Most debt collection efforts by the bank and their attorneys are governed section 12 of the Fair Debt Collection Practices Act (FDCPA). This Federal Act governs the types of letters and language allowed in letters used to collect debts. Visit our website www.myCREDITatty.com to read Section 807 for 16 examples of false or misleading tactics used by typical debt collectors and their attorneys. Debt collectors and their attorneys can face fines up to $1,000.00 per violation and potential punitive damages in the event that you or your reputation is damaged through their dirty tactics.
Practically speaking, the bank will begin calling and writing the moment you fall behind on your mortgage. This type of collections activity will continue until the bank files a foreclosure suit against you. Calls from the bank during our preforeclosure representation process may continue indefinitely despite our efforts to stop them. If they do not stop pursuing their collections upon proper notice then you may be able to file a counterclaim to their foreclosure suit for violation of the FDCPA. The best thing to do is simply give the bank the name and number of our law firm and ignore their calls. Please remember, that all written letters from the bank are very important and should be opened and read. It is important that you maintain a thorough understanding of your account throughout this process. Any documents whatsoever sent from the Court or the Bank's attorneys should immediately be sent to us, as this will always be more crucial information regarding any foreclosure law suit.
Visit our website www.myCREDITatty.com for information on pursuing legal action against a debt collector in violation of the FDCPA.
The purpose of the FDCPA letter you signed in our intake packet is to force the bank to prove they are the true owners of your mortgage. In many instances your loan is being collected by a servicing company that was not the original lender at the time you closed the loan. Often times these servicers do not have properly executed assignments of the note and mortgage. Our letter will ensure that your rights are protected in court once the bank files their foreclosure suit.
The end of the phone calls typically occur once a foreclosure suit is filed against you. When this happens the banks attorneys run to court with the hope that you do nothing and go away. If you have filed bankruptcy, you should immediately notify all creditors and debt collectors in writing that you have filed bankruptcy, and provide them with the case name, case number, and filing date, or a copy of the petition that shows it was filed. If a creditor continues to attempt to collect, you may be entitled to take legal action against the creditor to obtain a specific order from the court prohibiting the creditor from taking further collection action. If the creditor is willfully violating the automatic bankruptcy stay, the Court can hold the creditor in contempt of court, fine the creditor and award damages.
There are several other consumer statutes that may also govern the collection of debts. However, keep in mind that none of debt collection laws place an absolute prohibition against a creditor from collecting its debt in a reasonable manner. Most of the prohibitions on collections activities are largely designed to protect against abusive and unreasonable collection efforts. What is abusive and unreasonable is usually a case by case situation, but there are some practices in which the Courts have already decided what will be a violation of the law. While it may not be possible to stop all collections activities in their entirety, you may have a cause of action if the collection activities become abusive and unreasonable. As a result, we recommend that you keep a written log of all collection attempts which you believe are abusive and unreasonable.