Stop Debt Collectors in Virginia » collection letter

Order of bill payment

admin — Mon, 15 Aug 2011 09:13:35 +0000

Last time I talked about how to deal with collectors, and I mentioned an order of payment. Here is why the order is important. The order, from last time, is: 1- Food, 2- car and house payment, 3- Utilities, 4- Current bills, and 5- Luxury expenses.

The food always comes first in the order of payment. If there is no food, the reason for a house, a car, utilities, credit card payment, etc is pointless.

The house and car payments come next. It is much easier for a lawyer to fix the problem of unsecured debt (debt where there is no right to repossess a thing), than a secured debt. Your secured creditors are hard to solve, often requiring that you make deals to pay them much more than you ordinarily would. Unsecured creditors will often settle for pennies on the dollar, over long periods of time, because payments to them are so much more tenuous. You can have defenses, or file Bankruptcy, or just not pay, and there is often very little they can do.

The utilities and taxes come next. The utilities will cut you off, and the tax man will come get things, but neither of those things happens quickly.

Then comes the unsecured bills- the medical bills, the credit cards, etc. When they get paid it will be good enough.

Lastly comes the luxury expenses- vacation, jewelry, etc. If you are able to pay all of your other bills, then there may be money left in your budget for luxury goods and services. They are not things that you need, but might want. Instead of a vacation, try a stay-cation. You get the time off, but not the expense of travel. Instead of expensive jewelry, try costume jewelry. You get some of the look, but not the expense.

Consult a lawyer and maybe a financial planner. You need to know your rights, and how to get out of this mess. Above all, don’t play ostrich. Sticking your head in the sand and saying “I can’t see you” will not make the problem go away.

If you have been impacted by anything we mentioned here, please make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.

Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230

How to Deal with Debt Collectors- What the Collectors Say

JKrumbein — Mon, 18 Jul 2011 02:43:32 +0000

One of my friends is a debt collector, and I asked him what advice he would give to his mother for how to deal with a debt collector. Here is what he said. First, the best way is to never need to deal with them, by paying your bills, but if you are forced into a situation where you must, here is what you should do.

1. Talk with the collectors. Ostrich technique does not work with debt collectors, they tend to get more aggressive, and eventually sue. That first call or letter will not be the last if you don’t respond. Request verification of the debt. Start with making sure they are collecting an account that you owe. Dealing with a mistaken identity or ID theft is different from dealing with your own accounts. Verify the amounts they are requesting.

My comments: I agree, but with a variation. You should communicate in writing. It makes the record so much clearer.

2. There may be tax consequences if you settle a debt, rather than pay the full balance. Debt collectors cannot give tax advice, and if they write down the debt by more than $600, they are required to send a 1099 to the IRS, and you could pay taxes on the money.

My comments: Yes, that is true, but if you are going to compromise a debt, tax consequences should be discussed with the collector before the deal is inked. Some collectors have authority to discuss tax consequences, some do not. Be on the lookout for a 1099 for the entire balance, or the forgiven balance, as this is not correct. You should not pay taxes on the interest, only the principal. Consult a tax professional for the details on that.

3. If you have problems, complain to the Federal Trade Commission customer service hotline.

My comment: And the Attorney General of the US, the Attorney General of your state, and you should find a lawyer who deals in collection abuse, like us.

4. Request a supervisor. If you are trying to pay, but the collector on the phone cannot make the deal you can afford, request a supervisor, who may be able to make a better deal.

My comment: If you cannot make a deal pretty quickly on the phone, you should not be talking to them on the phone. It is pretty rare that a supervisor can make a deal that a line collector cannot, and they often are just another line collector on the phone anyway. Better to send them a letter that says that you request no more phone calls, and that all communications should be in writing. Better still is a letter telling them to communicate with your lawyer.

If you have been impacted by anything we mentioned here, please make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230

How can you make a debt collector stop?

admin — Sun, 16 May 2010 04:11:33 +0000

How can you make a debt collector cease communications under the Fair Debt Collection Practices Act?

As usual, we start with the text of the statute.

15 USC §1692c(c) Ceasing communication

If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except—

(1) to advise the consumer that the debt collector’s further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt.

This means that, under the Fair Debt Collection Practices Act, if you inform a debt collector that you wish for them to stop collecting from you, they are required to do so. They are then prohibited, by the Fair Debt Collection Practices Act, from MOST other contact. They can let you know that they are complying with your requests. They can let you know that they may do certain things that are legal, that are collection efforts- repossession, foreclosure, lawsuit. And they can take those actions.

For most collectors, there is very little that they can do in response that complies with the Fair Debt Collection Practices Act, but one must be wary of collections agencies that are lawyers. Once should be particularly aware of those firms that regularly sue in the local courts where you are located. Those collectors, one should think carefully before deciding that you wish to tell them to cease collections efforts, as they may decide that they wish to sue to collect.

Because of this distinction, it is very important to contact a consumer protection lawyer, who is familiar with the Fair Debt Collection Practices Act, in your community before taking this kind of action. If you are in Virginia, we are glad to assist you. If you are not in Virginia, please visit the National Association of Consumer Advocates Find An Attorney webpage.

If you have been impacted by anything we mentioned here, you can make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

You can call us: 804.673.4358

You can fax us: 804.673.4350

You can contact us by US MAIL:

Krumbein Consumer Legal Services, Inc.

1650 Willow Lawn Drive

Suite 300

Richmond, VA 23230