Table of Contents See also Summary of Contents on the previous page. Chapter One Section One: The Fair Debt Collection Practices Act (FDCPA): An Introduction to Coverage, Violations and Remedies... 1 Jason M. Rapa, Esquire I. Overview: Fair Debt Collection Practices Act... 3 II. Specific Application and Prohibition... 3 A. Legislative Intent/Background... 3 B. Definitions... 4 C. Regulations/Prohibitions... 5 1. Restricted Communications... 5 2. Abuse/Harassment... 5 3. False, Deceptive or Misleading... 6 4. Unfair or Unconscionable Conduct... 6 5. Notice Requirements... 7 6. Enforcements... 7 D. Enforcement... 7 1. Act is a Strict Liability Statute... 7 2. Upon Successful Litigation of an Individual Suit Plaintiff/Consumer is Entitled to... 8 3. Upon Successful Litigation of a Class Action the Class of Consumers is Entitled to... 8 E. Defenses... 8 1. Factual Dispute... 8 2. Bona Fide Error Defense... 8 F. Recent Amendments to FDCPA and Recent Case Law... 9 1. Recent Amendments... 9 2. Recent Case Law... 9 a. Validation Notice... 9 b. False and Deceptive Conduct... 9 c. Meaningful Involvement Requirement... 10 d. Mini Miranda Required... 10 III. Other Sources for Information Concerning the FDCPA and Protection of Consumers... 10 Chapter One Section Two: Unlawful Debt Collection: State and Tort Law Claims... 11 Jason M. Rapa, Esquire I. Applicable Law... 13 A. State Law... 13 1. Fair Credit Extension Uniformity Act... 13 xi
2. Unlawful Collection Agency Practices... 13 B. Tort Law Claims... 14 1. Intentional Infliction of Emotional Distress (IIED)... 14 a. Elements... 14 b. Damages... 14 2. Invasion of Privacy Intrusion Upon Seclusion... 14 a. Elements... 14 b. Damages... 14 II. Specific Application and Prohibition... 15 A. The Fair Credit Extension Uniformity Act (FCEUA)... 15 1. Overview... 15 2. Definitions... 15 3. Regulations/Prohibitions... 16 a. Unfair or Deceptive Conduct Prohibited... 16 b. Harassing, Oppressive and Abusive Conduct Prohibited... 16 c. False, Deceptive and Misleading Representations Prohibited... 16 d. Unfair and Unconscionable Conduct Prohibited... 17 4. Enforcement and Penalties... 17 a. Jurisdiction... 17 b. Penalties... 17 c. Bonafide Error Defense... 17 B. Unlawful Collection Agency Practices... 17 1. Overview... 17 2. Requirements... 18 a. Assignments of Claims... 18 b. Appearances for Creditors... 18 c. Unfair and Deceptive Conduct Prohibited... 18 d. Coercion and Intimidation Prohibited... 18 e. Penalty: Misdemeanor of 3rd Degree.... 18 Chapter Two Section One: Developing a Successful Collection Campaign: Using Technology, Rules of Civil Procedure, and Legal Precedent to Find Assets... 19 Christopher P. Coval, Esquire I. The Primary Tools of Post-Judgment Collections... 21 A. Wait and See... 21 B. Garnishment/Attachment... 21 1. Examples... 21 C. Personal Property Levies... 22 1. Tools and Equipment... 22 D. Sheriff Sales of Real Estate... 23 E. Exceptions: Property Not Subject to Execution... 23 F. Odds and Ends... 23 1. Fees Owed to Garnishees Where They are Found to Have No Property of the Defendant... 23 2. Out of State Assets... 23 xii
II. Using Technology to Find Assets... 24 A. What Information is Helpful to Know... 24 III. Many On-Line Resources... 24 A. Always Start by Searching the Dockets... 24 B. Recorder of Deeds... 24 C. Board of Tax Assessment... 24 D. Department of State... 24 E. DMV Records... 25 F. Google... 25 G. Facebook... 25 H. WHOIS Search... 25 I. Internet Archive... 25 IV. Vendors... 25 A. LEXIS/NEXIS... 25 1. Substantial Public Records Database... 25 2. Can Be a Bit Costly... 26 B. WESTLAW... 26 1. PeopleMap... 26 C. Asset Reports by Private Investigative Services... 26 D. Using Social Media ( Jury Scout )... 26 V. Some of the Legal Ways to Find a Debtor s Bank Accounts... 26 A. Cancelled Checks; On-line Statements... 26 1. Previous Business before the Default... 26 2. Settlements that Have Fallen Through... 26 3. Interrogatories in Aid of Execution... 26 4. Buy Something from the Debtor... 26 5. Divorce Records... 26 6. Failed Bankruptcy Attempts (PACER)... 26 7. UCC Filings... 26 8. Loan Applications and Financial Statements... 27 9. Rental Applications or Security Deposits... 27 10. Trash Searches... 27 11. Shot Gun Levy... 27 12. Do Not Call Banks Pretending to Be the Debtor... 28 VI. Rules of Civil Procedure and Precedent... 28 A. Execution May Issue on Common Pleas Judgments Simultaneous with Their Entry or Thereafter... 28 B. Long-Arm Execution... 28 1. The Prothonotary... 28 2. The Writ... 28 3. Venue Implications... 28 C. Interrogatories in Aid of Execution... 28 D. Depositions in Aid of Execution... 29 E. Post-Judgment Request for Inspection under Rule 4009.31... 29 F. Rule 3118 Supplementary Relief in Aid of Execution... 29 1. Petition of Plaintiff... 29 2. Entitlement to Relief... 29 xiii
