Linda Martinez presented on the Fair Debt Collection Practices Act (FDCPA) and consumer rights regarding debt collectors. The presentation covered what the FDCPA is, who enforces it, what debts it covers, communication rules, consumer rights to validate debts and stop collection calls. It provided a glossary of terms and discussed 15 common FDCPA violations by debt collectors such as misrepresenting amounts owed, excessive contacting, or contacting third parties. The presentation emphasized consumers learning their rights under the FDCPA to protect themselves from abusive collection practices.

1. Credit Education Presentation

2. The Ultimate Weapon Against
DEBT COLLECTORS
Presented by
Linda Martinez
Sales Director/Certified Credit Consultant

3. Topics To Be Discussed
 WHAT IS THE FAIR DEBT COLLECTIONS PRACTICES
ACT (FDCPA)
 WHO ENFORCES THE FDCPA?
 WHAT TYPES OF DEBTS ARE COVERED BY FDCPA?
 GLOSSARY OF TERMS
 COMMUNCATION WITH 3RD PARTIES
 WHAT ARE YOUR CONSUMER RIGHTS?
 HOW TO STOP COLLECTION CALLS
 15 FDCPA COLLECTION VIOLATIONS
 SOLUTION!!!

4. WHAT IS THE
FAIR DEBT COLLECTIONS PRACTICES ACT?
 The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692
et seq., is a United States statute added in 1978 as Title VIII of the
Consumer Credit Protection Act. Its purposes are to eliminate abusive
practices in the collection of consumer debts, to promote fair debt
collection, and to provide consumers with an avenue for disputing and
obtaining validation of debt information in order to ensure the
information's accuracy.[1] The Act creates guidelines under which debt
collectors may conduct business, defines rights of consumers
involved with debt collectors, and prescribes penalties and remedies
for violations of the Act. It is sometimes used in conjunction with the
Fair Credit Reporting Act.

5. WHO ENFORCES THE FDCPA?
 The Federal Trade Commission oversees
the collections industry, and has the
authority to impose fines or other penalties
for violations. However, the FTC does NOT
get involved with individual consumers’
cases. They accept a large number of
complaints, and look for patterns of
violations which could then lead to action
against a particular collection agency.

6. WHAT TYPES OF DEBTS ARE
COVERED BY FDCPA?
 The Act covers personal, family, and household
debts, including money you owe on a personal
credit card account, an auto loan, a medical bill,
and your mortgage.
 The FDCPA doesn’t cover debts you incurred to
run a business.

7. Glossary
of
Terms

8. Creditor
Any person who offers or extends credit
creating a debt or to whom a debt is owed, but
such term does not include any person to the
extent that he receives an assignment or
transfer of a debt in default solely for the
purpose of facilitating collection of such debt
for another.

9. Debt
Any obligation or alleged obligation of a
consumer to pay money arising out of a
transaction in which the money, property,
insurance or services which are the subject of
the transaction are primarily for personal,
family, or household purposes, whether or not
such obligation has been reduced to judgment.

10. Debt Collector
Any person who uses any instrumentality of
interstate commerce or the mails in any
business the principal purposes of which is the
collection of any debts, or who regularly
collects or attempts to collect, directly or
indirectly, debts owed or due or asserted to be
owed or due another.

11. COLLECTION AGENCY
(1) Some creditors will actually use a separate company
name, address, and phone number for their internal
collection departments, in order to give the impression of an
“outside” agency. This strategy is generally only used when
the debt is recent (under six months delinquent). (2) Most
collection activities are performed by a third-party collection
agency, which are separate from the original creditors, and
“work” debts on behalf of various lenders. They may also
buy bad debts which have been designated as “charge-offs”
by the original creditor.

12. Purchased Debt
 Some agencies also purchase large groups of charged-off debts for a
small percentage of the “face value” (amount owed.) After a debt is
sold, the debtor now owes the full amount of the purchase. Since the
chances of recovery decrease substantially with time, an agency
might only pay 1% - 5% of face value. The agencies’ profits come
from the difference between the purchase price and the amounts that
are eventually collected.
 Once the debt is purchased by a collection agency, the debtor will no
longer be able to make any negotiations with the original creditor.
Due to this reason a collection agency may file a lawsuit against the
debtor. However, the Federal Trade Commission has issued a
STAFF OPINION LETTER which indicates that, even if a collection
agency purchased a debt, it is STILL covered under the Fair Debt
Collection Practices Act as a “third-party debt collector.

