Oak Park Real Estate & Estate Planning Blog

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 ...

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 ...

When an Oak Park consumer faces harassment or other unfair or deceptive practices from a debt collection company , that consumer might consider filing a claim under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits certain actions by debt collectors and gives consumers the ability to file a federal claim in situations where a debt collector violates the law. Yet one of the requirements to have standing to sue under the FDCPA (and other federal statutes) is that the consumer must have suffered an “injury in fact” under Article III of the U.S. Constitution. Without an “injury in fact,” the consumer’s complaint can be dismissed for lack of standing. A 2016 U.S. Supreme Court case, Spokeo, Inc. v. Robins (2016), made clear that a consumer must have suffered an injury that is “concrete” enough to be considered an “injury in fact.” In applying Spokeo, several circuit courts have concluded that the consumer did have standing. However, a recent case out of the Sixth Circ...

Oak Park residents who are struggling with debt and dealing with frequent contact from debt collectors may know that the Consumer Financial Protection Bureau (CFPB) recently released a proposal that would include additional protections from consumers but also would give debt collectors more opportunities to contact consumers. As a recent article in USA Today explains, “more than 20 U.S. Senators are calling on the Consumer Financial Protection Bureau to reconsider a proposal that would allow debt collectors to send unlimited texts and emails to consumers, as well as call them seven times a week per debt.” Concerns About How CFPB Plans Will Impact Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) provides consumers with rights when it comes to debt collection, and it limits the amount and type of contact a debt collector can make with a consumer. For example, the FDCPA prohibits a debt collector from calling at inconvenient times—typically very earl...

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...

Many Oak Park residents have struggled with debt at one point or another, and many continue to face seemingly constant calls from debt collectors . In some cases, debt collectors may be violating the terms of the Fair Debt Collection Practices Act (FDCPA), even when debtors legitimately owe money, by harassing debtors, calling at odd hours, threatening or intimidating debtors, and using other unlawful tactics. In other situations, debt collectors engage in unlawful behavior by attempting to collect on debts that the person being targeted does not actually owe, or attempting to file claims to collect on debts that have been time-barred by the Illinois statute of limitations. When you already are struggling with debt and attempting to get on top of your monthly bills, having to deal with debt collectors can add enormous stress to your day-to-day life. A recent article in U.S. News & World Report provides some important tips for dealing with debt collectors. Understand Who is Att...

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...

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 holiday season can be a stressful time for many consumers in Oak Park, especially if finances are tight. For many consumers in Chicagoland, the holiday season is also a reminder of credit card debt and the inability to cover the high costs associated with holiday gifts, parties, and other expenditures. While some consumers know their rights under the Fair Debt Collection Practices Act (FDCPA), many others do not understand their rights—or the responsibilities of debt collectors—according to the federal law. The FDCPA, in short, prohibits deceptive, fraudulent, and otherwise unfair debt collection practices . One question that consumers might ask who have some familiarity with the FDCPA and its protections is, “Is it unlawful under the FDCPA for a debt collector to contact me during the holidays? More specifically, can a debt collector call me multiple times on, for example, Thanksgiving Day or Christmas Day?” An article in Credit.com addresses this question, and we ...

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 ...