Blog Posts Tagged with Credit and Loans

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Advertise auto promotions car-fully

“$1 gets you out of your current loan or lease!” According to Trophy Nissan in the Dallas area, consumers could end their loan or lease for a buck – less than the cost of one of those air fresheners hanging from the rearview mirror. Trophy also promised to “match your tax refund so you can use it for a down payment!” Those are just two of the claims the FTC challenged as deceptive in a proposed settlement with the dealership.

Play your cards right: 7 tips if your small business accepts credit cards

Paying with plastic is a convenience for consumers, but a cost for companies. So small businesses are always looking for a penny to pinch in what they pay to process credit and debit cards. Enter unscrupulous pitch people who resort to impersonation, erasures, fine print, half-truths, and flat-out lies to get a business owner’s signature on a contract. When you're pricing processing, the FTC has advice on protecting yourself from a B2B bamboozle.

A loan again?

Say a consumer is thinking about buying something. They give a company information that would be necessary if they ultimately decide to make the purchase.  Now suppose the company auctions off that data to the highest bidder, who completes the transaction without ever getting the consumer’s consent to the terms.

This time it's personal

Ask most people to name the streets in the neighborhood where they grew up and they’ll tell you Maple Lane or Sycamore Drive. Ask a military kid – ask this military kid – and she’ll mention Tank Destroyer Boulevard and Hell on Wheels Avenue. Years ago, if you drove down Tank Destroyer and exited the East Gate of Fort Hood, the neon signs advertising “zero down,” “E-Z credit,” or “low monthly payments” lit up the Central Texas sky like a discount aurora borealis.

False statements to credit bureaus: Nothing to CROA 'bout

It’s called CROA – the Credit Repair Organizations Act – and it was put in place to protect people battling their way back from financial adversity.  Given the long history of questionable practices in this sector, CROA makes it illegal to charge people upfront before services are rendered.  It also bans misleading statements to credit bureaus about consumers’ credit records.  There’s been lots of talk about the harm posed by false negative information in credit reports.  But in an interesting twist,

Hat trick? FTC charges violations in auto loan servicing, debt collection, credit reporting

Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges.  (Shemp doesn’t count.)  But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers.  But there’s relief on the way in the form of a

Judge rules on reach of FTC Act

When the FTC sued payday lender AMG Services in 2012, the complaint charged the defendants with a host of deceptive and unfair practices aimed at consumers already struggling to make ends meet.  Undisclosed fees and debt collection calls that threatened arrest were just a few of the allegations.  The defendants countered with an interesting defense:  that their affiliation with American Indian tribes rendered them beyond the reach of the FTC Act.  A U.S.

8 advertising potholes auto dealers should avoid

In a drive to encourage truth in auto advertising, the FTC has announced Operation Steer Clear – a coast-to-coast law enforcement sweep focusing on deceptive TV, newspaper, and online claims about sales, financing, and leasing.  If you have clients in the auto industry, the lessons of Operation Steer Clear can help keep them on the right track.

Magistrate Judge's finding: Payday lenders covered by FTC Act even if affiliated with American Indian Tribes

In an FTC action challenging allegedly illegal business practices by a payday loan operation affiliated with American Indian Tribes, a United States Magistrate Judge just issued a report and recommendation on the scope of the FTC Act.  Attorneys will want to give the order a careful read, but here’s the need-to-know nugget:  Over the defendants’ vigorous opposition, the Magistrate Judge concluded that the FTC Act “gives the FTC the authority to bring suit against Indian Tribes, arms of Indian Tribes, and employees and contractors of arms of

Shell game?

“Payment processing” used to involve standing in the checkout line and handing the cashier your pennies.  (Remember checkout lines?  Remember cashiers?  Remember pennies?)  In a lawsuit filed in federal court, the FTC alleges that Ideal Financial Solutions and more than a dozen individual and corporate defendants used an “intricate web of concealment” to game the payment processing system in a way that resulted in more than $25 million in unauthorized credit card charges and bank account debits.

Some sprucing up

We've done a little renovating around the BCP Business Center.  Nothing major like adding a rumpus room or finishing the basement.  Just a few updates in response to your suggestions.

Collection deception

On classic episodes of the Tonight Show, affable sidekick Ed McMahon sought guidance from Johnny Carson's all-knowing Carnac character.  But as demonstrated by a recent FTC law enforcement action — which involved a company's misleading reference to the late Mr. McMahon — you don't need a psychic to know that challenging deceptive debt collection practices remains a top priority.

Paper, Plastic . . . or Mobile? FTC announces agenda for April 26th workshop

Mobile devices are changing how people go about their daily lives, and that includes how they pay for stuff. As announced in January, the FTC is hosting a workshop on April 26, 2012, to examine the use of mobile payments in the marketplace and their effects on consumers. The workshop — which will be held at the FTC’s Conference Center at 601 New Jersey Avenue, N.W., in Washington, D.C. — is free and open to the public.  The agenda is now available.

Financial literacy makes good business $en$e

Imagine for a moment your ideal customer.  They consider their choices carefully before buying.  They keep their accounts current.  When service is top-notch, they spread the word to friends and family.  If there’s a glitch, they give you a chance to correct the problem before posting thumbs-down reviews.  Now imagine you could “create” your own cadre of contented customers.  Fantasy Land?  It’s more real than you might imagine.

2LEGIT2QUIT?

Last week saw FTC announcements involving allegations of foreclosure rescue fraud, deception aimed at people trying to resell their timeshares, complaints against payday lenders, and lawsuits against outfits claiming to help consumers behind on their car payments.  Is there a theme here?  You bet.  But the message isn't just for companies engaged in practices targeting consumers struggling to stay afloat.  There are words to the wise for businesses of any size and every stripe.

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