Federal Courts: Foreclosures Must Comply with FDCPA

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Federal Courts: Foreclosures Must Comply with FDCPA

If you are in the middle of a foreclosure proceeding at some point there’s a good chance you’ll stop receiving notices from your bank. Instead, you’ll be receiving notices from whatever foreclosure attorney represents your bank as they move through the steps required to relieve you of your home.

Though it has been a hotly contested issue for some time, a recent court case has put an end to the debate.

“A federal judge has ruled that debt collection law firms are subject to the rules of the Fair Debt Collection Practices Act in cases dealing with mortgage foreclosures.

U.S. District Judge Timothy J. Savage of the Eastern District of Pennsylvania denied a motion by law firm Phelan Hallinan Diamond & Jones seeking to dismiss plaintiffs Tina Collins and Glendale Walker’s FDCPA claim, which alleged the firm failed to –cease all collection activity before verifying the debt after the plaintiffs first disputed it.” –The Legal Intelligencer

See also: What Philadelphia Residents Should Know About the FDCPA.

Note: an FDCPA claim is not necessarily going to save your home. It only entitles you to remedies which exist for you under the FDCPA. This includes your right to sue and collect damages if you win the suit. However, as your Philadelphia foreclosure attorneys we do want to know about any instance you feel may represent foreclosure attorneys violating these laws as they pursue the foreclosure.

We also urge you to keep every notice you receive. Ideally, you’d retain us as soon as you knew you were in trouble so we could handle all return correspondence, and keep the records which might provide evidence of your claims. Proper notification letters are a big part of meeting obligations under the FDCPA, and if we have a chain of correspondence we may be able to prove certain obligations were left unmet. This is what happened during the most recent court case.

We do have other remedies to keep you from being foreclosed upon, up to and including bankruptcy, which truly can save your home if you move quickly enough. In addition, violations of the FDCPA may at least provide us with a negotiating tool we can use to put you in a better position.

Remember, your initial consultation with us is absolutely free, and because we are aware you are dealing with some intense financial problems we are happy to work out a payment plan to help you as well. Don’t lose your house. Let us be your advocates and your guides.

 

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