Being in debt is bad enough, but when there are greedy companies out there actively violating U.S. federal law, committing fraud in an attempt to get money out of people who are already struggling, well, that is an OUTRAGE!
I expose the 10 worst companies for illegal debt collection practices below, as per complaints received and recorded by the CFPB (Consumer Finance Protection Bureau), a federal agency set up to protect United States citizens.
But first, let me tell you what’s coming soon! In response to the many questions from new credit repair businesses and people who want to start a business, I have created a brand new, unique package of letters for disputes and challenges. The letters that go with the book are copyright protected and are for personal use only. A business would need something different and more unique. I am putting the finishing touches on these super dynamic letters now, and they will soon be released for purchase.
Back to law violators! Look to see if you recognize any of these companies on the Hall of Shame for Debt Collectors:
- Encore Capital Group
The CFPB ordered Encore to pay $42 million to repay customers, plus a $10 million penalty, and to stop collections on $125 million worth of debt.
2. Enhanced Recovery (ERC)
3. Portfolio Recovery Associates
4. Convergent Resources
5. Transworld Systems
6. Diversified Consultants
7. AFNI /Anderson Financial Network (Specialize in working with cell phone and direct TV providers)
8. Citibank, N.A.
9. Resurgent Capital Services
10. Synchrony Financial
Thank you to RewardExpert for compiling this list. You can read their report here.
If you receive a phone call from one of these companies for a past due debt, immediately ask for their contact information (name and mailing address), then ask them to contact you by mail only. DO NOT DEMAND CEASE AND DESIST ALL CONTACT, because that gives them no recourse except to sue you in a court of law. Do not set yourself up for a lawsuit!
There is a lot of bad “info” on the Internet, such as telling people to send a Cease and Desist Letter. Next thing they know, they have been slapped with a lawsuit. Pick up a copy of Repair Your Credit Like the Pros: How credit attorneys and certified consultants legally delete bad credit and restore your good name here for the proper way to handle debts.
Excited about the new dynamic letters. Please keep me posted! I use your letters now and I love them. Thanks!
Thank you, Sharon. I will post when they’re ready. I am excited about them, because they are unique and we all know how important that is.
Hi Carolyn, I know you have asked us to not ask you questions that are clearly in the book but I don’t believe this is. Are we able to use Covid 19 as a reason to help clean up our credit? For example; we went on a Forbearance plan with one of our mortgage companies. They told us that hey would not report to the credit bureaus any late payments during that time. Well, when we pulled our credit we found that they absolutely did report to the lates to the credit bureau. How do you think we should proceed with that? Just the same way we would with any other dispute?Thank you for your great book. I’m busy doing what you recommend!Gail Thorsen
Gail, here is information on forebearance straight from TransUnion itself: https://www.transunion.com/blog/financial-hardship/mortgage-forbearance-and-your-credit
As this article says, if you see a late payment on your mortgage that does not belong there due to being in forebearance, then call the lender and ask them to correct the error immediately. Remind them of your agreement and the CARES ACT.
The CARES ACT provides special considerations and allows lenders to report payments as on time during forebearance.
I hope you have it in writing from your mortgage lender the terms of your forebearance, including not reporting you as late during that time.
Good Information. Thank you for sharing the article.
Thank you, I appreciate you commenting.