FTC Fines Florida Debt Collector, Then Turns The Other Way
A collection agency operating in Florida and Georgia has been ordered by the Federal Trade Commission to cease all collection activities that run afoul of the Fair Debt Collection Practices Act (FDCPA) and pay a judgment of $3.4 million to settle all FTC charges.
Rawlins & Rivera, Inc. and Ryan & Reed, Inc., both of Florida and Georgia, have been ordered by the Federal Trade Commission to cease all collection activities that run afoul of the Fair Debt Collection Practices Act (FDCPA) and pay a judgment of $3.4 million. According to the government, the firms “used misleading dunning letters and abusive telephone calls to falsely threaten that consumers would be sued, their property seized, and their wages garnished if they did not pay the money that the defendants said they owed.” But the larger violations involved collectors representing themselves as attorneys.
In February 2007 the FTC said that the company’s agents were claiming to be attorneys and calling debtors and threatening legal action after “case reviews.” A Florida lawyer whose letterhead was used by the business was also named in the suit.
However, the big fine is full of sound and fury . . . signifying nothing.
The FTC reported it suspended much of the $3.4 million judgment because the firm is unable to pay it. Rawlins may continue to operate as a collection agency.
What would be interesting, however, would be to ask the owners of the collection agency whether they would ever suspend their harassment if a debtor said that he or she could not pay. Somehow, I doubt that.
Double standards abound, apparently.
Review Home Closing Documents Carefully To Avoid Problems Later
A home closing probably represents one of the most expensive transactions of your life - a set of keys that can cost hundreds of thousands of dollars. In New York City, where apartments typically climb into the million dollar range, those keys are expensive indeed.
So why is it that most people don’t take the time to read and understand the documents they sign at the closing table? Simple - there are too many documents and not enough time. The table is filled with people, the bank representation just wants to get out the door to another closing, and there are too many documents (I know I said it already, but the pile is daunting).
Over at Caveat Emptor, my colleague Sam Glover recommends that you demand to see the closing documents a few weeks in advance of the closing. I’ve been an attorney for awhile and have done my fair share of real estate closings, but have never thought to ask for documents in advance - even when it was my own home. Thanks to Sam, I will now recommend this course of action to every one of my clients and friends who are buying real estate.
Putting A Security Freeze On Your Credit Reports
A Security Freeze prevents someone from obtaining credit in your name, thereby preventing identity theft. There is no charge for a New York State resident to place a Security Freeze on their credit report if you are the victim of Identity Theft or you are making this request for the first time. For second or subsequent requests for a Security Freeze, you may be charged up to $5 for that service.
A Security Freeze is placed on your credit file, and prevents most lenders and others from gaining access to your credit report for review prior to granting a new line of credit. If there is a Security Freeze on your credit file, the lender won’t be able to get a copy of your credit history and, as a result, most lenders will refuse to open a new credit account.
But before you leap into freezing your credit reports, remember that it’s not for everyone. If you’ve got a security freeze in place you won’t be able to borrow money or get a new credit card until you temporarily lift or permanently remove it. The same is true of new insurance coverage and background checks that might be required by a new employer. So if you’re going to be looking for a new job, new insurance, or a loan (including a mortgage or car loan) in the near future, hold off on the security freeze for now.
But if you are going to place a security freeze on your account, you must do so in writing to each of the three major credit reporting agencies. Your letters must contain the personal information required by each credit reporting agency. This information is needed so the credit reporting agencies can verify your identify and process your request. You should send your letters by certified mail to ensure that you have proof of receipt.
The three credit reporting agencies must place a Security Freeze on your credit file within five business days of receiving your request. Within 10 days of placing the Security Freeze on your credit files, each credit bureau must mail you a letter confirming that a Security Freeze is now in place. These letters will also contain a password or a Personal Identification Number (”PIN”). When you want to temporarily lift or permanently remove your Security Freeze, you can use this password or PIN to identify yourself when contacting the credit reporting agencies. Each credit reporting agency will give you a different password or identification number.
After the first request to place a security freeze on your credit file, the credit reporting agencies may charge up to $5 fee to place, temporarily lift or to remove a Security Freeze. There is also a $5 fee for the issuance of a replacement PIN or password. If you are a victim of Identity Theft and provide a valid copy of a police report or a Federal Trade Commission ID Theft affidavit, alleging the crime of identity theft, there are no fees for any of these services.
Your requests for a security freeze may be sent to:
TransUnion Fraud Victim Assistance Department
P.O. Box 6790
Fullerton, CA 92834
Equifax Security Freeze
P.O. Box 105788
Atlanta, Georgia 30348
Experian Security Freeze
P.O. Box 9554
Allen, TX 75013
New York City Civil Court Adds Safeguards For Consumers Sued for Debts
The New York Civil Court is moving to strengthen protections for consumers sued for failing to pay their credit card bills. The Civil Court is set to require specific licensing information about debt buyers and debt collectors, as well as complete affidavits detailing a consumer’s debt before default judgments will be approved by clerks. Judge Fisher is also asking the Administrative Board of the Courts to require that additional notification be given to consumers to avoid defaults.
