Alex: Hey everybody, welcome back to another
episode of Debt Collection 101 here on
Arbeit U. Spencer: Yes we have a great episode
today. We have a guest. We love the guest
episodes. We have a great guest today. You
can see her at the bottom of our
screen probably right now. She joins us
via Slack or Skype or whatever. It's
Monica Littman from the office of
Fineman Krekstein & Harris. I do that
right? Monica: Yes. Spencer: Perfect it's a 50/50 chance if I get
that right sometimes. Alex: Practicing all
morning. Spencer: Yeah, so I guess let's start by
telling anyone who doesn't know about
you. We meet you at those ACA shows all
the time. You're very active. You travel
across the country to go to these things
so that's where we connected with you
for those who don't know who you are
tell them a little about yourself. Monica: Sure, I'm an Attorney at Fineman Krekstein & Harris.
Like you said we're a law firm in Philadelphia, Pennsylvania. We do a lot of dissent oriented work
and also provide compliance advice for a number of collection agencies in our industry.
I'm currently serving as the Philadelphia Attorney state chair in ACA
I've also been recently elected to the board of the Mid-Atlantic Collectors Association.
Spencer: Oh, awesome. Alex: Congrats. Spencer: Alright. So let's get into it I
guess, right? Alex: Well, so how'd you get into
the collection space?
Monica: Well, I came to the firm from another firm a couple years ago.
and I just kind of ended up in this department
and it fits well with my skill set.
It's a good chance to get into federal court a lot
and get a lot of experience that way and I've enjoyed it and
as you said getting to go to the
conferences and conventions. It has
been a new experience and a good
experience to meet a lot of people and
learn more about our industry. Spencer: And
now out of curiosity what were you in before
collections? Monica: I did employment work. I was in employment defense work
so still representing companies. So representing the employer.
Spencer: Okay cool, so what would be your advice for a collections agency say they just received a
lawsuit. What's like the best first step for them to take? Monica: The Best first step to take is call your lawyer.
Yeah great tip from a lawyer. Call your lawyer.
Monica: Call your lawyer. Because... The important thing is when you get served when a lawsuit deadlines
In court start ticking right away. And it's important so that your lawyer gets them so you can
calendar those deadlines and evaluate your potential strategy
and how long you have before either you have to respond to the complaint.
Maybe you want to file a motion to dismiss the complaint.
Maybe the compliant was filed in State Court and you want to remove it to Federal Court.
And there's different rules and timings for doing that.
Or maybe you want to explore and try and get the case resolved and have
settlement negotiations and all that starts day one when you get served. Not at the very end when you're
right up against a court deadline. So it
just gives you more options and you know and
call your lawyer talk about strategy. That's the best thing you can do.
Alex: Cool, Yeah, so I'm sure there's a lot reasons
but generally speaking what are
the most common reasons consumers file
lawsuits against collection agencies
Monica: There's two ways to look at that question.
One is from the perspective of the consumer.
Why does he or she file a lawsuit.
and that will usually happen because the consumer is angry
for various reasons they got a phone call
they didn't like. There's something that
they believe is impacting their credit report. They're just unhappy but the other reason that lawsuits get filed
is because when an attorney files a
lawsuit and
those reasons are a little different. The
consumer's attorney may be looking for
often technical perhaps violations of
the FDCPA. Looking at language in a
letter or what was said on the
telephone call so again it's important
that collection agency has their
telephone scripts and letter
templates reviewed by lawyers or in
compliance officers you know and they
should always be aware
that the attorneys are either listening to
calls and also looking at the letters
as another audience when coming up
with your telephone scripts or letters.
Yeah so there's... I mean there's probably like
when a consumer files a lawsuit for the
most part it's you said because they're
angry, right? So there's there's often
steps collection agencies can take before
getting to that level, right? so is it normally like the first
contact with a consumer and they
contacted them like a handful of times
and those conversations haven't gone
well and that results in the consumer
suing yeah cool so what are some things
that collecting she could possibly do to
avoid generating that lawsuit in the
first place
that are up-to-date that are reviewed on
an ongoing basis and working with either
in health council or external counsel to
always make sure that you're on top of
the case laws as you know there are
decisions that come out on the house
ECPA all over the country every day I
try to stay on top of them and reading
updates on emails almost every day about
about what's coming out of the trends or
litigation strategies Duncan it's
important because like I said it can
come from all over the country so it's
important to see you know what the
judges in certain areas of thinking of
card looking at or like pattern or genu
trends but it does what one of the
reasons the industry I find is really
interesting because there is so much
that goes on on a daily basis and
just when you think things are and
that's that's the amazing thing is like
you'll have one core in one district in
one judge say something one thing and
then somewhere else they say something
like the exact opposite of that
Monica: Yeah, that's correct.
