Archive for March, 2007

At sites like Consumerist, many commenters deride borrowers for getting involved in loans they cannot afford. However, this knee-jerk response ignores some of the basic features of the subprime market, one of which is that borrowers (a) didn’t know they couldn’t afford the loan, and (b) may have qualified for a loan they could afford.
Like [...]

Well, it was my last day, and I thought the Consumerist could use a good argument. So I gave them one. Tort reform is a tough one, and that thread on Consumerist made me realize that non-medical malpractice doctors are in danger of getting caught up in a maelstrom of ill will towards med-mal cases. [...]

One of the main reasons that lawsuits start–or that people give up once they have been screwed–is lack of good negotiating skills. This isn’t always the case, of course. Some corporations, landlords, customer service representatives, etc., are simply intractable. If you negotiate well, you may just get what you want. But even if you don’t, [...]

Following on the heels of a media blitzkrieg on the credit industry, including payday lending, credit card companies, and the subprime mortgage industry, Democratic legislators in both houses of Congress are moving forward with legislation to curtail predatory lending practices. From the NY Times article:
The provisions include requiring mortgage lenders to determine if borrowers have [...]

I won’t be posting a lot to this blog in the next few days, as Ben Popken asked me to fill in for him at the Consumerist while he bakes his pasty whiteness during a much-needed vacation.
Posts at the Consumerist:

Attack Of The Zombie Brands!
H&R Block Opens Branch In SecondLife; Virtual Freakshows Line Up To Get [...]

Newer copiers can retain scanned data–like those tax returns you ran through in hopes of an early payment–and an enterprising identity thief can get access to all that personal and financial information. The article at Fox Twin Cities doesn’t mention how difficult it would be for an identity thief to simply re-print the last few [...]

eChecks have been increasing in popularity in recent years, with more and more stores simply running your check like a debit card and handing it back as your receipt. But starting tomorrow, stores will have a new way to clear checks electronically, “Back-Office Conversion.” It allows banks to send digital scans of your check rather [...]

Hispanics hold roughly 40 percent of mortgages in the troubled subprime mortgage market, a sector that caters to those with damaged credit or little borrowing experience, according to the Center for Responsible Lending.
But Hispanics aren’t necessarily risky borrowers. They may just not have participated in the banking industry the same way as other American borrowers. [...]

Starting July 1, residents of Washington, D.C., will be able to “freeze” their credit reports for $10/credit bureau. A credit freeze prevents the credit bureau from releasing any information from the credit report without the consumer’s authorization. Sonya-Smith Valentine recommends that consumers who have no need for credit freeze their reports until a potential creditor [...]

The new documentary, Maxed Out, got some well-deserved hype on Nightline tonight. It was a great movie, gripping, and well worth the view. One particularly shocking effect of debt collection that Maxed Out brought out is how often debtors in over their heads consider suicide. Suicide because of debt.
It’s always amusing to watch apologists from [...]

I was in court this morning, and showed up early, as usual. The hearing before mine was for attorney fees incurred in collecting a debt. The debt collection law firm was Messerli & Kramer, famous for its “unlawful and bad faith tactics.” The debtor represented himself, and actually did a fair job, although he kept [...]

If you have been following the red light camera lawsuit as it works its way up through the Minnesota court system, you might be interested in watching the arguments presented at the Minnesota Supreme Court. Here’s the link to the streaming video.
The focus of the case is whether or not the red light camera ordinance, [...]

I have been rebuilding my hard drive and watching infomercials this weekend. Apparently Focus on Foreclosure is in town this weekend. The infomercial repeats it’s goal over and over again: “create a win-win solution for families in distress while making a profit for yourself.” The well-dressed announcer says repeatedly “no one is taken advantage of [...]

[from Consumerist]

“Steering” is when real estate agents point home buyers to a title company, usually in a casual way. However, real estate agents also get referral fees much of the time, an illegal practice. The Minnesota Commerce Department has finally decided to come down on the practice, and is closing at least 35 title companies and [...]

Class actions play an important role, particularly in consumer litigation. While one-at-a-time litigation works well in many cases, some legal issues–the tobacco lawsuits are a good example–cannot be effectively litigated piecemeal. Unfortunately, according to Brian Wolfman at Cosumer Law & Policy, the Texas Supreme Court is doing its best to bury class actions entirely. Wolfman [...]

I’m sure everyone has already heard about the RIAA’s new money-making scheme, p2plawsuits.com. Instead of paying lawyers to sue filesharers, the RIAA is now “offering” filesharers the option of paying up before a lawsuit is filed. Apparently, the RIAA is looking for about $1,000 and a pledge never to download illegally again.
Of course you can [...]