The proposed settlement order resolving the agency’s charges also requires that when consumers dispute the accuracy of a debt, Asset Acceptance must investigate the dispute, ensuring that it has a reasonable basis for its claims the consumer owes the debt, before continuing its collection efforts. The proposed order also bars the company from placing debt on consumers’ credit reports without notifying them about the negative report. The U.S. Department of Justice filed the proposed settlement order this week at the FTC’s request.

“Most consumers do not know their legal rights with respect to collection of old debts past the statute of limitations,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “When a collector tells a consumer that she owes money and demands payment, it may create the misleading impression that the collector can sue the consumer in court to collect that debt. This FTC settlement signals that, even with old debt, the prohibitions against deceptive and unfair collection methods apply.”

The FTC’s action – alleging that Asset Acceptance violated the FTC Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act – is part of the FTC’s continuing efforts to protect consumers adversely affected by the struggling economy. The agency today also issued a new publication for consumers, “Time-Barred Debts: Understanding Your Rights When It Comes to Old Debts”.

Michigan-based Asset Acceptance buys unpaid debts from credit originators such as credit card companies, health clubs, and telecommunications and utilities providers, as well as other debt buyers, and attempts to collect them. Asset Acceptance has purchased tens of millions of consumer accounts for pennies on the dollar. It targets accounts that other collectors have pursued and are more than a year past due, and in some cases attempts to collect debt that is more than 10 years old. Some of this debt is too old to be legally enforceable – state statutes of limitations cut off the right to sue to collect the debt after some period of time has passed, depending on the state and the type of debt. And many consumers do not know that making a partial payment of a debt may reset the state law’s clock on the collector’s ability to take legal action.

The FTC’s nine-count complaint charged Asset Acceptance with:

1. misrepresenting that consumers owed a debt when it could not substantiate its representations;
2. failing to disclose that debts are too old to be legally enforceable or that a partial payment would extend the time a debt could be legally enforceable;
3. providing information to credit reporting agencies, while knowing or having reasonable cause to believe that the information was inaccurate;
4. failing to notify consumers in writing that it provided negative information to a credit reporting agency;
5. failing to conduct a reasonable investigation when it received a notice of dispute from a credit reporting agency;
6. repeatedly calling third parties who do not owe a debt;
7. informing third parties about a debt;
8. using illegal debt-collection practices, including misrepresenting the character, amount, or legal status of a debt; providing inaccurate information to credit reporting agencies; and making false representations to collect a debt; and
9. failing to provide verification of the debt and continuing to attempt to collect a debt when it is disputed by the consumer.

The proposed settlement requires that when Asset Acceptance knows or should know debt may not be legally enforceable under state law – often referred to as “time-barred” debt – it must disclose to the consumer that it will not sue on the debt and, if true, that it may report nonpayment to the credit reporting agencies. Once it has made that disclosure, it may not sue the consumer, even if the consumer makes a partial payment that otherwise would make the debt no longer time-barred.

The order also prohibits the company from:

1. Making any material misrepresentation to consumers and making any representation that a consumer owes a particular debt, or as to the amount of the debt, unless it has a reasonable basis for the representation. To ensure it has such a basis, the order requires Asset Acceptance to investigate consumer disputes before continuing collection efforts;
2. “Parking” – or placing – debt on a consumer’s credit report when it has failed to notify the consumer in writing about the negative report, and
3. Violating the Fair Credit Reporting Act and the Fair Debt Collection Practices Act, in the ways alleged in the complaint.

Have you received threatening letters from Asset Acceptance?  Have you discovered old collection accounts on your credit report that are obsolete?  Contact us 24/7 at 1-800-263-9091 and ask attorney Micah Adkins for a free consultation concerning your credit reporting issue.

Over 35% of the US population rented housing in 2010.  Accordingly, the accuracy of the new rental history segment will affect millions of consumers.  The credit reporting industry says the new reporting segments will give additional credit history to those who generally have minimal credit history, such as consumers who recently divorced students and recent college graduates.

While incomplete credit reporting can help some consumers, it can also decrease credit scores for many other consumers.  This about the consumers who have do not own a home, recently graduated or are attending school, and obtain pay day loans.  These are the consumers who are most at risk for inaccurate credit reporting!

Under the Fair Credit Reporting Act, landlords do not have to report data to consumer reporting agencies. Credit reporting agencies that report information on your credit report must maintain and follow procedures to assure the maximum accuracy of your credit report.  15 USC 1681e(b).  Consumers have the right to dispute inaccurate or incomplete information on their credit report.  When consumer reporting agencies receive a dispute from consumers, the credit reporting agency must perform a reasonable investigation.  15 USC 1681i.  If the credit reporting agencies do not conduct a lawful investigation and delete the inaccurate information then you have the right to sue them in federal court for actual or statutory damages, including attorneys’ fees.  15 USC1681n and o.

You can help protect yourself from the negative effects of incorrect information on your credit report by requesting your free credit report from CoreLogic, Experian, Equifax, Trans Union on a regular basis.  When you find incorrect information on your credit reports you should dispute the information in writing to the consumer reporting agency that is reporting the inaccurate information.  Contact us 24/7 at 1-800-263-9091 and ask attorney Micah Adkins for a free consultation concerning your credit reporting issue.

