Tag: CFPB

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Florida Ranks in the Top 5 States for Invalid and Illegal Debt Collection

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Invalid and illegal debt collection practices are at an all-time high across the country, and Florida is no exception.  Data was analyzed from the Consumer Finance Protection Bureau (CFPB) to identify the states that engaged in these deceptive and illegal practices.  ‘Zombie’ debt collections are rampant in South Florida and involve attempts to collect debts not owed, those that were already paid or discharged in bankruptcy, debts owed by someone else, or are a result of identity theft. Typically, this debt collection practice is done by third-parties, who have collected these debts written off by the original creditor.

The five states in which zombie debt collection is most prevalent are:

  1. Delaware– Delaware leads the nation when it comes to the likelihood of having to deal with a collection agency trying to collect a debt you do not owe.  With a total of 422 complaints in the Consumer Complaint Database, Delaware has a per-capita rate of 44.72 complaints per 100,000 residents.
  2. Florida– Florida comes in at number two with 42.43 complaints per 100,000 residents (a total of 8,314 complaints in all).
  3. Georgia– Georgia trails Florida by two hundredths in its per capita incidence rate of reports of zombie debt collection attempts, with 4,258 complaints registered and a population of almost exactly 10 million residents.
  4. Nevada– Like Florida, Nevada has incidence rates of illegal debt collection attempts well above the national average of 25.84 per 100,000.
  5. Maryland– Maryland has 38.65 complaints per 100,000 residents. The affluent and suburban Prince George’s County has an incidence rate of 66.6 per 100,000 residents.

Knowing which debt collection agencies have a history of practicing zombie debt collection in your state can help you avoid being a victim.  The three debt collection agencies most likely to engage in invalid and illegal debt collection practices in the country are:

  1. Encore Capital Group
  2. Enhanced Recovery Company (ERC)
  3. Portfolio Recovery Associates

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 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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Richard Cordray Resigning As CFPB Director by December

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Director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, recently announced in an email to his employees that he is resigning by the end of November. Cordray was nominated in 2012 by President Obama and was confirmed as the first official head of the CFPB the next year.

Under Cordray’s leadership, the CFPB supervised and enforced $11.8 billion in financial relief to consumers, including monetary compensation, principle reductions and canceled debt. The CFPB also spearheaded the lawsuit against Wells Fargo last year. The bank was ultimately forced to pay $185 million in fines after secretly opening phony accounts that were not approved by current customers.

Since President Trump has taken office, the CFPB has come under fire with some Republicans in Congress who believe the agency has too much power and no oversight. However, many in the democratic party such as Elizabeth Warren see Cordray as a tireless public servant. Warren said in a statement, “he held big banks accountable,” and “he will be missed.”

If you are in 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 McMaken. 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 McMaken website at www.miamibankruptcy.com

Related Resources:

https://lendedu.com/news/richard-cordray-resigning-as-cfpb-director-by-december/

https://www.boston.com/news/politics/2017/11/15/heres-what-elizabeth-warren-said-about-the-expected-resignation-of-cfpb-director-richard-cordray

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Payday Loan Rules

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The Consumer Financial Protection Bureau (CFPB) announced new rules on payday loans this week that will help low-income borrowers and families trapped in a cycle of debt. Payday loans are typically between $200 and $1,000 and must be paid back as soon as the borrower receives his or her next paycheck.

On average, a fee of $15 for every $100 borrowed is charged, according to the Community Financial Services Association of America (CFSA). That is an annual interest rate of 391%.

The CFPB argues that most customers who take out the loans are already in financial trouble and cannot afford the fees and penalties associated with these loans.  Approximately four out of five payday loan customers re-borrow their loan within a month.

Here is what the new payday lending rules will do:

Qualify borrowers– Lenders will need to check a borrower’s income, living expenses and their major financial obligations, like their mortgage and car payment, to qualify them for the loan.  In most cases this will involve pulling their credit report.

Rules for loans under $500– Borrowers will not necessarily need to be qualified for these, but they must pay at least one-third of their loan back before they can take out another. Frequent borrowers and those who cannot afford to pay back the loans will be prevented from borrowing, again.

Limits on the number of loans– If a borrower takes out three payday loans back-to-back, lenders must cut them off for 30 days.  Also, unless they can prove an ability to pay it all back, borrowers cannot take out more than one payday loan at a time.

Penalty fee prevention. Lenders cannot continue trying to withdraw payments from a borrowers’ account if they do not have sufficient funds. After two payment attempts, lenders will be required to re-authorize a payment method with the borrower.

Click here to read more on this story.

If you have any questions on this topic or are in 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Just How Often Do Debt Collectors Harass People? The Answer Might Surprise You

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According to the Consumer Financial Protection Bureau (CFPB), debt collectors are required to stop calling once an official request has been made to cease communication. However, approximately 75 percent of consumers who have asked for debt collection calls to stop say that the calls kept coming.

