A coming tsunami of collection calls, letters and lawsuits

For the better part of a year Courts have been closed or in limited operation as Covid-19 forced operations to pause.  This has huge implications for the debt collection industry.  Pro-Publica recently published a story showing how despite court closures, predatory debt collectors have had a record year seizing on the chance to pressure people into handing over stimulus money to satisfy old debts.  If you get contacted by one of these companies, it is best to consult a consumer rights lawyer before you agree to speak with, turn over money and settle.  In some cases you may not owe the debt, it may be too old for the collector to sue on, or there may be some other defect in the way they contact you that makes the collection illegal under federal or state law.

As Courts reopen, we are likely to see a rush of debt-collection lawsuits.  After all, debt collection lawsuits make up more than 40% of all court cases in most states.  There is a big backlog and debt collectors (and their lawyers) often operate on high volume with bad records.  If you find yourself facing a collection case, do not panic, do not ignore the suit and do not rush to settle.  Take a moment and seek the advice of an expert who can help you navigate the situation.  Consumer lawyers like Northeast Law Group, LLC often can represent our clients for no charge because we find violations of law that require the debt collector to pay our legal fees on behalf of the client.

 

If you are unsure of your rights and want to learn more, please contact us.  Our initial consultation is always free.

If you are facing debt collection, bankruptcy may not be the answer.

            Debt collection is a large business in America and collection companies use dirty tricks to collect more than $40 billion most years.  Too often, people are led to believe that the only or best way to stop debt collection calls and letters is to file bankruptcy.  For many people, it is a drastic move with consequences they regret for years.  Northeast Law Group, LLC does not practice bankruptcy law, but we have a powerful tool chest to stop debt collectors.

            Using a federal law known as the Fair Debt Collection Practices Act (FDCPA) we can help stop debt collectors from contacting you.  Debt collectors are often nasty, making unlawful threats, adding illegal fees and seeking to collect money not owed.

Since 2010, attorney Adam Deutsch has successfully brought lawsuits against law firms and businesses acting as debt collectors.  We have recovered hundreds of thousands of dollars from collectors and been able to see debts forgiven on many occasions.  Relying on a key provision of the FDCPA we have achieved this success while making the collector pay our legal fees on behalf of the client.

Experience from the Battlefield- Mortgage Loan Problems

            In 2019, Northeast Law Group, LLC represented a homeowner who was victimized by their loan servicer.  For years, the borrower paid their property taxes and insurance directly without going through an escrow account handled by the mortgage company.  One month, out of nowhere, the client received a loan statement where the payment demanded jumped by several hundred dollars because suddenly the servicer wanted to start collecting money from the client to then pay for insurance and property taxes.  The problems were that 1) the mortgage contract didn’t allow for the sudden change and 2) by changing the amount owed by the client without advance notice, it disrupted my client’s finances and cash flow.

            Northeast Law Group, LLC successfully fought back against the loan servicer using the Real Estate Settlement Procedures Act.  First, we assisted the client to issue a dispute letter under the statute.  After the bank failed to correct the billing errors in the required amount of time, we filed a lawsuit.  Within a few months, the bank realized what they did was wrong and agreed to settle the case by paying our client, fixing the billing errors, and paying our legal fee and court costs.

            Being able to represent individuals against large financial companies is a thrilling job.  It is even better when we can do this without the client having to pay for the legal representation they deserve.  If this story is similar to your own experience, contact us, and see if we can help you get the results you deserve.

Handling problems with mortgage servicing companies

            For most people, a home is the largest purchase they will ever make and it takes most families in the United States of America thirty years to pay off the loan.  During that time the loan servicer, or company that collects payments from you on behalf of the loan holder, is likely to happen several times.  Over the years, a lot of people have contacted us with problems following a service transfer.  Common problems include:

  • A jump in payment

  • False claims that payments are missing or the loan is delinquent

  • New fees

  • A change in loan terms or the failure to honor a modification from the prior servicer

             There is a way to fix these problems, make the servicer pay you damages for the error, and make the servicer pay all costs associated with you hiring a lawyer and filing a lawsuit to enforce your rights.  Over the course of ten years, attorney Adam Deutsch has litigated countless cases using the Real Estate Settlement Procedures Act, a federal law, to force loan servicing companies to fix errors and get homeowners the compensation they deserve. 

