Blog Posts Tagged with Debt

Pages

Military Consumer: Sound Off!

The military community makes many of the same consumer decisions as their civilian counterparts. We all need to manage our money – and avoid rip-offs. But servicemembers and their families also face unique challenges, like frequent relocations and deployment. When a permanent change of station is on the horizon, a military family needs to rent or buy a new place to live, manage money while on the move, and be vigilant about dealing with businesses in an unfamiliar locale. A servicemember’s regular paycheck from Uncle Sam can make them a target for scammers.

Un-suit-able?

For swimmers struggling to stay afloat, imagine this good news/bad news scenario. The good news: Someone throws a life preserver in your direction. The bad news: It’s made of concrete. According to an FTC lawsuit, that’s a rough analogy to the services that Damian Kutzner, Brookstone Law, Advantis Law, attorney Vito Torchia, Jr., and others offered to consumers caught in the undertow of foreclosure.

A stark lesson about buying and selling debts

A complaint filed by the FTC and the Illinois Attorney General against an operation that used names like Stark Law, Stark Recovery, and Capital Harris Miller & Associates alleges a veritable smorgasbord of debt collection violations. But the Stark Law lawsuit includes an additional allegation that should send a stark warning to those in the debt buying business.

Self-regulation and debt buying

Last year the FTC received 280,998 complaints about questionable debt collection practices. We think consumers and responsible members of the industry can agree that number is higher than it should be. The FTC is fighting that battle on three fronts. We’ve brought dozens of cases – both on our own and with state partners – to enforce the Fair Debt Collection Practices Act and Section 5.

Will a $63 million FTC-CFPB settlement encourage Green Tree to turn over a new leaf?

As the name suggests, Green Tree Servicing was supposed to service homeowners’ mortgages by collecting and crediting monthly payments. But according to a $63 million settlement announced by the FTC and CFPB, rather than service, Green Tree gave many homeowners the business.

Peace, love, and understanding

“What’s so funny ‘bout peace, love, and understanding?” Elvis Costello asked that musical question back in the day. The Memorandum of Understanding between the FTC and CFPB – which the two agencies just reauthorized for a three-year period – shows that when it comes to protecting consumers, ensuring a vibrant marketplace for financial products and services, and using resources efficiently, we're in harmony.

Hunting the wily CROA-codile

They’re dangerous, they strike fast, and they rely on camouflage to ambush their prey. We call them CROA-codiles – companies that lure cash-strapped consumers in with false promises of debt relief and credit repair, in violation of the FTC Act and the Credit Repair Organizations Act (CROA). According to a lawsuit just filed by the FTC, the defendants added to the injury by claiming a bogus affiliation with federal agencies – and the President.

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,

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

Here Comes Money Boo Boo

No, not the cherubic child star on reality TV.  We’re talking about the serious repercussions of American Tax Relief's misleading claims about substantially reducing what consumers owed in taxes — and major mistakes some businesses make when it comes to the financial consequences of deception.  A look at the settlement offers insights into the breadth of remedies available for violations of the FTC Act and related rules.

A piece of advice

You’ve heard the truisms.  Never eat at a place called Mom’s.  Never play cards with a guy named Doc.  We’ve got another one for you:  Think twice before doing business with a company called Legitimate Debt Settlement.

Private eyes: Lessons from the rent-to-own webcam cases

The charges outlined in the FTC’s lawsuits against a software business and seven rent-to-own companies are surprising — and OK, some might say a little creepy.  Software on rented computers gave the companies the ability to hit the kill switch if people were behind on their payments.  But according to the complaints, it also let them collect sensitive personal information, grab screen shots, and take webcam photos of people in their homes.

Pages