Fannie Mae announced that it is extending the foreclosure moratorium to homeowners in the Gulf who were hard hit by Hurricanes Katrina and Rita to August 31, 2006.
Posts Tagged ‘Consumer Rights’
Mass AG Targeting Foreclosure ‘Rescuers’
Monday, May 15th, 2006
More good news on a dreary day: Today Massachusetts Attorney General Tom Reilly announced that his office is investigating “several individuals and businesses who allegedly target homeowners by offering to ‘rescue’ them from foreclosures, but instead trick them into deeding over their property.” He urges homeowners who think they have been victims of a foreclosure “rescue” scam to call the Consumer Hotline at 617.727.8400.
His office also issued a consumer advisory warning homeowners not to fall victim to mortgage foreclosure scams.
“Families in Massachusetts are being squeezed on all sides – from soaring gas prices to utility and health care costs.” AG Reilly said. “Now as foreclosure rates are going up, we’re hearing complaints about companies taking advantage of people who are trying to save their homes. Consumers need to be careful. I urge homeowners facing foreclosure to talk with licensed professionals, including lawyers and real estate professionals, before entering into any agreement or arrangement involving their home.”
Good News On a Rainy Day
Monday, May 15th, 2006
The Northeast is getting record rainfall, and I think most people are just hoping for a little sunshine…and for some of us, warm, dry socks. While rainy days and Mondays might get folks down, there is good news coming out of Washington:
The Internal Revenue Service has canceled the tax-exempt status for some of the nation’s largest educational credit counseling services after audits revealed they exist mainly to prey on debt-ridden customers, Commissioner Mark Everson said Monday.
A Closer Look at Sallie Mae
Sunday, May 7th, 2006
Tonight’s 60 Minutes highlights Sallie Mae, a once government and now private entity that administers student loans.
Among the people interviewed in the segment is the founder of this site: Student Loan Justice. Harvard bankruptcy professor Elizabeth Warren is also interviewed
Remember, there’s no relief and there is no fresh start for the vast majority of people burdened by student loans. It’s easier to discharge almost all other debt, than it is to discharge a student loan.
Lighthouse Credit to Settle with FTC
Sunday, May 7th, 2006
The Federal Trade Commission announced this week that Lighthouse Credi Foundation, Inc. along with co-Defendants will pay more than $2.4 million to settlle charges stemming from a complaint filed by the FTC in the US District Court for the Middle District of Florida.
According to the FTC’s complaint, defendant Integrated Credit Solutions, Inc. solicited consumers for Lighthouse’s debt management plans by leaving prerecorded messages on home answering machines stating that the consumer had been approved through “a certified non-profit nationwide program” to consolidate credit card debt before the next billing cycle at interest rates “as low as 1.5%.” People who responded to the messages were told that the program included counseling on how to manage finances, and that a monthly administrative fee was tax-deductible because Lighthouse was a nonprofit organization. Consumers agreed to pay large fees to enroll in debt management plans based on these representations, the complaint alleges.
Pay Attention to this Legislation
Sunday, May 7th, 2006
In today’s Hartford Courant, Washington Post columnist Michelle Singletary comments on the amendments to the FDCPA to exempt “check-diversion” companies now under consideration in the Senate:
Every consumer ought to be paying attention to this legislation because if it passes (it’s already been approved by the House and is now being considered by the Senate), it will erode our consumer rights – not our right to bounce checks, but our right to be treated fairly when we do make a mistake.
See the May 3 blog entry for additional informaton on this legislation.
Bribery, Debt Collection and the IRS
Thursday, May 4th, 2006
USA Today is reporting today:
A private debt-collection firm tapped by the IRS to seek repayment from Americans who owe back taxes has been tangled in legal controversy, including a bribery scheme involving a collection contract in Texas and a federal investigation of another collection deal in Louisiana.
An interesting development indeed.
The Secret History of Credit Cards
Friday, April 7th, 2006
The Secret History of Credit Cards, a show produced by PBS’ Frontline, is a revealing documentary on how our plastic money system has evolved….and also how credit card companies can get away with charging upwards of 20% interest.
Massachusetts February Foreclosures Up
Tuesday, April 4th, 2006
The Boston Business Journal is reporting today that foreclosures were up in February.
Finding (more) Foreclosure Fraud(s)
Friday, March 31st, 2006
Here’s another interesting report of a mortgage scam. This one is out of Salt Lake City: KUTV.
And more detailed report on what’s going on in Illinois.
Finally, here’s something that I fear we’ll be seeing more of in the months and years ahead. In a Kansas City federal court, a former loan officer and a former real estate appraiser were sentenced for their part in a mortgage fraud scheme. They would help consumers get inflated mortgages by using inflated appraisals. Both got five years probation and both have to pay more than $1 million in restitution. The loan officer worked for Ameriquest Mortgage, a company which has agreed to pay the Commonwealth of Massachusetts millons in restitution for similar practices which ultimately left homeowners with debt they could not handle.