January 31, 2008

Palisades Collection, LLC

Filed under: FDCPA,Junk Debt Buyer

“Notably, the most common plaintiff, Palisades Collection, LLC, claims to have purchased a large portfolio of defaulted debt from AT&T Wireless when that company merged with Cingular in 2004.

It is not surprising then that in the plurality of lawsuits, the alleged debt had been incurred with AT&T Wireless.

In fact, among cases reviewed in this study, alleged AT&T Wireless accounts were the basis of 43.7% of consumer credit cases brought by a third-party debt buyer and 39.0% of all of the files reviewed.

Interestingly, in September 2006, five individuals who had been sued by Palisades Collection, LLC for alleged AT&T Wireless debts in New York City Civil Court sued Palisades and its law firm, Pressler and Pressler, LLP, in federal court for violations of the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.69

In particular, the five alleged that Palisades sued them without having made any effort to determine whether it had any basis to do so.

Furthermore, they alleged that Palisades’ complaints were patently untrue and that any materials provided in support of the underlying cases against the defendants constituted inadmissible hearsay and could not be used to support the plaintiff’s original claims.

In other words, the five alleged that Palisades Collection, LLC and Pressler and Pressler initiated lawsuits against alleged debtors knowing that they could not, if required to do so, prove the elements of their claims.”

“Debt Weight: The Consumer Credit Crisis in New York City and its Impact on the Working Poor” a report by the Community Development Project, November 2007

Wage Garnishment, Chapter 13, & FHA

Filed under: Wage Garnishment

Hi Paul, in short we had 3 deaths in the family and had to get money to help family with burial exspenses. Paid payments for a year or so and finaly got behind and could not satisfy creditor. Fianally they obtained a judgement for wage garnishment due to commence on my next payday.

Could you tell me if Chapter 13 would look better on credit report or wage garnishment. And how long do they stay on credit report, and how long if you keep up everything would it take to qualify to buy a home after something like that.

Also even if I filed chapter 13 to stop wage garnishment would the judgement still show on my report even though thy only garnished once or twice before the bankruptcy was filed.

I really appreciate your help I can’t seem to get any answers.

Cliff (more…)

January 30, 2008

Junk Debt Buyer Pennies

Filed under: Judgment,Junk Debt Buyer

“In 89.3% of the cases we reviewed, debt collection litigation was initiated not by the original creditor but by a third-party debt buyer who had purchased the debt in question.

Third-party debt buyers typically purchase debt for pennies on the dollar.

In one recent sale, for example, Asta Funding, Palisades Collection, LLP’s parent company, purchased a debt portfolio of approximately $6.9 billion for $300 million, or 4.35 cents on the dollar.

After purchasing the debt, the third party may attempt to collect the full amount of the alleged debt by contacting the debtor or by bringing a lawsuit as an assignee of the original creditor.

Just twelve of the thirty-nine debt buyer plaintiffs who initiated lawsuits reviewed in this study are licensed by the New York City Department of Consumer Affairs.

The twenty-seven unlicensed debt buyers brought 257, or 42.8%, of the 600 lawsuits reviewed.”

“Debt Weight: The Consumer Credit Crisis in New York City and its Impact on the Working Poor” a report by the Community Development Project, November 2007

The Results of the Week!

Filed under: Credit Restoration

Adriel Torres - The CEO of Credit Repair!

Check out Adriel’s Latest Results!

More awesome results this week folks!! Ok, here we go:

  1. RMA/ATT-Collection account purchased by RMT Collections from ATT. This was a cell phone bill that went into collections for $1348.65. Account was in collection for 2 years and RMA was not able to properly account for the information, thus it was deleted!
  2. No Collection/Creditor information available (these are so easy!!)-It was a collection for $458.30. Customer had no idea what this collection was for and the credit agency could not verify the information, thus it had to be deleted.  
  3. Equifax had the wrong name (maybe why item 2 was on this report??). Name was updated! 

Tune in next Wednesday!

Adriel D. Torres
President/C.E.O.
UltimateCreditToday.com
Toll Free: 866.686.4289

Shady Collection Inquiries

Filed under: Credit Inquiries

A week ago you discussed the legal justification that allows a collection agency to do a Hard Inquiry on your credit report.  With the rising market of junk debt collectors, I am continually assaulted w/debts over 10 years old. 

Now even though my credit report is completely clean, these folks repeatedly mar my report by with ‘collection’ inquiries. 

On Transunion, they specifically state permissible reason: collection. This is damaging and shady.  Can I stop it?

Shawn (more…)

January 29, 2008

Insolvent

Filed under: Debt Settlement

What is the gest of irs Form 982

Betteye (more…)

Florida Debt Collection Violations

Filed under: FDCPA

A federal court has entered a final order against a Florida debt collection agency, its principals, and its attorney, settling a Federal Trade Commission action that alleged that the defendants violated the FTC Act and the Fair Debt Collection Practices Act (FDCPA) while collecting consumers’ debts.

