Vance Dotson has the most unique business I’ve ever heard of in credit repair. He’s not an attorney, yet he makes millions suing debt collectors, banks, and credit bureaus.
And he’s back on the podcast to share some more crazy stories, explain the update to the FDCPA, share important legal cases, and new tactics that can transform your credit repair business!
Vance makes millions suing debt collectors, banks, and the Credit Bureaus.
He is a consumer rights advocate who stands up for credit justice.
He’s not an attorney, yet he taught himself how to win in court simply by reading endless case files and learning the FCRA from front to back!
Before we get into it, I have to say: Vance has a lot of knowledge to share, but I must remind you that Vance and I, we are not attorneys, do not take any of this as legal advice. Federal Law is different than State Law, and every state is different. For legal advice, consult with an attorney.
Here’s some of the top highlights from my interview with Vance.
So, Credit Heroes, buckle up! This was a good one.
For people who didn't hear your story last time, can you quickly recap how this all started for you?
So I had an accident going to work, went into the hospital, didn't pay the hospital bill, and I started getting the collection letters and the calls. And the same thing that I do today is record the call and just tell the debt collector I'm at work and it's not a good time to talk. I monetized that case and we've been rocking and rolling ever since.
[Debt Collectors] break the law every day, and the numbers are just quite scary. If you analyze the data, you analyze the numbers. We have north of 285 million Americans, and it's an FTC statistic that says over 79% of credit reports have errors. And so no matter how you slice it, you still have millions of people. So that's a well-known fact. And so say for example, I've seen another statistic that said four out of five Americans will or have owed Midland credit management. And so the numbers are pretty scary because last year Midland has sued north of 750,000 Americans. And so they're very aggressive with their lawsuit tactics and scare tactics and the reporting of the bad information.
You've made a business out of suing debt collectors without being a lawyer. So how do you do this and what makes it so special?
Well, how I do it is basically mainly through a cell phone. So everybody has a cell phone and calling a debt collector so you can review the information for free on your credit report through Credit Karma or annual credit report.com. People simply don't understand the basics of the FDCPA or people may think they understand what a dispute really is. And once you understand the foundation and the fundamentals of the FDCPA, the consumer has a lot of power. And so what I mean by that is the FDCPA is written up for the least sophisticated consumer. In the FDCPA, it does not define the word dispute. So the courts have went to the ordinary meaning of the word dispute. The Webster defines a dispute as calling into question or to cast doubt. So that's the standard for disputing. And if you can understand that, that's really low.
So it was a big deal a couple of years ago when the consumer reporting agencies collectively came together and said that, Hey, we're going to delete these medical bills. So if you do the research on medical bills, that's the number two reason why people filed for bankruptcy. And so say for an example, if it's on your credit report, all you got to do is call up the debt collector. So keep in mind you already got a screenshot from Credit Karma or you obtained your credit report somehow some way. And so you're just going to call the debt collector and record a call from your phone and just introduce yourself. It's real simple. Step two would be just to say your dispute, say your issue. And so let me point out to people that the date open that's on bills. They referenced that from the day that they got the medical bill, not the day you went to the hospital.
So a consumer can just easily say, Hey, I'm not familiar with this date. Right? I don't recall going to the hospital on this day. That right there is a dispute. So you just say, Hey, I don't recall going to the hospital on this day. And then so they're going to, like I just said, the representative may say, Hey, yeah, that's when we get the information and we report the information, something of that nature. And so all the consumer guys to do next is just gradually get off the phone. Oh, okay. Alright, thank you. Have a nice day. Take it easy. Just real simple. And so usually 30 to 45 days after, that's when the violation occurs. When they update it, a lot of people in the low-income housing, they're not articulate. And so the debt collectors typically don't pick up what the issue really is and the consumer is really disputing.
A lot of people think that you can't fight a debt collector without a lawyer. So can you share a story about someone who thought this but managed to win anyway?
Well, after the [last] interview, it was really several hundred thousand people that reached out of things of that nature about phone, email, social media, everything kind of blew up. There was a guy in North Carolina that he called me and I told him what to do when a debt collector calls him. And so just like on the last interview, I just said, Hey, record the call and just say, Hey, I'm at work and it's not a good time to talk. So he recorded two of them phone calls and then he went to federal court. And I'm telling you, he has been knocking it out. And I'm like, oh my God. So I look at the information that I give people as extra tools in a toolbox. I discussed disputing the last one, and then that same method about telling a debt collector that you're at work and you can't talk. So typically, what that's to do is that's going to put the debt collector on notice that it's an inconvenience for you, but this is the thing, they ignore it. So that's the violation on that second phone call and to keep the days and the time that they call and you can monetize off of that once you obtain the violation.
What are the key things businesses and consumers need to know about this new regulation in the FDCPA?
Okay, so Regulation F doesn't compete or replace the FDCPA. It enhances it, and it totally strengthens the FDCPA. So it is given more clarity to the FDCPA. A lot of things are in the law when lawyers get involved in muddying up the water, things become unclear. So what does this really mean? A lot of consumers just typically don't have the money and the means to hire a great lawyer to really fight on their side. Sure. So what the regulation F did was cleared up a lot of that and said, Hey, this is what this means. And so say for an example, if a debt collector is writing the consumer, they send what's called that Dunning letter, that initial letter that they send to consumers, and then consumers can literally write back addressing the letter that they just received in the mail from the debt collector and just tell 'em, Hey, I'm disputing this debt and the only convenient way to contact me is via email. And so you sign your name and leave your address and your email, and then if the debt collector sends you a letter in the mail, that's a violation of the FDCPA. The consumer can control the medium on how they want to be contacted. So Regulation F made that super clear. And so I found out that section of the FDCPA also with Regulation F is violated heavily by Midland, is violated by a portfolio and LVMV often.
What are the top violations you see from debt collectors?
So the top violations are non-marketing information disputed. That by far is probably the biggest one. And then texting the consumer. So the consumer has told the debt collector, I refuse to pay. And so they're going to keep on emailing the consumer. And so that's what we're picking up a lot. Email too. The debt collector emails, the consumer about the debt, the consumer texts back and say, Hey, I refuse to pay. Next thing, they're still calling the consumer, they're still emailing the consumer and they're still sending the consumer letters. That's the common violations that I'm seeing. And so a lot of the times people, they're trying these tactics of disputing the regular normal way, they go for a house and then the mortgage broker say, Hey, we can give you this house, but you have to take this dispute remarks off of your credit report. So in that instance, what a consumer needs to do is contact TransUnion, Equifax, and Experian in writing, and they need to contact the debt collector in writing and send the communications and send the letters certified and just tell them that you're disputing the completeness and the accuracy of the information and to remove the dispute remarks.
And so like I say, you're sending that letter to TransUnion, Equifax, and Experian, and also the debt collector. And so once you get the reinvestigation results back from TransUnion, Equifax, Experian, and they don't remove that remark, that's a violation of FDCPA.
What new tips or advice can you share for credit repair businesses and consumers?
As the consumer reporting agencies, they increase their technology to recognize disputes. So you have to come up with direct tactics that I use to further help the consumer because they're blocking the disputes, right? They're saying, Hey, this come from a credit repair company under the FDCPA. That's not a thing under the FDCPA. So once the consumer and or the credit repair company gains the knowledge on how to dispute directly and effectively, and then you can get more results and hopefully more money from the debt collector to follow the law.
Wow, Vance dropped so much gold in this episode! Tune into the full podcast here and get great to take some notes.
I'LL END BY SAYING
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