Archive for March, 2008

In an odd sort of thank-you note, Bank of American will give two top Countrywide executives, CEO Angelo Mozilo (pictured) and President David Sambol, $19 million in stocks. Bank of America took over Countrywide, the company made famous by writing loans all but guaranteed to fail. Countrywide’s loose lending habits were a significant contribution to [...]

What is your contingency plan if the worst were to happen? In the present economy, everyone needs a backup plan.
CNN has a story on Patricia Guerrero, a single mother of two living in Altadena, California. Until Februry, when she was laid off, Guerrero made $70,000 per year. That is a pretty good salary, but not [...]

In case you have been living in a box for the last 12 months, mortgage fraud is a big problem. It is very hard, sometimes impossible to help the defrauded consumers, since fraudsters tend to refuse to cooperate in civil lawsuits, and judges are reluctant to compel them to do so. Uncollectible default judgments are [...]

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Last year, New York passed its New York State Passenger Bill of Rights which, among other things, requires an airline to provide food, water, clean toilets, and fresh air to passengers trapped in a plane delayed on the ground. The Second Circuit U.S. Court of Appeals put the kibosh on the brand-new Passenger Bill of [...]

We saw that the 2008 presidential candidates seemed generally uninterested in consumer issues when we examined their voting records. However, the three remaining front-runners have been devoting some rhetoric to issues like credit cards and the subprime mortgage mess. The Red Tape Chronicles put together a summary of the candidates’ plans to address consumer issues.
McCain [...]

Surprise Surprise . . . mortgage rescue scams on the rise!!! Beware of anyone offering to rescue your home from foreclosure. If you are tempted, find a consumer lawyer to review the deal prior to closing.

Representing yourself in court–appearing pro se–is one of the more difficult things to do, although many people do not seem to realize it. Judges and attorneys dread the pro se party, however. As I have said before, the court system is a bit like visiting a foreign country. If you don’t speak the language, nobody [...]

According to the FTC, consumer complaints about debt collection abuse were up significantly in 2007 (PDF link). This is hardly surprising, as debt has been plentiful and cheap lately. Complaints will almost certainly go up in 2008, since credit card borrowing is way up along with credit charge-offs.

The U.S. Supreme Court likes business. So much so that it decided 22 of 30 business cases last term unanimously in favor of business, and “Ruth Bader Ginsburg, Stephen Breyer and David Souter each went out of his or her way to question the use of lawsuits to challenge corporate wrongdoing . . . .” [...]

Or if it does, it is doing a pretty good job of hiding it. Last Thursday the House Financial Services subcommittee was ready to hear testimony of, among notable others, actual consumers concerning the Credit Card Bill of Rights proposed by Representative Carolyn Maloney. Unfortunately, it seems the committee members’ hypocrisy goes only so far, [...]

Credit card rates are at a two-year low according to indexcreditcards.com. Now is the perfect time to negotiate a lower rate or jump ship to a better card with a lower rate. [via Alpha Consumer]

This is at once quite funny and quite instructive.

In response to Nick’s post in which he asked why people do not call a lawyer, several responded that the cost of hiring an attorney was prohibitive.
Let me say this loud and clear: Most consumer lawyers will not charge you for a consultation. Further, most will not charge you for their services unless they win [...]

Hey, 2 questions I would like you to answer:
1. What information are you looking for when you come to this website?
2. When people feel that they have been ripped off, defrauded, or harassed enough that they are willing to post a complaint at one of the many websites for complaints, why don’t the at least [...]

Landlords routinely ask for a security deposit–usually one month’s rent–when renting. The security (or damage) deposit is a way for the landlord to recover for unusual damage. Holes in the wall, for example, or stains in the carpet. It is not a way for a landlord to fix damage that is the result of ordinary [...]

What you need to know about bogus charges on your phone bill | ABC News

Looks like YouWalkAway.com was one of those “right place, right time” startups. Bloomberg reports that foreclosures are skyrocketing as more and more homeowners just give up. Mortgages are secured loans, after all. Banks just never counted on having to accept the collateral instead of the payback. [via Consumerist]

Lenders around the country are apparently offering 9-year auto loans mortgages. I am willing to make a sizable wager that 90% or more of the people who take out a 9-year auto loan will be upside-down on their loan when they trade in their whip for a shiny new one.
[photo: Kerry A Adamo]
P.S., I am [...]

As in other states, Minnesota courts have started to find that defendants charged with driving under the influence have the right to confront their accuser–in these cases, a breathalyzer. But CMI, the Kentucky firm that makes the breathalyzer unit used in Minnesota, has long refused, resulting in overturned convictions, reinstated licenses, and a lot of [...]