13. Reporting to Credit Bureaus
 Third-party collection agencies may report a debt to one or
more of the credit bureaus, as a “Collection Account,”
including the amount, and whether it was paid or not.
Paying off a collection account will NOT result in the item
being removed from the consumer’s credit reports – it will
simply be marked “PAID.” Agencies can report both debts
that they have bought, and also debts they are working on
behalf of the actual creditor. Also, a collection agency may
request a debtor’s credit report, in order to get an idea of
his/her general financial situation, and to get updated
address and phone numbers.

14. Statute of Limitations
 The debt does NOT become “new” just because it was sold.
Example the seven-year credit reporting time limit is still
based on the ORIGINAL DELIQUENCY DATE with the
ORIGINAL CREDITOR. The statute of limitations for filing
lawsuits is also based on that same date. These limits
cannot be legitimately “reset” by a collection agency that
has bought the debt. However, the statute of limitations
MAY possibly be reset if the debtor makes a specific
promise to pay or makes a general payment. This can
reinstate the debt for another 6 years pending on the state
laws.

15. How Does A Debt Collector Obtain
Personal Information
 A person can be traced via Google, Yellow/White
pages, Assessors website, Facebook, contacting
family/neighbors, Department of Motor Vehicle records
(License Plate#), court records ( public records), written
check, CBR’s and other skip tracing tools.

16. Can A Debt Collector
Contact You Any time Or Place
 NO! A debt collector may not contact you at
inconvenient times or places, such as before 8
in the morning or after 9 at night, unless you
agreed to it. Collectors may not contact you at
work if they are told (orally or in writing) that
you’re not allowed to get calls there.

17. Can A Debt Collector Garnish
Your Bank Account Or Wages
 If you do not pay a debt, a creditor or its debt collector
generally can sue you to collect. If they win, the court will
enter a judgment against you The judgment states that
amount of money you owe, including but not limited to
attorney fees, costs and interest and allows the creditor or
debt collector to get a garnishment order against you,
directing a third party, like your bank, to turn over funds from
your account to pay the debt. Any account that is attached
to you can get garnished such as banking and savings
accounts.

18. COMMUNICATION WITH
THIRD PARTIES
 Under the Fair Debt Collection Practices Act
(FDCPA) discussions about the debt can only
be held with (1) the individual, (2) the creditor,
(3) an attorney representing one of the parties,
and (4) a credit bureau. Public airing of your
business intended to shame you into paying a
debt is not allowed. This is a violation of the
FDCPA.

19. YOUR CONSUMER RIGHTS?
HOW TO VALIDATE YOUR “SO CALLED” DEBT
 EXPLAIN TO ME THE MONEY YOU SAY I OWE
 SHOW ME A BREAKDOWN OF WHAT YOU SAY I OWE
 PROVIDE ME WITH COPIES OF PAPER WORK SHOWING I AGREED TO
PAY YOU WHAT YOU SAY I OWE
 PROVIDE ME WITH THE NAME AND THE ADDRESS OF THE ORIGINAL
CREDITOR
 PROVE TO ME THE STATUTE OF LIMITATIONS HAS NOT EXPIRED ON
THIS ACCOUNT
 SHOW ME A COPY OF YOUR LICENSE TO COLLECT IN MY STATE
CONTACT ME FOR YOUR “VALIDATION OF DEBT LETTER”

20. HOW TO STOP COLLECTION CALLS
 Make written request for the collector to cease
communication. They can only contact you one
more time, via mail to let you know one of the
following; that further efforts to collect the debt are
terminated, that certain actions may be taken by the
collector, or that the collector is definitely going to
take certain actions. [15 USC 1692c] 805 (c)
Contact me for your Cease and Desist Letter

21. 15 FDCPA VIOLATIONS
HELPFUL TIPS
1. Ask you to pay more than you owe
The collector cannot misrepresent the amount you owe. [15
USC 1692e] (2)(a)
2. Ask you to pay interest, fees, or expenses that are not
allowed by law.
The collector can’t add on any extra fees that your original
or loan agreement doesn’t allow. [15 USC 1692f] 808 (1)
3. Call repeatedly or continuously
The FDCPA considers repeat calls as harassment. [15 USC
1692d] 806 (5)

