What is Bankruptcy? There are two main consumer bankruptcy Chapters which you can use to obtain a “fresh start.” Chapter 7 Bankruptcy is the most common example of consumer bankruptcy and is utilized when you can no longer pay your creditors. Under Chapter 7 Bankruptcy, your possessions are liquidated in order to pay off your [...]
Joseph Mullaney
Tough economic times have caused millions of American consumers to experience extreme financial problems and out-of-control debt. Consumer bankruptcy may be a viable solution for those consumers who just need a financial fresh start. Consumer bankruptcy was designed to provide consumers who are overwhelmed with debt a way to reduce, eliminate, or reasonably pay back [...]
When consumers get in over their heads financially, they may become the victims of harassing phone calls from overzealous debt collection agencies. These agencies often practice other unscrupulous tactics that are illegal. The Fair Debt Collection Practices Act (FDCPA) was passed in 1978 to protect consumers from abusive and harassing behavior by debt collectors. The [...]
Congress enacted the Fair Credit Reporting Act (FCRA) to provide consumers with important consumer rights regarding the information found in their credit reports. The FCRA also provides consumers a valuable opportunity to correct erroneous or inaccurate information in their reports. Originally passed in 1970, the Fair and Accurate Credit Transactions Act of 2003 made substantial [...]
The Takeaway: In response to a consumer’s demand for verification of an alleged debt, the debt collector ordinarily must verify the debt by showing the creditor’s grounds for the claim and provide an explanation as to why the debt exists. The Facts: Apothaker & Associates (Apothaker) attempted to collect a junk debt that had been [...]
The 68 year-old Florida widow, Linda Long, won the right to pursue West Asset Management (West Asset) for damages in a civil suit. A Florida judge assigned to the case found in her favor after weighing facts that West Asset harassed the widow when it tried to collect a debt her deceased husband owed to [...]
Aside from a smoky pool hall with its visible collection of baseball bats, payday loans are the next worst form of consumer lending. But, payday loans promise easy credit in a pinch. Friendly websites, fast talking, and a faux concern for a person’s financial well being makes even the Pied Piper blush. Even celebrities are [...]
The new Consumer Financial Protection Bureau (CFPB) recently announced a program to catch persons and businesses violating financial regulatory laws. It particularly seeks tips from company employees and insiders who know of an employer’s financial services violations. The CFPB hopes that if it can learn of direct evidence from those in the know, it can [...]
Capital One, a major issuer of credit card debt, is fully subject to the bankruptcy laws. Despite its sophistication as a major lender, it routinely flouts the Bankruptcy Code according to sources. Courts and bankruptcy administrators had begun investigations of Capital One to determine if its unlawful conduct is intentional and to what extent it [...]
For the last known year, 2010 was the worst year for consumers dealing with debt collection agencies. According to the Federal Trade Commission (FTC), complaints about debt collectors are up 25% since 2008. There were about 104,000 complaints in 2008 and about 140,000 in 2010. All the while, debt collectors are aggressively lobbying Congress to [...]