attached. “Encore Capitol Group (‘Encore Capitol’) has developed a proprietary, sophisticated, ‘system driven’ collection process based on the ‘predictive behavior’ of consumers (and state courts). In conjunction with its subsidiaries and ‘franchisee’ law firms (including the Suttell Law Firm) it engages in computer automated, high volume, state court litigation in the collection of distressed debt (purchased at pennies on the dollar).”

Debt Collector Threatens to Dig Up Dead Daughter and Hang Body From Tree

November 12th, 2010. Published under Business Scams. No Comments.

A woman in Bellville Missouri received threatening and vulgar phone calls from a debt collector (Rumson, Bolling and Associates of California 818-431-8169). Mrs. Henshaw alleges that the collector told her “ they were going to dig her daughter up and hang her body from a tree ,” if she didn’t pay the debt. In addition Mrs. Henshaw recorded several conversations with the collector and in one conversation the collector said he would “kill and eat her dog”. The collector’s also allegedly called the woman “white trash” among other vulgar names. This is the very reason that the Federal Trade Commission and the Consumer Financial Protection Bureau needs to further regulate the debt collection industry. It isn’t until collectors are prosecuted under criminal statutes will the consumer abuse and harassment end. WMOV Channel 4 in Saint Louis has the full story, you can read it here . RELATED Hey GOP, Congress and FTC Stop Listening to Lobbyists and Groups Like ACA International

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Debt Collector Threatens to Dig Up Dead Daughter and Hang Body From Tree

Finally A Debt Collector Charged With Fraud

November 7th, 2010. Published under Fraud. No Comments.

Oklahoma based Federal Cash Advance of Oklahoma LLC (aka CASHMAX, Fed Cash, TOPCASH, Cash Service Center) allegedly sent deceptive collection letters to debtors that contained a Dallas (Texas) County clerk’s office forged signature and bore the official seals of Texas and Dallas County. The letters also contained phony court case numbers and included improper / illegal criminal allegations. Unsecured debt is a civil matter and not a criminal matter yet nefarious collections agencies will often misuse the term ‘criminal prosecution’ to extort consumers into making payments. To be noted that these tactics are illegal. “The notice letters illegally threatened criminal prosecution, referenced a phony “case numbers” and cited fictitious criminal penalties of up to five years in prison and heavy fines.” ~ Consumer Affairs “Attorney General Greg Abbott on Friday announced a temporary restraining order against Patrick D. “Dylan” White and Federal Cash Advance of Oklahoma LLC, based in Norman. The company did business as CASHMAX, Fed Cash, TOPCASH and Cash Service Center.” ~ Bloomberg Business Week “Texas has sued a payday lender that allegedly misrepresented itself as a government agency in some mailings”. ~ Lubbock Online Last week I reported on a collection company Unicredit America Inc that allegedly set up a fake courtroom and sent fake Sherriff’s to debtors homes. The lobbying group and trade industry organization ACA International continues to lay claims that collection abuse is a rare occurrence yet more and more illegal collections are appearing in the news. My question is how is it that Congress and the Federal Trade Commission minimize the illegal activities of the collection industry and continue to turn a blind eye on illegal collections. It’s is time to criminalize illegal debt collection activities. It is the only way to end debt collection abuse that consumers endure on a daily basis.

Debt Collectors Threatening To Sue? Freeze Your Credit Right Now

November 6th, 2010. Published under Fraud, Scams. No Comments.

Having financial problems? Are the debt collectors hounding you? If the collection attempts are fairly recent (3-6 months) then you should freeze your credit files with all three major credit reporting agencies. When you freeze your credit your original creditors can still access your credit reports. However, third parties such a collection companies and attorneys generally cannot. The last thing you need while enduring financial difficulties is being served with a civil lawsuit over a debt. If you never heed any of my advice, do this one thing immediately. It may save you a lot of future grief of having to respond to a debt lawsuit. From my own personal experience, several law firms have “dipped” into my credit reports, and subsequently filed civil lawsuits (I beat them all to date in court though). Since freezing my credit back in 2009 the lawsuits stopped. I truly believe that law firms access consumers credit reports to determine if a consumer is worth suing (lawsuit fishing expeditions). While it is difficult to prove that a law firm has accessed your credit reports for litigation, it might be worth pursing to put them on notice that you will fight back. The Fair Credit Reporting Act (FCRA) doesn’t not allow accessing a consumers credit reports for litigation purposes as it is not a business to consumer transaction. If a law firm other entity access your credit reports after you freeze them, it may mean you can sue them and the credit reporting agency. Of course this doesn’t apply to original creditors that you have obtained credit from in the past. In most states you can voluntarily freeze your credit with the three major reporting agencies Equifax – https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp Experian – https://www.experian.com/consumer/cac/InvalidateSession.do?code=FREEZE TransUnion – http://www.transunion.com/corporate/personal/fraudIdentityTheft/fraudPrevention/securityFreeze.page Be careful with the TransUnion website, they will try to enroll you in other services like mostly useless monthly credit monitoring. Another good reason to freeze your credit whether you are having financial difficulties or not is that it will reduce the chances of identity theft and is much cheaper than paying a company every month to “monitor” your credit. You can always temporarily thaw your credit report so you can apply for credit. Not sure what’s on your credit or who has accessed your credit reports? Visit the Federal Trade Commission (FTC) website to access your reports for free via AnnualCreditReports.com . (Again be watchful when accessing your TransUnion website, they will try to sell you services even though the report is 100% free). Be smart and freeze your credit today.

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Debt Collectors Threatening To Sue? Freeze Your Credit Right Now

Florida Judge A Hero In My Eyes–Dismisses 155 cases, Refers Collection Firm To The Florida Bar

November 1st, 2010. Published under Fraud, Scams. No Comments.

A Naples Florida judge, Vince Murphy, dismissed 155 debt lawsuits filed by Stone Colman & Gonzalez Arbitration LLC (owned by William and Blanchi Dugatkin of Las Vegas and Palm Beach County) for defects in it’s legal filings. The judge also had concerns that the the firm may have been practicing law illegally. Despite the fact that the cases were dismissed based on incorrect filings, I do think that Judge Murphy is a consumer hero. Rather than sit back and let collection firms prostitute his courtroom he stood up and made it clear that this behavior would not be tolerated. It’s a shame that more judges hearing civil debt cases, don’t do the same. “A Las Vegas couple convicted of trying to solicit funds for a fake presidential campaign fundraiser in Washington, D.C., is now being accused of trying to illegally collect medical debt in Collier County.” ~ source Naples News Perhaps the legal system is beginning to take notice of questionable debt lawsuits and will take action. Being that the Federal Trade Commission (FTC) and state law enforcement rarely take action, perhaps the legal system will begin to sift the “chaff from the wheat”. Consumers should not rely on the legal system or enforcement to do anything. Consumers must take action, respond and fight back against debt lawsuits.

