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Regulators - legislators

Tuesday, April 20, 2010

How to file credit reporting complaints online with the FTC

I started a new blog at Liars and Cheats EXPOSED and forgot to post it here:

http://liarsandcheats.info/filing-complaints-with-ftc-and-attorney-general/

After years of entirely IGNORING consumer complaints, it’s exciting that the FTC “may” contact the credit bureaus under certain conditions (due to some unidentified “new law"), details are at the blog. 

One of my clients just submitted his complaint about Experian and that’s another blog.

Monday, January 25, 2010

WV AG McGraw sues Capital One AGAIN - unconscionable practices - re-aging debts

I’ve previously written about the Capital One practice to offer NEW accounts WITH old charged off debts.  I’m glad to see that McGraw is TRYING to do something about it.

What’s wrong with the OTHER 49 AGs?

And I wonder WHY he can sue them again.  In 2008, he sued Capital One and they promptly converted to a NATIONAL bank.  The states have NO power to enforce the laws against NATIONAL banks, as Wells Fargo litigated in California years ago.

I’m sure you can see what’s going on.  The BANKERS are running Washington D.C. and of course their REGULATORS, the Federal Reserve Banks, do NOTHING! 

Long time readers may recall that I sued the Federal Reserve Bank of Richmond and its VP and Senior Legal Counsel James McAfee in 2003 to MAKE them enforce the Fair Credit Reporting Act.  Of course they were dismissed and did NOT enforce anything.

I’m not going to post the links here because we are in the middle of launching Liars and Cheats EXPOSED HEADLINES.

If you read Rense.com, you’ll recognize the format, although we’re changing it a little and we substitute credit and collection news for his Zionist news.  All headline links will be archived so that you can find OLD news and I’ll try to find the OLD but VERY relevant articles about Wells Fargo’s California litigation establishing that the states’ AGs have NO jurisdiction over NATIONAL banks.

I’m so incredibly sick and tired of everybody harping on derivatives and BS that has absolutely NOTHING to do with our problems.

ALL major banks should have FAILED and made room for community banks like the Common Good Bank. 

The only reason the big NATIONAL banks ARE successful is because they engage in CRIMINAL practices with impunity.

HEADLINES will be a lot more than random links and I will document these allegations. 

Of course I’ll still be writing about credit and collection news here and I’ll definitely try to look into why McGraw CAN sue Capital One again.  I’ll have to get the court filings, watch what happens.  And that takes time and money.

So please vote with your dollars and support Liars and Cheats EXPOSED!

Tuesday, September 22, 2009

FTC settlement with payday lenders: fines and compliance - debts are erased?

What a strange settlement:

Internet Payday Lenders Will Pay $1 Million to Settle FTC and Nevada Charges; FTC Had Challenged Defendants’ Illegal Lending and Collection Tactics

An international Internet payday lending operation will pay $1 million to settle Federal Trade Commission and State of Nevada charges that it failed to disclose key loan terms and used unlawful debt collection tactics.

The defendants operated from the United Kingdom and targeted consumers in the United States, who were misled into believing that the defendants operated from Nevada. According to a complaint filed by the FTC and Nevada in 2008, the defendants told consumers that the loans had to be repaid by their next payday with a fee ranging from $35 to $80, or the loans would be extended automatically for an extra fee debited from consumers’ bank accounts until the loans were repaid.

The FTC charged the defendants with violating the FTC Act by using unfair and deceptive collection tactics. The Commission alleged that they falsely threatened consumers with arrest or imprisonment, falsely claimed that consumers were legally obligated to pay the debts, threatened to take legal action they could not take, repeatedly called consumers at work using abusive and profane language, and improperly disclosed consumers’ purported debts to third parties. They also allegedly failed to make required written disclosures to consumers before consummating a consumer credit transaction, such as the amount financed, the annual percentage rate, payment schedule, total number of payments, and any late payment fees, in violation of the Truth in Lending Act (TILA) and Regulation Z.

The settlement order requires the defendants to pay $970,125 to the FTC and $29,875 to the State of Nevada. The order prohibits them from falsely claiming that consumers may be arrested or imprisoned for failing to pay debts, that they are legally obligated to pay the full amount of a purported debt, and that for nonpayment they are subject to lawsuit, seizure of property, or garnishment of wages. The defendants also are barred from repeatedly calling consumers’ work places, using obscene or threatening language toward consumers and third parties, and disclosing the existence of consumers’ purported debts to third parties.

