Last week, a Brooklyn judge ordered strongly suggested that the law firm of Pressler & Pressler, “one of the biggest in the collection industry,” pay a day’s worth of income to the man they falsely accused of owing an unpaid debt. To encourage the firm to do the right thing, Judge Noach Dear scheduled a sanctions hearing but told the firm’s lawyer, T. Andy Wang, that he might drop it if they pay up. [More]
debts
Judge Tells Debt Collection Firm To Pay Stranger $115 For Dragging Him To Court
By 11.30.09
Use The Debt "Snowflake" Method To Pay Off Debts
By 4.7.09
You’ve probably heard of the debt snowball method used to pay off debts, well here’s the “debt snowflake method.” Basically what this guy does is apply every extra bit of money he gets, finds, or earns to paying off this debt. Money from yard sales and eBay, change under the couch, and any leftover funds at the end of the month not earmarked for future expenses, he keeps throwing each of these at paying down his debt. Every little bit helps!
Citibank Won't Accept The Extra Money You Sent To Payoff Your Student Loans
By 3.28.09
We’re all about to see more money in our paychecks thanks to lower payroll taxes, but if you want to use the savings to payoff your student loans, you better act on the one day that Citibank will take your money. At least that’s what Citibank told reader Valori, who tried sending the bank a check with instructions to apply it towards the principal on her student loans. The bank instead applied it to her usual monthly payment and told her that the only way to pay down her principal was to “setup an automatic payment on the Citibank website to debit on the same day as [the] automatic payment is direct debited.” Does that seem easy to anyone?
Three Tips To Keep The Recession From Depressing Your Relationship
By 3.7.09
Money can ruin relationships, but by talking honestly about finances with your significant other, you just might emerge from this depressing recession as a couple. Even if your finances are deteriorating, there are a few ways to keep your money problems from rotting your relationship.
IRS Fires Private Debt Collectors, Plans To Pursue Deadbeats On Its Own
By 3.7.09
The IRS has ended a controversial program that allowed private debt collectors to pursue individual debts owed to the government. The private debt collectors, described as “bounty hunters who collect taxes from vulnerable people for profit,” were allowed to keep 25% of any collected debts for themselves. Before we celebrate, let’s all take a moment to join Senator Charles Grassley of Iowa in thinking about those poor private debt collectors who no longer have jobs harassing and abusing people…
Ritz Camera Files For Bankruptcy
By 2.23.09
Ritz Camera, an occasional and colorful character on our blog (scam confessions! feedback bribery!) has just filed for Chapter 11 bankruptcy protection.
Is Volkswagen Violating The Fair Debt Collection Practices Act?
By 9.27.08
Tim’s neighbor received a call from VW Credit asking her to walk across the street and leave a note on her neighbors’ front door and VW Bug asking them to call back their creditor. Calls like these are known as block parties, and they are a direct violation of the Fair Debt Collection Practices Act.
AT&T Sends Bills To Collections Ten Days After They’re Mailed Out
By 4.1.08 — Updated: 10.25.12
Reader Tom wrote in to let us know that during a conversation with AT&T customer service, a representative told him that it is typical to send out collection notices ten days after the original bill is mailed. Factoring in two or three days for the bill to arrive, two or three days for the check to get back to AT&T, and a Sunday or two, that leaves three to five days for customers to pay their bills before the angry letters and phone calls begin.
Dell Has Called Every Day For The Past Eight Months… And I'm Not A Customer!
By 3.23.08
Every day for the past eight months, Dell has called Kat to demand payment for a bill she doesn’t owe. Kat unfortunately inherited the phone number of a Dell debtor when she started a new job, something Dell would rather overlook—along with the Fair Debt Collection Practices Act. Kat has tried calling, escalating, and having the debtor tell Dell to leave her alone. Dell continually assures her that the problem has been fixed. And then they call again.
An Overdue Library Book Could Scuttle Your Dreams Of Home Ownership
By 12.28.07
That unreturned library book could threaten your credit score if it becomes a permanent fixture on your shelf. According to the New York Times, libraries are treating borrowed materials as debts and siccing debt collectors on borrowers who fail to pay longstanding late fines. The Queens Public Library has used Unique Management Services to collect over $11.4 million from delinquent borrowers, who may not realize that their unreturned books could eventually stand between them and a mortgage.
Michael Vick Sued For Not Paying Car Loans, Bank Repossesses Cars
By 9.29.07
Vick signed loan agreements as the CFO of Divine Seven, which bought at least 130 vehicles, including many Kia Spectra and Ford Taurus cars, through 1st Source Bank loans, according to documents filed in U.S. District Court in South Bend on Wednesday.
Verizon Sold 1,000,000 Old Accounts To AFNI, Who Then Fraudulently Tried To Collect Debts
By 9.13.07
A reader whose wife received a debt-collection notice from AFNI regarding a seven-year old Verizon account was actually just one of over a million consumers getting a similar letter, WSYR reports.
New Hampshire Bankruptcy Receivers Forced To Use Credit Cards
By 9.7.07
The main parking garage for the U.S. Bankruptcy Court in New Hampshire only accepts credit cards, reports Credit Slips.
Sample Letter For Disputing A Debt Collection Notice
July 18, 2007
If you’ve received a notice from a debt collector, but have reason to believe you don’t actually owe that debt (or owe a lot less than they say you owe), federal law gives you a brief opportunity to force the collector to demonstrate that you do indeed owe this debt, and to stop trying to collect on it until they have verified you are the one responsible, and that the money is still owed. [More]
Is It Legal For Debt Collectors To Leave A Message?
By 6.7.07
An interesting question was brought up over at the Consumer Law & Policy blog yesterday. There is a legal gray area when it comes to debt collectors and voice mail or answering machines. The Fair Debt Collection Practices Act was enacted in 1977, when answering machines were not in common use. According to Jeff Sovern, debt collectors reach a legal dilemma when faced with such a device.
Sallie Mae Is Still Ruining Your Life!
By 3.27.07
The FDSL just sent me a loan cancellation letter. They have decided that they will only take federal loans now to consolidate and Sallie Mae is primarily a private lender, and that is what they report my loan as. What the difference between a federal guaranteed loan and what they consider a federal loan through a private company is beyond me.
Are Minors Responsible For Their Credit Card Debts?
By 3.14.07
We’ve had a couple of different people ask recently if one is responsible for credit card debts made as a minor. See, people under 18 aren’t supposed to get credit cards (unless an adult cosigns). Now, some of these people lied about their age to get the cards. That’s fraud. Fraud is bad. Don’t do it.
How To Save Your Home from Foreclosure
By 3.9.07
WikiHow has a primer on saving your home from foreclosure. If you find yourself unable to make payments…
