Hello. My name is John Watts. I am an Alabama Consumer Protection Attorney and this is part of our continuing series on answering questions. The question we will answer today is how does the Fair Debt Collection Practices Act or the FDCPA, apply to my mortgage company? Here is what the FDCPA regulates or governs. It says if you have a debt collector and you are dealing with a personal debt and not a business debt, then the FDCPA will… (Read more)
Yes often the FDCPA applies to your mortgage company. Here’s a recent question: “I read that the FDCPA, the Fair Debt Collection Practices Act, does not apply to a mortgage company. Is that true?” It depends. Your mortgage company must be a debt collector for the FDCPA to apply and give you protection. Let’s walk through an example to illustrate this point — if the mortgage company gets the loan and it is not in default, then not a debt… (Read more)
What do I do if Nationstar is showing up on my credit report but I don’t have a mortgage in my name. It’s in my spouse’s name only.
What do I do if Nationstar is showing up on my credit report but I don’t have a mortgage in my name. It’s in my spouse’s name only. So, this is something that we see quite often and it’s when a mortgage company, for example NationStar, gets a loan and they will start collecting against you even if you are not on the loan. I’ll use myself as an example. So, if my wife is the only one on the… (Read more)
What do I do if I have paid a medical bill, but it gets turned over to a debt collector and ends up on my credit report?
First of all, if you paid the bill and then it goes to a collector, that shouldn’t happen because there’s nothing to send to the collector. We don’t send zero dollar bills to a debt collector. So if it has gone to a collector, then something has gone wrong and it may very well be that the debt collector has violated the FDCPA (Fair Debt Collection Practices Act) law. “How will I know if a paid for medical bill has… (Read more)
It is normally a great idea to talk to collectors on the phone (we cover in depth how to talk to collectors) but if you communicate in writing, our strong suggestion is you must do it by certified mail. If you are not going to do that, then you are just wasting your time. The reason is, you can have the greatest dispute letter, validation letter, cease and desist letter, etc. but if when the debt collector gets it, looks… (Read more)
The short answer is yes. There are two laws involved in false credit reporting by a debt collector: the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. If a debt collector knows or should know that he is reporting false information, he violates the FDCPA (Fair Debt Collection Practices Act). The FDCPA only applies if the collector is subject to this law. Three basic requirements: It must be a consumer debt, rather than a business debt. You… (Read more)