Based on calls to my office, existing clients and some research there are a few numbers you need to watch for on your caller ID:
1. 347-772-2135 - this is the number that comes up in the fake police scam I wrote about earlier today.
2. 877-498-1496 - this number is for a company that calls itself Check and Credit Reporting, Inc. They are not listed with the NY Secretary of State, where they claim to be based.
3. 888-900-3120 - this company is called Regional Arbitration Services. They are based out of NY, or Ontario, Canada or Colorado. They appear to be a debt collector, but have threatened to have people arrested.
If you get a call from one of these numbers, tell them that you will not take any calls, get the name of the person you spoke to, and obtain an address where you can send correspondence. They typically will not give you an address. Then talk to an attorney about your rights.
If you have phone numbers that you think need to be added to this list, please email me at jonathan@jonathangstein.com so that I can look into those as well.
This story is courtesy of News10 in Sacramento and Suzanne Phan.Here are the highlights of the story:
"A Yuba City woman nearly fell victim to a terrifying scam involving a fake debt collector and a phony cop. Michelle Bertsch received a dozen calls at home and at work on her cellphone in March from a man claiming to be a debt collector. The man demanded Bertsch pay a due balance of $1,395 or pay in installments of $500. But Bertsch didn't owe anyone any money.
Then, after about a dozen calls from the alleged debt collector, Bertsch received a call from a woman pretending to be a Yuba City police officer. According to Bertsch, the woman identified herself by name, said she was a police officer with Yuba City Police, and then said "I'm coming to your work, you are getting arrested and sent to jail for seven to 21 days." Adding to her concerns, Bertsch later dialed the number shown on her cellphone and it truly did connect her with the police department.The Better Business Bureau says that number has been used by numerous scam artists. "It says it's located in the Bronx. But people have gotten calls from it from all over. It's even traced from out of India," said Almond. "All they're doing is dialing for dollars all day long."
According to a press release from the FBI, Internet Crime Complaint Center has received many complaints from victims of payday loan telephone collection scams. The release stated: "How the fraudsters obtained the personal information (of victims) varies, but in some cases, victims have reported they completed online applications for other loans or credit cards before the calls started."
The Better Business Bureau say people need to realize that the police department does not call to collect debts."This is mostly old news to those of us who represent consumers. The scary part is the debt collector using technology to mask its number and have it appear to be the police. The police WILL NOT call you over a debt. It is a civil matter. Do not let the debt collectors bully you over this.
If you get a call like this, call the police and confirm they are not calling you. Then file a report. You may also wish to contact the BBB, the FTC and talk to an attorney about your rights.
Last week I wrote about the California Attorney General suing JPMorgan Chase for its debt collection practices. Today, Lawyers.com comes out with an article abou tthe same issue.
There are two issues that should be pointed out.
First, these practices are simply not acceptable. Suing someone without proper support should not be permitted. Obtaining default judgments when you know that you have not properly served someone needs to be stopped. This lawsuit from the California Attorney General goes a long way to stopping that.
Second, the sheer volume of lawsuits filed by debt collectors clogs the court. "Tort reformers" talk about how many lawsuits are filed by personal injury attorneys. JPMorgan Chase was filing more in a DAY than are filed in months by personal injury attorneys. And that is just one debt collector. This clogging of the court uses judicial resources that could be used to help so many more Californians. While JPMorgan, Capital One, Brachfeld and Associates, Legal Recovery Law Offices, Frederick J. Hanna and Associates and the other debt collectors have every right to use the court system, if they are filing lawsuits without making sure they have the proper paperwork, it delays, even denies, justice for the rest of us.
Remember, debt collector's will come after you aggressively. While the California Attorney General is doing her part to stop this, you must still be vigilant and protect your rights.
According to Yahoo, JPMorgan Chase was sued by the California Attorney General. The basis of the lawsuit is that JPMorgan Chase is filing lawsuits in California without any support. Basically, these are nonsense lawsuits where Chase cannot prove anything, but filing them in an effort to bully consumers into paying.
Yahoo reports that the lawsuit claims that JPMorgan Chase assembled a “debt collection mill that abuses the California judicial process,....” The lawsuit seeks "to hold Chase accountable for systematically using illegal tactics to flood California’s courts with specious lawsuits against consumers...."
This isn't anything new. Although JPMorgan Chase filed 469 lawsuits IN ONE DAY, they are not alone. Capital One, Persolve, LLC, Bank of America, Wells Fargo, FIA Card Services, Brachfeld and Associates, are all doing the same thing. The lawyers have very little information when they file a lawsuit. Once an answer is filed, they don't want to proceed because they cannot prove the facts.
If you have been sued by JP Morgan Chase, Capital One, Persolve, LLC, Bank of America, Wells Fargo, FIA Card Services, Brachfeld and Associates, Legal Recover Law Offices, CIR Law Offices, or any other debt collector, you should immediately talk to an attorney. My office gives a free consultation to anyone sued by a debt collector.
Question: I have received a letter from an attorney demanding money after my child (or myself) was accused of shoplifting. Do I really owe this money?
Answer: Maybe.California Penal Code section 490.5 states "The parent or legal guardian having control or custody of an unemancipated minor whose conduct violates this subdivision shall be jointly and severally liable with the minor to a merchant or to a library facility for damages of not less than fifty dollars ($50) nor more than five hundred dollars ($500), plus costs."
But does this mean you are automatically on the hook? No. Many companies will have an out of state law firm, typically in Florida, send a demand letter for $500. Sometimes the letter is for more claiming additional "costs." This works out well for the retailer because it is hard for an individual to find an attorney willing to help for less than $500. So it becomes a situation where it is cheaper to pay these folks to go away then it is to hire an attorney and fight it.