Debt Collector Unicredit America Inc Accused of Setting Up Fake Courtroom

October 30th, 2010. Published under Business Scams, Scams. No Comments.

The ACA International (lobbying Group for the Collection Industry) continually tells congress that debt collection abuse if few and far between yet many stories are making headlines such as this one. According the several news outlets a Michigan Attorney General have filed suit against Unicredit America Inc, for false, misleading and coercive collection tactics. Apparently the company set up a fake courtroom completely with fake judge. In addition the ‘court’ had fake deputies that threatened debtors with arrest. “Authorities charge that Unicredit used civil court subpoenas to summon consumers to fake court hearings that were used to intimidate consumers into providing access to bank accounts, making immediate payments or surrendering vehicle titles and other assets. Sometimes, the complaint charges, Unicredit employees were sent to consumers’ homes in order to retrieve documents or have consumers sign payment agreements. Consumers also allegedly received dubious ‘hearing notices’ and letters — often hand-delivered by individuals who appear to be sheriff deputies — which implied they would be taken into custody by the Sheriff if they failed to appear at the phony court for ‘hearings’ or ‘depositions’.” ~ GoErie.com As I have always said that greed in the collection industry spurs many to break the law, harass consumer and to stop to whatever is necessary to collect money. This news item just goes to show that the Federal Trade Commission (FTC) hasn’t taken the collection industry seriously and that the accounts receivables (aka collection industry) does need further and more stringent regulation. Many consumers are being harmed by such activities, unfortunately the legal system and regulators are slow to act on behalf of those harmed. My best advice to consumers being illegally being harassed or abused is to forego any complaint process and sue bad collectors, either by finding a consumer protection attorney or by filing a lawsuit themselves (pro se). The only way to stop debt collector abuse is by hitting them in their wallets. Until such time that illegal collection becomes financially unfeasible, the abuse will not stop.

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Debt Collector Unicredit America Inc Accused of Setting Up Fake Courtroom

The Federal Trade Commission Continues To Turn a Blind Eye on Debt Collection Abuse

October 25th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

I am sick and tired of clueless journalists recommending that consumers report collection abuse to the Federal Trade Commission. While it is good that consumers should report illegal debt collections to the FTC, the problem is that the Federal Trade Commission rarely takes action against companies that condone collection harassment. Let’s take a look at the number of FTC enforcement actions against debt collectors in recent years:

Debt Collector Harassment Should Be A Criminal Offense

October 24th, 2010. Published under Fraud. No Comments.

Debt collectors break the law all the time, they harass and mentally abuse consumers as well as use illegal tactics to get money. Around here we call that extortion and sometimes terroristic threats, both of which are criminal charges. Let’s say for instance that I call people and threatened them and then demanded money? I would probably end up going to jail. If I called people up randomly and hurled racial insults and imaginary threats, again I would probably end up in the county jail for my efforts. How is it that debt collectors (and the companies they work for) often utilize such tactics get away with this? If they are caught it is a mere civil offense? It is a miscarriage of justice to allow companies and their employees to get with a mere slap on the wrist or a monetary fine. State and federal laws need to change and make such abuse criminal. If the Federal Trade Commission and states want to really put an end to consumer abuse

Debt Collector Allied Interstate Will Pay $1.75 Million Settlement for Harassment

October 21st, 2010. Published under Business Scams. No Comments.

All I can say is that it’s about time that the Federal Trade Commission started doing something about debt collection abuse, harassment and illegal collection tactics. Several years ago I myself endured dozens after dozens of phone calls every day from Allied Interstate. Causing a telephone to ring repeatedly to harass is a violation of the Fair Debt Collection Practices Act (FDCPA). If I knew then what I know now I would have sued the literal pants off of Allied Interstate. Consumers I encourage you to take action for any debt collection harassment or illegal tactics. Find a lawyer or sue them yourselves. This is the first collection in a long while that the FTC has taken action against. I hope that it is the first of many. To resolve Federal Trade Commission charges, one of the nation’s largest debt collectors will pay $1.75 million for allegedly making repeated telephone calls to collect from the wrong person, to collect the wrong amount, or both. The settlement is the second largest civil penalty obtained by the FTC in a debt collection case. From the FTC: “Debt collectors had better make sure their information is accurate, or they could end up paying a big penalty,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.” According to the FTC’s complaint, between 2006 and at least 2008, Allied Interstate, Inc. continued collection efforts even after consumers told the company they did not owe the debt, without verifying the accuracy of the disputed information. Allied is a Minnesota corporation that works out of offices in the United States, Canada, India, and the Philippines. The company also allegedly made improper harassing phone calls to consumers, using abusive language or calling many times a day for weeks or months, sometimes hanging up when the calls were answered. In addition, the complaint charges that Allied made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. The complaint alleges that these practices violated the Fair Debt Collection Practices Act and Section 5 of the Federal Trade Commission Act. In addition to the monetary penalty, the proposed consent decree requires Allied to take specific steps whenever (1) a consumer disputes that he or she owes the debt or the amount of the debt, or (2) a reasonable person would consider the information on which Allied is relying to collect the debt to be implausible, facially unreliable, or missing essential information. In either circumstance, Allied must either close the account and end collection efforts or suspend collection until it has conducted a reasonable investigation and verified that its information about the debt is accurate and complete. If Allied cannot substantiate that the consumer owes the debt, the company cannot sell the debt or provide it to any business other than the client from which it obtained the debt. The consent decree also bars Allied from: Making false statements to collect a debt or obtain information about a consumer; Making claims that a debt is owed or about the amount without a reasonable basis; Asking a third party for a consumer’s location information more than once without that third party’s consent or a reasonable belief that the person’s earlier response was wrong or incomplete and that the person now has correct location information; Communicating with third parties about a consumer’s debt without the consumer’s consent or court permission; Using obscene or profane language or harassing consumers with repeated phone calls; Making any other false or misleading statement in collecting a debt, including threatening action it does not intend to take; and Violating the Fair Debt Collection Practices Act. The Commission vote to authorize staff to refer the complaint and the consent decree to the Department of Justice for filing was 5-0. The documents were filed in the U.S. District Court for the District of Minnesota.

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Debt Collector Allied Interstate Will Pay $1.75 Million Settlement for Harassment

Consumer Legal Resources to Fight and Beat Debt Collectors

October 17th, 2010. Published under Business Scams, Scams. No Comments.

