Consumer Law
Caveat Emptor 
Law, politics, news, and analysis from a consumer lawyer's point of view.
Post Frequency: 2.5/day Last Entry: November 18, 2009 at 10:10:27 Recent Entries: 817
By Sam Glover, Esq.
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More Consumer Rights On the Way?
Posted on November 18, 2009A new report from the Government Accountability Office (GAO) urges legislators to revise the Fair Debt Collection and Practices Act (FDCPA) to give consumers more rights. Debt defaults are at the highest level in 18 years, which has presumably led to more people than ever being contacted by debt collectors...
TCF Bank To Curb Overdraft Fees
Posted on November 16, 2009Jumping ahead of proposed federal legislation, TCF Bank is attempting to curb its own overdraft fees, starting early next year. Under the current system, customers can get hammered with multiple overdraft fees in the same day once their balance drops below zero...
Americans for Financial Reform and the Showdown in Chicago
Posted on October 22, 2009The movement for consumer justice has gotten bigger and stronger, and if you?re in Chicago next week you can experience it firsthand. Americans for Financial Reform (AFR), a big coalition of which AFFIL is a member, is organizing a series of demonstrations on October 25 ? 27...
The New Debtors? Prison
Posted on October 21, 2009Debtors’ prison was supposedly eliminated in the United States in the 19th century, but in the 21st, people are still being arrested and tossed into jail for debts. It just takes an extra step these days. This morning, I sat in court and watched a debt collector get six bench warrants for debts under $1,000...
White House on the Proposed CFPA
Posted on October 09, 2009White House economic adviser Austan Goolsbee on the proposed Consumer Financial Protection Agency: (via Consumerist)
Reverse Mortgages Threaten Seniors? Wealth
Posted on October 09, 2009A new report from the National Consumer Law Center explains in detail how ?[a]buses and abusers from the subprime mortgage industry have begun showing up in the reverse mortgage market, putting at risk the equity and savings of millions of seniors.? (Report is here (pdf); press release is here (pdf)...
Overdrafts Generate Big Bucks For Banks
Posted on October 07, 2009An estimated 45% of the country’s banks make more from overdraft fees than they do from credit card fees(!). They will generate $27 billion in covering overdrafts on checking accounts this year. Proposed legislation, however, may at least put in dent in that healthy source of bank revenue...
Stop Telemarketing Calls (and Sue if They Keep Calling)
Posted on October 05, 2009If you do not already know about the National Do Not Call Registry, hie thee hither and put your name down. Once you are on the registry, telemarketers may not call you for five years. There are a couple of exceptions. Businesses may call you for 18 months after you have bought something from them [...
Link Roundup, week of 9.21.09
Posted on September 25, 2009Here are an assortment of juicy consumer links I haven’t had time to write about: Old Debts Under $100 Don’t Matter Under FICO ‘08 | Consumerist Bank Of America Reaches Out To Angry YouTube Star | Consumerist Congress Seeks To Move Up Credit Card Act Implementation To December 1st | Consumerist Fight begins over new consumer protection agency | [...
Strategic Mortgage Defaults on the Rise
Posted on September 25, 2009Strategic default—walking away from your home and mortgage—is getting more common. The interesting part is who is doing it: according to a recent study, people with good credit. For such consumers, strategic default may be the best of a range of bad options...
Three Debt Assistance Companies Sued by the Minnesota Attorney General
Posted on September 24, 2009The Minnesota Attorney General took action against three companies that promised to lower customer’s interest rates on credit cards for high fees. Swanson filed suit against Priority Direct Marketing, Clear Financial Solutions, and Moneyworks, LLC...
FDPCA & FCRA Lawsuits On the Rise
Posted on September 23, 2009The number of FDCPA and FCRA lawsuits filed in 2009 is well ahead of both 2008 and 2007. In July 2009, the 5000th suit was filed. In 2008, that benchmark was not hit until the second week of October; in 2007 it took until early December. So what is behind the surge? Here are my best [...
