Tag: Consumer Financial Protection Bureau

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What to do When Debt Collectors Call

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According to the Consumer Financial Protection Bureau (CFPB), collectors have reached out to one-third of all consumers over the past year in an attempt to recover a debt. Although there are many laws in place to protect consumers, the CFPB reported that approximately 25 percent of all grievances the agency has received are complaints about debt collection practices. The CFPB recently proposed new rules to better protect consumers against illegal or unethical debt collection practices.

The CFPB recommends these four measures you need to take when debt collectors call:

  1. Know your rights. Familiarize yourself with the Fair Debt Collection Practices Act (FDCPA), this will help you better understand your rights as a consumers and how you are protected by the CFPB. When a debt collector contacts you, make sure you tell them you are aware of your rights under the FDCPA.
  2. Verify everything. Under the FDCPA, debt collectors are legally require to follow up their call with a written notice detailing your debt. Make sure you ask for that information while you have them on the phone. You also need to verify the debt and the collector. Sometimes debt collectors try to collect “zombie debt” that is past the statute of limitations in your state.
  3. Take detailed notes. Write down every time the collector makes contact with you. In your notes include: the agency’s name, the number they called from or the email address used, the time of the call and the name of the representative you spoke with. Also write down any threats that are made or unethical tactics the collector used to get you to pay the debt.
  4. Complain to the CFPB. If you know your rights and you are aware that a debt collector has violated the FDCPA to try to collect debts, report the encounters to the CFPB.

 

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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 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, Florida Bar, Timothy Kingcade Posts

5 New Rules Can Protect You From Extreme Debt Collection Practices

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The Consumer Financial Protection Bureau (CFPB) has taken many steps to protect borrowers from illegal debt collection practices. However, debt collectors continue to use extreme measures to try to collect on debt. The Director of the CFPB, Richard Cordray said, “We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution or threats of physical harm to consumers and even their pets.”

As a result, the CFPB has proposed a new set of rules that will further monitor debt collectors’ practices and prohibit them from harassing and tricking consumers. Below are five of the new rules that will protect consumers from abusive debt collection practices.

  1. According to the CFPB, approximately one-third of all consumers who are contacted by debt collectors said the attempt to collect was for the wrong amount. This occurs because debts are often sold to debt collectors with limited and inaccurate or incomplete information about the consumers and their debts. However, new proposed rules would force debt collectors to “scrub” their files and make sure they have the correct consumer and debt information before contacting the borrower.
  2. The CFPB’s new proposal would also prohibit debt collectors from contacting consumers more than six times per week. Some debt collectors contact consumers multiple times per day, causing a major disruption to their daily lives. The new limits would also give consumers the right to tell collectors not to call on a particular phone line or at a particular time of the day, such as during work hours.
  3. Another new rule would force debt collectors to disclose more information to consumers regarding their debt. This rule gives consumers the opportunity to defend themselves against illegal practices and enable them to spot a debt collection scam. The same rule would also force collectors to tell consumers if their debt is too old to initiate legal action.
  4. Debt collectors would also be forced to provide consumers with a debt report if they disputed a debt via written notice. Until the debt report is provided to the consumer the collectors would not be permitted to actively pursue debt collection.
  5. Finally, the new rules would also prevent debt collectors from transferring debt without responding to debt disputes. If the debt is transferred before the dispute, the next collector would not be able to pursue the debt until a response is submitted.

 

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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 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

Bankruptcy Legislation for Big Banks Gains Momentum

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Legislation to make the bankruptcy of a big bank more realistic is gaining momentum in Washington, a development that could help the largest U.S. financial firms counter criticism that they remain “too big to fail,” without a taxpayer bailout.

Changes to the bankruptcy code were included in a financial-services budget bill the House passed last week, along with other regulatory provisions such as congressional oversight of the Consumer Financial Protection Bureau’s budget. The bankruptcy legislation has broad support, giving it a greater chance to become law this year.

The Financial Institutions Bankruptcy Act would establish a section of the bankruptcy code specifically for large financial firms and is designed to prevent a repeat of 2008 Lehman Brothers downfall, when the investment bank’s bankruptcy filing caused widespread financial panic and economic consequences. Under the bill, regulators and bankruptcy judges would have more power and flexibility to sort out the liabilities of a failing firm and to stabilize its continuing operations.

