Joseph Mullaney

Senate Moves to Severely Restrict Payday Loans

– Posted in: consumer news
Payday Loans a Trap for the Unwary

Seeking to extend protections afforded to military service members, the Senate could be poised to restrict payday loans for other consumers.  The introduced bill, Protecting Consumers from Unreasonable Credit Rates Act, seeks to limit interest rates charged at 36%. If passed it would amend the Truth in Lending Act (TILA) and provide a national usury [...]

DoE Signals that It’s Ready to Collect $600 Million in Defaulted Student Loans

– Posted in: consumer news, student loans
Defaulted student loans to be collected

Students who borrowed under federal student loan programs and who subsequently defaulted on their loans are about to experience the power of federal government debt collection. In late 2011, the US Department of Education (“DoE”) intended to receive $1.1 billion in defaulted student loans as the guarantor of last resort from lenders, guarantors, and servicers [...]

Lingering Economic Malaise Means Expansion for PRA

– Posted in: consumer news
With Pennies on the Dollar, PRA Controls Billions in Consumer Debt

Portfolio Recovery Associates LLC, a subsidiary of the publicly-traded Portfolio Recovery Associates, Inc., is a debt collection agency that trades in the junk debt markets.  It purchases old, defaulted consumer debts from credit card companies, car finance companies, and others often for just pennies on the dollar.  It is a competitor of Asset Acceptance, LLC, [...]

Annuities Are Partially Protected Against Creditor Garnishment in New Jersey

– Posted in: consumer news, debt defense
New Jersey Annuities Receive Some Protection Against Garnishment

Annuity Principal and Annuity Payments Enjoy Limited Protection Against Creditor GarnishmentNew Jersey law (N.J.S.A. § 17B:24-7) states that annuity principal and annuity payments are not only exempt from "execution, garnishment, attachment, sequestration or other legal process" but also that no creditors are "allowed to interfere with or terminate the [annuity] contract."  However, there are two [...]

Asset Acceptance Pays Nearly 3 Cents Per Dollar to Control $2 Billion in Consumer Debt

– Posted in: consumer news

Asset Acceptance Capital Corp. (NASDAQ: AACC), the parent company of the increasingly familiar “Asset Acceptance, LLC,” is a publicly-traded junk debt buyer located in Warren, Michigan.  Through its predecessors, it has been in existence in one form or another since 1962.  Asset Acceptance is one of the few debt collection agencies where ownership can be [...]

Consumer Federation of America Publishes Report Concerning Fraud and Debt Collection Abuses

– Posted in: consumer news

Confirming other recent surveys, studies, and reports, Consumer Federation of America (CFA) publishes a report that reflects the growing epidemic of fraud in the U.S. and from overseas.  Debt collection, too, also ranks very high as a source of consumer complaints. In the early part of 2012, CFA contacted state, county, and municipal consumer protection [...]

Government Accuses National Credit Adjusters of Collecting Usurious and Invalid Payday Loans

– Posted in: consumer news
National Credit Adjusters Sued for Usurious Payday Loans

National Credit Adjusters, LLC is a national “debt clearinghouse” that purchases defaulted payday loans.  Grabbing payday loans from all over the nation, National Credit Adjusters attempts to collect them in the respective states.  The payday loans associated with Arkansan consumers contain usurious interest rates that are unlawful pursuant to Arkansan law. The attorney general for [...]

Asset Acceptance Calls a Consumer a Fat Motherfucker While Trying to Collect Debt NJ Plaintiff Says

– Posted in: consumer case law

Asset Acceptance to be judged by a jury. Dopey Asset Acceptance, a debt collector, cannot hide behind procedure to exclude from evidence a voicemail that captured it accusing a consumer of being a “fat motherfucker.” A consumer filed a lawsuit in the federal court of New Jersey alleging that Asset Acceptance violated the Fair Debt [...]

