Articles Tagged with debt defense lawyer

The student loan industry in many ways is mirroring that of the mortgage industry, and financial crisis may soon be on the horizon.debt defense

The only reason it hasn’t completely erupted up until this point is that despite the large number of student loan debts that are in default or delinquent, the share of their total debt did not balloon to the point of completely unsettling markets or setting public opinions alight. In fact, until recently many held the attitude that it was borrowers, saddled with mountains of debt they could not shed through bankruptcy, who had made their own bed. That could soon change, as companies purchasing distressed student loan debts – also known as “bundlers” – are finding themselves in the very same spot as many subprime mortgage companies did a few years ago.

Specifically, it’s being revealed in a number of pending cases that these student loan debt bundlers are not able to prove who actually owns the debt or when.  Continue reading

Nearly a dozen debt settlement companies in Florida were systematically defrauding consumers, leading the Federal Trade Commission and the state attorney general to recently shut down those operations.debt defense

Both regulators succeeded in obtaining a court order that requires the 11 companies (owned by three individuals) to stop marketing their debt settlement “services,” which in fact preyed on thousands of vulnerable people eager to stop creditor harassment and avoid bankruptcy. The case is a cautionary tale of why it’s best to avoid working with a non-attorney when you’re seeking a manageable debt settlement agreement.

According to the complaint, filed in the U.S. District Court in the Southern District of Florida, the companies conned consumers into believing they could avoid having to pay thousands of dollars in outstanding credit card bills. Instead, they were told to pay the debt settlement companies money every month, and those firms promised to negotiate a deal with the credit card companies. On the surface, this seems like a good deal – legitimate too. But Florida Attorney General Pam Bondi says it wasn’t, and some consumers, after paying hundreds or thousands of dollars, learned their credit card debts were never paid and their accounts were deeply in default. Their credit was completely decimated. Some had no choice but to file for bankruptcy. Others were sued.  Continue reading

Illegal debt sales and debt collection practices have landed Citibank in hot water with federal regulators. In two separate actions, regulators ordered the bank to fork over $16 million in consumer relief, pay $3 million to the government in penalties and forego $34 million in collections from approximately 7,000 customers.business man

The Consumer Financial Protection Bureau finalized two actions against Citibank – one involving sales of credit card debt with inflated interest rates and not timely forwarding consumer payments to debt buyers. The second involved both the bank and two of the debt collection law firms that together reportedly falsified court records in debt collection lawsuits. For the first action, the bank is ordered to pay $5 million in consumer relief, as well as a $3 million federal penalty. For the latter, it is ordered to refund $11 million to customers and stop its pending debt collection actions against involved consumers.

CFPB’s director said the bank gave its consumers bad information when it sold their credit card debt, and then relied on shady law firms to change up court records to appear in the bank’s favor.  Continue reading

Credit reports have a huge influence on so many aspects of our lives – from our mortgage rate to our ability to secure a loan to various job prospects. So it’s important to understand how ratings are formulated, how to improve scores and how to correct mistakes (which are more common than you would think and can cost more than you might realize).creditcards

Details of what is allowable (and what isn’t) is found in 15 U.S. Code Section 1681c. The law states consumer reporting agencies can’t make a report that includes:

  • Cases that fall under the Bankruptcy Act or title 11 that date back more than 10 years.
  • Records of arrest or civil lawsuits or civil judgments that go back more than 7 years or beyond the governing statute of limitations expiration (whichever is longer).
  • Tax liens that have been paid and which date back more than seven years.
  • Accounts that have been placed for collection or charged to profit-and-loss that date back more than seven years.
  • Any other adverse information (other than a criminal conviction) that goes back more than seven years.
  • Name, phone number or address of any medical provider that has filed notification with the agency (with a few exceptions, including credit holder’s engaging in the business of insurance).

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