CREDITWRENCH-TheTruth

A consumer recently inquired whether or not a collection agency violates the law if they are attempting to collect a debt in a state which requires them to be licensed, but they are not so licensed.

The false and misleading information provided by Creditwrench CEO Bill Bauer is as follows:

Though state statute may not provide for a private right of action for a consumer that is the subject of unlicensed collection activity, the FDCPA does.

If a collection agency must be licensed in a given state, and they are not, they are taking an action that cannot legally be taken in violation of § 1692k and 1692e of the FDCPA.

The courts have been quite clear in this regard, and many consumers have prevailed in exactly such cases.

For example, in Picht v. Jon R. Hawks, Ltd., 236 F.3d 446, 448 (8th Cir. 2001) the court stated:
The FDCPA prohibits, inter alia, the use of debt collection practices that violate
state law. See 15 U.S.C. § 1692e(5) (prohibiting debt collectors from using "false,
deceptive, or misleading representation or means in connection with the collection of any debt," which specifically includes "[t]he threat to take any action that cannot legally be taken"). The Act provides a damages remedy to debtors who have been subject to such unlawful collection practices.

And, in Johnson v. Riddle, No. 01-4028, 2002 WL 1381233, *6 (10th Cir. 2002):
When the alleged FDCPA violation is an improper use of state proceedings, liability under the federal statute turns on the propriety of the debt collector’s conduct under state law.

You don't need to ask the collection agency if they are licensed. Make a simple phone call to the state's licensing authority who will more than happy to tell you whether or not they are licensed.

Shows again how little Creditwrench CEO Bill Bauer knows about the FDCPA. And, how false, misleading, and useless his "expert" advice is.

In response to a recent question by a consumer who is facing a garnishment order and is fearful of losing his job because of it, CREDITWRENCH CEO Bill Bauer offered the following advice:

As has been proven so many times before, Creditwrench CEO Billie Bauer is entirely unfamiliar with consumer protection statutes, but nevertheless continues to provide dangerous advice based upon them.

The Federal Law which governs garnishment of wages is the Consumer Credit Protection Act.

Under the Act, a consumer is protected from termination of employment for the garnishment of their wages for a single debt. See 15 U.S.C. 1674

If garnishment for more than one debt is involved, the law offers no protection from termination.

So in this case, if the consumer already has a garnishment order in place for another debt, and his employer receives a writ of garnishment for another debt, the employer can legally terminate their employment.

But, Creditwrench CEO Bill Bauer failed to ask the simple question of whether or not the consumer was being garnished for another debt before advising him that:

More false, misleading, and dangerous advice from Creditwrench CEO Billie Bauer.

Here is some recent advice posted by Creditwrench CEO Billie Bauer to those who might be facing an action in replevin.

"So if you are in foreclosure.....The first thing you need to do is to make as certain as possible that your home is totally secure, otherwise you too can come home to find your home stripped"

Absolute nonsense.

You can't make your home secure enough to remove it from the reach of the mortgage company if they have taken the necessary legal steps to take possession.

Someone doesn't just show up with a u-haul and start moving out your furniture. That's how people get shot. They arrive with the sheriff in tow. The sheriff takes possession of the property by court order and allows the creditor to take whatever steps are necessary to enter the property.

The more "secure" you make your residence, as suggested by Creditwrench CEO Billie Bauer, the more damage will occur during their entrance. But, enter they will....period.

Your state statutes clearly define what steps a creditor must take in an action in replevin, or repossession of real property.

In most states, a creditor must post a bond with the court in an amount equal to or greater than the value of the property they are seeking to take possession of.

If it is later adjudged that their taking possession of the property was not in accordance with local laws, that bond is used to compensate the homeowner for any damages. And statutory damages can run as high as double the value of the property.

So contrary to Creditwrench CEO Billie Bauers false and misleading advice, the first thing you should do when faced with a foreclosure action is to consult legal counsel to ensure your legal rights are protected.

Recently I posted about the absurdity of the 18 questions for collectors Creditwrench CEO Billie Bauer includes in his "courses." Including the fact they lack any legal basis.

More importantly, nothing that Creditwrench CEO Billie Bauer teaches can possibly be effective.

As further proof, I recently had the opportunity to listen first hand to what a Creditwrench "student" found out the hard way.

Here are the exact words of a Creditwrench "student":

"I'm a wrench student so I've sent all the letters and followed those instructions. They keep calling and leaving nasty messages. They are starting to threaten legal action. So far, there has been no validation of the debt."

There you have it, straight from someone who actually paid Creditwrench CEO Billie Bauer for help. Unfortunately, only to discover too late Creditwrench is a scam. And, that all of the information he claimed would work was simply false and misleading information.