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Carry more people are out of work these days and with no -- and no money it means bills are put on hold.
-- debt collectors are busy -- -- and now they're getting sued -- cut consumers for harassment.
Plus -- under the fair debt collection practices act are on the rise and back again.
Coming your assets and letting you know your rights is John -- consumer president where credit dot com.
Now -- I love talking to you because you know this stuff six ways to Tuesday I also know that you.
In involved in close to 65 if not more of these lawsuits tell everyone what they are first to start.
-- just declared I've been an expert witness than those lawsuits not a carried out.
I didn't manually you got and -- Boehner actually it was you know let him come ask that you are not -- -- Hi I'm on the -- called it home at 3 -- and threatened that you go to jail and haggard used -- -- it out which incidentally is illegal.
Now that there's a federal statute called the fair debt collection practices act or the FDCPA for short.
-- -- company in Michigan called web -- actually tracks these lawsuits and 2010.
We are on pace for 121000.
Of these lawsuits to be filed now.
That may not sound like a lot Tracy but last year -- 9000 the report 6000 and -- -- the shade over forced out albums so in three years.
We've seen a three fold increase in these types of lawsuits because collection agencies are more aggressive.
And -- are more apt to cross that line because they're very very busy because more better but more -- is going into the fall and consumers frankly.
Are fed up and one of the ways that they're fighting back is they're finding attorneys were willing to take these cases on contingency which means no money up front they're taking a piece of a settlement.
And they're going after some of these -- of collection agency.
You know what it might punishments as a kid when I was a college in college was to work in a collection agency my mother got me a job in the -- -- -- I know it's like to be any other entities but phone calls.
But tell everyone what they are not allowed to do and I have to -- -- doing these things.
And and luck this is good as -- previous employee of a collection agency probably now.
That they're not all bad and they're not out there just floating along ignoring what the law allow the -- and does not allow them to do.
First off they cannot harass you which is a little bit -- because the act of attempting to collect that debt.
From someone who's not willing to pay isn't it is in and of itself somewhat -- thing.
They're not -- to call you an odd hours they can't call you late at night or very early in the morning.
This is the -- when they're not allowed to disclose details about the debt to a third parties -- it's your mom or dad on the phone or your neighbor and tell them hey Tracy about paying her bills -- -- the spot thousand dollars -- you can.
If you -- -- -- change out of her purse.
These types of things often result in what's called a violation but they don't necessarily always result in velocity it's when the consumer has been has been -- -- And they want to take that next step in try to protect themselves legally by filing one -- -- FTC -- losses.
Right and now but there are things these agencies are these collection of people can -- and one of the things and you -- to call family and friends and I remember.
They gave us a list of family friends ex husband's ex spouses weaken basically climbing -- and find money.
You can call them once and the only reason you can call them to find out how to contact you cannot tell them about the debt right and they cannot call them repeatedly same thing about -- if you tell them do not call me at work that are not allowed to fight a war.
If you send them something or writing that says do not contact me anymore about this debt.
And they have to stop contacting it doesn't -- making it still suit you and that doesn't mean that they don't have to report to the credit bureaus they're deathly -- gonna do that.
But they just can't do that those things any longer and one of the most common mistake that they make.
It's trying to collect a debt -- -- -- does not actually meaning that it's a -- some sort of mixed identity Tracy -- here vs Tracy Byrnes an error.
Or you've been the victim of identity theft and truly the debt which may -- your name doesn't belong to you because some sites for -- democratic -- your name and that's why.
They're tracking you down that is clearly.
-- people should know they can garnish your wages with the judge's consent and they can pull your credit reports.
Thomas what about the success of these lawsuits out someone's cigarette you know I had a debt collector asking me call me all night harassing my kids.
I get somebody representing how part of this felt like I wind.
Well I'll be early on recipients 65 cases brought an expert -- -- I'm feeling inside a courtroom three times.
The vast vast majority of these cases -- in the -- makes at all are for two reasons day.
The insurance companies do not want these to go to court all these collection agencies have liability insurance in the collection -- but -- insurance companies have no interest and then going and sitting in trial -- from a group of consumers have likely got a collection of phone calls themselves.
-- the vast majority things settle straight away for a few thousand dollars.
If they do go to court absolutely -- if you've got to get argument then you certainly can win but.
You -- very very honest about the -- some consumers say I've been damaged by this collection when they got fifteen other legitimate negative bottom about the credit report.
That's hard to say been damaged when you've got so much other on related bad stuff.
It gives me nightmares of I think back to my days in -- cubicle -- trying to collect money John I don't know who they can still Muster being -- that.
You bet John Alzheimer consumer -- president credit --
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