Debt Collection Agencies are Prohibited From Using Harassing or Abusive Practices
The New York State Attorney General’s office has issued warnings that certain tactics will not be tolerated by debt collectors in New York State.  These include: Harassing or Abusive Tactics – threatening the use of violence; continuously calling you with intent to annoy or harass; using obscene language; or not disclosing their identity when they call. False or misleading representations -   Saying they are from the government; telling you they will arrest you or put you in jail; lying about the amount you owe; using the name of a false

A Houston based “Debt Invalidation Firm” charged with Unlawful Conduct
The Texas Attorney General recently charged a Houston-based credit repair firm with violating the Texas Deceptive Trade Practices Act (DTPA).  The action filed by the Texas AG’s office names Jubilee Financial Solutions LP, also known as The Credit Card Solution, Jubilee Financial Management LLC, and the companies’ owner, Robert Mitcell Lindsey. The defendants claimed their “debt invalidation” program could eliminate credit card debts by helping customers fight credit reporting agencies, dispute debts and sue debt collectors.  They also promised access to legal services, which they claimed could get their customers monetary damages from lawsuits against d

Store Creditors are refusing to accept partial payments
A recent client advised me he actually went to the J.C. Penny’s store to make a partial payment on his account ($50.00).  The employee in Customer Service refused to take the payment because it was not the minimum payment.  What was the employee thinking?!  As crazy as it may sound, creditors are not required to accept a payment unless the payment is in the amount of the minimum amount due or for a greater amount.   My client was trying to do the morally right thing. Now JC Penney’s won’t receive any money from my client since he has decided to file for bankruptcy. If you liked that post, then try these...

Bogus Bill Collectors - Have You Been Called?
Yesterday, I opened up my email account to find a email from a debt collector who snarled at me that I had failed to pay for items ordered through paypal and demanded immediate payment as the debt had now been assigned to collection.   It looked pretty legitimate, the email had the required language about how “this is an attempt to collect a debt” and so forth.  But, no original creditor was listed.  The amount was small.   I knew I didn’t owe them any money so I certainly wasn’t going to pay them any  money, or even respond to the email.  And I started wondering….how much money has this outfit managed to scare out of folks? A rec

Debt Relief USA Inc.’s customers may get restitution
Texas Attorney General Greg Abbott took legal action to recover $4.6 million that a bankrupt “debt settlement” company wrongfully withheld from its clients in Texas and other states.  Additionally, the Texas Attorney General is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act, as well as attorney fees from this “debt settlement” company. When Debt Relief USA Inc. of Addison, Texas filed for bankruptcy protection in the Northern District of Texas in June of this year, many financially distressed consumers found their debt situation worsened.  Instead of getting the debt relief they were promised - they rec