            There are tutorials online for people to send their own Qualified Written Request letters (as named by the statute) to try and fix the errors.  You don’t need to go down the difficult road of fighting a large corporation on your own.  Northeast Law Group, LLC can help guide you, and often we can do it for little or no cost to you, the consumer.  If you have been the victim of problems following a change of loan servicing, contact us.  The quicker you take action, the easier the problem is to resolve and the less stress you will go through.

Covid-19 Prompts New Debt Collection Restrictions in Massachusetts

On April 1 the Attorney General of Massachusetts put new restrictions making illegal for debt collectors to start or threaten to start new collection lawsuits, to make certain demands for payment, and from contacting your place of employment. The new restrictions are expected to be in place through June 25 and are part of the Massachusetts Consumer Protection Act (93A).

If you are contacted by a debt collector during this time, you can likely sue to recover damages and may be able to wipe out the debt. All successful claims under the statute require the debt collector to pay your attorney fees and court costs. If you live in Massachusetts and are contacted by a debt collector between April 1 and June 25, 2020 contact Northeast Law Group, LLC for a free consultation to have your case reviewed and see if you are entitled to relief.

E22: Consumer Rights Talk: Guest Mike Landis

Mike Landis is the Litigation Director of U.S. Public Interest Research Group (“PIRG”). The job requires Mike to take a macro view of problems consumers face throughout the country and provides a platform to make impact changes through litigation. Although he is only in his mid 30’s, Mike has a lifetime worth of diverse experiences in his background that make him particularly well suited for the job. The resume includes two years with the Peace Corps, state and federal judicial clerkships, and two and a half years at a large law firm in private practice.

We discuss Mike’s background, how his experiences have made him a better lawyer, and ways to expand the reach of PIRG through partnerships with non-profit and private law firms.

E21 Consumer Rights Talk: Guest Jeremy Golden

Jeremy Golden left the cold of Minnesota to study law in the sunshine of California. Originally the plan was to practice intellectual property law, but a job opportunity after law school lead Jeremy to discover the world of consumer law. Fifteen years later, he has a successful law firm outside of San Diego focused on debt defense, Fair Debt Collection Practices Act, and Fair Credit Reporting Act cases. Jeremy and I discuss small firm management, identity theft cases and the growing need for lawyers to take on student loan cases.

E20: Consumer Rights Talk: Guest Michael Fuller

Michael Fuller is no ordinary consumer lawyer. He goes by the name Underdog Lawyer and has earned that persona based on his upbringing. Overcoming hardship early in life, he turned his trajectory around, obtained a law degree and dedicated his career to representing underdogs. Of all the attorneys to appear on the podcast, Michael probably has the strongest media persona. He is not afraid to speak on camera and to use media to gain leverage. We discuss his use of media, how to pick cases and more.

If you enjoy the show, please find us on iTunes, subscribe and leave a review.

E19: Consumer Rights Talk: Guest Josh Cohen

In early March 2019 I interviewed The Student Loan Lawyer, Josh Cohen following the National Consumer Law Center’s annual Fair Debt Collection Practices Act conference in Las Vegas, Nevada. I left the conversation impressed and inspired. Josh has used technology to build a business where he not only counsels borrowers dealing with student debt questions, he also trains attorneys and maintains a litigation practice. The student loan crises is growing rapidly and Josh is a leader in creating practical solutions.

E18: Consumer Rights Talk: Guest Ron Burdge

Ron Burdge is a trailblazer.  Ron started his legal career doing trial work at a small Ohio firm.  Early in his career the partners of his law firm handed Ron an auto fraud case.  The chance circumstance gave rise to a career that saw the rise of lemon laws and consumer rights in the auto industry.  A key to Ron’s success is his love of story telling and a gift for connecting with juries.

In addition to excelling at litigation, Ron has a gift for marketing. As an early adopter of the internet, Ron acquired key domain names including www.ohiolemonlaw.com. He began posting videos on the internet early on and it helped to drive clients and business to his firm.

Aside from influencing the growth of auto fraud litigation, Ron is the founder of the United States Consumer Law Attorney Fee Survey. The survey is hosted at www.attorneyfeestudy.com and gives a detailed assessment of hourly rates billed by attorneys broken down by years of practice, size of firm and geography. The survey is a key tool for consumer rights attorneys that work with fee shifting statutes. Cited in Federal Courts across the country, the survey has been critical to lawyers extending access to justice in an affordable way.

