Hutchinson Kansas debt collector National Credit Adjusters, LLC, which has offices in Arizona, refuses to pay a valid federal court judgment entered against it and in favor of an Arizona consumer.

National Credit was sued for violating the federal Fair Debt Collection Practices Act, or FDCPA, when it attempted to collect on an internet payday loan which was void under Arizona law. The payday lender, Plain Green, LLC, offered internet payday loans to Arizona residents. However, the Arizona law which permitted payday loans expired on June 30, 2010, making all payday loans made after that date to Arizona consumers void and uncollectible. 

National Credit Adjusters failed to defend the lawsuit and the judge entered a default judgment against the collection agency. Even though several demands have been made to National Credit to pay the judgment, it has refused.

Once again, the collector now becomes the collected!

If you are receiving collection calls from National Credit Adjusters, LLC concerning a payday loan, you should seek the advise of a consumer lawyer who has extensive experience in these types of cases.

For a free phone consultation, please contact Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 .



FDCPA Requires Notice Prior to Bank Withdrawal

FDCPA Requires Collection Agencies to Give Consumer Notice Prior to Taking Monthly Withdrawals From Bank Account

Many consumers enter into payment agreements with collection agencies where the agency will take month payments from the consumer's bank account to pay off the debt. However, in order to take these automated and post dated payments, the collection agency must first sent written notice not more than 10 nor less than 3 business days before the withdrawal. So if a payment is scheduled to come out on the 15th of the month, the agency should be sending a letter sometime between the 1st and the 10th of the month. Most important, is that the debtor be given sufficient notice to make sure funds will be available in the bank account, and if they are not, sufficient time to notify the agency to not take the withdrawal.

Failure to Give Proper Notice of an Automatic Withdrawal Violates the FDCPA

A collection agency or law firm which fails to provide a debtor with adequate notice of an upcoming withdrawal from a bank account violates the Fair Debt Collection Practices Act, or FDCPA. The FDCPA provides consumers with claims for damages for these types of violations.

Arizona Consumer Sues National Credit Systems, Inc. for Failure to Give Written Notice Prior to Taking Automatic Bank Withdrawals

My office recently filed suit in Federal Court alleging National Credit Systems, Inc. failed to provide notice adequate notice to the debtor prior to taking out pre-authorized monthly debits from her bank account. Such failure to give proper notice violates the FDCPA. 

Client Services, Inc. Sued for Debt Collection Abuse

Arizona Consumer Sues Client Services, Inc. for Debt Collection Abuse

My office recently filed suit against the Missouri collection agency Client Services, Inc. for violations of the Fair Debt Collection Practices Act or FDCPA. The suit alleges that Client Services sent a letter demanding payment of over $147,000 for a Citibank credit card account which had a ending balance of less than $17,000 ten years earlier. When the debtor disputed the debt and demanded verification, Client Services sent copies of several old Citibank billing statements which showed less than $17,000 was owed.

Right To Dispute Debt

Under the FDCPA, a consumer has the right to challenge the debt by sending the collection agency a dispute letter and requesting verification the debt. If this is done within 30 days of the receipt of the initial letter from the collection agency, the agency is required to stop all collection activity until it provides validation and verification of the debt. That is what the debtor did in this case. He demanded that Client Services provide proof that he owed $147,000 as claimed in Client Services' initial letter. However, Client Services only provided statements showing $17,000 was owed, not $147,000. 

FDCPA Prohibits Collection Agencies from Collecting Amounts Not Owed

A collection agency cannot collect or attempt to collect any amount which is not owed under the contract, or which is not provided for by law. Sometimes, agencies add extra fees, or interest which is not allowed by the underlying contract, and or not allowed by law. If an collection agency attempts to collect these "forbidden fees," they are in violation of the FDCPA and the consumer has a right to collect damages for the agency's illegal actions. The suit alleges Client Services, Inc. attempted to collect amounts which were not owed, thus violating the FDCPA.

Asset Acceptance LLC Sued Arizona Consumer for Navy Federal Credit Union Account which is Past the Statute of Limitations

Recent client inquiries reflect that Asset Acceptance LLC, a large national debt buyer who claims to have purchased a large portfolio of debts originating with the Navy Federal Credit Union, is suing Arizona debtors on these debts. In a recent case I investigated, it appears that the Navy debt is well beyond the applicable statute of limitations in Arizona for credit card debt which is now 6 years. Calls from other Arizona consumers confirms this may be happening on a regular basis.

