Credit Lawsuit News
February 23, 2012
Regulators warn of 'phantom' debt collectors'
The FTC warns of firms seeking debt collection from consumers who don't owe. Officials shut down a Villa Park operation that allegedly collected about $5 million in so-called phantom debts.
Federal regulators warned of a new scam in which so-called phantom debt collectors harass people into paying bills they don't even owe, typically preying on Americans already burdened with financial problems. more...
February 21, 2012
Pennsylvania is among the safest states to fall behind on credit card bills
Not that you should. Not that you'd ever want to. But if someday you happen to fall behind on credit card payments, Pennsylvania is among the safest places in the country to do it.
It is one of four states -- the others being North Carolina, South Carolina and Texas -- where debt collectors cannot garnish your wages if you default, according to Clayton S. Morrow, a consumer protection attorney in Pittsburgh.more...
February 16, 2012
Austin-based Stratfor faces lawsuit over data breach
Austin-based Stratfor, which lost information on thousands of its customers in computer hacking attacks against its website in December, now finds itself under legal fire.
Stratfor this week responded in a Texas court to a federal class action suit filed against it in New York.more...
February 13, 2012
Ore. woman, 85, sues bank over debt collection call that brought police to her door
PORTLAND, Ore. — An 85-year-old Eugene, Ore., woman who says a call from an aggressive debt collector brought police to her door and left her with a $1,000 bill for an emergency suicide evaluation is suing Wells Fargo bank.more...
February 10, 2012
Elderly Eugene woman accuses Wells Fargo of overbearing, unlawful bill collection tactics
Like so many Americans, 85-year-old Anne Sessions got behind on a credit card bill and took calls from cranky debt collectors. But none prepared her for the phone call that put three cops on her door and forced her into an emergency "suicide evaluation" for which she was billed $1,055.more...
February 5, 2012
Supreme Court backs credit card binding arbitration
8-1 vote a setback for consumer groups, who see the practice as too biased
The U.S. Supreme Court dealt at least a partial setback Tuesday to credit card customers seeking to break free from the bonds of binding arbitration, the often business-friendly procedure that blocks consumers from taking their complaints to court.more...
February 2, 2012
Debt collector sued for violations of deceptive trade laws
SHERMAN - A debt collector is being sued for calling a consumer and leaving messages without disclosing its true business name in violation of federal and Texas laws.
Linda Whatley Dobbs filed suit against debt collection company Mrs BPO LLC on Jan. 10 in the Eastern District of Texas, Sherman Division.more...
January 27, 2012
Judge orders area law firm's suit against AmEx into arbitration
A Beaumont judge recently granted American Express' motion to compel arbitration in litigation brought by an area law firm over alleged fraudulent charges.
As previously reported, the Beaumont law firm Benckenstein, Norvell & Nathan filed suit against American Express on June 3 in Jefferson County District for refusing to investigate and remove fraudulent credit charges made by the firm's former office manager.more...
January 25, 2012
Plano hardware store sued for displaying credit card expiration numbers on receipts
SHERMAN - A Plano hardware store is being sued for violating the Fair and Accurate Credit Transaction Act by allegedly displaying credit card expiration numbers on customers' receipts.more...
January 23, 2012
Lawsuit: Debt collector broke patient privacy laws
MINNEAPOLIS — Attorney General Lori Swanson sued a debt collection agency that works with two Minnesota hospitals on Thursday, saying it failed to keep health care records for tens of thousands of patients confidential and did not tell patients just how much it was involved in their health care.more...
January 19, 2012
Bank sues card holder over credit card debt
A bank claims one of its credit card holders owes more than $10,000 in unpaid debts.
American Express Bank filed a lawsuit Dec. 27 in Jefferson County District Court against Sharene L. Mouton.more...
January 17, 2012
Ex-spouse's bankruptcy can be problem after divorce
My husband and I were divorced about six months ago. The divorce decree says he is responsible for most of our debts. He now has filed for bankruptcy. Can the creditors still come after me for debts that he doesn't owe because of his bankruptcy?more...
January 13, 2012
What happened at Chase's credit-card collections arm?
Jeff Horwitz has an astonishing story about Chase's credit-card collections efforts, which look as though they're riddled with sloppy record-keeping and even possible fraud.
Consider Dade County, for instance, in Florida: Chase was filing claims at the rate of 640 per month in January. And then, after April — nothing. There were a lot of layoffs in New York, too:more...
January 11, 2012
U.S. Supreme Court rules credit repair firms can force arbitration
Justices rule that credit repair firms can block lawsuits if customers' agreements carry arbitration clauses. The ruling is the latest in a string to back such clauses over consumers' right to sue.
Reporting from Washington—
A 1996 law sought to protect struggling consumers from businesses promising to improve their credit rating, and specifically gave customers the right to sue any firm in violation.more...
January 9, 2012
The danger in docking the pay of exempt employees
Last week, the Southern District of Texas denied a motion by Power Line Services Inc. ("Power Line") to dismiss a class action alleging that the company improperly docked employee paychecks. The claim arises out of a company policy permitting Power Line to make payroll deductions for any charges made on a corporate credit card for which an employee fails to provide an itemized receipt. The lawsuit is entitled Thurmon, et al. v. Power Line Services Inc., et al., and was brought under the Fair Labor Standards Act. more...
January 5, 2012
Craig Watkins Explains How He Got So Broke
On Christmas, The Dallas Morning News gifted Dallas County District Attorney Craig Watkins with a big fat lump of coal in article form, detailing a lawsuit filed against him by Citibank that alleges he owes more than $15,000 on his credit card plus interest.more...
January 3, 2012
Debt collector's alleged tactics lead to lawsuit
There is an unprecedented lawsuit against Bank of America and a debt collector it hired. A Cape Coral woman wants them to pay up after she says they harassed her about her late husband's debts.
The plaintiff's attorney is already calling this a landmark victory for everyone who gets harassing phone calls from debt collectors.more...
December 30, 2011
THE STATE OF TEXAS, Plaintiff, VS. FIRST INTEGRAL RECOVERY, LLC, Defendant.
Filed
IN THE DISTRICT COURT OF
TRAVIS COUNTY, TEXAS,
PLAINTIFF'S ORIGINAL PETITION
TO THE HONORABLE JUDGE OF SAID COURT:
Plaintiff, the STATE OF TEXAS, acting by and through the Attorney General of Texas, Greg
A bbott, complains of FIRST INTEGRAL RECOVERY, LLC; Defendant, and for cause of action
would respectfully show the Court the following:more...
December 28, 2011
Citibank sues Dallas DA Craig Watkins over $15,000-plus in unpaid credit card bills
A credit card company has sued Dallas County District Attorney Craig Watkins seeking repayment, alleging he owes it more than $15,000.
Citibank is seeking the $15,161.66 balance on the credit card plus interest, according to the lawsuit. It is not clear from lawsuit documents how much interest has accumulated or when payments on the card became delinquent.more...
December 26, 2011
Consumer sues financial company for obtaining his credit report without consent
SHERMAN - A Collin County man has filed a lawsuit against a financial company for pulling his consumer credit report without his consent.
Claiming violations of the Fair Credit Reporting Act, David E. Mack filed suit against Equable Ascent Financial, successor in interest to Hilco Receivables, on Dec. 2 in the Eastern District of Texas, Sherman District.more...
December 22, 2011
Texas Plaintiff loses TDCPA claim
BASHORE v. RESURGENT CAPITAL SERVICES, L.P.
ANGELA CHRISTINE BASHORE, Plaintiff-Appellant,
v.
RESURGENT CAPITAL SERVICES, L.P.; LVNV FUNDING, L.L.C.; FINANCIAL RECOVERY SERVICES, INC.; ACADEMY COLLECTION SERVICE, INC.; RLI INSURANCE COMPANY, Defendants-Appellees.
No. 11-40418, Summary Calendar.
United States Court of Appeals, Fifth Circuit.
Filed: December 6, 2011.
Before: SMITH, BARKSDALE, and SOUTHWICK, Circuit Judges.
PER CURIAM.*
Proceeding pro se and in forma pauperis, Angela Christine Bashore appeals the dismissal, under Federal Rule of Civil Procedure 12(b)(6) (failure to state a claim), of her action based on: Fair Debt Collection Practices Act (FDCPA); Fair Credit Reporting Act (FCRA); Texas Debt Collection Practices Act (TDCPA); Texas Deceptive Trade Practices Act (TDTPA); and, negligence and defamation under Texas law. Bashore contends: the district court erroneously applied a heightened pleading standard; and, she pleaded sufficient facts to support her claims.more...
December 20, 2011
FIA Card Services sues over delinquent credit card account
FIA Card Services has filed a lawsuit against Nederland resident Debbie McPeters, alleging she refuses to pay a credit card balance of more than $33,000.
The suit was filed Dec. 12 in Jefferson County District Court.more...
December 16, 2011
New trial date set in son's case against parents over credit card debt
GALVESTON - A family embroiled in a credit card dispute submitted a joint motion for continuance into the son's lawsuit.
St. Louis, Mo., resident Matthew G. McMahon and his parents, Eugene V. McMahon of Webster and Darlene L. Marzouk of Dickinson, filed a five-page document Nov. 22 before the Galveston County Court at Law No. 2, pleading for a change in the current trial setting of Dec. 5, 2011.more...
December 14, 2011
State sues Houston debt collection firm
The Texas Attorney General's Office sued a Houston debt collection firm Monday, alleging it claimed to be affiliated with law enforcement agencies and the Internal Revenue Service.
First Integral Recovery, which collects payday loan payments for lenders, allegedly referred to itself as First IRS so consumers would think they were dealing with the Internal Revenue Service, according to the attorney general.more...
December 11, 2011
Debt collectors getting meaner
As consumers struggle to pay their bills, complaints about debt collectors are growing faster than any other industry, federal regulators say.
The Federal Trade Commission reports that complaints rose from 104,766 in 2008 to 140,036 in 2010, says Tom Pahl, assistant director of the FTC's division of financial practices.more...
December 8, 2011
LOPEZ v. RS CLARK & ASSOCIATES, INC.
LOPEZ sued RS CLARK & ASSOCIATES, INC. seeking damages for alleged violations of the Fair Debt Collection Practices Act, the Texas Debt Collection Practices Act, and the Deceptive Trade Practices Act.
LOPEZ v. RS CLARK & ASSOCIATES, INC.
DAN LOPEZ, Appellant,
v.
RS CLARK & ASSOCIATES, INC., Appellee.
No. 05-11-01110-CV.
Court of Appeals of Texas, Fifth District, Dallas.
Opinion Filed December 6, 2011.
Before Justices Bridges, O'Neill, and Fillmore.more...
December 6, 2011
For the Families of Some Debtors, Death Offers No Respite
After Linda Long's husband died of colon cancer last year, the phone calls poured in.
The 68-year-old retired office worker says she got as many as 10 calls a day from a debt-collection firm asking for $16,651.52 that her husband, Millard, had racked up on a Bank of America Corp. credit card.more...
December 2, 2011
Austin woman sues Bank of America over foreclosure procedures
An Austin woman filed suit Thursday against Bank of America Corp., alleging the company fraudulently sought to foreclose on her home. The suit claims that the bank wrongly invalidated a loan modification agreement because it wasn't signed by her husband even though he died in 2007, more than three years before the agreement was made.more...
November 30, 2011
Ashland, Ky. company to pay over harassment
Credit card processing company MMS Resources Inc. has agreed to pay $365,000 to 11 former employees who said they were sexually harassed by the company's owner.
The U.S. Equal Employment Opportunity Commission filed suit against MMS Resources over the allegations. The EEOC said the women were threatened with losing their jobs, raises, promotions or other employment opportunities if they protested.more...
November 28, 2011
THE RETURN OF DEBTORS PRISONS: Collection Agencies Now Want Deadbeats Arrested
As if life wasn't already tense enough for Americans who can't pay their debts, collection agencies are now taking advantage of archaic state laws to have some debtors arrested and sent to jail.
More than one-third of US states allow debtors to be arrested and jailed, says Jessica Silver-Greenberg in the Wall Street Journal.more...
November 24, 2011
More complaints being lobbed at aggressive debt collectors
As consumers struggle to pay their bills, complaints about debt collectors are growing faster than any other industry, federal regulators say.
The Federal Trade Commission reports that the number of complaints about debt collectors rose from 104,766 a year in 2008 to 140,036 in 2010, says Tom Pahl, assistant director of the FTC's division of financial practices.more...
November 22, 2011
Debt Collector Complaints Spike As Americans Struggle To Pay Bills
As the down economy makes it increasingly difficult for Americans to pay their bills, debt collectors are targeting consumers in droves, prompting an uptick in complaints against the companies.more...
November 18, 2011
Debt Collection
It can happen to anyone: you suffer a financial set-back like the loss of a job, and you are unable to make timely payments on a debt. What can you do?
It helps to act quickly. A consumer having difficulty paying a debt can contact the creditor, explain the circumstances, and offer to work out a payment plan. Sometimes the creditor will refinance or otherwise modify the agreement to give you a chance to catch up.more...
November 16, 2011
Avoid telemarketers by getting on state and federal do not call lists
Angela Michau says she keeps getting robocalls from a company promising to lower her credit card interest rates. Yet she's on both the federal and state do not call lists.
"We've been getting these same calls for years," she says. "Help!"
Paul Lewis says he gets sales calls from a magazine even though he, too, is on the lists. "I am looking for the telephone number to report the company," he says.more...
November 14, 2011
Cycle of Debt | Dallas Battles Money Lenders
HOUSTON - Payday and title loan businesses must now be licensed and disclose loan information.
But new laws, enacted by this legislative session, do nothing to curb the high costs of those loans.more...
November 10, 2011
$50K debt subject of lawsuit
GALVESTON - GOES Sales of Texas Inc. has filed suit against Allied Air Texas Inc. and Insurors Indemnity Co. to recoup a $50,000 debt.
According to a lawsuit filed Oct. 18 in Galveston County District Court, the defendants owe the plaintiff $51,906 for equipment and materials in connection with a boiler replacement project at a Texas Department of Corrections facility in Dickinson.more...
November 8, 2011
FTC charges debt-collection operation with abuse, threats
The Federal Trade Commission used the U.S. District Court for the Central District of California to slam the receiver down on a debt collection operation it alleges deceived and abused consumers by making illegal threats they were being sued or were about to be arrested for failure to pay debts most of them did not actually owe.more...
November 4, 2011
Homestead exemption may apply to personal property, 8th Circuit says
The homestead exemption applies to proceeds from personal property sold with a debtor's house unless the money was segregated from the sale or was used to pay off creditors, a panel of the 8th U.S. Circuit Court of Appeals has ruled.more...
November 2, 2011
Debt collectors harassed consumers with violent threats, FTC says
Two California debt-collection firms used abusive tactics to harass financially distressed consumers, with one firm threatening to kill debtors' pets or desecrate the bodies of their deceased children, according to recent Federal Trade Commission complaints.more...
October 31, 2011
Debtor sues Consumer Portfolio for repeatedly calling her
Alleging she was repeatedly harassed with phone calls seeking repayment of a debt, Rita Coulon has filed suit against Consumer Portfolio Services.
The suit was filed Oct. 24 in Jefferson County District Court.
According to the lawsuit, throughout 2010 and 2011 Consumer Portfolio attempted to collect an alleged consumer debt from the plaintiff by repeatedly calling her at work and home.more...
October 27, 2011
Debt Firm Is the Target of a Probe Into Practices
Encore Capital Group Inc., the nation's largest buyer of consumer debts, said North Carolina regulators launched an investigation of its debt-collection practices.
In a securities filing Wednesday, the San Diego company said the state's Department of Justice "issued an investigative demand…to produce documents and answer interrogatories concerning" Encore's "debt collection practices" and "related topics."more...
October 26, 2011
FIA Card Services files suit over unpaid credit card balance
FIA Card Services has filed a lawsuit against Beaumont resident Robert Bushnell, alleging he refuses to pay a credit card balance.
The suit was filed Oct. 17 in Jefferson County District Court.more...
October 21, 2011
Yuma man protesting judge's decision benifitting Texas collections agency
Yuma resident Aaron Maze believes Yuma Superior Court Justice Maria Elena Cruz denied him his day in court when she issued a summary judgment against him in a civil case with a Texas collections agency.
"I understand summary judgments. If you don't show up and argue your case, then you deserve to lose," Maze said. "But if you are Joe Citizen and show up and pay the (court) fees, you should have your day in court."more...
October 19, 2011
Ten Things Debt Collectors Won't Say
The truth behind all those threatening calls.
1."We'll say anything to get you to pay."
"You just need to pay me $1,200 by 2 p.m. or I'm going to send the sheriff out to arrest you." That's what one debt collector told a client of credit counselor Jan Jones, who works with the Consumer Credit Counseling Service of Alaska. One woman in her 70s who fell behind on credit card payments was told she'd be deported if she didn't pay right away, says Dafne Torres, director of operations for InCharge Debt Solutions, an Orlando, Fla., nonprofit credit-counseling service. While some collections agencies are courteous and professional, "a lot of them will say anything and everything they feel they can get away with it," says Torres.more...
October 17, 2011
Debt collectors busier than ever
Debt collectors aren't the most popular people in the world.
But they are busier than ever, as the economy continues to sputter, people lose their jobs and they have trouble meeting their debt obligations.more...
October 13, 2011
Credit Card Lawsuits - "But I Owe the Money"
I hear this one all the time. Potential clients call my office because they have been sued by collection agencies on old credit card accounts. I tell them that we can defend the case and likely win. They often say "But, I owe the money?"more...