Debt Collection Cheatsheet
Posted on September 17, 2009The FTC has a great, four-page overview of consumer rights relating to debt collection. Some of their tips include: Debt collectors can only contact you between the hours of 8AM and 9PM. If you want to stop debt collectors from contacting you, you must make a request in writing...
Money, Credit, and the Law ? Know Your Rights
Posted on September 17, 2009That?s the title of a valuable new video narrated by Professor Richard Alderman, director of the Center for Consumer Law at the University of Houston Law Center. The video, consisting of easily digestible short chapters, provides help managing personal finances, dealing with credit problems and debt collectors, responding when sued by a creditor, seeking credit counseling, [...
University of Minnesota Freshmen Will Learn Financial Literacy
Posted on September 09, 2009The University of Minnesota will require all 5,400 incoming freshmen to attend a session on financial literacy. The school intends the session to be a “fun” one, with advice from older students. /* U of M offering incoming students advice on financial literacy | MPR
Practical Effects of NAF?s Exit From Arbitration
Posted on September 09, 2009National Arbitration Forum’s recent withdrawal from consumer arbitrations has cast a dark shadow on the use of arbitration as an alternative dispute resolution process and created ripples throughout the system. For example, Bank of America has dropped its arbitration requirement for all consumer transactions...
Debt Collectors Can Still Use Robocalls
Posted on September 03, 2009As of September 1, 2009, telemarketers cannot make prerecorded commercial calls to customers without obtaining written permission in advance. Debt collectors, however, do not fall under the new FTC rule, because their calls are apparently “informational messages...
Cash for Dishwashers!
Posted on September 03, 2009The government is rolling out another stimulus package this fall—and energy-efficient appliances are the latest to get subsidized. The new program will authorize $50-$200 rebates for consumers who purchase new, energy-efficient machines. (But consumers will not have to turn in their old machines...
Support the Small Businesses You Love
Posted on September 02, 2009When the economy goes sour, big businesses get all the attention and government money. But I am far more concerned with keep my favorite coffee shop and restaurant open, and making sure my handyman stays in business. I could care less whether Bank of America goes bankrupt...
Consumer Complaints in 2008: the Top 10
Posted on September 01, 2009The National Associaion of Attorneys General released their list of the top 10 sources of consumer complaints for 2008, and the winner is: debt collectors! No surprise there, after all, what other profession has been the bane of the poor since before Christ? Evil enough that Shakespeare took time to write about one in Venice...
Private Student Loans: A Last Resort That?s Too Often Used First
Posted on August 31, 2009Private student loans are more expensive, riskier, and come with fewer borrower protections than federal student loans. Nevertheless, almost two-thirds of the undergraduates who took out private student loans during the 2007-2008 school year did so without first obtaining the maximum federal loans for which they were qualified...
Federal Trade Commission Accepting Public Comments on Debt Collection Litigation
Posted on August 27, 2009On Tuesday, the FTC will hold a free roundtable in San Francisco, open to the public, on debt collection litigation and arbitration. The FTC is seeking public comments in advance of the event, and some of the existing public comments are, well, interesting...
Debt Collection Abuse on Display
Posted on August 21, 2009New York Attorney General Andrew Cuomo sues some of the most abusive debt collectors. The first consumer did not even owe the debt, but ended up paying $900 just to make the abuse stop! Embedded video from CNN Video This kind of behavior is why the Fair Debt Collection Practices Act exists...
Wells Fargo Sued For Reducing Home Equity Credit Lines
Posted on August 21, 2009In Illinois class action complaint (PDF), a homeowner alleges Wells Fargo violated federal regulators’ warnings by reducing credit limits on all accounts in a geographic area without assessing the value of the actual houses. The homeowner accuses Wells Fargo of using “unreliable or inaccurate analyses” to determine property values—using computer models to predict home values—rather than [...
