Tag: cash advances

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of a New Scam Involving Cash Advances

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The Better Business Bureau (BBB) recently warned consumers to beware of a new debt collection con where scammers pose as debt collectors who claim to be collecting on cash advances.

Here is how the scam works:

You receive an automated call from a company claiming to be collecting a payment for a cash advance. Next, the recording will prompt you to stay on the line and speak with an agent.

If you stay on the line, the agent will request that you pay your debt immediately using a wire transfer or a prepaid debt card. If you refuse, the agent will use threats of arrest, lawsuits or garnished wages to intimidate you.

Keep in mind that the use of threats in debt collection is in violation of your rights as a consumer under the Fair Debt Collection Practices Act.

If you receive one of these calls, the BBB suggests you do the following:

  • Just hang up. If you don’t have any outstanding loans, hang up.
  • Get an official notice. Ask the debt collector to provide an official “validation notice” of the debt. In the US and most of Canada, debt collectors are required by law to provide the information in writing. The notice must include the amount of the debt, the name of the creditor and a statement of your rights.
  • Confirm the agency is real. Ask the caller for his/her name, company, street address and telephone number.
  • Do not provide any information they do not have. Until you have verified the call, do not provide or confirm a bank account, credit card number or any other personal information.
  • Check your credit report. If you are unsure if you have outstanding debt, check your credit report with one of the three national credit reporting companies: Equifax, TransUnion or Experian.
  • Place a fraud alert on your credit report. If the scammer has personal information, alert the three credit reporting companies that you have been contacted.

 

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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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Federal Suit would take Google’s Payday lending crackdown a step further

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Google has announced that beginning in July, it will stop selling ads to payday lenders and other companies in the business of short-term, high-interest consumer loans. Currently, when a consumer types into Google “need cash now,” the results are paid advertisements from high interest lenders and companies that refer them customers.

However, beneath those paid advertisements are search results with links to websites, such as INeedALoan.net and LocalCashNow.com that promise to connect borrowers with the same type of predatory loans.  But a lawsuit filed by a federal watchdog could make it harder for those lead-generation sites to operate and may even put some out of business.

Last year, the Consumer Financial Protection Bureau (CFPB) sued T3Leads, a Burbank broker that sells consumer loan inquiries to online lenders alleging that it does little to prevent the lead-generation sites it works with from making misleading claims.

Online lenders are already worried over Google’s decision to no longer sell ads for short-term or high-interest loans — those that must be repaid within 60 days or that carry interest rates of 36% or higher. Google sources said the policy, which goes into effect July 13, will also apply to lead-generation websites that sell consumer data to those lenders.

On the typical lead-generation site, borrowers fill out an application, provide names, addresses, even Social Security and bank account numbers. Once borrowers click submit, it triggers a series of nearly instant transactions.

First, the information is usually sold by the lead-generation site to an aggregator like T3. Next, the aggregator auctions the information to lenders. Finally, the borrower is automatically redirected to the website of whichever lender won the auction.

The CFPB alleges that the process can result in consumers being tricked into taking out loans from lenders that charge the highest interest because often they are the highest bidders for the lead.

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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.

Bankruptcy Law, Timothy Kingcade Posts

Beware of taking Cash Advances before Filing Bankruptcy

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It’s important to remember that not all debt is dischargeable in bankruptcy. Almost all credit card debts are dischargeable, but when it comes to cash advances ‘The Bankruptcy Code’ provides that any cash advance, or combination of cash advances totaling more than $875 obtained within 70 days of the bankruptcy filing date are presumed to be non-dischargeable.
This rule, contained in Bankruptcy Code section 523(a)(2)(C)(i)(II), was imposed by Congress because it felt that consumers who obtained significant cash advances relatively close to their filing date knew, or should have known that they would be seeking bankruptcy relief. It was also designed to prevent consumers from running out and taking cash advances shortly before filing bankruptcy with no intention of paying on the debt.
If you are considering filing for bankruptcy and have recently taken out a large cash advance, it’s important you discuss this with an experienced bankruptcy attorney which can advise you of all your of 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.