Latest news with #FairDebtCollectionPracticesAct
Yahoo
26-05-2025
- Business
- Yahoo
‘Beyond the pale': Atlanta ‘phantom debt collector' pressured people into paying him for debts they didn't owe
Having debt is never fun. And when a representative from a lender calls you asking for the amount you owe, your nerves may get the best of you. But what if you're being harassed? Worse yet, for a debt you don't really owe? Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Kenneth Redon III, a former debt collector who owned Global Circulation, Inc. (GCI), has been barred for life from the debt collection business after harassing a number of individuals to pay debts that didn't exist, according to a Federal Trade Commission (FTC) release. But this isn't a new scam. Back in 2023, Sherrel Dunn was a victim of the same scheme. 'You just feel violated,' she told WSB-TV. 'You feel helpless.' According to the FTC release, Redon 'threatened consumers with jail time, lawsuits, and wage garnishments to pressure them into paying debt they didn't actually owe.' WSB-TV spoke to FTC Senior Attorney Gregory Ashe about the tactics Redon used. In addition to assuming a number of false names, he also called his victims multiple times a week, sometimes calling several times a day. Ashe also said 'in many instances [Redon] had some forms of the consumer's personal information. And so they would say, 'is this not the last four digits of your Social Security number?'' Redon's company allegedly claimed the business was affiliated with certain lenders to further trick borrowers into paying their phantom debts. The FTC's release also states it filed a temporary restraining order against GCI and said Redon violated parts of the Fair Debt Collection Practices Act (FDCPA) and the Gramm-Leach-Bliley Act. Under the FTC's proposed order, GCI and Redon also have a monetary judgment of $9,684,338 imposed, but this will be suspended once any remaining assets are turned over. However, if Redon and his company are found to have misled or lied about their business finances, then the judgment remains in effect. 'Using a playbook of intimidation and threats of jail time to coerce consumers into paying debts that they don't owe is beyond the pale,' said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection in the same press release. 'The FTC will not hesitate to act against phantom debt collectors to shut down their operations.' Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs The Consumer Financial Protection Bureau says the Fair Debt Collection Practices Act prevents debt collection companies from contacting you during certain hours. They are forbidden from abusing, harassing or making misleading statements to individuals who owe debts. As an example, a debt collector is not allowed to call or contact you repeatedly, especially with the intention of threatening or annoying you. Debt collectors are required to identify themselves and can't call before 8 a.m. or after 9 p.m. If you're on the phone with a debt collector or have received a letter, you have a right to know how much you supposedly owe and what the debt is for. You can also dispute the debt or verify whether the debt is actually yours. Even if the debt is legitimate, you still have a right to take some space and ask the debt collector to stop contacting you. That doesn't mean you don't owe the debt, though, they'll just take another legal approach. A major red flag is if a debt collector refuses to tell you the name of the lender you allegedly owe, or if the collector is vague about their own identity or the amount owed. Get as much information as you can in writing to ensure the claim is real. If someone calls you and refuses to provide written documentation, then they're most likely a scammer. Remember, you have the right to ask the debt collector for information about the original lender, assuming the debt was transferred to another company. If a person calls you saying that they are a collector and tries to threaten you or to confirm sensitive information (like your Social Security number), hang up and contact the alleged debt collection company yourself to see if it's legitimate. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Straits Times
16-05-2025
- Business
- Straits Times
South Korean loan shark who allegedly drove single mom to suicide to face jail term
South Korean loan shark who allegedly drove single mom to suicide to face jail term SEOUL - A private lender whose excessively harassing debt collection allegedly drove a single mother in South Korea to suicide is standing trial, with prosecutors seeking a seven-year prison sentence. At a hearing held on May 14 at the Seoul Northern District Court, prosecutors accused the defendant, identified by the surname Kim, of violating the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act, and other related statutes. Kim is accused of lending 17.6 million won (S$16,300) to six individuals facing financial difficulties between July and November 2024 . The loans carried annual interest rates as high as 5,124 per cent - over 250 times the legally permitted maximum of 20 per cent. Authorities confirmed that Kim had not registered as a licensed credit business operator. During collection efforts, Kim reportedly sent threatening messages not only to the borrowers but also to their family members and acquaintances. One of the victims, a woman in her 30s raising a young daughter in kindergarten as a single mother, died by suicide in September 2024. Prosecutors alleged that the loan shark's harassment played a part in her death. '(The defendant) sent threatening messages to the debtor and caused her to commit suicide,' prosecutors stated during the hearing, noting that Kim had even sent images of weapons to acquaintances of the victims. The sentencing hearing is scheduled for June 11. THE KOREA HERALD/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
15-05-2025
- Business
- The Star
Loan shark in South Korea who allegedly drove single mum to suicide to face jail term
