In 2012, a group of debtors filed a class action lawsuit against a Santander Consumer USA Holdings Inc., a Dallas-based debt buyer specializing in auto loans. Santander had bought the debtors' loans from other holders and was attempting to collect them. The debtors claim Santander was violating the Fair Debt Collection Practices Act by bypassing some debtors' attorneys and by misrepresenting how much some debtors owed.
Credit reporting companies are designed to provide businesses, landlords and others with information about potential consumers. They are supposed to be helpful, but in some cases they can cause a great deal of harm.
Collection companies are allowed to contact consumers and request payment, but within reason. Regulations on what is and is not allowed were passed in 1977 under the Fair Debt Collection Practices Act. This law was passed with the intention that it would serve two purposes:
Most people feel bad when they cannot pay their bills. The situation is already stressful. Adding to that stress, are the harassing phone calls from debt collectors that seem to have no mercy. However, there are many ways to stop creditor harassment. One man is fighting back through a legal action, but Chapter 7 Bankruptcy is also an option for many.
Those facing financial challenges, and even bankruptcy, are often all too familiar with the steps creditors take when trying to seek repayment of credit card debt or other delinquent loans.