You may ask, ‘Does this really happen”. Yes, it does more often than you’d guess. CreditCards.com reports a rise in Credit Card Debt law suits in California, Nevada and Florida.

What you may find startling is that often the law suits are filed even though the Plantiff (Credit Card Company) lacks the proper documentation to file suit.

The problem, according to Judges, started years ago. Creditors have not been keeping records properly. When the Debt is assigned to a Debt Collector, those faulty documents are the only thing that the collectors have.

The good news is that  many Judges are catching on to these faulty records and forcing the Debt Collectors to go back and gather the proper documents.

That is why it is so important to “Validate” the Debt (in question)

Often while negotiating Debt for clients, I realized that the Debt Collectors have added extra fee’s and interest to the accounts. This is an unfair practice but just because it is unfair does not mean that it does not happen.

Validating the debt can save Debtors a lot of money and time. By validating the debt you (the Debtor) forces the collector to ‘prove’ that they have the right to collect or sue for the debt. Validating the debt (if done correctly) can also stop the harassing calls by collectors.

Also, many States in the U.S. forbid Debt Collectors from continuing collection efforts until after they have Validated the debt.

In a related story, Roger Benson filed a lawsuit March 23 in St. Clair County Circuit Court against Cavalry Portfolio Services LLC and Cavalry SPV I LLC.

Benson says he received a letter from Cavalry Portfolio Services in November 2010. They demanded nearly $6,300 for a debt. In January 2011, Mr. Benson claims he wrote a letter to Cavalry disputing the debt, and asking for validation of the alleged debt and demanding they stop contacting him.

A few days later Mr. Benson received another letter from Calvary, but it wasn’t a Validation or verification. It was another collection notice. So, Mr. Benson is now suing Calvary Portfolio.

We are not suggesting that you sue every Debt Collector, but we are saying that you have the right to sue. But it requires that you have the proper documentation on your side. Debt Validation is the best way to get the proper documentation.

In Operation One:  “Stop Debt Collector Harassment” Debt Warriors take you step-by-step through the process of Debt Validation. Sure, there are other sources that offer information on Debt Validation, but those sources don’t inform you about the tricks and traps that Collectors use to defy your attempts to validate the debt.

To learn more about Operation One, check out the Debt Warriors Arsenal (video course).

Operation One: Stop Debt Collector Harassment (Video Course)

Despicable Debt Collectors are using a new trick called “Debt Tagging”

What is Debt Tagging? It’s the act of matching an account with any Debtors (Consumers) name that just happens to be the  same.

How does Debt Tagging work? Here’s how:

1. The Junk Debt Buyer (JDB) purchases an account
2. The  JDB locates all people with the same name
3. The JDB tags the account with the person’s name

For example, say your name is Jane Smith? You’ve never owed a debt with the company, but because another person with your same name did owe the account, the JDB tags you as owing the debt. Tag you’re it.

The Mississippi Sun Herald News reported this relatively new but despicable tactic:

“Debt tagging is the aggressive activity committed by debt collectors pursuing consumers for debt that does not belong to them.”

The Sun Herald, reported that the JDB often fails to verify that the person in question being harassed. They just tag anyone with the same names and pursue collection. Once the Consumers name is ‘tagged’ the JDB continues the collection activity, including placing bogus information on the Consumers Credit Report.

In 2009, we told you about a story reported in the New York Times about Mark Hoyte. Mr. Hoyte was being sued for a $919 debt he did not owe. In that post we told you that Mr. Hoyte was being “legally robbed by law suit”. He tried to tell the Debt Collector that they had the wrong Mark Hoyte.

The Debt Collector refused to listen and filed a law suit against Mr. Hoyte, forcing him to put his job at risk by taking the day off to defend himself in Court. The bad thing is that Debt tagging can happen to anyone.

What’s worse is that often the JDB fails to verify who actually owes the debt. JDB’s also fail to notify the Consumer before the JDB places the bogus information on the Consumers Credit Report.