Spencer: What advice do you give an agency to navigate that?
Monica: That's a good question. that's what some of our clients ask as well.
The Important thing is to stay on top of it and know
you know in the different areas where there are different changes in the law.
It's been in the news lately that laws in California are very different than laws back here on the east coast
So again, go speak with your lawyer to make sure that you're doing everything should
and sometimes
it's important to remember that even if
you have done everything and you do get
sued it doesn't necessarily mean that
there has been a violation but it's just
important to keep going and again just
keep your compliance procedures up to
date. Alex: I don't know if
you have a top one but what's the thing
that you see agencies I guess screwing
up the most on their end. You know is there a one thing that's like
wow you know most agencies do this
Monica: I don't think there's a one thing.
I think that kind of the opposite way. A different way of answering your question
or what I would think of is often in our industry is the consumer's attorney.
You'll see trends of different types of
lawsuits and they say we're gonna
well not that but you'll be a
different lawsuits. For example there's
lawsuits now where they
challenge the name of the creditor that
was listed in the letter saying that: Oh
because the letter just said you know
Ray regarding for example Chase
that didn't because it said Ray
it didn't say you know current creditor
Chase. They say that violates the FDCPA.
And you know you'll see letters and you know those are
those are some of these legal issues
that you've been challenging in court
but so it's more that so maybe you see
something that a lot of agencies do but
that doesn't mean that it's a
violation but it seems that's
you know a trend that there's been
lawsuits filed you know all
choosing to pick and file lawsuits
about you know just certain specific phrases
or language in a letter. Spencer: yeah so you when you sign up a new customer you kind of see these
letters and you're like oh wow there's a
there's a much easier way to do this
without generating that lawsuit. Monica: We never are judgmental when we work with new clients.
Always try to be proactive because that's the best way to try and get out in front
and like I said help revive compliance procedures and keep them up to date.
And that's the best a collections agency can try and say on top of everything.
And like I said sometimes you can't avoid it a lawsuit just gets filed but like I said that doesn't mean
necessarily that something is wrong. Spencer: Yeah.
so you guys are
more coaches. Monica: Yes. Alex: Yeah you have to be
proactive with this type of thing, right?
Spencer: Can't just sit on it and get the lawsuit and say
well I better find an attorney now.
Alex: You're gonna be paying them left and right.
Monica: Right It's so important again like I said if you're up against the deadline
that makes it much harder but if there's room you can talk about strategy
talk about options that's really the best position that you want to be in.
Alex: Cool yeah awesome. Spencer: Anything else. Alex: No, that was great.
Spencer: Yeah, how can people get in touch with you? Let me ask that question.
What's the best way? Monica: The Best way? Phone or email. Also when I'm at the conferences
I'm always happy to speak with anybody and
get to know new and exciting people like you guys. Spencer: Well, I don't know about exciting.
exciting but yeah, no. Definitely new.
Thank you seriously for doing this we
really appreciate it. It's always great
to get you guys on the show the content's
always fantastic so thanks so much
for doing that. Monica: Thanks again guys.
Spencer: Well i'm sure we'll see ya. Are you gonna Fall Forum?
Monica: I am not going to Fall Forum. Not this year.
I went last year. Spencer: Yeah I'm sure we'll see you around at the next circuit. Alex: Well
thanks so much for joining us and thanks
everybody for watching if you have any
questions comment below. We'll send
them on over to Monica. Spencer: We'll make
sure she's gets them. Alex: When she gets some time she'll be able to answer them.
Spencer: Yeah if she can find the half an hour. Yeah very busy schedule. But thank you again for doing this
Thank you for watching. We'll see you next week. Alex: Appreciate it. Monica: Thank you. Alex: See ya