Despite the underlying debt being stale (past the statute of limitations), Asset has filed suit using one of its Arizona law firms Fulton, Friedman & Gullace. It is common knowledge that many debt buyers file suit hoping that Arizona debtors will ignore the law suit and the debt buyer will obtain a default (meaning uncontested) judgment. Once the judgment is entered, the claim becomes valid and the debt buyer can garnish wages or bank accounts to collect the debt.

Not only are these stale debts completely defensible, the federal Fair Debt Collection Practices Act (FDCPA) prohibits such actions. Under the FDCPA, an Arizona consumer wrongfully sued by Asset can seek recovery of damages from the illegal lawsuit.

Protect Your Rights. If you are an Arizona consumer who has been sued by Asset Acceptance LLC on a Navy Federal Credit Union account, please contact Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation.

Commercial Recovery Systems, Inc. Sued for Harassing Arizona Consumer

My office recently filed suit under the federal Fair Debt Collection Practice Act or FDCPA against Commercial Recovery Systems, Inc. (“CRS”) for calling and harassing an Arizona consumer over a debt which was beyond the statute of limitations. The complaint alleges that the debt is stale and beyond the Arizona statute of limitation to collect by legal action, yet CRS telephoned and threatened this Arizona debtor with legal action, including threats of wage garnishment, freezing of her bank account, taking her income tax refund, and placing a lien on her current vehicle if she did not pay.

The FDCPA protects Arizona consumers from these types of threatening calls from collection agencies. In this case CRS’s alleged actions are even more egregious since the collector’s manager got on the phone and confirmed that these actions would in fact be taken unless the account was paid.

If you are an Arizona consumer who is receiving harassing or threatening collection calls from Commercial Recovery Systems, Inc. or other collection agency, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see what your rights are.

Northland Group Incorporated Sued for Collecting on Settled Debt

In December 2012, my office filed suit on behalf of an Arizona consumer who had previously settled her debt through Northland Group, and who was then subsequently contacted by Northland to collect on the same settled debt.

The Fair Debt Collection Practice Act or FDCPA protects Arizona consumers from receiving collection activity on an account which is not owed. In this case Northland’s actions are extra egregious since the account was settled through it and it knew that nothing more was owed on the account.

If you are an Arizona consumer who is receiving collection calls or letters on an account that you do not owe, or one that was previously settled, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if I can help you.


Midland Credit Management, Inc. Continues Collection of Accounts from Arizona Debtors after Receiving Notice of Bankruptcy Filing.

Midland Credit Management, Inc., the sister company to Midland Funding, LLC, seems to have made it a regular practice to ignore the notices it and Midland Funding, LLC receives from the bankruptcy court so that it can continue to collect against Arizona consumers. Midland’s actions are illegal.
Arizona Debtor Sues Midland Credit Management, Inc. in Arizona Federal District Court for Harassing Phone Calls.

In December 2010, I filed a suit under the Fair Debt Collection Practices Act or FDCPA against Midland Credit Management on behalf of an Arizona consumer who, after filing bankruptcy, continued to receive numerous harassing telephone calls from Midland.  Midland ignored the consumer’s efforts to tell the collector that she had filed bankruptcy and that she had an attorney.  Midland continued to collect on a debt that she had included in her bankruptcy.
Before the calls began, Midland Credit Management and Midland Funding, LLC had received two notices from the bankruptcy court of the consumer’s bankruptcy filing.  One notice was mailed to Midland by the bankruptcy court, and the other was electronically send by the court.  Both notices informed Midland that the debtor was represented by a lawyer, and thus it was illegal for Midland to directly contact the consumer and to attempt to collect the debt.
Arizona Consumer Sues Midland Credit Management, Inc. in Arizona Federal District Court for Contacting Her after She Had Filed Bankruptcy and Knowing She Was Represented by a Lawyer.

In the second case, Midland Credit Management, Inc. had received two electronic notices from the bankruptcy court in early November 2010 of the consumers’ bankruptcy filing.  Despite these notices, Midland sent two letters, one in November and one in December, directly to the wife demanding payment on an account it claimed was owed.  Midland also directly sent the husband a letter in January 2011 on another account that was in his name only.
FDCPA Prohibits Direct Communication with a Consumer it Knows Is Represented by a Lawyer.

