Chicago Business Litigation Lawyer Blog

Old Debts That Won’t Die
By ANDREW MARTIN
Published: July 30, 2010
Collecting old consumer debts has become a labyrinthine industry involving buyers of secondhand debt, muddled statutes of limitation, lawsuits and, sometimes, abusive tactics.

The New York Times reports:

Timothy McCollough freely admits that he stopped making payments on his Chase Manhattan credit card in 1999. He says he did not have the means to pay after he was disabled by a head injury that cost him his job as a school security guard. ... Mr. McCollough is not the only borrower being pursued for a balance that has expired. Such claims are routinely sold on debt collection Web sites, where out-of-statute debt is for sale for a penny or less on the dollar. In most states, it is legal for collectors to pursue out-of-statute debt, as long as they do not file a lawsuit or threaten to do so. But some lawsuits are filed anyway, and consumer groups and even some industry consultants argue that collectors routinely harass debtors for unpaid balances that have exceeded the statute of limitations. In some cases, collectors have unlawfully added fees and interest. ... Last month, Ms. Byers, who is 50, filed her own suit contending that the debt collector, Professional Collection Consultants, and its lawyer, Scott Wu, violated the Fair Debt Collection Practices Act. Her suit asserts that the collection firm and Mr. Wu routinely file lawsuits on stale debt in the hopes of obtaining default judgments.

Our Evanston, Illinois consumer rights private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer lawyers at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Joliet consumer attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer protection lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

Automated Debt-Collection Lawsuits Engulf Courts
By ANDREW MARTIN
Published: July 12, 2010

As millions of Americans fall behind on bills, debt collection law firms have been clogging courtrooms with suits seeking repayment.

The New York Times reports that debt buyers have flooded the court houses with automated consumer debt collection lawsuits which are often backed up by insufficient evidence. The article states:

Already, some state legislators and judges have tried to crack down on collection lawsuits, and on Monday, the Federal Trade Commission weighed in, saying the system for resolving disputes over consumer debts was broken and in need of “significant reforms.”

The commission, which says debt collection is its top consumer complaint, proposed that states require collectors to include more information about debts in their lawsuits, including a breakdown of the current balance by principal, interest and fees, and the relevant terms of the original credit contract, if not the contract itself. ...

Critics say the business model for some debt buyers and law firms relies on such huge volumes of legal actions that mistakes and abuses are inevitable, in part because the lawsuits are often based on little more than a defendant’s name, address and alleged balance.

As Chicago consumer lawyers we are dedicated to protecting Illinois consumers from unscrupulous debt collectors who abuse consumer rights. With offices located in Chicago, Oak Brook and Wilmette, our Chicago trial lawyers will pursue debt collectors who harrass you by filing lawsuits under the Fair Debt Collection Practices Act and Illinois Consumer Fraud and Deceptive Business Practices Act. You can contact us for a free consultation over the internet by clicking here or by calling (877) 990-4990.

Our Wheaton, Illinois consumer rights private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer attorneys at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Waukegan consumer attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer protection attorneys who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

Our Naperville consumer protection private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Wheaton consumer fraud lawyers at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Oak Brook attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer law lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

Our Chicago consumer protection private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer fraud lawyers at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Chicago attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer law lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

The following story appeared on a Houston television station about debt a collection harrassment lawsuit resulting in a $1.5 million damages award.

The harassing and threatening voicemail messages left on Allen Jones' mobile phone are nothing short of vulgar.

"This shouldn't be tolerated," he said. "Nobody should have to experience what I had to experience."

Debt collectors from Advanced Call Center Technologies, LLC left eight messages for Jones in August 2007 trying to collect what it said he owed on a credit card.

Most messages were laced with profanity and spewed racial slurs:

"This is your mother******* wake-up call you little lazy a** b****," a collector said on one. "Get your mother******* n****r ass up and go pick some mother******* cotton fields."

Jones is African-American.

"If we did not have tapes, no one would ever believe that this happened," Mark Frenkel, one of Jones' attorneys said.