Whether you are filing a case against a debt collector for FDCPA or FCRA violations or filing a brief in support of a motion that you filed there are several excellent legal resources online that are completely free. During the process of writing my first pro se consumer defense guide ( Stick it to Sue Happy Debt Collectors ) and while working on my upcoming pro se consumer litigation guide ( Suing Abusive Debt Collectors ) I lived, ate and slept legal research. Quite literally thousands of hours’ worth of research to date. Probably more than the average college law student does during his studies to become an attorney. There isn’t a day that goes by that I don’t do some sort of legal reading or research. While I do have access to several legal publications, I find myself on a daily basis looking at new court decisions and making notes on legal citations using my favorite online resource. Several of them are updated daily, so I can easy find new information within days of a decision being made. The basis of building a good case or even defending one relies mainly on prior legal decisions. I look for similar cases and the subsequent decisions when I draft civil complaints against collection agencies or in defending myself from collection lawsuits. All it takes is a bit of reading and then using the information to your advantage. While I will not go into the details of drafting a civil complaint, or drafting a motion or a brief in this article, I will give you several pointers and resources. Unbelievably Google has a very good resource for legal opinions (with citations) called Google Scholar ( http://scholar.google.com/ ). When Google Scholar first went a live it was a bit sparse in resources, but has since added quite a bit of new information. I find much of the legal resources that I use in my books via Google Scholar. Example from Google Scholar on FDCPA violations by a debt collection company (citations) Foti v. NCO Financial Systems, Inc., 424 F. Supp. 2d 643 – Dist. Court, SD New York 2006 The provisions of the FDCPA are clear that in initial or subsequent communications, it must be disclosed that the communication is from a debt collector. – in DROSSIN v. NATIONAL ACTION FINANCIAL SERVICES INC., 2009 and 3 similar citations —holding collector’s identification of itself by name in pre-recorded message did not satisfy FDCPA’s requirement that it disclose that the communication is from a debt collector – in Costa v. National Action Financial Services, 2007 and 4 similar citations —a case also involving Defendant NCO, where the court held that a pre-recorded message left on a debtor’s voicemail was a “communication” under the FDCPA. – in Inman v. NCO FINANCIAL SYSTEMS, INC., 2009 and 3 similar citations —rejecting a debt collector’s assertion that its voicemail message was not a communication because it did not contain information regarding a debt – in Mark v. JC CHRISTENSEN & ASSOCIATES, INC., 2009 and 2 similar citations As such, the call is “in connection with the collection of any debt,” within the meaning of 15 USC

A New Tactic To Get Junk Debt Collectors Off Your Back?

October 12th, 2010. Published under Business Scams, Fraud. No Comments.

A reader, I will refer to him as M.W. emailed me after I published a news article and blog post titled, “ Watch Out Kids Debt Buyers Are Hot On Collecting Defaulted Student Loans ” on October 11, 2010. M.W. claims that the form letter below works like a charm with third party / junk debt collectors. Basically when a non-original creditor contacts him, he sends them a validation letter and an invoice for “compelled services rendered”. M.W. states that the collector doesn’t contact him again. If nothing else, it shows the debt collector that they will have a fight on their hands in the event that they bother the sender again. Below is the form letter that M.W. uses. I would like to thank M.W. for sharing this with me and allowing me to share it with others. I can’t wait to put it to the test myself. If nothing else the form letter is quite enlightening. If anyone uses this form letter, please do let me know if it is effective I am very interested as I am sure many other consumers will be as well. My personal belief is “nothing ventured, nothing gained”. —– Begin Form Letter —- To: [Company] Form CA-F.U.-1 [Address] [City, State, Zip] From: [My Name] [My address] [My City, State, Zip] [Date] NOTICE AND DEMAND TO CEASE AND DESIST COLLECTION ACTIVITIES PRIOR TO VALIDATION OF PURPORTED DEBT. 1) Pursuant to the Fair Debt Collection Practices Act, 15 USC 1601, 1692 et seq., this constitutes timely written notice that I decline to pay the attached erroneous purported debt which is unvalidated and unattested, and which I discharge without dishonor, on grounds of false representation, and fraud. A) No contract bearing my signature showing me being named as a party with [Company] was attached. B) No copy of a Judgment bearing my name, was attached. C) By law, I am required to deal with Original Creditors not third party collections agents. D) No copy of your authority to operate within the State of [Your state] was attached. E) No copy of any receipt, or other such transaction document showing [Company] as the primary party was attached. F) I have not opened an account with [Company] Valid proof of my opening an account with [Company] was not attached. 2) 15 USC 1692 (e) states that a “false, deceptive, and misleading representation, in connection with the collection of any debt”, includes “the false representation of the character or legal status of any debt” and further makes a threat to take any action that cannot legally be taken a deceptive practice. 3) Such notice omits information which should have been disclosed, such as vital citations, disclosing the agency’s jurisdictional and statutory authority. Said notice further contains, false deceptive and misleading representation, and allegations intended to intentionally prevent the truth for the purpose of inducing one, in reliance thereof, to part with property belonging to or in trust of them and to surrender certain substantive legal and/or statutory rights, resulting in a legal injury. 4) Pursuant to 15 USC 1692 (g) (4) Validation of Debts, if you have evidence to validate your claim that the attached presentment does not constitute fraudulent misrepresentation and that one owes this alleged debt, this is a demand, that within 5 days, you provide such validation and supporting evidence to substantiate your claim. Until the requirements of the Fair Debt Collection Practices Act have been met and your claim is validated, you have no jurisdiction to continue any collection activities. A. Incomplete copies will not be acceptable; B. Unreadable copies will not be acceptable; C. Copies with more than 1/100 th of the pages covered up or hidden behind objects will not be acceptable; D. Copies without the name of [Company] named directly as a first party, will not be acceptable; E. Copies of contracts with any other person, agency, man or woman, will not be acceptable unless my name is also specifically listed as a primary party, and [Company] is also specifically listed as a primary party. 5) This is constructive notice that, absent the validation of your claim within 5 days, you must cease and desist any and all collection activity and are prohibited from contacting me, through the mail, by telephone, in person, at my home, or at my work. You are further prohibited from contacting my common employer, my Bank, or any other third party. Each and every attempted contact, in violation of this act, will constitute harassment and defamation of character and will subject your agency, and you to a liability in your individual personal capacity, who take part in such harassment, and defamation, to a liability for actual damages, as well as statutory damages of up to $1000.00 per day for each and every violation, and a further liability for legal fee’s to be paid to any council which I may retain. Further, absent such validation of your claim, you are prohibited from filing any notice of Lien or Levy and are also barred from reporting any derogatory credit information to any credit reporting agency, regarding this disputed purported debt. 6.Finally, you are ordered NEVER again to contact me unless said contact contains a copy of a valid contract of which you and I are named as primary parties . Since that will never happen, I do not expect to hear from you again in any way, shape, or form. If I do, I will charge you 500.00 for compelled performance. Be advised, your letter constitutes a compelled performance. This is my response to that compelled performance. Any further attempts will be seen as willful criminal acts, which will include, but not be limited to: using the US mails to communicate a threat, Using the US mails to commit extortion, constructive fraud, willful neglect, and any other charges I can think before the date of filing criminal complaints and/or lawsuits. And I will seek damages for having to file said suits. Executed on Date:[date] Signed: ___________________________ [name[]

Watch Out Kids Debt Buyers Are Hot On Collecting Defaulted Student Loans

October 11th, 2010. Published under Scams. No Comments.

