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Judge Rules DebtCollection Lawsuit Waives Arbitration Clause A District Court judge in Maryland has denied a defendant’s motion to compel arbitration in a FairDebtCollection Practices Act case, ruling that the defendant waived its right to arbitrate by engaging in prior litigation. More details here.
Directly impacting creditors and debt collectors, a January ruling from the District Court of Puerto Rico found that sending debtcollection communications prior to any knowledge of a debtor’s bankruptcy filing is not a violation of the FairDebtCollection Practices Act (FDCPA).
There are several key consumer laws that collectors should be concerned with when engaging in debtcollection practices. These laws aim to protect consumers from unfair, deceptive, or abusive practices. Here are some important consumer laws that collectors should be familiar with: 1.
Contact your friends, family, or employer about your debt. Publicly shaming you for not paying your debt. Falsely inflating the amount of debt you owe. The FairDebtCollection Practices Act (FDCPA) is a federal law in the United States that protects consumers from creditor harassment.
Ask the Collection Agency to Validate the Debt. If you can’t find inaccuracies on your credit reports, write to the collection agency and ask it to validate your debt. The main issue here is that you have only 30 days to make the request after the collection agency first contacts you. TrueAccord.
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