The recordings are so offensive News 8 decided against publishing transcripts of the others.

"This is absolutely, without a doubt, the most egregious collection case I've ever seen," Dean Malone, Jones' other attorney, added.

Jones sued Advanced Call Center Technologies over the harassing calls.

Friday afternoon, a Dallas County jury awarded him one of the biggest verdicts of its kind.

He won $50,000 in mental anguish and $1.5 million in punitive damages.

"We made a statement and the statement is we will not tolerate abusive debt collectors," Jones continued.

Frenkel and Malone said employees from Advanced Call Center Technologies confessed to the calls. It remains unclear if they're still with the company and whether it will appeal. Messages left at its headquarters were not immediately returned.

Jones always disputed the debt and claims he paid it.

The amount in question is as hard to believe as the calls themselves.

"They did this to Allen for under $200," Frenkel pointed out. "Two hundred bucks put him through this."

Now the company trying to collect money has become the one paying it out.

Our Oak Brook consumer rights private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer attorneys at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Naperville and Aurora consumer lawyers provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer law lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

What Do You Do When a Debt Collector Calls? Tips On What They Can and Cannot Do
3/10/2010
Source: By Kalamazoo Gazette staff

The Fair Debt Collection Practices Act lays out clear rules about what debt collectors can and can't do — and it allows you to sue if you believe your rights have been violated.

Here's what you need to know if a debt collector calls you:

Calls
Debt collectors can call only between 8 a.m. and 9 p.m. They can call you at work, but have to stop if you tell them your boss doesn't approve.

You can write to a collection agency to demand it stop calling you at home, too, but that won't make a legitimate debt go away: A creditor could choose to note the debt on your credit report or seek a court judgment against you.

In writing
Within five days of contacting you by phone, the debt collector must send you a letter telling you the amount you owe, the name of the creditor you allegedly owe it to and instructions for disputing if you don't believe the debt is yours. If you get a collection call, log the date on your calendar and start looking for that letter.

Taping
If you're getting calls you believe are abusive, you might consider taping them. Most states, including Michigan, allow you to record phone calls as long as one party to the conversation (for example, you) knows the call is being recorded. A few states require everyone on the line to know. Check the rules before you tape.

Record-keeping
Getting one debt collection call could mean you're in for others. That's because debts may be resold over and over. Or if a consumer demands verification, the account may be bounced back to the original account holder, who ships it off to a new debt collector. To protect yourself, keep copies of letters, logs of calls, canceled checks or other documents relating to the account — and plan to keep them for years.

Fighting back
If you suspect a debt collector isn't playing fair, complain to both the Federal Trade Commission (1-877-382-4357) and to the [Illininos] attorney general.

You also can stop repeated or harassing calls by going to court [and hiring an attorney].

More information
The FTC's free Fair Debt Collection fact sheet is available online at this location or call 1-877-382-4357.

Calling No-Nos
Debt collectors are forbidden to:

• Harass you or people who know you.
• Talk to anyone except you (or the attorney that you designate) about the debt.
• Call people you know for any reason except to locate you.
• Physically or verbally threaten you.
• Swear at you or call you names.
• Call you repeatedly (or call you right back if you hang up on them).
• Imply they're government employees or work with government agencies.
• Say they're attorneys, if they're not.
• Falsely imply you've committed a crime (debts are civil, not criminal).
• Misrepresent the amount you owe.
• Ignore your written denial of the debt. (They need to show you proof it's yours or assure you the matter has been dropped.)

Continue reading "What Do You Do When a Debt Collector Calls? Tips On What They Can and Cannot Do " »

Debt collectors are prohibited by federal law from engaging in deception, extortion, threats, lies, and invading your privacy by calling your friends, neighbors and employers. This video exposes illegal debt collection practices and explains practices which violate the law such claiming that you owe money which is owed by others, calling your workplace and revealing the debt, or threatening to bring suit or obtain a judgment with no intent to do so. Many debt collectors are pressured to meet sales quotas and engage in abuse to make money. Debt collectors can be persistent but they can't abuse or lie to you to get the bills paid.