October 11, 2011
#1 Complaint Received by FTC in 2011 Involves Collection Agencies and Bad Debt Collectors
The number one complaint received by the FTC in 2011 involves bad debt collectors and the alleged abusive and underhanded tactics used by collectors to get consumers to pay past due bills, according to the most recent FTC fair debt collection report. To make matters worse, the number of complaints continues to grow at an alarming rate each year. Many consumers are not aware of the protection afforded by the Fair Debt Collection Practices Act (FDCPA), Telephone Consumer Protection Act (TCPA) and state consumer protection laws and that the laws provide for the right to seek legal help according to national consumer law firm Weisberg & Meyers, LLC, Attorneys for Consumers.more...
October 7, 2011
Mortgage And Debt Relief Operations Closed
A U.S. district court has shut down two related operations as a result of settlements with defendants who allegedly failed to provide promised debt relief services and jeopardized their clients' privacy by tossing their personal information into unsecured dumpsters.more...
October 5, 2011
Debt Collection Practices
The OCCC frequently receives questions and complaints from consumers about the negative debt collection practices they experience. Examples of unlawful creditor behavior includes excessive amount of telephone calls to debtors, misrepresentation of the facts to third parties, threats of arrest, and illegal repossession.more...
September 30, 2011
Couple Pays Off $92,000 in Debt
One couple from Jackson, Michigan was faced with more than $90,000 in credit card debt. Instead of walking away from it, they tackled it head on and became debt-free in five years.more...
September 29, 2011
Tony Lee Jenkins' seeks actual and statutory damages based on alleged violations of the federal Fair Debt Collection Practices Act
IN RE JENKINS
In re: TONY LEE JENKINS, Debtor.
TONY LEE JENKINS, Plaintiff,
v.
GENESIS FINANCIAL SOLUTIONS and VATIV RECOVERY SOLUTIONS, LLC., Defendants.
Case No. 10-05912-8-SWH, Adversary Proceeding No. 11-00080-8-SWH-AP.
United States Bankruptcy Court, E.D. North Carolina, Fayetteville Division.more...
September 28, 2011
Maryland requires debt collectors to show proof
Maryland has joined a growing number of states in which judges must demand greater proof from debt buyers before allowing them to sue consumers to recover alleged obligations.more...
September 26, 2011
House panel considers change of rule on venue in Chapter 11 cases
Sept. 26 (Westlaw Journals) - The House Judiciary Committee heard testimony on the pros and cons of proposed legislation that would change Bankruptcy Court venue rules by limiting where corporations may file reorganization cases.more...
September 22, 2011
Judge approves settlement of software company's Chapter 11 bankruptcy
It's been a little more than four months since software developer think3 filed for protection under Chapter 11 bankruptcy law, but a settlement has finally been approved.more...
September 20, 2011
U.S. District Court Grants Class Certification In Debt Collection Case Against PRA (Portfolio Recovery)
The U.S. District Court for the Southern District of New York has granted the plaintiff's motions for summary judgment and class certification in Zimmerman v. Portfolio Recovery Associates, LLC. According to Jason Zimmerman's attorney, Sergei Lemberg, "We are pleased that the Court ruled in our favor, granting summary judgment in favor of 990 consumers victimized by Portfolio Recovery Associates." more...
September 17, 2011
Get Your Life Back in Six Months Eliminate Credit Card Debt: The consumer's debt elimination, lawsuit defensive, & credit repair guide
This book unmasks man's worst enemy, the credit card industry, and educates consumers of the danger lurking in their wallets. For those in overwhelming credit card debt, the book shows how they can regain their lives back, through complete credit card debt elimination, within six months. It also provides comprehensive information on how to defeat collection companies, their frivolous lawsuits, and how to reverse collection company judgments. In the end, the consumer is shown how to legally repair their credit report, given them a fresh new start in life. The last chapters shows how to stay debt free and also show how to quickly eliminate others debts, such as a mortgage, without feeling financial hardship. more...
September 16, 2011
Don't get scammed! BBB offers tips
AMARILLO, TEXAS -- Technology offers security for personal information, but it also provides scam artists with access to that information.
More reports have been made about scam artists posing as debt collectors and taking money out of people's accounts. They tell the debtor a small payment will keep them from going to jail or will by some time before another payment is due. And after the consumer gives his or her personal account information, it is too late. They even contact people who have no debt and are taking money from them.more...
September 14, 2011
Class Action Lawsuit Filed Against Cohen & Slamowitz, LLP, Encore Capital Group, MRC Receivables and Midland Credit Management for Alleged FDCPA Violations Continues
A class action lawsuit filed in the United States District Court in the Southern District of New York (Case 1:10-cv-05868-PKC) by Weisberg & Meyers, LLC, Attorneys for Consumers, continues to move forward after a joint motion to dismiss filed by defendants Cohen & Slamowitz, LLP, Encore Capital Group, MRC Receivables Corporation and Midland Credit Management, Inc. (MCM) was denied by United States District Judge P. Kevin Castel for 3 out of 4 alleged violations of the Fair Debt Collection Practices Act. The Judge's order (Case 1:10-cv-05868-PKC Document 38) refused to dismiss the lawsuit's allegation that defendants Encore and subsidiaries MRC and MCM could be held vicariously liable for potential FDCPA violations in a collection letter sent by Cohen & Slamowitz, LLP, an affiliated collection law firm that is part of Encore Capital Group's debt collection network.more...
September 12, 2011
What should you do if you are being sued by a credit card company?
You need to talk with an attorney immediately. If you cannot afford an attorney, there are groups who will represent you at no or little cost. Check your local telephone book under "low-income legal services."
A most important consideration at this stage is DO NOT IGNORE THE TIME PERIOD stated in the Summons. If you know you are being sued then you must have received a copy of the Summons and Complaint. more...
September 8, 2011
Debt collector sued for calling woman after debt was paid
PLANO - A Plano woman is suing a collection agency for continuing to call her after she paid off the debt.
Becky Pratt filed suit against I.C. Systems Inc. on Aug. 15 on Eastern District of Texas, Plano Division.more...
September 6, 2011
Letters from debt collection agencies need to be taken seriously by customers
HOUSTON (KTRK) -- The last thing people want to deal with is a threatening letter from a collection agency. But if you have past credit card debt, you are very likely to get one.
Collection letters are on the rise and while you may not want to deal with it, ignoring the letters could be a disaster. more...
September 5, 2011
Economy spins rough patch for Houston debt collectors
A down economy should have provided a boon for debt collectors, but some Houston collection agencies are seeing the opposite effect.
Instead, collectors are dealing with out-of-work debtors who have no way to pay their bills, as well as insourcing by businesses that would have hired collection agencies in the past.more...
August 30, 2011
Katy woman accuses T-Mobile, debt collectors of harassment
A Katy woman claims she is being harassed by collection agencies demanding she pay a debt they allegedly never verified.
Georgia Strong filed a lawsuit July 28 in Harris County District Court against T-Mobile USA Inc. Superior Asset Management and Pinnacle Financial Group.more...
August 25, 2011
THE FAIR DEBT COLLECTION PRACTICES ACT
As amended by Pub. L. 109-351, §§ 801-02, 120 Stat. 1966 (2006)
As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p.more...
August 24, 2011
FTC Halts Credit-Card Debt Relief Business
The Federal Trade Commission halted the operations of Debt Relief USA Inc. in a proposed settlement of allegations that the credit-card-debt relief business lured consumers into paying thousands of dollars in upfront fees, but in most cases failed to lower their debts--and in many cases left them with more debt.more...
August 23, 2011
Bank of America Settles Allegations That it Rigged Credit Card Dispute System
After a three-year legal battle, Bank of America has agreed to pay $5 million in fines for allegedly forcing consumers who were behind on their card payments to use a mandatory arbitration program that illegally favored the bank, according to an announcement this week by San Francisco City Attorney Dennis Herrera.more...
August 22, 2011
Maine settles with Texas debt-management company
The state of Maine has reached an agreement with a Texas debt management company to settle allegations of unfair trade practices.
Attorney General William Schneider said Tuesday that the settlement with Credit Solutions of America Inc. and its owner Douglas Van Arsdale was reached after two days of trial that began July 18. The settlement resolves claims related to an advance-fee debt-settlement scheme.more...
August 19, 2011
Debt Contraction Means Fewer Bankruptcy Filings, Chargeoffs
Credit card chargeoffs have been plunging since the middle of last year, moving against the tide of an anemic jobs environment but supported by slowing bankruptcies.
However, the favorable bankruptcy trend may itself simply be part of the broader phenomenon of the burn-off of bad loans that has allowed loss rates to improve despite high unemployment and, recently, a reversal in the downward trend in initial jobless claims (see charts).more...
August 18, 2011
More Lawsuits Against Agencies, Creditors In July's Second Half
U.S. consumers sued an estimated 563 different collection agencies in the July 16-31 period, according to data pulled from U.S. District Courts. The half-month total is up from 539 in the July 1-15 period but down from 634 in June's second half.more...
August 16, 2011
Well operator sues owner to recover $80K
GALVESTON - Fort Apache Energy Inc. seeks to recover more than $80,000 in connection to mineral property in Galveston County from Katy Longbow Partners LLC.
A lawsuit filed July 29 in Galveston County District Court alleges the defendant has an outstanding debt in the amount of $84,449.56 owed to Fort Apache.more...
August 15, 2011
Debt collection agency sued for failing disclose it was attempting to collect debt
A Texas resident has filed a lawsuit against a debt collection agency after he received several automated voicemail messages from an employee that did not disclose the messages were an attempt to collect a debt.more...
August 12, 2011
Encore: Court Approves Settlement Over Debt-Collection Affadavits
Encore Capital Group Inc. (ECPG) said a federal court approved a contentious settlement in a class-action suit that alleged the debt collector "robo-signed" affidavits.
Attorneys general in dozens of states were fighting the settlement they said could make it much harder for law enforcement to regulate the sector.more...
August 11, 2011
Union Bank of California's Debit Card Overdraft Lawsuit
Customers of San Francisco-based Union Bank were granted class-action status in a lawsuit over wrongfully charged debit card overdraft fees. The lawsuit alleges that Union Bank processed debit card transactions from the largest charges to the smallest, rather than in the order that they were made, to increase the chance that a customer would overdraw.more...
August 10, 2011
Texas Payday Lenders Ace Cash Express and Cash America International Use Loophole in Texas Law To Facilitate Alleged Abusive Lending Practices
Payday lenders registered in Texas as credit services organizations operate under the Texas Credit Services Organization Act, a law enacted primarily to regulate credit repair services rather than short term high risk lenders. Operating as a credit services organization, payday lenders can then allegedly sidestep stronger Texas consumer protection laws that cap rates and fees for traditional lenders and charge consumers rates and fees as high as 1200% according to a recent class action lawsuit filed by national consumer law firm Weisberg and Meyers, LLC, Attorneys for Consumers.more...
August 9, 2011
BBB: Phishing scammers steal Killeen law firm's name
WACO — Scammers have recently been using the name of a local law firm in Killeen to trick victims into giving out bank information, credit card numbers and other private information.
The Better Business Bureau warns consumers against giving out personal information to unknown callers.more...
August 5, 2011
Debt collection agency sued for threatening Houma woman with lawsuit
A New York debt collection agency is being sued for allegedly violating the Fair Debt Collection Practices Act by threatening to sue a Houma woman when it did not intend to do so.
Wendy Trahan filed suit against Global Credit & Collection Corp. on Aug. 1 in federal court in New Orleans.more...
August 4, 2011
Man sues to get repossessed bulldozer back
GALVESTON - Alleging his bulldozer was wrongfully confiscated, Santa Fe resident Willis N. Young has filed a lawsuit.
Court papers filed July 19 in Galveston County District Court claim Komatsu Financial seized Young's Komatsu D39PX-21A Bulldozer with the assistance of the city of Santa Fe, the Santa Fe Police Department, Joe Dickson and Wayne Kessler though the plaintiff paid for the bulldozer in full.more...
August 2, 2011
NY Collection Agency Sued by A Texas woman For Allegedly Not Disclosing Status
A Texas woman has filed a lawsuit against Firstsource Advantage, a New York-based collection agency, after the company left her a voicemail but allegedly failed to mention the call was about collecting a debt.more...
August 1, 2011
Divorced couple in litigation over credit card debt
GALVESTON - Maria Theresa Guidry is suing Monte James Guidry over a credit card debt, recent court documents say.
A lawsuit filed July 21 in Galveston County District Court states that Monte James Guidry failed to make payments on a Bank of America Visa credit card since May 9, 2010, and currently owes the plaintiff $71,103.27.more...
The parties in the suit have been divorced since late 2009.
July 28, 2011
First Premier sues Fed, watchdog agency over new credit card rules
First Premier -- a bank that issues cards targeting subprime consumers who have below-average and thin credit -- and Premier Bankcard -- the company that markets those cards -- are suing the Federal Reserve and the new Consumer Financial Protection Bureau over new credit card rules slated to take effect in October.more...
July 25, 2011
Debt collection company sued for threatening wage garnishment
SHERMAN - A debt collection company is being sued for allegedly threatening to garnish the wages of a consumer and the consumer's mother if they failed to pay back the money they owed.more...
July 23, 2011
Credit card settlement OK'd
NEW YORK - A federal court judge on Wednesday approved a settlement between the Justice Department and MasterCard and Visa that requires the card processing networks to allow retailers to offer discounts or rebates to customers for using a particular kind of card.more...
July 20, 2011
Class Action Lawsuit Alleges Collection Agencies Credit Card Offer for Debt Repayment Contains Multiple Fair Debt Collection Practices Act Violations
National consumer law firm Weisberg & Meyers, LLC announces that a class action lawsuit against Genesis Financial Solutions, Inc.(GFS), NCO Portfolio Management Inc. and WebBank continues to move forward. The lawsuit (CaseNo. 3:10-cv-02037-L), filed in the United States District Court for the Northern District of Texas (Dallas Division) alleges that Defendants deceptively used an offer for a pre-approved Pearl Card® Gold MasterCard® to collect or receive payment for an alleged debt, when in fact the offer was a collection letter. The lawsuit alleges multiple violations of the Fair Debt Collection Practices Act and the Texas Finance Code.
more...
July 18, 2011
Daniele Walker filed suit against appellant First National Collection Bureau, Inc.
Daniele Walker filed suit against appellant First National Collection Bureau, Inc. ("FNCB") alleging automated debt collection calls were made to her cell phone number in violation of the federal Telephone Consumer Protection Act ("TCPA") and section 35.47(f) of the Texas Business and Commerce Code, which was in effect at that time. See 47 U.S.C.A. § 227 (West, Westlaw through July 14, 2011); Tex. Bus. & Com. Code Ann. § 35.47(f) (repealed 2007).1 Following a jury verdict in favor of Walker and some additional findings by the trial court, a judgment was rendered for Walker in the amount of $147,000 against FNCB. In five issues2 on appeal, FNCB (1) contends the trial court erred by not applying Texas law and, alternatively, applying the TCPA incorrectly and (2) challenges the sufficiency of the evidence to support the jury's verdict and the trial court's findings. We decide against FNCB on its five issues. The trial court's judgment is affirmed.more...
July 16, 2011
BBB advises consumers on handling debt collectors
Consumers who owe money or are behind on their bills may be legitimately contacted by debt collectors to pay off debts. The BBB warns consumers, however, that phony debt collectors are lurking and even some legitimate debt collectors have been known to employ abusive and illegal tactics.more...
July 15, 2011
Class Action Lawsuit Alleges Collection Agencies' Credit Card Offer Contains Multiple FDCPA Violations
National consumer law firm Weisberg & Meyers, LLC announced Thursday that a class action lawsuit against Genesis Financial Solutions, Inc.(GFS), NCO Portfolio Management Inc. and WebBank continues to move forward. The lawsuit (CaseNo. 3:10-cv-02037-L), filed in the United States District Court for the Northern District of Texas (Dallas Division) alleges that Defendants deceptively used an offer for a pre-approved Pearl Card® Gold MasterCard® to collect or receive payment for an alleged debt, when in fact the offer was a collection letter. The lawsuit alleges multiple violations of the Fair Debt Collection Practices Act and the Texas Finance Code.more...
June 13, 2011
Collection company sued for calling debtor's husband
SHERMAN - A collection company is facing a lawsuit after making collection calls to a debtor's husband and disclosing information.
Claiming violations of the Fair Debt Collection Practices Act, Minerva Bennett filed suit against Client Services Inc. on June 13 in the Eastern District of Texas, Sherman Division.more...
July 12, 2011
Texas City woman says debt collectors have harassed and annoyed her
GALVESTON - Texas City resident Carolyn Gamble is pursuing legal action, alleging Credit One Bank and West Asset Management Inc. are attempting to collect an unverified debt. more...
July 11, 2011
Judge hears objections to Encore Capital settlement
TOLEDO, Ohio, July 11 (Reuters) - A federal judge has deferred a final decision on whether to approve a controversial class-action settlement that would resolve a lawsuit over Encore Capital Group Inc's debt collection tactics.
"I will review the record for the umpteenth time and in due course release an opinion," said Judge David Katz following a fairness hearing in U.S. District Court in Toledo, Ohio on Monday.more...
July 8, 2011
Dallas City Council Passes Strict Rules for Payday Lenders
Payday and title loan stores in Dallas face new regulations intended to help customers pay off the loans after a unanimous City Council vote Wednesday.
Dallas and several other North Texas cities already had zoning restrictions to limit the distance of payday and title loan stores from one another.more...
July 7, 2011
As Fed Debit Rule Sinks in, Merchant Class Action Grinds Toward Trial
Now that the Federal Reserve's new debit card interchange regulations are finally out in the open, the profile of yet another payment card interchange and rules controversy is slowly rising. That's the raft of merchant antitrust lawsuits pending in U.S. District Court in Brooklyn, N.Y., collectively known as "MDL 1720." Merchants first sued back in 2005, and earlier this year they finally got a trial date: Sept. 10, 2012. Ahead of that, a judicial decision about whether their cases will be certified as a class action could come at any time.more...
