what a lawyer says to a collection company for third party disclosure

Can a debt collector be sued for improper third party disclosures?

The Law Offices of Robert J. Nahoum represents consumers who have been the victim of improper third party disclosures by a debt collector. In appropriate cases, we sue debt collectors and debt collection law firms in Federal District Court for violations of the FDCPA.

What is a 3rd party disclosure?

Third Party Disclosure. (3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information;

What are third party debt collectors looking for in a process?

The Third Party Debt Collectors are looking to see if you have done your process sloppy (first time experience), or if you actually know what you are doing, and our organization has never had a client who lost and had to pay money to a third party debt collector.

What happens if you don’t respond to a collection agency suit?

Many attorneys will provide a free initial consultation where you can ask about a contingency fee and the likelihood of success in your case. If you don’t respond to the suit, the collector will most likely ask the court to enter a default judgment, which means you automatically lose the case.

What can a debt collector say to a third party?

Generally, a debt collector can't discuss your debt with anyone other than:You.Your spouse.Your parents (if you are a minor)Your guardian, executor, or administrator.Your attorney, if you are represented with respect to the debt.

How do you negotiate with third party debt collectors?

Start by offering cents on every dollar you owe, say around 20 to 25 cents, then 50 cents on every dollar, then 75. The debt collector may still demand to collect the full amount that you owe, but in some cases they may also be willing to take a slightly lower amount that you propose. A payment plan.

Can a debt collector communicate with a third party?

Subject to limited exceptions, the FDCPA prohibits a debt collector from communicating with a third party in connection with the collection of a debt.

How do you argue with a collection agency?

Your dispute should be made in writing to ensure that the debt collector has to send you verification of the debt. If you're having trouble with debt collection, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).

What percentage should I offer to settle debt?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.

What should you not say to debt collectors?

3 Things You Should NEVER Say To A Debt CollectorAdditional Phone Numbers (other than what they already have)Email Addresses.Mailing Address (unless you intend on coming to a payment agreement)Employer or Past Employers.Family Information (ex. ... Bank Account Information.Credit Card Number.Social Security Number.

When a consumer is represented by an attorney the debt collector is permitted to communicate?

1. Consumer-initiated communications. A consumer-initiated communication from a consumer represented by an attorney constitutes the consumer's prior consent to that communication under § 1006.6(b)(4)(i); therefore, a debt collector may respond to that consumer-initiated communication.

How many times can a debt collector contact a third party to request location information regarding the debtor?

Again, the collector can seek location information, not use your friend or family member as an answering service. A collector can only call that third party one time.

What do debt collectors say when they call?

Here's some basic information you should write down anytime you speak with a debt collector: date and time of the phone call, the name of the collector you spoke to, name and address of collection agency, the amount you allegedly owe, the name of the original creditor, and everything discussed in the phone call.

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

How do I fight unfair collection?

Here are a few suggestions that might work in your favor:Write a letter disputing the debt. You have 30 days after receiving a collection notice to dispute a debt in writing. ... Dispute the debt on your credit report. ... Lodge a complaint. ... Respond to a lawsuit. ... Hire an attorney.

What is the best reason to dispute a collection?

If you believe any account information is incorrect, you should dispute the information to have it either removed or corrected. If, for example, you have a collection or multiple collections appearing on your credit reports and those debts do not belong to you, you can dispute them and have them removed.

What does the FDCPA say about third party communication?

The FDCPA does outline instances where third party communication is legal and the actions agencies are lawfully allowed to pursue. If, for instance, the consumer has retained an attorney, the FDCPA stipulates that the debt collection agency can directly contact that consumer’s lawyer. The Act also indicates that it is lawful to also reach out ...

What is the FDCPA?

In general terms, the Fair Debt Collection Practices Act, also known as the FDCPA, bars debt collectors from contacting family or any other third party about another person’s past due debt. However, there are exceptions to this rule. The FDCPA does outline instances where third party communication is legal and the actions agencies are lawfully ...

Can a debt collector lie to a consumer?

Lying: Debt collectors also cannot lie to consumers in an attempt to collect on debt. They cannot claim to be affiliated with a law enforcement agency, specific credit bureau or an attorney to persuade the consumer to make a payment.

Can collections agencies reach out to non-relatives?

Collection agencies can reach out to non-relatives or legal professionals associated with the consumer, but only if the agency identifies who they are to the individuals they contact and that they are attempting to determine the whereabouts of another.

Can debt collectors contact third parties?

