Debt Collection Law

Modern Debt Collection Law has evolved to address the digital era, mandating that collectors provide a clear and simple method for consumers to opt out of electronic communications. The law now recognizes that persistent digital contact can be just as harassing as traditional phone calls, leading to stricter enforcement of communication frequencies. We perform a forensic audit of every communication received by our clients, identifying the specific violations of these digital mandates that can be used as leverage in settlement negotiations.

Regulation F imposes strict recordkeeping requirements on debt collectors, forcing them to maintain a detailed history of every attempt to communicate and every dispute filed by the consumer. If a collector cannot produce these records during litigation, they face a functional presumption of non-compliance. At SJKP LLP, we utilize these technical voids to challenge the credibility of the collector, proving that their failure to follow administrative mandates mirrors their failure to verify the underlying debt.

The 7/7/7 rule prohibits a debt collector from placing a telephone call to a consumer more than seven times within seven consecutive days or within seven days after having a telephone conversation about the debt. This is a clear regulatory boundary that, when crossed, creates a cause of action for harassment. We assist our clients in documenting these call frequencies with forensic precision, providing the court with the evidentiary logs needed to secure statutory damages and cease all further contact.

Harassment is defined not only by the frequency of contact but also by the nature of the communication, including the use of profane language or the public disclosure of debt to third parties. Under Debt Collection Law, a collector may not contact your employer or neighbors for anything other than basic location information, and even then, they may not reveal the existence of a debt. We monitor every interaction for these "leakage" events, utilizing them as a primary weapon to dismiss the collection action and protect our clients' reputations.

Any statement by a collector that implies non-payment will result in imprisonment or the immediate seizure of property without a court order is a violation of federal law. These threats are a desperate attempt to gain leverage when the collector lacks the documentation to win in court. We treat these threats as high stakes violations, filing counterclaims for damages that often exceed the value of the original debt. This strategic defense turns the predator into a defendant, forcing them to pay for their attempt to bypass the rule of law.

Misrepresenting the amount of the debt, including the addition of illegal fees or interest not authorized by the original contract, is a core violation of Debt Collection Law. Collectors often attempt to "inflate" the balance to account for their own administrative costs or to pressure the debtor into a larger settlement. We perform a forensic financial audit of the original loan documents, identifying these unauthorized charges and using them to invalidate the entire collection effort. A creditor who cannot accurately state the debt cannot legally collect it.

The moment you receive an initial notice from a collector, the clock begins on your right to demand validation. This is a critical jurisdictional window that must be utilized to preserve your defenses. If you fail to dispute the debt within this period, the court may assume the debt is valid, making a future defense significantly more difficult. We manage these filings with absolute rigidity, ensuring that every claim is contested from the first day to prevent the administrative "ratification" of a false debt.

In the secondary debt market, portfolios are sold and resold dozens of times, often resulting in the loss of the original signed contract or the specific assignment records. If a collector cannot prove that they have the legal right to collect your specific debt, they have no standing to sue. We specialize in deconstructing these "broken chains of title," proving to the court that the plaintiff is a legal stranger to the transaction who has no right to a judgment.

Verification requires more than just a computer printout of a balance; it requires a copy of the original signed agreement and a full accounting of all payments, credits and interest accruals. Most third party collectors possess only a "data file" and cannot produce the actual evidence. By demanding legal grade verification, we force the collector into a position where they must either produce the impossible or dismiss the case. SJKP LLP ensures that the evidentiary standards are held to the highest level, protecting our clients from unverified and fraudulent claims.

Some states have adopted versions of the FDCPA that apply even to original creditors, a significant expansion of rights since federal law primarily targets third party collectors. These state laws often provide for higher statutory damages and the recovery of attorney fees for the debtor. We perform a jurisdictional audit of every case, identifying the specific state laws that provide our clients with the maximum possible leverage over the creditor. This localized approach ensures that no defensive opportunity is overlooked.

Every debt has an expiration date, after which the creditor loses the right to sue for recovery. This period varies by state and by type of debt but generally ranges from three to six years. If a collector attempts to sue on a "time-barred" debt, they are violating Debt Collection Law and exposing themselves to a counterclaim. We act as a formidable barrier against these "zombie debt" collectors, utilizing forensic records to prove that the debt is legally dead and must be dismissed.

State laws define which assets are "exempt" from seizure, often including a primary residence, a vehicle and a portion of your wages. These exemptions are designed to ensure that a debtor can maintain a basic standard of living even after a judgment. We provide the authoritative oversight needed to file for these exemptions, protecting your most valuable assets from the reach of the court. By utilizing these state-level protections, we ensure that the Debt Collection Law is used as a shield to preserve your estate rather than a weapon to dismantle it.

You typically have only twenty to thirty days to file a formal "Answer" to a collection lawsuit. Failure to do so is a functional surrender of your rights. An Answer must address every allegation in the complaint and assert every available defense, such as the statute of limitations or a lack of standing. At SJKP LLP, we move with tactical speed to file litigation resistant responses, stopping the creditor's momentum and shifting the burden of proof back to the plaintiff.

During the discovery phase, we have the right to demand that the creditor produce every document they have regarding the debt, including their internal collection notes and the "purchase agreement" from the original lender. This is where most collection cases collapse. If the creditor cannot provide the documents, or if the documents show a pattern of harassment, they will often dismiss the case rather than face a trial. We utilize discovery as a forensic weapon to expose the voids in the creditor's case and the violations of Debt Collection Law.

A pending lawsuit creates an opportunity for a "litigation-resistant" settlement. When a creditor realizes that they face a contested trial against an aggressive law firm, they are significantly more likely to accept a fraction of the debt to avoid the cost of litigation. We manage these negotiations from a position of dominance, utilizing the creditor's procedural failures and the risk of statutory damages as leverage to secure the deep discounts our clients deserve. This strategy turns a legal crisis into a permanent financial resolution.

It is common in the secondary debt market for a debt to be sold to multiple collectors simultaneously, leading to "double collection" efforts. Furthermore, payments made to one collector may not be properly credited when the debt is sold to another. This results in a functional fraud where the debtor is asked to pay for a debt that has already been settled or is significantly lower than claimed. We utilize forensic accounting to track every dollar, ensuring that your record is accurate and that no fraudulent claims are allowed to stand.

Without the original contract, the creditor cannot prove the terms of the debt, including the interest rate, late fees or the debtor's consent to arbitration. In many cases, the original lender has long since destroyed these records, leaving the debt buyer with nothing but a spreadsheet. Under Debt Collection Law, a spreadsheet is not a contract. We force the creditor to produce the "best evidence," and when they cannot, we move for an immediate dismissal of the case. SJKP LLP ensures that the court does not accept unverified data as legal proof.

Even if a creditor is not a "debt collector" under the FDCPA, they are still subject to the Unfair, Deceptive or Abusive Acts or Practices (UDAAP) provisions of the Consumer Financial Protection Act. This means that original lenders, such as banks and credit card companies, can still be held liable for deceptive collection methods. We perform a total audit of the creditor's conduct, identifying these "unfair" practices and using them as a basis for a regulatory complaint or a defensive counterclaim. This expanded protection ensures that no creditor is above the law.