No FDCPA Violation Exists If Offer Fails to Disclose Interest

June 16, 2021/in Civil Litigation/by diwanlaw

The U. S. Court of Appeals for the Second Circuit held that a debt collector did not violate the FDCPA by sending the consumer a settlement offer letter that did not disclose that his balance could increase due to interest and fees.

In Cortez v. Forster & Garbus, LLP, a creditor placed a consumer’s credit card debt with a debt collector for collection. After obtaining a default judgment, the debt collector sent several collection notices to the consumer.

One such notice provided the consumer various settlement options to satisfy the debt at a “substantial discount off the current balance due.” But, the settlement letter did not disclose that interest was continuing to accrue on the debt.

The consumer filed an action against the collection agency accusing it of violating the Fair Debt Collections Practices Act’s [the “FDCPA”] prohibition against false, deceptive, or misleading representations when collecting a debt, 15 U.S.C. § 1692e, for failing to disclose that interest was accruing on the account.

The Court ruled that, though a debt collector is required to disclose that the balance may increase due to interest and fees, the rule did not apply in this case because the settlement proposal clearly stated that acceptance of one of the options would satisfy the debt, and could not mislead the consumer.

The Cortez decision may limit some potential FDCPA lawsuits, but it does not close the door on all FDCPA lawsuits related to settlement offers.

If you believe that an abusive debt collector, creditor, or credit card company has violated your consumer rights, then Diwan Law can help you. Contact us today at 404-635-6883 to speak to an Atlanta consumer rights attorney.

What is a Debt Collector?

June 3, 2021/in Civil Litigation/by diwanlaw

What is a Debt Collector in Georgia?

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A “debt collector,” as defined by the Fair Debt Collection Practices Act [“FDCPA”], is a person or a business that regularly collects debts owed to another. Still, this definition does not fully explain what a debt collector is.

Most first-party creditors [credit card company or bank] or lenders will try to collect debts themselves before resorting to writing it off. Typically, past-due accounts won’t be charged off until they’re 120 to 180 days late.

After a consumer defaults on a loan, the account is sent to a third-party debt collector or buyer [hereinafter referred to as “debt collector”]. The debt collector then attempts to collect on the debt, rather than the first-party creditor or lender to whom the debt is originally owed.

The collection agencies and attorneys who collect these debts as part of their regular course of business are considered debt collectors. Also included are businesses that buy past-due debts from creditors or other companies and then try to collect them.

The debt collection market is significant and affects many people. The Consumer Financial Protection Bureau [“CFPB”] states that around one-third of consumers with a credit bureau file reported contact from at least one debt collector.

The FDCPA is the main federal statute regulating the consumer debt collection market. The FDCPA prohibits debt collectors from engaging in certain types of behavior [such as misrepresentation or harassment] when seeking to collect debts from consumers and grants consumers the right to dispute or stop some communications about an alleged debt.

The Fair Debt Collection Practices Act covers personal, family, and household debts, including hospital bills, credit cards, and car loans.

If a debt collector is contacting you, you need to speak to a consumer’s rights lawyer.

Contact Diwan Law at 404-635-6883 for a free case evaluation.

Common Violations of the Fair Debt Collection Practices Act

May 24, 2021/in Civil Litigation/by diwanlaw

Are you being harassed by debt collectors? Contact Diwan Law today at 404-635-6883 to schedule a free consultation to discuss how the Fair Debt Collection Practices Act [FDCPA] can help you.

When you fall behind on your debts, it seems like your creditors will stop at nothing to try to get you to make a payment. Fortunately, Federal law prohibits a wide range of unfair and abusive debt collection activities.

The Fair Debt Collection Practices Act [FDCPA)] protects consumers from harassment and abusive behavior by debt collectors and collection law firms.

If a debt collector violates the FDCPA, consumers may pursue a lawsuit against the collector. If successful, the consumer is entitled to monetary damages, and the debt collector or collection law firm will also be responsible for the customer’s legal fees.

