Attorneys all over the country are increasingly taking bad debt collectors to task for their abusive tactics. This comes from Texas:
The problem’s so bad; the Federal Trade Commission gets more complaints about debt collectors than anything. The tactics of debt collection agencies have been described as heavy-handed and mafia-like.
In the local news the foreclosure rate in Massachusetts “spiked” during the month of July. Local real estate agents have told me that the market is slowing. And across the pond, there is talk that portends even worse news.
Some are suggesting that the housing market in the US is in a “free fall.” Their words. Not mine.
The slowdown in the US housing market will force businesses to slash 73,000 jobs a month next year and could be more damaging to the world economy than the dotcom crash, warn economists.
“Things do seem to be getting worse very quickly. Freefall is a strong word, but I think it’s the right one to use here,’ said Paul Ashworth, chief US economist at Capital Economics.
In today’s Taunton Gazette, news that the foreclosure rates in Bristol County Massachusetts have doubled in just one year.
While owning a home may be a cornerstone of the American Dream, for many people adjustable interest rates, stagnant wages and prices at the pump are turning it into a nightmare.
The IRS is slated to begin its “private debt collection initiative” on September 7. In other words, they are sending private debt collectors out to collect Uncle Sam’s money. In anticipation of the occassion, the IRS issued a statement today entitled “Simple Steps Can Prevent tax Scams as Private Debt Collection Begins.”
The IRS sees a variety of different scams on different issues. One recent example involves a bogus e-mail claiming to be from the IRS. In this “phishing” scheme, the scam artist’s e-mail claims to be from the IRS, tells recipients that they are due a federal tax refund, and directs them to a Web site that appears to be a genuine IRS site. The bogus sites contain forms or interactive Web pages similar to IRS forms or Web pages but which have been modified to request detailed personal and financial information from the e-mail recipients.
In general, all taxpayers should keep in mind the IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. If in doubt about someone claiming to be from the IRS or working on behalf of the IRS, call the agency’s toll-free help line at 800-829-1040.
Today I battled a debt collector who was harassing one of my clients. I enjoyed myself, and I tend to when I know I am right. I am waiting for authority from my client to sue them. Here’s why:
My clients retained me to seek bankruptcy. They told the creditor (Discover Card) – and this collection agency (Nationwide Credit) that I was their attorney and to call me. They did, and on July 17 (shortly after they left a message seeking confirmation of retainer) I called and spoke to them and confirmed representation. But today, they called my client – and told my client that I never returned their call. They also told my client they were going to continue to call her until I returned the call. My client was troubled by this, since it’s my job to help her and her family get through this tough financial time.
So I called and spoke to the collector. She was a peach. She told me they the company never heard from me, and then in the same sentence, acknowledged that “my name was in the system” – and spelled incorrectly (McLeon). I called her out on that and said “if my name is in the system, then clearly you know I am her attorney. Why are you calling my client.” Her reply was that if I would “do my job and return the call” they would not bother my client. Can you sense how that my got my blood to boil?
The Association of Community Organizations for Reform Now is concerned about the impact rising interest rates have on homeowners. From the Houston Chronicle:
ACORN also is worried that many of those with adjustable-rate mortgages, which made up three-quarters of all subprime, or nonconventional, loans in 2005, will find themselves saddled with debt as interest rates rise.
Some people have credit cards because they rely on them, and others have them for sheer convenience. Newsweek lists out 10 things you might now know about credit cards. This one even I found a bit surprising:
One late payment can result in a significant drop in your credit score—of up to 100 points—so pay on time every time. A drop in your credit score of just 50 points can mean you pay $100 more a month in your mortgage payment.
Retired Massachusetts Bankruptcy Judge Carol Kenner appears in today’s Boston Globe with this great op-ed.
We are not talking about puppies. From MSNBC and Newsweek:
Millions of Americans bought into the real estate boom with adjustable mortgages and home equity loans. Now rising interest rates are forcing them into agonizing financial choices.