Know Your Rights

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Tough on Debt Collectors - Asset Acceptance

Debt collectors use many different tactics to convince people to make a payment to them. Some of these tactics are actually legal, some cross over the line.  Many debt collectors are sneaky and get you to start paying on debts that are old and re-start a new statute of limitations period, giving the collectors more time to file a lawsuit against you.  One such company, Asset Acceptance, is being sued by the Federal Trade Commission to stop such tactics and violating Federal law.   Awaiting the approval of a judge, the Federal Trade Commission announced a $2.5 million settlement.  

Allegations against Asset Acceptance include the following:
 · Pursuing debts that have expired under the statute of limitations.
 · Failing to tell debtors that they couldn't be sued to collect the money being pursued by the company.
 · Encouraging consumers to make partial payments for expired debts.  By making partial payments to expired debt, the debt is   re-aged.  This revives the creditors ability to file a lawsuit and seek a judgment for the debt where that ability had already been lost.

Consumers have rights under the Fair Debt Collection Practices Act.  Consumers cannot be threatened, harassed or misrepresented in regards to payment of a debt.  As a consumer, don't wait and protect your rights by becoming informed.   
 
The Process of Debt Collection:
 · Debt collectors buy defaulted credit cards and loans in bulk for a small percentage of their original value.   
 · Many times the debts are expired under the statute of limitations. 
 · The statute of limitations is the time frame that the consumer can be sued for the debt.  These vary by state and type of debt from 2-15 years.  
 · Many times these delinquent debts come with little information about the original debt. 
 · Sometimes debt collection company goes after the wrong people or for debts that have been paid.  
 
Protecting your Consumer Rights:
 o Check out our website for what you collectors can and can not do.
 o Learn about your rights under the Fair Debt Collection Practices Act from Larry P. Smith & Associates, LLC.
 o Keep a call log of the collection calls.
 o Ask for proof of the original debt.
 o Confirm it is your debt before making payments.
 
Protecting your rights as a consumer can be tough and confusing.  If you are overwhelmed, contact us today for a free and confidential case review.

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