Background
“The Federal Reserve Board issued enforcement actions against four large mortgage servicers
–GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and EMC Mortgage Corporation–in April 2011. Under those actions, the four servicers were required to retain independent consultants to review foreclosures that were initiated, pending, or completed during 2009 or 2010. The review is intended to determine if borrowers suffered financial harm directly resulting from errors, misrepresentations, or other deficiencies that may have occurred during the foreclosure process. The servicers are required to compensate borrowers for financial injury resulting from deficiencies in their foreclosure processes.
If you had a mortgage loan on your primary residence and believe you were financially harmed during the mortgage foreclosure process by any of the four servicers in 2009 or 2010, you can request an independent review and potentially receive compensation. The four servicers are required to make the independent reviews available to borrowers as part of their compliance with the April 2011 enforcement actions.
A number of servicers supervised by the Office of the Comptroller of the Currency (OCC) are also required to conduct independent reviews. (See below for the full list of servicers.)
Eligibility for Review
Borrowers are eligible for an independent foreclosure review if
- the property securing the loan was the borrower’s primary residence;
- the mortgage was in the foreclosure process (initiated, pending, or completed) at any time between January 1, 2009, and December 31, 2010; and
- the mortgage was serviced by one of the following mortgage servicers: Read More→
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Consumers Beware! IRS Warns of Email Scam
By · CommentsThe Internal Revenue Service continues to warn consumers that it does not initiate taxpayer contact through email. If you received such an email, click here to view the IRS’s suggested course of action. As always, if you receive an unsolicited email demanding that you provide money or other personal information to any government agency or private company, you should proceed with extreme caution!
“Remember, the IRS does not initiate e-mail communication with taxpayers regarding EFTPS or tax account matters.
The IRS does not …
… request detailed personal information through e-mail.
… send any communication requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.”
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The FTC is warning small businesses that an email with a subject line “URGENT: Pending Consumer Complaint” is not from the FTC. The email says that a complaint has been filed with the agency against their company. The FTC advises not to click on any of the links or attachments with the email. Clicking on the links may install a virus on the computer.
The FTC’s advice: Delete the email. For more information on malware, visit www.OnGuardOnline.gov/malware.
Source: http://www.ftc.gov/opa/2011/09/scamemail.shtm
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A Discussion of the FDCPA and Consumer Bankruptcy
By · CommentsAttorney Good-Ashman\’s appearance on BCTV\’s Ask A Lawyer program.
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The New Consumer Financial Protection Bureau
By · CommentsIn July 2010, a new federal agency was created to help protect consumers. It is called The Consumer Financial Protection Bureau. The CFPB’s tasks include:
- Conducting rule-making, supervising, and enforcing Federal consumer financial protection laws
- Restricting unfair, deceptive, or abusive acts or practices
- Creating a center to take consumer complaints
- Promoting financial education
- Researching consumer behavior
- Monitoring financial markets for new risks to consumers
- Enforcing laws that outlaw discrimination and other unfair treatment in consumer finance.
While the CFPB is still gearing up its operations, it has launched a new website full of helpful information for consumers, including information regarding:
- Bank Accounts
- Budgeting
- Credit Cards
- Credit Counseling Agencies
- Credit Reports and Credit Scores
- Debt Collection
- Gift Cards
- Home Foreclosure
- Home Ownership
- Investments
- Student Education Loans
If you are facing a consumer law issue, there is help available! Contact our office for a free consultation with a knowledgable consumer law attorney today!
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FBI Warns of Payday Loan Collection Scam
By · CommentsIn a recent post, the Federal Bureau of Investigation warns of a telephone collection scam related to delinquent payday loans where the scammer calls the victim and demands payment for a delinquent payday loan in order for the victim to avoid legal consequences. These “collection” calls usually involve outrageous threats, including arrest or physical violence, upon the victim’s refusal to pay.
The FBI warns that these scams are particularly effective because the scammers often have accurate information regarding the victim such as a Social Security number, date of birth, and other similar personal information.