It seems that the next hot collection industry target is going to be defaulted student loans. So kids get ready for debt collectors to begin harassing, and possibly abusing you verbally and mentally while they attempt to collect on your old student loan. There are many collectors out there that will say (or do) anything to get you to cough up the money, including filing lawsuits against you. Once a student loan, Federal or otherwise, is sold by the original creditor to a third party such as a debt buyer or junk debt collector the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) protection comes into full force. Another words it becomes a debt just like any other consumer debt (credit card, bank load, payday loan, etc.). It’s my opinion that the debt buyers / junk debt collection companies see younger adults as easy targets, and assume you will run to mom and dad and ask them to bail you out. Be aware most that most collector threats are nothing more than that, just empty threats. Debt collection harassment and abuse is illegal and you need to know that. While I do advocate paying debts, the ballgame changes completely when collectors use illegal and abusive collection tactics to scare you into pay them. What debt collectors cannot do: 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 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. In addition, a debt collector cannot represent that they are attorneys if they are not, or imply that communications are from an attorney. 15 U.S.C. 1692e(3). If a debt collector does anything outlined above (or similar) it is your obligation to hold them accountable and sue them. Who knows the collector may end up cutting you a check for the abuse or harassment. While the Federal Trade Commission has been tasked with enforcing the Fair Debt Collection Practices Act they rarely take any enforcement action against illegal debt collection. Consumers *must* take action. You can file FDCPA civil complaints yourself in any recognized court of find a consumer protection attorney to help you go after bad collectors. Most good consumer protection attorneys do not require upfront fees to help you sue collectors as they get a small percentage of any monetary award or settlement that they obtain on your behalf. A good place to begin searching for a consumer protection attorney is Martindale ( www.martindale.com ). If you have been harassed or abused by a collector I encourage you to find and retain an attorney. The only way to put a stop to illegal collections is for consumers to fight back using the court system.

Debt Collector Nationwide Credit Sued for Calling Consumers Parents

October 7th, 2010. Published under Business Scams, Scams. No Comments.

Nationwide Credit a debt collector out of Kennesaw Georgia has been sued in Federal court for allegedly violating the Fair Debt Practices Act (FDCPA). Due to harassing and abusive communications, calling the plaintiff parents and discussing the alleged debt,

Cash Reward / Bounty for Illegal Debt Collections Still Being Offered

October 4th, 2010. Published under Fraud. No Comments.

Last year I offered a cash reward for proof of illegal debt collection practices. I now have a group funding the rewards and am looking for proof of illegal debt collection practices and collusion to abuse consumers in the accounts receivables industry. We are looking specifically for documentation of collection abuses (but not limited to) from the collection collection companies. If you work for or have worked for the following debt collection companies and/or collection law firms today is the day you can clear your conscience and know that you have done the right thing. Portfolio Recovery Associates Midland Funding NCO Financial Group Worldwide Asset Purchasing II, LLC Nationwide Credit Mann Bracken Phillips & Cohen Associates LTD West Asset Management Frederick Hanna & Associates We are also looking for documentation of collection and abuses by the following original creditors (aka banks, credit card companies and loan companies): American Express Centurion Bank Citibank Wells Fargo CapitalOne Discover Chase You can contact us confidentially with the basics and we will contact you. Your name and involvement will remain 100 percent confidential. Note that we do require physical proof that illegal debt collection practices or collusions to be documented. You can contact us here .

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Cash Reward / Bounty for Illegal Debt Collections Still Being Offered

Radio Interview With the Author of Stick It To Sue Happy Debt Collectors on KSVY Sonoma

September 28th, 2010. Published under Fraud, Scams. No Comments.

I’ve been meaning to post the radio interview regarding my book Stick it to Sue Happy Debt Collectors. KSVY Sonoma California, interviewed me regarding consumers defending themselves against debt collectors in court. Jamie Waterman is the host and I think you will get a lot from the interview Listen to Allen’s radio interview regarding debt collectors on KSVY Sonoma California with host Jamie Waterman, Click here to listen to the broadcast . (under 5mb, MP3). Allen is the author of the book “ Stick it to Sue Happy Debt Collectors ”, that has saved many a consumer from the clutches of abusive debt collectors and shady debt collection law firms. Allen has a new book nearly ready for publishing titled, “ Suing Abusive Debt Collectors, Don’t Get Mad Get Even ”, that shows consumers how easy it is to sue debt collectors for illegal debt collection tactics and violations of consumer rights. Allen Harkleroad is a veteran when it comes to beating bad debt collections, whether it defending himself in court or suing collectors for violating the law. Allen is an avid and judicious consumer advocate who enjoys helping others. In addition to consumer advocacy he enjoys writing and blogging on various technology and business subjects. Follow Allen on Twitter Contact Allen via email Other books by Allen Harkleroad Stick it to Sue Happy Debt Collectors In this book, I cover original creditor lawsuits and junk debt buyer lawsuits (3rd party collectors), and the similar ways that you will deal with them. I will also cover strategies to keep debt collectors off your back before any lawsuits are filed and how and when to sue a debt collector for violations of the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). The Care and Feeding of a Sucks.com “The author, Allen Harkleroad, has gone toe-to-toe with many multi-billion dollar companies on the planet for publicly criticizing their products and services on the Internet. Many times these companies used legal intimidation or threats to force him to shut down his sucks.com websites. The scare tactics didn’t work as Allen understands his first amendment legal rights, and copyright / trademark law. He shares his knowledge and expertise with you.” Confidential SEO Secrets “I’ve been building websites since early 1994. To get visitors to my websites I solely rely on search engine referrals for the bulk of my traffic. I don’t buy advertising or market my websites in any other way than search engine optimization. I eat, sleep and breathe search engine optimization. My websites consistently rank in the top 5 results for the keywords I target. My books shows you how to do the same.”

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Radio Interview With the Author of Stick It To Sue Happy Debt Collectors on KSVY Sonoma

Senator Al Franken To Introduce Legislation To Curb Debt Collection Abuse

September 27th, 2010. Published under Fraud. No Comments.

According the the Minneapolis Star Tribune, Senator Al Franken will be introducing legislation aimed at curbing debt collection abuses. Apparently Senator Franken became quite shocked by the increasing number of lawsuits being filed by consumers against abusive debt collectors, and the tactics being used by the debt collection industry. In at least one state, debt collectors are using arrest warrants against defendants that do not show up in court when sued. Being sued over a debt is a civil matter, not a criminal matter judges should be the only ones that have the authority to issue an arrest warrant for failure to appear.

