• 30 Million Americans Dealing with Debt Collection Industry

    This video is from a March 2009 Dateline NBC segment on the dirty tactics used by debt collection agencies in the United States. While the segment is more than three years old, little has changed in that time. If anything, the problem has only grown worse.

    On August 20, 2012, the Los Angeles Times reported that debt collection has become a $12 billion a year industry with an estimated 30 million Americans dealing with debt collectors this year. According to the Times, that is a nearly 50 percent increase since 2003.

    One person the Times article featured was Piqua, Ohio, resident Katie Brown. She told the Times that she received a call about her unpaid $3,000 credit card bill from Hhgregg Inc. The person claimed that he was from a free legal aid service that Brown had contacted to try to end harassing phone calls from debt collectors.

    “After I told him everything, he laughed and said, ‘Now let me tell you who I am. I hold your debt from Hhgregg,'” Brown told the Times. “I was scared they would get to my husband’s work and start calling them, because at this point they would stop at nothing if they were going to misrepresent themselves.”

    As the Times article noted, more people have increasingly fallen behind on their bills for credit card debt, student loans and other expenses in the Great Recession. If you are also facing harassing calls from debt collectors, the good news is that filing Chapter 7 and Chapter 13 bankruptcy will trigger an automatic stay that requires most debt collectors to stop all collection efforts against you until the bankruptcy is over.

    If you would like to learn more about filing bankruptcy and receiving an automatic stay, you can use the form on this page to have our Chicago bankruptcy lawyers review your case or you can contact our firm at (866) 930-7482 to schedule a free consultation.

    Benjamin Brand Services – Chicago bankruptcy lawyers

  • Is Robo-Signing Sequel Being Put on Plastic?

    On Wednesday, we discussed how some Chicago-area homeowners are now dealing with foreclosure notices as lenders begin to tackle backlogs that were amassed while states investigated “robo-signing” fraud. As it turns out, the practice in which bank employees sign thousands of documents and affidavits without verifying the information was not just limited to foreclosures.

    On August 12, 2012, the New York Times reported that the same “robo-signing” problem is now emerging in the debt collection practices of credit card companies as well. Judges who oversee these cases told the Times that lenders are “churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers.” Worse yet, many judges told the Times that “their hands are tied” and they cannot question the banks or comb through the lawsuits to root out suspicious documents unless a consumer shows up to contest the lawsuit.

    “I do suspect flaws,” Harry Walsh, a superior court judge in Ventura, California, told the Times. “But there is little I can do.”

    “I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” Brooklyn civil court judge Noach Dear told the Times. He said he presided over as many as 100 such cases a day .

    Are you being harassed by debt collectors for outrageous-possibly even exaggerated-credit card payments? You may be able to wipe out your credit card debt by filing Chapter 7 or Chapter 13 bankruptcy . Contact our firm today at (866) 930-7482 or complete the form located on this page to see how our Chicago bankruptcy attorneys can help.

    Benjamin Brand Services – Chicago bankruptcy lawyers