The order bars the defendants from violating the Truth in Lending Act and Regulation Z, including by requiring them to make the required TILA disclosures in extending closed-end credit. The defendants must disclose clearly, in writing, in a form consumers can keep and before a transaction is made, the interest rate and other key terms of their loans; a repayment schedule showing dates when consumers’ bank accounts will be debited for the loans; payments and fees for late or non-payment of the loans; and a statement that payday loans may be limited or prohibited in some states. In addition, the order requires them to obtain consumers’ written confirmation that they have received the required disclosures before making a transaction and, when collecting debts, the defendants must provide consumers, upon request, a written statement of amounts and fees paid and due. The order contains record-keeping and reporting provisions to allow the FTC to monitor compliance.

The order also includes provisions relating to alleged violations of Nevada law. The order prohibits the defendants from violating Nevada state consumer protection law when conducting business from the State of Nevada or when selling goods or services to Nevada residents, including failing to be properly licensed, failing to provide notice and disclosure of all material facts as state law requires, and failing to comply with any state or federal law in selling goods or services.

The settling corporate defendants are Cash Today, Ltd., and The Heathmill Village, Ltd. (both registered in the United Kingdom); The Harris Holdings, Ltd. (registered in Guernsey, an island between England and France); Leads Global, Inc., Waterfront Investments, Inc., ACH Cash, Inc., HBS Services, Inc., Rovinge International, Inc.; and Lotus Leads, Inc. and First4Leads, Inc. (both now dissolved); each also doing business as Cash Today, Route 66 Funding, Global Financial Services International, Ltd., Interim Cash, Ltd., and Big-Int, Ltd. The settling individual defendants are Aaron Gershfield and Ivor Gershfield. The FTC dismissed from the case Jim Harris, who was named in the complaint; he has voluntarily entered into a separate agreement with the State of Nevada that governs his future conduct under state law and provides that he will pay the state a civil penalty.

The FTC appreciates the assistance of the United Kingdom’s consumer and competition authority, the Office of Fair Trading, in this matter.

NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Nadine Samter
FTC Northwest Region
206-220-4479
(FTC File No. X090012)
(Cash Today settlement)

What does THIS mean?

“The order prohibits them from falsely claiming that consumers may be arrested or imprisoned for failing to pay debts, that they are legally obligated to pay the full amount of a purported debt, and that for nonpayment they are subject to lawsuit, seizure of property, or garnishment of wages. The defendants also are barred from repeatedly calling consumers’ work places, using obscene or threatening language toward consumers and third parties, and disclosing the existence of consumers’ purported debts to third parties.”

They can NOT sue for the debts? 

The borrowers are NOT legally obligated to pay those debts?

Can they report the debts on the credit?

And what is the FTC doing with the $1 million?

Why are they NOT barring the scum from operating in the US?

Why are they ORDERING the defendants to comply with the law?  Isn’t that a given?

When PEOPLE steal from a bunch of corporations and PEOPLE get caught 3 times, they’re looking at LIFE IN JAIL in same states. 

Incorporate and you can steal all you want.  You may have to hand over some of your profits to the FTC and you may be ordered to stop stealing.  If necessary, you can always start a new corporation.

This is one of so many settlements designed to protect the criminals.  Truly incredible.

Tuesday, August 25, 2009

California AG Brown $1,000,000 judgment against Cashcall

Unlike most of America, California has STATE law protecting consumers from abusive debt collection practices INCLUDING original creditors.  The federal Fair Debt Collection Practices Act (FDCPA) ONLY applies to collectors.

You can’t imagine how abusive they are unless you’ve answered their daily harassment calls.

Brown Forces Predatory Lender to End Illegal and Abusive Debt Collection Practices
Los Angeles - Attorney General Edmund G. Brown Jr. today forced CashCall, Inc., an Anaheim-based fast-money lender, to stop using “loan shark tactics” in collecting debt, including abusive calls at all hours of the day and night and empty threats of law enforcement action.

The court-ordered judgment also forces CashCall to stop misleading consumers with deceptive advertising and pay $1 million in civil penalties and legal expenses. CashCall used former child actor Gary Coleman as its television spokesman.

“CashCall preyed on consumers desperate for cash, charging triple digit interest rates and using loan shark tactics to collect on their debts,” Brown said. “This judgment forces CashCall to stop harassing its customers and should serve as a warning to consumers to be wary of fast-money lenders.”

CashCall, owned by Paul Reddam, founder and former owner of DiTech mortgage company, currently charges 139.34% annual interest on the $2,600 loan it offers to consumers. This means that consumers who make the required $298.94 monthly payment over 36 months pay $10,761.84 over the life of the loan. That adds more than $8,000 in interest to the loan.

