This first appeared on May 27, 2008. Unfortunately even today, there are people looking to scam those who can least afford it. If you’re facing foreclosure or know someone who is, this is an important read.
Archive for the ‘Consumer Rights’ Category
Loan Modification Scams
Friday, February 19th, 2010
As more and more people try anything to avoid losing their homes, more and more people are getting scammed.
Here are two links with important information for homeowners contemplating modifications:
This from The Christian Science Monitor:
TransUnion, a credit reporting company, released its own numbers on Tuesday. At the end of the fourth quarter last year, it said, 6.89 percent of all US mortgage payments were at least 60 days past due. That was an all-time high.
Enter unscrupulous loan-modification companies. They advertise on late night-television or radio shows and sound as if they are linked to the Obama program.
“Many of them have the word ‘hope’ in their phone number,” says Jonathan Mintz, commissioner of the Consumer Affairs Department in New York. “But it’s a false hope.”
And here’s a link mentioned in the same article that describes, among other things, 6 Facts You Should Know About Loan Modification Scams.
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Under Water, Walking Away & My Two Cents
Tuesday, December 1st, 2009
Over the holiday weekend, there were a number of press reports about a discussion paper, Under Water and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis. Reportedly Brent T. White, an Associate Professor at the University of Arizona’s James E. Rogers College of Law advocates that homeowners who are underwater (meaning, the outstanding mortgage balance[s] is more than the value of the home…is now, or in some cases, will ever be) should simply walk away from their obligations and not look back without feeling a bit of guilt. Obviously this all got my attention, but before I took to this here blog and declared “You Have Got to be Kidding Me!” (which at first glance seemed like the most expedient way to address it), I opted to read the discussion paper (rather than just the abstract). Before you click the link below, pour yourself a fresh cup of tea.
Here’s my take:
When the Ex Files Bankruptcy
Wednesday, November 25th, 2009
The relationship is over, but there are still lingering issues that hold you together. Perhaps it’s child support, health care, property distribution or other matters. If your ex files bankruptcy, it is very important you understand your rights and your responsibilities – as well as your options.
NY AG Seeks to Vacate 100,000 Judgments
Wednesday, July 22nd, 2009
Way back in 2005, I wrote about a need to reform our state rules on returns of service. You’ll find that article here. In August of 2006, then Mass. Bar Association President Warren Fitzgerald wrote a column in the Boston Globe also calling for reform based on the failure of small claims defendants to get any meaningful notice of a suit being filed against them. Today we’re learning that in New York, Attorney General Anthony Cuomo has filed suit to vacate over 100,000 judgments that were entered against consumers who were not properly served. (more…)
Thinking About a Consult?
Tuesday, July 21st, 2009
Today, as I found myself on the phone repeating myself – a lot. It then occurred to me that I could probably explain how our consult process works here on the website. In other words, how do you get from reading this website and digesting the information to getting some face-time with a lawyer (i.e., me).
Here’s how.
Another Good Reason to Stay Close to Home
Wednesday, May 20th, 2009
One of the best things about summer is the local produce you’re likely to find not just in the supermarket, but on road side stands. While I admit I’m a bit biased, when I was a kid, there was no better place to get tomatoes and sweet corn than the small farms on Aquidneck Island. That’s probably going to tick-off the good folks in Little Compton, but hey, I know what I know. I am sure that I can find a place online that would ship them to me, but it’s not the same as pulling over to the side of the road, smelling the air, and reaching into your pocket for a few bills to get some good stuff. Law firms advertise online, as do credit counselors and so-called debt settlement and consolidation firms…and there are hundreds if not thousands of companies and firms offering assistance to people struggling with debt. Is it a good idea for Massachusetts consumers stay “local” when they are looking for resources to help them deal with their debt? This very question came up today when I was talking with a prospective client.
For a variety of reasons, the family is in a lot of debt and exploring options. There’s bankruptcy (and I can help them with that), and there’s credit counseling (which I can offer a recommendation). There’s also debt consolidation and debt settlement, but ironically, there do not seem to be too many local companies that offer such services. Perhaps it is because those services are usually little more than a scam. Perhaps it’ because it’s been tried
The clients were considering the “Consumer Law Group, PA” located in Florida. I like Florida – I have not been there in years – but it’s a pleasant place to be. And while I like oranges, I don’t feel the need to go to Florida to get them.
