In reality in Pennsylvania, a debt collector cannot simply place a judgment on you.  They must go through the entire lawsuit process.  See I’ve Been Sued By a Debt Collector in Pennsylvania for an overview of the process.  Also, see General Overview of the Debt Judgment & Execution Process.  Remember, you should never ignore a lawsuit that has been filed against you.

If you have had a debt collector make a threat to put a judgment on you, have been the victim of any other kind of debt collector harassment or abuse, or simply would like to discuss your debt problems, please contact us.  If you are not located in Pennsylvania, you can contact us for the name of an attorney who practices in your area and/or visit the National Association of Consumer Advocates attorney referral website.

Given the state of the economy, attorneys warn, companies are getting more aggressive when it comes to collecting their due.

via Rare growth area for firms: debt.

If you would like more information or are looking for an experienced consumer attorney to defend a credit card lawsuit filed against you, contact us.

• Communicate with a third party about your debt unless they have your prior consent or the express permission of a court.
• Communicate with you at unusual times or places, or at work if they know your employer does not approve of the contact.
• Harass, oppress, or abuse you or any third party while collecting a debt.
• Make or use any false or misleading statements when collecting a debt.
• Use unfair or unconscionable means to collect a debt.

Source:  PA Attorney General Tom Corbett’s Bureau of Consumer Protection Booklet

The following are links and telephone numbers to assist you:

• Consumer Complaint form  (online)
• Consumer Complaint form (printable)
• Do Not Call Complaint form
• The PA Attorney General’s Bureau of Consumer Protection Booklet (see pg 25-26)
• PA Bureau of Consumer Protection - 1-800-441-2555

However, people who have filed for bankruptcy and/or received a discharge have been increasingly receiving collection calls and/or letters from debt collectors (not the original creditors listed on the bankruptcy.)  Even though you are protected by the automatic stay/discharge order, the debt collector will claim that they did not have knowledge of the bankruptcy.  They simply purchased the debt from the original creditor who did not tell them that a bankruptcy was filed.

If you are in this situation, you should contact an experienced consumer attorney for assistance.  It is important to notify the debt collector (preferably in writing by certified mail, return receipt, with a copy of your “Notice of Bankruptcy Filing”) of your bankruptcy.  After the debt collector has knowledge of the bankruptcy, they must stop collecting on the debt.  If they do not, you may be able to take action against the debt collector under either 1) the Bankruptcy Code as a violation of the automatic stay/discharge order or 2) the Fair Debt Collection Practices Act.

You are not alone and YOU HAVE RIGHTS!  Contact an attorney today!!!

Congress’ intent on creating strict liability lies within the FDCPA.  Section 1692k(a) reads “any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person…”  (Emphasis added.)  Further, the sections of the FDCPA repeatedly refer to “may not use any” and “may not engage in any” which further supports Congress’ intent on making the FDCPA a strict liability statute.

(Copyright - Amy B. Good-Ashman 2008)

The Congressional findings section of the FDCPA are very interesting and I will summarize them below:

1.         Congress found that there “is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors” and that these practices “contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to the invasions of individual privacy.”  Section 1692(a).

2.         It was also the opinion of Congress that the “existing laws and procedures for redressing these injuries are inadequate to protect consumers.”  Section 1692(b).

3.         Congress stated that there are ways for debt collectors to collect debts other than by abusing consumers.  Section 1692(c).

4.         It was also the opinion of Congress that, even if the abusive activity occurs entirely within one state, that abusive activity directly affects interstate commerce.  Section 1692(d).

5.         Congress stated the purpose of the FDCPA was to:

            a.         “eliminate abusive debt collection practices by debt collectors”

            b.         to ensure that debt collectors who are not abusive are not “completely disadvantaged”

            c.         “to promote consistent State action to protect consumers against debt collection abuses.”  Section 1692(e).

After reading Congress’ findings and declaration of purpose, it becomes obvious that Congress intended first and foremost (almost to the extent of exclusively) to protect consumers from abusive debt collection by debt collectors.  There is no mention of protecting abusive debt collectors.  None, zero, zip, nada.  The only intent Congress had in creating the FDCPA with regard to debt collectors was to “insure that those debt collectors who refrain from using abusive debt collection practices are not completely disadvantaged.” (Emphasis added.)  Section 1692(c).  Note that this isn’t even a strong protection for law-abiding debt collectors, just an expression that Congress thought it was okay to disadvantage debt collectors (probably given debt collector’s huge advantage over consumers) so long as compliant debt collectors are not “completely disadvantaged.”

The FDCPA is approximately thirty years old.  Although the FDCPA has been refined and fleshed out by case law over the years, it is time for Congress to take action to ensure further and better protections (and updated damages) and remedies to protect consumers from abusive debt collection activities and to affirm that the Courts are following Congress’ intent in their application of the law.

(Copyright - Amy B. Good-Ashman 2008)

Charge-Off
The creditor “charges off the debt.”
The debt is still owed.  It is charged off on the books of the creditor.

Debt Collectors
Primary Debt Collectors
*  The debt gets assigned to them first.
*  These debt collectors tend to be better collectors.  Not better in the sense of treating consumers better, but better in that they are more successful in collecting on the debt.

Secondary Debt Collectors
*  The debt gets assigned to them after the primary debt collector is not successful.
*  These collectors tend to be more aggressive.
*  Note that if a “cease contact letter” was sent to the primary debt collector, this debt collector will argue that it does not apply to them because they did not have knowledge of the letter when they received the debt account.  You may have to send a second “cease contact letter.”

Tertiary Debt Collectors
*  The debt gets assigned to them after the primary and secondary debt collectors are not successful.
*  This tends to be in the debt buyer market.  This can be a huge disadvantage for the consumer because they are ruthless collectors who tend to use no holds barred methods in collecting.  You will have trouble with these collectors if you have filed bankruptcy anywhere in the foregoing process because they either 1) do not care that you filed bankruptcy on the underlying debt or 2) do not know that you filed bankruptcy on the underlying debt.
*  Again, as with secondary collectors, it is probably best to send a new “cease contact letter” to ensure that the collector does not contact you and is aware of the status of the debt from your end (i.e. that you filed bankruptcy, that you are represented by an attorney, that you don’t owe the debt, etc.)

The primary goals of debt collectors are to:
1.  Get a payment - partial or full.
2.  Get an acknowledgment from you that you owe the debt.
3.  Get a promise to pay the debt.

It is important that you contact an experienced consumer lawyer before you make a payment, acknowledge that you owe a debt, or promise to pay a debt.  These actions can affect your remedies in the future.

(Copyright - Amy B. Good-Ashman 2008)

• Always tell your attorney if the debt collection involves a business debt.
• Always tell your attorney about other collection actions against you.

• Tell the truth, the whole truth, and nothing but the truth to your attorney.  By not doing so, you jeopardize your attorney’s ability to assist you.

Be Reliable

• Always provide your attorney with your current contact information.
• Keep appointments when scheduled.
• Provide your attorney promptly with any requested documents or information.
• Show your attorney you care about your case.
• Be involved, motivated, and participate in your case by:

           1) Writing your own factual summary and mark it as “privileged” in advance.  Supply it to your attorney.

           2)  Providing your attorney with ALL documents (including letters, envelopes, letters you sent, receipts, etc) and all tape recordings.

Be Presentable

• Remember you may have to give depositions and/or appear before a jury.
• You do not have to get a “make over” but you do have to be neat and tidy and appear to care about yourself and your case.

(Copyright - Amy B. Good-Ashman 2008)