Operation Three: Credit Repair Self Help (Video Course)

Have you ever heard of the Fair Credit Reporting Act (FCRA)?

The FCRA is a U.S. Federal Law that regulates the collection and use of consumer credit information. Under the FCRA, the Big 3 Credit Bureaus have the responsibility to:

• Provide information regarding what is contained on the Consumers Credit Reports
• Investigate Consumer Credit Disputes (against Creditors or Debt Collectors) and
• Correct errors on Consumer Credit Reports.

Under various Statues like, § 616 of (15 U.S.C. § 1681n), a consumer may recover either actual money damages or a minimum of $100 and a maximum of $1000 plus punitive damages and reasonable attorney’s fees and costs for willful noncompliance with the Act.

Under § 617 of (15 U.S.C. § 1681o), recovery for a negligent violation is of actual damages, plus attorney’s fees.

What all the legal jargon above means that you have rights But as you can see, sorting out the maze of Statues and laws can be confusing. Operation “Credit Repair” guides you out of the maze of legal jargon.

Click here to watch a detailed video on Credit Repair.

An appellate court has upheld a $311,000 jury award to a Montana man who sued the firm in 2007 over a violation of the federal Fair Debt Collection Practices Act.

Johnson, Rodenburg & Lauinger appealed the April 2009 summary judgment and damages awarded to Timothy McCollough of Laurel. The case was heard in July by a special panel of the 9th U.S. Circuit Court of Appeals in Billings, including retired Supreme Court Justice Sandra Day O’Connor.

The panel issued a decision Friday upholding the damages. They include:

• $1,000 statutory maximum for violating the debt collection law,
• $60,000 in punitive damages and
• $250,000 for emotional distress.

The judge granted partial summary judgment on the Fair Debt Collection Practices Act claims against JRL, in part because JRL sought to have McCollough admit “facts” that were not true – that he had never disputed the debt, that he made a partial payment in June 2004 and that every statement in JRL’s complaint was true.

Feel free to read the rest of story by clicking the link below.

Court upholds $311K award against debt collector.

How do you know if your rights have been violated by a Debt Collector? Well, you could hire a lawyer. That could cost you hundreds to thousands of dollars.

Or, you could order the Debt Warriors Arsenal. This video course informs you of your rights under the Fair Debt Collections Practices Act (FDCPA) in down to earth language that won’t have you feeling confused by legal terms.

As you can see above, Debt Collectors, Junk Debt Buyers and even Collection Attorneys will try to deceive and trick you into admitting to a debt that you may not owe. What’s worse, Debt Collectors will often try to get you to make a payment to extend the Statue of Limitations for Debt Collection.

I hate to say this, but it is your duty as a Consumer / Debtor to know your rights. Much more importantly, it’s your responsibility to know when your rights have been violated. The Debt Warriors Arsenal (video course) informs you of the most common tricks and traps of Debt Collectors.

At the end of the day, it’s up to you to take the action.  Debt Warriors make it easy to learn how.

On April Fool’s Day, the only rule is to fool someone. During the rest of the year, millions of other Americans unknowingly act like fool’s financially.

There are 4 foolish ways to that people loose their money.

4 Foolish Way’s Millions Lose Their Money.

In this video, ABC NEWS confirms what Debt Warriors have been saying about Debt Collectors for many…many…years.

Stop Harassment

If you’re receiving calls from a Debt Collector you are not alone. And you are probably NOT a “Dead-Beat”. Last year over 140,036 complaints filed with the  Federal Trade Commission “FTC” were over Debt Collector harassment and threats.

Below are the 3 most shocking FTC complaints of repeated abuse by Debt Collectors.

• 4,182 Americans complained that they were threatened with violence if they did not pay
• 27,554 complained they were illegally threatened with a law suit
• 53,147 filed complaints over repeated calls from collection agents

In July of 2010, I reported that debt collection complaints were getting worse. It always feels good to see that Debt Warriors are on the right side of history.