July 6, 2011
Texas Court Upholds FDCPA Claim Against Collection Agency
A Texas class action lawsuit against a Coloradan collection agency and a Delaware-based mortgage company won't succeed solely on the strength of its Fair Debt Collection Practices Act (FDCPA) violation claim. (Take a breath.) Or, at least, the mortgage company is somewhat in the clear. It may, however, succeed based on Texas's own Texas Debt Collection Act (TDCA).more...
July 5, 2011
Citi Sued Over Man's Death In Relation To $12,000 Credit Card Bill
In the U.S., failing to pay back your Citibank bills can, at worst, lead to personal bankruptcy and a poor credit rating. In Indonesia, it may get you killed.more...
June 30, 2011
Alvin man says collection agency used abusive tactics
GALVESTON - Alvin resident Michael Price claims Asset Management Professionals LLC placed harassing calls to his cell phone and his place of work, recent court documents say.
A federal lawsuit filed June 13 in the Galveston Division of the Southern District of Texas alleges Asset engaged in abusive tactics when contacting Price about his account with Providian Bank.more...
June 28, 2011
Plano couple sues debt collection company after threats to garnish social security checks
SHERMAN - A Plano couple has filed a lawsuit against a debt collection company after the company threatened to garnish their social security checks.
Arguing the collection company was using deceptive means in an attempt to collect a debt, Charles and Shelbie Sykes filed suit against Hunter Warfield Collections and Asset Investigations on June 10 in the Eastern District of Texas, Sherman Division.more...
June 27, 2011
Alief, Aldine companies accused of harassing consumer over car payments
Companies in Alief and Aldine are being sued by a Houston-area resident over claims that they backed out of a promise to defer car loan payments and then made threatening telephone calls to collect those same payments.more...
June 24, 2011
A Whistleblower Triumph — JPMorgan Chase Drops Pursuit Of Millions (Billions?) In Credit Card Debt
Jerry Ashton, wrote a piece titled Follow Directions or be Fired! A Debt Professional's Dilemma, in which he described how a so-called whistle-blower had been fired by JPMorgan Chase for questioning the legitimacy of their decision to sell a flawed portfolio of credit card write-offs.more...
June 23, 2011
Consumers borrowed more for 7th straight month
WASHINGTON – Americans borrowed more money in April for the seventh straight month, but they cut back on using their credit cards.
Consumer borrowing rose by nearly $7.2 billion, fueled by greater demand for school and auto loans, the Federal Reserve said Tuesday. A category that measures credit card use fell for the second time in three months. It has risen only twice since August 2008, the height of the financial crisis.more...
June 21, 2011
Alvin man says collection agency used abusive tactics
GALVESTON - Alvin resident Michael Price claims Asset Management Professionals LLC placed harassing calls to his cell phone and his place of work, recent court documents say.
A federal lawsuit filed June 13 in the Galveston Division of the Southern District of Texas alleges Asset engaged in abusive tactics when contacting Price about his account with Providian Bank.more...
June 20, 2011
Prepaid Credit Card Fees May Drop Thanks to Failed Lawsuit Against Kardashians
The drama surrounding the infamous Mobile Resource Card, much better known as the Karadashian Kard, is almost over. more...
June 17, 2011
States to Fight Lawsuit Accord
Attorneys general in 38 states are fighting a proposed class-action settlement they said could make it much harder for state law-enforcement officials to regulate debt collectors.Read more...
June 15, 2011
Lawsuit Fights Back against Aggressive Debt Collectors
A class-action suit alleging aggressive and illegal debt collection practices against Encore Capital Group and its agents lifts the lid on a growing problem for consumers struggling to pay bills. "A lot of people call lawyers for help not because they want to get rich in a lawsuit, but because they don't know where else to turn," says consumer attorney Aaron Radbil from the firm of Weisberg & Meyers. "They have got debt collectors who are harassing them, debt collectors who won't leave them alone. These people have real problems and they deserve to be treated fairly."Read more...
June 14, 2011
Texas credit card debt down, student loans up
According to a report from CreditKarma.com, Credit scores throughout the country have fallen two points in the first quarter to 665 and California still has the best credit score in the nation.Read more...
June 13, 2011
Victim of debit card fraud sues company under the Electronic Financial Transactions Act
SHERMAN - Claiming she is a victim of debit card fraud, a Denton County resident is suing the company that provides Texas debit cards for child support from the office of the Texas Attorney General.Read more...
June 10, 2011
Community Bank sues to recover $60k debt
A Texas bank seeks a recovery of the more than $60,000 it says it loaned to a Port Neches corporation.
Community Bank of Texas filed a lawsuit May 23 in Jefferson County District Court against CMH Enterprises and Carl Holzapfel.Read more...
June 9, 2011
Senate Defeats Plan To Delay Debit-Card Regulations
WASHINGTON (Dow Jones)--In a blow to the financial industry, the U.S. Senate on Wednesday defeated a bipartisan plan to postpone new federal debit-card regulations.
The 54-to-45 vote means new rules that would reduce the debit-card transaction fees banks charge merchants are set to take effect next month as scheduled, a move that could cost the financial industry billions of dollars in lost fee revenue.Read more...
June 8, 2011
Class action filed against Chili's for printing credit card expiration dates on receipts
SHERMAN - A class action has been filed against a restaurant chain for violating the Fair and Accurate Credit Transaction Act by printing customers' credit card expiration dates on receipts.Read more...
June 7, 2011
Victim of debit card fraud sues company under the Electronic Financial Transactions Act
SHERMAN - Claiming she is a victim of debit card fraud, a Denton County resident is suing the company that provides Texas debit cards for child support from the office of the Texas Attorney General.Read more...
May 3, 2011
Houston Pension Sues Highland, JP Morgan
A Houston pension plan has sued Highland Capital Management, the debt manager with about $22 billion in assets under management, and JPMorgan Chase & Co. over claims that willful looting led to the shutdown of the Highland Crusader FundRead more...
June 2, 2011
How new federal debt relief rules protect consumers
It's never good to be so deep in debt that you need assistance to get out. However, new Federal Trade Commission (FTC) regulations give consumers who do find themselves with unmanageable debt burdens the confidence to know they can receive fair and effective service.Read more...
June 1, 2011
Michaels Stores hit with 2nd suit seeking class-action status
Michaels Stores Inc., which disclosed that its checkout-line PIN pads were tampered with in Illinois and 19 other states, has been hit with two lawsuits seeking class-action status by consumers alleging that the arts and crafts retailer failed to safeguard shoppers' credit and debit card information and PIN numbers.Read more...
May 31, 2011
Debt collection agency sued after threatening to send debtor to jail
SHERMAN - A national debt collection agency is being sued after a bill collector threatened to send a Sherman couple to jail for nonpayment of a debt.
Claiming the bill collector violated the Fair Debt Collection Practices Act, Ernest and Keila Scruggs filed suit against H&P Capital Inc. on May 18 in the Eastern District of Texas, Sherman Division. Read more...
May 28, 2011
Woman harassed over debt that isn't hers
Debt collectors are tough to deal with, but one Fort Bend County woman is being harassed about debts that are not even hers. She says it's been happening for years.
The federal government gets more complaints about debt collectors than any other industry. It's bad enough when you owe the money, but when someone is calling you for someone else's debt, getting them to stop is not easy.Read more...
May 26, 2011
Capital One sues Nederland man for $16K
Capital One Bank has filed suit against Nederland resident Jerrie White, seeking to collect more than $16,000 on a delinquent credit account.
The suit was filed May 20 in Jefferson County District Court.Read more...
May 25, 2011
Encore Capital Group, Inc. (aka Midland Funding) under Investor Investigation
Seems even the investors of junk debt buyer Encore Capital Group (aka Midland Funding and Midland Credit Management) believe that the operation is a bit shady. Midland Funding is an aggressive collection division that often uses questionable affidavits and other possible illegal tactics to collect debts from consumers. If the FTC or state Attorney General's can't take them down perhaps the investors of the company can.Read more...
May 24, 2011
FTC accuses companies of bilking $467 million from consumers through free trials, other schemes
An online network scammed consumers the world over out of an estimated $467 million by hawking everything from free trials offers to work-at-home opportunities and credit reports, the Federal Trade Commission charged in a lawsuit.Read more...
May 23, 2011
Capital One sues debtor for $14K
Capital One Bank has filed suit against Port Arthur residents Brenda Conner and Eugene Finkley, seeking to collect more than $14,000 on a delinquent credit account.
The suit was filed May 16 in Jefferson County District Court.Read more...
May 21, 2011
Citibank Brings Debt-Collection In-house Following Jakarta Death
Citibank will no longer rely on outsourcers to conduct its debt-collection business in Jakarta, Indonesia.
It was reported today in the Wall Street Journal that Citibank has hired in excess of 1,400 employees in Indonesia to staff its debt-collection operations.Read more...
May 19, 2011
The Supreme Court Takes a Stand — Against Consumers
Just around the time when Navy SEALs were mounting their attack on Osama bin Laden, the Supreme Court was conducting its own raid — one that effectively captured and killed the consumer right to file a class action lawsuit.Read more...
May 18, 2011
Litigation continues over when debt collectors can rely on the FDCPA 'bona fide error' defense
Two recent decisions demonstrate the continued viability of the Fair Debt Collection Practices Act's (FDCPA) "bona fide error" defense following the U.S. Supreme Court decision last year in Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA. Read more...
May 17, 2011
FEDERATED FINANCIAL CORPORATION OF AMERICA v. ECO MEDICAL
FEDERATED FINANCIAL CORPORATION OF AMERICA, Plaintiff-Respondent,
v.
ECO MEDICAL, Defendant, and
DARYL FALLAS, Defendant-Appellant.
No. A-5993-09T3.
Superior Court of New Jersey, Appellate Division. Read more...
May 16, 2011
Data breach cost: $1.8 million, so far
Gwen Rowling worked part time as a filing clerk for the Texas State Securities Board more than two decades ago, trying to pay her way through college.
A week ago, Rowling received a letter from the comptroller notifying her that she was one of the 3.5 million Texans whose personal information — including names and Social Security numbers — was publicly accessible for more than a year because of a major data security lapse.
Read more...
May 13, 2011
Collection agency sued for attempting to collect deceased man's debt
An Orange County resident has filed a lawsuit against a collection agency after the agency reported her deceased son's debt on her credit report.
Claiming violations of the Fair Debt Collection Practices Act and the Texas Debt Collection Practices Act, Karen Davis filed suit against RJM Acquisitions on April 27 in the Eastern District of Texas, Beaumont Division.Read more...
May 11, 2011
Mother sued by son over credit card debt denies allegations
GALVESTON - A Dickinson woman who is being sued for more than $26,000 arising from credit card charges by her son recently filed an original answer.Read more...
May 10, 2011
FIA Card Services files suit over $49K credit card balance
FIA Card Services has filed a lawsuit against Beaumont attorney Hugh Ofiel, alleging the man refuses to pay his credit card balance.
The suit was filed May 4 in Jefferson County District Court.Read more...
May 9, 2011
Government sues to recover defaulted student loans;
lawsuits filed against 4 Crossroads residents
Feds cracking down on student loan defaults
Four lawsuits filed against Crossroads-area residents indicate the federal government's increased attempt to collect defaulted student loans.Read more...
May 5, 2011
Sony declines to testify before Congress as $1 billion lawsuit filed
A U.S. House of Representatives subcommittee is demanding answers from Sony after private information from some 102 million personal accounts was taken by hackers.
In a letter written by the Congressional Subcommittee on Commerce, Manufacturing and Trade and addressed to Sony chairman Kazuo Hirai, representatives asked the company to answer a list of 13 questions related to the hacking of Sony's PlayStation Network.Read more...
May 4, 2011
Texas offers free credit monitoring to people whose personal records were compromised
AUSTIN -- State Comptroller Susan Combs issued a public apology Thursday for an information breach that exposed the personal records of 3.5 million Texans and said her office will offer a year of free credit monitoring to those affected.
"I am really sorry this happened," the state's chief financial officer told the Star-Telegram. "It's our fault. It doesn't matter what anybody else did. We sent some stuff to a server that we should not have done, and it is our responsibility. We did it wrong."Read more...
May 2, 2011
Debt Collector Can't Harass Through Facebook Friends, Court Rules
In a precedent-setting case, a court has ruled that a debt collector can't continue to contact a debtor's friends and family on Facebook about her car payments, reports the Orlando Sentinel. The debt collector had already emailed, texted her, and called her at home and work, according tot he lawsuit, 23 times in one day.Read more...
April 29, 2011
How can I defend myself from a Credit Card Lawsuit?
Whether or not you are believe the news media about a declining US economy, one thing is for sure, debt collectors are actively filing suits to collect debts. One large collection firm based out of Atlanta has indicated that they file an average of 279 collection lawsuits per day. A lawsuit is often the final effort in the creditor's attempt to collect a debt. If the harassing and often illegal collection calls were not enough, once a person is sued the reality of the situation is realized. However, for the defendant, not all hope is lost. By the time the credit card company or other creditor files the lawsuit, it may actually be too late to legally collect the debt, if it is properly defended. Often times with the assistance of an attorney a lawsuit to collect a debt can be defended, negotiated, or won out right for the defendant. Before you start feeling sorry for the credit card company, remember, they are the same corporation that offered an interest rate of 6.9% and when you were one day late on a payment raised the interest rate to 24.9%.
Read more...
April 28, 2011
U.S. Supreme Court ruling supports credit card company policies requiring arbitration
In a 5-4 decision that affects anyone who carries a credit card or signs a cell phone contract, the U.S. Supreme Court ruled April 27 that companies can require customers to waive their right to participate in a class-action lawsuit, the Los Angeles Times reported.Read more...
April 27, 2011
Litigation continues over when debt collectors can rely on the FDCPA 'bona fide error' defense
Two recent decisions demonstrate the continued viability of the Fair Debt Collection Practices Act's (FDCPA) "bona fide error" defense following the U.S. Supreme Court decision last year in Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA. Read more...
April 26, 2011
Can a Person Be Sued Through Credit Card Reduction Processes?
A credit card reduction process is better known as debt settlement. Debt settlement allows reduction of credit card debt by paying off individual cards for less than the full balance. Savings are sometimes impressive, ranging from 20 to 70 percent of the balance, according to SmartMoney. The strategy is endorsed by the Federal Trade Commission as an alternative to bankruptcy, but there is no guarantee of success, and some people are sued by credit card companies while attempting to settle. Read more...
April 25, 2011
Target National Bank Class Action Lawsuit Complaint Filed Over Debt Collection Practices
A class action lawsuit has been filed against Target National Bank, the subsidiary of discount department store chain Target Corporation ("Target National Bank" or "Target"), Patenaude & Felix, A.P.C. and certain individuals (collectively "Defendants") in the United States District Court for the Western District of Pennsylvania (styled Vicki L. Higgins v. Patenaude & Felix, A.P.C, Target National Bank, Adam Grim, Janice L. Loken and John Does I-X, Class Action Case. No 2:11-cv-00521-JFC) alleging, among other things, that Target and other defendants allegedly used false affidavits to collect debts on credit cards purportedly issued by Target, according to a Target National Bank debt collection class action lawsuit news report.Read more...
April 22, 2011
Lawsuit: Credit score sites mislead consumers
Confused about your credit score and where to get it? That's intentional, according to a new lawsuit filed in a California federal court.
Many consumers who think they are buying a peek at their credit scores are being defrauded, according to a lawsuit against credit bureau giant Experian. The case, which seeks class action status, claims that Experian is intentionally confusing customers, engaging in false advertising and not giving consumers what they pay for when they sign up for services at the firm's popular FreeCreditReport.comRead more...
April 21, 2011
Class Action Lawsuit Against Portfolio Recovery Associates, LLC for Alleged Violations of The TCPA
The law firms of Turner Law Offices, LLC and Arcadier & Associates, P.A. have filed a Class Action lawsuit against Defendant Portfolio Recovery Associates, LLC ("PRA") in the United States District Court for the Middle District of Florida on behalf of all persons in the State of Florida who, since February 18, 2011, received a non-emergency telephone call from PRA to a cellular telephone through the use of an automatic telephone dialing system or an artificial or prerecorded voice and who did not provide prior express consent for such calls during the transaction that resulted in the debt owed. The action is captioned Karen Harvey et al. v. Portfolio Recovery Associates, LLC, and is numbered 6:11-CV-00582.Read more...
April 20, 2011
Angleton woman sues collection agency over abusive tactics
GALVESTON - An Angleton woman alleges a collection agency engaged in harassment and abusive tactics, recent court documents say.
Angela Blanks' lawsuit against Certified Recovery Systems Inc. argues the company broke state and federal laws when it contacted Blanks at her workplace about her alleged debt to Ace Cash Express.Read more...
April 19, 2011
Parent sues Apple for in-app buying policy
Shortly after Apple introduced new parental controls for in-app purchases on iPhone or iPad games, the company is being slapped with a lawsuit that says it hasn't done enough.
Earlier this week, Garen Meguerian of Pennsylvania filed a lawsuit against Apple that says the company's policy for in-app purchases doesn't go far enough to prevent children from buying currency or points inside apps and games. The lawsuit, filed in the U.S. District Court for Northern California, requests class-action status and asks for unspecified damages and legal fees.
Read more...
April 18, 2011
Laws That Affect Collection Agencies And Collection Accounts
There are several laws that may affect an account that has gone to collections and/or the consumer's relationship with the collection agency. The main laws that can affect collections are:
The Fair Debt Collection Practices Act (FDCPA)
The Fair Credit Reporting Act (FCRA)Read more...
