Collections

An action for breach of contract, obligation, or liability, express or implied, must be commenced within six years unless the statutory period is specifically limited by another statute. Most loan agreements, credit card debt, and payment for contracted services are governed by a 6-year statute of limitations. Under the Uniform Commercial Code, any action for breach of contract for sale of goods must be commenced within four years.

Determining when the breach of contract occurred can be difficult, depending on the circumstances. You should always consult an attorney regarding the statute of limitations that applies in your case.

A promissory note is a signed document containing a written promise to pay a stated sum to a specified person, or to the person who possesses the note, at a specified date or on demand. These documents are commonly used for mortgages, student loans, car loans, business loans, and loans between family and/or friends.

At the very least, the note should contain:

• How much money was lent
• The amount of interest charged, if any
• The type of repayment schedule

Conciliation Court, also known as small claims court, is designed to be a quicker, more informal court where parties can more efficiently pursue redress for “small claims”. Each state has varying financial caps and methods for filing suit. The attorneys at WFJ will assess your case and advise you on filing with the courts.

There are several methods of collecting money after winning a judgement, including:

• Non-earnings garnishment – garnish the bank accounts and other monies owed to or held on behalf of a judgement debtor, subject to exemptions.
• Execution against property – have a sheriff seize property of a judgement debtor, subject to exemptions, and sell it on your behalf at auction.
• Liens – a lien is created automatically on a judgement debtor’s real property in the county where the judgement is entered or recorded. A judgement lien is good for ten years and may be foreclosed upon. Homestead property is exempt.

If you hire a third-party collector (e.g. collection agency or a law firm) to collect the debt, the third-party collector is governed by the federal Fair Debt Collection Practices Act in its conduct to collect on the debt.

Practices prohibited by an original creditor attempting to collect on a consumer debt include:

• Use or threatened force or violence to cause physical harm to the customer or the customer’s dependents or property.
• Threats of criminal prosecution.
• Disclose or threaten to disclose information adversely affecting the customer’s reputation for credit worthiness with knowledge or reason to know that the information is false.
• Initiate or threaten to initiate communication with the customer’s employer prior to obtaining final judgement against the customer, except as permitted by statute. This does not prohibit a debt collector from communicating with the customer’s employer solely to verify employment status or earnings or where an employer has an established debt counseling service or procedure.
• Disclose or threaten to disclose to a person other than the customer or the customer’s spouse information affecting the customer’s reputation, whether or not for credit worthiness, with knowledge or reason to know that the other person does not have a legitimate business need for the information. This does not prohibit the disclosure to another person of information permitted to be disclosed to that person by statute.
• Disclose or threaten to disclose information concerning the existence of a debt known to be reasonably disputed by the customer without disclosing the fact that the customer disputes the debt.
• Communicate with the customer or a person related to the customer with such frequency or at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the customer.
• Engage in other conduct which can be reasonably expected to threaten or harass the customer, or a person related to the customer.
• Use obscene or threatening language in communicating with the customer or a person related to the customer.
• Claim, or attempt or threaten to enforce, a right with knowledge or reason to know that the right does not exist.
• Use a communication which simulates legal or judicial process or which gives the appearance of being authorized, issued, or approved by a government, governmental agency, or attorney-at-law when it is not.
• Threaten action against the customer unless like action is taken in regular course or is intended with respect to the particular debt.
• Engage in conduct in violation of rules adopted by the administrator after like conduct has been restrained or enjoined by a court in a civil action by the administrator against any person pursuant to the provisions on injunctions against false, misleading, deceptive unconscionable agreements or conduct.
• For Creditors- WFJ can send demand letters which comply with the FDCPA once we are provided with proof of the debt.
• For Debtors- WFJ can send FDCPA verification requests/dispute the debt on their behalf.