Illinois Consumers and Mistaken Identity Complaints


Have you received a call from a debt collector but you’re certain you haven’t missed any payments?  You could be one of many Illinois residents who have been victims of mistaken identity when it comes to debt collection or a harmful debt collection scam. According to a recent report from the Illinois Public Interest Research Group (PIRG) Education Fund, “debt collectors trying to collect debt from the wrong person were the top source of complaints to the Consumer Financial Protection Bureau.”
The recent report, summarized in an Illinois PIRG news release, was the last one in a long series of reports that sought to analyze complaints received by the Consumer Financial Protection Bureau (CFPB).  According to the news release, the CFPB’s public Consumer Complaints Database opened for business, so to speak, to July 2011 and currently accepts complaints about most all “financial products and services.”
Have you been unfairly targeted by a debt collection company?  It’s easy to file a complaint through the CFPB, but it’s also important to speak to an experienced Illinois consumer protection attorney.  At the Emerson Law Firm, our dedicated attorneys can discuss your claim with you today.
What Is Illinois PIRG and What Does it Do?
Illinois PIRG identifies itself as “an independent voice for consumers.”  In short, it’s a consumer group made up of advocates who conduct research and help to bring information to consumers.  According to its website, it seeks to “counter the influence of big banks, insurers, chemical manufacturers and other powerful special interests.”
More useful for our purposes, the consumer advocacy group also creates debt collection reports that summarizes and provides insight for Illinois residents into the current work being done at the CFPB.  According to Congresswoman Jan Schakowsky, Illinois PIRG’s CFPB Debt Collection Report “makes helpful recommendations about policies that can be pursued to ensure that consumers get the accurate, timely information they need and to improve the CFPB’s effectiveness in protecting its consumers.”
Attempts to Collect Debts Never Owed
The key issue in the most recent Illinois PIRG Debt Collection Report is one of mistaken identity.  In short, many Americans have reported that debt collectors have harassed them and have insisted they repay debts that they don’t owe. This kind of harassment is illegal under the Fair Debt Collection Practices Act (FDCPA).  Dev Gowda, an advocate with the Illinois PIRG Education Fund explained that the problem certainly lies with the debt collectors and their unwillingness to verify that they have correct information and are contacting the actual debtor.  Gowda said, “many consumers who don’t owe debts are being harassed by lazy debt collectors who don’t verify consumer identities.”
In response to such complaints, Illinois PIRG’s report suggests that the CFPB make certain improvements to their rules about debt collecting.  Most notably when it comes to cases of mistaken identity, they want the CFPB to begin requiring debt collectors “to stringently verify that they are collecting accurately owed debts from the correct consumers” before they even begin the process of debt collection.
Have you been mistakenly contacted by a debt collector?  Have you been harassed by a collection agency such as Midland Funding or Portfolio Recovery Associates?  You may be able to file a lawsuit.  An experienced consumer protection lawyer can talk with you today and can answer your questions about filing a claim for compensation.
See Related Blog Posts:
High-Fee Credit Cards Target Consumers with Poor Credit Histories

Comments

Post a Comment

Popular posts from this blog

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more