The CFPB released a report earlier this year that surveyed over 10,800 consumers in 2014 and 2015 about their recent experiences with debt collectors. They received approximately 2,000 responses that revealed that over one in four consumers have felt threatened by the debt collector that most recently contacted them. Although debt collection agencies are not allowed to abuse or harass consumers, many collectors do not play by the rules. Approximately 40 percent of consumers surveyed said they asked a creditor or debt collector to stop contacting them, however; only one out of four people reported the collector actually stopped.

Debt collection is a $13.7 billion industry in the U.S. and the most frequent topic of complaint fielded by the CFPB. Approximately 70 million people have been contacted by a creditor attempting to collect on a debt in the past year, according to the CFPB.

The CFPB recently issued proposed rules that would strengthen consumer protections by limiting how often debt collectors can contact consumers. The rules would also require these companies to get the details right and offer an easy dispute process.

Click here to read more on this story.

If you have any questions on this topic or are in 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

What you Need To Know Before Cosigning a Loan

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Co-signing a loan puts more than your name on the line.  It is an all too common practice that gives you the opportunity to help another person, usually a loved one.  But it is important to remember that when you co-sign a loan, you essentially agree to repay the loan yourself. For example, you might co-sign for a car you never drive, a house you never live in or even a student loan for someone else’s college education.  Nearly 40 percent of cosigners found themselves paying some or all of a loan when the primary borrower they co-signed for was unable to make the payments, according to a survey conducted by creditcards.com.

Here are some important facts you should know before you co-sign a loan:

  • The effect it will have on your credit report. Once you cosign a loan, the debt appears on both of your credit reports.  This means, the loan can help both the primary borrower and the co-signer build a positive credit history if payments are made on time.  It can have the opposite effect if the primary borrower begins to miss payments.  These late or missing payments will land on your credit report and remain there for several years.  You can even end up paying late fees and have your wages garnished as a co-signer.  This may also limit your ability to borrow in the future.
  • You will be treated the same as the primary borrower. As a cosigner, the lender will expect you to pay the loan just as the primary borrower agreed to and will come after you for the payments.  Typically, lenders will target the person with the better potential to pay.
  • A warning about private student loans. These type loans are particularly difficult for the co-signer to escape.  Unlike federal student loans, private student lenders frequently require a cosigner since student borrowers are often young and without credit history or income.  Approximately 90% of borrowers who request cosigner release are rejected, according to a report from the Consumer Financial Protection Bureau (CFPB).

Here are some tips for managing your risk as a co-signer:

  • Know the borrower. And know them well.  Know their credit history and ability to repay the loan.
  • Review your budget carefully. If the primary borrower defaults on the loan, can your budget handle the added strain of another monthly payment?
  • Get copies of everything. In addition to the loan signing documents, request to have duplicate statements sent to you as well so you can keep track of the loan and confirm the primary borrower is not falling behind on any payments.
  • Get out as fast as you can. Have the primary borrower agree to refinance the loan under his or her name at some point in the future, as soon as their credit history and finances are better established.

Click here to read more on this story.

If you have any questions on this topic or are in 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 McMaken, 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 McMaken website at www.miamibankruptcy.com

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Can I Verify Whether or Not a Debt Collector is Legitimate?

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Debt collection scams are becoming more difficult for Americans to detect. However, the Consumer Financial Protection Bureau (CFPB) offers consumers a few ways to recognize a real debt collector from a scammer.

According to the CFPB, the first thing you should ask the caller is for their name, company name, street address, telephone number and professional licensing number. The next thing you should do is tell the caller is that you refuse to discuss any debt until you receive a “validation notice” in writing, which debt collectors are required to provide. An important thing to keep in mind is do not give out any personal or financial information to the caller until you have confirmed it is a legitimate debt collector.

Below are a few warning signs that could indicate a debt collection scam:

  • The caller threatens you with criminal charges. If the caller is a legitimate debt collector, they should not claim they will have you arrested.
  • The caller refuses to give you information about your debt. You have the right to ask a debt collector about the debt.
  • The caller is trying to collect a debt that you do not recognize. If you do not recognize the debt, this is a red flag, the caller might be involved in a scam.
  • The caller refuses to give you a mailing address or phone number for the company.
  • The caller asks you for sensitive personal financial information. Do not provide your financial or personal information unless you are certain the caller is legitimate.

Click here to read more on this story.

If you have any questions on this topic or are in 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.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Regulators able to get $192 million in Student Loan Debt Settlement from Aequitas

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Aequitas Capital executives believed they had purchased a gold mine when they began buying student loans from Corinthian Colleges- instead, the debt proved to be the company’s downfall.  Following the for-profit college’s decent into bankruptcy and liquidation; Aequitas also collapsed amid accusations the company’s top execs were running a Ponzi scheme.