Announcing a New (Upcoming) Consumer Book – Suing Abusive Debt Collectors – Don’t Get Mad Get Even by Allen Harkleroad

September 26th, 2010. Published under Business Scams, Fraud. No Comments.

Learn How to Sue Debt Collectors that break the law and stop the debt collectors cold. Don’t get mad, get even! Allen Harkleroad’s upcoming consumer book will be in an easy to understand step-by-step guide with real life examples, stuffed full of tips and tricks on stopping debt collectors cold and profiting from their abuse. The books covers fair debt collection practices act (FDCPA), fair credit reporting act (FCRA), telephone consumer protection act (TCPA) and truth in lending act (TILA) violations that debt collectors frequently use to abuse consumers. The official website for “Suing Abusive Debt Collectors is located at www.suingdebtcollectors.com (be sure to visit and bookmark it). ISBN: 0-9789997-7-0 ISBN-13 978-0-9789997-7-3

BUSTED: Junk Debt Collector Phillips & Cohen 866-504-9784 You’re About To Be Sued

September 23rd, 2010. Published under Fraud, Scams. No Comments.

To whom it may concern at Phillips & Cohen, the debt collector that called me today and referenced a file number and told me to call them back or a would be pursued, is the same guy on that called me from another collection agency on May 2nd 2007 and told me he had fraud charge pending. Dirty debt collector scare tactics. I have included the voice mail from today and the one from 2007. I can assure you any further funny business on your part will result in my taking legal action against all involved. I’ve sued quite a few debt collectors for violating state and federal law and don’t have a problem doing so again. Scare tactics such as these are a wasted effort on your part. Being that you are a junk debt collector your sole option is to file suit naming me as defendant. Be aware though, I know how to beat the likes of you in court. So bring it on. Also just to so you are aware the number you are calling is a business phone. You will be receiving a cease all communication letter via certified mail. I would suggest that you abide by the cease and desist. Listen to the first MP3 file below, then listen to the older one, you will notice distinct voice characteristics in both recording, pay particular attention in the second This is a typical bad debt collector scare tactic and also illegal. Today Call from 866-504-5035 (09/23/2010) The old call in 2007, same guy, threatening fraud charges . (note the distinct similarities, same guy different name) Of course ACA International claims illegal and abusive debt collections are few and far between, yet here is the same guy, with two different names, working at two different collection agencies, doing the same sort of scare tactics. All I can say is come and get me (in court) so I can put you in your place. I had previously contacted the Federal Trade Commission about the older voice mail and now that I know that Phillips & Cohen and Worldwide Asset Purchasing are behind the calls I will forward the new information to Robin Rock, FTC attorney in Atlanta that had previously contacted me about the first call. When the FTC is through with you

Repost: Something Harassing Debt Collectors Rather You Didn’t Know

September 17th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

There are many unscrupulous debt collectors out there that violate the Fair Debt Collection Practices Act (FDCPA) many times each day. Things like calling your neighbors and telling them you are a dead beat, or telling you they are sending the police to put you in jail. By law they cannot do either of these nor can they use underhanded collection tactics (lying to you, abuse you, etc.) Before I go any further you need to know a few things. 1. Get caller ID on your phone (it’s going to be your best friend) 2. Document every call made to you by a debt collector 3. Save all answering machine messages (especially the ones where they tell you lies about sending you to jail, etc.) 4. When the debt collectors tells you they are recording the call, jokingly tell them you are recording it to (but make it sound like you are joking). Record the conversation. This will give you permission to record it as they don’t say no. Or if you are quick enough look up the phone number they care calling from and find out where it is originating from (reverse number lookup), then see if you and they are in one-party consent states (only requires one parties consent to record the conversation). 5. When you catch them violating the FDCPA find yourself a Consumer Protection Lawyer. Nearly all of them work on a contingency basis (no cost to you) and many offer

One Good Thing In A Bad Economy, Junk Debt Buyers Are Losing Their Shirts

September 15th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

Personally speaking I enjoy seeing junk buyers going out of business. In a bad economy and buy old junk (bad) debts is a surefire way to go out of business. Junk Debt buyers by old uncollectible debts for a couple of cents per dollar and try collecting the full amount of the debt (and in my opinion is unjust enrichment). Today in the news a junk debt buyer, Hudson & Keyse, LLC

Bad Debt Collection Companies Being Hit Where It Hurts In The Wallet

September 10th, 2010. Published under Scams. No Comments.

It’s good to see that nefarious debt collection companies are being fined for bad debt collection tactics. Below are several headlines that really have made my day. With more and more consumers beating debt collectors in court and aggressive state Attorney Generals’ going after abusive debt collection companies there will eventually be a lot less collection abuse. West Virginia AG Settles with National Recovery Services (aka Debt Collectors Carpenter Capital) Texas AG Goes After American Home Mortgage Servicing Maryland Beats Back Worldwide Asset Over Court Abuse Minnesota Debt Collection Agency Given the Boot (Five Star Group of Minnesota and Commercial Surveillance Bureau) Too bad the Federal Trade Commission takes their sweet time going after unscrupulous debt collection companies. It is high time that federal collection laws, such as the Fair Debt Collection Practices Act (FDCPA), be enhanced to exact more monetary fines from bad collection agencies.

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Bad Debt Collection Companies Being Hit Where It Hurts In The Wallet

Debt Collectors Beware Federal Court Rules One Party Consent Telephone Recordings Are Okay

August 24th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

Over the last several years there has been an ongoing debate regarding the lawfulness of one party telephone conversation recording, such as recording a debt collector making illegal, abusive and threatening phone calls. To date consumers only had their own state laws one the legality of one-party consent phone calls (only one person being aware or consenting to the recording). The US 2nd circuit

Abusive and Stupid Debt Collector Headlines of the Week

August 20th, 2010. Published under Business Scams, Scams. No Comments.

Is Debt Collector H P & Associates of Jacksonville FL Violating the FDCPA?

August 2nd, 2010. Published under Business Scams. No Comments.

I received an email from an individual and from the tone of her email I felt that she was confused and afraid. Below is an excerpt from her email. “I received a call this evening from HPC collections, based out of Florida, claiming they were “releasing my case” to the local authorities to come collect the debt (me) by 7 PM if I did not pay the debt in full. This totally freaked me out and the “compliance officer” stated there was nothing he could do about it as “you don’t pay us”. Knowing they are a debt collection agency, I’m wondering who “I pay.” ~ Amy G. I did ask her to clarify the name of collection agency that called her and her response was that “ H P & Associates-HPC.

Still Having Wages Garnished by Mann Bracken Debt Judgment? Here is What to Do

June 21st, 2010. Published under Scams. No Comments.