Our Oak Brook consumer rights private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer attorneys at DiTommaso-Lubin are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Waukegan and Wheaton consumer lawyers provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer law lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

Debt collectors will go to great lenghts to trick, intimidate or exort you into paying debts. These tactics are illegal and you can file suit to stop improper debt collector harrassment. This video discusses some alleged violations of the Fair Debt Collection Practices Act and then informs you of some of your legal rights.

Our Chicago consumer rights private law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso-Lubin is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Highland Park, Deerfield, and Barrington consumer attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago consumer law lawyers who can assist in lemon law, unfair debt collection, predatory lending, wage claims, unpaid overtime and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

The Federal Reserve Board has prepared an excellent summary of consumer rights available under the Fair Debt Collection Practices Act ("FDCPA") in an online handbook on the FDCPA. You can view the handbook by clicking here.

Our consumer rights private law firm handles individual and class action unfair debt collection and other consumer fraud cases that government agencies and public interest law firms such as the FTC may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso-Lubin is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Naperville, Aurora, Waukegan, Joliet, Elgin, Highland Park, Northbrook, Wilmette, Wheaton, Oak Brook, and Chicago consumer civil litigation lawyers provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago area consumer protection lawyers who can assist in lemon law, unfair debt collection, junk fax, prerecorded telephone solicitations, and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

In a Fair Debt Collection Practices Act class action, the Seventh U.S. Circuit Court of Appeals has ruled that a bill collector’s failure to correctly break down a bill into principal and interest does not violate that Act. Wahl v. Midland Credit Management, No. 08-1517 (7th Cir. Feb. 23, 2009) was a class action lawsuit alleging that debt collectors violate the FDCPA when they send out bills that state the correct total amount but break down the charges incorrectly.

Plaintiff Barbara Wahl had just $66.98 on a credit card when she sustained a stroke and racked up much larger medical bills during a time when she couldn’t work. The credit card went unpaid and eventually, the balance was $1,149.09, mostly in interest and late fees. Midland purchased the debt in January of 2005 and started sending demand letters to Wahl. The letter at issue arrived April 15, 2005, listing both the “current balance” and “amount due” at $1,160.57. On the back side, it listed the “principal” as $1,149.09 and the “accrued interest” as $11.48. This was followed by a similar letter listing a higher interest. The letters construed the “principal” as the total value of the debt Midland had bought, including interest accrued with the original creditor.

Wahl filed a proposed class-action lawsuit in federal court for the Northern District of Illinois. One of her two claims was that Midland had violated the FDCPA by incorrectly stating that the principal on her account was $1,149.09 rather than breaking down the original principal, the original interest and the new interest. Debt collectors are not required by law to break down charges, it said -- but when they do, the law requires that the breakdown not contain false or misleading information. On cross-motions for summary judgment, the trial court ruled in favor of Midland. Wahl appealed.

On appeal, the Seventh Circuit agreed. Wahl relied on language from the FDCPA prohibiting “[t]he false representation of... the character, amount, or legal status of any debt,” they said, and argued that this meant she need only show that the breakdown of charges was outright false. The court disagreed, saying it has consistently tested for violations of the act on whether the disputed action would mislead an unsophisticated consumer. If it would not, the court said, it cannot find a violation. Furthermore, the judges argued, Wahl’s argument that the statement was outright false is not correct because Midland’s breakdown of charges was perfectly correct in Midland’s eyes -- it had paid for $1,149.09 in debt and the interest it added was its own interest, not the original creditor’s.

The Seventh Circuit also said Wahl could not overcome the precedent it set in Barnes v. Advanced Call Center Technologies, LLC, 493 F.3d 838 (7th Cir. 2007). In that case, the court rejected an argument that a bill collector had violated the FDCPA by failing to state the total balance due, listing only the amount in collections. There, the court ruled that the correct amount of debt to list was the amount that the debt collector was seeking -- not that amount plus the amount owned by the original creditor. In both cases, the original creditor is irrelevant to the transaction at hand. “Wahl’s argument rests on empty semantics and conflicts with Barnes,” the Seventh wrote, and thus the summary judgment order was upheld.