Typical Violations of the FDCPA:

Harassment;
Verbal abuse;
Continuing to call a consumer after the customer has told the debt collector to stop;
Writing or calling the consumer after being notified that a lawyer represents the customer;
Threatening to report the consumer to the IRS;
Threatening to have the consumer arrested if he or she does not pay the debt collector;
Threatening to file a lawsuit against the consumer when none is intended;
Calling a consumer’s cell phone without permission;
Placing personal information on an envelope;
Misrepresenting or inflating the amount of the debt;
Failing to disclose that the company is a debt collector;
Contacting a consumer after 9 pm or before 8 am;
Threatening to take legal action, or sue, on a time-barred or “stale” debt.

If you believe a debt collector has violated the FDCPA, you may be able to take legal action and recover monetary damages. Contact Diwan Law at 404-635-6883 for a free case evaluation.

Are you being sued by Midland Credit Management?

May 18, 2021/in Civil Litigation/by diwanlaw

Are you being sued by Midland Credit Management or Midland Funding?

Midland Credit Management (MCM) and Midland Funding lawsuits can be intimidating and financially devastating. You need a Debt Collection Defense Attorney, Diwan Law, on your side.

What is Midland Credit Management and Midland Funding?

Midland Credit Management (MCM) and Midland Funding lawsuits can be intimidating and financially devastating. You need a Debt Collection Defense Attorney, Diwan Law, on your side.

Midland Credit Management and Midland Funding are debt collection agencies. Debt collectors buy delinquent accounts from banks, credit unions, consumer finance companies, hospitals, auto finance companies, and telecommunication companies.

When a person falls behind on credit card or car payments, he or she will receive a non-stop string of calls and letters from debt collectors, such as Midland Credit Management or Midland Funding.

If you ignore those calls and letters long enough, the debt collector will hire a lawyer who will send you an attorney collection letter.

A debt collection attorney’s collection letter is the last step before the collection agency files a lawsuit against an individual.

Many people think debt buyers, like Midland Credit Management and Midland Funding, prefer to avoid lawsuits because it requires them to pay lawyers and incur litigation costs. This is not true. If this were true, credit card lawsuits would be far less common than is the case.

What to do if you are being sued by Midland Credit Management or Midland Funding

You need to respond quickly when a debt collection company serves you with a lawsuit. The worst response is to do nothing. If you do not respond to the lawsuit, the debt collector may get a default judgment against you. Besides obtaining a judgment for the principal, the debt collector may be awarded attorney’s fees for the collection of the judgment.

Armed with the default judgment, the debt collection company can garnish your wages and bank accounts. What’s worse is that the judgment continues to accrue interest as the balance remains unpaid.

Before accepting a judgment against you, speak with a Debt Defense Lawyer

A collections defense attorney will explain your rights and the legal process, such as how long you have to answer the lawsuit, the proven defenses, and the impact of a judgment.

Contact Diwan Law

Our law firm is experienced in debt collection law and has an established record of protecting consumer’s rights and explaining your options to you when a company like Midland Funding or Midland Credit Management sues you. No matter where you are in the collection process, you deserve to know your rights and what to expect. Give us a call at 404.635.6883.

Debt Collection Defense: Violations of the FDCPA

Consumer Rights Attorney: Violations of the FDCPA

May 13, 2021/in Civil Litigation/by diwanlaw

If you have been one of the many victims of unlawful debt collection practices, then an experienced consumer rights attorney can protect your rights. Contact Diwan Law today at 404-635-6883 to schedule your consultation to discuss these violations of the FDCPA.

Protection from Unlawful Debt Collection Practices

Debt Collection agencies often employ persistent and overly aggressive tactics when attempting to collect outstanding debts. Many of these tactics are against the law.

Consumer protection statutes prohibit such behavior and allow for the recovery of damages and attorney fees.

The Fair Debt Collection Practices Act [“FDCPA”] specifically prevents these abusive debt collection practices.