The FTC’s complaint alleged that the enterprise used misleading dunning letters and abusive telephone calls to falsely threaten that consumers would be sued, their property seized, and their wages garnished if they did not pay the money that the defendants said they owed. The complaint alleged that the collectors often shouted and used profanity and other abusive language to carry out their collections.

The stipulated final order, among other things, permanently bars the defendants from falsely representing the character, amount, or legal status of a consumer’s debt, that their collector is an attorney or represents an attorney, or that if the consumer does not pay, the defendants can or will file a lawsuit against the consumer. It also prohibits them from violating the FDCPA in any way, including by disclosing a consumer’s debts to any third parties, using profanity or other abusive language in collection calls, or by continuing to attempt to collect a debt before providing verification of the debt to consumers who properly request such verification. The settlement also requires the defendants to provide consumers with a toll-free number and mailing address to file complaints, promptly investigate each such complaint, and take steps to cease, resolve, and cure any violations of the court order or the FDCPA. (more…)

Bank U

Filed under: Foreclosure

Where to begin.  My husband and I faced foreclosure procedings back in 2003 and have been trying to catch up ever since.  We actually have three mortgages on our house… our first two are with the same finance company.  The third with a different… an equity line a credit and the ones who started foreclosure on us back in 2003… I will call them bank U. 

Since reinstating our loan with bank U, a few years later we found out that Bank U divided our loan with them up.  I’d say 1/4 of the loan stayed as an OPEN status and the remaining part of the loan (42,500.00) was set to a charged off status. 

Well, now that we have the “open” part of the loan with them paid in full they keep calling us on the charged off portion. We have tried to explain to them over and over again our hardship at this time but they want nothing to hear with it. Now, our other mortgage company has been wonderfully in working with us. 

I sent for a copy of our credit reports.  Bank U shows up as charged off of course but under balance due it says -0- !!  but it does show that they charged off the 42,500.00.  What does this mean?  it also says that it will come off of our credit report within 2 years. ??? 

We do not want to have to face foreclosure again on this account nor can we afford to have them come in and guarnish my husband’s wages.  We are barely getting by as it is. 

What can this Bank U legally do to get the charged off amount from us ? 

I’m scared.

Jean (more…)

January 28, 2008

Fair Credit Billing Act Revisited

Thank you so much for your website!! 

I use this blog for not only myself, but also for my husband, my father (he just purchased a new home thanks to your tips!!) and now I have a question from my Mother. 

She has been with a certian credit card company for 10+ years.  About 6 months ago she had mailed her payment to this CC Company and it got posted 10 days later than the due date.  They ended up reporting this as a 30day late on her credit report. 

Since then, they have raised her interest rate to 24.99% because of the one late payment.  When this CC Co raised her rate, the rates on all her other CC went up to 24.99% as well.

She also had swiched jobs and is making less money and has ended up greatly in debt. ($20,000 worth) 

Her min payment on 3 credit cards is $300.00each so she is paying $900.00 a month in credit card debt. 

My mother is thinking about filling for BK even though her FICO is above 750. 

She disputed the late payment, and they will not delete it. 

So my question is how can she get the rates dropped on her cc and pay it off to avoid BK?

Thanks  Paul you’re awesome!!

Amanda (more…)

January 26, 2008

Junk Debt Buyers in the City

Filed under: Judgment,Junk Debt Buyer

“Our study reveals that in 99.0% of applicable cases reviewed, debt buyers submitted facially invalid evidence in support of applications for default judgments. 

As a result, it is impossible to tell how many of the 320,000 debt collection lawsuits filed annually have merit. We can only speculate as to the extent to which debt buyers are using the courts as an avenue to engage in unscrupulous, and unlawful, debt collection practices.

Nevertheless, the debt buyers’ consistent failure to provide relevant evidence in support of their claims suggests that they do not possess such evidence.

Furthermore, anecdotal evidence suggests that where defendants appear and, using the discovery process, demand that plaintiffs produce evidence of their claims, plaintiffs often voluntarily discontinue an action. In essence, debt buyers initiate litigation on the presumption that they will prevail as a result of the defendant’s default.

Given the incredibly high default rate, such an assessment is, far more often than not, correct. Where the defendant appears and the plaintiff is forced to prove its case, it often chooses not to and instead discontinues the action.

If it is assumed that plaintiffs could not, if forced to do so, substantiate their claims in just 50% of the cases where a plaintiff failed to proffer admissible evidence in support of an application for a default judgment, it would call into serious question the underlying legitimacy of a significant percentage of all consumer credit cases filed in the Civil Court.”

“Debt Weight: The Consumer Credit Crisis in New York City and its Impact on the Working Poor” a report by the Community Development Project, November 2007

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