April 15, 2011
Citigroup Sued for $347 Million After Death of Indonesian Client in Branch
Citigroup Inc. (C)'s consumer banking unit, barred from adding clients to its credit-card and wealth management services in Indonesia after fraud allegations and the death of a card holder at a branch in Jakarta, was sued by the dead man's wife for as much as 3 trillion rupiah ($347 million).Read more...
April 12, 2011
Lawsuit: Credit score sites mislead consumers
Confused about your credit score and where to get it? That's intentional, according to a new lawsuit filed in a California federal court.
Many consumers who think they are buying a peek at their credit scores are being defrauded, according to a lawsuit against credit bureau giant Experian. The case, which seeks class action status, claims that Experian is intentionally confusing customers, engaging in false advertising and not giving consumers what they pay for when they sign up for services at the firm's popular FreeCreditReport.com and FreeCreditScore.com Web sites.Read more...
April 11, 2011
Unpaid credit-card bills giving rise to lawsuits
In a new trend for settling defaulted credit-card debt, debt buyers are filing hundreds of lawsuits each week at the Tarrant County courthouse.
Starting Saturday, some of that caseload could shift to the eight justice of the peace courts in the county. The state Legislature passed a law this year raising the civil jurisdiction limit of justice of the peace courts to $10,000 from $5,000.Read more...
April 8, 2011
Fed Will Face Bank Lawsuit Over Credit Card Fees
Federal Reserve Chairman Ben Bernanke has been unsuccessful in his effort to end a lawsuit broght by TCF National Bank which challenges the legality of forthcoming rules designed to limit the fees that the largest U.S. banks can charge merchants for debit card transactions.
Read more...
April 7, 2011
US Federal Reserve to face credit card lawsuit
The US Federal Reserve is to face a bank lawsuit regarding the way the largest banks in the country can collect for debit card transactions.
Ben Bernanke, the organisation's chairman, lost a bid to end the challenge when district judge Lawrence Piersol denied a request by the US government to throw out the case, which was filed by TCF National Bank last year, Bloomberg reports.Read more...
April 6, 2011
Court upholds $311K award against debt collector
BILLINGS, Mont. (AP) - A North Dakota law firm accused of trying to collect a $3,800 debt after the statute of limitations expired is now the one that owes a lot of money.
An appellate court has upheld a $311,000 jury award to a Montana man who sued the firm in 2007 over a violation of the federal Fair Debt Collection Practices Act.Read more...
April 5, 2011
Citibank seeks $15,000 from Beaumont man over credit card debt
A bank has filed suit against the Beaumont man it claims failed to repay more than $15,000 in credit card debt.
Citibank claims defendant Leroy R. Purdy racked up credit card debt of $16,537.05, but has refused to repay it.Read more...
April 4, 2011
Lawsuit alleges credit card companies, banks conspired over price fixing
Visa, MasterCard and the country's biggest banks conspired to fix the fees charged to businesses that accept payments by credit card, according to allegations in a proposed class-action lawsuit.
Mary Watson, a furniture store owner in Vancouver, filed the lawsuit in the Supreme Court of B.C. on behalf of merchants who accept Visa and MasterCard credit cards.Read more...
March 30, 2011
Minnesota accuses Encore Capital of robo-signing
Minnesota's attorney general accused Encore Capital Group Inc of cutting corners by filing "robo-signed" affidavits in debt collection lawsuits, the same practice for which banks have come under fire in home foreclosures.
Attorney General Lori Swanson accused Encore of fraud for filing false affidavits to collect consumer debt that was not owed or had been already paid off.Read more...
March 29, 2011
Denton County business owner sued for $1.77 million in past due payments
Two Chinese companies are suing a Denton County business owner for more than $1.77 million for past due payments.
Mat-Wah International Enterprise Ltd. and Marvelous Enterprise Co. Ltd. filed suit against Terry Enmon on March 17 in the Eastern District of Texas, Sherman Division.Read more...
March 28, 2011
The Credit Card Lawsuit Is No Longer a Sure Win for Collection Attorneys
Court decisions and legal events around the country pertaining to debt collection by junk debt buyers and their collection attorneys are pointing to increased protection for consumers, whether they owe the debt or not.Read more...
March 26, 2011
FIA Card Services files suit over unpaid credit card balance
FIA Card Services has filed a lawsuit against Beaumont resident Cassie Cole, alleging the woman refuses to pay her credit card balance.
The suit was filed March 21 in Jefferson County District Court.
Court records show that on Jan. 3 FIA Card Services sent a letter to Cole demanding payment in full of the account. However, no further payments have been made.Read more...
March 24, 2011
Afraid of Credit Card Lawsuit? Don't Be – Here's How to Beat It
Nowadays, far more and a lot more individuals are being sued more than unpaid credit card financial debt. This is specially accurate in the declining US financial system. For the past two years, a lot more and much more people are obtaining it very tough to spend their expenses, let on your own their credit card debt. If you find oneself presently in the center of a credit score card lawsuit, make certain you go through this write-up now to understand the greatest methods to beat the lawsuit.Read more...
March 23, 2011
Never Let them Spin Your Head- Negotiating with Debt Collectors
Consumers who are "between jobs" have observed their credit card balances explode as they swipe plastic to make ends meet. Their curiosity prices have soared as well, thanks to a thing named the Universal Default Provision in their credit agreement: skip any payment, anywhere and Slam! You are at 29.9% just about everywhere. Add late payment charges and over limit fees and…Surprise! Some individuals just cannot preserve up.Read more...
March 22, 2011
Companies filing more lawsuits over credit card debt in South Florida
Thinking of charging something you may not be able to pay for? Expect your credit card company to come charging back at you.
Small claims courts in Broward and Palm Beach counties are reporting a spike in the number of cases against debtors, who typically owe between $2,000 to $4,000. Some judges say they are handling more than 25 such cases a week, compared to just a handful a few years ago.
Read more...
March 21, 2011
11 Dumb Ways to get in Debt
There are many reasons why people fall in debt, such as medical issues, school, starting a business and purchasing a home. Some situation you do not have much of choice and the debt is for a good reason, for example if you get in debt due to school it's fine because in the long run you will be able to make up for it. However there are some bad reasons why many fall in debt, the list below illustrates the top 11 …well not so good reasons to fall in debt.Read more...
March 18, 2011
Documents Reveal Credit Card Company Knew of 'Electronic Pickpocketing' Risk, According to Identity Stronghold
TAMPA, Fla.--(BUSINESS WIRE)--Documents recently uncovered at the U.S. Patent and Trademark Office show that at least one credit card company knew in advance that the contactless cards containing RFID chips they issued to millions of Americans are easily susceptible to electronic pickpocketing, despite the industry's repeated public claims to the contrary. Read more...
March 17,2011
Midland Funding to drop over 10,000 debt collection cases
Midland Funding LLC will drop more than 10,000 debt-collection cases against Maryland consumers under a class action settlement approved Wednesday in Baltimore federal court.
The dismissed claims, mostly for unpaid credit card debt that Midland bought from creditors, total at least $10.2 million, according to a court document filed Wednesday by the plaintiffs.
Read more...
March 15, 2011
Paying Taxes on Debt? You Have Got to Be Kidding Me
Anyone who has ever been in credit card debt knows just how burdensome it can be. Debt seemingly pervades your entire life, limiting your disposable income, causing stress, and potentially dragging down your credit score. If debt is mishandled, not only will these effects be magnified, but the possibility of a lawsuit will arise as well. As a result, it's no surprise that indebted consumers are typically desperate for a solution. They want to stop hemorrhaging money on interest, and most importantly, they want to have one less worry on their minds.Read more...
March 14, 2011
10 Tips to Avoid the Debt Trap
Have you ever thought about why so many of the people you know are struggling with debt? Do you ever wonder why banks keep lending to certain individuals, even when they are falling behind on their payments? Did you know that debt problems are a leading cause of major societal problems, such as stress, divorce and alcoholism?Read more...
March 11, 2011
The Beginning of a Debt Collection Lawsuit
You buy a purse here, and pair of shoes there, maybe even a nice dress for a date coming up, you don't have the money for it now, but you've got a credit card. Then there's a wedding, concert tickets, and well, you need gas to get everywhere! Or maybe you got laid off and you're just getting your Nuts and Bolts of a Credit Card Lawsuit
Credit card lawsuits are not uncommon. Read more...
March 10, 2011
9th Circuit Says Law Firm Must Pay $311K to Man From Whom It Sought to Collect Less Than $10K
An attorney representing a Montana consumer was jubilant today over news that a $311,000 verdict for his client, who was initially pro se in a collection case brought by a law firm over an old credit card debt of less than $5,000, had been upheld by a federal appeals court.Read more...
March 9, 2011
U.S. credit card agreements unreadable to 4 out of 5 adults
Contracts written at a reading level most can't understand
Wonder why you can't seem to make it through your credit card agreement? It's heavy reading: A CreditCards.com analysis found that the average U.S. credit card agreement is written on a 12th grade reading level, three grades above the average American's reading level.Read more...
March 4, 2011
Criminals Working for Debt Collectors May Be Stealing Your Identity
It is bad enough that many times consumers are illegal threatened and harassed by ruthless debt collectors. It appears that many debt collection companies do not perform criminal background checks on call center employees. Many of these employees have criminal records. Read more...
March 3, 2011
Four things you must do when involved in a debt collection lawsuit
You've been sued by a credit card company. You've been sued by a debt collector. Maybe you've been sued by a junk debt collector! You need to take some action. You cannot sit back and hope this things sorts itself out. When you are involved in a debt collection lawsuit, you must take positive action. Here are four things you can do to help yourself.Read more...
March 1, 2011
AmEx sees up to $500 million more in legal losses
American Express Co said it could face up to an additional $500 million in losses from lawsuits and governmental examinations, on top of what it has already reserved for them.Read more...
February 26, 2011
Man sues parents for racking up $26K on his credit cards
GALVESTON - A St. Louis, Mo., man claims his parents owe him about $26,000 arising from credit card charges.
In a lawsuit filed Feb. 14 in Galveston County Court at Law No. 2, Matthew G. McMahon explains that Eugene V. McMahon of Webster and Darlene L. Marzouk of Dickinson incurred numerous charges for which they refuse to pay. Read more...
February 22, 2010
Homeowner forecloses on Wells Fargo office, becomes folk hero
Right now in Philadelphia, there are black and white Sheriff's Sale posters all around town after a two year battle between Wells Fargo and a single long haired goth homeowner comes to a head.
Patrick, a single homeowner with a century old 6 bedroom 3 bath Tudor home bought for $180,000 in 2002 has paid his mortgage on time for seven years. A few years ago, he opens his mail to find a notice that his premiums are doubling, requiring a $1,000,000 insurance policy in the event the home is destroyed and needed to be rebuilt. Patrick cannot afford such an increase in his monthly budget. Read more...
February 21, 2011
California high court nips merchants on ZIP codes
SAN FRANCISCO » The California Supreme Court has ruled that merchants can no longer ask for the ZIP codes of customers who make purchases with credit cards because such requests violate a state consumer protection law. Read more...
February 18, 2011
Encore Is Settling Class-Action Suit
Encore Capital Group Inc. said it agreed to settle all pending class-action lawsuits accusing the nation's largest buyer of distressed consumer debt of using flawed or even phony affidavits to collect money it was owed.Read more...
February 16, 2011
Unpaid credit-card bills giving rise to lawsuits
In a new trend for settling defaulted credit-card debt, debt buyers are filing hundreds of lawsuits each week at the Tarrant County courthouse.
Starting Saturday, some of that caseload could shift to the eight justice of the peace courts in the county. The state Legislature passed a law this year raising the civil jurisdiction limit of justice of the peace courts to $10,000 from $5,000.Read more...
February 11, 2011
Supreme Court Rules in Favor of Chase in Credit Card Rate Hikes Case
Washington, DC: The Supreme Court recently ruled that Chase Bank USA could legally implement credit card rate hikes on a man's card without notifying him, The Associated Press reports. Read more...
February 10, 2011
Take this APR and Shove It
He's been called a "credit terrorist," but Steven Katz says you shouldn't feel guilty about sticking it to Wall Street.
At last count, Steven Katz owed $80,000 on his six credit cards, and he has no intention of paying any of it off. In fact, he'd like to show you how to be like him—a "credit terrorist" in open revolt against the banking system.Read more...
February 7, 2011
What would happen if I stopped making payments on my credit cards?
By not paying credit card debt, some people mistakenly believe that their debt will go away. Well, it's not that easy. You see the vast majority of creditors and debt collectors won't simply forget about a debt- especially if the debt is for thousands of dollars.Read more...
February 2, 2011
Capital One dredges up decade-old, charged-off debt
The bank says it was only complying with a new Fed rule when it billed a Hollywood couple for a $2,000 credit card balance it wrote off 10 years ago plus interest — a total of $5,195 — even though the statute of limitations has passed.
Frank Cavestani and his wife fell behind on their Capital One credit card payments about a decade ago. Their accounts were subsequently closed by the lender, which wrote off about $2,000 in debt they couldn't pay. Read more...
February 1, 2011
Can Creditors Sue You?
Debt collectors do a lot of things when trying to recoup money owed: They call you relentlessly, send you all sorts of strongly-worded letters, and even threaten you with lawsuits. But are these threats for real, or are they just empty words? Can creditors really sue you? Read more...
January 28, 2011
What Documents Are Needed in a Credit Card Bill Lawsuit?
If you go into default on your credit card bill, meaning you do not pay the bill as agreed when you signed up for the card, your creditor can sue you. Usually creditors do not sue unless they have exhausted all other options, such as written letters and phone calls. Credit card lawsuits can severely damage your credit or wreak havoc with your finances, so it is best to avoid them if at all possible. more...
January 27, 2011
Can a Credit Card Company Sue Me While I Am on Disability?
Receiving disability payments does not protect you from a credit card company's lawsuit -- but it may deter legal action from both the original creditor and any third-party debt collection agency that purchases your delinquent account. A credit card company or collection agency's ability to force an individual receiving disability to pay off his debt via a lawsuit is limited. more...
January 26, 2011
How Often Do Credit Card Companies Sue People for Money Owed?
Your credit card provider does not have to wait patiently for you to pay off your delinquent debt--- it can file a lawsuit against you as part of its collection efforts. A successful lawsuit gives the company the ability to take more aggressive action when collecting the debt---sometimes even directly seizing your property. Each credit card company's policies differ regarding debt collection lawsuits. more...
January 25, 2011
Reasons to Pay Down Credit Card Debt as Soon as Possible
Most of us know that paying off debt is important. After all, when you have debt, the interest payments provide a source of income for someone else. That's money you could be using to reach your own financial goals. However, it can be tempting to continuing paying down credit card debt at a slow pace, dictated by the minimum payment or a little bit more. It might be difficult to decide to do what it takes to pay off your credit card debt faster, but it can be worth it.
January 24, 2010
A Texas Credit Card Lawsuit Attorney Can Help Protect Your Interests
As Texas residents of different ages use credit cards, they may at some point need the advice of a Texas credit card lawsuit attorney. Bills tend to have an annoying habit of piling up. In tough economic times, card holders begin to downgrade paying their credit card bills, in favor of those with higher priority. Over time, this is leading to unacceptable delinquency rates and subsequent lawsuits. more...
January 21, 2011
East Texas law firm sued for violating Fair Debt Collection Practices Act
- A consumer has filed a lawsuit against an East Texas collection law firm for violating the Fair Debt Collection Practices Act.
Canton resident Frances Glasgow filed suit against Michael J. Scott PC in Carrollton on Jan. 4 in the Eastern District of Texas, Tyler Division. more...
January 20, 2011
Can You Generally Be Sued About Unsecured Credit Card Debt?
People with debts in many instances find themselves facing certain weighty judgments. With the particularly real uncertain economical times people are currently in, it is common for a person with a spouse and kids and career to discover his or her self practically torn when making financing options. Can you pay the visa or mastercard bills or confirm that the rent payment is paid for before anything else? Must you pay the loan companies or keep your utilities in good repayment ranking? An individual can absolutely be in a bind as monies are hard to come by and outstanding debts are running excessive. more...
January 19, 2011
Consequences of credit card default
As the economic climate continues to lag, more and more people are finding themselves facing difficulty in terms of paying their debts on time. If you are struggling with excessive consumer credit card debt, you may want to know what the implications might be. What you can expect depends largely on your financial situation and how you cope with things. more...
January 18, 2011
Watch what you post! Collectors turn to social media
"Yeah, I got the job!"
"Shopping now -- home at four"
Post such status updates while also owing money and folks other than your pals might take notice. Social networking websites are becoming hotspots for collection agencies wanting to track down elusive debtors. What you publish can help them find you -- not to chat, but to get you to pay up. more...
January 14, 2011
5 Things Credit Card Companies Don't Want You to Know
It's hard to believe, but sometimes credit card issuers don't have your best interests at heart. There are a few things, in particular, that would really help you save money on your credit cards. If you were aware of them, that is. more...
January 12, 2011
Credit card lawsuit must be filed within four years
Three years ago, a credit card company filed a lawsuit against me. I answered the lawsuit. I heard nothing for almost two years until I received a notice of hearing on a motion for summary judgment. Isn't there a four-year statute of limitations for lawsuits? Shouldn't this case now be dismissed? more...
January 11, 2011
Employment takes priority over debt
Dear Debt Adviser,
I am on unemployment, which will run out within the next couple of months. I have no savings and no assets except for a car worth about $1,000. A major bank just filed a collections suit against me with a court date of May 2011. I have about $40,000 in credit card debt (from various companies). I am 53 years old. What would you recommend I do — especially about the lawsuit? — Steve more...
