Transcript CONSUMER CREDIT - FDCPA Debt Defense

CONSUMER
CREDIT
Basic Consumer Credit Laws
Laws Protecting Against Discrimination
Laws Protecting Your Credit Record
Laws Protecting Against Billing Errors
Laws Protecting Against Unfair Debt Collection
Credit Discrimination
Prohibited Areas of Discrimination
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Race;
Color;
Religion;
National Origin;
Sex;
Marital Status;
Age;
Public Assistance
Income;
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Exercise of Rights Under
the Consumer Credit
Protection Act
Fair Credit Reporting Act
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PRIG Study found
80% of all Credit Reports have errors
 19% of those errors were so bad to cause a denial of
credit.
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Fair Credit Reporting
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Consumers are entitled to one free annual
report.
Fair Credit Reporting Act
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Major Credit Reporting Agencies
Equifax
 Experian
 Transunion
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Fair Credit Reporting Act
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Only inaccurate and out of date information
may be removed.
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Stale information must be removed
Bankruptcies over 10 years old
 Other Negative Credit Information over 7 years old.
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Fair Credit Reporting Act
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Removing Information
Letter to Credit Reporting Agency
Send Certified Mail Return Receipt Requested
 Singed by Consumer
 Note it must be Received by Credit Reporting
Agency – Letter to Credit Furnisher (Creditor) may
not take it off Credit Report. Failure to notify Credit
Reporting Agency may protect them from later suit.
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Fair Credit Reporting Act
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Credit Reporting Agency has 40 days to verify
information and if information is not verified it
must be removed.
Fair Credit Reporting Act
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Unauthorized Disclosure of Your Credit
Information.
TEXAS EXEMPT PROPERTY
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Unlimited Homestead.
Rural Homestead up to 200 acres
 Urban Homestead up to 10 Acres.
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Personal Property
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Business Homestead
Up to $60,000 in certain property.
IRA’s
Fair Debt Collection
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Federal Fair Debt Collection Act
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Applies only to Third Party Debt Collectors including attorneys
who regularly collect debts.
Texas Debt Collection Act
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Applies to Creditors & Third Party Collectors.
Also a violation of Texas Deceptive Trade Practices Act
Common Law Unfair Debt Collection
Fair Debt Collection
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All communication must advise debtor that they
are collecting a debt and any information
obtained will be used for that purpose.
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First Letter must advise debtor that debtor has
30 days to request that collector verify the debt.
Fair Debt Collection
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Must stop all communication if debtor request
that the debt collector stop communicating with
the debtor– may only contact one other time to
advise what action will be taken.
May only communicate with attorney if Debtor
is represented by an attorney.
Fair Debt Collection
Communication with Third Parties
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May not disclose purpose is to collect a debt.
May not use written communication that
discloses they are collecting a debt.
May not contact debtor at employment if debtor
advises it against employers policy.
Fair Debt Collection
Abuse Examples
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Calling before 8:00 a.m. and after 9:00 p.m.
Abusive Language
Threatening action that cannot be legally taken.
Repeated telephone calls to annoy.
In Texas cannot take homestead, cars, or
threaten garnishment except for certain debts
owing to government.
Collection Lawsuits
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1. If I think I may owe the Debt should I even
bother to answer the suit?
2. Should I represent myself?
3. If I think I owe the debt do I have a
Defense?
4. Can I recover my fees and cost?
5. Major corrupt practices in the debt industry.
The Financial Crisis
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Watch the short video on your computer
http://vimeo.com/3261363
Broker
Lender
Trust
Rate
Swaps
Market
New Consumer Problems
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1. Problems with who owns the debt.
2. Higher Credit Card Fees.
3. Credit Reporting Problems.
4. More difficult to obtain new credit.
5. Devaluation of assets.
6. Loss of Income.
7. Booming Tax Liability.
Is it over?
Jim McMillen
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James T. McMillen
14522 Red Mulberry Lane
Houston, Texas 77044
Tel: 281-458-9100
Fax: 281-817-5505
Email: [email protected]
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www.consumerlawoffice.com
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