Light & Gonzalez, PLLC

Illegal debt collection practices: When debtors can sue

2026-05-02T23:54:58Z

When debt collection companies make threats, violate key legal boundaries or engage in deceptive business practices, the debtors they target with those aggressive and illegal collection practices can potentially take legal action. Federal laws, including the Fair Debt Collection Practices Act (FDCPA), limit the conduct of those engaging in debt collection for businesses. When a company's internal collections department or a third-party debt collector violates federal regulations and engages in abusive conduct, the debtor enduring inappropriate collection efforts may have grounds to file a lawsuit. They can request a cessation of inappropriate collection activity and damages, including any actual damages and $1,000 in statutory damages.

What collection practices does the law prohibit?

Under the FDCPA, numerous forms of collection activity are technically illegal. The practices explicitly prohibited by the FDCPA include:

Using vulgar or profane language
Threatening violence
Intentionally calling multiple repeatedly to cause annoyance or disruptions
Misrepresenting the amount owed
Posing as a government official or attorney
Threatening arrest over an unpaid debt
Disclosing debt information to individuals other than the debtor, their attorney or their spouse
Depositing post-dated checks before the date on the check
Collecting interest or fees not authorized by the law or loan paperwork
Calling after a debtor sends a written stop contact request
Calling before 8:00 a.m. or after 9:00 p.m.

Creditors generally need to respect communication boundaries imposed by debtors, provided that debtors send notice in writing. If they inform a company that they cannot accept personal calls at work, calls to their place of employment should cease. Similarly, if a professional works a second or third-shift job, they can ask creditors to stop calling them at times when they typically sleep. In cases where collection agents engage in abusive language or make threats, that conduct can also warrant a lawsuit against the collection agency or creditor. Debtors can seek damages for reputation damage caused by inappropriate disclosures, job loss and other verifiable consequences sustained due to the improper collection activity. Keeping records of inappropriate communications with details, including the time, date and name of the party involved, can help individual debtors hold collection agencies and creditors accountable for abusive and illegal practices. Reviewing documentation related to inappropriate debt collection with a legal professional can help people stand up for themselves.

Can those who file for bankruptcy in Florida keep their homes?

2026-04-27T17:06:54Z

People filing for bankruptcy in Florida can typically protect their homes. In some bankruptcy filings, they may be subject to asset liquidation requirements. However, Florida exemptions can protect accrued home equity. Other types of bankruptcy do not require the liquidation of property and therefore do not endanger homeownership during Florida proceedings. What do people considering bankruptcy need to know about protecting their home equity when they file?

Chapter 7 filers

Some people call Chapter 7 bankruptcy “liquidation bankruptcy.” The courts may require that people sell some of their assets to repay their creditors before they are eligible for a discharge of their qualifying debts. Fortunately, Florida exemptions allow for the protection of all home equity as long as the parcel attached to the primary residence is not too large. If the parcel is less than 0.5 acres within municipal limits or 160 acres in the countryside, all of the filer’s equity may be exempt in a Chapter 7 bankruptcy case. How long the filer has lived in Florida and owned the home may determine if they are eligible for the full exemption offered under state statutes. Generally, those filing Chapter 7 bankruptcy in Florida must have lived in the state for at least two years before the filing. They also need to have owned the home for 1,215 days (which is roughly three years and four months).

Chapter 13 filers

For homeowners on large parcels, those who recently moved to Florida and those who recently moved to a new home, Chapter 7 bankruptcy could leave some home equity at risk. Others may not even qualify for Chapter 7 proceedings due to their above-average income. In such cases, a Chapter 13 bankruptcy may be the best option. Chapter 13 proceedings do not require any asset liquidation, allowing filers to preserve the entirety of their interest in the home. Additionally, the process of negotiating a repayment plan could make it easier for the filer to obtain a mortgage modification from their lender. Florida residents concerned about their finances and preserving their home equity can benefit from legal guidance as they consider their bankruptcy options. Understanding how Florida statutes protect home equity can help people feel confident about filing for personal bankruptcy.

3 legal options to resolve debt without bankruptcy

2026-03-06T15:16:14Z

Think of bankruptcy as a final option, best used only after you have looked into your consumer protection rights. In many cases, illegal collection practices actually create legal claims that can settle your debt faster and with far less long-term damage than a bankruptcy filing. Holding aggressive creditors accountable for their actions is a viable approach to secure debt cancellation, fix your credit report and receive compensation for the harm they caused.

