Kingcade and Garcia Archives - Page 8 of 23

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FTC Cracks Down on Dishonest Payday Lenders

Posted on January 30, 2017by Admin

The FTC has been targeting fraudulent payday lending companies, headquartered in Missouri and Kansas, with consumer settlements reaching as high as $1.266 billion. The FTC recently announced charges against Joel Jerome Tucker, and his companies, SQ Capital LLC, JT Holding Inc., and HPD LLC, for selling portfolios made up of phony payday loans.

The loans listed in the portfolios named fake lenders and debtors, including their social security and bank account numbers, and led to collection activities against consumers who had not taken out loans, according to the FTC.

In another case, a settlement was reached between the FTC and payday lenders, Tim Coppinger and Ted Rowland, and their companies.

Under the terms of the agreement, the lenders paid nearly $1 million with the threat of substantially greater judgments (up to $32 million) should they fail to abide by the terms of the settlement agreement. The fraudulent activity included debiting money from the accounts of people who never requested loans, but for whom the payday lender had obtained personal information. They would then charge interest and fees on the unauthorized loans.

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

Foreclosures, Timothy Kingcade Posts

Trump’s Treasury Pick Accused of Foreclosure Heartbreak Stories

Posted on January 27, 2017by Admin

After President Trump announced his Treasury Secretary nominee, Steven Mnuchin, a wave of California homeowners came forward with allegations that OneWest Bank actively steered them away from making timely mortgage payments to qualify for federal loan assistance that never came. Borrowers claim the fraudulent activity occurred under the leadership of Mnuchin.

The accusations center around the government program called the Home Affordable Modification Program (HAMP), which was launched at during the 2009 financial crisis. Under the program, eligible borrowers could receive new, lower payments and the banks that took part would also receive government incentive payments.

“They (OneWest) hired people who didn’t know what they were doing and some bad information was being given out,” a source who was familiar with OneWest’s foreclosure procedures at the time told CNN.

CNN spoke to seven OneWest borrowers who all had similar stories about being advised to purposely miss payments in order to qualify for the HAMP program.

Mnuchin testified at his confirmation hearing where he defended his time as a bank executive and his work in the private sector. However, the Democrats were not buying it, dubbing him the “Foreclosure King.”

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.

Related Resources:

http://thehill.com/policy/finance/315143-mnuchin-emerges-from-confirmation-hearing-intact

http://money.cnn.com/2017/01/19/news/mnuchin-onewest-foreclosure/

Foreclosures, Timothy Kingcade Posts

Florida House Bill Would Expand Lienholders’ Rights in Foreclosure Cases

Posted on January 25, 2017by Admin

A bill filed this week in the Florida House, would expand the rights of lienholders in foreclosure actions. Florida H.B. 471, proposed by State Senator Jay Fant, “Authorizes certain lienholders to use certain documents as admission in action to foreclose mortgage; provides that submission of certain documents in foreclosure action creates certain presumptions; authorizes lienholder to make request for judicial notice,” according to the language of the bill.

The bill authorizes a lienholder to use any documents from the mortgagee’s bankruptcy case that indicates an intention by the defendant to surrender the property. If the defendant does not withdraw the document in question, that document submitted along with a bankruptcy discharge, “creates a rebuttable presumption that the defendant has: 1. Surrendered to the lienholder the defendant’s interest in the mortgaged property; and 2. Waived any defenses to the foreclosure.”

The defendant’s legal remedy in such a case includes: “raising a defense based upon the lienholder’s conduct subsequent to the filing of the document filed in the bankruptcy case that evidenced the defendant’s intention to surrender the mortgaged property to the lienholder.”

The bill was filed with the Florida House on January 24, and would go into effect on July 1, 2017, if it passes.

Related Resources:

http://floridapolitics.com/archives/230882-florida-house-bill-expand-bank-rights-foreclosure-cases
http://www.dsnews.com/daily-dose/01-24-2017/florida-bill-expand-lienholders-rights https://www.flsenate.gov/Session/Bill/2017/0471/BillText/Filed/PDF

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Quicken Loans Fast Becoming the New Mortgage Lending Machine

Posted on January 23, 2017by Admin

In the years since the housing market crash, many of the nation’s largest banks have strengthened their underwriting processes and become more conservative with their mortgage-lending activities. However, Quicken Loans has pushed forward, becoming the second-largest retail mortgage lender originating $96 billion in mortgages last year — an eight-fold increase from 2008.

In a federal false-claims lawsuit filed in 2015, the Department of Justice accused Quicken Loans of misrepresenting borrowers’ incomes and credit scores, in order to qualify for Federal Housing Administration insurance. As a result, when those loans defaulted, the government says the taxpayers — not Quicken loans — suffered millions of dollars in losses.

