Archive for: ‘July 2014’

Credit Repair Company GUILTY of Deceiving Consumers and Lying to Credit Bureaus

July 8, 2014 Posted by kingcade

RMCN Credit Services, Inc., one of the nation’s largest credit repair companies, has been ordered to pay $2.35 million in civil penalties after it violated federal law by deceiving consumers and lying to credit bureaus. The company reportedly would charge consumers up-front fees- as much as $2,000 before rendering services. The court order bars the defendants, Doug and Julie Parker, the owners of the company, from similar conduct in the future. The company is also required to submit reports to the Federal Trade Commission (FTC) for a decade to ensure that it is incompliance with the terms of the order.

According to the FTC, the company “continued to send deceptive dispute letters to credit bureaus even after the company received detailed billing histories or signed contracts from creditors proving the credit reports were accurate. RMCN also falsely told consumers that federal law allowed it to dispute accurate credit report information and credit bureaus must either prove it or remove it.”

If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:
http://bizbeatblog.dallasnews.com/2014/06/credit-repair-company-settles-with-feds.html/

Mortgage Default Rates Hit Lowest Level since May 2006

July 3, 2014 Posted by kingcade

Mortgage default rates hit their lowest level last month compared to bank cards and auto loans. These are some of the lowest levels seen since May 2006. Mortgage default rates continue their downward trend from 1.30% in October 2013 to .92% in May 2014.

In addition, consumer credit default rates decreased for the seventh consecutive month. According to the S&P/Experian Consumer Credit Default Indices, consumer credit decreased to the lowest default rate since May 2006, falling from 1.01 from 1.11 in April and 1.42 in May 2013.

Miami maintains the highest default rate of 1.74% while Dallas maintains the lowest rate of 0.77%. Chicago, Dallas, Los Angeles, Miami and New York remain below default rates seen a year ago.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:
http://www.creditandcollectionnews.com/viewer.php?url=http%3A%2F%2Fwww.housingwire.com%2Farticles%2F30340-mortgage-default-rates-continue-to-trend-down

$8.25 Million Bonus Not Enough for Ex-Goldman Trader

July 2, 2014 Posted by kingcade

Deeb Salem, an ex-Goldman Sachs mortgage trader is asking for more from the company he claims did him wrong. According to a transcript from the arbitration hearing, Salem told his mother three years ago that he expected $13 million for his “heroic efforts” to bring in $7 billion for the bank that year. The bonus he thought was owed to him was slightly down from the $15 million he received in 2009 and more than the $9 million bonus Goldman chief, Lloyd Blankfein took home that same year.

Salem claimed a Goldman credit trading executive said he was a “steal” at $15 million at a cocktail party. The reason for the reduced bonus was Salem’s “extremely poor judgment” in detailing his skillful manipulation of the market leading up to the housing crisis in a 2007 employee self-evaluation. In the evaluation, he described Goldman’s plan to “short squeeze” the mortgage market- what the Senate panel later viewed as “intentional market manipulation.”

Salem now wants Goldman to pay him $16 million. He is appealing to the New York State Supreme Court after being turned down by an industry arbitrator. The case is scheduled for September.

Click here to read more on this story.
http://www.washingtonpost.com/news/morning-mix/wp/2014/06/20/ex-goldman-trader-furious-over-paltry-8-25-million-bonus/?tid=hp_mm

If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Debt Collectors Using Social Media to Track down Consumers

July 1, 2014 Posted by kingcade

After dodging collection calls for more than 10 years, a Brighton Heights man said his experience with a third-party collection agency went from annoying to cyber stalking. He said his student loan debt ballooned from around $80,000 to $270,000 following years without payment. In 2012, he hired an attorney and an accountant to help him set up a payment plan. He believed the worst was behind him.

This was until a picture taken at Regent Square restaurant Square Café with PBS personality Rick Sebak was posted on Facebook and shared with more than 5,000 people. Within days, a person who was looking for him contacted the Square Café and left a number that traced back to the collection agency, Windham Professionals, Inc.

The laws outlined in the Fair Debt Collections Practices Act of 1977 apply to collection attempts made through digital media (i.e. – text messaging and social media). Full and honest disclosure of identity and the intent to collect a debt is mandatory for collection agencies.

The act prohibits the following:
• Contacting third parties without prior consent from the debtor or a court unless they are seeking location information for the debtor;
• It bans disclosing debt obligations to third parties;
• Contacting debtors BEFORE 8 a.m. and after 9 p.m.;
• Directly contacting consumers who have attorneys handling the debt (i.e. – bankruptcy attorney);
• Making false or misleading statements;
• Using obscene or profane language;
• Using threats of violence to collect.

Debt collectors who violate these provisions can face fines of up to $1,000 per violation- money that goes directly to the debtor.
If the debt collector in fact researched Square Café by becoming friends with the Brighton Heights man on Facebook under false pretenses or by connecting with the debtor’s friends under false pretenses and without prior consent, the company is in violation of the Fair Debt Collections Practices Act.

Recently, the Consumer Financial Protection Bureau clarified debt collection rules, including proposed guidance to financial institutions warning that the debt collection act also applies to digital forms of communication, including text messaging and social media.

It is important that consumers check their credit reports at AnnualCreditReport.com to ensure the debt being reported is what is being collected and to know their rights.

A 2014 report says last year the commission received 204,464 debt collection complaints, up from 202,616 in 2012. Thirty-eight percent involved collectors misrepresenting the type of debt, amount or status; 19.7 percent were failure to identify as a debt collector and 16.6 percent involved repeated calls to third parties.

If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com.

Related Resources:
http://www.post-gazette.com/business/technology/2014/06/20/Debt-collectors-turn-to-social-media-to-track-down-delinquents/stories/201406170010