Grab Bankruptcy

It should be noted that the request must be IN WRITING for the FDCPA protections to kick in. For the 7th Circuit, Posner wrote sample language he guaranteed would pass muster for collectors to use. The FDCPA requires the collection agency to stop collection activity until the information is provided to the debtor. The statute language, as I recall, merely requires that the collection agency be notified within 30 days, without specificity, though as I recall the courts interpret that as 30 days from receipt, as the FDCPA is intended to protect consumers and making it 30 days from the date of the letter would invite abuse. In terms of validating the debt, if the creditor has not filed an action yet, the creditor can request a validation. When the FDCPA and your state’s
statute which usually mirrors federal language.

I got a call from a friend that last her husband last year after a
lengthy illness. They were married when he got sick. She has a fair
amount of medical bills left and is having trouble paying them. She
doesn’t want to declare bankruptcy yet, but also doesn’t want to pay the bills
(her position seems to be that since he died, the hospital/Drs didn’t
do their jobs). I’ll have to make sure she didn’t sign the patient intake forms as a
payment guarantor. She may be contractually on the hook regardless of what
state law says.

The problem with debit cards is if someone gets your number and takes your money, you are out of busines and all your checks bounce. Sure, the banks say they’ll replace it, but you know they’ll treat you like a liar and thief for a few days before they give it back. At least with a credit card, they aren’t emptying your bank account and you can send them a notice and not pay.

SEC. 404. NOTIFICATION OF SALE OR TRANSFER OF MORTGAGE LOANS.

(a) In General- Section 131 of the Truth in Lending Act (15 U.S.C. 1641)
is amended by adding at the end the following:

`(g) Notice of New Creditor-

`(1) IN GENERAL- In addition to other disclosures required by this
title, not later than 30 days after the date on which a mortgage loan is
sold or otherwise transferred or assigned to a third party, the creditor
that is the new owner or assignee of the debt shall notify the borrower
in writing of such transfer, including–

`(A) the identity, address, telephone number of the new creditor;

`(B) the date of transfer;

`(C) how to reach an agent or party having authority to act on behalf of
the new creditor;

`(D) the location of the place where transfer of ownership of the debt
is recorded; and

`(E) any other relevant information regarding the new creditor.

`(2) DEFINITION- As used in this subsection, the term `mortgage loan’
means any consumer credit transaction that is secured by the principal
dwelling of a consumer.’.

(b) Private Right of Action- Section 130(a) of the Truth in Lending Act
(15 U.S.C. 1640(a)) is amended by inserting `subsection (f) or (g) of
section 131,’ after `section 125,’.