In January 2014, the Minnesota Attorney General, Lori Swanson, commenced a lawsuit to punish the debt collectors Bradstreet & Associates for unfair and illegal debt collection practices.
What was illegal about their methods?
They had been buying debts from banks based on overdraft fees and then charging interest on the overdraft fees.
A collection agency can charge interest on the debts they are collecting, but only if there was interest attached to the original debt.
Overdraft fees don’t have interest, so anyone trying to collect on an overdraft fee should not be charging interest.
WHAT DOES THIS LAWSUIT OVER ILLEGAL DEBT COLLECTION HAVE TO DO WITH BANKRUPTCY?
The lawsuit shows you that the other side is not playing fair.
We have all been told our whole life that we must always pay any debts, and any charges attached to those debts.
We are told that only a bad person lets a debt go unpaid.
But look what creditors are doing! They are charging exorbitant interest that they have no right to charge, and then telling the borrowers that the borrowers are bad people because they haven’t paid it back.
This is illegal debt collection.
Have you ever received a collection call that asked you to “make this right?”
The same people who are telling you that you need to “take care of this” have been illegally charging interest the whole time and even use the court system to get judgments giving them this interest.
The courts have not been checking to see whether the collection company actually has the right to charge you interest.
Does that sound fair?
BANKRUPTCY STOPS COLLECTION
As soon as you file bankruptcy the shoe is on the other foot.
- You don’t have to prove where each debt came from
- You don’t have to explain why you couldn’t afford a repayment plan
Bankruptcy just works.
It is one of the few legal processes that works for ordinary people, and can really help you get out of debt and get a fresh financial start.
WHAT TO DO NEXT
Remember, the other side is not playing fair, and you don’t owe them anything
If you’re receiving calls like this, and want to file for for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota, then why not not speak to us now at 612.824.4357?
We’ll give you all the help and advice you need.
We’re looking forward to helping you.
Photo Credit: © R. Gino Santa Maria