Consumer Financial Protection Bureau Archives - Page 5 of 9 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When Debt Collectors Call Know your Rights

Posted on January 17, 2017by Admin

When a debt collector calls, it’s important to know your rights. In July, the Consumer Financial Protection Bureau required debt collectors to do their “due diligence” to help ensure they are collecting on legitimate debt and put a cap on their weekly attempts to reach a consumer. The bureau also increased enforcement, bringing more than 25 cases on debt-collection tactics that deceive or abuse consumers.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

Calling you repeatedly to annoy or harass you;
Trying to collect more than you owe;
Failing to send a written notice of the debt;
Threatening violence, using profanity or offensive language;
Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
Calling you before 8 a.m. or after 9 p.m.;
Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
Contacting you at your work, after you have requested them to stop;
Failing to verify disputed debts;
Ignoring cease communication requests.

It is important that consumers verify everything when it comes to a debt they may (or may not) owe. In a recent CFPB survey, half of Americans contacted about a debt in the past year said they were given inaccurate information about what they owed. Debt collectors are legally required to follow up their phone call with a written notice detailing the debt.

Understand that just because someone is calling to collect a debt, does not mean you should pay it right away. It is always important to verify. The collection attempt could be for a so-called zombie debt that is past the statute of limitation or a debt collection scam.

If you do in fact owe the debt, make sure and take notes. Write down every name and employee number you speak with, including the agency, the number they called, the time of the call, etc. Take notes on what was said. This detailed record keeping can prove helpful if you need to file a complaint about the debt collector’s behavior in the future.

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.

Related Resources:

http://www.cnbc.com/2017/01/12/know-your-rights-when-a-debt-collector-calls.html

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

The Student Loan Crisis Facing Older Americans

Posted on January 13, 2017by Admin

When we think of those struggling with student loan debt, we typically think of millenials still living with their parents. However, many boomer parents are struggling, too. According to a report from the federal Consumer Financial Protection Bureau (CFPB), older Americans are carrying an “unprecedented amount of student loan debt into retirement.”

In 2015, older consumers owed an estimated $66.7 billion in student loan debt. Nearly 867,000 borrowers 65 and older owed federal student loans in 2015, now the fastest growing segment of student loan borrowers.

With these new findings, it seems the education debt crisis and retirement are closely tied. A growing number of older borrowers are struggling to make their loan payments, oftentimes due to reduced incomes in retirement.

A growing number of federal student loan borrowers age 65+ had their Social Security benefits reduced or offset because of unpaid student loans – 8,700 in 2005 and 40,000 in 2015. The vast majority of the older borrowers, approximately 73%, took out student loans to finance their children’s or grandchildren’s education. Many of these loans were taken out under the Parent PLUS Loan Program, with a current interest rate of 6.31%, the only federal program that allows parents to borrow for the undergraduate education of their children.

Here are some tips for older borrowers struggling with student loan debt:

If you have co-signed your child or grandchild’s student loan, request the servicer send you an account statement so you can learn the outstanding balance and pay off the loan.

If you are struggling to make federal student loan payments, you may qualify for a payment plan that can substantially cut your costs. For example, if you retire and your income drops substantially, you can apply for an income-based repayment plan. This could reduce your payments and even suspend them.

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, Timothy Kingcade Posts

How to Keep Debt Collectors from Ruining Your Holiday

Posted on December 16, 2016by Admin

It is important for consumers to know that if you do not want to deal with a delinquent account over the holidays, you don’t have to. You can request the collection agency stop calling you. Under The Fair Debt Collections Practices Act (FDCPA) a debt collector must cease contact with you if you send a written request to do so.

However, it is important to note that this request does not eliminate your debt. The outstanding bill can still end up on your credit report and the collector can elect to seek a judgment against you to recoup the debt, which could result in wage garnishment and further damage to your credit report.

That is why it is important to try and negotiate a payment plan with the debt collector. Doing so can prevent them from taking further action against you. Make sure and have the collector put your agreement in writing and mail it to you. Another tip: if you have an unpaid bill that has not yet gone to collections, you may want to reach out personally to the creditor. They may be willing to waive fees, lower the interest rate or settle the debt for less than you owe. Many creditors wait up to 90 days before turning a debt over to collections.

Finally, if you truly do not owe the debt or you think a debt collector has crossed the line, you can consult a consumer attorney about whether you have a FDCPA claim and what your next steps should be. Remember, when it comes to debt collectors, it helps to know your rights. If you believe a debt collector is violating the law by calling you outside the allowed times or by calling more frequently than they should, after you have asked them to stop calling or have sent a cease and desist letter, you can report them to the Consumer Financial Protection Bureau and your state Attorney General.

At the law firm of Kingcade & Garcia we want you to have a safe and Happy Holiday this year! 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.

