The Telephone Consumer Protection Act (TCPA) prohibits debt collectors from calling a cell phone number using an automatic telephone dialing system without the debtor’s prior express consent. Automatic telephone dialing systems include “predictive dialers” and any equipment that has the capacity to store or produce telephone numbers using a random or sequential number generator and to dial the numbers automatically. You can often recognize calls made with these systems because of the brief delay between when the call is answeredRead more

Although the ability to discharge student loans in bankruptcy is limited, it’s not completely impossible. So a debt collector who told a debtor that her student loan debts couldn’t be discharged in bankruptcy violated the federal Fair Debt Collection Practices Act, according to 2nd Circuit Court of Appeals. Since the ability to discharge student loans is very dependent on the facts of each case, the debt collector’s blanket statement to the debtor was misleading and deceptive. An unsophisticated debtor mightRead more

The National Association of Consumer Advocates, of which I am a member, suggests the following tips when you’re financing the purchase of a new vehicle. Keep your current vehicle until the amount you owe on the loan is less than the resale value of the vehicle. It’s best to wait until the entire loan has been paid off before trading it in. Before you shop for a car, get prequalified for a loan at a credit union or bank. TakeRead more

A new report (The Other Foreclosure Crisis) by the National Consumer Law Center (NCLC) sheds light on the growing risk to homeowners of delinquent property taxes. According to the report, annual property tax delinquencies now reach almost $15 billion nationally and the number of homeowners at risk of losing their homes to tax sales is growing. The report cites studies showing one in four households have an underwater mortgage and nearly 40% of families have recently experienced unemployment, foreclosure, mortgageRead more

Rules issued by the Federal Reserve Board place several limitations on the ability of credit card companies to charge fees and issue credit cards. These restrictions, which went into affect two years ago, impose more fairness on credit card billing. A summary of some of these limitations is following: Interest rates cannot generally increase in the first year after a credit card account is opened and increases to the interest rate on new transactions after the first year can onlyRead more

Credit and debt collection scams are becoming more and more sophisticated. It’s hard to tell the difference between legitimate debt collection efforts and scammers waiting to take your money. The Federal Trade Commission offers these signs of a scam: The caller claims to be with a government agency or law enforcement. Law enforcement never gets involved in private debt collection and the circumstances under which they might be involved after a judgment has been entered are rare. Don’t make paymentRead more

Complaints about debt collectors are on the rise throughout the country. It’s not uncommon for a consumer to feel they’ve been harassed by creditors and debt collectors. There are some basic rights that all consumers have when dealing with a debt collector. Here are some of these basic rights: A debt collector can’t call you at inconvenient times or places unless you agree to the calls. They also can’t contact you at work if you’ve told them either orally orRead more

The Federal Trade Commission (FTC), the government agency charged with protecting consumers against fraud, lists some important ways to avoid being a victim of fraud. Con artists often insist that people wire money because it’s nearly impossible to get the money back or trace where it goes. Don’t wire money to strangers or to anyone who requires that payment be made through a wire transfer. Don’t fall for sales pitches that sound too good to be true, like “97% successRead more