January 9, 2011
Swanson, Klobuchar go after phone bill cramming
Minnesota Attorney General Lori Swanson Friday announced a lawsuit against a Pennsylvania company she says billed Minnesota consumers for long-distance services they didn't authorize or use.
The lawsuit alleges the company -- Cheap2Dial Telephone LLC -- charged more than 2,500 people since 2008 using a practice called "cramming." Swanson said the unwanted charges are hard to identify, and may show up in small amounts that accrue unnoticed over time. more...
January 7, 2011
Issuers may freeze, seize your bank account if you pay late on card
Depending on where you live, extreme means of getting past due funds may be OK
Dear Opening Credits,
I just read that a credit card company can take money from your bank account if they go through court. What if there are other names on the bank account? How can the credit card company do this? -- Anonymous more...
January 6, 2011
Helpful Tactics While In A Credit Card Debt Lawsuit
Credit card companies often file a credit card debt lawsuit to borrowers who fail to pay their outstanding debt. If you are a debtor who is currently involved in a credit card debt lawsuit, there are ways to protect yourself before and during the trial, and also ways to negotiate your way out of the lawsuit altogether. more...
January 05, 2011
FTC: Utahn took in $275 million in alleged scams
The St. George man lauded as a hero for numerous charitable efforts in Utah and Haiti has taken in$275 million since 2006 in a "massive Internet scam," according to a federal court document.
The motion was filed as part of a Las Vegas lawsuit by the Federal Trade Commission that alleges Jeremy Johnson, his I Works company and 60 related entities allegedly "tricked consumers into providing their credit and debit card billing information and then repeatedly billed these customers for memberships in various websites they never agreed to join." more...
January 4, 2011
Brent Coon's law firm sued for defaulting on American Express Credit card
According to a recent lawsuit brought by American Express, the Beaumont law firm Brent Coon & Associates has neglected to pay its corporate credit card balance, racking up more than $170,000 in charges on a past due account. more...
January 3, 2011
Dead Soul Is a Debt Collector
Deceased Woman's Name Was Robo-Signed on Thousands of Affidavits
Martha Kunkle has come back to life.
She died in 1995. Yet her signature later appeared on thousands of affidavits submitted by one of the nation's largest debt collectors, Portfolio Recovery Associates Inc., in lawsuits filed against borrowers. more...
December 29, 2010
Discover Card Sued for Alleged Deceit
Suit Aims to Get Credit Giant to Refund Customers for Unwanted Card Protections
More than 176 million people own at least one credit card. And one of the big giants in the industry is now being sued for allegedly misleading its customers. more...
December 28, 2010
Piggy Bank Awards: Big porkers include ATM fees, credit cards
Banks are hogging capital, lenders are squealing about being forced to play fair, mortgage firms are wallowing in fraud and credit card companies are STILL inventing new ways to steal your bacon. more...
December 27, 2010
How do you file a Response to a lawsuit?
A lawsuit has been filed against me for an olc credti card debt. The summons states I can file a Response to the courst is I don't want Judgement taken against me.
How do I write up a Response, what do I need to include in it. I'm willing to pay off the debt, but since it's gotten to court I assume all further correspondence and negotiations have to be done through court.. what do I do???
I don't want to have to go to court. I want to settle this out of court, basically more...
December 24, 2010
During a credit card lawsuit can a company subpoena records from companies you did business when not the issueing company.
I am in a lawsuit with a company who brought my debt from washington mutual/chase. I opened the account with providian to start wtih. WM/Chase sold the bad debt to Midland Funding. They are sending subpoenas to 3 companies I used on the card. Are they allowed to do this in the state of NJ. I requested the orginal credit card app. & all receipts & statements. They have sent me a few statements only. more...
December 23, 2010
Trapped in Bank of America Hell
Are you one of the lucky ones? Have a good job, live in a nice neighborhood, enjoy your cozy home? Think foreclosure only impacts the reckless or the unemployed?
Think again.
George Mahoney worked and saved and built his cozy colonial-style home in Lynnfield, Massachusetts in 1981. There, he and his wife raised three lovely daughters. For many years, the Mahoneys paid down their relatively small mortgage with their local bank -- a division of Bank of America (BofA). In 2007, they took out a second mortgage to help a daughter start a small business. Two wage earners, a great credit record -- the loan was a breeze. That was when the trouble began. more...
December 22, 2010
Texas Credit Card Debt Laws
As compared to other states in the United States of America, consumers get better protection under Texas credit card debt laws, especially when it comes to protection against liens and garnishments for debts related to credit cards. Though the Fair Debt Collection Practices Act introduced by the FTC (Federal Trade Commission) is applicable in Texas, the state has enacted additional laws that ensure much stronger protection to debtors. more...
December 21, 2010
Debt Settlement Companies: The New Rules
Debt settlement companies can be very useful tools when it comes to reining in an out-of-control debt spiral. Unfortunately, a number of individuals, some criminal and unethical, others just inept and inefficient, have set up companies that end up making a consumer's debt problems worse rather than better. In this series, WalletPop takes a look at the debt settlement industry, explaining how it works and talking to some of its players. This is the second installment in our debt settlement series. more...
December 20, 2010
Family Member Responsibility for Credit Card Debt After Death
In most cases, family members are not legally responsible for repaying the credit card debt of the deceased and thus not subject to collection activity.
Leaving outstanding debts behind after death is remarkably common. Unfortunately, the family members of the deceased are left to sort out his finances and deal with his creditors. If your loved one dies still owing a credit card balance, responsibility for payment doesn't necessarily fall onto your shoulders. more...
December 17, 2010
Capital One Auto Finance sues to recover $12K debt
Hoping to recover nearly $12, 000 from a past due account, Capital One Auto Finance had filed suit against Beaumont resident Jarron Peacock and Houston resident Demetrie Holman.
The suit was filed Dec. 13 in Jefferson County District Court. more...
December 16, 2010
Credit Card Debt and Contract Law or Please File a Lawsuit Against Me Mr Card Company
When it comes to credit card debt people needlessly worry about their original card contract and worry about potential lawsuits these card companies may bring against them. Consequently debt collectors and collection Law firms are now the most popular feared villains in the card debt nightmare in the United States and Canada. more...
December 15, 2010
Woman sues after $287M credit card bill
PHILADELPHIA, Dec. 14 (UPI) -- A Pennsylvania woman's lawsuit against Capital One claims she was harassed for months over an erroneous $286,651,237 credit card bill.
The Philadelphia court lawsuit filed by Patrice Perry, 58, alleges the company used "terroristic debt-collection methods" while dunning her, family members and co-workers for months to collect on an erroneous debt, the Philadelphia Daily News reported Tuesday. more...
December 14, 2010
Lawsuit of the Day: Capital One Sues Cardholder for $286 Million and Fails to Appear
Credit card debt collection actions are a dime a dozen. But it's not often that Jane Q. Consumer is accused of failing to pay a bank for running up charges to the tune of close to $300 million.
Courthouse News Service has linked to a complaint filed Wednesday in a Pennsylvania state court, accusing Capital One of harassing Patrice Perry in an attempt to collect on unpaid credit card bills. Allegedly, Capital One didn't like that Patrice responded to their initial collection letters by hiring an attorney. At that point, the bank was seeking something in the neighborhood of $4,000. more...
December 13, 2010
Debtor strikes back at credit card company
Patrice Perry's dispute with Capital One had been escalating. Someone called her family and her coworkers, trying to get her to pay. She hired an attorney, but the credit card company kept sending bills.
And then, the big blow.
"Please send your payment of $286,651,237 in the enclosed envelope," read the statement dated August 2009. more...
December 10, 2010
For Discover, Rare Allegations of Fraud
Minnesota's attorney general sued Discover Financial Services on Monday, alleging that the credit card company tricked consumers into paying for identity theft and emergency account protection.
Discover made "aggressive, misleading, and deceptive telemarketing calls to sign people up for these products," according to a press release by the attorney general's office. The lawsuit was filed in Hennepin County District Court in Minneapolis. more...
December 9, 2010
Consumers Must Fight Back – 94 Percent of Debt Lawsuits Become Default Judgments
For whatever reason, upwards of ninety-four percent (94%) credit card / debt lawsuits are not responded to by consumers. Most often the reasons are that consumers/debtors cannot afford an attorney, or are afraid of the legal system or possibly not aware that a suit was filed against them for a debt. more...
December 8, 2010
Minnesota Says Discover Cardholders Were Deceived on Financial Products
The Minnesota attorney general filed a lawsuit on Monday accusing Discover Financial Services of tricking consumers into buying optional products that would protect them from fraud and financial hardship.
The lawsuit, filed in Hennepin County District Court, contends that Discover, one of the nation's largest credit card issuers, made "aggressive, misleading and deceptive" telemarketing calls to sign up consumers for these products, which include identity theft protection and a credit score tracker. more...
December 7, 2010
Credit card company sued over charges
Dent man found $900 on his Discover bill for 'protection plan'
Delbert Engler didn't even remember talking to representatives from Discover, his credit card company, until he heard his own voice in a recording presented to him by Minnesota Attorney General Lori Swanson. Not only was the conversation a surprise, so was the $900 in charges the Dent, Minn., man later found on his bill. more...
December 6, 2010
How do you get a credit card lawsuit dismissed?
CREDIT CARD LAWSUIT”: There Are Many Ways To Get It Dismissed
The number #1 credit card collection tactic used by debt collectors today is to file a “credit card lawsuit” against you. Debt collectors will call you 3-5 times a day in an attempt to pressure you to pay them and if you don’t then they file a credit card lawsuit against you. What a better way to pressure you then to send a process server to your door step with a credit card lawsuit. more...
December 3, 2010
Not Paying Credit Card Debt- You Can Run But You Can't Hide
"Exactly what would likely happen if I quit making monthly payments on my charge cards?"
Simply by not paying credit card debt, a number of people foolishly think that their credit card debt will go away. Actually, it's not that simple. In reality the vast majority of lenders and debt collectors are not going to easily forget about a financial debt – particularly if the debt is for thousands of dollars. more...
December 2, 2010
Credit Card Debt-How You Can Be Sued For
If you fall behind on payments, the credit card company sue you or not depending on the amount you owe. Credit card companies usually have a lawsuit if at least 4 to 6 months past due. To prevent encouraged to contact your creditors and negotiate a repayment plan you can afford. If your creditors refuse to negotiate with you contact a debt solution. They will be able to setup a payment plan with your creditors. more...
December 1, 2010
Boom in Debt Buying Fuels Another Boom—in Lawsuits
Glynis Martin, a 56-year-old New York social worker, started struggling to keep up with her credit-card bills about five years ago as the mortgage on her Bronx apartment ate up most of her paycheck.
Debt collectors are turning to the courts to re-coup bad debts. WSJ's Jessica Silver-Greenberg talks with Kelsey Hubbard about how the new tactics affect consumers and the new burden for the courts. more...
November 29, 2010
Debt Settlement Could Cost More Than You Think
IF YOU'RE DROWNING IN unpaid bills and desperately looking for a way out, chances are you've come across an offer that sounds something like this: For a fee, a professional debt-settlement company will help rid you of your debt for as little as half the amount you owe.
Sounds like a scam? Or like the break you've been hoping for? more...
November 26, 2010
When Debt Collectors Attack: How Are You Protected by Federal Law?
The FDCPA is the Fair Debt Collection Practices Act. Enacted in 1977, it's the Federal law that protects consumers from abusive collection practices from third-party debt collectors. There are also many states that have similar protective statutes. For example, those of you who live in California enjoy the FDCPA protections, as well as those afforded to you by the Rosenthal Act. more...
November 25, 2010
Just got a letter in the mail stating I'm getting sued for credit card debt. Options?
I stopped paying my credit card back in 2007 because I was going through some rough times in between jobs. But as you all know the bills never stop so my credit cards got jacked up. I stopped paying them for about a year and started receiving phone calls end of 2008/beginning of 2009. Like an idiot I answered originally. And a collection agency on the other end said I had to come up with the money in a month or so. He also said I could make payments but they would have to be in excess of 0 a month which is ridiculous. I told him I could only afford 0 tops and he basically said that would only pay the interest on the credit card. Well what person in there right mind would pay 0 a month for absolutely nothing? I might as well burn it. So i just ignored it completely. It went away for awhile and i stopped receiving calls. more...
November 24, 2010
The certainty of death and debt collection
Death may be the great equalizer, but it's no escape from the debt collector.
The explosion of consumer borrowing — not to mention the skyrocketing cost of health care, which many consumers finance at least partly on high-interest credit cards — means Americans are taking more debt with them when they die. more...
November 23, 2010
Credit firm accused of 'robo-signing'
Lawsuit says it made false claims about reviewing paperwork for loans
The St. Cloud office of a national debt collection business is accused in a lawsuit of being a "robo-signing" operation, generating a wave of documents to help win favorable financial judgments in court. more...
November 22, 2010
Another Debt Collector Charged With Illegally Posing as a County Clerk
An Oklahoma based payday lending firm operating under the names CASHMAX, Fed Cash, TOPCASH and Cash Service Center and owned by Patrick D. "Dylan" White found itself subject to a temporary restraining order issued by a Texas court earlier this month. Apparently, the lending firm was illegally misrepresenting itself as an official Dallas County government agency. more...
November 19, 2010
Law meant to police debt collection tactics
The phone calls came in three or four times a day, from two or three numbers.
"I had caller ID. It just got to the point, I didn't answer. I knew who they were," said Wayne Weiderman Sr., 63.
The "who" was Cavalry Portfolio Services, a debt collection agency. more...
November 18, 2010
What happens when you have a deliquent credit card and the attorneys are calling you?
I am deliquent on 7 cards but only one has been harassing me since it was 2 days late. The others have just kept adding it to my bill each month. This card company called me 8 or 10 times a day from 8 am till 10 pm and even on sunday mornings. Mostly automated caling things and since I have an answering machine, they were all hang up calls. This is a card that I closed 3 years back because they just kept raising the interest although I paid my bill 2 weeks early everymonth. I made timely payments for almost 3 years but can no longer do it. They have turned it over to an attorney and I got a call sunday morning and today. I have written the credit card company and explained my situation but they have ignored it. I was sending a small payment to them but it made no difference to them and I can no longer send it anyway. I have no money for anything except rent and food, and feeding my child. I am a few weeks away from not even having rent money, so I'm in serious trouble. more...
November 17, 2010
credit card problems
I am a senior citizen living on social security. I have no money. My credit card companies (5) tripled their interest rate making it impossible for me to make my payments. One company has filed a judgement on my homestead and I'm afraid others are going to do the same. What can I do? more...
November 12, 2010
Is banning class action lawsuits unconstitutional?
The U.S. Supreme Court will hear a case between AT&T Mobility and Concepcion, regarding the fine print in AT&T's contracts barring consumers to join a class action lawsuit against the company. David Lazarus explains.
TEXT OF INTERVIEW
JEREMY HOBSON: When you buy a cell phone or anything else that requires you to sign a contract with a bunch of fine print, more...
November 11, 2010
If I pay my debts, Can i apply for credit card and loan again?
If I pay my debts, Can i apply for credit card and loan again?
I have debts for credit card and previous landlord that ruined my credit and I cant get any credit card or car loan ? If I paid this off, how long will it erase this negative credit on my credit score so i can apply for car loan or credit card again.
Negative credit usually stays on your bureau reports for 7 years, unless you were sued and have a judgment entered against you, which I believe stays on your credit for 10 years. more...
November 10, 2010
How to Answer a Summons for Breach of Contract on a Credit Card
Failing to make payments as agreed on your credit card account may result in the card company or a debt collector suing you for breach of contract. You would receive a summons, which is a legal notification of the lawsuit. Generally summonses are hand-delivered to your home or place of business. A second document, called a complaint, is attached to the summons. The complaint is the actual lawsuit and explains why you are being sued. You must respond to the lawsuit with a legal document of your own, called an "answer." more...
November 9, 2010
Credit Card Debt Relief Options – When To Consider Using Debt Negotiation Services
A Credit card plays a very significant and important role in this time of economic chaos. Large quantities of individuals are depending on credit card in order to meet up their ends and other expenses of life easily. Since the inflation hit the economy the financial conditions of the people are getting disturbed due to which they are unable to fulfill their basic needs of life easily. In order to overcome this situation usually people take the advantage of this facility. The Use of credit card is good as long as a person is exercising it wisely and properly but if the person misuses it then returning it back will really become a hassle. more...
November 8, 2010
How To Get Rid Of High Credit Card Debt - Debt Survival Guide - Credit Card Lawsuit
Are you in trouble with high creit card debt? Do you feel stressed to the point you don't know which way to turn to get the help that you need? There are several places you can go to get the right information you need to help determine which is the best solution for your situation in resolving credit card debt.
1. Over the last 30 years the credit card industry has grown exponentially and the consumer debt collection business has as well. more...
November 5, 2010
Really, What Is A Judgment On Credit?
There are still people who have not fully grasped the meaning of having a judgment on your credit report. Anyone who does not fully understand this situation can find him/herself in very serious crises.
A judgment on credit is a court order given in favor of a judgment creditor who initiated the lawsuit against you. The judgment is an affirmation of the fact that you are indebted to the creditor and have not paid requiring the court to persuade you to pay through the court order. more...
November 4, 2010
Will Credit Card Settlement Bring Fee Relief to Merchants?
Last summer, the Senate, while debating what eventually became the Dodd-Frank Wall Street Reform and Consumer Protection Act, took a stab at reining in fees for debit and credit cards. The amendment, proposed by Democratic Senator Dick Durbin of Illinois, would have ended the card networks' practice of preventing merchants from using incentives to steer customers toward other credit cards and credit card brands. When the bill reached the president's desk, however, that provision had been replaced by one that allows merchants to offer discounts only for certain forms of payment. more...
