Common threat
from unscrupulous debt collectors (but I repeat myself) «I have a warrant for your arrest here, to send to the District Attorney (which we do not even have here in Michigan) unless you pay this now.»
In addition to allegedly misrepresenting the terms of the loan, the lenders doubled
as unscrupulous debt collectors who falsely threatened to sue the borrowers or have them arrested.
These unscrupulous debt collectors may depend on the fact that you don't know your rights.
To protect yourself during this difficult time, you may wish to sign up for credit monitoring or other services to keep you one step ahead of identity thieves and
unscrupulous debt collectors.
FHA did not say why it was willing to overlook collection accounts in the past, but some lenders and consumer advocates point out that many such accounts are the result of medical debt, divorce, past unemployment, identity theft or
unscrupulous debt collectors.