In Introducing EDCAA, the Senate’s Funnyman Al Franken Sees No Humor in Debt Collection Abuses

– Posted in: consumer news
EDCAA Seeks to Amend the FDCPA

Sen. Al Franken (D-MN), a Saturday Night Live sketch comedian (think “Daily Affirmation with Stuart Smalley”), writer, actor, and author, recently introduced legislation in the U.S. Senate to tighten and modernize the nation’s Fair Debt Collection Practices Act (FDCPA).  The FDCPA attempts to regulate what and how debt collectors can attempt to collect consumers debts.  [...]

FDCPA Court Permits Consumer to Admit Into Evidence a Settlement Payment to End a Time-Barred Collection Suit Against Stock & Grimes

– Posted in: consumer case law

Hamid v. Stock & Grimes.  In this consumer protection matter, a Pennsylvania consumer sued Stock & Grimes, LLP, a debt collection law firm, under the Fair Debt Collection Practices Act (FDCPA).  She sued Stock & Grimes for having first sued her in a state-court debt collection action.  She defended against the collection action claiming that [...]

Industry Advocate Says 80% of Debt Collectors Use or Will Use Text Messages to Collect Debts

– Posted in: consumer news

Text Messages.  A debt collection industry advocate reported on a non-scientific poll where industry visitors were asked how text messages play a role in debt collection.  According to LiquidEdge’s June 2012 Industry Poll (of Newport Coast, California), participants were asked to report their use of text messages as a “part of their overall collection strategy.” [...]

Junk Debt Buyer LVNV Funding LLC Busted to the Tune of $12.5 Million Dollars to Resolve Alleged Violations

– Posted in: fair debt
LVNV Funding Filed Tens of Thousands of Junk Debt Lawsuits without a License

LVNV Funding LLC is a junk debt buyer, aptly named, because its business model is built entirely around gambling.  The losers of its gambling, however, are flesh-and-blood consumers, not faceless casinos in Las Vegas, Nevada.  Junk debt buyers buy old, defaulted consumer debts for pennies on the dollar and then try to collect the full [...]

Federal Appeals Court Upholds Finding that Midland Funding Violated the FDCPA

– Posted in: fair debt
Midland Funding Violated the FDCPA Federal Appeals Court Rules

The consumer allegedly secured a Gateway credit account in Pennsylvania to purchase a computer for her daughter’s college education.  The consumer applied for the account, received the computer, paid the account’s minimum payments, and eventually defaulted all while living in Pennsylvania.  After losing earned income, the consumer could no longer repay the Gateway account. Four [...]

Removing Inaccurate Information from Your Credit Reports

– Posted in: fair credit
Inaccurate Credit Reports Can Be Corrected

Credit Reports.  If you are struggling with a financial crisis, you may be overwhelmed with a sense of helplessness. Poor credit reports can be a continuous drain on your financial opportunities, and employers are increasingly resorting to credit reports to make hiring decisions. The Fair Credit Reporting Act (“FCRA”) grants you the right to challenge [...]

Repairing the Damages Caused by Identity Theft

– Posted in: fair credit
Inaccurate Credit Reports Can Be Corrected

Over 9 million Americans become victims of identity theft every year according to the Federal Trade Commission. Fraudulent purchases total $31 billion per year while the total economic impact to businesses is valued at a staggering $221 billion. However, the real cost to victims of identity theft is the damage done to their credit and [...]

Consumer Complaints against Debt Collectors at All-Time High

– Posted in: consumer news
FTC Sues Asset Acceptance for Stale Debt Deceptions

The US Federal Trade Commission (FTC) recently published its annual report on the Fair Debt Collection Practices Act (FDCPA). In this report, the FTC alarmingly highlights a sharp increase in consumer complaints about debt collectors. In 2010, consumers lodged 140,036 complaints against debt collectors; these claims of abuse now account for 27 percent of all [...]

What Are the Differences Between Chapter 7 and Chapter 13 Bankruptcy?

– Posted in: consumer bankruptcy
After Careful Consideration, Bankruptcy May Be a Powerful Option

Filing a bankruptcy petition is the declaration of one's inability to pay back loans or debts. It’s also a plea to the bankruptcy court for legal assistance and protection. Bankruptcy is found right in our Constitution, and after dealing with Great Britain’s oppression and debtor’s prisons, bankruptcy still exists today to provide Americans a “Fresh [...]