Oak Park Real Estate & Estate Planning Blog

You may be aware that relatively recent changes to federal regulations have resulted in the ability for debt collectors to contact consumers in a new manner: through text messaging. In 2020, the Consumer Financial Protection Bureau (CFPB) finalized amendments to Regulation F . With those new amendments, debt collectors have been permitted to make contact with consumers through electronic communications, including texting. Yet it is essential to know that the amendments to Regulation F do not exclude text messages or other forms of communication by debt collectors from the Fair Debt Collection Practices Act (FDCPA). To be sure, if a debt collector engages in texting in a manner that violates the FDCPA, the affected debtor may be able to file a claim. In addition, debtors may have options to opt out of receiving text messages from debt collectors. Our experienced Oak Park consumer protection lawyers can provide you with more information. Amendments to Regulation F Allow Debt Collectors ...

Debt collectors often attempt to charge extra fees when collecting debts from consumers , particularly when the consumer seeks to make a payment online or to make payments in other specific ways that the company says will incur a fee. According to a recent news release from the Consumer Financial Protection Bureau (CFPB), the CFPB has “issued an advisory opinion affirming that federal law often prohibits debt collectors from charging ‘pay-to-pay’ fees,” which are often known as “convenience fees.” As the CFPB clarified, these pay-to-pay fees, or convenience fees, “are imposed on consumers who want to make a payment in a particular way, such as online or by phone.” The advisory opinion is part of a longer focus by the CFPB to address “junk fees” that affect consumers. What do you need to know about the CFPB’s advisory opinion and any effects it could have? Details of the Advisory Opinion According to the news release, the CFPB’s recent advisory opinion is based on language in the Fair ...

Debtors in Illinois have a variety of rights under the Fair Debt Collection Practices Act (FDCPA) whether they are considering a bankruptcy filing or are taking steps to get debt under control without filing for bankruptcy. The FDCPA also provides protections to debtors who have filed for bankruptcy in the past. Our Oak Park consumer protection lawyers want to provide you with more information about your rights as a debtor and the protections that are available to you under federal law. The following are five things you should know about your rights under the FDCPA. 1. Debt Collectors Cannot Contact You at Inconvenient Times and Places The Fair Debt Collection Practices Act prohibits creditors and debt collectors from calling you at inconvenient times, such as before 8:00 a.m. or after 9:00 p.m. In addition, the FDCPA prohibits debt collectors from calling you at your place of employment as soon as you ask that you not be contacted at the place you work. If a debt collector contacts...

Whether you are considering the possibility of consumer bankruptcy or you have already made the decision to file, it is important to understand how your debts will be treated in a bankruptcy case. As such, you may be wondering if all debts are treated the same in a personal bankruptcy case, or if certain debts are handled differently. Generally speaking, debts in a bankruptcy case can be categorized as secured debt, priority unsecured debt, and non-priority unsecured debt. In addition, you should know that student loans are handled a bit differently in bankruptcy cases, and there are also types of debt that are ineligible for discharge. Our Oak Park bankruptcy lawyers have more information to explain the types of debts in bankruptcy cases and how they are handled. Secured Debt, Priority Unsecured Debt, and Non-Priority Unsecured Debt First, it is important to understand the differences between secured and unsecured debt. Secured debt is debt for which there is collateral, which means...

During the holiday season and in the weeks and months that follow, many Americans struggle with debt. Consumer debt can be extremely difficult to manage, especially when your income and assets are insufficient to allow you to get out of debt. Making the minimum monthly payments on credit cards and other bills can lead to increasingly more debt and more anxiety. Consumer bankruptcy may be able to help. If you are considering consumer bankruptcy, one of our dedicated Oak Park bankruptcy lawyers can speak with you today about your circumstances and your eligibility for Chapter 7 or Chapter 13 bankruptcy. In the meantime, the following are some of the top benefits of Chapter 7 and Chapter 13 bankruptcy. Debt Collectors and Debt Lawsuits Must Stop One of the great benefits of consumer bankruptcy that applies as soon as you file your bankruptcy petition is the automatic stay . Under U.S. bankruptcy law, the automatic stay prevents any additional action from being taken to collect your d...