Violations of the FDCPA

The Fair Debt Collection Practices Act regulates debt collection practices. It prohibits debt collection companies from using abusive, unfair or deceptive practices to collect debts from you.

Examples of the types of consumer debt covered by the FDCPA:

Mortgages
Credit cards debt
Medical debts
Car loans

Courts measure violations of the FDCPA by an objective standard called the “least sophisticated consumer” standard. See Jeter v Credit Bureau Inc., 754 F.2d 907, 913 (11th Cir., 1985).

FDCPA Restrictions on communications by debt collectors with Consumers when collecting a debt

Time and place–debt collectors may not contact you at an unusual time or place. [Generally speaking, they are prohibited from contacting consumers before 8 a.m. or after 9 p.m.]
Harassment- Debt collectors may not harass you over the phone or through any other form of contact.
Representation by an attorney- A debt collector may not contact you if a lawyer is representing you.

Examples of FDCPA violations in collections lawsuits

Prosecuting a Lawsuit Against A Consumer After the Statute of Limitations Expires

Continuing to prosecute a time-barred claim is a violation of the FDCPA’s prohibition against making false and misleading claims about the debt’s legal status. Fair Debt Collection Practices Act, 15 U.S.C. §1692e.

False and Misleading Statements About the Amount Owed

It is a violation of the FDCPA’s to file a lawsuit against a consumer for more than is owed. This action is a direct violation of the FDCPA’s prohibition against false or misleading statements. 15 U.S.C. § 1692e.

If you believe that an abusive debt collector has violated your consumer rights, then Diwan Law can help you. Contact us today at 404-635-6883 to learn more.

GEORGIA USED CAR DEALER FRAUD ATTORNEY

April 16, 2021/in Civil Litigation/by diwanlaw

At Diwan Law, we take consumer rights violations very seriously and work with individuals throughout Atlanta and the surrounding communities who have been victims of used car dealer fraud.

Used Car Dealer Fraud

Buying a used car in Georgia can be a great and exhilarating experience, but it can quickly turn into a headache if it turns out that the car dealer acted fraudulently. Fortunately, state and federal laws protect consumers from dealerships that take advantage of their customers.

Car purchases and leases are complicated transactions with which most Atlanta consumers have little experience. They involve Georgia titling and registration laws, trade-ins, financing, leasing, insurance, options, and other fees. Car dealers are well-versed in these transactions and sometimes take advantage of consumers.

A surprising number of Georgia new and used car sales involve auto dealer fraud, deception, and unfair business practices.

Common Auto Dealer Scams

Odometer Fraud: is a type of auto sales fraud that involves manipulating the odometer, so that it shows a number that is less than the actual mileage of the automobile.

“Yo-Yo Financing”: allowing a customer to leave the dealership with a vehicle under the mistaken belief that a loan application is approved and then having the consumer return to sign for a different, more expensive loan; and backdating new financing documents to the original purchase date.

Auto Fraud Involving Wrecked & Salvaged Autos: Used car dealers sell used cars that have been wrecked or salvaged without disclosing this to the buyer. If a car is in a wreck, even if it is adequately repaired, the automobile is worthless, and any equity the consumer had in the vehicle is gone.

“Bait and Switch” scheme: Advertising a vehicle for a specific amount and then telling consumers that the published deal is no longer being offered and offering to sell the consumer the same car at an increased price.

Most times, customers would not have purchased the vehicle had the used car dealer not made representations about the mileage or quality and condition. The used auto dealer’s failure to disclose the condition of the car is a direct violation of the Georgia Fair Business Practices Act.

If this happens to you, under Georgia and Federal laws, you may be entitled to recover damages and compensation from the used car dealer.

If you have been a victim of car dealer fraud or car repair fraud, Diwan Law may be able to help.

Contact an experienced Atlanta Used Car Dealer Fraud Attorney, 404-635-6883, to discuss your case.

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