Posts tagged "debt collection practices"

Verdict serves as a warning to debt collectors in Minnesota

A Missouri woman was awarded $83 million by a jury who found that she was wrongly harassed over a debt that she did not owe. The woman was taken to court by Portfolio Recovery Associates LLC after the company claimed that she had a past due credit card debt of $1,000. However, the debt actually belonged to a man in the same area with a similar name.

Recognizing debt collection scams and protecting oneself

People in Minnesota who find themselves in a tenuous situation with debt are frequently targets of con artists who portray themselves as debt collection agencies or individuals who are authorized to collect debts. These con artists are putting new technology to use with the internet in garnering information about potential targets. They utilize that information to appear credible and get money.

Can a debt collector use false information to collect a debt?

Debt collectors who are contacting Minnesota residents may not use any false or misleading information to get a debtor to take action. For instance, a debt collector may not claim to be associated with any state or federal government entity. They may also not give misleading or false information regarding how much a debtor may owe or what actions may be taken if the debt is not repaid.

Third-party collector harassment and the FDCPA

Some Minnesota residents feel harassed by third-party collectors who are attempting to collect a debt that was initially owed to the original creditor. The manner in which third-party collectors may try to do so is regulated by the Fair Debt Collection Practices Act which places prohibitions on the collector engaging in certain acts.

What are debt collectors allowed and not allowed to do?

In the pursuit to reestablish credit, an individual will most likely encounter a debt collection agency and be forced to interact with them. The Fair Debt Collection Practices Act ensures all citizens of Minnesota basic protections against potential creditor harassment and outlines what the government considers fair debt collection practices.

Seizing property through unsecured loans

Some readers from Minnesota may wish to learn more about the actions available to unsecured debt collection agencies. Collection agencies working with a secured debt generally have the option of seizing assets such as homes in order to procure payment, but this option is not immediately available if the debt is unsecured. However, collection agencies working with unsecured debt may nevertheless be able to compel forfeiture in some cases.

Creditor harassment and debt collection

When Minnesota residents deal with debt collectors, they are entitled to certain legal protections. Some people may assume that debt collectors routinely engage in harassment and threatening behavior. However, many of these behaviors are actually prohibited by law. The Federal Trade Commission uses the Fair Debt Collection Practices Act to protect consumers from harassment by debt collectors. This Act applies to all kinds of debts, including credit card debt, medical payments and car loans. However, it does not apply to debts that are the result of operating a business.

Regulations for debt collectors in Minnesota

If someone owes a creditor money, they may start receiving letters and phone calls from debt collectors. It is important to note that these collection agencies are required to abide by the Fair Debt Collection Practices Act, which limits what they can and cannot do in the course of their attempts to have an individual repay a debt. Collection agencies are allowed to contact people through a variety of means, including in person and by phone, but when and how frequently is limited.

Legal steps to end debt collector harassment

Minnesota residents have likely read media reports about the sometimes dubious activities of debt collection agencies. A popular tactic is to make frequent phone calls to an individual's residence or place of business in an attempt to wear them down. While this may sometimes be an effective tactic, the law does provide ways for those receiving this type of call to put an end to the harassment. The Fair Debt Collection Practices Act specifies what a debt collector can and cannot do, and it provides a way to put an end to these constant phone calls.

Protections offered by the FDCP

Minnesota residents who wish to reestablish their credit may find it interesting to learn more about the methods of collection implemented by many creditors. As the uncollectible consumer debt rises, it creates a market for companies who purchase many defaulted accounts and practice different techniques when pursuing payments.

Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

Toll Free: 888-366-0827
Phone: 651-968-8096
Fax: 651-633-7562
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