DiTommaso-Lubin has an active practice in Fair Debt Collection Practices Act litigation, specializing in protecting consumers from illegal, misleading and harassing behavior by debt collectors. Our debt collection abuse lawyers are based in Chicago and Oak Brook, Illinois, but we help clients throughout the United States, in both individual lawsuits and class actions. If you’re being harassed by bill collectors or they are using fraud and deception to charge fees you don't owe, you don’t have to put up with it. For a free, confidential consultation, please contact us online or call us toll-free at 1-877-990-4990.

As Illinois consumer attorneys we were pleased to see that the Illinois Attorney General has a very informative website highlighting the protections provided by Illinois and Federal Law against abusive debt collection practices. You can link to the website here.

The Attorney General's website describes how the Fair Debt Collection Practices Act, the Illinois Collection Agency Act and the Illinois Consumer and Deceptive Business Practices Act can protect Illinois residents from debt collector abuse:

If you use credit cards, owe money on a loan or are paying off a home mortgage, you are a “debtor.” If you fall behind on your payments to these creditors, you may be contacted by a debt collector. You should know that the Federal Fair Debt Collection Practices Act, the Illinois Collection Agency Act and the Illinois Consumer Fraud and Deceptive Practices Act all provide protections guaranteeing that debt collectors treat you fairly. These laws do not, however, forgive any legitimate debt you owe. Personal, family and household debts are covered under the Federal Fair Debt Collection Act. This includes money owed for medical care, charge accounts or car purchases.

Debt Collectors
A debt collector is any person other than the creditor who regularly collects or attempts to collect debts that are owed to others and that resulted from consumer transactions. This includes attorneys who collect debts on a regular basis. A collector can contact you in person, by mail, telephone, telegram or e-mail. However, a collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves. A debt collector may contact people other than you or your attorney to find out where you live or work, but may not tell anyone other than you or
your attorney that you owe money.

Once a debt collector has notified you by phone, he or she must, within five days, send you a written notice revealing the amount you owe, the name of the creditor to whom you owe money, and what to do if you dispute the debt. A debt collector may NOT:

• harass, oppress or abuse anyone (i.e., use threats, obscene or profane language, etc.);
• make false statements when collecting a debt (includes implying that you have committed a crime or saying you will be arrested or criminally prosecuted if the debt isn’t paid); or
• engage in unfair practices such as forcing you to accept collect calls or pay for telegrams or collect interest or fees in excess of the debt, unless authorized by the agreement creating the debt.

You can stop a debt collector from contacting you by writing a letter to the collection agency telling him or her to stop. Once the agency receives your letter, it may not contact you again except to notify you that some specific action will be taken.

Disputing a Debt
A debt collector may not contact you if, within 30 days after the collector’s first contact, you send the collector a letter stating that you do not owe the money. If, however, the collector sends you proof of the debt, such as a copy of the bill, the collector can resume collection activities.

Our consumer rights private law firm handles individual and class action unfair debt collection and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso-Lubin is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Naperville, Aurora, Waukegan, Joliet, Elgin, Highland Park, Northbrook, Wilmette, Wheaton, Oak Brook, and Chicago consumer lawyers provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago area consumer protection lawyers who can assist in lemon law, unfair debt collection, junk fax, prerecorded telephone solicitations, and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

A very informative brochure just published by the Federal Trade Commission contains the following very useful questions and answers regarding the Fair Debt Collection Practices Act:

