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FEDERAL FAIR TRADE COMMISSION PUBLISHES LIST OF BANNED DEBT COLLECTORS

  • Jared Hartman, Esq.
  • Posted on February 4, 2015

 

The FTC has legal enforcement powers to pursue action against companies that violate the Federal Fair Debt Collection Practices Act (FDCPA) for engaging in conduct that amounts to harassment under the FDCPA. The FTC recently published a list on its website of many debt collectors against whom they have been successful obtaining federal court orders prohibiting them from engaging in further debt collection activities. Read the list here http://www.ftc.gov/enforcement/cases-proceedings/banned-debt-collectors.

Additionally, the FTC website above has a link to view other entities against whom it has pursued enforcement actions, but did not obtain an injunction to prohibit further collection activities.

If you or a loved one have been contacted by any of the people or entities named in that list, then you or the loved one may have been the subject of a scam and should discontinue any further communications with the “debt collector” immediately. You should also contact the FTC to report them, and also contact us to see what your rights may be in seeking recovery by way of private lawsuit.

The FDCPA is designed to protect consumers. There are over 40 ways the FDCPA can be violated. If you or a loved one are being contacted by a debt collector, be sure to keep all letters, regularly check your credit report for inaccuracies, and write a journal about every phone call. See our webpage discussing the FDCPA for more information. Do not hesitate to contact us for a free and confidential consultation to discuss your rights.

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OREGAN WOMAN AWARDED $18.6 MILLION JURY VERDICT AGAINST EQUIFAX FOR FAIR CREDIT REPORTING ACT VIOLATIONS.

  • Jared Hartman, Esq.
  • Posted on November 22, 2013

 

For two years an Oregon woman tried and tried and tried to ask Equifax to correct the mistakes on her credit report. She discovered in 2009 that information belonging to someone else with the same name was being mixed into her credit report (known as a “mixed credit report”), including the other woman’s birthdate, social security number, negative credit information, among other wrong information. She only discovered the inaccuracies when she was denied a line of credit. The unfortunate woman tried many times to have these mistakes corrected and to have her credit report cleaned up. All credit reporting agencies other than Equifax followed through with their responsibilities. Because Equifax repeatedly denied any wrongdoing and repeatedly failed to correct their mistakes, they were sued for violations that included 15 U.S.C. §§ 1681i(a)(1)(A) & (a)(5)(A) of the Fair Credit Reporting Act (FCRA).

These Sections of the FCRA require the credit reporting agency to conduct a reasonable investigation into a dispute lodged by a consumer within 30 days, and to either delete the information if they fail to conduct the dispute within 30 days, delete the information if they cannot verify its accuracy, or modify the information if they discover the correct information.

Failure to comply with these requirements could result in damages owed to the consumer for any actual damages sustained as compensation for any financial harm or physical or emotional injury arising out of the violation, or statutory damages of $100-$1,000 for every willful violation, and any punitive damages that the court may allow. Also, a successful lawsuit guarantees that the offender will pay your attorney’s fees and costs of litigation, which means you will not have to pay any money in connection with filing the lawsuit.

Because Equifax repeatedly ignored the woman’s efforts to correct her credit report and repeatedly denied any wrongdoing, the jury found them in violation of the FCRA and awarded her $180,000 in actual damages plus $18.4 Million in punitive damages!

Read the news reports at the links below:

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DOES YOUR CREDIT SCORE CONTAIN INACCURATE INFORMATION?

  • Jared Hartman, Esq.
  • Posted on November 16th, 2013

 

Debt collectors and creditors often furnish inaccurate information to credit reporting agencies. Even if the inaccuracy is something so simple as putting the wrong date of default, it may still have serious consequences when you apply for a new loan, line of credit, or even for certain professional licenses. Also, the date of default is what dictates how long the negative item will stay on your credit report, and if the date of default is being reported as more recently than what the default actually was, then the negative item will stay on your credit report for longer than it actually should.

DO NOT JUST IGNORE IT—ignoring the inaccuracies means they will be able to continue to mis-report the information, which may eventually hurt you in the future. Taking care of the inaccuracy now will help prevent future harm to you.

Both the Federal and California laws allow a consumer to sue the furnisher of information, and you may be entitled to receive any actual damages suffered from their inaccurate reporting, or up to $1,000.00 per violation under the Federal law or up to $5,000.00 per violation under the California laws, depending on what type of violation they have committed.

HOWEVER, it is not as easy as you might think to sue the furnisher of information under the Federal laws for inaccurate reporting. One of the ways the U.S. Legislature has tried to help the business industry from frivolous lawsuits is that they only permit a private lawsuit if the furnisher of the information fails to conduct a reasonable investigation into disputed information after being notified by the credit reporting agency that you are disputing the inaccurate information.