November 3, 2010
Debt Elimination – Why Eliminating 50% Of Your Credit Card Debt Is A Reality
Credit cards can be the bane of contemporary lifestyles although they do have their advantages- buy now pay later! Of course when one uses plastic money to sustain him or herself the problem arises- economic depression bills unchecked burgeoning expenses unemployment in the face of the global slump and the fact that some shops will only accept credit card purchases and not cash in return for goods and services combine to make this piece of plastic a raging bone of contention not to mention the high interest rates charged by banks on credit cards which seem to be forever soaring. Debt elimination is a good way to waive of your credit card debt by 50%- especially if your credit has run in excess of 10K. more...
November 2, 2010
Divorce doesn't dissolve joint card debt
If you don't close joint accounts when you divorce, you're still responsible
Dear Credit Guy,
My ex-husband and I opened a joint credit card back in 1998. We used it some and paid the entire thing off. In 2004, I left my husband and moved out. He used our credit card, which I thought was closed, and racked up over $4,000 in about three months without my knowledge. He eventually declared bankruptcy, but he did not put this card in his bankruptcy because I was on the card and I wasn't filing with him. Now, years later, I get a summons to court for this money and the creditor is not coming after him. Is there anything I can do? I did not sign for any of those purchases, and I wasn't living with him at the time either. I don't have much money. I am lost on what to do about this. I would appreciate any advice you could give me. -- Joanne more...
November 1, 2010
7 ways to outsmart your credit card company
Common-sense tips to keep hard-earned money in your pocket
The Credit Card Accountability, Responsibility and Disclosure Act became law in May 2009 and took effect in February. The intent is to make credit card companies more transparent in their activities and to eliminate many of their practices that most deem unfair, like retroactively raising interest rates or charging unreasonable service fees. more...
October 28, 2010
Credit Card Debt Consolidation – Proceed With Caution
Credit card debt is a burden that weighs heavily on millions of people. Although the situation may feel desperate sometimes, it is important to stay focused on your long-term goals. You must not let raw emotion carry the day; your future is at stake. Many strategies and services are available to help people struggling with credit card debt, and it is important to use logic and reason, rather than emotion, when deciding among them. Choosing a strategy that does not suit your particular situation could lead to a less than optimum outcome. This article discusses some of the details of debt consolidation that many people miss and other options that may be of use. more...
October 27, 2010
How to Make a Payment Offer on a Credit Card Lawsuit
A credit card company has the right to file a lawsuit against you in attempt to collect the money you owe. They may file a lawsuit as early as 60 days after your first missed payment, and you will be required to appear in court after receiving the summons. On top of lawyer fees and court costs, you can wind up owing far more than the cost of your original debt and, during difficult financial times, the extra cost can be an incredible burden on your already stretched bank account. more...
October 26, 2010
Credit card debt keeping seniors out of retirement
Financial troubles brought on by the national recession have resulted in many senior citizens running up so much credit card debt that they can no longer afford to retire.
A large and growing number of Americans over the age of 55 have been required to put their retirement plans on hold, according to USA Today. Some seniors saw their incomes drop as much as 75 percent, forcing them to rely more on their credit cards to make ends meet. For many of these individuals, a heavier reliance on credit has led to overwhelming debt. more...
October 25, 2010
Helpful Tactics While In A Credit Card Debt Lawsuit
Credit card companies often file a credit card debt lawsuit to borrowers who fail to pay their outstanding debt. If you are a debtor who is currently involved in a credit card debt lawsuit, there are ways to protect yourself before and during the trial, and also ways to negotiate your way out of the lawsuit altogether. more...
Verify and Review Debt
October 22, 2010
If You Stop Paying Your Credit Cards Can You Get Sued?
In the event that you quit paying your credit cards, it's possible, however highly improbable if you have a lot of unsecured debt(e.g. credit card, medical bills, collection/charge-offs).
Credit card companies as well as debt collectors connected with unsecured debt do have the right to carry out legal measures to collect an overdue debt. more...
October 21, 2010
Sued by Credit Card Company
One of the things that sends most people into a panic is receiving a summons from the court for a credit card that you have defaulted on. There are several options available to you if you are being sued by a credit card company. Depending the state that the lawsuit was filed there are several steps you should take to resolve a lawsuit that is filed against you by a credit card company. If you have received a summons from the court for a credit card company then you can do the following: more...
October 20, 2010
Fed to close credit card loophole on fees
WASHINGTON — The Federal Reserve on Tuesday moved to stop credit card issuers from using a regulatory loophole to charge the most vulnerable customers exorbitant sign-up fees.
The proposed regulation is aimed squarely at "fee-harvester cards" targeted at consumers with poor credit histories. The cards carry interest rates as high as 79 percent and typically have limits of a few hundred dollars. They also come with hefty annual fees and other charges that can quickly eat up the available credit. more...
October 19, 2010
With Better Credit - YOU Have a Better Life!
"All that is necessary for the triumph of evil is that good men do nothing."
- Edmund Burke 1729—1797
Stop Debt Collectors Here!
Consumer Debt $2 Trillion
America's appetite for borrowing money bloats U.S. consumer debt to a record high almost every month. As of September 2006, the tab stood at $2 trillion and was spurting at an annual rate of 10 percent. Through good times and bad, spending tomorrow's dollars today never goes out of fashion. more...
October 18, 2010
Credit Card Lawsuits – "But I Owe the Money"
I hear this one all the time. Potential clients call my office because they have been sued by collection agencies on old credit card accounts. I tell them that we can defend the case and likely win. They often say "But, I owe the money?"
My response to that is no, you don't. Most people do not realize this, but here's how it works with a credit card. You obtain a card from original creditor. Something happens and you lose your ability to pay so you go into default. The original creditor waits up to 180 days and then charges off the account. At this point, the original creditor has 2 choices: 1) try to collect from you by filing a lawsuit; or 2) selling the debt to a junk debt buyer or collection agency. Often times, the original creditor chooses option 2. more...
October 15, 2010
Judge Denies McAfee's Motion To Dismiss Counts In Data-Pass Lawsuit
A lawsuit against McAfee for allegedly tricking consumers into purchasing unwanted subscriptions to services unrelated to the security company's software has cleared a preliminary hurdle.
U.S. District Court Judge Lucy Koh in San Jose recently denied McAfee's motion to dismiss several counts related to the alleged datapass marketing scheme. Koh's decision paves the way for the potential class-action lawsuit, filed in April by Melissa Ferrington and Cheryl Schmidt, to proceed. more...
October 14, 2010
Proposed credit card settlement could mean lower product prices
Tod's tightwad mug Earlier this month, the U.S Department of Justice and seven states attorneys general simultaneously filed a lawsuit against, and reached a proposed settlement with, several major credit-card companies. The results of these actions could potentially change the way everyday goods are priced, depending on your method of payment. more...
October 13, 2010
Pros and cons of debt consolidation
The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the resolution program. Be sure to evaluate each program relative to your prioritization of these factors. more...
October 12, 2010
How wage garnishment works -- and how to avoid it
Ignoring credit card debt can lead to garnished wages
Ignoring outstanding credit card debt can take a bite out of your paycheck. Wage garnishment -- a last ditch effort at debt collection -- hits debtors where it hurts: their ability to pay the bills, fill the gas tank and feed their families. more...
October 11, 2010
Credit Card Suit Means Relief For Struggling Consumers
Score one for cash-strapped college students, struggling singles and families living paycheck to paycheck. That's because the announcement yesterday of a deal between the Justice Department and credit card giants Visa and MasterCard looks to be a win for the little guy–and his wallet. more...
October 8, 2010
What Will the DOJ Lawsuit Do for You?
Retailers are no doubt popping open the champagne to celebrate the Department of Justice's settlement of a lawsuit challenging rules that American Express, MasterCard and Visa have in place to "prevent merchants from offering consumers discounts, rewards and information about card costs, ultimately resulting in consumers paying more for their purchases." more...
October 7, 2010
Citibank Credit Card Rates Class Action Settlement Proposed
Washington, DC: A class action settlement has been reached in a class action lawsuit pending against Citibank (South Dakota), N.A. ("Citibank" or "Defendant) in the United States District Court for the Central District of California (styled Hoffman v. Citibank (South Dakota), N.A., Civil Action Case No. SACV 06-571 AJG (MLGx)) alleging, among other things, that Citibank improperly imposed increased interest rates on Citibank credit cards customers due to delinquency or default without giving prior notice, according to the Citibank class action settlement notice. more...
October 6, 2010
Credit card giants settle in US lawsuit
NEW YORK - Visa and MasterCard, the world's dominant credit card payment processors, have agreed to settle claims arising from complaints by retailers, who say the companies charge too much and act to stifle competition.
The US Department of Justice has for two years been investigating the pair, alongside American Express, in one of numerous legal threats to the business models of the big credit card companies. Yesterday, it sued all three and simultaneously announced a settlement with Visa and MasterCard. more...
October 5, 2010
Suit targets 3 credit card companies
Likely settlement with 2 of them could mean more discounts for cash
Consumers may see more discounts for using cash instead of credit cards under a tentative deal announced Monday by the Justice Department and the credit card companies Visa and MasterCard. more...
October 4, 2010
Legally Eliminate Credit Card Debt - How To Claim A Financial Hardship And Settle Unsecured Debt
There are many consumers that struggle with credit card debt because they suffer a financial hardship as a result of the bad turn of the economy. Old loans turned into new debt that keeps increasing each month and this makes it impossible for many to meet monthly expenses and maintain a decent life style. There are ways to legally eliminate credit card debt without having to worry about a low credit score or a lawsuit from the creditors. more...
October 1, 2010
5 Domino Effects Of Credit Card Default
Have you defaulted on your credit card? If so, you’re probably worried about what can happen to you after you fail to pay the bill. Below are five domino effects of credit card default:
1. If you default on your credit card, your interest rate could increase significantly. Credit card default is costly and once your interest rate increases you could be facing a bill that is much more than your original purchases. more...
September 29, 2010
Credit Card Lawsuit - I Don't Want to Go to Court
Many people have a fear of going to court. The judge, the jury, it can be a scary place for someone who doesn't do it every day. Truth be told, however, is that most credit card cases do not require the individual to actually go to court.
The truth of the matter is that many of the credit accounts that go delinquent do not result in immediate lawsuits. more...
September 28, 2010
What happens if you are sued by a credit card company
Sued by a credit-card companies, collection agencies, or other creditor can be stressful and frightening. The most important thing for a person who has been pursued is not to ignore the cause. The accused in a lawsuit should follow the correct procedure in a timely manner, or may be a case made against them by default. This article explains how a test, the typical procedures for responding to a cause, and consequences oftest. more...
September 24, 2010
Why Hiring a Texas Credit Card Lawsuit Defense Attorney Is Your Best Option
Credit card companies and debt collectors in Texas are getting extremely aggressive in trying to collect consumer debts. If the usual harassing calls will not work, they usually file a lawsuit against the borrower. If you have been sued by a credit card company or a debt collector, then your best course of action is to get the services of a Texas credit card defense attorney. Hiring a Texas debt collection attorney is the only viable option for you to increase your chance of winning the case outright. more...
September 23, 2010
Death won't stop these debt collectors
Hounded series: A new breed of collector is targeting the still-grieving family members of people who have died without paying their bills.
Todd Murray recalls the exact moment when he decided to end his brief career as a debt collections attorney. more...
September 22, 2010
Drowning in debt? Here are your options
Struggling to pay your debts and looking for a way out? New rules severely limiting the marketing tactics of debt settlement companies kick in next week. And starting next month, the firms won't be able to collect large up-front fees any longer. So with the disappearance of those all-too-familiar "50 cents on the dollar" late night TV ads and radio spots, the folks at “The Today Show” figured it would be a good time to review the options available to consumers who find themselves drowning in debt. more...
September 21, 2010
How to Settle an Old Credit Card Debt You Are Being Sued For
Whether it's a credit card company or collection agency that files a lawsuit against you for unpaid debts, if they win the case you'll end up with a civil judgment on your record. Not only does a judgment damage your credit rating, but it gives the creditor additional collection rights. Depending on your state of residence, this can include wage garnishment, bank levies and even real estate liens. If you're being sued for an old credit card debt, you can contact your creditor and attempt to settle the account rather than attend a court hearing. more...
September 17, 2010
Citi Credit Card Customers May Benefit from Class Action Lawsuit
If you had a credit card account with Citibank between May 5, 2002 and May 24, 2010, and your interest rate was increased as a result of a default or delinquency, you could get a payment from a class action settlement.
A proposed class action settlement has been reached in a lawsuit brought against Citibank involving increases to the interest rate on Citibank credit cards due to delinquency or default. (Note: the name of the case is Hoffman v. Citibank (South Dakota), N.A., Civil Action Case No. SACV 06-571 AJG [MLGx]). more...
September 16, 2010
A Bit Of Things With Regards To Charge Card Account Debt Settlement
Q: How does your charge card debt settlement program work?
A: The goal of our program is to settle and resolve your debts for less than you actually owe. When you enroll in our debt settlement program, each month your payment is automatically deducted from your checking account and part is used to pay our feess and the rest is saved in a trust account set up for you by Noteworld Servicing Center with Key Bank. Once you have saved sufficient funds in this account and your credit card account has become eligible for settlement, we negotiate with one of your creditors to get them to accept a lump sum pay off for less than you owe to completely satisfy the debt. Once they agree, we get the proper documentation from the creditor showing this and then with your permission, authorize Noteworld to distribute the funds from your trust account in accordance with the settlement agreement. This process continues until the program is complete more...
September 15, 2010
Visa, MasterCard Decline as Analyst Says Stocks Are Probably `Dead Money'
Visa and MasterCard have plunged more than 20 percent this year.
Visa Inc. and MasterCard Inc., the world’s biggest payments networks, fell to 52-week lows after an analyst said federal caps on fees and pending litigation may limit their ability to raise prices. more...
September 14, 2010
Why Is My Credit Card Company Suing Me?
You’ve received a summons and complaint from your credit card company. What to do now? Should you file for bankruptcy? First, understand that credit card debt is a type of unsecured debt, meaning that if you can’t make payments, your credit card company cannot come after your property. However, this all changes when the credit card company brings a lawsuit to enforce a past due account. If the debt owed is valid (which it usually is), it is likely that the credit card company will be able to obtain a judgment for the full amount that is past due. This is not because the credit card companies have a team of star litigators on the payroll. No, it’s rare that a debtor will file an answer to a complaint to dispute a valid debt. This allows the credit card company to win the lawsuit by default. Why is this important? more...
September 13, 2010
Why Hiring a Texas Credit Card Lawsuit Defense Attorney Is Your Best Option
Credit card companies and debt collectors in Texas are getting extremely aggressive in trying to collect consumer debts. If the usual harassing calls will not work, they usually file a lawsuit against the borrower. If you have been sued by a credit card company or a debt collector, then your best course of action is to get the services of a Texas credit card defense attorney. Hiring a Texas debt collection attorney is the only viable option for you to increase your chance of winning the case outright. more...
September 11, 2010
Credit card debt consolidation is not always a good idea
It is debt consolidation. One day passes without you hear a spot for someone who at least do it for you? There are hundreds, perhaps thousands of agencies, companies and individuals calling for various means of credit card debts. Ever wonder why? People try to keep things far back in debt to her. These efforts, liquidation of debt and equity consolidation home loan, the payments if theCollectors like you dog pretty good policies, sound to keep collectors from behind, but sometimes not a good idea. Sometimes they can really hurt. more...
September 9, 2010
The Settlement Processing Solution Regarding Your Debts
The Settlement Processing program is designed to get all the processing and follow up from the hands of affiliates of the Debt Negotiating business. You just need to provide a customer in need and the business does the rest. The turn-key option includes industry standard profits, training as well as aid. The affiliate makes lucrative profits by helping people in need and by offering debt negotiation and loan modification services. more...
September 8, 2010
Self Credit Repair Vs. Credit Repair Company
Today more than ever many people are discovering that their credit scores are no longer good enough to qualify for mortgages, car loans and other financial accounts. To overcome this problem a lot of people are turning to credit repair to try and help them improve their scores.
The biggest problem these people face when starting credit repair is deciding between doing the credit repair themselves or paying a credit repair company to complete the work for them. Below we will compare self credit repair to paid credit repair to help you decide what method will work better for you! more...
September 3, 2010
What Happens If I Stop Paying Credit Card Debt?
As an bankruptcy lawyer, one of the first things I advise my clients to do when they decide they are filing bankruptcy and hire me is to stop paying on their credit cards. Recently, though, before I could offer that advice, a client asked me: “What happens when I stop paying my credit cards?”
The answer? Your credit card company will begin the collection process, which normally proceeds in this manner: more...
September 2, 2010
Justice denied as debt seizures soar
After two weeks without a decent meal, Van Tran looked tired and agitated as he walked into the Ramsey County courtroom for a hearing in May.
Tran, 55, a janitor and security guard from St. Paul, had waited for this chance to explain why a collections firm made a serious mistake when it seized $8,016 from his bank accounts -- three years worth of savings -- to collect an alleged Discover credit card debt. Tran held a police report showing he was a victim of identity theft. more...
September 1, 2010
Why Hiring a Texas Credit Card Lawsuit Defense Attorney Is Your Best Option
Credit card companies and debt collectors in Texas are getting extremely aggressive in trying to collect consumer debts. If the usual harassing calls will not work, they usually file a lawsuit against the borrower. If you have been sued by a credit card company or a debt collector, then your best course of action is to get the services of a Texas credit card defense attorney. Hiring a Texas debt collection attorney is the only viable option for you to increase your chance of winning the case outright. more...
