We were retained after our client was sued by JP Morgan Chase’s Legal Department attorneys Philip A. Orsi, Lisa Dolin Eiss, Anthony J. Maniscalco, Buffy D. Thomas and Danielle E. Bishop.  We filed the necessary documents during the case, including discovery (interrogatories, requests for production and requests for admission) and motions.  After our aggressive representations, Chase’s lawsuit was dismissed without our client paying them anything.  If you need representation against a debt collector, call us.  We are here for the people who need legal assistance, anytime.  If you were sued in Brevard, Flagler, Lake, Seminole, Orange or Volusia counties, contact us at 1-888-834-5297 or through our easy web contact form.

The U.S. Federal Trade Commission (FTC) has announced that it is investigating several debt collectors and debt buyers. The specific companies named in the FTC investigation are:

• Arrow Financial Services, LLC (sometimes represented locally in central Florida by Hayt, Hayt & Landau / Robert J. Orovitz and Dana Kalman)
• Asta Funding, Inc.
• B-Line, LLC
• eCast Settlement Corp.
• Encore Capital Group, Inc.
• NCO Portfolio Management, Inc (sometimes represented locally in central Florida by David E. Borack of Borack & Associates)
• Portfolio Recovery Associates, LLC (sometimes represented locally in central Florida by Robert J. Orovitz from Hayt, Hayt and Landau)
• Sherman Financial Group, LLC
• Unifund Corp. (sometimes represented locally in central Florida by Jorge Palma or Armando Vasquez or Joseph Haynes Davis)

Many people do not recognize that debts can be bought and sold, just like cars or houses or other property. Debt buyers are companies who buy the debt from an original bank or creditor who provided credit to a consumer. It is widely known that debt buyers pay pennies on the dollar to buy the debt. However, that does not stop them from trying to collect the full amount of the debt and even filing lawsuits for more than they paid for the debt. Because these lawsuits are brought on behalf of the debt buyer, some consumers may not even recognize why they are being sued.

The documents requested by the FTC will reveal how much the debt buyers paid for the debts they bought. They also seek to recover significant additional information on what is, in my opinion, the questionable practice of debt buying and the relationship between the banks and finance companies that sell the debt and the debt buyers who buy that debt, and who often resell it to other debt buyers.

I believe the documents requested by the FTC will also be helpful in defending individual lawsuits brought by these debt collectors in Seminole County, Volusia County, Orange County, Brevard County, Lake County, and elsewhere in central Florida. Although most of the lawsuits are brought in County Court as either Small claims cases or County Civil cases, some may also be brought in Circuit Court. As a debt collection defense lawyer, I have experience in successfully defending consumers sued by debt collectors. I would be honored if you would select the Rudnitsky Law Firm to represent you as your credit card debt defense lawyer to defend you in your credit card debt lawsuit, auto and motorcycle repossession deficiency debt lawsuits, and other consumer debt lawsuits. There is no charge for our initial consultation. Please feel free to call us on our toll-free number (1-888-834-5297), or contact us by email.

The best way to protect yourself when a debt collector calls you is to know your rights under both federal (U.S.) law and under Florida law. Many of these rights are described in the articles on False and Misleading Statements by Debt Collectors, Harassment and Unfair Debt Collection Tactics, Debt Collectors Calling at All Hours, Debt Collectors Calling Family and Friends, and other articles on this blog.

This article describes the best way for you to assert those rights, regardless of whether or not you owe the alleged debt.

First, write down the name of the person who contacted you, and the name of their company. If they contacted you by letter or in writing using another method, save that letter.

Second, write the debt collector a letter requesting them to “validate” or verify the debt. You only have 30 days to request this. Click here for a list of the information to which you are entitled, if you request it.

Third, don’t be afraid to tell the debt collector to leave you alone. If you don’t owe the debt, put it in writing to the debt collector who contacted you.

Fourth, don’t agree to make even a small payment. Some slick debt collectors try to convince you to make a small payment, often claiming that it is needed to show your “good faith”. Debt collectors often do this on old debt which is past the Statute of Limitations, and for which they cannot legally sue you. However, if you make even a small payment, this can reset the clock, meaning they can then sue you for the entire debt, even if they couldn’t do so before.

Fifth, keep voice mail messages they have left for you, especially if they are abusive or show profanity. In Florida, you cannot generally record phone calls to or from debt collectors unless you first advise the debt collector that you will be recording their phone call. However, you can keep any recordings they leave on your answering machine or on your voice mail. You’d be amazed at how often debt collectors will leave threatening messages, including saying they work for law enforcement, or that you will be arrested, or that they will send someone to “send a message” to you. Even though these are illegal, abusive debt collectors will often still leave such messages.

Sixth, if you get sued by a debt collector, you must respond promptly, or you may lose automatically. You can either represent yourself and defend the lawsuit, or hire a consumer attorney experienced in defending debt collection cases who will know the rules of civil procedure and the rules of evidence.

Seventh, protect your credit score and credit report. You are entitled to a free credit report once per year from the major credit reporting agencies, so don’t hesitate to get it. Many consumers are surprised at all the debt that are listed, even when those debts are not theirs. Don’t wait until you apply for a car loan or home loan to discover these. And, if you find such debts that are not yours, dispute those debts in writing to make sure they are cleared up before you go shopping for a car or home.