Rep. David Trott (R., Mich.), the bill’s primary sponsor, “believes the inclusion of the language in the appropriations bill further builds momentum for this bipartisan plan to protect taxpayers and he hopes the Senate will take up the legislation soon,” a spokesman said last week.

The bankruptcy provisions are part of a number of changes instituted after 2008 to lessen the chances of a Lehman-like collapse and the bank bailouts that followed. The 2010 Dodd-Frank financial overhaul law required big banks to show they have credible plans for going through bankruptcy, known as “living wills.”

By making the bankruptcy code a more feasible option for large financial firms, the bill would help ease GOP concerns about future bailouts. That is part of the reason big banks have been in favor of it. The bill is also less controversial than some related proposals because it does not seek to repeal regulators’ new powers to “unwind financial firms outside bankruptcy.”

Changes to the bankruptcy code could also have a positive effect on big banks by bolstering their “living will” bankruptcy plans. Regulators told five of the eight U.S. banks considered critical to the global economy their plans to go through the existing bankruptcy code were not credible, and the banks face sanctions if they cannot address regulators’ concerns.

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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

Debt Collector on Trial for Targeting Financially-Struggling Consumers

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A Georgia man who prosecutors say organized a scheme that victimized more than 6,000 consumers nationwide is set to go to trial.  Prosecutors say John Williams spearheaded efforts to defraud at-risk consumers from 2009 to 2014 into paying approximately $4.1 million by misrepresenting the status of their debts and consequences of not paying. John Williams’ debt collection agency Williams, Scott & Associates LLC was shut down in 2014.

The trial comes when there is a time of heightened regulatory attention toward debt collection, which the Consumer Financial Protection Bureau (CFPB) considers the No. 1 most-complained about area of consumer financial services.

Debt collection firms, like the one in this case, purchase delinquent debts, oftentimes for pennies on the dollar, then attempt to collect the full amount the original lender claimed. These firms claim they are simply seeking recovery on a rightfully-owed debt.  However, regulators say many of these firms engage in abusive tactics while targeting financially-struggling individuals.

Prosecutors at Williams, Scott & Associates contacted consumers and falsely referred to themselves as “detective” or “investigator,” claimed to be tied to government agencies and even threatened arrest.

Scripts employees read on the calls included legal-sounding language, like the “statute of limitations” on the consumers’ “civil legal rights” had expired, according to prosecutors.  The six employees arrested with Williams have pleaded guilty.  Williams has pleaded not guilty to the charge of conspiracy to commit wire fraud.  He has been held without bail since his arrest and faces up to 20 years in prison.

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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.

Foreclosures, Timothy Kingcade Posts

Why more widowed homeowners are struggling to prevent foreclosure

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Consumer advocates say more widows and widowers nationwide are having trouble saving their homes from foreclosure.  Even though servicers will generally accept loan payments, surviving spouses who are not on the mortgage face increasing resistance when seeking loan modifications, once they have fallen behind on the mortgage payments.  This is often due to the loss of their spouse’s income.

Many are being told there is nothing they can do to prevent foreclosure.  Consumer advocates believe the problem dates back to practices done nearly a decade ago during the housing bubble.  These include a rise in “risky” first and second mortgages, many that were taken out by older Americans who previously avoided taking on new debt- and securitization of loans, which has increasingly put servicers in control of the foreclosure process.  Sometimes these servicers flat-out refuse to deal with the surviving spouse. Other times they give inaccurate information or require unnecessary documentation to prove ownership of the house, stalling a modification while the foreclosure moves forward.

Another roadblock for widowers- companies simply will not allow a modification until the surviving spouse assumes the loan, which cannot happen until the owner is current on the mortgage.  This growing problem has caught the attention of federal regulators and state lawmakers.  Rules are now being proposed to boost protections for surviving spouses.  The Consumer Financial Protection Bureau is preparing regulations this summer that will assist surviving spouses and other so-called successors-in-interest.

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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

Consumer Financial Protection Bureau Takes Action against Debt Collection Agencies Auto-Suing Borrowers

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The Consumer Financial Protection Bureau (CFPB) has ordered two debt collection firms to stop an illegal collection operation that used automated lawsuit generator.  The law firm- Pressler & Pressler, LLP and debt buyer- New Century Financial Services, Inc. have been harassing consumers with lawsuits often based on “flimsy or nonexistent evidence.”