YOU LODGING THE DISPUTE WITH THE FURNISHER ONLY DOES NOT TRIGGER CIVIL LIABILITY UNDER THE FEDERAL LAWS. Only if the furnisher receives a notice of dispute from a credit reporting agency does their failure to conduct a reasonable investigation into the dispute trigger liability for a civil lawsuit. If you only send the dispute to the furnisher and you do not dispute the inaccurate reporting with the credit reporting agency, then you cannot sue the furnisher under Federal law. See 15 U.S.C. 1681s-2(b).

You are also not able to sue the furnisher under Federal laws simply for supplying the inaccurate information to the credit reporting agency. You can only sue for their failure to conduct a reasonable investigation, as explained above. However, 15 U.S.C. 1681s-2(c) and (d) permit State and Federal officials to enforce the furnisher’s obligation to supply accurate information, and you should report any such inaccuracies to the Federal Trade Commission, the State Attorney General, and also lodge a dispute with the credit reporting agency to begin the process for triggering a civil lawsuit.

On the other hand, California laws are more favorable to the consumer. There is no obligation at all for the consumer to lodge a dispute with the credit reporting agency or the furnisher in order to trigger liability in a civil lawsuit for furnishing inaccurate information! See California Civil Code 1785.25(a). However, California laws could entitle you to receive punitive damages of up to $5,000 per violation if their violation was committed willfully (if they either knew or should have known of the inaccuracy of the information).

Although there are some hoops to jump through, here is the bottom line if any inaccurate information is being reported on your credit report:

  1. File a complaint with State and Federal officials to enforce their authority upon the violator.
  2. Lodge a dispute with the credit reporting agencies in order to trigger the civil lawsuit process under the Federal laws. If they fail to amend or remove the inaccurate information, then you may have a lawsuit under the Federal laws for their failure to conduct a reasonable investigation after being notified of a dispute. THIS DISPUTE MUST BE LODGED WITH THE CREDIT REPORTING AGENCIES.
  3. Also lodge the dispute with the furnisher of the inaccurate information, because if they fail to amend or remove the inaccurate information then you may be entitled to punitive damages under the California laws for their willful violations.
  4. KEEP COPIES OF ALL CORRESPONDENCE AS PROOF, AND SEND LETTERS VIA CERTIFIED MAIL AS PROOF OF THEIR RECEIPT, AND TAKE DETAILED NOTES OF EVERY EVENT.
  5. Call us for a free and confidential consultation to discuss how we can assist you in asserting your rights!
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ARE CREDIT INQURIES LOWERING YOUR CREDIT SCORE?

  • Jared Hartman, Esq.
  • Posted on October 30th, 2013

 

There are two ways a credit inquiry can be conducted on a consumer’s credit reports: a hard inquiry and a soft inquiry. A soft inquiry merely obtains the consumer’s person ID information, such as name and address. A hard inquiry allows the requester to obtain information more in depth towards the consumer’s credit (such as who else is conducting inquiries, how much debt you have, when you have defaulted on past credit, etc.). A soft inquiry will not appear as an inquiry on your credit report and therefore will not impact your credit score. However a hard inquiry does appear on your credit report and too many of them in a short period of time can and will lower your credit score, because it looks as if you are applying for too many lines of credit contemporaneously. It is strictly within the decision of the entity conducting the inquiry as to whether they will conduct a hard or soft inquiry, but if the entity needs to determine and evaluate your creditworthiness then the inquiry will most likely be a hard inquiry.

Both the Federal and State Fair Credit Reporting laws require one conducting a credit inquiry to have a “permissible purpose” in conducting the inquiry, and both sets of laws establish what constitutes a permissible purpose. See, for example, Calif. Civil Code 1788.11 and 15 U.S.C. 1681b. The requesting entity does not need your permission to conduct the inquiry so long as they identify to the credit reporting agency that they have such a permissible purpose; yet most of them will ask for your approval just to cover themselves in case a dispute arises over their purpose for the inquiry. If the entity does not have such a permissible purpose, then they need your express permission to conduct the inquiry under both sets of laws. However, if the entity conducting the inquiry lies to the credit reporting agency about the true purpose of the inquiry (for instance, telling the credit reporting agency they have a permissible purpose but then using the information for a non-permissible purpose), then you can and should file a lawsuit for conducting the inquiry under “false pretenses”.

If the improper inquiry has caused you actual damages, such as being denied a job, line of credit, or purchase money home loan, then you can recover those damages as compensation. If you do not have such actual damages, then you can still recover statutory damages as specified in the law. Either way, attorneys’ fees and costs of litigation are guaranteed to be paid by the party found to have violated the law, which means there is NO COST TO YOU for filing such a lawsuit.

If you have any concerns over inquiries being conducted on your credit reports, then you should contact us immediately to discuss the circumstances in detail during a free and confidential consultation.