What debts are covered? Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts. Who is a debt collector? A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. How may a debt collector contact you? A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves. Can you stop a debt collector from contacting you? You can stop a debt collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor. May a debt collector contact anyone else about your debt? If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money. What must the debt collector tell you about the debt? Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money. May a debt collector continue to contact you if you believe you do not owe money? A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed. What types of debt collection practices are prohibited? Harassment. Debt collectors may not harass, oppress, or abuse anyone or any third parties they contact. For example, debt collectors may not: • use threats of violence or harm; • publish a list of consumers who refuse to pay their debts (except to a credit bureau); • use obscene or profane language; or • repeatedly use the telephone to annoy someone; False statements. Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not: • falsely imply that they are attorneys or government representatives; • falsely imply that you have committed a crime; • falsely represent that they operate or work for a credit bureau; • misrepresent the amount of your debt; • indicate that papers being sent to you are legal forms when they are not; or • indicate that papers being sent to you are not legal forms when they are. Debt collectors also may not state that: • you will be arrested if you do not pay your debt; • they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or • actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take. Debt collectors may not: • give false credit information about you to anyone, including a credit bureau; • send you anything that looks like an official document from a court or government agency when it is not; or • use a false name. Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not: • collect any amount greater than your debt, unless your state law permits such a charge; • deposit a post-dated check prematurely; • use deception to make you accept collect calls or pay for telegrams; • take or threaten to take your property unless this can be done legally; or • contact you by postcard. What control do you have over payment of debts? If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe. What can you do if you believe a debt collector violated the law? You have the right to sue a collector in a state or federal court within one year from the date from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1000. Court costs and attorneys fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collectors net worth, whichever is less.

Our consumer rights private law firm handles individual and class action unfair debt collection and other consumer fraud cases that government agencies and public interest law firms such as the FTC may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso-Lubin is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers' rights are protected from consumer rip-offs and unscrupulous or dishonest practices.

Our Naperville, Aurora, Waukegan, Joliet, Elgin, Highland Park, Northbrook, Wilmette, Wheaton, Oak Brook, and Chicago consumer lawyers provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago area consumer protection lawyers who can assist in lemon law, unfair debt collection, junk fax, prerecorded telephone solicitations, and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

The Federal Trade Commission ("FTC") website provides useful information regarding recognizing telephone and telemarketing frauds. A full copy of the Fair Debt Collection Practices Act is also linked to the site and you can view it here. The FTC website states:

Debt Collection FAQs: A Guide for Consumers

If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Here are some questions and answers about your rights under the Act.
What types of debts are covered?

The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?

No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.
How can I stop a debt collector from contacting me?

If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:

Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?

If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?

Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.
Can a debt collector keep contacting me if I don’t think I owe any money?

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

* use threats of violence or harm;
* publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
* use obscene or profane language; or
* repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

* falsely claim that they are attorneys or government representatives;
* falsely claim that you have committed a crime;
* falsely represent that they operate or work for a credit reporting company;
* misrepresent the amount you owe;
* indicate that papers they send you are legal forms if they aren’t; or
* indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

* you will be arrested if you don’t pay your debt;
* they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
* legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

* give false credit information about you to anyone, including a credit reporting company;
* send you anything that looks like an official document from a court or government agency if it isn’t; or
* use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

* try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
* deposit a post-dated check early;
* take or threaten to take your property unless it can be done legally; or
* contact you by postcard.

Can I control which debts my payments apply to?

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don’t think you owe.
Can a debt collector garnish my bank account or my wages?

If you don’t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.

Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don’t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Can federal benefits be garnished?

Many federal benefits are exempt from garnishment, including:

* Social Security Benefits
* Supplemental Security Income (SSI) Benefits
* Veterans’ Benefits
* Civil Service and Federal Retirement and Disability Benefits
* Service Members’ Pay
* Military Annuities and Survivors’ Benefits
* Student Assistance
* Railroad Retirement Benefits
* Merchant Seamen Wages
* Longshoremen’s and Harbor Workers’ Death and Disability Benefits
* Foreign Service Retirement and Disability Benefits
* Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
* Federal Emergency Management Agency Federal Disaster Assistance

But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?

If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.
Where do I report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.
For More Information

To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

If you are a victim of debt collector harrassment or fraud and believe you may have a claim under the Fair Debt Collection Practices Act our Illinois based consumer fraud, class-action and unfair debt collection private sector lawyers may be able to assist you obtaining redress. Click here to contact us and fill out a form telling us about the facts of your case.

