Posts tagged as:

debt

Minnesota Needs Debt Buyer Regulation

March 1, 2010

Minnesota Representative Joe Mullery and Senator Ron Latz recently introduced a bill that would prevent debt buyers from filing a lawsuit without the ability to prove they have the right to collect a debt.
Why the need for the rule? Debt buyers and collectors file tens of thousands of lawsuits against Minnesota consumers every year, and [...]

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Debt Collection Help: Free Resources

February 26, 2010

Getting called or served with a lawsuit by a collector is a pain, at best. You can help yourself deal with debt collection with free information and tools online, but not everything you find will actually help. Here is a selection of resources that will:

If you are contacted or sued by a debt collector, use [...]

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Minnesota Attorney General Sues 6 Debt Settlement Companies

February 22, 2010

Minnesota Attorney General (AG) Lori Swanson has sued 6 debt settlement companies on the grounds they were not licensed to do business in Minnesota and overcharged consumers by hundreds of thousands of dollars. She commented:
“People who are swimming in debt are often desperate for a life preserver, but they should know that debt settlement companies [...]

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Maryland Judge Dismisses “Tens of Thousands” of Mann Bracken Lawsuits

February 2, 2010

Mann Bracken, the enormous debt-collection law firm, recently closed its doors, leaving hundreds of thousands of consumers unable to resolve their debts. Since Mann Bracken sues on many of its debts, the sudden closure also left courts in confusion.
One Maryland judge decided to take drastic measures. According to The Baltimore Sun, he dismissed “tens of [...]

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What Debt Collectors Can and Cannot Do

January 26, 2010

The Federal Trade Commission has posted a video on their website and YouTube outlining consumers’ rights when contacted by debt collectors.
If you have been contacted by a debt collector, watching the video is a good place to start learning about your rights.
(photo: bisgovuk)

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Attorney Refuses to Pay Bank of America Credit Card Debt

January 20, 2010

California attorney Ben Pavone refuses to pay his credit card debt until Bank of America lowers his interest rate. Pavone has also threatened to sue Bank of America if they try and ruin his credit because of his non-payment.
Pavone asked BOA for an increased credit limit a few months ago, when he needed the extra [...]

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Is Mann Bracken Out of Business?

December 22, 2009

I got the word a few days ago that gigantic debt collection law firm Mann Bracken was going under. Atlanta consumer lawyer Tim Cook says Mann Bracken’s lawyers are out of work and the phones are instructing callers to contact their creditors. Could it be?
It could. Mann Bracken has been under fire in Georgia, and [...]

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More Consumer Rights On the Way?

November 18, 2009

A new report from the Government Accountability Office (GAO) urges legislators to revise the Fair Debt Collection and Practices Act (FDCPA) to give consumers more rights.

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The New Debtors’ Prison

October 21, 2009

Debtors’ prison was supposedly eliminated in the United States in the 19th century, but in the 21st, people are still being arrested and tossed into jail for debts. It just takes an extra step these days.
This morning, I sat in court and watched a debt collector get six bench warrants for debts under $1,000. I [...]

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Three Debt Assistance Companies Sued by the Minnesota Attorney General

September 24, 2009

The Minnesota Attorney General took action against three companies that promised to lower customer’s interest rates on credit cards for high fees.
Swanson filed suit against Priority Direct Marketing, Clear Financial Solutions, and Moneyworks, LLC. The suit alleges that all three companies charged high up front fees, between $999 and $1,995, and promised to lower the [...]

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Debt Collectors Can Still Use Robocalls

September 2, 2009

As of September 1, 2009, telemarketers cannot make prerecorded commercial calls to customers without obtaining written permission in advance. Debt collectors, however, do not fall under the new FTC rule, because their calls are apparently “informational messages.”
Phone calls from debt collectors are still subject to the FDCPA, of course.
Other purely informational messages include flight notifications, [...]

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Consumer Complaints in 2008: the Top 10

September 1, 2009

The National Associaion of Attorneys General released their list of the top 10 sources of consumer complaints for 2008, and the winner is: debt collectors!
No surprise there, after all, what other profession has been the bane of the poor since before Christ? Evil enough that Shakespeare took time to write about one in Venice.
Second place, [...]

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Debt Collection Abuse on Display

August 20, 2009

New York Attorney General Andrew Cuomo sues some of the most abusive debt collectors. The first consumer did not even owe the debt, but ended up paying $900 just to make the abuse stop!
Embedded video from CNN Video
This kind of behavior is why the Fair Debt Collection Practices Act exists. If you are getting calls [...]

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New Credit Card Rights For Consumers

August 20, 2009

Starting today, credit card holders have more rights:

More time to pay. Credit card companies have to mail bills 21 days in advance of the billing date.
More time to reject changes. Card holders now have up to 45 days to reject rate increases.
More time to pay off existing balances. Card holders now have the option of [...]

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Debt Collection Scammers Often Worse Than the Real Thing

August 17, 2009

The Better Business Bureau (BBB) has put out an emergency alert regarding bogus debt collectors that have recently been praying on consumers. The fake debt collectors are often just as nasty as real debt collectors can be, if not worse.
If you are contacted by a debt collector and think it is a scam, here are [...]

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Debt Collectors and Wrong Numbers: How to Handle a Case of Mistaken Identity

August 5, 2009

Debt collection is something that everyone has to deal with. Case in point: a debt collector once left a message on my mom’s answering machine, where I had not lived for eleven years. My credit report was squeaky clean—I checked—but apparently there is another Sam Glover out there with worse luck.
Whenever you get a message [...]

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Kucinich right on arbitration, wrong on courts

July 30, 2009

Dennis Kucinich and his House Domestic Policy Subcommittee just released a report on arbitration abuse in the National Arbitration Forum (PDF). In the report, the subcommittee stated that “[c]onsumer arbitration lacks the safeguards that have been designed into our judicial system by our Constitution, by state and federal statutes, and by centuries of judicial decisions” [...]

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Bankruptcy lawyers succumb to economy-induced stress

July 29, 2009

In its monthly newsletter, the National Association of Consumer Bankruptcy Attorneys mentioned that several bankruptcy attorneys recently committed suicide, had heart attacks, or gave up on bankruptcy practice entirely to get away from the stress.
Consumer rights lawyers, including bankruptcy attorneys, see some of the worst effects of the recession. But until now, I did not [...]

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Credit score basics

July 23, 2009

All the information out there on credit scores can be confusing. At the heart is the FICO score, which is what lenders use to determine your riskiness as a borrower.
Here are the main elements of the FICO score:

Payment history – Account payment information on specific types of accounts you may have, such as credit cards, [...]

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Link roundup, week of July 12

July 12, 2009

Lots of credit card news this past week, plus a few other highlights and great tips:

Credit card companies are jacking up fees (again) as consumers pay down debt | Alpha Consumer
Figure out how long you will be in debt (seriously, do it; you may be shocked) | Federal Reserve Board
Back on the wagon already, Morgan [...]

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