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Creditor Calls
Highly illegal unless given personal permission by the client or customer, creditor calls beyond the norm can be prevented by state and federal laws. But what exactly is the norm? By the time most nonpaying customers, either by choice or life's circumstances happens to receive collection creditor calls the creditor can become very ugly. For this reason, every attempt to make some sort of arrangements should be done before things get to this point, even though there are situations when the money is simply not there.
The Fair Debt Collection Practices Act (FDCPA) limits the type of legal practices that can be practiced by debt collectors, recognizing that abusive debt collection practices—such as creditor calls--actually have a lot to do with the increase in personal bankruptcies, in marital instability, in the numbers of job loss, and with invasions of individual privacy. Most people do not go into debt on purpose, or for something to do because they are bored. Many situations are at fault: lost jobs, a drop in household income, emergency situations, or death in the family of a major income source.
Creditor calls, depending on the situation, are not the only legal way debt collectors can reach their clients. They actually can contact any friend, family or employers, as long as they do not refer to the debt involved, or imply they are a debt collector. If the client has hired a lawyer, the debt collector cannot make creditor calls or personal visits, but instead is to contact the attorney only regarding the debt. If the creditor is allowed to call, they cannot call before 8 a.m. or after 9 p.m. the client's time. And the most important law to follow is that they cannot call the employer of the client, unless the client gives permission.
The real problem is that most debt collectors realize, or think, that most people cannot afford to take them to court, or have to time or energy to do so—therefore, they do many things that are illegal. But once a person files bankruptcy then the contact is in contempt of a federal restraining order, or "automatic stay". The only way a debt collector can make creditor calls after bankruptcy is if that particular debt escaped the discharge and is not on the bankruptcy list.
What spurs most debt collectors on is that most of them get about 25% of whatever is paid to them—which makes their goal a monetary one, to get a percentage of your money as part of their own income, which accounts for the cut-throat tactics used by many. In the initial stages of collection it does not matter to them whether the bill amount is correct or not, because the collectors of debts will accept the computer amount first. And besides, most of the bill notices that come in the mail are simply computer generated with no signatures involved, but instead having a signature stamp on it.
Creditor News
Adaltis Inc. Obtains Court Order for Creditor Protection (Marketwire)
MONTREAL, QUEBEC--(Marketwire - July 3, 2009) - Further to a news release issued this morning and the completion of subsequent proceedings before the Quebec Superior Court, Adaltis Inc. (TSX:ADS), an international in vitro diagnostic (IVD) company, today announced that it has obtained an Order for creditor protection under the Companies' Creditors Arrangement Act (Canada). The Quebec Superior ...
Read more...Quebecor World set to emerge from creditor protection following court approval (PrintWeek)
Quebecor World is set to emerge from creditor protection following the approval by Canadian and US courts of its business plan.
Read more...(AFX UK Focus) 2009-07-03 16:53 UPDATE 2-Adaltis seeks creditor protection (Interactive Investor)
TORONTO, July 3 (Reuters) - Adaltis Inc said on Friday it plans to file for creditor protection as the cash-strapped medical devices company struggles for survival. Montreal-based Adaltis, which warned earlier this week that it was quickly running out of money, said it would make the application in a Quebec court on Friday. "Obviously we have liquidity issues. We are unable to continue on in our ...
Read more...Adaltis Inc. Obtains Court Order for Creditor Protection (CCNMatthews via Yahoo! Finance)
MONTREAL, QUEBEC-- - Further to a news release issued this morning and the completion of subsequent proceedings before the Quebec Superior Court, Adaltis Inc. , an international in vitro diagnostic company, today announced that it has obtained an Order for creditor protection under the Companies' Creditors Arrangement Act .
Read more...Adaltis granted creditor protection (The Globe and Mail)
Toronto — Adaltis Inc., a Canadian medical devices maker, said Friday it was granted protection from its creditors by a Quebec court while it works on a reorganization plan.
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