Stop harassment under federal law

The Fair Debt Collection Practices Act (FDCPA) gives you powerful tools to fight back against abusive agencies. This federal law prohibits debt collectors from calling you before 8 AM or after 9 PM, contacting you at work after you tell them to stop or using threatening language. When collectors violate the FDCPA, you can sue them for up to $1,000 per violation plus any actual damages you suffered. The law also requires these companies to pay your attorney’s fees if you win. They often settle quickly to avoid court, and settlements frequently include complete debt forgiveness.

Leverage Florida consumer laws

Florida's Consumer Collection Practices Act (FCCPA) provides additional protections beyond federal law. This state statute makes it illegal for collectors to threaten actions they cannot legally take, such as seizing your property without a court order or having you arrested for unpaid obligations. The FCCPA also prohibits collectors from communicating with third parties about your financial status, adding unauthorized fees to your balance or continuing collection efforts after you dispute the debt in writing. Infractions can result in damages, injunctions stopping the illegal behavior and attorney’s fees paid by the collector.

Fix credit report errors

The Fair Credit Reporting Act (FCRA) safeguards you against inaccurate information on your credit reports. Creditors and collectors must report truthful data, and credit bureaus must investigate disputes within 30 days. If a collector reports a debt you have already paid, lists the wrong amount or fails to update your account status after you have settled it, they have likely violated federal law. You can sue both the collector and the credit bureau for damages when they report false information or fail to correct errors after you dispute them. Credit report errors often result in settlements that may include removing the negative information, paying you damages and canceling the underlying debt.

You are not without options

To build a strong case, start by gathering all collection letters and keeping a detailed log of every phone call. Be sure to document the dates, times and specific details of each interaction to help identify any patterns of harassment or misinformation. At the same time, review your credit reports from all three major bureaus to spot inaccuracies or unauthorized fees. Once these records are organized, you can pinpoint which consumer protection laws apply to your situation and take action to stop the collection efforts. Debt collectors often rely on you feeling powerless or uninformed. They use intimidation because they assume you are not aware that their tactics may actually violate the law. By understanding your rights, you can take control of the situation and resolve your debts on your own terms.

How to stop foreclosure in Florida: 8 Proven strategies

2026-03-06T02:56:02Z

To stop a foreclosure in Florida, you must take certain legal and financial actions, such as reinstating your loan, applying for a mortgage modification or filing for bankruptcy to trigger an automatic stay. Because Florida is a judicial foreclosure state, lenders must sue you in court, providing a window of time to implement a defense strategy before a final judgment is entered.

1. Reinstating the loan

The most direct way to stop a foreclosure is to reinstate the mortgage. This involves paying the entire past-due amount, including late fees and legal costs, in one lump sum. In Florida, many mortgage contracts allow you to reinstate the loan up until the court enters a final judgment or, in some cases, a few days before the scheduled sale.

2. Applying for a mortgage modification

A loan modification permanently changes the terms of your original note to make monthly payments more affordable. Many Florida homeowners utilize programs like the Fannie Mae Flex Modification. These programs often achieve a lower payment by:

Extending the loan term to 40 years
Reducing the interest rate
Adding the past-due balance back into the principal

A loan modification requires a formal application process where you must prove your financial hardship through current pay stubs and tax returns.

3. Filing for Chapter 13 bankruptcy

If a foreclosure sale is imminent, filing for bankruptcy triggers an automatic stay, which legally halts the sale. A Chapter 13 bankruptcy is particularly effective because it allows you to reorganize your debt. You can create a three-to-five-year plan to pay back your mortgage arrears while keeping your home.

4. Requesting a forbearance agreement

Forbearance is a temporary arrangement where your servicer pauses or reduces your payments during a short-term hardship, such as a medical emergency or temporary job loss. Once the period ends, you must work out a plan to repay the skipped amounts. This is an ideal strategy if your financial trouble is temporary and already resolved.

5. Utilizing the right of redemption

Florida law provides a right of redemption, which allows you to stop the foreclosure by paying off the full balance of the mortgage. You have the right to redeem the property at any time before the clerk files the certificate of sale or the time specified in the foreclosure judgment.

6. Challenging the lender's standing

Because Florida foreclosures happen in court, you can file a legal defense. One common strategy is challenging the lender's standing. If the bank cannot provide the original note or prove they legally own the mortgage, which often happens when loans are bundled and sold, the court may dismiss the foreclosure case.

