Senator Gary Stanislawski introduced a bill to the Oklahoma state legislature, which would make it illegal for debt collection companies to try and collect on debt that has exceeded its statute of limitations, otherwise known as, “zombie debt.” The purpose of the bill is to make it illegal for collection companies to collect this type of debt. The bill would also require collection companies to present proof that they own the debt and can legally collect on it. Another term of the bill would create a requirement that debtor’s information be passed to the entity that purchased it.
The debt collection companies who purchase “zombie debt” from credit companies tend to pay very little for this type of debt. For this reason, even if the collection companies are only able to receive a small payment amount from the debtor, they are still making a substantial profit from this practice. If passed, the bill will help those individuals being harassed for debt that they legally no longer owe.
To read more on this story visit: http://www.chapter7.com/ok-bill-would-ban-collection-of-zombie-credit-debt/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Credit
Charges filed Against ‘American Credit Crunchers,’ a Fraudulent Debt Collection Company that Scammed Millions from Consumers
The Federal Trade Commission recently filed a lawsuit against American Credit Crunchers, a fraudulent debt collection company that reportedly collected more than $5 million in debt that was never owed by consumers. The company used a call center in India, where callers threatened legal action and utilized other intimidation methods to scam people into paying debt they did not actually owe. The company collected personal information from each individual they contacted to make the scheme appear more legitimate. It was reported that during the course of the scam, the company contacted more than 8 million people during an 8-month period of time.
The company zeroed in on those who were struggling financially, and would be more likely to fall for the scam. In many cases, the collectors posed as federal officers from the “Federal Department of Crime and Prevention,” which does not actually exist. Like many cases, JanLaree DeJulius, was conned into believing she was in debt due to a loan her ex-husband had taken out, but already paid off. DeJulius was told federal officers would arrest her at her place of work if she did not pay the amount immediately. The fictitious company has since shut down its operations and taken down their website. Charges have also been filed against a company affiliated with American Credit Crunchers called Ebeeze and the owner of both companies, Varang K. Thaker.
To read more on this story visit: http://www.sun-sentinel.com/business/careers/la-fi-phantom-debt-collection-20120222,0,3451588.story
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Equifax Reports Good News for 2011
In 2011, Equifax reported that of the 585 million consumers and 81 million businesses, Americans’ delinquency debt rates were significantly declining in all areas but one- student loan repayments, which were at an increase of 1%. This is good news for the US economy, meaning that there is a decline in the amount of past due credit payments. Not only that, but there is also an increase in the number of credit cards issued by lenders to subprime borrowers (borrowers with credit scores below 660). In October of 2008, overall consumer debt was at its peak of $12.4 trillion. In October 2011, there was an 11% decline.
During 2011:
• Bank Credit Card payments 60+ days past due declined by 29%
• Auto Finance payments 60+ days past due declined by 19%
• Auto Bank payments 60+ days past due declined by 23%
• Consumer finance 60+ days past due declined by 23%
• First Mortgage payments 30+ days past due declined by 13%
• Home Equity payments 30+ days past due declined by 10%
• Retail Credit Card payments 60+ days past due declined by 15%
To read more on this story visit: http://www.marketwatch.com/story/us-consumers-paid-down-debt-on-time-in-2011-equifax-reports-2012-01-30?reflink=MW_news_stmp
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Americans Preference to Borrow Rather than Save has Triggered Extreme Debt
Before consumer and housing credit became so readily available in the 1980’s and 1990’s, Americans savings percentages were at economically healthy levels, averaging between 7 and 11 percent. But after the 1986 tax reform, home equity loans became tax deductible, which provided a greater incentive for Americans to borrow. From 1990-2005, housing prices were at extremely high rates, causing more Americans to borrow than ever before, and savings percentages dropped.
After the Housing Market Crash of 2008, Americans found themselves with extremely high mortgage payments, little to no value on their homes, and next to nothing in savings. A couple of years after the Housing Market Crash, Americans slowly began to save more for fear of ending up in extreme debt or possibly losing their homes to foreclosure.
America has the lowest rate of savings of any of the first world countries. Some experts believe this is due to the America’s middle class extreme expenditures on healthcare and education, and a lack of policies insisting on financial education. Many European countries have state institutions that advise people who are borrowing money, before they get into trouble with debt. Another policy America has yet to establish is a policy that would intervene before people become “over-indebted.”