Fortunately, the client did some research on this outfit on their own. They learned that the “Consumer Law Group, PA” had only been around since November 2007. They found websites where people had some very unfavorable things to say. More than one person, actually. They also learned that in less than two years period, they earned an exceptionally low BBB rating. That was their wake up call. It dawned on them: “why are we not dealing with a local business who can help us?”
While this is arguably yet another reason to stay clear from any outfit claiming to offer debt consolidation or debt settlement services (which again, are a scam), I think it is also important to consider going with someone local. It doesn’t matter if it is an attorney, a credit counselor or a lender who may be trying to help you refinance…. why go with an out of state outfit state? After all, we are talking about your money, your life, your family and your future.
For those reasons, it’s important to get good help from someone who knows what they are doing. And frankly, if these issues are important enough for you and your family, then you should be able to look that professional square in the eye. That’s hard to do when they are a few states away.
Does the Cramdown Bill Have a Chance of Passing?
Wednesday, April 22nd, 2009
A report from Housing Wire suggests that the answer may be ‘no’.
“[Senator Richard] Durbin [D-Ill] had a hell of a time coming up with a bill that’d pass the Senate,” said Burt Ely, a banking expert and principal of Ely & Co. “He’s watered it down so much that his proposal now limits the accessibility or intention of the bill. Even if he got it passed, the gulf is so big it wouldn’t even get out of [the House] conference committee to be enacted into law.”
Not surprisingly, consumer advocates are seeing red.
“With Durbin, Dodd and Reid doing the bidding for the banks, this current state of the cramdown bill will have virtually no impact for at-risk borrowers,” says Bruce Marks, CEO of Neighborhood Assistance Corp. of America, a mortgage broker and consumer activist. “The Senate Democrats have made no measurable actions this year to help the housing crisis.”
Here’s Another Reason Why You Actually Need to Read Credit Card Agreements
Friday, April 3rd, 2009
After reading a 9th Circuit Court of Appeals decision issued yesterday, I’ve been struggling. There’s an important legal issue to discuss, but at the same time, I’ve been struggling with the title. I wanted to use a title that was little kitschy, because after all, that’s what makes a blog even moderately entertaining and worth visiting. I think. I also thought the issue justified my resorting to something profound. Something that makes the reader go “hmmm…so true.” Then, there’s a part of me that just wants the decision to speak for itself. So here goes.
In July 2001, Robin got a Providian credit card. The terms of the account – on that slip of paper that people have a tendency not to read required that it be governed by New Hampshire law. If you have not heard of Providian, spend some time on the net searching them out. You’ll get the sense that they weren’t a particularly consumer-friendly company, unless your idea of being consumer-friendly is only to pretend to be friendly. But I digress.
She defaulted on the card in November 2001. We don’t know why she defaulted. Don’t know if it was a lost job. A health matter. Don’t know if she was just being irresponsible. We just don’t know and I cannot assume what I do not know (and what’s not discussed in the decision). Her bill was about $3,000 with an interest rate that was high enough to be flirting with 25 percent. The New Hampshire statute of limitations on credit cards is three years.
In December 2004, more than three years later, Robin received a letter from a debt buyer attempting to collect the debt. The debtor buyer than sued her. After that suit was voluntarily dismissed, she sued the debt buyer claiming violations of the Fair Debt Collection Practices Act for attempting to collect a debt that was time-barred.
The Elephant in the Room: Married Same-Sex Debtors
The decision to seek bankruptcy protection is never easy, and when two people are involved, it is not necessarily easier. Married opposite-sex debtors have the option of seeking bankruptcy protection jointly in one case. But as a growing handful of states recognize same-sex marriages or its legal equivalent (“unions”), and as the legitimacy and constitutionality of the Defense of Marriage Act (or DOMA) continues to be litigated in courts across the country, same-sex debtors seeking bankruptcy relief face even tougher decisions.
(more…)
Tags: Commentary - Legal, Consumer Rights, Defense of Marriage Act (DOMA), Joint Debtors
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