Our firm and attorneys we work with have helped a number of victims of unfair debt collection practices obtain redress with awards of statutory damages and actual damages for emotional distress with the debt collectors paying attorneys fees and costs.

Our consumer rights private law firm handles individual and class action cases that government agencies and public interest law firms such as Trial Lawyers for Public Justice may not be able to pursue. Class action lawsuits our firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso-Lubin is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to unfair collection practices, consumer fraud and consumer rip-offs, and in the right case filing Fair Debt Collection Practices Act or consumer protection lawsuit or and class-action you too can help ensure that other consumers' rights are protected from corporate misdeeds.

Our Naperville, Aurora, Waukegan, Joliet, Northbrook, Wilmette, Wheaton, Oak Brook, and Chicago consumer attorneys provide assistance in debt collector harrassment, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago area consumer protection or unfair debt collection practices lawyers who can assist in lemon law, unfair debt collection, junk fax, prerecorded telephone solicitations, and other consumer, consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.

In a consumer protection and debt collection case, the Seventh Circuit has decided that a Wisconsin trial court was correct to grant summary judgment to a class of Cingular Wireless customers. Seeger v. AFNI, Inc., No. 07-4083 (7th Cir. December 8, 2008). The Cingular (now AT&T) customers had sued AFNI, Inc., a debt collector for Cingular, alleging it was charging a collection fee that consumers hadn't agreed to and that was not permissible under Wisconsin law. Responding to a summary judgment motion by a certified class of consumers, the trial court found that AFNI violated both the Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act.

The plaintiffs were Cingular customers in Wisconsin. Each had signed a contract agreeing to pay the fees of a collection agency. They fell behind in their payments and eventually received letters from debt collector AFNI, which had bought their debt from Cingular, saying they owed a collection fee of 15% of the original debt. A second letter included the 15% fee in its total balance due. The plaintiffs sued, saying neither the contracts nor Wisconsin law allowed a separate collection fee for the owner of the debt (as opposed to a third-party debt collector). The trial court granted summary judgment to AFNI on one state claim and to the plaintiffs on another state claim, as well as the FDCPA. AFNI appealed.

The appeals court first rejected AFNI's argument that its debt collection practices fall under Wisconsin laws allowing wronged parties to collect damages for breach of contract. If it could prove this, the court wrote, it would also need to prove that the 15% fee reflected its actual costs. However, the court pointed out that AFNI presented no evidence that would prove this, and general debt collection industry practices don't support any such assumption.

AFNI next argued that it is entitled to collect fees as Cingular's assignee, since customers signed contracts with Cingular agreeing to pay fees charged by a third party. The district court found that the contracts authorize a collection fee only when Cingular uses a third party, not when Cingular does the collection work itself. AFNI argued that it could collect the fee as a reimbursement if it had paid that fee to Cingular. But as the appeals court pointed out, it did not pay such a fee, and no evidence in the record shows that AFNI's fee could be considered a referral fee authorized by the contract.

Finally, the court considered whether AFNI's violation of the law could be considered a bona fide error under the FDCPA, which removes liability when a debt collector broke the law unintentionally. One requirement of the bona fide error defense, the Seventh wrote, is that the debt collector have reasonable procedures in place to avoid a violation. It concluded that AFNI had no such procedures, pointing out that AFNI an employee's own deposition shows it wasn't aware of the distinction between collecting its own debt and collecting on behalf of a client. In fact, the court wrote, "applying the bona fide error defense here would essentially reward a business's ignorance of the law." Thus, it upheld the trial court's summary judgment decision on both the FDCPA and the Wisconsin claim.

DiTommaso-Lubin has an active practice defending individuals who are victims of abusive, illegal or unfair practices by debt collectors, including violations of Illinois and other state consumer protection statutes as well as violations of the FDCPA. Based near Wheaton, Illinois, and Chicago, we have successfully represented consumers in Illinois and throughout the nation. To speak with us about a potential case against an abusive debt collector, you can

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Posted In: Billing Fraud , FDCPA (Fair Debt Collection Practices Act) , Seventh Circuit