If you receive one of these letters, you should look for an attorney to consult with. I offer free consultations on this issue of restitution. Call me or email me and we can talk about the letter and your rights.
Question: I have been sued by a debt collector. Who do I call?
Answer: An attorney.
Let me explain a bit. Twice in the last week, I have had people call me after being sued by a debt collector. Both folks think the lawsuits may be fraudulent, but they are named as defendants. They have been served and don't know what to do. With both people, I explained to them the process and offered to assist them. Both people decided to take other courses of action.
In these cases, both people decided to call the Federal Bureau of Investigattion (FBI". The folks at the FBI are great. They do great work. They are not going to get involved in a debt collection lawsuit that you think is fraudulent. They won't even get involved if you can prove it is fraudulent.
I received a call last week from a "payday lender." The call was clearly fraudulent. I took down all of the information and called the FBI. The fine folks at the FBI told me that the Federal Trade Commissions (FTC) is handling this. So I called the FTC. The FTC took a report and told me they would add it to their complaint list. That is it. Nothing else.
There are only two people who can answer a lawsuit for you: you or an attorney. You can call legal aid or someone like that, who may be able to assist you. You should start with an attorney. If the lawsuit is really fraudulent and you can prove it, then you may be able to recover damages under the Fair Debt Collection Practices Act (FDCPA) or the Rosenthal Act.
But calling the FBI or the FTC or the attorney general (AG) or any other entity, is not going to protect your rights. A judgment can still be entered against you. The only way to protect yourself is to file an answer with the court.
Question: My phone rings nonstop with calls from a debt collector. Is this legal?
Answer: NO! Debt collectors cannot call you at all hours of the day. I just looked at a phone log that a client had that showed 6 calls in a row from a collector. That is a ridiculous number of calls in just a few minutes. They are clearly making her phone ring slowly to harass her.
But what was worse is that the calls were at 2:00am. She was receiving calls at all hours of the day and night. This is a clear debt collection violation.
The Fair Debt Collection Practices Act states that the debt collector cannot call you at unreasonable times. We have it better in California. The law in California is that a debt collector cannot call you before 8am or after 9pm. This is written into the Rosenthal Act.
The best approach is to tell the debt collectors that you will only correspond with them in writing. Do not accept any phone calls from them. Put it in writing. And, of course, if they violate that, call an attorney.
This is exciting news for folks who may be behind on their student loans. President Obama has cut the commission that debt collectors get on student loans. Why does this matter?
Student loan debt collectors are some of the most aggressive debt collectors. Why? For two reasons. First, student loans are generally not dischareable in bankruptcy. So, the debt collectors don't get worried when you say you are going to file for bankruptcy. It is not really a threat. Second, some debt collectors wrongly believe that they are not bound by the Fair Debt Collection Practices Act or the Rosenthal Act. So they get more aggressive with you.
This change is going to decrease the incentive debt collectors have to be aggressive. They will not make as much money so they will not be so cavalier. This should make it easier for consumers to work out a payment arrangement with a debt collector if they get behind.
If you realize you are going to be late on your student loans, do not bury your head in the sand. Talk to an attorney about what options you have. Even if bankruptcy is not an option, you may have other rights.
Q: What is a validation letter and why should I send it?
A: A validation letter is simply a letter to the debt collector telling them that you dispute the debt. It can be sent by either the consumer or by an attorney on the consumer's behalf. But, essentially, the letter is the same. It reads like this:
"I am in receipt of your letter of XXXX, 2013. I dispute this debt. Please provide validation of this debt to me. You may not take any further efforts to collect this debt until you validate this debt. Further, your validation must include a copy of the assignment to you.
You may not report this to the credit reporting agencies while this matter is being disputed."
Short and simple. And it complies with the Fair Debt Collection Practices Act ("FDCPA" and the Rosenthal Act ("R-FDCPA").
Now for the second part, why you should send it. This letter, or something very close to it, is the requirement in the law that makes the debt collector stop calling you, stop bothering you, and show you that you may actually owe this debt. (Just because they send you something, doesn't mean it is true.) If you do not respond, the debt collector could allege that you agree you owe this debt since you did not respond. Thus, any time you receive a letter from a debt collector, you should send a validation letter. Note that a phone call will not protect your rights.
A validation letter will protect your rights. When a debt collector calls you for the first time, they then have five days to get you a letter. Once you receive that letter, you only have 30 days to respond with a validation letter. Do not delay. Either hire an attorney to send one or send it yourself. But make sure you get that validation letter out.
There must be something in the air. I have had two calls this week for helping defending lawsuits based on the concept of "written instruments." What does this mean?
As I understand the latest theory, and it has changed some over the years, the debtor takes out a credit card. They charge a few thousand dollars, usually about $2,500 or $3,000. Then, they do not pay the bill.
Now, they wait until they are 60 or 90 days behind, then they send a "written instrument" to the bank stating that they do not owe the money, that there is no money in the world and that the bank has been paid its money. They also include a check on a closed account as "payment."
Ultimately, the bank does nothing. The bank sells it to a debt collector. The collector starts its collection practices. The consumer does nothing. The collector files a lawsuit. Now the consumer wants to defend the lawsuit on the basis of the "written instrument."
DO NOT TRY THIS! It does not work. It is not legal. In fact, knowingly sending a check written on a closed account can be a crime in some areas. This is some of the worst advice you can get. DO NOT TRY THIS! (I feel like I need to be perfectly clear.)
Even if you are never charged with a crime, this will not work as a defense. This is so flawed that I do not even know where to start with the problems. Suffice it to say, that if this worked, everyone would do it and the financial system of the world would crash.
If you are going to defend yourself in a lawsuit, do not think this will work. Talk to an attorney before you follow any advice you read on the internet. Just because it is on the internet does not mean it is true!