22. Violations con’t…
4. Use obscene, profane, or abusive language.
Using this kind of language is considered harassment.
[15 USC 1692d] 806 (2)
5. Call before 8:00 am or after 9:00 pm.
Calls during these times are considered harassment.
[15 USC 1692c] 805(a)(1)
6. Call at times the collector knew or should know are
inconvenient.
Calls at these times are considered harassment. [15 USC
1692c] 805(a)(1)

23. Violations con’t…
7. Use or threaten to use violence if you don’t pay the debt.
Collectors can’t threaten violence against you. [15 USC 1692d] 806(1)
8. Threaten action they cannot or will not take.
Collectors can’t threaten to sue or file charges against you, garnish wages, take
property, cause job loss, or ruin your credit when the collector cannot or
does not intend to take the action. [15 USC 1692e] (5)
9. Illegally inform a third party about your alleged debt.
[15 USC 1692c] 805(b)Unless you have expressly given
permission, collectors are not allowed to inform anyone about your debt except:
∙your attorney
∙the creditor
∙the creditor’s attorney
∙a credit reporting agency
∙your parent (if you are a minor)

24. Violations con’t
10. Repeatedly call a third party to get your location information.
The collector can only contact a third party once unless it has been reason to
believe the information previously provided is false.
[15 USC 1692b] 804(1)
11. Contact you at work knowing your employer doesn’t approve.
A collector is not allowed to contact you at work if you’ve let them know your
employer doesn’t approve of these calls. [15 USC 1692c] 805(a)(3)
12. Fail to send a written debt validation notice.
Within five days of the collector’s initial communication, they must send
you a notice including the amount of the debt, name of the creditor, and
notice of your right to dispute the debt within 30 days.
[15 USC 1692g] 809(a

25. Violations con’t…
13. Ignore your written request to verify the debt and continue to collect.
A collector can’t continue to collect on a debt after you’ve made a written request to verify the debt as
long as the request was made within 30 days of the collector’s written notice. [
15 USC 1692g] 809(b)
14. Continue to collect on a debt before providing verification.
After receiving your written dispute, the collector must top collecting on the debt until you have
received verification. [15 USC 1692g] 809(b)
15. Continue collection attempts after receiving a cease communication notice.
If you make a written request for the collector to cease communication, it can only contact you one
more time, via mail to let you know one of the following; that further efforts to collect the debt are
terminated, that certain actions may be taken by the collector, or that the collector is definitely going
to take certain actions. [15 USC 1692c] 805 (c)

26. Can Federal Benefits Be Garnished?
 NOT usually! Many federal benefits that are exempt from garnishments
include:
 Social Security
 Supplemental Security Income (SSI) Benefits
 Veteran Benefits
 Civil Service and Federal Retirement and Disability Benefits
 Service Member’s Pay
 Military Annuities and Survivors’ Benefits
 Student Assistance
 Railroad Retirement Benefits
 Merchant Seamen Wages
 Longshoremen's and Harbor Workers’ Death and Disability Benefits
 Foreign Service Retirement and Disability Benefits
 Compensation for Injury, Death, or Detention of Employees of U.S. contractors outside the U.S.
 Federal Emergency Management Agency Federal Disaster Assistance
 Federal Benefits may be garnished under certain circumstances, including : Paying delinquent
taxes, alimony, child support or student loans.

27. Dealing with a debt collector…
 Can be one of life's most stressful experiences.
Harassing calls, threats, and use of obscene
language can drive you to the edge. What's worse, a
collector may embarrass you by contacting your
employer, family or neighbors. You may even be
hounded to pay a debt that is not rightfully yours.
Sure, collection agencies have a job to do. Even so,
there are limits on how far a debt collector can go!!!
“LEARN THE GAME AND WIN!”

28. Credit Bureaus…and
Who they are….

32. The Solution is….

42. Only YOU can Invest in your Families Future!

43. To Know And Not To Do…
Is Not To Know…
And Now YOU Know!
Leo Buscaglia

44. “Protecting One Family At A Time”
Linda Martinez
562.754.3961
Go to: www.QueenOfCreditRepair.com for your Free Ebook
https://www.facebook.com/LindaMartinez.QueenOfCreditRepair.FES
Linda@FinancialHealthQueen.com

46. Video 1-"What YOU Need To Know Before YOU "FIX" Your Credit"!
Video 2 - "The Ultimate Weapon Against Debt Collectors“!
Video 3 -" A Role For Agents In The Credit Crisis“!
Presented by
Linda Martinez
FES Sales Director/Certified Credit Consultant