Related Resources:

http://blog.credit.com/2016/12/can-a-debt-collector-call-me-during-the-holidays-163536/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How Trump’s Presidency Will Affect Consumers

Posted on November 21, 2016by Admin

The battle for consumer rights against powerful corporate and special interests has always been an uphill battle, but the road ahead just got considerably more difficult with this month’s election results. President-Elect Donald Trump released a statement on his website saying that he plans to “dismantle” the Dodd-Frank Act, which would be detrimental for consumers’ protection rights.

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 in order to protect consumers from irresponsible lenders who used hidden fees and fine print to take advantage of them. The purpose of the Dodd-Frank Act is to prevent the excessive risk-taking that led to the Great Recession and the housing bubble burst in the mid-2000’s.

One of the greatest threats consumers’ face during Trump’s presidency is the fate of the Consumer Financial Protection Bureau (CFPB). The CFPB was one of the most significant outcomes of the Dodd-Frank Act. The Bureau is a consumer watchdog that protects American families from unfair and abusive financial practices. It sets clear rules and ensures that the highest financial standards are met. The CFPB monitors the actions of mortgage lenders, banks, credit unions and other financial companies.

Unfortunately for consumers, the future of the CFPB during Trump’s administration is unclear. While he spoke out against the Dodd-Frank Act, saying that it “has made it impossible for banks to function,” he has not mentioned his plans for the Consumer Financial Protection Bureau. However, the Republican Party has called for repeal of the Dodd-Frank Act and abolishment of the CFPB. Opponents of consumer protections clearly feel empowered to push the agenda of predatory lenders, abusive debt collectors and others who target struggling individuals and low-income families.

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.

Related Resources:

https://consumerist.com/2016/11/09/from-healthcare-to-financial-protection-how-will-the-trump-white-house-affect-consumers/

https://www.greatagain.gov/policy/financial-services.html

https://www.whitehouse.gov/economy/middle-class/dodd-frank-wall-street-reform

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Credit Card Companies want you to give up Your Right to Sue. Here’s how to protect your Rights

Posted on November 17, 2016by Admin

Before signing up for a new credit card, scan through the fine print and search for the word “arbitration.” What you will find is that the company requires you to resolve all conflicts through a binding dispute resolutions process, rather than going to court.

These clauses are common among cell phone carriers, financial institutions and online service providers such as Netflix and Amazon. Some companies provide the option to opt-out of mandatory arbitration, if you act quickly enough. In fact, more than a quarter of the more than 400 credit card contracts analyzed by the Consumer Financial Protection Bureau included an opt-out provision.

For Citi Card customers, you may even have gotten a chance for a do-over. This past year, the issuer revised its customer agreements, giving them a new opportunity to opt-out of the company’s standard arbitration agreement.

As with many opt-out notices, instructions can be vague and time is of the essence. Here are some guidelines consumers should follow when requesting an opt-out.

Follow instructions. Read the opt-out provision carefully and follow the instructions exactly. It is necessary to include enough information to identify the person and convey their intent to opt-out.
Identify yourself. If the directions are vague, use a standard business letter format, with the date and address at the top. Include all pertinent details such as your account number, customer ID and your contact information.
Be direct. Be as clear and concise as possible in your writing. If you go to court, the lawyers for the company will try and argue that you were not clear or did not mean what you said.
Keep records. If an email option is given, use that. An email automatically generates a time stamp. If you do not need to send a physical letter, keep a copy for your records. Save any responses you receive and send the letter certified mail, so you receive confirmation of its receipt.

Click here to read more on this story.

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

Banks Revise Student Loan Contracts to Help Borrowers Avoid Automatic Default

Posted on November 2, 2016by Admin

Private lenders are revising student loan contracts to ensure borrowers are not placed in default when the co-signer of their loan dies or declares bankruptcy. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed Consumer Financial Protection Bureau (CFPB) director Richard Cordray that the 10 member banks who offer student loans, including Wells Fargo, PNC Bank, Discover and Sallie Mae, have changed their policy on these type auto defaults.

The banks will no longer trigger a default when a co-signer dies, while most will do the same in the event of a bankruptcy. The same policy will apply with existing loans.

Earlier this year, the CFPB warned bankers that they were at risk of breaking the law by automatically placing people who were current on their loans in default. The practice occurs in the private student loan market, where banks and other financial firms provide education financing with loan contracts that give them the right to trigger a default, even if the loan is being paid on time. Auto defaults leave borrowers with no choice but to repay the entire balance of the loan or ruin their credit, making it difficult to purchase a home or car.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of Credit Card Skimming Scams at Gas Stations

Posted on October 25, 2016by Admin

Consumer protection officials are warning consumers about a new form of high-tech theft that can affect all credit and debt card users. Scammers are using devices known as ‘skimmers’ at gas pumps to steal account information from debit and credit cards that are swiped. These devices are also commonly found at ATMs.

According to Mississippi state Attorney General, Jim Hood, the devices are difficult to detect and come in two forms: internal or external. The external devices fit over the actual card readers at the pumps. The internal devices are typically communication cables connected to a device that records data from the cards.