August 30, 2010
The Best Texas Collection Defense Attorney Can Help You with Debt Negotiation
There is no denying the fact that credit card debt problems are increasing. More and more consumers are defaulting on their credit card payments because of arbitrary and exorbitant increases of interest rates. It is not surprising also to see a sharp increase in the numbers of credit card lawsuits filed everyday. If you have been sued by your credit card company or debt collector, there are still several options available for you to solve the problem. You might want to consider hiring a Texas attorney credit card lawsuit specialist. A Texas collection defense attorney can represent you in actual court battles. Your attorney can also help you in debt negotiation. more...
August 27, 2010
Stressed debtors open to calls for years
Skipped credit-card payments - from five years ago or two years ago or six months ago - have a pulse of their own. That debt lives on, generating phone calls, collection notices and unrelenting stress.
Consumers years behind on their bills may find themselves hounded by card companies, collection agencies or lawyers trying to garnishee wages or place liens on property. more...
August 25, 2010
Nine dollars Here, twenty Cents There and a Credit-Card Lawsuit
IT’S easier to steal a million dollars a dollar at a time than a million dollars once. So goes an old saying.
If the allegations in a civil case filed in a federal court in Chicago hold up, you can even haul off $10 million if you stick to $9 here or 20 cents there. more...
August 24, 2010
The Hidden Gem Of Past Due Credit Card Debt
Whilst You Would Possibly Be Facing A Lawsuit From Collectors
Upon getting allow your credit card debt building up, you are going to in finding it arduous to pay it again even though you pay the credit card company each and every month. Neglected payments are punished with serious consequences that make it difficult to pay the following month and so forth; should you also had the prime interest rates that the bank card firms ask for his or her loans, you are going to soon see why so many consumers are in deep credit debt. It can be commonplace for credit card firms to reduce your debt when they see that you’re not able to pay the entire amount, but when you don’t touch them throughout the first few months of your financial issues, you may have larger ones ahead. more...
August 23, 2010
How long does Your Credit clear up?
Following the economic recession and loss of jobs, many families have been struggling to balance their check books. Things have been going from bad to worse as credit card payments mount up and people are late or unable to pay. When these things happen automatically the credit history is affected adversely. There are of course ways to clear your credit but every options will take time. Once your credit has a blemish on it, there is no quick fix solution to making things alright. You can however take various steps to make the journey towards a better credit score in the long run of things. On an average for the credit score to improve after a spell is 7 years. more...
August 20, 2010
Afraid of Credit Card Lawsuit? Don't Be - Here's How to Beat It
Nowadays, more and more people are being sued over unpaid credit card debt. This is especially true in the declining US economy. For the past two years, more and more people are finding it very difficult to pay their bills, let alone their credit card debt. If you find yourself currently in the middle of a credit card lawsuit, make sure you read this article now to learn the best strategies to beat the lawsuit. more...
August 19, 2010
Judgments on Your Credit Report
If you have judgments on your credit report, you might be wondering how to remove them, if you can remove them, and how they will affect your credit card score.
A judgment is a court order that demands a debtor pay a debt. If a debtor cannot or will not pay the debt, the court might attach a judgment to a piece of property. These judgments are reported to the credit bureaus, have a negative impact on your credit score, cost you the original debt (plus interest and court fees), are part of your public record, and can lead to liens and property loss. more...
August 18, 2010
Actions taken by debt collection agencies are limited by law in Oklahoma
Seniors, beware. If you're being harassed by calls from debt collectors, don't be bullied into paying anything before knowing the law. In Oklahoma, the statute of limitations on most debt is three years and if you pay even as little as $5 on an old debt, you'll reset the clock.
As reported in a story Sunday, more and more seniors today are being guilted by debt collectors to tap their fixed assets to pay credit card, store, hospital and other accounts. Frequently, collectors are junk debt buyers who've paid pennies on the dollar for debt that long may have been written off. more...
August 17, 2010
Personal Finance For Beginners: A Lesson From Oseola McCarty
So many people are intimidated by the concept of managing their money. It almost seems as if the very idea that we can be in control of our money is just a made up fairytale that only a few get lucky enough to take advantage of. Many believe that wealth is out of their reach and only something the top money earners get to experience. The myth is that you have to earn a lot to build wealth. more...
August 16, 2010
Learn how debt resolution can change your life
If you have ever wondered how debt resolution works read on…
First I would like to say thank you for reading what I have to say on what may be a very important decision for you or your family. I have been working in the credit card debt relief industry for over a decade now and have quite a large knowledge base as to how the industry works. If you are serious about finding a solution to what could be a very bad and detrimental debt problem then you may find the information in this article to be very helpful. Debt resolution may not be as difficult as you think.
How debt resolution works more...
August 13, 2010
Collection law firm sued for attempting to collect debt
SHERMAN-A professional collection law firm is being sued after placing telephone calls to a Texas resident without disclosing they were attempting to collect a debt.
Dawn Johnson filed suit against Monarch Law Offices on July 19 in the Southern District of Texas, Laredo Division. The case was transferred to the Eastern District of Texas, Sherman Division on Aug. 4. more...
August 12, 2010
Judge orders Wells Fargo to reverse $203 million in overdraft fees
A federal judge has ordered Wells Fargo Bank to reimburse more than one million of its California customers $203 million in wrongfully assessed overdraft fees - the culmination of a class-action lawsuit initiated by Inland Empire residents.
U.S. District Judge William Alsup of the U.S. District Court's Northern District of California in San Francisco handed down his ruling late Tuesday. He said "profiteering" and "gouging" were the true motivations behind the banking giant's practice of processing checks, debit card transactions and bill payments from the highest dollar amount to the lowest, rather than in the order the transactions took place. more...
August 11, 2010
Credit Card Debt – Can A Collection Agency Sue For A Credit Card Debt?
The short answer to the question is yes. Anyone can sue for anything if they fill out the paperwork and pay the filing fee. However, most collection companies are dealing with thousands of debtors and litigation can be costly and time consuming. Collection companies are in business to make money and so they must weigh several factors before deciding on a legal remedy. more...
August 10, 2010
What Will Happen If I Ignore My Credit Card Debt
In many people’s mind, becoming debt free seems to be an impossible mission especially during economy crisis. When they have accumulated a huge sum of credit card debt, they choose to ignore it because they have no confidence to repay their debt in full.
If you intend to do the same, I want to “warn” you to change your mind. Although failure to pay off your debt can’t land you in jail, there are many possible consequences you have to face. more...
August 9, 2010
Lawsuit against Capital One Goes In Favour Of Consumer
A lawsuit accusing Capital One Financial Corp of increasing the rate over double the actual one has been reinstated by the U.S. federal appeals court after it buried the details about raising the rate in fine print.
The 9th U.S. Circuit Court of Appeals said that Capital One did not show clear and transparent disclosures regarding the cardholder’s annual percentage. It was a 2-1 ruling made in San Francisco when Capital One raised the interest percentage to a whopping 15.9 percent from a ‘fixed’ 6.99 percent more...
August 6, 2010
Dodeka, LLC and a credit card debt...
My husband has been sued by Dodeka, llc and they won, the judge didnt even take the time for the case basically. Now they have sent the information to another collection agency in the state we live in(Tx) to collect. In the documents, I am reading the words: "abstract all real property", "Writ of Execution". The Burroughs Law Firm says we are being served with a subpoena by "Notice of Intention to take Oral Deposition with Subpoena Duces Tecum" (english please) and a "Request for Admissions". Then at the bottom of this letter it states the usual collection spill about we have 30 days to dispute in writing the validity of the debt, blah, blah, blah and we can use the alternative method to settle the matter w/o further action taken. more...
August 5, 2010
Capital One ordered to defend credit card lawsuit
Plaintiff alleged disclosures on rate hike inadequate
NEW YORK, July 21 (Reuters) - A divided U.S. federal appeals court on Wednesday reinstated a aawsuit accusing Capital One Financial Corp (COF.N) of more than doubling the rate it charged a credit card holder, after burying its ability to raise the rate in the fine print. more...
August 4, 2010
Credit Card Debt Consolidation ? Be Careful And Know Your Facts
Credit card debt is a burden that weighs heavily on millions of people. Although the situation may feel desperate sometimes, it is important to stay focused on your long-term goals. You must not let raw emotion carry the day; your future is at stake. Many strategies and services are available to help people struggling with credit card debt, and it is important to use logic and reason, rather than emotion, when deciding among them. Choosing a strategy that does not suit your particular situation could lead to a less than optimum outcome. This article discusses some of the details of debt consolidation that many people miss and other options that may be of use. more...
August 3, 2010
Old Debts Never Die--They're Sold to new Debt Collectors
Timothy McCollough freely admits that he stopped making payments on his Chase Manhattan credit card in 1999. He says he did not have the means to pay after he was disabled by a head injury that cost him his job as a school security guard.
But more than a decade later, Mr. McCollough, who is 52 and lives in Laurel, Mont., is still haunted by the unpaid balance, which was originally about $3,000. more...
August 2, 2010
The New Credit-Card Tricks
Just months after historic legislation banned certain billing practices, card issuers have dreamed up new ones designed to trip up consumers
Whomever President Barack Obama taps to head the new Bureau of Consumer Financial Protection could find it difficult to keep ahead of the credit-card industry. more...
July 28, 2010
Ghosts of old loans haunt debt buyers' targets
MINNEAPOLIS - The page was mostly blank. It contained only a name, three words and a series of tiny numbers. But in Minnesota's creditor-friendly court system, the page became the sole legal evidence that Darren Sabinske had defaulted on a Citibank credit card nearly eight years ago. more...
July 27, 2010
Increase in Credit Card Lawsuits
In the contemporary credit crisis, banks are finding a higher number of their clients unable to pay. Recently, more and more credit issuers are selling delinquent accounts to third-party debt purchasers. As a result of such sales, the number of credit-card lawsuits has grown considerably. more...
July 26, 2010
Avoid Being Sued with Credit Card Debt Consolidation Loans for Credit Card Debts
There are only three ways you can pay off your debt and avoid being sued. One – cut back your expense and attempt to pay as much as possible. Two – negotiate with the creditors to give you some relief. Three – declare bankruptcy. What you really need is expert professional advice right away to take corrective steps to get back in control of your finances. A number of debt consolidation companies help people by offering free consumer credit debt consolidation services. Legitimate companies like LoansStore also have quick and easy access through the web – fill up a short form online and you are on the way to resolving your financial situation. more...
July 23, 2010
Understanding the Consequences of Credit Card Default
I am sure you never planned to find yourself in a situation where you were in credit card default. But, the debt crept up on you and now you are months behind on your account. Collectors are calling day and night and you are receiving nasty letters in the mail with threats of a lawsuit. What happens next? more...
July 22, 2010
Lawsuits and Debt Collection: Too Many People Sued Over Debt!
Whether you’ve got credit card debt, medical bills, student loans, or other debt, you’re vulnerable. You’re vulnerable if you default on these debts. If a credit card company, for example, doesn’t get it’s money, they can sue. Recently, state courts have seen a very dramatic increase in debt collection lawsuits. Courts have been ‘jammed to the hilt’ with filings from debt collector law firms. The Federal Trade Commission has been involved and reports that it has proposed to states that they require more detailed information regarding the debt in the filing. Specifically, principal, interest, and fees are to be detailed in submissions. Because of high caseloads, many law firms use software to prepare filings. Because of that, errors are frequent and have compounded the problem. The FTC has also suggested that states develop a method to increase the chances of the consumer showing up in court. Many consumers now do not appear in court and a resulting default judgment is granted to the creditor. more...
July 21, 2010
Credit Card Debt Settlement – Will They Sue Me If I Attempt to Settle My Debts?
One of the greatest fears people have when they are considering credit card debt settlement is being sued by a creditor. The question is often asked, “What are the possibilities of them suing me while I’m trying to work out a credit card debt settlement?” To get to know the response you must first realize the process of credit card debt collection litigation. more...
July 20, 2010
Credit Card Debt Statute of Limitations ? Which Law Applies?
You are being threatened with a lawsuit on an old credit card debt. How do you determine if the claim against you is barred by the credit card debt statute of limitations? Does federal or state law apply? If state law, which state’s law will apply? Is it the state you live in or some other state’s law?
There is no federal statute of limitations for credit card debt. Thus, you need to look to state law for an answer. But wait a minute. You might not want to look at the law for the state you live in. more...
July 19, 2010
Credit Card Lawsuit – Pin the Tail on the Debt Collector in Court
When dealing with a credit card collection lawsuit you should remember it is not a question of do you have the credit but a question of can they prove that you have a debt? When any person files a lawsuit it is up to them to provide absolute proof of if the lawsuit alleges and with card debt it is virtually impossible to prove. more...
July 16, 2010
Credit Card Debt Relief Options That Work
If you would like to manage or resolve your credit card debt, there are many options available that you can look at in order to achieve this. The option that you eventually go for will depend mainly on your particular debt situation. Before settling on a technique for managing your credit card debt, it is important that you look at all the alternatives on the table so you can see which one (or a combination of two or more) is best suited for you. Below are some of the major options that you can consider. more...
July 15, 2010
Good News for Consumers with Defaulted Credit Card Debt
About a year ago, I wrote that things might really start to change in the process of how credit card companies go after consumers who have defaulted on their accounts.
Let’s first review how credit card companies go about the debt collection process. There are 2 different ways for a credit card company to collect defaulted debt. First, they can go about it the traditional way of being persistent and going through the debt collection process. If the consumer still doesn’t pay, they either give up and assign it to a third party debt collector, or write if off and sell it to a third party debt collector. Their second avenue of collecting defaulted debt is through legal means for the purpose of seeking a judgment against the consumer. Once they have the judgment, the debt collector or original creditor has other avenues of collection available to them. more...
July 14, 2010
Debt Solutions Can You Be Sued For Credit Card Debt ?
When you fall behind on payments, the credit card company may or may not sue you depending upon the amount you owe. Credit card companies usually file a lawsuit when you are at least 4 to 6 months past due. To avoid being sued, contact your creditors and negotiate a payment plan you can afford. If your creditors refuse to negotiate with you contact a debt solutions company. They will be able to setup a payment plan with your creditors. A leader in the debt solutions industry is www.debtsolutionsusa.com . more...
July 13, 2010
More debts, a flood of lawsuits
FTC calls for reforms in using courts to collect
As millions of Americans have fallen behind on paying their bills, debt collection law firms have been clogging courtrooms with lawsuits.
Few have been as prolific as Cohen & Slamowitz, a Woodbury, N.Y., firm that has specialized in debt collection for nearly two decades. more...
July 12, 2010
Get Clear Of Your Credit Card Problem Once And For All
Getting all the way through each month having a credit debt problem may seem to be impossibility. Does it seem as though you happen to be having to pay and having to pay on your debts yet zero seems to happen to them? In fact does it appear they really are growing instead of going down? You could possibly be surprised to discover that numerous people are in the identical boat. And many have found a way out by means of debt settlement. Debt resolution means that you can only pay some of the overall debt and consider the debt paid. It’s a proven arrangement, nevertheless it does take some regulation and development. more...
July 9, 2010
How to Fight a Credit Card Lawsuit
Upon receiving a summons or notice that a credit card company has filed a lawsuit against you, review the documents carefully and file your paperwork by the date identified in your state's statutes. If the response date is not listed in the summons and petition, contact the clerk of the court or a private attorney to learn how long you have to answer the creditor's complaint. If you are responsible for the debts listed in the lawsuit but cannot pay them, consider talking to a bankruptcy attorney to assist you in negotiating a settlement. more...
July 8, 2010
How can I defend myself from a Credit Card Lawsuit?
Whether or not you are believe the news media about a declining US economy, one thing is for sure, debt collectors are actively filing suits to collect debts. One large collection firm based out of Atlanta has indicated that they file an average of 279 collection lawsuits per day. A lawsuit is often the final effort in the creditor’s attempt to collect a debt. If the harassing and often illegal collection calls were not enough, once a person is sued the reality of the situation is realized. However, for the defendant, not all hope is lost. By the time the credit card company or other creditor files the lawsuit, it may actually be too late to legally collect the debt, if it is properly defended. Often times with the assistance of an attorney a lawsuit to collect a debt can be defended, negotiated, or won out right for the defendant. Before you start feeling sorry for the credit card company, remember, they are the same corporation that offered an interest rate of 6.9% and when you were one day late on a payment raised the interest rate to 24.9%. more...
July 7, 2010
The Worst Credit Card Lawsuit Defenses Ever
I have encountered many people who have tried to defend credit card cases themselves in the past few months and am very surprised at some of the defenses that they think will work. The following are a few of the worst defenses that I have seen, and an explanation as to why they are bad defenses.
I've never had an account with you.
This means absolutely nothing in a court of law. The right to sue someone is a legal interest. A legal interest can be sold, at any time, more...
July 6, 2010
Debt Settlement: Credit Card Lawsuits
Credit card debt settlement laws dictate what actions the credit card companies or third party debt collectors can use to attempt to collect the outstanding balance. States have different laws with regards to credit card debt collection including the statute of limitations for collection as well as debt negotiation or debt settlement programs. more...
July 5, 2010
Instant Credit Card Debt Relief Without Bankruptcy Protection Or Other Obsolete Settlement Methods
More citizens are thinking about bankruptcy as a form of credit card debt relief at this very moment than any time before in the history of the world all combined! There are bankruptcy alternatives and card debt is just a fly speck on the window of your financial life. There is however some extremely excruciating pain involved in mastering this debt relief method. You must think! more...
July 2, 2010
How wage garnishment works -- and how to avoid it
Ignoring credit card debt can lead to garnished wages
Ignoring outstanding credit card debt can take a bite out of your paycheck. Wage garnishment -- a last ditch effort at debt collection -- hits debtors where it hurts: their ability to pay the bills, fill the gas tank and feed their families. more...