Some experts believe that in order to create a “cultural shift” and create a more financially stable economy, America must pass a federal law that would bring financial education into every education system in the country. The idea is to help young Americans understand the financial risks of borrowing and the different types of credit available to them.
To read more on this story visit: http://globalpublicsquare.blogs.cnn.com/2012/02/16/why-america-spends-while-the-world-saves/
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Debt Collectors are now Being Held Responsible for Harassing Debtors
The Federal Trade Commission is giving debt collection agencies a dose of their own medicine in terms of harassment. The FTC is taking strong steps forward to hold these agencies responsible for harassing debtors. In 2010, a reported 140,036 claims of harassment were filed, which was not only the largest in history, but a 20,000 increase from the previous year. The collection agencies are not only in trouble with the FTC for harassment, but also for failure to notify the debtor of their outstanding debt in writing and also for “misinterpreting” the debt.
Many cases such as the one filed by an 85 year-old in Oregon are surfacing and becoming national news. Anne Sessions is suing Wells Fargo Bank for harassment after she was falsely turned in by a debt collector for being in danger of committing suicide. After Sessions was taken into custody by the police and sent to a mental health institute, she was observed and later released due to the fact she was found to be of no danger to herself or anyone else.
Sessions is now suing in hopes to receive compensation for her $1,055 medical bill from the mental health facility. She is also suing for $250,000 in punitive damages. Sessions claims that she made the remark to the debt collector that some people must want to commit suicide from the harassment of the company, and later was drilled with questions by the debt collector such as, “If you did commit suicide, how would you do it?”
To read more on this story visit: http://www.bankruptcyhome.com/bankruptcyblog/2012/02/13/harassment-goes-too-far-in-debt-collection-efforts/
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
New Initiative Aimed at Restoring Bankruptcy Protection for Student Loan Borrowers
The National Association of Consumer Bankruptcy Attorneys (NACBA) is launching a new initiative aimed at restoring bankruptcy protection for student loan borrowers. 860 members responded to the survey asking about experiences with potential clients who have tried to discharge student loan debt. The message of the survey results was clear: ‘unmanageable student loan debt threatens to reach crisis proportions in the not distant future if Congress does not restore bankruptcy relief.’
Individually, college seniors who graduated with student loans in 2010 owed an average of $25,250, up five percent from the previous year, according to a report from the Project on Student Debt at the Institute for College Access & Success (TICAS). Collectively, the amount of student borrowing crossed the $100 billion threshold for the first time in 2010 and total outstanding loans exceeded $1 trillion for the first time last year. Americans now owe more on student loans than on credit cards, according to the Federal Reserve Bank of New York, the U.S. Department of Education and others. Additionally, because there are fewer people with student loans than there are credit card holders, the debt burden on the individual borrower is considerably higher.
Although educational borrowing is up for every age group over the past three years and young people still carry the biggest student loan debt burden, borrowing has grown far more quickly for those in the 35 to 49 age group, according to an analysis by the credit score tracking site CreditKarma. Bills are pending in the House and Senate to restore bankruptcy protection for private student loans. NACBA supports those bills and is asking Congress to go further and restore bankruptcy relief for government education loans.
To read more on the report prepared by the National Association of Consumer Bankruptcy Attorneys (NACBA) visit:
http://nacba.org/Portals/0/Documents/Student%20Loan%20Debt/020712%20NACBA%20student%20loan%20debt%20report.pdf
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Houston Man Convicted of Internet and Bankruptcy Fraud Sentenced to 15 years in Federal Prison
A 64 year old Houston man, James Maceo Ramey, was recently sentenced to 15 years in federal prison for 25 counts of fraudulent activity. Ramey was charged with bankruptcy fraud after an investigation proved he had filed 15 different bankruptcy cases in less than five years, all in different jurisdictions. Under Chapter 7 and Chapter 13 bankruptcy laws, an individual is prohibited from filing bankruptcy more than one time in an eight-year period, regardless of the jurisdictions.
During the period of Ramey’s bankruptcy scandal, he was conducting an Internet gold scheme as well. Ramey launched a website under a fake business name, “Manhattan Gold, Inc.” The website solicited the selling of numerous gold items, most in the form of coins, all of which, Ramey had no possession of or intent to actually distribute to consumers. During the gold scandal Ramey profited some $400,000, all of which he did not claim in any of the bankruptcy cases he filed.
