15 Sep Debt collectors using auto-dialers face BIG fines

- Making a collection call to a cell phone belonging to the debtor or any third party
- Making a collection call to any telephone number not belonging to the debtor
As a bankruptcy lawyer, I'm often contacted by folks who ask, "Should I marry someone who is about to file bankruptcy?" Understandably, they don't want to be on the hook for the debts of their future spouse. But then there's love. He makes her heart go...
In the typical arrangement, the companies direct consumers to set up special accounts and stock them with monthly deposits while skipping their credit card payments. Once balances reach sufficient size, negotiators strike lump-sum settlements with credit card companies that can cut debts in half. The programs generally last two to three years.The problem, however is this:
What they don’t tell their customers is when you stop sending the money, creditors get angry,†said Andrew G. Pizor, a staff lawyer at the National Consumer Law Center. “Collection agents call. Sometimes they sue. People think they’re settling their problems and getting some relief, and lo and behold they get slammed with a lawsuit.Further, "the industry’s own figures show that clients typically fail to secure relief. In a survey of its members, the Association of Settlement Companies found that three years after enrolling, only 34 percent of customers had either completed programs or were still saving for settlements. According to one debt settlement executive quoted by the Times, the entire industry is like a "Ponzi scheme."
Filing for bankruptcyand filing for divorce often go hand in hand. This is unfortunate, but the news isn't all bad. I believe that filing for bankruptcy can actually help save some marriages by eliminating overwhelming debt, which is a a major source of stress that causes...