July 1, 2010
Woman sues debt collector for using profanity
A Silsbee resident is suing a debt collector for violations of the Fair Debt Collection Practices Act.
Cheryl Moss filed suit against Portfolio Recovery Associates on June 21 in the Eastern District of Texas, Beaumont Division. more...
June 29, 2010
Financial reform bill agreement touted as a big win for consumers
A financial reform bill agreement by congressional negotiators was announced Friday. The House and Senate will vote on it next week. If it passes, the financial reform bill changes most of the rules that form the relationship between financial institutions and consumers. Some call the financial reform bill a big win for consumers. Others call the bill a big shaft for consumers.
A new consumer protection agency more...
June 28, 2010
Peddling Relief, Firms Put Debtors in Deeper Hole
Palm Beach, Florida - For the companies that promise relief to Americans confronting swelling credit card balances, these are days of lucrative opportunity.
So lucrative, that an industry trade association, the United States Organizations for Bankruptcy Alternatives, recently convened here, in the oceanfront confines of the Four Seasons Resort, to forge deals and plot strategy. more...
June 25, 2010
SCOTUS to Hear Credit Card Rate Increase Case
The United States Supreme Court has agreed to review a class-action lawsuit brought against Chase Bank for changing credit-card interest rates without informing account holders who were late on payments by written notice. Chase appealed the case, Chase Bank USA v. McCoy, to the U.S. Supreme Court after a California federal court allowed the 2006 class-action lawsuit to proceed. The named plaintiff, James McCoy, accused Chase of violating the Truth in Lending Act when it raised his interest rates even after his account was closed due to being late on payments. more...
June 24, 2010
Debt-relief programs often put debtors in deeper hole
A year ago, in an article titled Settle A Debt for Less than You Owe?, we looked at so-called debt settlement companies, noting that (to put it charitably) they tend to over-promise and under-deliver.
[R]eaching a debt settlement isn't quite as easy as [these companies'] ads imply. A settlement works only if you qualify and only if everything goes just right.... more...
June 23, 2010
Credit card holders’ rights
Monday's orders explained
The Supreme Court, taking on a case affecting the rights of credit card customers, agreed on Monday to settle banks’ duty to give advance notice before raising the interest rate they will charge when a card user defaults on a payment. The Court granted review despite the advice of the federal government that the case should be returned to lower courts to consider the Federal Reserve’s views. The government suggested the case had little continuing importance, but bank card-issuers disagreed. The case will be heard and decided in the Term starting Oct. 4. more...
June 21, 2010
New credit card rules to take into account
Heads are still spinning over credit card bills and charges. Earlier this year, the enactment of consumer protections mandated that cardholders receive more detailed monthly statements. Yet there's lingering confusion about what credit card companies can and can't do.
Here are some questions readers have encountered in recent weeks: more...
June 19,2010
Debt Settlement and Consumer Credit Counseling – What’s the Difference?
Those buried under the heavy pile of debt often get confused choosing between debt settlement and consumer credit counseling. Some feel that choosing debt settlement is a great option as it can drastically reduce your debt amount. On the other hand, there are people who are of the opinion that credit counseling is a wise choice, as it gives you the opportunity to pay back your creditors at a reduced interest rate. The question, however, remains which is the ideal option? Well, as clichéd as it may sound, the medicine can be decided only after diagnosing the patient. Yes! It completely depends on your situation and goals. more...
June 17, 2010
What to Do If You Are Sued
Finding yourself at the wrong end of a lawsuit can be stressful. Whether you are sued for a relatively small amount in small claims court or a larger amount in circuit court, the experience is never pleasant.
If you are sued in small claims court, you will find that the system is designed for people who are not necessarily familiar with the court system or its procedures. more...
June 16, 2010
Credit card customers get relief
Fed adopts rules to limit penalty fees
WASHINGTON — The Federal Reserve adopted new rules Tuesday aimed at protecting credit card customers from getting socked by lofty late payment charges and other penalty fees.
The rules respond to public and congressional outrage over practices by credit card companies. more...
June 15, 2010
Will I be sued for Old credit card debt?
Most likely you will not be sued for old credit card debt, the process is long and costly and most creditors would like to find another solution before initiating a lawsuit to the debt. Some of these solutions are payment plans, debt restructuring and debt repayment. The threat of action could occur if our credit card payments that do not get more offenders could lead to our accounts in a series of events, legal action. In most cases, when this measure by the work-up or enter into an agreement with our creditors to pay off our loans are avoided. more...
June 14, 2010
Available Debt Relief Programs
There are many programs available to erase outstanding debt balance in current scenario. Earlier people have only few options to choose, bankruptcy or going for traditional pay back plans. These programs are not just amendments to traditional plans, they offer much more than traditional plans do. It is said: "When a man has crossroads, only one path lead to prosperity and other to utter despair. Only perception would not lead to success, a wise men can accommodate himself to all contingencies of life by his knowledge and skills". So, it very important to understand the available debt relief programs which are explained below. more...
June 11, 2010
In jail for being in debt
You committed no crime, but an officer is knocking on your door. More Minnesotans are surprised to find themselves being locked up over debts.
As a sheriff's deputy dumped the contents of Joy Uhlmeyer's purse into a sealed bag, she begged to know why she had just been arrested while driving home to Richfield after an Easter visit with her elderly mother. more...
June 10, 2010
How Should I Handle Collectors and Credit Card Companies?
My wife and I have been diligently working with our creditors to get our payments adjusted to a more affordable level to pay off our debt. We have reduced our debt by $15,000 so far this year! Thanks to banks like Chase that have balance liquidation programs we were able to do this,
but we had to deal with some pain the butt collectors to get to that point.
We still have a couple of business credit cards that we are still working on and one has actually gone to collections. We just received this ridiculous offer from the collection agency. more...
June 9, 2010
Legal Protection & Credit Card Debt Statutes of Limitations
If a creditor successfully sues a debtor, the court awards the creditor a court judgment--making it a judgment creditor. In many states, judgment creditors have the right to collect a debt via bank levies, wage garnishments and property liens. The credit card debt statute of limitations can protect an individual with outstanding credit card debt from a lawsuit and its consequences. more...
June 8, 2010
How to Beat a Credit Card Lawsuit
You may have such a huge amount of debt that you find you are unable to pay it all off. Should you stop paying a creditor completely, you may find yourself at risk of being sued, even if the debt is listed as a charge-off on your credit report. Creditors generally bring lawsuits in the hopes of getting a court-ordered judgment against you, to force payment of what is owed through wage garnishment, property seizure and other aggressive means. Although it might seem that the odds are against you, there are some valid solutions you can employ to turn the situation around and beat the lawsuit. more...
June 7, 2010
Being Sued by a Credit Card Company?
Defaults on credit card accounts are at an all time high. Too many consumers obtain too many cards and then cannot keep up with the payments.
If a credit card company files a lawsuit against you after a default, they must prove certain issues in order to prevail in their case. First and foremost, they must prove that they are entitled to commence a lawsuit against you. This can be done by any number of ways. more...
June 4, 2010
Court gives preliminary OK to $4M consumer settlement in Heartland case
A federal court in Texas has given preliminary approval to a $4 million settlement of a consumer class-action lawsuit against Heartland Payment Systems Inc. over the massive data breach the payment processor disclosed in January 2009.
Under the proposed settlement, Heartland will pay up to $175 to individuals for out-of-pocket expenses stemming from telephone usage or postage costs tied to card cancellations and replacement, or for any unreimbursed charges resulting from unauthorized use of their cards. more...
June 3, 2010
Due to Lawsuit, Collections Call Center Must Now Pay $1.5 Million to Man it Attempted to Collect From
A jury has awarded a Texas man more than $1.5 million in a lawsuit over profane voicemail messages allegedly left by a collections agency.
Allen Jones of Lewisville, Texas, was reportedly subjected to harassing phone calls from employees at Advanced Call Center Technologies (ACT) back in 2007. more...
June 2, 2010
Learn How to Avoid a Credit Card Debt Lawsuit From the Creditor
If you have a lot of debt and you have stopped paying your credit card bills then you may get sued by the creditors. There are some things that you can do to avoid this form happening to you.
Find a Debt Expert Now
The first thing you want to do is to negotiate any debt that you have. It is easier to just ignore it and wait for it to go away but the truth is they sell the debt to other collector’s and they can bring a law suit against you at any time to get there money back. more...
June 1, 2010
Vulgar voicemails force debt collector to pay $1.5 million
DALLAS — The harassing and threatening voicemail messages left on Allen Jones' mobile phone are nothing short of vulgar.
"This shouldn't be tolerated," he said. "Nobody should have to experience what I had to experience." more...
May 28, 2010
Consumers say Houston company is hounding them for money they don't owe
HOUSTON—For hundreds of consumers, what came in the daily mail was a mystery.
"I got the envelope and I thought, hmm, this is strange," said Dr. Laurie Weaver.
It was a notice of debt for $275 for supposedly passing a hot check.
And that was quite strange for the University of Houston-Clear Lake professor. more...
May 27, 2010
How can I defend myself from a Credit Card Lawsuit?
Whether or not you are believe the news media about a declining US economy, one thing is for sure, debt collectors are actively filing suits to collect debts. One large collection firm based out of Atlanta has indicated that they file an average of 279 collection lawsuits per day. A lawsuit is often the final effort in the creditor’s attempt to collect a debt. If the harassing and often illegal collection calls were not enough, once a person is sued the reality of the situation is realized. However, for the defendant, not all hope is lost. By the time the credit card company or other creditor files the lawsuit, it may actually be too late to legally collect the debt, if it is properly defended. Often times with the assistance of an attorney a lawsuit to collect a debt can be defended, negotiated, or won out right for the defendant. Before you start feeling sorry for the credit card company, remember, they are the same corporation that offered an interest rate of 6.9% and when you were one day late on a payment raised the interest rate to 24.9%. more...
May 26, 2010
Debt Collection Assistance How to File Your Answer in Court
Debt Collection Lawsuits: Overview
Anyone can sue you and claim you owe them money. Whether or not they have a valid debt or are entitled to recover money from you depends on your reaction to their lawsuit. The person or company initiating the lawsuit is called the plaintiff. A plaintiff can be a credit card company, a hospital, a bank, a student loan company, a car loan company, or any other person or company that says you did not pay money you owed. The person or company that you owe money to is called a “creditor”. more...
May 25, 2010
Bank sues men to recover loan payments
A bank claims a Liberty County man and an Osceola County man have failed to make payments on their loans.
Community Bank of Texas filed a lawsuit May 12 in Jefferson County District Court against Matthew A. Casey. It filed a second lawsuit May 12 against William D. Anderson. more...
May 24, 2010
Bank Forecloses on Home After it's Paid Off
HOUSTON - So just how weird has the past 7 months been for Courtney Miles?
"I haven't seen this picture in a long time," Miles mutters to himself.
Most people rediscover old pictures and family heirlooms searching closets or an attic. Not Courtney.
"Oh man wow this is a picture of my sister when she was young," Courtney said. more...
May 21, 2010
Reduce Debt by 70% and Other False Debt Settlement Claims
The advertisements for debt settlement companies are all over the radio and television. “Information the Credit Card companies don’t want you to know” and “You are entitled to lower your credit card debt by 70%”. “We can lower your payments substantially and cut your debt in half”. “Be debt free in less than a year”.
If you have ever heard the saying that its too good to be true, then it likely is. These ads fit that description to a T. You are not “entitled ” to lower your credit card debt under any law that I am aware of. “We can cut your debt in half”, well, only in very extreme and lucky circumstances. Cutting the debt to 70% is a more reasonable goal (unless you are dealing with a debt buyer and not the original creditor. You can get a better reduction, but you should not pay anything to them). “Be debt free in less than a year”? Only if you file bankruptcy or hit the lottery. more...
May 20, 2010
You Have Been Served With A Credit Card Lawsuit… Now What?
First thing to do if you have been served with a credit card lawsuit is to take a good look at the papers you have been served with. There should be a Summons and a Complaint. The Summons basically puts you on notice that you are being sued, who is suing you, what court you are being sued in and the time, usually 20 days from date of service, that you have to respond to the lawsuit.
It is important to understand from the start that if you IGNORE the Summons and Complaint and do not respond within 20 days a default judgment will be entered against you. Basically a Default Judgment is a win by default for the creditor suing you. Simply put, it means because you IGNORED the lawsuit you have lost! Don't let you creditor win without proving their case! Many times there are is a legal basis to fight a credit card lawsuit and actually either win or negotiate a settlement that is to your advantage. You cannot do either if you do not respond to the lawsuit. more...
May 19, 2010
What to Do If a Bill Collector Crosses the Line
Here's what to do if a bill collector uses abusive tactics.
In order to deal with debt collectors, it pays to learn what they can and cannot do. Although most bill collectors are careful to follow the law when contacting you, some are not. If a bill collector goes too far, you can take action.
The Fair Debt Collection Practices Act more...
May 18, 2010
What Happens When You Are Sued Over Old Credit Card Debt?
Have you received a summons for breach of contract on an old credit card debt? Or, do you have collectors calling you daily and threatening to bring legal action? For many “junk debt collectors” bringing about lawsuits over old credit card debt (that has likely been charged off, leading you to believe that you are “untouchable”) has become big business. more...
May 17, 2010
Credit Card Collection Cases in Texas
Credit Card collection lawsuits are rapidly increasing in Texas. The volume of phone calls and emails that I receive on this topic is astounding. What I have discovered is that many people do not know their rights or how to handle these situations. I can say with certainty that contacting a Consumer Attorney is a very good move. more...
May 14, 2010
Debt Collectors Can Face Lawsuits for Mistakes, Court Says
The Supreme Court Wednesday made it easier for consumers to sue debt collectors for sending erroneous collection notices.
The high court, in a 7-2 opinion by Justice Sonia Sotomayor, ruled that debt collectors can't shield themselves from such lawsuits by arguing that they made a legal error when sending a collection notice. more...
May 13, 2010
Pass on Data Pass: Murky Credit Card Tactic Banned
Watch out for the data pass.
Online credit card rules have changed. If your company operates online, now would be a good time to check to make sure that you comply with the new rules. Visa now requires that all web merchants ask consumers to enter all 16 digits of their credit card number before allowing a purchase. Over the past several years, more than 30 million American consumers have been stuck with unauthorized charges estimated at $1.4 billion for fake travel clubs and other services after shopping at several web sites such as 1-800-Flowers.com, Buy.com, Classmates.com and hundreds of other sites. more...
May 12, 2010
Helpful Tactics While In A Credit Card Debt Lawsuit
Credit card companies often file a credit card debt lawsuit to borrowers who fail to pay their outstanding debt. If you are a debtor who is currently involved in a credit card debt lawsuit, there are ways to protect yourself before and during the trial, and also ways to negotiate your way out of the lawsuit altogether.
Verify and Review Debt more...
May 11, 2010
Credit Card Lawsuit - I Don't Want to Go to Court
Many people have a fear of going to court. The judge, the jury, it can be a scary place for someone who doesn't do it every day. Truth be told, however, is that most credit card cases do not require the individual to actually go to court.
The truth of the matter is that many of the credit accounts that go delinquent do not result in immediate lawsuits. What happens in many cases is that the original creditor, whether it is a department store or a financial institution, sells the delinquent account to a collection agency or junk debt buyer. Buying and selling debt is a very large business. The original creditor does this to wash its hands of the bad debt, more...
May 10, 2010
Unpaid credit-card bills giving rise to lawsuits
In a new trend for settling defaulted credit-card debt, debt buyers are filing hundreds of lawsuits each week at the Tarrant County courthouse.
Starting Saturday, some of that caseload could shift to the eight justice of the peace courts in the county. The state Legislature passed a law this year raising the civil jurisdiction limit of justice of the peace courts to $10,000 from $5,000. more...
May 7, 2010
Citibank files suit against PA man over credit card
A bank claims a Port Arthur man ceased making required monthly payments on his credit card bill.
Citibank filed a lawsuit April 21 in Jefferson County District Court against Ahmed A. Fayyaz. more...
May 6, 2010
Credit Card Abuse Still Exists, Despite the Credit CARD Act
Although it has been two months since the Credit CARD (Card Accountability, Responsibility and Disclosure) Act went into effect, there are still cases of credit card abuse that consumers must deal with. The Credit CARD Act was meant to limit instances of abusive practices by credit card companies, but some loopholes exist that allow companies to get away with treating customers poorly.
Credit Card Abuse Still Exists, Despite the Credit CARD Act more...
May 5, 2010
Increase in Credit Card Lawsuits
In the current credit crisis, banks find more and more of their customers unable to pay. Recently, more and more banks and credit issuers are selling delinquent accounts to third-party debt purchasers. As a result of these sales, the number of credit-card lawsuits has increased substantially.
To give you an idea of how much debt credit issuers are selling these days: In 1991, $2 billion of consumer debt was sold to third-party purchasers; in 2006, it was $110 billion. These parties purchase the debt for less than it is worth because the credit company wants to get some of the money back. Then, the purchaser attempts to collect what it can, using the resources it has. Usually, a lawsuit is the last effort used to collect a debt. more...
May 4, 2010
Toyota Credit sues couple over past due car payments
Toyota's credit lender claims local residents have fallen five months behind on their car payments.
Toyota Motor Credit Corp. filed a lawsuit April 21 in Jefferson County District Court against Brian and Jessica Williams. more...
May 3, 2010
Debtorboards teaches consumers how to protect against debt collector harassment
Debtorboard.com is a website that is teaching consumers how to protect themselves against the harassment that comes along with the endless phone calls from debt collectors.
High credit card debt due to an ailing economy is making it necessary for those who are being harassed by creditors to learn more about what they can do to make sure their rights are not violated by unscrupulous bill collectors. more...
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