How did the tax fraud scam work?  According to authorities, the victim’ personal identifying information (PII)as stolen by Taylor while she was cleaning offices.  After she obtained the PII, she provided the information to Cole and Bradshaw who then filed fraudulent tax returns.

FULL STORY

Victims of tax fraud generally do not find out about the crime unless their tax return is rejected, or they receive a tax deficiency letter from the IRS.  Others learn about the tax fraud after they have reviewed their credit report from Experian, Equifax or Trans Union and discover a tax lien. 

You can help protect yourself from tax fraud by protecting your personal identifying information.  You can detect tax fraud by requesting your free credit report from Equifax, Experian and Trans Union.  If you have requested your credit report and discovered incorrect tax liens or accounts that do not belong to you then you may be a victim of tax fraud or identity theft.  Contact us 24/7 at 1-800-263-9091 and ask attorney Micah Adkins for a free consultation.

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The fraudulent tax returns were filed between 2009 and 2011.  Elmore admitted to filing many of the tax returns.  The fraudulent returns resulted in a tax loss of more than $2.5 million!  U.S. District Judge Mark Fuller also ordered Elmore to pay $1,157,241 in restitution.

FULL STORY

What should you do if you are a victim of the tax fraud and identity theft scheme?  You should contact all three credit reporting agencies and request your free credit reports due to fraud or identity theft immediately!  Click here to learn how to obtain your free credit report due to fraud or identity theft.  Still have questions?  Contact identity theft lawyer Micah Adkins for a free consultation.

(1) ordered free credit report and did not receive it within 15 days;

(2) consumer unable to order free credit report; and

(3) credit reporting agency refuses the request for file disclosure (improper identification).

The Fair Credit Reporting Act (“FCRA”) requires credit reporting agencies, such as Equifax, Experian and Trans Union, to provide you with your free annual file disclosure (commonly referred to as a credit report) once every 12 months within 15 days of receipt of your request.  15 U.S.C. 1681j(a)(2).

How should I request my free annual credit report?  You should always request your credit reports by mail, but where you should send your request depends on the type of request you are making.

Free Annual Disclosures – You should order your free annual disclosures from the centralized source.  In 2004, the FCRA was amended by the Fair and Accurate Credit Transactions Act (“FACTA”) and allows consumers for the first time to request their free credit report once in a 12 month time period from each of the nationwide consumer reporting agencies (Equifax, Experian and Trans Union).  FACTA required Experian, Equifax and Trans Union to create a “centralized source” for consumers to make their request for a free annual disclosure.  The company, Central Source, is a joint venture between Equifax, Experian and Trans Union.  FACTA required all three nationwide consumer reporting agencies to have one central address, telephone number and website for consumers to request their free annual disclosure.

Why shouldn’t I request my free annual disclosure online?  Consumers should not request their reports online because they believe they are at the Central Source, but are actually at a website that may require you to enroll for services before you can obtain your free credit report.

Also, when you make a request online at annualcreditreport.com for all three reports, you are redirected from the official website to one of the credit bureaus’ websites.  The credit bureau website may ask you for additional information to verify your identity, but if the bureau has incorrect information in its database you will not be verified!  As a result, consumers are often sent form letters requesting additional identifying information such as a driver’s license and Social Security card.  Consumers get frustrated when they send in the requested information but the credit reporting agency fails to send the report and sends more form letters asking for additional identifying information.  Let me know if this sounds familiar to you!

Instead, click Annual Credit Report Request Form to download, print and request your free annual disclosure from all 3 credit reporting agencies and send the completed form by certified mail!  Also, ask the bureaus to redact your Social Security number from the report!

Also, under federal law, consumers have the right to request their free credit report after a user (i.e., potential creditor, employer or insurance company) takes an adverse action (i.e., declines credit, employment or insurance) within 60 days from the credit reporting agency that supplied the user your credit report.  15 U.S.C. 1681j(b).

How do I request a free credit report after I have been denied credit, employment or insurance?  When you are denied credit, employment or insurance based in whole or in part on information contained in your credit report, the user of the report (potential creditor, employer or insurer) will send you an adverse action letter.  The letter should explain to you why you were denied credit (accounts in collection, too many inquiries, collections or bankruptcy) and which credit reporting agency (i.e., Equifax, Experian or Trans Union) provided the user with your credit report.

The adverse action letter should also provide you with the contact information, including mailing address, for the credit bureau that supplied the user with the credit report.  Mail a certified letter to the credit bureau named in the adverse action letter and request a copy of your credit report.  Don’t waste any time because in order to get your free credit report you must request it within 60 days of receipt of the adverse action letter.  Also, send a copy of the adverse action letter to the bureau and include your personal identifying information, such as name, address, date of birth and Social Security number.  Like requesting your free annual reports, you should ask the credit bureau to redact you Social Security number to protect yourself from identity theft.

If you have mailed certified letters to the credit bureaus, supplied them with identifying information and the credit reporting agencies have failed or refused to send you your report, then you may be entitled to money damages – and your credit report!  After all, if you do not receive your credit report how can you dispute inaccurate information on the report?

Have you received form letters after requesting your credit report, provided the requested information and still have not received your credit report from Equifax, Experian or Trans Union?  Contact FCRA attorney Micah Adkins 24/7 for a free case evaluation at 1-800-263-9091.