According to an attorney that is suing Mann Bracken on behalf of a consumer, Cory Zaidel has stated that consumers that are under a wage garnishment by Mann Bracken should file a motion to quash (set aside) the garnishment as the money being garnished may not be going to the creditor or debt buyer that obtained a judgment against them. “The claims are mounting,” said Towson consumer attorney Cory L. Zajdel, who is representing a Howard County woman in a suit against Mann Bracken for allegedly unfair debt-collection practices. Consumers whose wages are still being docked should file paperwork to quash the garnishment with the court that handled the case, Zajdel said. Maryland’s district courts have the necessary forms, he said. His concern is that money going to the defunct Mann Bracken might not make it to the creditors. ~ Baltimore Sun In addition the court appoint receiver for now defunct Mann Bracken may sue ‘parties’ that may have caused the demise of Mann Bracken. My personal opinion (Allen Harkleroad, author of Stick it to Sue Happy Debt Collectors ) would be to file a motion to Quash and/or a Motion to Vacate any prior judgments that Mann Bracken may have obtained against consumers, especially judgments with wage garnishments.

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Still Having Wages Garnished by Mann Bracken Debt Judgment? Here is What to Do

Pro Se Consumer Gets Default Judgment Vacated Using “Stick It To Sue Happy Debt Collectors” Book

June 18th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

I love reading success stories of consumers that have used my book “ Stick it to Sue Happy Debt Collectors ” to beat debt collection law firms that file lawsuits, but have no actual proof that a debt is owed. In this case a Pro Se consumer that purchased the book used what they learned to have a default judgment vacated. “I just wanted to let you know that we were able to remove a judgment after 6 months using your book helped my confidence and knowledge. After the hearing the lowlife attorney approached me to talk about it and i told him there’s nothing to talk about now but you will be in court where i sue you for fraud, FDCPA, FCRA and other violations. That felt soooo good!” ~ S. Brunelle 6/17/2010 Below is a link to the Motion they filed to get the judgment vacated, note that I have REDACTED personal information of the consumer to protect their privacy. View the Motion (PDF format) Consumers defending themselves can win in court and the book “Stick it to Sue Happy Debt Collectors” **WILL** show you how to do it yourself as a pro se defendant. Consumers don’t have to be afraid on debt collection lawsuits any more. I show you have to stick it right back to the debt collectors and their greedy attorneys that will do anything to get a judgment. Here are what other consumers that bought the book have to say (one is a consumer attorney!): “I knew nothing about any of this and I feel like I’ve gotten quite an education following your book. I’m still learning and don’t understand some of the stuff. But talk about sticking it to them….WOW…. after typing up my Discovery to the Plaintiff. I know why you never had to go any further in any of your cases, you stuck it to them alright ! The most dedicated person would throw in the towel rather then gather all that evidence.” ~Petra K. “Thanks for taking the time to write and publish your book. As a someone who has been studying this issue for quite sometime, I can say without circumlocution that your book is hands down the BEST currently available on the market. Indeed, I recognize much of the research in it having spent countless hours over the past 2 years researching debt collection defense, federal consumer rights statutes such as the FDCPA and the FCRA, the “consumer bibles” available from the National Consumer Law Center, et cetera.” ~ CJ Mandolin “Allen’s book is truly the “Holy Grail” for fighting ruthless debt collectors. Most of the examples in the book can be used as is, or slightly modified for your particular state. It will take a little work on your part, but with internet research and Allen’s guidance, your confidence and ability to fight your way out of a debt burden changes from being on the defensive, taking all the collection blows, to going on the offensive with the information you will need to win. Knowledge is power and Allen’s book is filled with the right knowledge and power. Allen also provides the strategy you need. Once you know how the game is played, you will be more effective. Also he gives an excellent explanation of the examples he uses.” ~ Bob P. “I just got out of court, and thanks to the information we learned in your book, I was able to have the judgment vacated. I am starting from scratch in answering the original summons, and will be employing the tips from your book in my response. Thank you so much for all of the help you have provided.” Best Wishes, Kerri A. “Thanks again for the inspiration to use the real party in interest defense in a motion to dismiss, and for the asset-backed securities info. I do think that some judges will be sympathetic to this. If nothing else, it gives us another issue to turn the tables on the collection agencies after they file their motions for summary judgment. Very good resource for pro-se debtors. Following the instructions in this book should win most creditor lawsuits.” ~ Attorney Brett W. Clark, Niketas & Clark, LLP www.NiketasLaw.com “Thank you, with your book I won my first case now working on the next.” ~ H Dodson “Allen you ROCK!!! Dan and I were saying today just how blessed we feel to have found you and your book!” ~ Charlotte V. “I meant to tell you that I read the book on Friday and it is incredible. I love the motion to dismiss. Powerful and easy to understand.” ~ Barbara www.nextlevelunlimited.net “Hi Allen, I got it downloaded just fine and am finding it astoundingly useful. Gives me some hope that I have a chance to defend my cases. I wish I had come across this book before I filed my answer, but I think I did well enough to keep the pressure on. Thanks again for the help. Much appreciated, and well worth the price.” ~ Rick T. “What can I say – this book instantly saved my life! Mr. Harkleroad is “one of us.” He’s been there, done that, and he knows how hideous it feels to be victimized by aggressive Debt Collectors. He writes with common sense and expertise – a rare combination. After spending hours online trying to come up with my own solution, I took a chance and purchased this book and I am so glad I did. Why shouldn’t I do everything legally possible to protect myself? These are real, practical and proven solutions. Many thanks to Allen Harkleroad for helping to empower hard-working people and level the playing field against the Debt Collecting Goliaths.” ~ J. Silva “One of the invaluable characteristics of a great man or woman is their ability to “discern the times” and provide for what is needed in that season. Truly, Allen possesses that ability! His discernment of the times is vividly displayed in his “RIGHT ON TIME” book, “How to Stick It to Sue Happy Debt Collectors”! This book came to me in one of those “need it now” moments and after devouring the first 50 pages, I sat with jaw dropped at the information contained within these pages. How could so much information be out there without my knowing about it? Why have I felt so defeated as I swam against the tide of Debt? Quoting my favorite author, I will tell you how..”My people are destroyed by lack of knowledge!” Hosea 4:6. As I sat with bills in hand, and the phone ringing off the hook, watching gov’t bail outs of bank after bank, I would often ask myself “who is looking out for the little guy?” I have found him! Allen Harkleroad! The information provided in this book is not simply “he said, she said” second hand information that sounds good on paper. This book contains tried and true step-by-step tactics formed from investigation that would take years for the “common man” to pull together. (And he did!). Allen has implemented this information into his own situations, stood as David against Goliath, and WON!!!

Debt Collector Hanna and Associates Wins Battle with Georgia, Ultimately loses the War

June 12th, 2010. Published under Business Scams, Fraud. No Comments.