Dianne Sawyers team of reporters featured a Journalist who went undercover to expose the illegal tactics most often used by bill collectors. Recently, a Buffalo News Reporter, Fred Williams spent months working as a Debt Collector. He says he was trained to do illegal tactics. And you should believe him too.

Below are the 3 most common Illegal Debt Collection Tactics Reported in the ABC NEWS Story:

• False (empty) threats: For example, a collector recorded saying, “If you don’t pay by tomorrow there will be a warrant issued for your arrest”
• Continuous calls to Consumers on a daily basis
• Using a fake Courtroom to trick the Debtor into thinking they were in front of a real Judge

As I’ve said before…You can fight back and win $1,000 when a Debt Collector uses illegal tactics. The key is knowing when your Rights have been violated. 90% of Americans don’t know their rights as Consumers and as Debtors. Because of this many Americans feel forced to accept the stress and rage that comes with dealing with Debt Collectors.

This is why the Debt Warriors Arsenal Video Course starts with stopping debt collectors from harassing you.

“Operation One: Stop Debt Collector Harassment” reveals:

• How to stand up to Debt Collection Bullies and win
• How to stop all 3rd party debt collection harassment
• How to prevent your Rights from being violated in the future
• How to avoid being tricked into years of paying a debt you may not technically owe
• How good it will feel to fight back armed with knowledge

This video course makes it easy for you to free yourself from the hassles of having to deal with a Debt Collector. In fact, don’t say another word to the collection terrorist…until you know what Operation One will show you.

Discover more about how Operation One: Stop Debt Collector Harassment shows you how to stop all 3rd party debt collector harassment.

I was able to calm Trisha down and give her some tips to help her out while she searched for another job. Today, I’ll tell you what I suggested to Trisha.

1. Check your Government Credit Report at http://www.Annual Credit Report.com. It’s free (once every 12 months). 79% of Credit Reports have ‘Clerical Errors’ on them. Over 25% of Borrowers have had negative yet inaccurate information prevent them from obtaining much needed Credit.

“Negative and inaccurate information on your Credit Report, should be removed or corrected asap”

One clerical error on your Credit Score can make a BIG difference. Check your Government Credit Report for errors at AnnualCreditReport.com.

2. Keep your Unemployed Status a secret. Creditors can not afford to feel sorry for Debtors. Don’t tell your Creditors (or anyone you do business with ) that you’ve lost your Job.

3. Know your Emergency Options regarding your 401k. True confession. When I lost my radio job, I took a loan from my 401k to buy a used car. Borrowing from my own 401k made me the Creditor and the pay off was painlessly low. There are many 401k options (depending on the plan). Call your 401k provider and ask about your Emergency Options.

4. Refinance whatever you can for a lower fixed rate. There is almost nothing worse than being Unemployed and your Interest Rates for your loans sky-rocket. If you have a ‘Variable Rate Loan” or your rate is too high, look at refinancing . Beware though…a re-finance may not be easy. You’ll have to keep at it. Shop around, learn your options.

5. Prioritize your finances.Like Dr. Stephen Covey, Author of, 7 Habits of Highly Effective People said, “put 1st things 1st. Pay all of your bills, as needed. But your family’s priorities and utilities; lights, gas, food, and shelter,are much bigger priorities. I would prioritize from biggest to smallest – necessary to unnecessary.

6. Close Credit Accounts only if necessary. Normally, I wouldn’t suggest that you close any Credit Lines if you can responsibly manage them. But we are NOT in NORMAL times. It’s much better for your Credit Report to state, “close at borrowers request” than, “closed at the Creditors request”.

7. Be Flexible with your expectations. You may not find the kind of job at the pay you’re used to. You may have to change careers all together. This is the time to become open to other opportunities. This may be a time to start your own business. The choice is yours.

8.Be kind to your mind. You may find yourself feeling aggravated, depressed, angry and shocked at the lack of common courtesy in the Job market. Now is not the time to be hard on yourself. Instead, use every interaction as a learning experience. Make it a game, have fun! Remember, bills are just business, not your life.

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DEBT WARRIORS are not Attorneys. The information on this blog, should not be considered legal advice.