Eighth, if you believe you are a victim of abusive debt collection practices, don’t hesitate to file a complaint with the federal agency, the Federal Trade Commission. Click here for information on How to File a Complaint Against a Debt Collector.

Of course, if you have any questions about your rights, or if you need help dealing with an abusive or stubborn debt collector, please do not hesitate to call me on our toll-free number (1-888-834-5297) for a free initial consultation.

In May, a new law was signed into effect that was designed to reduce some of the most unfair and abusive credit card practices.  That law, called the Credit Card Accountability, Responsibility and Disclosure Act, had several provisions that took effect in August 2009.  (Sometimes that law is referred to as the Credit Card Bill of Rights.)  Other provisions will take effect next year.  This article summarizes some of the changes resulting from this new law, as well as some loopholes that will undoubtedly be used by credit card companies.

The first change is that credit card companies must now give you 45 advance notice before they raise your interest rate.  The old law required only a 21 day notice.  However, there’s a catch: this applies only to fixed-interest-rate credit cards, and not to variable-rate credit cards.  This helps explain why some credit card companies have been trying to get their customers to shift to variable-rate cards.

The second major change is that the credit card companies must now mail your statement to you at least 21 days before the due date.  This gives 7 additional days to get your payment in on time.

Your interest rate cannot be increased retroactively unless your payments are late by at least 60 days.  Also, you can restore your earlier, lower interest rate if you then make payments on time for 6 months.

Fees cannot be greater than 25% of the credit limit on the card.  The earlier law allowed such charges to eat up half of the credit limit.  This provision is particularly helpful to those who have bad credit or subprime credit cards.

If there is more than one interest rate applied to purchases or advances under your credit card, the issuer must apply any payments exceeding the minimum payment first to those portions that have the highest interest rate.  This can reduce the amount you pay in interest.

Fees for penalties must now be reasonable and proportional to the provision of the agreement that was violated; such penalties can no longer be automatic without any reasonable basis for them.

The new law also allows you to “opt out” of any changes to the terms of your agreement, including any increases in the interest rates or fees.  If you refuse to accept the increases, however, you cannot use your credit card anymore, and you must pay the balance off within five years.

Unfortunately, even under the new law, the credit card companies are not required to give you any advance notice before lowering your credit limit or even closing your account altogether.  These actions can actually lower your credit rating, and you may not even know it until your card is rejected at a cashier when you are buying something.

All in all, this new credit card law is a significant improvement compared to the old law.  However, there are still far too many ways that the credit card companies can take advantage of you.

If you are sued on a credit card debt, we may be able to help you.  All too often, we get phone calls from people who acted too late or thought they could handle the situation themselves.  Some admit they were unprepared, unfamiliar with the legal terms or legal procedures, or became nervous when they stepped into the courtroom.  I offer free consultations and would be happy to discuss your situation with you.  Helping Florida Consumers is what this blog is all about.

In many cases where a debt collector has sued a Florida consumer on a credit card debt or other consumer debt, they will file a Motion for Summary Disposition (in Small Claims or County Court) or its equivalent in Circuit Court, a Motion for Summary Judgment.  This is a very important legal document, and you should never ignore it.

Although Florida residents have a constitutional right to a jury trial, that right is not absolute.  For example, if there are no facts in dispute, there is nothing for the jury to decide.  A Motion for Summary Disposition means that the debt collector is telling the court that there are no facts in dispute, and that they should within right away, without any trial.  Generally, they say that you have not formally disputed that the debt is valid and that you owe the money.  They then argue that the law allows them to get a judgment against you.

It is critically important that you respond appropriately to such a Motion.  If you do not respond formally to the Court, you can lose your lawsuit before you even have a chance to explain your side of the story.  Don’t let this happen to you.  When you are faced with this, an experienced credit card defense lawyer knowledgeable about court procedure and credit card debt / debt collection can help you protect your rights in court.  Contact me now by phone, email or fax.  Or just click here to contact us over the internet.

In some cases, the first time you know that you are being sued on an alleged credit card debt is when you receive a Summons and Complaint.  In small claims cases, the Summons may also be accompanied by a Notice to Appear for a Pretrial Conference.  This post explains what these terms mean for the people being sued for credit card debts.

The “Complaint” is the formal document that begins a lawsuit.  That is where the Plaintiff (the person or company that is suing) sets out their claim or claims against the Defendant.  The “Summons” is the formal legal document notifying you that you are being sued, and gives you instructions on how and when you must respond.

In Florida, you must file a formal response called an “Answer” or other responsive document unless you are being sued in small claims court.  In small claims court (the division of county court where the dispute is for $5000 or less), you do not need to file an Answer, but it is still often a good idea to do so.  That way, if you dispute the credit card debt, or if you are unsure whether you owe the amount being sued on, you can formally document your dispute.

If you receive a Summons or a Summons and Notice to Appear for Pretrial Conference, it is absolutely CRITICAL that you respond appropriately.  If you don’t show up, or if you don’t respond appropriately, you may lose the entire lawsuit before you can present your evidence.  There are also other important safeguards you may lose if you don’t respond by the deadline.  You should definitely speak to a credit card lawyer before those deadlines expire, so please call, email or fax us for a free consultation.  There is nothing so disappointing as a person who has a valid defense not being able to defend their case because the deadlines expired!