G. Break and Enter... 30 1. Defendant s Refusal to Allow Sheriff Entry into Premises Where Property for Levy is Located... 30 2. Rule 3127... 30 3. Montgomery County Local Rule 3118(a)(6)(A)... 30 VII. Out of State Judgments... 31 A. Uniform Enforcement of Foreign Judgments Act... 31 1. Judgments Entered in State and Federal Courts Outside of Pennsylvania... 31 2. Procedure... 31 VIII. Foreign Judgments... 31 A. Uniform Foreign Money Judgment Recognition Act... 31 B. When Judgments are Not Subject to Recognition... 31 C. Procedure... 32 IX. Bankruptcy... 32 A. Bankruptcy Protection... 32 B. Automatic Stay... 32 C. Stay Relief... 32 Appendix A: LexisNexis Public Records Advantage... 33 Appendix B: Enforcement of Foreign Judgments... 39 Appendix C: Uniform Foreign Money Judgment Recognition Act... 53 Appendix D: Westlaw PeopleMap... 71 Appendix E: Plaintiff s Interrogatories in Aid of Execution Directed to Defendant... 87 Appendix F: 42 Pa.C.S. 2503 Right of Participants to Receive Counsel Fees... 107 Appendix G: Praecipe to File, Register, and Index Foreign Judgments... 111 xiv
Appendix H: Postjudgment Request to Enter Designated Premises for Inspection of Property Pursuant to Pa.R.Civ.P. 4009.31 in Aid of Execution... 121 Chapter Two Section Two: Developing a Successful Collection Campaign: Using Technology, Rules of Civil Procedure, and Legal Precedent to Find Assets... 125 Shawn P. McClure, Esquire I. Technology... 127 A. New Sources of Information... 127 1. Social Media... 127 2. Westlaw/LexisNexis... 128 B. Traditional Sources of Information... 128 1. Prothonotary s Office... 128 2. County Tax Assessor s Office... 128 3. Recorder of Deeds Office... 129 4. Secretary of the Commonwealth-Corporations Bureau... 129 5. Pennsylvania Department of Transportation... 130 6. Your Own Documents... 130 a. A Sale of Goods or Services on Credit... 130 b. Lease or Loan Transactions... 131 II. Rules of Civil Procedure/Legal Precedent... 131 A. Discovery in Aid of Execution... 131 1. Depositions and Interrogatories... 132 2. Expenses of Discovery... 132 3. Information Subpoena... 132 B. Garnishments... 132 1. Garnishee... 132 2. Procedure and Effect... 133 3. Interrogatories to Garnishee... 133 4. Bank Accounts... 133 5. Partnership Interests... 134 C. Supplementary Relief in Aid of Execution... 134 1. Catch All... 134 2. Limitations... 134 D. Charging Orders... 135 1. General Rule... 135 2. Redemption Period... 135 E. Sequestration of Rents or Payments... 138 F. Dealing with Property Claims and Sheriff s Interpleader... 139 xv
Chapter Three: Counseling Your Clients to Plan for Debt Collection: What Can They Do Beforehand to Make Collections Easier... 143 Christopher P. Coval, Esquire Nicholas D. Krawec, Esquire I. Credit Application/Credit Agreement... 145 A. Identify the Legal Form of Your Customer... 145 1. Changes in the Legal Formation of the Customer... 145 2. Change in Business Form... 145 3. Counsel Your Client to Review and Update Its Credit Applications... 145 4. Consumer/Retail Transactions... 146 B. Identify Who at the Customer is Authorized to Make Purchases, or Incur Charges on the Account... 146 1. Change in Authorizations... 146 2. Creditor Reliance... 146 C. Set Forth the Credit & Payment Terms... 146 1. Credit Limit... 146 2. Payment Due Date... 146 D. What are the Consequences of Default?... 146 1. Unilaterally Change the Credit Terms or Cut-Off Credit... 146 2. Change the Terms to C.O.D. or Cash-in-Advance... 146 3. Interest or Finance Charge Terms... 146 4. Collection Costs and Attorney Fees... 147 E. Jurisdictional/Forum Selection Clauses... 147 1. Litigation Jurisdiction Provision... 147 2. Jurisdiction of the State or Federal Court s in the Creditor s Locale. 147 3. Enforcement of Jurisdictional/Forum Selection Clauses... 147 4. Arbitration Clauses... 147 II. Creditor Enhancements... 147 A. Additional Protections with Borderline Creditworthy Customers... 147 1. Continuing Personal Guaranties... 148 2. Continuing Personal Guaranty from Principal s Spouse... 148 3. Written Consent for Checking Guarantor s Personal Credit Report... 148 B. Cross Corporate Guaranties... 148 C. Confession of Judgment Clauses... 148 D. Security Agreements... 149 III. Watch the Calendar... 149 A. Reminders... 149 B. Dunning Letters... 150 C. Policy for When to Turn It Over to Outside Counsel... 150 D. Policy for When Not to Pursue Collections... 150 IV. Special Situations... 150 A. Creditor Provides Construction Materials and/or Labor... 150 B. Make Sure Your Contract is Enforceable... 150 C. Mechanics Liens... 151 xvi
1. Filing Deadline... 151 2. 30-Day Notice of Intent to File Mechanics Lien Claim... 151 3. Information Needed for Your Client to Protect Its Mechanics Lien Rights... 151 Appendix A: Commercial Credit Application and Account Agreement with Terms and Conditions... 153 Nicholas D. Krawec, Esquire Appendix B: Mechanic s Lien Claim: Job Profile Sheet... 159 Nicholas D. Krawec, Esquire xvii
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