Bankruptcy: The Best Argument For a Public Option
Posted on August 21, 2009A recent study published in the American Journal of Medicine (PDF) reviewing personal bankruptcies found that medical bills contributed to 62.1% of all bankruptcies in 2007; 92% of these debtors had medical debts over $5,000. The rest met criteria for bankruptcy because they had lost significant income due to illness, or mortgaged a home to [...
Clunker Problems
Posted on August 20, 2009Under the Cash for Clunkers program, dealers give buyers an instant rebate, then the dealer gets compensated by the government. The government is currently overwhelmed by the number of dealer requests and is having problems processing the requests quickly...
New Credit Card Rights For Consumers
Posted on August 20, 2009Starting today, credit card holders have more rights: More time to pay. Credit card companies have to mail bills 21 days in advance of the billing date. More time to reject changes. Card holders now have up to 45 days to reject rate increases. More time to pay off existing balances...
Clunkers Still = Cash
Posted on August 19, 2009Regardless whether you are for or against the controversial “Cash for Clunkers” program, it just received an additional $2 billion dollars from the government—enough cash to fund it at least through September. If you want to take advantage of the rebates, here are some things to pay attention to: Act fast...
Debt Collection Scammers Often Worse Than the Real Thing
Posted on August 17, 2009The Better Business Bureau (BBB) has put out an emergency alert regarding bogus debt collectors that have recently been praying on consumers. The fake debt collectors are often just as nasty as real debt collectors can be, if not worse. If you are contacted by a debt collector and think it is a scam, here are [...
Insurance Whistleblower Questions Industry?s Trustworthiness
Posted on August 13, 2009Former Cigna executive Wendell Potter says the insurance industry is playing dirty in an effort to manipulate public opinion. He said “I know from personal experience that members of Congress and the public have good reason to question the honesty and trustworthiness of the insurance industry...
Bank of America Drops Mandatory Arbitration Clause
Posted on August 13, 2009Bank of America just announced that it will no longer require consumers to arbitrate disputes concerning credit cards and other consumer accounts. Great news! The collapse of pre-dispute, mandatory binding arbitration continues. Hopefully other credit grantors will follow suit...
Lenders Drop the Ball on Refinancing Plan
Posted on August 06, 2009The government’s “Financial Stability Plan” is still viable, but the Treasury Department admits that only a fraction of people eligible are receiving new mortgages. Only 9% of eligible borrowers have received modified mortgages. The biggest offenders? Wells Fargo only modified 6% of their loans, Bank of America only modified 4%...
Consumer Complaints Up, But Resources Are Down
Posted on August 05, 2009The latest survey of front-line consumer agencies shows that while complaints went up, the resources to help consumers went down. 62% of the agencies reported that they received more complaints in 2008 than in 2007, and 47% of the agencies suffered budget cuts just prior to or during the survey period, with one being eliminated [...
Debt Collectors and Wrong Numbers: How to Handle a Case of Mistaken Identity
Posted on August 05, 2009Debt collection is something that everyone has to deal with. Case in point: a debt collector once left a message on my mom’s answering machine, where I had not lived for eleven years. My credit report was squeaky clean—I checked—but apparently there is another Sam Glover out there with worse luck...
Served By a Debt Collector? What To Do Next
Posted on August 04, 2009Getting served with a lawsuit is one of the more upsetting things that can happen to you. When a process server hands a summons and complaint to you or to someone “of suitable age and discretion” who answers your door, they are dragging you into the legal system...
Foreclosure Scams: A Growth Industry
Posted on August 03, 2009The unresponsiveness of mortgage servicers to the millions of homeowners facing foreclosure is a national scandal. One consequence of this hasn?t received as much attention as it deserves. As growing numbers of desperate homeowners are unable to get the help they need from their loan servicers, more and more are succumbing to the aggressive sales [...
Foreclosure Relief Law Project seeks to stop Minnesota foreclosures
Posted on July 31, 2009Mortgage loan modifications are hard to come by, especially since banks are foreclosing before consumers have a chance to get a modification. In an effort to halt foreclosures in Minnesota so that consumers can get modifications, the Foreclosure Relief Law Project has filed a class action on behalf of homeowners, and asked the Minnesota U...