“These devices may go undetected for weeks, all the while gathering sensitive account information from unsuspecting consumers,” Hood said. “Consumers need to call their financial institutions immediately if they see any unauthorized activity on their accounts, and watch closely for signs of tampering when using gas pumps or ATMs.”

Authorities offer the following tips to avoid becoming a victim of card skimming:

Pick pumps close to the entrance of the gas station or convenience store. Skimmers usually target pumps that are not near the entrance.
Pay with cash.
If you’re using a debit card, choose the option to process the payment as credit so scammers do not have access to your PIN.
Lightly wiggle the card reader on the pump. External skimmers might feel loose and come off.
Ask gas stations and convenience stores what type of anti-skimming measures they have adopted.

According to the Florida Department of Agriculture and Consumer Services, more than 250 skimmers were confiscated from gas pumps between July 2015 and July 2016. Approximately 100 consumers’ card numbers were stolen from each device and $1,000 stolen from each consumer.

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, 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

Wells Fargo Sends Statement to Consumers with Important Updates following Scandal

Posted on October 24, 2016by Admin

Nearly two months after the Wells Fargo scandal was first revealed by the Consumer Financial Protection Bureau (CFPB), the bank has issued statements to customers with important updates about the steps the bank has taken to make amends.

The statement begins by apologizing to consumers stating that, “We are deeply committed to serving you and your financial needs, and in those instances, we did not live up to our commitment. This is inconsistent with our values and with the culture we work hard to maintain. It’s not who we are as a company.”

The statement goes on to say, “Here’s what we are already doing:”

Putting your interests first. We have eliminated product sales goals for our retail banking team and members who serve customers in our bank branches and call centers.
Proactively communicating with you. We now send a confirmation after you open a new consumer or small business checking, savings, or credit card account so you know what is happening and can tell us if anything we have confirmed is different than what you expected.
Full transparency. You can always see your active accounts any time when enrolled in Wells Fargo Online.
Fixing what went wrong. We have provided full refunds to customers we have already identified and we are broadening our scope of work to find customers we may have missed. If we have any doubt about whether one of your accounts was authorized, and any fees were incurred on that account, we will contact you and refund fees.

The statement issued by the bank is the result of a CFPB investigation which resulted in the Bureau fining the bank $185 million for unethical business practices. The CFPB found the bank had opened approximately two million unauthorized deposit and credit card accounts.

Click here to read a timeline of events of the Wells Fargo Scandal.

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, 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.bizjournals.com/atlanta/news/2016/10/22/wells-fargo-sends-customers-statement-about.html

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Consumer Financial Protection Bureau Concerned by Student Loan Servicers’ Practices

Posted on October 7, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) recently expressed concerns over a practice that is being used by some student loan servicers known as “redisclosure” of payment terms. Redisclosure causes a borrowers monthly bill to fall when extra payments are made.

Experts believe that student loan servicers are using the redisclosure tactic to make it harder for borrowers to save money on interest. Once the monthly payment amount is reduced, the term of the loan is extended, causing the borrower to pay more in interest over time.

For example, if a borrower starts out owing $25,000 in student loans payable for a 10-year term with $300 monthly payments and decides to pay an extra $100 each month toward the principal, some loan providers will drop the monthly bill to be less than $300 per month to possibly extend the term of the loan.

“When borrowers pay more than they owe, they expect to save money on interest charges and get out of debt faster. But the practice we highlighted can hold these borrowers back, making it harder and more expensive for student loan borrowers to pay back their loan and get out of debt,” CFPB official Mike Pierce said.

The good news is that you can tell your loan servicer to set your monthly payment back to a requested payment amount, if you discover it has been lowered. You can also tell your service provider what to do with your extra money each month. For example, you can ask that a standing instruction be placed on your account so that the extra money you pay each month goes toward the loan with the highest interest rate.

Click here to read more on this story.

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

The Consumer Financial Protection Bureau Handled One Million Complaints in Five Years

Posted on September 30, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) recently published the September 2016 Monthly Complaint report. The report revealed that more than five years after opening its doors, the CFPB has handled more than one million complaints.

“Since opening our doors in 2011, we have handled over one million complaints from consumers about their problems with financial products and services. Not only have we achieved substantial relief for consumers, but hearing directly from consumers is fundamental to our mission. We can better protect all consumers because of what we learn from those who have submitted complaints and shared their experiences with us,” said CFPB Director Richard Cordray.

The CFPB was initially handling complaints regarding credit cards, upon opening its doors in July 2011. However, it later expanded to handle complaints in several other areas of finance, such as: mortgages, bank accounts and services, private student loans, vehicle and other consumers loans, credit reporting, money transfers, debt collection and payday loans.

Debt collection recently surpassed mortgages to become the top complaint the CFPB receives. Out of the one million complaints, the CFPB has received 244,008 mortgage complaints and 264,123 complaints regarding debt collection.

Click here to read more on this story.