Subsequent contacts: The FDCPA stipulates that debt collectors can only contact a third party once. Any subsequent contact with the same party is against the law. Harassment: Debt collection agencies are also barred from engaging in conduct that is construed as harassment or abusive.

What happens if you don't erase your debts?

If you don’t lawfully erase your debts, you run the chance of getting a Judgment in a Public U.S. Court from either a Third Party Debt Collector, or the Original Creditor, and either way this can lead to your Public Bank Accounts being levied and having funds seized, as well as any of your assets, and garnishment of wages.

What is a certificate of non response?

Your Certificate of Non-Response is a key piece of evidence, and with step 2 (Notice of Fault and Opportunity to Cure) and Step 3 (Notice of Default) you are building up a valuable record; pieces of evidence that would beat off any potential lawsuit, court proceeding, and the like and give you success in court.

Do third party debt collectors have to do A4V?

Third Party Debt Collectors are pretty easy to get to go away. When dealing with Third Party Debt Collectors, you don’t need to do any Accepted for Value (A4V) or filing any Bonds or UCC’s. The simple Debt Validation Process is used, and often times, like in this example below, the companies close your account before you even finish your “Three ...

What is a debt collection lawsuit?

A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court. The complaint will explain why the collector is suing you and what it wants—usually, repayment of money you owe, plus interest, fees, and costs.

What is discovery in a lawsuit?

“ Discovery ” refers to the formal procedures that parties in a lawsuit use to get information and documents from each other to prepare for trial or settle the case. If you don’t raise any defenses or counterclaims, the collector probably won’t engage in discovery. But if you have a good defense or file a counterclaim, you and the collector might want to participate in discovery.

How long does it take to file a lawsuit?

Generally, you’ll get around 20 to 30 days to file a written answer to the lawsuit with the court. You’ll have to respond to the allegations in the complaint and raise any defenses you have, like that the statute of limitations (the law that sets a time limit on the right to file a lawsuit) has expired, or counterclaims against the collector, such as violations of the Fair Debt Collection Practices Act.

How to challenge summary judgment?

To challenge a summary judgment motion, you’ll have to file paperwork opposing the motion. If you don’t, you’ll probably lose. Because the outcome of the lawsuit is at stake, you should seriously consider consulting with a lawyer, if you haven't already, if the collector files this kind of motion.

What happens if a collector grants a motion?

If the judge grants the motion, the court will enter a judgment against you without a trial.

What happens if a collector gets a judgment against you?

Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.

What happens if a collector files a summary judgment?

If the judge grants the motion, the court will enter a judgment against you without a trial.

Why is disclosure important in arbitration?

In arbitration, disclosure is considered fundamental due to an issue conflict with the arbitrators, which means the existence of bias in the arbitrator. For instance, the arbitrators may have a relationship with the funder, which if not disclosed might lead to enforcement issues at a later stage. Therefore, there arises a need for determining ...

Why is a balanced disclosure required in TPF?

It required that a balanced disclosure should be made by the parties of any TPF agreements in order to prevent any possible conflict of interest of the funder with the arbitrators or the law firms involved in the proceedings. This was to prevent any future challenge to the award based on the independence of the arbitrator. 4.

What is TPF in arbitration?

In Third-Party Funding [“TPF”] arrangements, a party to arbitration receives funds from third-parties for the pursuit or defence of the proceeding. This funding can be either through a donation or a grant, or in return for remuneration dependent on the outcome of the proceeding. It is a resort taken by financially weaker parties to protect their legitimate interests by successfully pursuing their claims before arbitral tribunals. As the exorbitant costs involved in international arbitration is not an unknown issue, parties sometimes also opt for TPF to diverge the money in further investment, instead of paying for arbitral costs. The funder invests in the claims of such claimants with a settlement that a percentage of the damages awarded would go to the funder.

Is there a comprehensive rule on the intersection of confidentiality and disclosure obligations?

On the other hand, ICSID Rules have made specific disclosure requirements. However, there are no comprehensive rules on the intersection of confidentiality and disclosure obligations.

Is disclosure of TPF uniform?

The aspect of regulating standards for disclosure of TPF has not been uniform. Below, the author discusses this varied approach to understand the shortcomings of various rules and thus recommend appropriate changes.

Does Singapore have a confidentiality obligation?

Thus, Singapore has made an exception to the general confidentiality obligation and has mandated disclosure to protect the interests of the parties and to ensure that the arbitrators do not share any interest with the funders.