Tag: Federal Trade Commission

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

FTC Uncovers another Mortgage Relief Scam

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According to the Federal Trade Commission, the company “Wealth Education” deceptively promised mortgage relief services to financially distressed homeowners. The company charged hefty upfront fees and advised homeowners to take steps that ultimately led them into foreclosure.

The Los Angeles-based company has been one of many scammers that used the housing market crash of 2008 to take advantage of struggling homeowners. The company allegedly used a variety of names and sold phony services that promised to lower homeowners’ mortgage payments or refund their money. According to the FTC, the company never made good on its promise. The company charged rates as high as $5,000 and never issued a refund when it failed to provide homeowners with lower mortgage payments.

It is illegal for companies to charge upfront fees for the promise of a mortgage modification. Companies can only charge fees if you have an acceptable written offer from the lender.

Wealth Education was also advising homeowners to stop communication with their lenders. This would delay victims from figuring out the scam and cause them to stop making payments, which in turn resulted in their homes going into foreclosure.

Click here to read more on this latest mortgage relief scam.

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, Timothy Kingcade Posts

FTC Shuts Down Fraudulent Affiliate Company

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The Federal Trade Commission (FTC) recently had a hand in shutting down a fraudulent company impersonating itself, called “FTC Credit Solutions.” The company was allegedly using false connections with the FTC to market credit repair services to Spanish-speaking consumers.

The company would contact consumers by phone or claim in advertisements on the radio or Internet that it was affiliated with or licensed by the FTC. The employees told consumers that they could remove negative information from their credit reports; guaranteeing customers their credit scores would be 700 or more within six months of service.

FTC investigators called the fraudulent company posing as consumers, and discovered employees were misrepresenting the company as “working with the Federal Trade Commission.” Employees also falsely promised they could “delete” or “get a pardon” for consumers’ debts.

In addition to making false statements about the affiliation with the FTC, the company allegedly charged consumers upfront fees for “credit repair services,” and sent false information to major credit bureaus. The company and its employees allegedly violated the FTC Act by misrepresenting their affiliation with the FTC. They also allegedly violated the Credit Repair Organizations Act by charging upfront fees for credit services.

Click here to read more on the FTC shutting down a fraudulent affiliate company.

If you are in a financial crisis and are considering filing 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.

Credit, Timothy Kingcade Posts

One in Ten People Denied Jobs Due to Employer Credit Checks

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A recent survey from Demos found that one in four unemployed people were required to go through a credit check when applying for a job. The survey also found that one in ten people were denied employment due to information on their credit report. The survey was conducted on 1,000 low and middle-income households. Most people believe credit checks are only required when applying for senior level positions; however, the study found that credit checks are commonly used for entry-level or low-paying positions as well. It is likely that some workers denied a position due to their credit score have errors on their report. According to the Federal Trade Commission, one in five consumers has an error on their credit report.

Demos also surveyed the reason for bad credit and found that two common factors for bad credit scores are unemployment and the loss of health insurance. The report attributes many of those with bad credit to poor misfortune and a suffering economy and says little of how these people would perform at work. The survey also found that minorities are affected more by these credit checks than white households. African-American households had an average unemployment rate of 14% at the end of 2012 and Hispanic households had an average of 10%. These are much higher than white households, which were at 6% at the end of 2012, according to the Economic Policy Institute.

To read more on this story visit: http://money.cnn.com/2013/03/04/pf/employer-credit-checks/index.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. 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, P.A. at www.miamibankruptcy.com.