Articles Tagged with Miami consumer rights lawyer

Esteemed Miami foreclosure lawyer Bruce Jacobs has been given the go-ahead to proceed with his lawsuit that aims to oust the new Florida Democratic Party Chairman Stephen Bittel. american flag

The lawsuit recently survived a motion to dismiss after Miami-Dade Circuit Judge Lisa Walsh ruled the complaint should be allowed to proceed. Walsh declined, however, too prevent the Democratic party from certifying the election of Bittel, as they had already done so.

Jacobs filed the lawsuit last month, along with Dr. Mae Christian, a civil rights advocate and president of Miami-Dade County’s Democratic Black Caucus. The lawsuit names as defendants Bittel, the Florida Democratic Party and the Miami-Dade Executive Committee chairman, Juan Cuba.  Continue reading

Amid sharp criticism of its actions during the alleged sham accounts scandal – specifically the inaction to it – the board for Wells Fargo is clawing back some $41 million from its embattled CEO and chairman John Strumpf. That money comes from unvested stock awards. Stumpf is also going to forego his salary while the company delves into its own retail banking practices – specifically sales – that resulted in bank employees opening hundreds of thousands of pony accounts without customer approval. Those employees were reportedly trying to reach account goals set by the bank. money12

In addition to taking action against Strumpf, the bank’s previous head of community banking is giving up her unvested equity stock awards, which currently are valued at $19 million. She is also immediately retiring and also will not receive certain retirement benefits, valued in the millions. Neither is going to take home any bonuses for this year.

This practice of “clawing back” executive awards has been within the power of federal regulators. However, it was rarely tried because typically, it required a criminal conviction – or at least the  serious threat of one. However, it’s likely that this move by Wells Fargo is going to prompt other companies to think about doing the same. Reforms passed in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 asks for stronger clawback rules. Right now, the Securities and Exchange Commission is fielding public commentary on setting some new rules on the practice. If those new rules are finalized, the agency could force clawback action in many more cases beyond what constitutes as obvious, deliberate fraud. Negligence resulting in restated earnings could also prompt clawbacks.  Continue reading

For at least five years, Wells Fargo was engaged in a practice of secretly opening some 2 million phony credit card and deposit accounts in an effort to put multiple banking products in customers’ hands. That kind of growth strategy was central to the bank’s business, and employees were pressured to meet demanding quotas calling for each customer to have eight accounts with the bank. This prompted employees to cut corners. They started opening up accounts without customers’ Ok or knowledge.moneytower

This practice started at least as far back as 2011, but there is evidence to indicate it may have been going on even back in 2009. As a result, the bank was able to rake in at least $2.6 million in additional fees on accounts customers never wanted to begin with. In many cases, customers didn’t even know they existed, and the fees were simply being deducted from other legitimate accounts. Federal regulators got involved this month, and the bank quickly agreed to settle the case for $185 million. Thousands have been fired (though not the company CEO) and U.S. Attorneys have begun investigations. Sen. Elizabeth Warren (D, Mass.) lambasted CEO John Stumpf during a Senate Banking Committee. Although he apologized, Warren told him he was personally responsible, should resign and be criminally investigated.

But the question of why this took so long to uncover goes back to another practice that isn’t unique to Wells Fargo. It’s called an arbitration clause.  Continue reading

A federal jury has just awarded $2.5 million in punitive damages – on top of $6,100 in compensatory damages – to a man who sued Ocwen Loan Servicing and Equifax for allegedly willful violation of the Fair Credit and Reporting Act. gavel7

The original complaint was filed in 2014, after the firms reportedly failed to investigate an alleged error on plaintiff’s credit report – one that cost him a refinancing for which he was applying.

An element of the FCRA, codified in 15 U.S.C. 1681, requires that a company investigate all disputes. Plaintiff filed numerous disputes with the loan servicer after he got an Equifax credit report that indicated he was behind on his mortgage. Ocwen countered its investigation was sufficient, but even if it wasn’t, plaintiff hadn’t proven damages because he had other negative accounts that impacted his loan application standing.  Continue reading

Florida residents are protected from dubious debt collection practices by two laws: The federal Fair Debt Collection Practices Act and F.S. 559.72. cash

The laws prohibit things like:

  • Using or threatening to use violence;
  • Communicating or threatening to communicate with a debtor’s employer before obtaining a final judgment against debtor;
  • Disclosing information to anyone other than debtor or family information that may affect debtor’s reputation;
  • Using abuse, vulgar or obscene language;
  • Claiming or enforcing a debt when it is known the debt isn’t legitimate.

The problem, as highlighted recently by The New York Times, is that most state laws were written many years ago, long before the digital age. At the core, these statutes were written to protect people from becoming completely destitute. But debt collectors are now finding new ways to secure court judgments that allow them to garnish paychecks or seize bank accounts belonging to debtors. Continue reading