If you are the victim of such a call, the FBI recommends the following actions:
- Contact your bank;
- Contact the three major credit bureaus and place an alert on your file;
- Contact your local law enforcement if you feel you are in danger; and
- File a complaint with the FBI.
If you have been harassed by a debt collector, contact our office to discuss your options.
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The Federal Trade Commission published an informative article discussing federal benefits in your bank account that may be exempt from garnishment by your creditors.
Click here to view the Article: Creditors Seeking Federal Benefits in Your Bank Account? Understanding Your Rights.
The Article provides informative details regarding:
- What federal benefits are ordinarily exempt from garnishment.
- How does my bank account get garnished?
- When do banks freeze accounts?
- What should I do if my bank account is frozen?
If you are facing garnishment of your bank account, or any other consumer-related issue, contact our office for a free consultation with a consumer attorney to discuss your options.
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WSBTV of Atlanta, Georgia recently ran a segment documenting the abusive collection practices of Mann Bracken. WSBTV reports that the Georgia Attorney General is currently suing Mann Bracken over alleged abusive practices.
The segment airs images of Mann Bracken’s infamous 14th floor, described as a “boiler room” which houses Mann Bracken’s abusive collection unit. The segment details the following abusive collection acts by the firm:
- A recording of a call in which a Mann Bracken collector chides a debtor for not affording the debt the same priority as a utility payment;
- Mann Braken’s refusal to heed a consumer’s protest against their collection attempts on the basis that the debt was not owed by her and where the original creditor admitted in writing that the debt was the product of fraud and was not owed by the consumer;
- Attempts to collect debts by placing harrassing telephone calls to elderly relatives;
- Threats to take the consumer’s home;
- Lawsuits against debtors on debts that are clearly time-barred.
Steve Koval, a consumer attorney, comments that Mann Bracken knowingly pursues abusive debt collection tactics because such tactics are profitable, even after accounting for the inevitable FDCPA based lawsuits filed against them.
The segment closes with a very interesting encounter with William Christopher Bracken, III, a co-founder of the firm.
The video can be viewed by clicking here.
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On April 16, 2009, a Montana jury decided to punish debt collection law firm Johnson, Rodenburg and Lauinger for violating the Fair Debt Collection Practices Act (”FDCPA”) as well as Montana’s consumer protection law, awarding $250,000 in emotional distress damages, $1,000 in statutory damages, $60,000 in punitive damages (this is the maximum amount of punitive damages permitted by Montana state law). A question remains whether the Plaintiff is entitled to even more money under Montana’s consumer protection law.
The jury rejected the debt collector’s argument that the disabled victim should only be entitled to $500 in damages. The jury found that the debt collector violated the law by suing on a debt that was barred by Montana’s statute of limitations, adding attorney fees to the debt not permitted by the original credit card contract, and by serving abusive requests for information upon the victim.
John Heenan, Esquire of Heenan Law Firm PLLC located in Billings, Montana did an incredible job of representing the Plaintiff in this case.
More details about the case can be found in the Billings Gazette by clicking here.
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The following are examples of conduct that is not permitted in the collection of debts by a debt collector:
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
- use threats of violence or harm;
- publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
- use obscene or profane language; or
- repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
- falsely claim that they are attorneys or government representatives;
- falsely claim that you have committed a crime;
- falsely represent that they operate or work for a credit reporting company;
- misrepresent the amount you owe;
- indicate that papers they send you are legal forms if they aren’t; or
- indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
- you will be arrested if you don’t pay your debt;
- they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
- legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
Debt collectors may not:
- give false credit information about you to anyone, including a credit reporting company;
- send you anything that looks like an official document from a court or government agency if it isn’t; or
- use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
- try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
- deposit a post-dated check early;
- take or threaten to take your property unless it can be done legally; or
- contact you by postcard.
If you have been the victim of an abusive debt collector, contact us.
Source: Federal Trade Commission
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