SEOUL: A private lender whose excessively harassing debt collection allegedly drove a single mother to suicide is standing trial, with prosecutors seeking a seven-year prison sentence. At a hearing held Wednesday (May 14) at the Seoul Northern District Court, prosecutors accused the defendant, identified by the surname Kim, of violating the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act, and other related statutes. Kim is accused of lending 17.6 million won (approximately US$12,600) to six individuals facing financial difficulties between July and November of last year. The loans carried annual interest rates as high as 5,124 percent — over 250 times the legally permitted maximum of 20 percent. Authorities confirmed that Kim had not registered as a licensed credit business operator. During collection efforts, Kim reportedly sent threatening messages not only to the borrowers but also to their family members and acquaintances. One of the victims, a woman in her 30s raising a young daughter in kindergarten as a single mother, died by suicide in September 2024. Prosecutors alleged that the loan shark's harassment played a part in her death. "(The defendant) sent threatening messages to the debtor and caused her to commit suicide," prosecutors stated during the hearing, noting that Kim had even sent images of weapons to acquaintances of the victims. The sentencing hearing is scheduled for June 11. - The Korean Herald/ANN
Korea Herald
15-05-2025
- Korea Herald
Loan shark who allegedly drove single mom to suicide to face jail term
A private lender whose excessively harassing debt collection allegedly drove a single mother to suicide is standing trial, with prosecutors seeking a seven-year prison sentence. At a hearing held Wednesday at the Seoul Northern District Court, prosecutors accused the defendant, identified by the surname Kim, of violating the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act, and other related statutes. Kim is accused of lending 17.6 million won (approximately $12,600) to six individuals facing financial difficulties between July and November of last year. The loans carried annual interest rates as high as 5,124 percent — over 250 times the legally permitted maximum of 20 percent. Authorities confirmed that Kim had not registered as a licensed credit business operator. During collection efforts, Kim reportedly sent threatening messages not only to the borrowers but also to their family members and acquaintances. One of the victims, a woman in her 30s raising a young daughter in kindergarten as a single mother, died by suicide in September 2024. Prosecutors alleged that the loan shark's harassment played a part in her death. "(The defendant) sent threatening messages to the debtor and caused her to commit suicide," prosecutors stated during the hearing, noting that Kim had even sent images of weapons to acquaintances of the victims. The sentencing hearing is scheduled for June 11.
Yahoo
02-05-2025
- Business
- Yahoo
What to do when you get sued for credit card debt
The first thing you should do if you find that you're getting sued for credit card debt is to verify that the debt is actually yours. Once you're sure that it's your debt and you're not dealing with a case of mistaken identity — or worse, identity theft — reach out to an attorney that specializes in debt collections cases. You can then look into ways to settle your debt with your creditor or come up with a debt repayment plan, which a certified credit counselor can help you craft. Many people have trouble paying their credit card debts — but those unpaid bills can do more than just bury you in debt. They can also lead to lawsuits. An occasional missed credit card payment might lower your credit score or raise your interest rates, but after four or five months of missed credit card payments, your credit card issuer might turn your account over to a debt collector. If you continue to ignore your debts instead of settling them, the debt collector might sue you. Can debt collectors sue you and take you to court? Absolutely. How often do debt collectors take you to court? Generally, debt collectors don't issue a court summons unless they've already made other attempts to collect on the debt. Suing someone over an old debt is the last step in the debt delinquency timeline, not the first one. Here's the good news — you can't go to jail for credit card debt, and if a debt collector implies that you might end up in jail, they are breaking the law as established by the Fair Debt Collection Practices Act. The bad news is that receiving a court summons for credit card debt can be stressful, time-consuming and frustrating. Let's take a look at what you should do when you are sued for credit card debt, including how to handle the court summons and settle credit card debt before going to court. A court summons for a lawsuit notifies you when you are being sued — in this case, for credit card debt. The nature of a debt collection lawsuit will vary depending on the state in which you reside. However, once an attorney files a complaint in state civil court, you'll receive a summons that will include the following: The plaintiff who is suing you and any co-defendants (such as a joint card holder) The total amount of money the plaintiff wishes to collect The date of the hearing Instructions on how to file a formal response Getting a court summons for credit card debt can be nerve-wracking, but stay calm. Knowing how to deal with debt collectors can help you manage your anxiety and might even help you beat your debt collector in court. Here's how to respond when you are sued for credit card debt: When you get a court summons for credit card debt, pay attention to it — and make a plan of action. In many cases, you'll have 20 to 30 days to respond to your summons, so read it carefully to learn exactly how much time you have to develop your plan. You might be tempted to ignore your court summons, either because you don't think the debt collectors have the right person or because you're trying to get out of debt without paying, but that's never a good idea. If you ignore your summons, the court is likely to rule in the debt collector's favor and your wages could be garnished until you pay back the amount of money that the court rules you owe. If you are sued for credit card debt, your first step is to verify that the debt is actually yours. The Fair Debt Collection Practices Act requires debt collectors to provide a validation letter listing specific details about the debt, including the current creditor and the amount of debt owed. This letter must arrive no later than five days after the initial communication on the debt. If you do not believe the debt is yours — or if you don't know whether the debt is yours — you have the right to request additional