The Fair Debt Collection Practices Act or FDCPA protects Arizona consumers from debt collectors communicating directly with them once they have hired a lawyer.  So, any Arizona debtor who files bankruptcy using a bankruptcy lawyer should not receive any direct contact from a debt collector.  And, if a debt collector does contact the consumer directly, then the creditor would be in violation of the FDCPA.
If you are an Arizona consumer who has filed bankruptcy using a lawyer, and has been contacted by a debt collector after the bankruptcy, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see if I can help you.

Arizona Federal Court finds Gurstel Staloch & Chargo Violated FDCPA.

In a recently published decision, a federal Magistrate Judge for the District of Arizona found that Gurstel, Staloch & Chargo, P.A., now known as Gurstel Chargo, P.A., now known as Gurstel Law Firm, P.C., violated the Fair Debt Collection Practices Act (“FDCPA”) because it failed to ceased communications with the consumer after she notified Gurstel both verbally and in writing that she was represented by a lawyer.  The Court also found that Gurstel violated the FDCPA by continuing to contact the consumer after she notified the firm that she disputed the debt, refused to pay, and demanded that Gurstel cease all communications with her.

A copy of the decision can be reviewed here.

If you have sent a letter (certified return receipt requested) to a debt collection company telling it that you refuse to pay the debt, or that you want it to stop contacting you, but they continue to call and / or write you, then it is violating the FDCPA as Gurstel did in this case.  You would be able to sue the collection agency and recover damages.

If you are an Arizona consumer being harassed or threatened by a debt collector or junk-debt buyer regarding a consumer debt, I can help.  Please call Floyd W. Bybee at 480-756-8822

Arizona Consumer Sues Portfolio Recovery Associates for Collection Harassment

My office recently filed suit on behalf of an Arizona consumer under the federal Fair Debt Collection Practices Act (FDCPA) against Portfolio Recovery Associates, LLC out of Norfolk, Virginia. Portfolio Recovery is one of many companies known as “Debt Buyers” or “Junk Debt Buyers.” These debt buying companies purchase blocks of debts which are charged off by the original creditors and sold for pennies on the dollar. The debt buyers then try to collect the debts sometimes using collection tactics which violate federal law.

For instance, the Arizona Consumer in this suit alleges that Portfolio Recovery repeatedly called her at work after being told that she cannot accept personal calls at work. They even left a message on one of her co-worker’s voice mail to “pass along” to the debtor.

The FDCPA prohibits debt collectors, including these “Debt Buyers” or “Junk Debt Buyers,” from calling an Arizona consumer at her place of employment if the debt collector knows or has reason to know that the consumer’s employer prohibits the consumer from receiving such calls.

The FDCPA also forbids debt collectors from contacting third parties, including co-workers, friends, family, and neighbors, except to obtain location information. Calling and leaving a message with a co-worker or other third party is not done with the intent to obtain location information — its to done to harass the Arizona debtor and perhaps embarrassment them into paying a debt they either do not owe or one that they cannot afford to pay at this time.

I have filed many lawsuits over the past several years against collection agencies who participate in these types of illegal collection activities.

If you are an Arizona consumer who has been subjected to these types of collection harassment, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation.

Arizona Debtors Sue Collection Agencies For Collection Harassment

Are you an Arizona consumer being harassed by a debt collector? Are collection agencies calling you at work or calling your family, friends or neighbors?  

Federal law prohibits collection agencies from harassing or abusing Arizona debtors. Even if a debt is owed and not disputed, the federal Fair Debt Collection Practices Act or FDCPA prohibits collection agencies from engaging in any harassing or abusive conduct.  It also prohibits a debt collector from making false representations to Arizona consumers to coerce payment of a debt.   

Arizona consumers are entitled to file a lawsuit against any collection agency who violates the FDCPA and to recover damages, including statutory damages of up to $1,000.00. Arizona attorney Floyd W. Bybee, of the BYBEE LAW CENTER, PLC, has represented hundreds of Arizona consumers in actions against debt collectors for violations of the FDCPA.

If you are an Arizona consumer who is the victim of collection harassment or abuse, please call Mesa, Arizona lawyer Floyd Bybee at (480) 756-8822 for a free phone consultation.