Oak Park Real Estate & Estate Planning Blog

Consumers in Illinois and throughout the United States are routinely contacted by debt collectors attempting to recover money for various types of debts. In some cases, debt collectors are attempting to collect on legitimate debts, meaning debts that actually exist and which the consumer owes, and for which the statute of limitations has not run out. However, there are also debt collectors that try to collect on fraudulent debts, or that continue trying to collect on debts that have been discharged in bankruptcy , debts for which the statute of limitations has run, and debts that never belonged to that particular consumer in the first place. According to a recent news release from the Consumer Financial Protection Bureau (CFPB), the agency has reached a settlement with a “debt collection mill” that has been “bombarding consumers with junk lawsuits.” What should you know about the CFPB news, and what implications could it have for debtors in the Oak Park area? CFPB Sues for Illegal Deb...

Are you being contacted by debt collectors about debt you incurred many years ago or debts you do not even remember incurring? Or are you concerned about facing legal action over an older debt you have never repaid? These are issues that worry many debtors, especially when they are facing financial problems and are dealing with economic stressors. If you do have old debt, it is important to understand what a creditor or debt collector can do and what they cannot do. In addition, it is important to understand your options for dealing with old debt. Our Oak Park consumer protection attorneys can provide you with more information about older debt and can assist you with your options for resolving debt through bankruptcy or holding a debt collector accountable for deceptive practices that are prohibited under the Fair Debt Collection Practices Act (FDCPA). Debt Might Not Be Yours When you receive calls or text messages from debt collectors about old debt that you do not even remember inc...

When a consumer owes debt to a creditor, or when the debt has been turned over or sold to a debt collector, the consumer will likely be contacted about the debt. It is important for consumers to know that they have certain protections under the Fair Debt Collection Practices Act (FDCPA), and that debt collectors cannot take certain actions or engage in particular behaviors according to the law. In order for a consumer to understand when they are being treated fairly (and when they are not), it is necessary to have an understanding of how the consumer debt collection process works. Debt Collectors are Permitted to Contact You But Must Comply With the FDCPA The Fair Debt Collection Practices Act (FDCPA) governs consumer debt collection practices. Under the FDCPA, debt collectors are permitted to contact consumers to try to collect debts, but there are certain restrictions, and some practices are unlawful. Consumers should know their rights under the FDCPA. Certain Debt Collection Pract...

If you do not already know that the federal Fair Debt Collection Practices Act (FDCPA) provides protections for consumers who are facing debt collection , now you know. The FDCPA prohibits various types of behavior and debt collection strategies by creditors and debt collection companies, including lying to consumers about debts they owe, making certain kinds of threats when contacting debtors, and even contacting debtors at odd hours of the day. These are just a few examples of some of the protections provided through the FDCPA. Yet the FDCPA does not explicitly address debt collection methods via social media, and the federal government recently changed the rules pertaining to social media use and debt collection strategies. As a report from ABC News explains, you still have rights under the FDCPA when it comes to debt collection methods and strategies, but you may not be able to prevent debt collectors from using social media or other forms of electronic communication to reach ...

Consumers in Oak Park, Illinois and across the country are struggling during the coronavirus pandemic. Many have lost their jobs, and some are considering the possibility of consumer bankruptcy . When you are already struggling with substantial debt, enduring abusive debt collection practices can be devastating. Debt collectors are required to abide by the federal Fair Debt Collection Practices Act (FDCPA), but many debt collectors violate federal law. According to a recent news release from the Federal Trade Commission (FTC), the FTC in conjunction with “more than 50 federal and state law enforcement partners,” initiated a “law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.” Taking Enforcement Actions Through Operation Corrupt Collector The newest initiative from the FTC and its partners is called Operation Corrupt Collector, and it “includes five FTC law enforcement actions,” which incl...

If you have consumer debt in Illinois and do not make payments on it, there is only a certain amount of time under Illinois law that creditors can continue to take legal action against you according to the statute of limitations. Once the debt becomes time-barred , a debtor no longer has to worry about being sued over that debt. However, it is essential for debtors in Oak Park to know that there are actions they can take (often without even knowing it) that can revive their time-barred debt. In other words, if a debtor makes a particular kind of statement or performs a certain action, the clock on the statute of limitations might start all over again, and the creditor may be allowed to seek compensation through a civil lawsuit. According to a recent report in The Washington Post , a new rule from the Consumer Financial Protection Bureau (CFPB) actually could result in debtors getting “tricked” into reviving those debts. Understanding How the Statute of Limitations Affects Creditor ...