A recent State of Georgia Appeals Court ruling ( STATE v. FREDERICK J. HANNA & ASSOCIATES, P.C. ) handed Frederick J. Hanna an (albeit) small victory that prevents the Georgia Office of Consumer Affairs (GA OCA) from obtaining records that may have shown that the debt collection law firm may have abused consumers, violated the Georgia Business Practices Act and the Federal Fair Debt Collection Practices Act. The ruling doesn’t prevent consumers from filing suit against the debt collector, as the decision boiled down to the fact that only the Georgia Supreme court can regulate the practice of law. I am quite sure Frederick Hanna and his attorney’s are sitting at their desks with smug smiles on their faces and slapping each other on the back. While the law firm may have won the battle with the State of Georgia for the moment, ultimately they have lost the war. “The trial court defeated the OCA’s attempt to compel the law firm’s compliance with its investigative demand by dismissing the lawsuit OCA filed. The Georgia Supreme Court affirmed the trial court’s decision, finding in part that it was an attempt to regulate the practice of law — something that is entirely within the jurisdiction of the Georgia Supreme Court to do. This is a technical way to defeat consumer protection. I agree with Justice Melton’s dissent, but we are in the minority. I note that this was a 4:3 decision. Not a landslide but, for now at least, the law in this state.” ~ Georgia Consumer Protection Attorney Joseph Segui I am quite sure that Georgia state legislators are now seeing that this legal loophole that could allow debt collection law firms to abuse consumers without fear of legal retribution is a big problem. I wouldn’t be surprised that in the near future Georgia Senators and Representatives will draft a change in the law or create new consumer protection laws to put a stop to the abuse by lawyers in the debt collection business. Who knows we may even finally see the State of Georgia more strictly regulate the debt collection industry in the state. One thing is for sure Frederick J. Hanna and Associates are now going to be a target in all of the states they do business in and with the Federal Trade Commission (FTC). Besides suing abusive debt collector attorneys, consumers can also file Bar Association complaints against lawyers that violate the law, violate ethics, or abuse the legal system to collect debts. Attorney’s and law firms hate to get sued and their second biggest fear is getting suspended or disbarred from practicing law. It only takes a few minutes to contact a particular states Bar Association to request complaint/grievance forms. The more complaints that are filed the more apt are the State Bar Associations to take action. I myself have filed several complaints against debt collection attorney’s as well as filed suit against collection law firms. The more consumers that do, the less consumer abuse that will occur. Stand up consumers and fight back, it’s the only way to beat them at their own game.Stand up consumers and fight back, it’s the only way to beat them at their own game. If you want to beat debt collection law firms then read this book, Stick it to Sue Happy Debt Collectors , you’ll be glad you did.

Ecash and GeteCash Payday Lender Charged by FTC with Deceiving Employers in Scheme to Collect Debts

April 7th, 2010. Published under Business Scams, Fraud, Scams. No Comments.

The Federal Trade Commission has charged a payday loan operation with illegally trying to garnish borrowers’ wages and using other illegal debt-collection practices. The FTC seeks to stop these practices and require the operators to surrender improperly collected money so it can be used for consumer refunds. According to the FTC’s complaint, the operators do business as Ecash and GeteCash, offering loans of up to $1,000 to be repaid from a borrower’s upcoming paycheck. They require online loan applicants to check a box indicating their agreement with loan terms. These terms include an inconspicuous statement consumers often don’t see, which states that their wages will be garnished to cover delinquent loan payments. The statement allegedly attempts to circumvent federal requirements, including a debtor’s right to revoke a garnishment agreement. U.S. law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money. According to the complaint, in letters to employers, GeteCash tries to pass itself off as having the same collection rights as the government. The FTC’s complaint also alleges that GeteCash falsely stated that consumers knew their pay would be garnished and had an opportunity to dispute the debt. In addition, GeteCash allegedly violated the law when it told employers and co-workers about consumers’ debt without their consent. The FTC alleges that, in carrying out their scheme, the operators violated the FTC Act, the Fair Debt Collection Practices Act, and the Credit Practices Rule. The defendants are Eastbrook LLC, also doing business as Ecash and GeteCash; LoanPointe LLC; Joe S. Strom; Benjamin J. Lonsdale; James C. Endicott; and Mark S. Lofgren. Eastbrook, LoanPointe, and Strom have agreed to a preliminary injunction barring them from further unlawful practices. The Commission vote to file the complaint was 4-0. It was filed in the U.S. District Court for the District of Utah, Central Division on March 15, 2010. The FTC would like to acknowledge the assistance of the Financial Management Service of the U.S. Department of the Treasury and the Idaho Department of Finance. NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .

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Ecash and GeteCash Payday Lender Charged by FTC with Deceiving Employers in Scheme to Collect Debts

Legal Precedents (Decisions) to Use When Fighting Junk Debt Collector Lawsuits

March 31st, 2010. Published under Scams. No Comments.

