As far as a credit repair firm, there is no such thing as repairing credit. People are misled constantly by these firms. You should look at the New York State Attorney General’s website to see which one of these companies are being investigated, and which companies have had actions taken against them. Before you consolidate the debts and work with an agency, speak to a bankruptcy lawyer. You can consolidate debts in a Chapter 13 bankruptcy and get protection by a federal court and federal law.
As far as credit repair is concerned, after bankruptcy the creditors have to put a zero balance on all your debts, if they don’t, you could actually sue the creditors and debt collection firms under the Fair Credit Reporting Act and, if they do things improperly, you can sue them under the Fair Debt Collection Practice Act. There are many protections in the law and you should consult with an attorney before you speak to non-attorneys trying to seek quick remedies.
Don’t pay attention to those ads on TV and radio: “Come to us, we’ll save you money, we’ll consolidate your debts.” Be aware that many of those companies are not working in your best interest and are just seeking money for themselves and many, many clients come in after they speak to these companies in worse shape prior than speaking to them and seeking their assistance.
I want to talk to you today about how to sue a debt collector. People wonder and say, “Suing a debt collector? Debt collectors are supposed to sue you. “Well, guess what not always. There’s a federal law called the Fair Debt Collection Practices Act that protects consumers from any abuse by debt collectors; any manipulation; any deception; any misleading tactics; any harassment. Well, what can you sue a debt collector for?
In short, you can sue them for a lot of things that you didn’t even know you can sue for. Now how much can you recover? You can recover up to a thousand bucks under the Fair Debt Collection Practices Act and there are other laws as well that might provide for more recovery when you sue a debt collector. Finally, do you have to pay legal fees? No, the legal representation is free for you. That’s because the law obligates the debt collector to pay legal fees in a lawsuit that they lose.