Illinois residents and any debtors in states governed by the 7th Circuit Court of Appeals should know about a recent case concerning debt collection companies and their right to charge fees to debtors. According to a recent report in Reuters , the 7th Circuit Court of Appeals just held that the debt collector National Recovery Agency “did not violate federal collection law by charging consumers fees based on the percentage of the debt collected.” The 7th Circuit Court of Appeals covers Illinois, Indiana, and Wisconsin. Federal decisions in the Court are binding in those states, and the decisions can be persuasive in other jurisdictions. In other words, Oak Park residents will need to pay close attention to the recent case because the outcome could be applicable to them. Getting the Facts of Bernal v. NRA Group, LLC The recent 7th Circuit case is Bernal v. NRA Group, LLC (2019). As the Court explained the case, the primary issue it had to decide in this case was “whether a debt c...

Given that it is tax time, now is a particularly good time for anyone who has tax debt—or anticipates owing tax debt after this year’s tax cycle—to understand how the Internal Revenue Service (IRS) handles debt collection for tax debt. A recent article in Forbes discusses how the IRS currently handles tax debt, and what debtors should expect. In some cases, tax debt can be discharged in a bankruptcy proceeding. However, in many cases, tax debt is not dischargeable. For anyone who owes tax debt, it is important to learn more about how the federal tax debt collection process works, and what your options might be for filing for consumer bankruptcy . How Does the IRS Handle Tax Debt and Debt Collection? As the Forbes article explains, starting in 2017 the IRS “was required to hand over some unpaid tax bills to private agencies for collections.” Even though previous efforts to use private debt collection companies for collecting tax debt, the IRS moved forward with a private debt colle...

Have you faced harassment from debt collectors ? Has a debt collector threatened to sue you to collect a debt owed, or have you received notice that a debt collector has filed a lawsuit against you? Dealing with debt collection companies can be extremely frustrating, especially when you are already experiencing significant anxiety surrounding the debt you owe. While there are federal protections for consumers under the Fair Debt Collection Practices Act (FDCPA), consumers do not always know about their rights or how to access them. New legislation in Illinois wants to take steps toward changing that. Recently introduced legislation, House Bill 281 , would require any lawsuits filed by debt collectors against consumers to contain clear information about the consumer’s rights among other things. We want to say more about this legislation and how it could help to protect consumer rights if it becomes law. How House Bill 281 Aims to Protect Illinois Consumers There are many ways in w...

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...

What is “overbiffing,” and how is it harming debtors ? According to a recent report from CBS News , “overbiffing” is a term used for a practice in which debt collectors overstate the amount of money that consumers owe. And, as the article underscores, it is “the latest outrage in unfair debt collection .” In effect, through “overbiffing,” a debt collector can trick a consumer into paying more than she or he actually owes. If you were contacted recently by a debt collector who said you owed more money than you do, or who attempted to collect a debt from you that you do not owe at all, you may have been a target of “overbiffing,” and you may have a claim under the Fair Debt Collection Practices Act (FDCPA). An experienced Oak Park consumer protection attorney can discuss your options with you. How Does “Overbiffing” Occur? How exactly does “overbiffing” work? In other words, what are some of the tactics or methods that debt collectors use in overstating the amount ...

Debt collectors contact consumers in many different ways, and they use numerous tactics to try to convince those consumers to pay money. In some cases, the methods debt collectors use may be unfair and unlawful under the federal Fair Debt Collection Practices Act (FDCPA). What about text messages? Are debt collectors permitted to send text messages to your smartphone or other mobile phone under the FDCPA? If they are allowed to send text messages, does the FDCPA or any other law regulate what those text messages can say? We will tell you more about your rights as a consumer under the FDCPA and the Telephone Consumer Protection Act (TCPA) when it comes to debt collection and text messages specifically. Can Debt Collectors Send You Text Messages? On the broadest level, debt collectors are allowed to send text messages to consumers about debts. The FDCPA makes clear that debt collectors are permitted to text consumers as long as any texts sent are in compliance wi...