DISCLAIMER: I’m not an attorney and this isn’t legal advice. It is for informational purposes only. Legal information is not legal advice. ~ Allen Harkleroad I’ve been receiving a lot of email regarding Junk Debt Buy collection lawsuits. In nearly all cases the junk debt buyer seems to be manufacturing documents to use in court, or creating questionable affidavits and filing them. In nearly all cases these affidavits of account or record are hearsay be default. However if it were me I would file a sworn graduated denial with the court ( read my book ), to in effect make all affidavits filed by the junk debt collector heresy. If you do not contest the affidavits or questionable exhibits many times a judge won’t rule on them and by default allow the documents. You must question them all in court so that a judge will exclude or not allow them. Below are several legal precedents (legal decisions) that may cite as objections, and/or motions or briefs that you may in the course of defending yourself in court. Affidavits are often submitted to prove default that are conclusory and insufficient. Manufacturers & Traders Trust Co. v. Medina, 01 C 768, 2001 WL 1558278, 2001 U.S. Dist. LEXIS 20409 (N.D.Ill., Dec. 5, 2001); Cole Taylor Bank v. Corrigan, 230 Ill.App.3d 122, 129, 595 N.E.2d 177, 181-82 (2nd Dist. 1992) (where bank officer’s “affidavit essentially consisted of a summary of unnamed records at the bank,” unaccompanied by records themselves and unsupported by facts establishing basis of officer’s knowledge, foundation was lacking for admission of officer’s opinion regarding amount due on loan); Asset Acceptance Corp. v. Proctor, 156 Ohio App. 3d 60; 804 N.E.2d 975 (2004). Computer-generated bank records or testimony based thereon are often offered without proper foundation, or are summarized without being introduced. Manufacturers & Traders Trust Co. v. Medina, supra; FDIC v. Carabetta, 55 Conn.App. 369, 739 A.2d 301 (1999), leave to appeal denied, 251 Conn. 927; 742 A.2d 362 (1999). A witness cannot “testify” by regurgitating the content of business records that a witness has reviewed when the witness has not seen or heard the events in question. Such regurgitation is hearsay, plain and simple. Wahad v. Federal Bureau of Investigation, 179 F.R.D. 429, 438 (S.D.N.Y 1998); In re McLemore, 2004 Ohio 680, 2004 Ohio App. LEXIS 591, *P9 (Ohio App. 2004); Nebraska v. Ward, 510 N.W.2d 320, 324 (Neb. App. 1993).. “There is no hearsay exception . . . that allows a witness to give hearsay testimony of the content of business records based only upon a review of the records.” Grant v. Forgash, 1995 Ohio App. LEXIS 5900, *13 (Ohio App. 1995). See generally, Trujillo v. Apple Computer, 578 F. Supp. 2d 979 (N.D.Ill. 2008), condemning the inclusion in an affidavit of information supplied by others. A good case (from the debtor’s perspective) involving debt buyer affidavits is Luke v. Unifund CCR Partners, No. 2-06-444-CV, 2007 Tex.App. LEXIS 7096 (2nd Dist. Ft. Worth Aug. 31, 2007). In Unifund CCR Partners v. Cavender, No. 2007-CC-3040, 14 Fla.L. Weekly Supp. 975b (Orange Cty. July 20, 2007), the court held that a debt buyer “assignment” that does not refer to specific accounts does not establish ownership by the plaintiff, nor is testimony based on a computer screen sufficient National Check Bureau v. Ruth, No. 24241, 2009 Ohio 4171 (Ct. App., 9th Dist., Aug. 19, 2009) (document referring to transfer of accounts on Exhibit 1, without Exhibit 1, not sufficient to “prove the assignment”). “Generic” contracts that cannot be identified as pertaining to the specific account sued upon, Velocity Investments, LLC v. Alston, 2-08-746 (2nd Dist., Jan. 15, 2010), supra. Filing a single lawsuit without having in hand the means of proving it is not a violation of the FDCPA (Harvey v. Great Seneca Financial Corp., 453 F.3d 324, 330 (6th Cir. 2006)), but a practice of filing lawsuits with the intent of dismissing them if they are contested may be a violation of the FDCPA (Mello v. Great Seneca Financial Corp., 526 F.Supp.2d 1020 (C.D.Cal. 2007)). Source: Collection Defense February 2010 PDF , this document written by attorney Daniel A. Edelman has a large amount of debt buyer defenses, legal citations and other collection case information including examples of FDCPA violations. Anyone that is fighting debt collectors, especially junk debt buyers should review the document and consider making use of the legal precedents contained in it. For more information on how to fight debt lawsuits yourself (Pro Se) and beating debt collectors, be sure to read my (Allen Harkleroad) book, “ Stick it to Sue Happy Debt Collectors ”.

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Legal Precedents (Decisions) to Use When Fighting Junk Debt Collector Lawsuits

Beware of Debt Collection Scam Phone Calls

March 22nd, 2010. Published under Business Scams, Fraud, Scams. No Comments.

There has been a lot of news and complaints about fake debt collectors scamming unwary consumers or non-existent debts. Any time a debt collector calls you and demands money over the phone, tell them to put the demand in writing. No matter how many times they call, tell them the same thing, be adamant. If they are scammers they’ll eventually give up. If they are abusive real collectors eventually they’ll get the message that their tactics aren’t going to work. Often the scammers will tell you that unless you pay them you will be put in jail and then require you to use Western Union or other wire service to pay them. Never pay a debt whether real or imagined using a money transfer service. Never give financial any financial information over the phone to any sort of collections company, no matter what. Especially cold callers that demand money. If in doubt just hang up. Block the number if possible or let it go to voice mail. You aren’t required by law to talk to a debt collector, and that goes double for scammers. Hopefully they’ll leave threats on your answering machine that can be used as evidence. Be savvy, don’t give in and tell them to put it in writing.

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Beware of Debt Collection Scam Phone Calls

Actual Debt Collectors Violating the Fair Debt Collections Practices Act

March 11th, 2010. Published under Business Scams, Fraud. No Comments.

Debt collectors violate the Fair Debt Collection Practices Act (FDPCA) all the time. It’s time to name and shame a couple of them. Of course I reported these to the Federal Trade Commission ( www.ftc.gov ) but to date the FTC hasn’t done diddle about them. First we have “Agent Washington” of UCB (United Collection Bureau) claiming to be a law enforcement officer, claiming to have paperwork in the Bulloch County State Attorneys Office First off credit card debt is a civil matter, not criminal. Everything about this phone call are multiple violations of the FDCPA. Listen to my conversation with Agent Washington (MP3 format). She even called my next door neighbor while I was talking with the idiot. If I knew then what I knew now I would have owned United Collection Bureau. Next up is West Management claiming Fraud Charges. The caller claims to be

Evidently I am a Creditor for the Now Defunct Debt Collector Mann Bracken LLC

March 5th, 2010. Published under Business Scams, Scams. No Comments.

I received a letter today from the receiver of the now defunct debt collector Mann Bracken LLC. I am assuming I am receiving the notice below because I filed a lawsuit against Mann Bracken for multiple violations of the Fair Debt Collection Practices Act (FDCPA). I am in discussions with a consumer protection attorney on how to proceed and file a claim against the estate of Mann Bracken, LLC (702 King Farm Boulevard, Rockville Maryland). If nothing else it is good to know the tables are turned and Mann Bracken is out of business for good.

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Evidently I am a Creditor for the Now Defunct Debt Collector Mann Bracken LLC

Florida Consumer Turns Tables On Debt Collector — Sued For $800.00 Dollars, Consumer Collects $120,000.00 Dollars From Debt Collector – CapitalOne Laywers Screwed

March 1st, 2010. Published under Business Scams. No Comments.

Florida Consumer Turns Tables On Debt Collector — Sued For $800.00 Dollars, Consumer Collects $120,000.00 Dollars From Debt Collector Boca Raton resident Steven J. Pincus incurred legal fees in excess of $100,000.00 dollars defending an alleged credit card debt of $800.00 dollars. Pincus later sued the debt collector in federal court for filing a time-barred lawsuit, a violation of the Fair Debt Collection Practices Act. The debt collector settled the matter for $120,000.00 dollars on February 15, 2010.

Attention Former Debt Collection Employees – I am looking for Debt Collection Policies that Advocate Illegal Collection Tactics

March 1st, 2010. Published under Business Scams, Fraud, Scams. No Comments.

To anyone in the debt collection industry, especially former debt collection employees. We am looking for official company internal documents that advocate the use of illegal debt collection tactics to collect debts. There is a CASH reward for verifiable documents that show proof that a debt collection company actively advocates illegal collection tactics. Use this contact form to contact us and to attach documents. Today could be your “pay day”. It’s time that bad debt collection companies are exposed for what they really are. All contact will be confidential.

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Attention Former Debt Collection Employees – I am looking for Debt Collection Policies that Advocate Illegal Collection Tactics

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