7. Negotiating a short sale

If you can no longer afford the home and want to avoid a foreclosure on your credit report, a short sale is a viable option. A short sale is when the lender lets you sell the house for less than what you owe. This requires the lender's approval and a buyer's offer, but it can prevent a deficiency judgment against you.

8. Executing a deed in lieu of foreclosure

A deed in lieu of foreclosure involves voluntarily transferring the title of your property to the lender. In exchange, the lender cancels the mortgage and stops the foreclosure process. This is often faster than a short sale, and is a way to walk away from the property without a formal foreclosure sale on your record.

When is it time to consider bankruptcy?

2025-04-28T19:18:54Z

Serious financial strain is a reality for many families throughout the country. Data from the Federal Reserve shows that more than 25% of adults in the United States are struggling financially and almost 33% state they are doing worse off financially than they were the previous year. Interestingly, almost 75% of adults state they are “doing okay” financially — which could mean they are one surprise bill away from financial strain. In some cases, those who face financial strain like the data noted above can benefit from bankruptcy. The following will discuss common signs that financial strain is more than just a short-term issue and how bankruptcy can help.

What are common signs that a financial situation warrants bankruptcy?

Not every financial struggle warrants bankruptcy. Temporary financial setbacks generally do not, especially if there is a clear path to recovery. It is important that those who are considering bankruptcy make an informed decision. Signs that indicate bankruptcy may be the right option can include:

Overwhelming debt: If monthly debt payments exceed income, it may be time to consider bankruptcy. This includes credit card debt, medical bills, and personal loans.
Collection actions: Persistent calls from creditors or legal actions such as wage garnishments can signal the need for bankruptcy.
Asset liquidation: Selling assets to pay off debts can be a temporary fix. If this becomes a regular necessity, bankruptcy might be a more sustainable solution.

These indicators suggest that bankruptcy could provide relief by halting collection actions and potentially discharging certain debts.

How can bankruptcy help?

The particulars depend on a number of factors, including which type of bankruptcy you choose. There are different chapters of bankruptcy, with Chapter 7 and Chapter 13 being the most common for individuals. A Chapter 7 bankruptcy can eliminate unsecured debts, offering a clean slate, while a Chapter 13 bankruptcy allows for a structured repayment plan, making debts more manageable. Filing for either type of bankruptcy initiates an automatic stay, which stops most collection activities. These benefits can provide significant relief, allowing individuals to regain financial stability and focus on rebuilding their credit. Deciding to file for bankruptcy is a significant decision. By recognizing the signs of financial distress and understanding the benefits and limitations of bankruptcy, individuals can make informed choices.

Fourth DCA Holds that for Ortiz Presumption to Apply the Note must be in the “Same Condition”

2024-11-04T18:07:25Z

Yesterday, in Fredle v. The Bank of New York Mellon, 4D15-3283, the Fourth District Court of Appeal granted a motion for rehearing and clarification with some interesting tidbits important to fighting the presumption analysis pursuant to Ortiz. Here, the note attached to the complaint was not in the same condition as the original note introduced at trial, as pointed out by the appellants in their reply brief. Although the differences may seem minor, Ortiz infers possession at the time of filing suit where the copy attached to the complaint and the original are the same, as the copy must have been made from the original note at the time that the complaint was filed, without evidence to the contrary. Where the copy differs from the original, the copy could have been made at a significantly earlier time and does not carry the same inference of possession at the filing of the complaint.

While the facts about the condition of the note attached to the complaint versus the note presented to the court aren’t contained within the opinion, this language can be interpreted very broadly. Any type of difference in the copy attached to the complaint could be sufficient to overcome an Ortiz presumption. The current holding indicates that a noteholder could rebut an Ortiz presumption if the note presented at the time of trial has any minuscule difference compared to the copy which was filed along with the complaint. The result of this holding is that a defendant may be able to successfully rebut a presumption that the noteholder was in possession of the note at the time that the lawsuit was filed if the defendant can show that there is any minor difference; such as, a small tear, a coffee stain, a stray marking, or even a noticeable crease. Prior to this decision many courts would only examine the note to see if there were any additional endorsements, but this ruling is much broader in scope. This is exactly how Ortiz should have been applied from the beginning, because drawing this type of inference is pretty tenuous to begin with.