In the years since the financial crisis, Quicken has emerged as a leader in the nation’s “shadow-banking system,” a network of non-bank financial institutions that has gained significant ground against its more regulated bank counterparts in providing mortgage loans.

The increase in regulation and decreased profits forced the nation’s banks out. Non-banks, like Quicken, quickly filled the gap.

Former executives have described Quicken Loans as a technology company that sells mortgages. The 3,500 mortgage bankers who work the phones are the life-blood of the company. Many new employees come in with little to no background in financial services. According to an inside source, one employee joined after delivering pizzas to the Quicken Loans office and becoming interested in working there.

Critics say these shadow banks, by focusing on the riskier end of the mortgage market, may be reviving the same circumstances that resulted in so many defaults and foreclosures.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collection Dispute Headed to the Supreme Court

Posted on January 18, 2017by Admin

The U.S. Supreme Court will decide whether firms collecting on a debt they bought for pennies on the dollar can be held liable in lawsuits brought by consumers. The justices agreed to review a lower court’s decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act– a debt collection law enacted in 1977 that prohibits collectors from using abusive, unfair or deceptive practices to collect a debt.

The current case hinges on the definition of “creditor” and “debt collector” and whether a company that purchases debt should be treated as a creditor and therefore not subject to the law.

The case (Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349) involves four Maryland residents who defaulted on their auto loans, and filed a proposed class action lawsuit against Santander in 2012 in federal court alleging violations of the Fair Debt Collection Practices Act, such as misrepresenting the debt amount and bypassing debtors’ attorneys.

The debts had been sold to Santander, a Dallas-based vehicle-financing and lending company owned in part by a subsidiary of Banco Santander. Santander then tried to collect on the loans.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia threw out the lawsuit last March, saying the law applied only to debt collectors, and Santander became a creditor when it purchased the loans.

The Maryland residents told the Supreme Court the 4th Circuit’s reasoning would “hamper both government and private efforts to combat abusive debt-collection practices.” The appeal to the Supreme Court comes as the Consumer Financial Protection Bureau is considering proposals to toughen regulation of the industry.

Click here to read more on this story.

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.

Related Resources:

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

More Consumers Report Debt Collectors are Denying Requests for them to STOP Calling

Posted on January 16, 2017by Admin

A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.

The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.

In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.

Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:

Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.

Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.

Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.

Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.

Click here to read more on this story.

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

Medical Debt Collection Firms Ordered to Pay $577K for Threatening Consumers

Posted on January 12, 2017by Admin

Two medical debt collection firms must refund hundreds of thousands of dollars after they were caught falsely claiming there were attorneys involved in the collection actions. Two Oklahoma-based law firms, both named Works and Lentz, misled consumers by exaggerating the extent to which actual “lawyers” were involved in the collection attempts.

The companies involved in the case attempt to make collections on 700,000 accounts annually, collecting medical debt on behalf of hospitals, doctors, and other healthcare providers. From January 2012 to August 2016, every letter sent to the alleged debtors was printed on the firm’s letterhead, giving the impression that a legal action was pending.

Approximately one month after the letter was sent out; Works and Lentz assigned the account to a manager who contacted the debtor, representing themselves as a law firm.

In addition, when consumers called the firm back, they were greeted with a message stating, “You have reached Works & Lentz, Attorneys at Law.” The letters sent out to consumers ended with a computerized signature of an individual attorney with the title, “Attorney at Law.” The Consumer Financial Protection Bureau alleges that in most cases there was never an attorney who reviewed the collection accounts.

As specified in The Fair Debt Collection Practices Act, it is illegal for firms to use false, deceptive or misleading representations or means to collect a debt, including using false implication that any individual is an attorney or that communications are from an attorney when they are not. This law was designed to protect consumers and help prevent creditor abuse and harassment.

In addition to misrepresenting that they are attorneys, the CFPB alleges that employees of Works and Lentz provided information to credit reporting agencies related to consumers’ debts without verifying the information was correct.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

South Florida’s Foreclosure Rate Continues to Drop

Posted on January 10, 2017by Admin

A recent report shows foreclosure activity on the decline, bringing South Florida’s rank to 10^th in the nation among other metropolitan areas. One in every 786 housing units in South Florida was in some stage of foreclosure last month, according to the real estate research company ATTOM Data Solutions. This number has fallen nearly 18 percent compared to the previous year.

Miami-Dade had the largest number of distressed properties with 1,479 homes in the foreclosure pipeline last month. Broward came in second with 1,012 housing units, followed by Palm Beach with 657.

Miami was one of the hardest hit cities during the housing market crash. This was in part due to lenient mortgage requirements and a surplus of new condo projects.

As home prices recovered and more buyers began purchasing properties in all-cash, South Florida’s foreclosure rate has steadily declined over the past few years.

Related Resources:

http://therealdeal.com/miami/2016/12/15/south-floridas-foreclosure-rate-dives-again-in-november-report/