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Can a Debt Collector Use Social Media To Contact You?

If you are like many other consumers in the US, you’ve got a facebook page. And, if you are like many other consumers  in the US, you’ve got debt. Put the two together and now Creditors and Debt Collectors have found one more way to reach out to you in an effort to collect on money owed.

The Federal Fair Debt Collections Practices Act, the law that protects consumers from debt collector harassment, was enacted long before social media or the internet. Thus the  line can become blurred between what is considered permissible contact and what constitutes harassment.

So may a debt collector reach out to your Facebook friends or family, post on your wall or “friend” you?  Two recent cases, one in Florida and one in California, have put some precedents in place for Social Media contact and the debt collection industry.

A judge in Florida ruled that a debt collector or creditor may use Facebook as a phone book of sorts to locate a debtor. However, s

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Tags: Debt, Debt Collector

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Anti-Scam Tips

Newspaper obituaries notify a large number of people in a short period of time about the death of a community member. Unfortunately, they also provide a list of potential victims to scam artists and thieves seeking emotionally vulnerable and, during memorial services, physically absent targets.

In the pain and confusion following a spouse’s death, you can’t be expected to remember websites and phone numbers for organizations that help uncover the unscrupulous. A couple of simple guidelines, however, could help you avoid most of the typical scams.

The most immediate vulnerability will be an empty house. Through an obituary, a thief can ascertain when the family will be away, and with friends and relatives coming and going, neighbors may assume the person going in while the family is gone has permission to do so.

Treat anything from an unknown source with suspicion. Read full article…

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Credit Card Debt – How Much is Too Much?

There is no definite dollar amount of credit card debt that tells you that you have too much credit card debt on your plate. A better way to calculate your financial health is to look at what percentage of your income goes to paying off what you owe to your creditors.

For example, if you make $2,000 a month and $500 of that goes to paying your student loan, car loan and credit card bills every month that means that 25 percent of your income goes to paying off debts.

Too much? One-fourth of your income is definitely a lot. Most financial experts caution that using 20 percent or more of your income to pay off your debt is something you should be concerned about although this is not a hard and fast rule.

So how much really is “too much” when it comes to credit card debt? There are three different points of view about this, enumerated here.

1.) No debt is best.

For some people, any credit card debt is a bad thing. The

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Tags: Card Debt, Credit Card, Credit Card Debt, Debt

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Collection Service Made To Pay $2.8 Million Fine

The largest fine in history for a violation of the Fair Debt Collection Practices Act has been leveled on a collection agency by the Federal Trade Commission last month. The Georgia company, West Asset Management, allegedly violated the Act with its aggressive techniques, and agreed to pay a settlement of $2.8 million. The settlement came after thousands of customer complaints against the collection agency, which employs about 1,500 people in 13 states, as well as in the Philippines. The collection agency has many clients in several industries, including government services, health care, telecommunications, and consumer credit.

The FTC claims that West Asset Management utilized several illegal techniques, including numerous harassing phone calls to debtors, improperly informing third parties about consumer debts, and claiming that it was a law firm that could have consumers jailed or fined, garnish their wages, or seize and sell their property if they did not pay debts.

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Tags: Fine, Million Fine

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Collection Fees On HOA Bills

Collection agencies could charge up to $1,950 plus “reasonable attorney fees” on a house that is late on its homeowner association assessment under a bill passed out of committee Friday by Senate Democrats.

Senate Bill 174 passed along party lines after an intense debate that had Republicans accusing Democrats of wading into a legal battle in favor of collection agencies.

The bill is usually supported by homeowner associations and collection agencies and opposed by consumer protection groups and investors. Sen. Allison Copening, D-Las Vegas, argued that the fee cap would protect homeowners from the excessive collection practices, and “reasonable attorney fees” could be settled by a judge. She said that the collection agency fees are required to keep homeowner associations solvent and able to provide services for existing residents.

Copening works as a lifestyle director for a homeowner association management company, and critics, including homeowners unhappy with their association boards, have said her outside employment presents an issue.

The legislation has been a source of drama this week, and a sign that the Democratic assembly is less than iron clad. Read full article…

Tags: Fees, Fees Hoa

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