However, Aequitas continued to collect payments on the debt- until now. The U.S. Consumer Financial Protection Bureau and several state attorneys general and the Aequitas receiver reached a deal in which about 41,000 former Corinthian students whose debt is held by Aequitas could get more than half- possibly all, of their debt eliminated.

In July 2015, Aequitas became a key ally and vital source of liquidity for Corinthian by buying massive amounts of student debt. By helping finance Corinthian’s in-house private loans, Aequitas enabled Corinthian to access billions in student loan money from the U.S. government.

The bureau recently filed a lawsuit against Aequitas as part of the settlement. It claims Aequitas employees privately expressed anxiety about the huge percentage of Corinthian students who were failing to make their loan payments. “With defaults this high, how can we defend our practices,” the unidentified employee wrote in a 2011 note.

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.

Debt Relief, Timothy Kingcade Posts

CFPB Penalizes Mortgage Servicing Company with $1.15 million Fine for Illegal Foreclosure Practices

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The Consumer Financial Protection Bureau announced it will fine Fay Servicing more than $1 million for illegal foreclosure practices.  An investigation found the mortgage servicing company was “keeping borrowers in the dark” about their foreclosure prevention options.

The Bureau stated, “Fay Servicing illegally launched or moved forward with the foreclosure process while borrowers were actively seeking help to save their homes.”  The investigation further unveiled that Fay Servicing violated the bureau’s mortgage servicing rules related to borrowers’ foreclosure rights.

The CFPB’s mortgage servicing rules state that servicers must keep borrowers informed about requirements, options, and rights throughout the process of applying for foreclosure relief.  In addition, the servicer must provide certain protections from foreclosure proceedings during the application process in certain cases.

Click here to read more on this story.

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.

 

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

What Actually Happens When You Default on Your Student Loans

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According to the Department of Education, eight million Americans defaulted on their federal student loans last year. Approximately 1.1 million of those former students did so for the first time which is a U.S. high.

The former student loan ombudsman at the Consumer Financial Protection Bureau, Rohit Chopra, told Time Magaizine, “In spite of a booming stock market and falling unemployment, there is obviously a significant block of the labor force that is really struggling.” He went on to say, “New college graduates and new entrants to the workforce are facing a double whammy of flat or declining wages and higher debt.”

Defaulting on student loans is a growing problem for millions of borrowers. As a result, it is important to understand the consequences of doing so. Here are three things you need to know about defaulting on a student loan:

  1. It is more serious than a late payment. In most cases, default occurs when a borrower has not made a payment in 270 days, which is roughly nine months. However, loans that are offered by the Federal Family Education Loan Program (FFEL) are considered to be in default after 330 days or 11 months. When this happens, the entire balance of the loan and interest is due immediately and you lose any eligibility for deferment or forbearance, or any additional financial aid.
  2. Your credit score will drop. The federal government will report your student loan delinquency to credit agencies. If this happens, it will be a long and difficult process to rebuild.
  3. The federal government may garnish your wages. If you default on a federal student loan, the government may take money out of your paycheck before you even see it. Your tax refund can also be held to collect some of your debt. If the debt persists for long enough, the government can also take money out of your social security check. Fortune reported that more than $1 billion has been taken from social security checks since 2001.

 

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.

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Phone Scam Targeting Student Loan Borrowers

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A phone scam promising to forgive borrowers’ student loans is making the rounds, again.  The scammer asks for an upfront fee to negotiate with the loan lender on your behalf, then takes the money and runs.

The best thing you can do if you are contacted, is to hang up the phone.  Student loans can be forgiven, but only under certain circumstances.  Here are some tips from the Consumer Financial Protection Bureau (CFPB) to help spot a student loan debt relief scam:

1.) Upfront fees. No upfront fees should ever be charged by a student loan debt relief company. In addition, you should not be required to sign a contract with the company. The CFPB notes that free assistance is available through your student loan servicer and advises that oftentimes taking upfront payment before debt relief services have been provided is illegal.

2.) Promises. Fraudulent student loan debt relief companies will promise borrowers loan forgiveness or even complete cancellation. The false promise of negotiating with your lender under federal student loan programs is a flat out lie.

3.) Signing documents. Student loan debt relief companies should not require that you sign a “third party authorization” or a “power of attorney.”

4.) Requests for your Federal Student Aid PIN: Borrowers should be extremely cautious of any student loan debt relief company that asks for this information. The CFPB states that, “honest companies will work with you to come up with a plan and will never use your PIN to access your student loan information.”

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.

Related Resources:
http://www.wzzm13.com/money/beware-of-phone-scam-offering-student-loan-forgiveness/395483886

http://www.consumerfinancialserviceslawmonitor.com/2014/12/cfpb-issues-warning-to-consumers-and-springs-into-action-against-student-debt-relief-scams/