“For years, Pressler & Pressler churned out one lawsuit after another to collect debts for New Century that were not verified and might not exist,” said CFPB Director Richard Cordray in a press release. “Debt collectors that file lawsuits with no regard for their validity break the law and violate the public trust. We will continue to take action to protect borrowers from abuse.”

The lawsuits were allegedly manufactured by an automated system unsupervised by a lawyer, but rather untrained support staff, which spent less than 30 seconds on some cases to verify the claims of each lawsuit.

The CFPB found that the lawsuits violated the Dodd-Frank Act on three counts: making false or empty allegations about consumer debts, filing suits with bad information, and harassment with “unsubstantiated court filings.”  The civil penalties include $2.5 million to $1 million for the law firm and $1.5 million for the debt buyer.

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.

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

More than 40% of Student Loan Borrowers Not Making Payments

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This shocking statistic raises concern that the $200 billion owed might never get repaid.  The new figures represent the after effects of a borrowing boom that has spanned over a decade, with a record number of students enrolling in trade schools, universities and graduate schools.

While most of these borrowers have now entered the workforce, 43% of the roughly 22 million Americans with federal student loans were not making payments as of January 1, according to the Education Department’s $1.2 trillion student-loan portfolio.

Approximately 1 in 6 borrowers, or 3.6 million, were in default on $56 billion in student debt, meaning they had not made a single payment in more than a year; Three million more were at least a month behind, owing roughly $66 billion.  Another three million owing nearly $110 billion were in “forbearance” or “deferment,” meaning they had received permission to temporarily halt payments due to a financial emergency, such as unemployment.

Some borrowers are not even repaying their student loans when they can, according to research from Navient Corp.  The study showed that borrowers prioritized other bills—such as car loans, mortgages and heating bills—over student loan debt. A borrower who defaults on an auto loan might have their car repossessed; with student loans, the penalty is not as immediate or severe.

Advocacy groups, some members of Congress and the federal Consumer Financial Protection Bureau blame the loan servicers for not doing enough to reach out to struggling borrowers to offer manageable payment options.

The Obama administration has stepped up efforts to reach borrowers and offer the income-based repayment plans. In certain cases, the government is garnishing wages and tax refunds of borrowers who refuse to pay.  Private debt-collection agencies hired by the Dept. of Education garnished $176 million in Americans’ wages in the final three months of last year for student debt, according to federal data.

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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.

 

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Military members have twice the amount of debt collector complaints

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According to a recent study by the Consumer Financial Protection Bureau (CFPB), members of the military submit debt collector complaints at twice the rate of civilians.  Debt collection, mortgages and credit reporting were the subject of most of the complaints, according to the CFPB’s report.

While the higher rate of complaints could be due to a variety of factors, including time away for deployments and frequent moves from base to base, it is concerning because unpaid debts can threaten a military career.

The complaints concern disputes over money owed, debt collector calls to commanding officers and threats against security clearances held by service members. Veterans also complained of bill collectors trying to collect on medical bills that should have been paid for by the Department of Veterans Affairs.

It is unfortunate that the brave men and women who serve our country are being targeting by these unfair, deceptive and abusive debt collection practices.  But it also comes as a warning to members of the military to diligently check their credit reports and proactively protect their credit files while away from home.

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.insidearm.com/daily/debt-collection-news/cfpb-report-highlights-high-rate-of-collection-complaints-from-servicemembers/

https://www.washingtonpost.com/news/powerpost/wp/2016/03/23/military-members-have-twice-the-bill-collector-complaints/

Debt Relief, Foreclosures, Timothy Kingcade Posts

House Passes Foreclosure Extension Protection for Military Homeowners

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The Foreclosure Relief and Extension for Servicemembers Act of 2015, which extends foreclosure protection for military homeowners, has been extended from the current 90-day period to a one-year period beginning in January 2018.

The foreclosure protection element of the Servicemembers Civil Relief Act (SCRA) expired at the end of last year, but the extended protection will be retroactive when the bill is signed by President Obama.  The legislation was backed by a coalition of veterans’ organizations and housing and financial services trade associations.

The SCRA’s extension provides important foreclosure protections to the brave men and women of our military who are transitioning back into civilian life.  This is a vital homeownership tool that helps members of the military stay in their homes.

The Consumer Financial Protection Bureau announced that it received approximately 2,800 complaints from military personnel related to mortgages during 2015.  The majority of these complaints were related to servicing issues, including loan modifications, collections and foreclosures.

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.