A recent Illinois debt collection case concerning a debtor’s privacy resulted in a ruling for the debt collector. That case, Brewer v. The Law Offices of Mitchell D. Blum & Associates (2021), centered around a debt collector revealing a portion of a debtor’s account number in a mailing. The debtor argued that the debt collector violated the Fair Debt Collection Practices Act (FDCPA) by revealing private information about the debtor. A judge for the United States District Court in the Northern District of Illinois disagreed. Our Oak Park consumer protection lawyers want to tell you more about the case. Facts of Brewer In the recent case, the plaintiff, Tyrone Brewer, filed a claim against debt collectors who “sent him a debt collection letter with part of his account number showing through the envelope’s glassine address window.” According to Brewer, revealing the portion of his account number in the mailing violated the FDCPA. The plaintiff cited a specific portion of the FDC...

You might have debt that is several years old or even older, and you might have forgotten that you even owe the debt. Or, perhaps you have been worrying about the debt for years and concerned that you could face consequences if you do not pay. Either way, it is critical to understand when a consumer debt collector can—and cannot—file a lawsuit against you for old debt. Generally speaking, debts have a statute of limitations according to Illinois law , and once that statute of limitations runs out, the debtor collector cannot file a lawsuit against you. However, there are other reasons that a debt collector cannot seek a judgment against you by filing a claim, and there are also exceptions to the statute of limitations rule concerning time-barred debt. We want to give you a few questions to consider when it comes to determining whether a debt collector can sue you to obtain unpaid debt. Ultimately, you should seek advice from our Oak Park consumer protection lawyers who can assess ...

The U.S. Court of Appeals for the Seventh Circuit recently ruled in favor of a consumer in a case concerning the Fair Debt Collection Practices Act (FDCPA), Horia v. Nationwide Credit & Collection, Inc . (2019). The Seventh Circuit’s decisions govern cases in Oak Park and throughout Illinois, so it is important for consumers to know how the Court ruled in this recent case. In short, the Court determined that a consumer was permitted to bring a second FDCPA claim against a debt collector for failing to notify a credit agency that the claim was disputed. Why is this case significant for debtors’ rights ? The consumer previously filed a claim against the debt collector for the same issue (but for a different debt), and the claim was settled and dismissed with prejudice. While the debt collector argued that the consumer was trying to obtain “multiple recoveries for a single kind of wrong,” the Court agreed with the consumer. We will tell you more about this case and its implication...

When we think about consumer debt and personal bankruptcy filings, it is important to think beyond the socioeconomic bracket in which an individual or married couple falls. Indeed, according to a recent article in Forbes , many families who are struggling with consumer debt may be likely to file for bankruptcy in the near future, and race and ethnicity may be significant predictive factors. As that article explains, although white families have more consumer debt than non-white families, by and large, white families who are taking on consumer debt have more income and assets to cover what they are borrowing. However, for many African American and Latinx families with consumer debt, more borrowing could ultimately lead to bankruptcy as a result of underlying structural inequalities at work. More Consumers are Borrowing Similar to the late 1990s, more consumers are taking on debt as employment levels look promising. Yet the idea that this is a “good” kind of consumer borrowing may n...

Are you considering filing for Chapter 7 bankruptcy ? While a liquidation bankruptcy may seem relatively straightforward upon initial consideration, it is important to remember that consumer bankruptcy is extremely complex. Even when you have relatively few assets, Chapter 7 bankruptcy requires individuals to provide detailed information in a wide variety of documents. As such, you should always work with a dedicated Oak Park bankruptcy attorney on your Chapter 7 filing. In the meantime, however, we want to provide you with some basic facts about Chapter 7 bankruptcy. The following are five things you should know before you consider filing. Individuals Must Pass the “Means Test” in Order to Qualify The “means test” is a way of determining whether a debtor has enough income or assets such that it does not make sense for that person to file for Chapter 7 bankruptcy. In general, a consumer takes the means test by deducting monthly expenses from his or her current monthly income to dete...

