Debt Collection Answer Blog

This Debt Collection Defense Blog gives a brief overview of current legal forms articles, updates, and news to help you navigate the court system and defend your legal rights against unscrupulous debt collectors.

Getting a Credit Freeze: Five Things You Need to Know

A credit freeze, which is also referred to as a security freeze, allows you to block an identity thief from opening a new account or line of credit using your name or identity. A credit freeze keeps new creditors from accessing your credit report without your permission. If you activate a credit freeze, an identity thief cannot take out new credit in your name, even if the thief has your Social Security number or other personal information. This is because the credit freeze has the effect of blocking creditors from accessing your credit report....

Responding to a Debt Collection Lawsuit: Defenses

Each month, thousands of consumers are faced with abusive and improper lawsuits by credit card issuers for credit card debt that stems from charges that were not authorized by the consumers. Sometimes, the charges are the result of the card issuer's blatant negligence in failing to detect unauthorized use of the account. In other circumstances, credit card issuers bring lawsuits against consumers that are prohibited by a federal law known as the Consumer Credit Protection Act (CCPA). Under 15 USCS § 1643 of the CCPA, a cardholder's liability for unauthorized charges is limited to $50.00. All credit cards, whether used for business or consumer purposes, are covered by the $50 liability limit. ...

Federal Appeals Court Rejects Midland Funding's Claim That It Is Exempt From State Usury Laws, Allows Consumer Class Action Case To Proceed

By:       Marc A. Rapaport, Esq.
            January 29, 2017

In the case Madden v. Midland Funding, LLC, which has been pending for more than five years in United States District Court for the Southern District of New York, plaintiff Saliha Madden has courageously challenged the unlawful debt collection practices of Midland Funding, one of the largest and most unscrupulous buyers of consumer debt in the United States. Because so many Americans have been devastated both emotionally and financially by Midland's violations of the law, we are taking this opportunity to describe how one consumer has courageously fought back. You can read a copy of Ms. Madden's federal court complaint against Midland Funding here.

Information on how to respond properly to someone suing you for debt collection in state court

April 01, 2016

You will find that answering a debt collection complaint in state court is a far less complicated and a much faster process than you may have otherwise suspected, especially if you have a sample answer form to consult as a template for your own answer form. Please keep in mind that the type of answer form described below only applies to a specific type of debt: unsecured debt, which involves creditors such as credit card companies, medical providers, and service providers. The first thing that you need to know is that there is an entire industry based around debt collection and debt buying - we're talking corporate revenues over $2.4 billion a year. One of the reasons why debt collection is so lucrative is because most debtors don't respond to the complaints that they receive. This is a huge mistake because if you respond to a complaint and put up some form of resistance, many times the debt collection company will just walk away because there are easier targets to be had that won't respond. Ideally, a debt collector is looking for something called a default judgment, which means the judge rules against you because you didn't show up to prove your side of the story...

FDCPA Claims Against Attorneys

March 17, 2016

The Fair Debt Collection Practices Act (FDCPA) is a Federal statute enacted by Congress in 1996 to protect consumers against abusive and deceptive practices by debt collectors. The FDCPA is a powerful law that enables consumers to obtain monetary damages against debt collectors who lie, are verbally abusive, or engage in other unscrupulous tactics. Today, it is commonplace for consumers to file claims for damages under the FDCPA against lawyers who represent collection companies...

Time-Barred Debt Collection Complaint Violates the FDCPA: Illinois Appellate Court Weighs In

March 16, 2016

In its March 4, 2016 decision in HBLC, Inc. v. Egan, the Appellate Court of Illinois, First District, reinstated the debtor's counterclaim against the debt-collector and its law firm for knowingly filing a debt collection lawsuit to collect a debt after the five-year statute of limitations on the debt had already expired. In so holding, the Illinois court joined the 7th and 11th Circuits and District Courts in Indiana and California in holding that under the Fair Debt Collection Practices Act (FDCPA), it is unlawful for debt collectors to knowingly bring invalid debt collection lawsuits ...

Save Your Credit Score and Financial Health by Responding to a Debt Collection Lawsuit: File Your Answer and Assert Your Affirmative Defenses

September 15, 2015

Falling behind on bills is stressful. Getting calls by debt collectors or being served with a civil summons and complaint for debt collection can cause consumers to feel a sense of humiliation that hinders them from taking basic (and straightforward) steps to protect their legal rights and financial health. Because of medical issues, job loss or other catastrophic events, people may go further into the debt collection process than they ever imagined ...