Brown contends that CashCall used illegal and abusive debt collection practices when customers were unable to make on-time payments, in violation of California Business and Professions Code Section 17200. These practices included:

- Making excessive and verbally abusive telephone calls at all hours of the day and night;
- Causing borrowers to incur bank fees by repeatedly trying to collect payments despite knowing there were insufficient funds in the borrowers’ accounts;
- Threatening to initiate law enforcement and wage garnishment proceedings against borrowers without any basis for doing so;
- Improperly discussing private financial information with borrowers’ friends, colleagues and neighbors;
- Failing to honor borrowers’ requests to cancel automatic withdrawals from checking accounts; and
- Continuing to contact borrowers by phone after receiving requests to only contact them in writing.

Brown also contends that CashCall misled customers with deceptive television, radio and online advertising in violation of Business and Professions Code Section 17500.

CashCall’s advertisements falsely suggested that low interest rate loans were available to all borrowers, when in reality, the rates advertised were only offered to some borrowers, usually members of the military. CashCall offered lower interest rates because Federal law limits the interest it can charge on loans to active duty servicemembers and their families.

- Stop making excessive and verbally abusive telephone collectionll hours of the day and night;
- Pay $1 million in civil penalties and expenses related to the investking excand resolution of this case;
-
Train its employees within 30 days and not fewer than four times per year thereafter to ensure compliance with the judgment;
- Terminate any officer, director or employee who violates the terms of the judgment;
- Record all telephone calls made to, or received from, prospective and current borrowers; and
- Maintain a detailed log of all consumer complaints.

A copy of the complaint and final judgment, filed in Los Angeles County Superior Court, is attached.

I don’t really see why Cashcall is allowed to continue to operate.  If you get caught speeding in your car you can lose your license.  These lenders DELIBERATELY inflict so much mental anguish and they don’t care how many human beings die—all in the name of profits.

Why don’t they just shut them down?

Thursday, August 20, 2009

Missouri Attorney General sues Portfolio Recovery Associates for FRAUD

Too cool!

My published complaint: http://credit-reporting-collection-ftc-complaints.info/category/portfolio-recovery-associates/

Of course the FTC did NOTHING.

But apparently the MN AG contacted Portfolio and while I haven’t even had time to update yet, they also deleted the inquiry.  Here’s the MO press release:

August 18, 2009

Attorney General Koster takes action against fraudulent debt collectors--Koster says businesses tried to collect debts people didn’t owe--
St. Louis, Mo. - Attorney General Chris Koster today filed suit against two debt collection companies that are operating scams to collect debts from citizens who do not owe the money.

Koster filed law suits in St. Louis against Portfolio Recovery Associates, a public company based in Virginia, and Professional Debt Management located in Kansas City.

Koster said Portfolio buys old and bankruptcy-discharged debt, often from another bad debt buyer, and then tries to collect, sometimes through court action. He said the company often is attempting to collect on accounts that are already paid or have been discharged in bankruptcy; sometimes they try to collect from the wrong consumer or for the wrong amounts. He said the company has threatened to garnish consumers’ social security checks, which they have no authority to do, and has refused to provide consumers with proof that the debt is valid.

Koster said Professional Debt Management uses scare tactics, leaving messages on consumers’ phones that there is an emergency. He said that like Portfolio, they attempt to collect on accounts already paid or from the wrong party.

“The Attorney General’s office intends to take aggressive action to protect Missouri consumers,” Koster said. “I am asking the court to issue a permanent injunction prohibiting these companies from violating consumer protection laws and to order that they provide full restitution to the people they have harmed.”

Koster also is asking that the court impose monetary penalties and require the companies to pay all court costs.

The feds so totally sold out.

It’s up to the states to protect their citizens.  Unfortunately, that will come at a cost much greater than if the FTC did its job and protected consumers nationwide.

In the InsideARM article about the MO suit Portfolio claims to have a “good relationship” with the MO AG and they’re complaining about no notice of the lawsuit.  If you read my complaint, you can see that they IGNORE communications even from me and I’m known to publish my collection experiences.

And exactly WHY should they have received advance notice?

So they can resolve the complaints with the AG and CONTINUE to screw people?

That’s exactly what usually happens.  Long-time readers might recall my suit against American Agencies in 2003, their dismissal based on PERJURY by Experian’s Kimberly Hughes and the FTC investigation.  Of course the FTC did NOTHING whatsoever to stop their illegal collection practices and as a result, I keep getting reader complaints about American Agencies. 

American Agencies recently even ignored a cease and desist mailed certified and continually threatens and harasses people for OLD debts that are completely undocumented and often fraudulent.

Thanks FTC!