Often when we talk about bankruptcy and problems with mortgage servicers, we are talking about consumers who file for Chapter 13 bankruptcy to avoid foreclosure or consumers who file for Chapter 7 bankruptcy in order to get a fresh start financially. However, as a recent Chapter 11 bankruptcy case suggests, sometimes consumer issues and consumer advocacy work actually can impact a mortgage servicer’s bankruptcy case. A recent article in The Wall Street Journal describes the case as one in which “consumer concerns sink Ditech’s Chapter 11 exit plan.” We want to provide you with more information about the background of the case, and then we want to say more about the significance of consumer concerns in the case. Getting the Facts About the Ditech Financial, LLC Bankruptcy Case According to an article in Bloomberg , last week consumers were waiting to hear about how a judge would rule on the proposed bankruptcy plan put forth by Ditech Financial, LLC, a mortgage servicer that has ...

When debt collectors contact consumers about debts they owe, the debt collectors are prohibited from using deceptive practices under the Fair Debt Collection Practices Act (FDCPA) in order to convince consumers to pay any debts that they owe. According to a recent report from CNBC , the Consumer Financial Protection Bureau (CFPB) recently filed a claim against a debt collection company, alleging that it “violated federal law by falsely representing to consumers that its attorneys were meaningfully involved in preparing the collection lawsuits against them.” Between 2014 and 2016, the debt collection company, Forster & Garbus, allegedly filed more than 99,000 lawsuits against consumers. While the debt collection company is based in New York, the CFPB’s decision to file a claim makes clear that debt collection companies that falsely inform consumers that attorneys are involved in filing lawsuits—when there are not actually attorneys involved—may have engaged in deceptive practices...

The Consumer Financial Protection Bureau (CFPB) was designed to protect consumers against unscrupulous financial tactics. According to the CFPB’s website , it came into existence through the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB in 2010. Since its inception, the CFPB has aimed to prevent many of the harms that resulted in the financial crisis of the earlier 2000s, including the use of unfair loan agreements from banks and deceptive or fraudulent debt collection practices that target consumers. In the last couple of years, however, consumer safety advocates have been worried about the limitations being placed on the CFPB. According to a recent article in Value Walk , consumer safety advocates from across the country are urging the new CFPB director, Kathy Kraninger, to ensure that the CFPB does its job to protect consumers in the new year. Consumer Safety Advocates Urge Kraninger to Protect Consumers La...

The Consumer Financial Protection Bureau’s (CFPB) supervisory and enforcement authority is one of the ways that consumers in Oak Park, Illinois and throughout the country are protected by unfair and deceptive debt collection practices . However, according to a recent article in The Hill , the U.S. House of Representatives will vote on a bill that aims to limit the CFPB’s power and the reach of the Fair Debt Collection Practices Act (FDCPA). What do debtors need to know about the bill and the ways it could affect debt collection practices in the U.S.? Limiting the Scope of the FDCPA and the CFPB We noted that the House bill could limit protections that are currently in place for consumers when it comes to debt collection. More specifically, the proposed legislation, H.R. 5082 or the Practice of Law Technical Clarification Act of 2018 , “would exempt debt collection attorneys from the Fair Debt Collection Practices Act and preclude the Bureau of Consumer Financial P...

The Seventh Circuit Court of Appeals recently heard a case in which it had to determine whether the definition of a “consumer” under the Fair Debt Collection Practices Act (FDCPA) includes a person who is being contacted by a debt collector over a debt that allegedly is owed, but which the person claims she or he does not owe. The definition of “consumer” is extremely important for this particular type of situation because it determines whether that person—who says she does not actually owe a debt but is being contacted about a debt—has protections under the FDCPA . In the case, Loja v. Main Street Acquisition Corp. (2018), the Court determined that the definition of “consumer” under the FDCPA is broad enough to include “consumers who have been alleged by debt collectors to owe debts that the consumers themselves contend they do not owe.” The case will have implications for future consumers in Oak Park and throughout Illinois. We want to tell you more about the case and w...