After five days of deliberation, Ramey was convicted on all 25 counts. Eight of those counts were mail fraud, due to the Internet gold scheme. The other 17 counts were due to false oaths and declarations, concealment of assets, and conspiracy to commit bankruptcy fraud.
To read more on this story visit: http://7thspace.com/headlines/403574/internet_gold_scam_lands_houston_man_15_years_in_federal_prison.html
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Reuters Reports a Major Surge in Consumer Credit Spending
Reports show that U.S. consumer credit spending increased approximately 10 percent towards the end of 2011 in both revolving credit, such as credit card use, and non-revolving credit, such as major loans. This is the highest increase since 2001. During November 2011, outstanding revolving credit increased about $5.6 billion, while non-revolving credit, such as student and auto loans increased by about $14.78 billion. The government lending out student loans has reportedly made the largest increase, raising 31.9 percent. This generated an increase of $6.4 billion from student loans, alone.
There are many speculations as to the reasons behind this surge of consumer credit use. Some economists attribute this surge to consumers being willing to risk spending because they are more comfortable with their financial stance than they have been in the past. It is also said the recent consumer credit surge may be a sign that U.S. consumers are being forced to use their credit cards to fund ‘necessary expenditures.’ In contrast, other economists believe the increase in consumer credit spending is a result of banks instating new fees on debit card use and the attractive ‘cash back’ bonuses offered by credit card companies.
To read more on this story visit: http://www.reuters.com/article/2012/01/10/us-usa-economy-consumercredit-idUSTRE80823O20120110
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Auto Lenders Pursue a Surprising New Type of Consumer
A recent report in the Wall Street Journal has shown that auto lenders are pursuing an unlikely growth market: people who have fallen behind on their mortgages and those with less than sterling credit. In the first three quarters of 2011, auto lenders issued roughly 205,000 loans to borrowers whose credit records showed they had been at least 60 days past due on their mortgage or experienced a foreclosure, up from roughly 80,000 during the same period in 2006.
The trend seems surprising, but there are reasons the auto industry is embracing the subprime category (individuals with a credit score below 619). For one the industry is seeing fewer bad auto loans; the amount of repossessions has actually fallen in recent years. Also, the recession has lead to more people choosing to keep to date on their credit card payments and car loans as opposed to making their mortgage payments on time. The auto industry also realizes this move opens the market to significantly more prospects. Today, more than half of all consumers fall into non-prime, subprime and deep subprime categories. These individuals carry a credit score below 679.
To read more on this story visit:
http://money.msn.com/credit-rating/article.aspx?post=425479b1-46f0-4d17-85c0-8792d13ff4b3
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. 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, P.A. website at www.miamibankruptcy.com.
Tax Representation Firm JK Harris to file Chapter 11 Bankruptcy
The CEO of one of the nation’s largest tax representation firms, John K. Harris, has suspended all current operations at JK Harris and will reportedly file Chapter 11 bankruptcy. Since October 2011, Harris has been attempting to restructure and possibly sell the business and two affiliates under Chapter 11 bankruptcy protection.
Harris is calling the firm’s current state a “reorganization process.” By filing Chapter 11 bankruptcy, Harris is attempting to keep many of the company’s assets while reorganizing and restructuring JK Harris’ finances.
The company who made its name by marketing the slogan, “resolving taxpayer’s debt issues for pennies on the dollar,” has been in financial crisis after multiple client settlements, where plaintiffs claimed they had been misled by JK Harris. Harris’ firm has a countless number of former and current clients who claim to have paid large amounts in fees after being promised compensation and receiving little, if any, return.
To read more on this story visit: http://www.examiner.com/tax-preparation-in-national/jk-harris-to-file-bankruptcy-shutdown-fueled-by-taxpayer-complaints
If you are in a financial crisis and are considering filing Chapter 13 bankruptcy, contact an experienced attorney who can advise you of all of your options. Our bankruptcy attorneys at Kingcade & Garcia can help families and individuals get the most out of Chapter 13 bankruptcy. We fully evaluate your financial situation, debt and income to make sure that Chapter 13 is your best option. Many people who come to our firm are surprised to discover that Chapter 13 may not be the right option, and that with the assistance of an experienced and qualified lawyer, they can be better served by Chapter 7’s debt elimination strategies. You can find more useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.