information. Write a debt verification letter asking your debt collector to confirm you owe this debt. You could request the name of the original creditor associated with the debt, for example, or ask the debt collector to confirm that the statute of limitations on the debt has not expired. What to do if it's not your credit card debt By the time an unpaid debt turns into a court summons, it has already passed from the initial creditor to at least one debt collection agency. Sometimes, your debt has been handled by multiple debt collection agencies, each one selling or passing your debt along until one of the agencies decides to take you to court. This means that there are a lot of opportunities for mistakes. The debt could actually belong to someone with a similar name, or someone who previously lived at your address — or the debt could be the result of identity theft. In these cases, you might be able to use your debt verification letter to prove that the debt is not yours. If that doesn't work, you might need to fight the debt in court. If you have good faith that the debt is yours and that the statute of limitations has not expired, consider settling your debt instead of going to court. Going to court for credit card debt can be time-consuming and expensive, and many debt collectors are more than happy to negotiate a debt settlement plan instead. Whether you plan to pay off the debt or fight it, you're going to want to contact an attorney. A good lawyer can help you negotiate a fair debt settlement plan with your debt collectors or talk to you about how to beat a debt collector in court. Many attorneys offer free consultations, which can be helpful during times of financial strain. However, it's unlikely that actually hiring an attorney would be free, so be sure to factor that in when you reach out to them. Those who have gotten their lawsuits dismissed successfully typically start by responding to the court summons and verifying the debt, as well as collecting any needed documentation. After that, they move on to: Filing a motion to dismiss the lawsuit: If the lawsuit is invalid — because the statute of limitations on the debt has passed or the creditor can't prove the debt belongs to who they're suing, for example — then the debtor can file to have it outright dismissed. Settling the debt out of court or drafting up a new debt contract: Doing this means that the debt collector no longer has any need to go to court. Filing a counterclaim: If the debt collector has engaged in wrongful practices while trying to collect debt, then the debtor can use that information to file a counterclaim, which can result in getting the lawsuit dismissed. Common wrongful practices include falsely implying that the debtor committed a crime, using false or deceptive means to collect or attempt to collect debt and harassing or threatening debtors or their property. Keep in mind: The ability to get your lawsuit dismissed will depend on your specific court case and circumstances, including what steps your debt collector has taken prior to filing. That's why it's best to keep records of all interactions you have with debt collectors and to hire an experienced attorney to help you figure out a plan of action. If you are being sued over an old debt, negotiating a debt settlement is a smart move. A lot of people don't realize that debt settlement is one of the best debt relief options out there, and creating a debt settlement plan while working with an attorney or certified credit counselor is often much better than going to court over credit card debt. Here's how to settle credit card debt before going to court: Start by examining your budget or making one. How much money can you put toward your debt each month? Is it possible to pay off a large amount of your debt at once, maybe by pulling money from a recent cash influx, like a tax refund or work bonus? Certified credit counselors from nonprofit agencies can help you dive deeper into your finances and come up with a plan to get out of debt. While these counselors won't settle your debts on your behalf, they will offer advice and help you create a realistic budget to go with your repayment plan. One debt settlement option is to create a payment plan that allows you to pay off your debt over time. If you can turn your debt into another monthly bill, you might be able to pay it off in full and satisfy your responsibilities to the debt collectors. Your other debt settlement option is to make a lump-sum payment on your debt. Some debt collectors will allow you to settle your debt for less than the amount owed, as long as you are able to pay off the entire settlement at once. If you have enough money to make a significant payment on your debt, the lump-sum plan could be your best option. Keep in mind: Your debt should be considered paid in full, even if you pay a lump sum that's less than what you originally owed. Make sure you get this in writing so that they can't come back in the future and claim you still owe them more money. Even if you're able to settle your debts or come up with a debt management plan that will help you pay it all off, your credit score will still suffer as a result of the derogatory marks added to your credit report. However, getting out of debt will put you on the path to better credit, even if your score takes a significant hit during the process. While it'll take several years for those derogatory marks to fall off your credit card report, you can start working on your credit score long before then. There are plenty of ways to rebuild your credit, and it's much easier to do so when you don't have debt hanging over your head. If your credit card debt feels overwhelming and you're having trouble making payments, you have options. A balance transfer credit card with a strong introductory APR offer, for example, could help you consolidate your credit card debt into a single monthly payment. Bankrate's credit card debt resources can help you learn more about debt relief options like credit card hardship programs. They can also help you find ways to manage your debt so you can hopefully avoid getting a court summons from a debt collector in the first place. If you do find yourself with a court summons, don't ignore it. Verify that the debt is yours, then make a plan to handle the situation. An attorney can help you understand your rights as you deal with the summons. Sign in to access your portfolio
