There are many reasons that people choose to represent themselves (what is referred to as pro se) rather than hire an attorney. Rarely are any of them good reasons. To a lay person, I realize that this sounds almost disingenuous coming from someone who is an attorney – but the law is serious business. A recent decision from the US Bankruptcy Court in Massachusetts should serve as a reminder to anyone considering the pro se option that do so may invite undesirable consequences. (more…)
Posts Tagged ‘FDCPA’
When You Discover that You Are a Creditor in a Bankruptcy Case…
Monday, October 12th, 2009
Last week, I was in the clerk’s office and overheard two people ask the clerk which forms needed to be filed in a bankruptcy case. But this person was not a debtor – they were a creditor. Their landlord had filed bankruptcy. The former tenant was looking for their security deposit back, and was going to sue the debtor in small claims. I couldn’t help myself – and I butted in.
“You need relief from the automatic stay.”
“The stay applies even to me?” one asked.
“It applies to everyone.”
After that short exchange, I thought I would put together a short checklist of things to do when your landlord – or someone else you know who also happens to owe you money – files a petition seeking bankruptcy protection.
Here’s Another Reason Why You Actually Need to Read Credit Card Agreements
Friday, April 3rd, 2009
After reading a 9th Circuit Court of Appeals decision issued yesterday, I’ve been struggling. There’s an important legal issue to discuss, but at the same time, I’ve been struggling with the title. I wanted to use a title that was little kitschy, because after all, that’s what makes a blog even moderately entertaining and worth visiting. I think. I also thought the issue justified my resorting to something profound. Something that makes the reader go “hmmm…so true.” Then, there’s a part of me that just wants the decision to speak for itself. So here goes.
In July 2001, Robin got a Providian credit card. The terms of the account – on that slip of paper that people have a tendency not to read required that it be governed by New Hampshire law. If you have not heard of Providian, spend some time on the net searching them out. You’ll get the sense that they weren’t a particularly consumer-friendly company, unless your idea of being consumer-friendly is only to pretend to be friendly. But I digress.
She defaulted on the card in November 2001. We don’t know why she defaulted. Don’t know if it was a lost job. A health matter. Don’t know if she was just being irresponsible. We just don’t know and I cannot assume what I do not know (and what’s not discussed in the decision). Her bill was about $3,000 with an interest rate that was high enough to be flirting with 25 percent. The New Hampshire statute of limitations on credit cards is three years.
In December 2004, more than three years later, Robin received a letter from a debt buyer attempting to collect the debt. The debtor buyer than sued her. After that suit was voluntarily dismissed, she sued the debt buyer claiming violations of the Fair Debt Collection Practices Act for attempting to collect a debt that was time-barred.
As the Economy Turns…
Wednesday, January 28th, 2009
Today, my Bankruptcy Colleague and fellow-blogger Jonathan Ginsberg wrote about The Psychology of Debt Collection: Avoid the Manipulation.
The Boston Globe reports that the Massachusetts Attorney General has filed a bill to slow down foreclosures. But the legislation would only protect those in “risky” loans. And if people keep losing their jobs, homeowners with “risky” loans will not be the only ones facing the possibility of losing their home.
Meanwhile, in Washington, a bill that would let some homeowners in Chapter 13 modify the mortgage on their principal residence has cleared the House Judiciary Committee.
While homeowners might be getting a break, recent graduates are finding it tougher and tougher to pay off student loans. An opinion piece in the Minneapolis Star Tribune suggests that a good way to stimulate the economy may be to forgive student loan debt.
The Federal Reserve however, seems to have another idea, although I am not convinced it’s a better idea. From CNNMoney.com:
The Federal Reserve is getting ready to launch a new program that should make it easier for consumers to get credit-card and auto loans — though not necessarily at lower interest rates.
Yikes.
A Collector’s Dirty Tricks
Thursday, September 13th, 2007
Over at The Street.com, reporter Cliff Mason shares his experiences with a debt collector. It is a good read, but I have to stress that if you are having problems with a debt collector, contact a local consumer protection attorney to advice.
First Circuit: Attorneys Fees Cut in FDCPA Suit
Friday, June 8th, 2007
Yesterday, the First Circuit Court of Appeals affirmed a lower court’s ruling that slashed a request for legal fees sought by counsel representing plaintiffs in a Fair Debt Collection Practices Act matter. The FDCPA allows attorney fees on successful claims, and the plaintiffs in this case were successful, but for a variety of reasons, attorneys fee award ended up being a little more than 10% of what was sought. The case should serve as a wake-up call for consumers, attorneys and Congress.
The plaintiffs, a married couple, sued Corporate Receivables, Inc. and one of its employees for abusive debt collection practices (the husband owed the debt). They took their case to a jury and presumably did so with the hopes of getting a significant award of actual damages.