Ron can be reached on twitter @ronburdge

E17: Consumer Rights Talk: Guest Carla Sanchez-Adams

In less than ten years of practice as an attorney, Carla Sanchez-Adams has earned a well-deserved reputation as an attorney focused on creating change in communities impacted by poverty. Carla’s role as a lawyer often walks the line from advocate to social worker. We discuss Carla’s background, the challenges of public service law, and how consumer rights law differs when there are issues of domestic abuse and immigration concerns added to the picture.

E16 Consumer Rights Talk: Guest Ira Rheingold

Consumer Rights Talk host Adam Deutsch interviews Ira Rheingold, the Executive Director of the National Association of Consumer Advocates. Ira began representing consumers in the greater Washington D.C. area in the early 1980’s and went on to influence an overhaul of lending practices and foreclosure law in Chicago.  Thereafter, he became the Executive Director of NACA, the National Association of Consumer Advocates.  NACA is a trade organization of more than 1,500 attorneys committed to the representation of consumers victimized by fraudulent, abusive and predatory business practices.  In our discussion, Ira talks about how his time as a litigator influenced the leadership he now strives to provide, we hear about ongoing projects and goals for NACA and discuss a vision of consumer rights for the future.

E15 Consumer Rights Talk Relaunches in March 2019

In March 2019 the Consumer Rights Talk is relaunching with a new format. Host Adam Deutsch will interview a different consumer rights attorney in each episode. The goal is to publish a new interview twice a month. Each interview will offer valuable insight and practice tips for other consumer attorneys, and will also shed light on rights consumer may not know they have and what they can do to protect themselves. We’ll be talking debt collection, credit repair, auto fraud and anything else that fits under the umbrella of consumer rights.

Please follow us on iTunes and leave a review so more people can find the show.

E 13: A Common Credit Reporting Problem: The Mixed File

The Federal Government estimates that 25% of all credit reports contain an error. These errors can negatively impact your ability to buy a home, car, finance college, or obtain employment. The errors can also cause the cost of borrowing money to go up. A common error is the mixed file, where someone else’s information appears on your credit file. In this episode of the Consumer Rights Talk, Adam Deutsch discusses three common mixed file causes, how to fix the problem and how to proactively spot such problems.

 

Please subscribe to the podcast through iTunes to be notified when an episode is published.

E12: Student Loan Crisis

Sadly, I'm predicting that 2017 is the year the long predicted student loan crisis becomes real.  The facts do not look good.  Defaults are up 14% since the end of 2015 and it turns out half of college grads made less money in 2016 than graduates made in 2000.  Of course, despite stagnant and declining wages, the cost of tuition keeps going up.  This is how a crises emerges.  This week Adam Deutsch discusses how we got here and what can be done.  Listen for more information.

Consumer Rights Talk E11: 5 Tips for Handling Debt Collectors

Recently my 93 year old Grandmother began receiving demand letters from a debt collection company that was hired by AT&T to collect money.  The problem, no money was owed!  Although I've had clients in this position before, none were family and it absolutely made the situation more personal.  This got me thinking about five basic tips that anyone can follow when being threatened by debt collectors.

Consumer Rights Talk E10: 14 Day Rule for Considering Loss Mitigation Offers

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Mortgage servicing companies are obligated to provide homeowners with a minimum of 14 days to consider all loss mitigation offers, including loan modifications.  This rule is set forth in the Real Estate Settlement Procedures Act 12 C.F.R. 1024.41.  If you are not provided 14 days to consider the offer, the servicing company is violating federal law.  Listen to learn more information about the risks and what to do.

Consumer Rights Talk E9: Common Frauds in Auto Lending

According to the latest report by the Federal Bank of New York analyzing the fourth quarter of 2016, consumer borrowing is trending up.  New auto borrowing increased at a faster pace than credit card and mortgage borrowing.  The money spigot is opening so fast that subprime lending is also growing rapidly.  

In America, we need and love our cars, but we don't always love the process of buying them.  Listen to this episode of the Consumer Rights Talk to learn more about common frauds to look out for and what you can do about it.

Consumer Rights Talk E8: CFPB update

This week's episode of the Consumer Rights Talk addresses the Feb 8 report from the Consumer Financial Protection Bureau which highlights trends in consumer complaints and gives a closer look at mortgage related grievances.  Adam discusses three of the most common complaints filed with the CFPB and provides some guidance on how to deal with these issues as a consumer.  The full CFPB report can be found here:  Monthly Complaint Report