Contact Our South Florida Foreclosure Lawyers

Our Consumer Protection Attorneys will take your case to trial to try to beat the bank. If you need help with any debt related issues, including foreclosure, consumer debt, or even if you’re thinking about bankruptcy, contact Light & Gonzalez, PLLC today to speak with a lawyer who can go over all your legal options.

4DCA Update- Original Allonge Required Absent Lost Note Count

2025-02-28T10:41:50Z

Earlier this month in U.S. Bank N.A., etc. v. Jean Kachick, 4D16-1776, the Fourth District Court of Appeal affirmed the trial court’s final judgment in favor of the homeowner because the Plaintiff failed to file the original allonge with the trial court. Although the original note was filed, the allonge, which is an additional page affixed to a promissory note for the purpose of adding additional endorsements, was not an original but was merely a copy. The case crystalizes the longstanding, important principle in all promissory note cases that the note holder must have the original document in their possession in order to foreclose. Due to sloppy record keeping practices banks or other creditor do not always keep track of the original loan documents that homeowners sign or allonges that are added to the note later by subsequent note holders. What has been known for a long time is that in order to file an original note count the plaintiff must be in possession of the original loan documents, and this case confirms that the original note also includes allonges that are added to the note later. If banks are missing that piece of the puzzle, the 4DCA points out that there are remedies available, specifically the bank can file a lost note cause of action as to the allonge. This gives the homeowners additional protections in case the allonge appears at some later date and it turns out that the bank that filed suit was not actually entitle to collect on that promissory note.

Contact Our Plantation Florida Foreclosure Lawyers

Our Foreclosure Attorneys will take your case to trial to try to beat the bank. If you need help with any debt related issues, including foreclosure, credit card debt, or even if you’re contemplating bankruptcy, contact Light & Gonzalez, PLLC today to speak with a lawyer who can go over all your legal options.

4DCA Update: Secret Agency Relationship Sufficient for Standing

2025-02-28T10:41:46Z

On Wednesday the Fourth District Court of Appeal reversed an order of involuntary dismissal finding that the Bank of New York Mellon had standing to initiate the foreclosure action even when a different party, the mortgage servicer, was in possession of the note and the Plaintiff failed to introduce either the Pooling and Servicing Agreement of the trust that allegedly owned the loan or an MLS evidencing the loan was a part of that trust. The decision is the most recent in a line of cases starting with Caraccia v. U.S. Bank, Nat’l Ass’n, 185 So. 3d 1277, 1279 (Fla. 4th DCA 2016), that hold a plaintiff can demonstrate their standing to foreclose when they are merely in constructive possession of the negotiable instrument they are seeking to enforce. This latest case demonstrates just how little proof a servicer is required to show in order to demonstrate an agency relationship and constructive possession. The opinion notes Bank of New York Mellon could not introduce either the Pooling and Servicing Agreement or the Mortgage Loan Schedule to show that the servicer in actual possession of the note was in anyway related to the promissory note Bank of New York sought to enforce. The only evidence submitted to demonstrate the agency relationship necessary for constructive possession was one limited power of attorney that listed the servicer as authorized to initiate foreclosure actions on behalf of the bank. This scant evidence, combined with the presumption established through Ortiz and Clarke was sufficient evidence to demonstrate Bank of New York Mellon’s standing. It’s worth mentioning that the limited power of attorney specifically mentions the pooling and servicing agreement that wasn’t admitted into evidence, and that the reason the PSA wasn’t admitted is because the plaintiff prevented the defendant from questioning the bank’s witness about the contents of the PSA during her deposition. Without having the opportunity to shed light on this secret agency relationship it will prove very difficult to rebut all the presumptions building into this area of law. While this reversal was at the involuntarily dismissal stage, and not on the weight of the evidence it could set a dangerous precedent which would require defendants to affirmatively prove that there was not an agency relationship between the plaintiff and the servicer in actual possession of the note. In situations such as this, where the Plaintiff prevented the Defendant from asking questions about the PSA which may have uncovered that there was not such an agency relationship, proving this fact could be particularly difficult. But I suppose that’s why lawyers exists.

Contact Our Plantation Florida Foreclosure Lawyers

Our Plantation Florida Foreclosure Lawyers are prepared to take your case to trial to try to beat the bank. Exercise your right to be represented against the party foreclosing against you and contact us today.