Phantom debts are debts that are not owed by the consumer at all. For many consumers however, phantom debts become a reality. They may not owe any debt but get debt reminder calls and messages nevertheless. This is one of the major complaints consumers make regarding debt collection and is a legal offense under the consumer protection laws.
The Recent Case
Most recently, the U.S. Federal Trade Commission has sued a debt collector operating under the name of Lombardo, Daniels & Moss, LLC. The case has been filed in August 2017 in the US District Court for the district of North Carolina for the division Charlotte. It clearly says that the defendants engaged in abusive and unlawful collection practices. Some of these practices include:
- Consumers were defrauded through the use of other names and not just Lombardo, Daniels & Moss, LLC. This has been going on since the year 201.
- Consumers were pressured into paying the debts by telling them that they were delinquent on their loans and would be sued or have their bank accounts frozen, etc. In some of the cases, consumers were also told they could make payments through their credit cards.
- Consumers were threatened with potential arrest or allegations of bank frauds as a way to pressure them into paying.
- Collectors of the defendants used abusive language when talking to consumers. This was done with the intent of pressuring them into paying.
- Numerous phone calls were made to consumers at their work phones, cell phones, and home phones, at several times during the day, including after 9 p.m. at night.
- In many cases, consumers were not informed they were talking to debt collectors.
Laws Protecting Consumers Were Violated
The Fair Debt Collection Practices Act (FDCPA), the Telephone Consumer Protection Act (TCPA), and the Federal Trade Commission Act (FTC Act) have guidelines on how debt collectors must behave when making collections.
All the above-mentioned practices violated these consumer protection law guidelines in several ways, some of which are outlined below:
- Calling consumers without identifying themselves as debt collectors
- Calling consumers on their cellphones and at their workplace without consent
- Abusing them and threatening them with legal action
- Calling them at any time of the day; calling several times in the day
- Pressuring consumers into paying loans by taking credit, etc.
- Misrepresenting facts and misinforming consumers through deliberate or willful non-communication
Consumers are entitled to compensation for trauma faced as a result of harassment through unlawful debt collection practices. This compensation can range from $500 to $1500, if willful violations are proved.
Why You Need Help
The case in question highlights the need for the consumer to be informed and aware. The FTC has announced a $9.39 million settlement with yet another company for using similar deceptive practices and making consumers pay up.
However, the only way in which such deceptive practices can be contained is when consumers get more serious about protecting themselves and their interests. If you or someone you know is getting calls for debt collection, get in touch with a lawyer or attorney who can help you understand your situation. Whether it is about confirming the loan/debt owed or ensuring harassment stays at bay, a professional can help you understand the situation better to deal with it effectively.
Legal Rights Advocates, PLLC is a law firm that helps clients who are facing harassment from debt collectors in any form, including telephone calls, texts, etc. Our team of attorneys, over the years, has helped countless clients get protections from debt collection practices that are deemed as unlawful and illegal.
If you are interested in learning more about how to safeguard yourself better from debt harassment , call us at (855) 254-7841 for immediate assistance.
(855) 254-7841
(855) 254-7841
