Posts Tagged: ‘Bankruptcy’

Wells Fargo Review Finds 1.4 Million More Fraudulent Accounts

September 11, 2017 Posted by kingcade

Last September Wells Fargo agreed to pay $185 million to settle three government lawsuits over the bank’s creation of fake accounts. Thousands of employees, trying to meet aggressive sales goals, created accounts in customers’ names without their knowledge. Workers who did not meet goals risked losing their jobs, while those who did meet their sales goals received bonuses.

At the time, Wells Fargo said that 2.1 million suspect accounts had been opened from 2011 to 2015, but it also acknowledged that the problems may have started earlier. The bank said it would expand the review to include accounts open from 2009 to 2011.

Last month the bank reported finding 1.4 million more accounts, bringing the number to approximately 3.5 million fraudulent accounts – nearly 70 percent more than the bank’s initial estimate. The bank has since released that 528,000 customers have been enrolled in the bank’s online bill payment service without authorization. The bank stated it will issue $910,000 to customers who incurred fees or charges, as a result.

“We are working hard to ensure this never happens again and to build a better bank for the future,” Timothy J. Sloan, Wells Fargo’s chief executive, said in a statement announcing the review’s results.

Senator Elizabeth Warren, Democrat of Massachusetts, released a statement saying, “Unbelievable. Wells Fargo’s massive fraud is even worse than we thought.”

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If you have any questions on this topic or 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.

Student Loans Vs. Other Debt: Find your Most Powerful Debt Payoff Strategy

September 1, 2017 Posted by kingcade

Many Americans struggle when trying to prioritize which debts to pay off first. Here is a helpful guide for deciding when to prioritize paying off student loans before other debts.

4 Reasons You Should Pay Down Your Student Loan Debt First

  1. You have high student loan rates. If your student loans have the highest interest rate of all your debt, that is where you should begin. You may also want to explore refinancing your student loans if you qualify for a lower rate.
  2. Your student loans have a small balance. Paying off your student loan with a small balance first is called the debt snowball method. This method allows you to see results and to stay motivated to keep up with your payoff plan.
  3. You have private student loans. Private student loans are considered “riskier” forms of debt than federal loans, which is why you should pay them off sooner rather than later. The reason they are riskier is because they do not offer the same repayment protections and options as federal loans, such as income-based repayment plans.
  4. You are close to defaulting on your student loans or declaring bankruptcy. Defaulting on a federal loan can lead to wage garnishment much more quickly than if you are not making credit card payments. Therefore, if you are struggling with student loan debt, make it a priority to make those payments first.

 

5 Reasons You Should Pay Down Other Debts First

  1. You are following the debt snowball method. The debt snowball method may lead to you paying off student loans first, however; it may also lead you to target other debts with higher interest rates or lower balances first.
  2. You value federal loan protections. Federal student loans offer repayment options and other protections that other types of debts do not offer.
  3. You hope to qualify for the Public Service Loan Forgiveness program (PSLF). The PSLF is slated to forgive federal student debt for more than 550,000 Americans, according to the Washington Post. Any balance remaining after 10 years will be forgiven to eligible borrowers. The more you pay on this debt, the less you will be left for the government to forgive.
  4. You want to improve your credit. Decreasing your debt is a good way to improve your credit score. However, certain types of debt will increase your score faster than others. Higher balances on revolving debt will give you a higher utilization ratio – which can damage your credit. If you have your credit cards maxed out, you should target this debt first.
  5. You want to claim interest tax deductions. When considering which debt to prioritize, it can help to consider the potential tax benefits you can claim. Most consumer debt cannot be claimed as a tax write-off, but student loan debt and home mortgages are exceptions.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.

How to Handle Debt Collectors When They Call

September 1, 2017 Posted by kingcade

Receiving a call from a debt collector can be stressful, especially if you are tight on money. However, sometimes collection agencies have the wrong contact information or may be trying to collect on a fake debt. Collection agencies may also use aggressive tactics to scare you into paying a debt. Here are some tips from the Better Business Bureau to help you respond to debt collectors correctly.

Your rights under the Fair Debt Collection Practices Act:

  • Debt collectors are required by law to provide information in writing. If you are contacted by a debt collector, ask to be provided with an official “validation notice” of the debt.
  • You must respond in writing within thirty days of receiving the debt notice to avoid further action by the collector. If you have proof that the debt has been paid, provide that as well.
  • A debt collector must prove that you owe the money before they can try to collect if you dispute the debt in writing within 30 days.
  • They cannot harass, oppress or abuse you. They are prohibited from swearing at you or calling repeatedly.
  • They cannot contact you at work if you tell them not to do so.
  • They cannot continue to call if you request, in writing, that they only communicate with you by mail.
  • They cannot collect a debt that you do not owe.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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.

6 Things Debt Collectors May Not Want You To Know

August 25, 2017 Posted by kingcade

If you have been contacted by a debt collector in the last year, you are not alone. Nearly a third of all U.S. consumers have reported being contacted by a creditor or debt collector about a debt. As a consumer, your rights are protected by the Fair Debt Collection Practices Act (FDCPA). Here are some key facts to know if a debt collector contacts you.

  1. You do not have to reveal personal information. Debt collectors might ask you for your Social Security number, date of birth or other information. However, you are not legally required to provide this information. Collectors should use the information they already have available to them.
  2. You have a right to ask for details – and you can ask a debt collector not to contact you. You should always ask that they verify the accuracy of the debt. This means the collector must provide details of the debt when they speak to you, or in writing, within five days of the call. This allows you to confirm that you actually owe the amount. If the information is inaccurate, you have 30 days to dispute the debt.
  3. You can ask to have a settled debt removed from your credit reports. If you pay off an account in collections in full, it will not erase it from your credit reports right away. In fact, it will remain on your reports for seven years. However, if you negotiate with the debt collector to settle the debt, you can ask to have that debt removed from your credit reports.
  4. Debts have a statute of limitations. State laws determine how long a creditor has to collect an amount owed to them. The time period ranges from two to six years. After this time, you still owe the debt, however; creditors can no longer come after you to collect it. This type of debt is sometimes called zombie debt or time-barred debt.
  5. You can file a complaint. If you believe a debt collector is acting unethically or has violated your rights as a consumer, contact authorities. Some states have debt collection laws that differ from the FDCPA.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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.

Student Loan Debt Impact on Older Americans

August 24, 2017 Posted by kingcade

Student loan debt is not just a problem for younger Americans; a new study shows older Americans are shouldering an increasing share of the nation’s $1.34 trillion student loan debt.

A new report released by FICO showed the percentage of Americans ages 65 and older with student loan debt increased 300 percent from 2006 to 2016. This jump is three times higher than the increase in student loan debt seen in Americans ages 35-64. The trend is expected to continue increasing as the population ages and older employees turn to workforce retraining programs to learn new labor skills.

The report also showed that the age group with the highest amount of student loan delinquencies is Americans aged 25-34, with a default rate of 25.1 percent. However, older Americans are also having a more difficult time repaying their debts. Delinquencies for Americans ages 65 and older were 13.5 percent last year, which is an increase of 3.6 percent from the prior decade.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.