Kucinich right on arbitration, wrong on courts
Posted on July 30, 2009Dennis Kucinich and his House Domestic Policy Subcommittee just released a report on arbitration abuse in the National Arbitration Forum (PDF). In the report, the subcommittee stated that “[c]onsumer arbitration lacks the safeguards that have been designed into our judicial system by our Constitution, by state and federal statutes, and by centuries of judicial decisions” [...
Bankruptcy lawyers succumb to economy-induced stress
Posted on July 29, 2009In its monthly newsletter, the National Association of Consumer Bankruptcy Attorneys mentioned that several bankruptcy attorneys recently committed suicide, had heart attacks, or gave up on bankruptcy practice entirely to get away from the stress. Consumer rights lawyers, including bankruptcy attorneys, see some of the worst effects of the recession...
Win money with physics
Posted on July 28, 2009Winning guessing games may not be a valid retirement plan, but it won’t hurt the family finances. In this video, a physics teacher gives a lesson on how to improve your odds at “how many candies are in this jar” guessing games. How to shark a ‘guess the number of M&Ms in a jar’ contest… | [...
Payday loans prove irresistable, even to those who know better
Posted on July 28, 2009Payday loans are small, short-term, high-interest loans. Most are less than $400, with a term of two weeks or less. In exchange, the consumer generally pays $15 for every $100 borrowed, or a 360% APR. (Even high-interest credit cards generally charge less than 30% APR...
Credit score basics
Posted on July 23, 2009All the information out there on credit scores can be confusing. At the heart is the FICO score, which is what lenders use to determine your riskiness as a borrower. Here are the main elements of the FICO score: Payment history ? Account payment information on specific types of accounts you may have, such as credit cards, [...
AAA drops consumer debt arbitrations, too!
Posted on July 22, 2009Following on the heels of National Arbitration Forum’s agreement to stop handling consumer debt arbitrations, AAA said they will also bow out “until new guidelines are established” (possibly an allusion to the industry’s call for minimum standards in lieu of banning mandatory, pre-dispute, binding arbitration)...
National Arbitration Forum awards may be unenforceable
Posted on July 21, 2009The Minnesota Attorney General’s lawsuit against National Arbitration forum alleges that NAF is “in cahoots” with one of the largest debt collection law firms in the United States, Mann Bracken. Mann Bracken, un-coincidentally, is also one of NAF’s best clients...
Nat?l Arbitration Forum sued, agrees to stop handling consumer debt cases
Posted on July 20, 2009The Minnesota Attorney General sued National Arbitration Forum (PDF) last week, accusing NAF of colluding with creditors and debt collectors to screw consumers. At a press conference, AG Lori Swanson said “[t]his is a classic case of the little guy getting stepped on by fine-print contracts...
FTC helping consumers avoid foreclosure rescue scams
Posted on July 15, 2009Better late than never. Foreclosure rescue scammers claim they can stop foreclosure and save homes. They can’t. This has been going on for a while (and may be on the wane, actually), but the FTC has decided to make it a prime issue. Here is their short video introducing the problem...
Debt collector to pay $32,000 under the Fair Debt Collection Practices Act
Posted on July 14, 2009Minnesota debt buyer and collector Debt Equities, LLC, must pay nearly $32,000 to resolve a Fair Debt Collection Practices Act lawsuit in Minnesota. Earlier this year, Debt Equities offered judgment for $15,000 (PDF). Just today, Magistrate Judge Keyes ordered Debt Equities to pay an additional $16,700...
A look inside a check cashing and payday lending businesses
Posted on July 13, 2009An amusing and terrifying look inside two shady types of businesses that will fleece you every way they can, from check cashing fees to postage for a premium. As Ben Popken says “I can’t wrap my mind around the idea of paying someone for my own money...
A look inside a check cashing and payday lending business
Posted on July 13, 2009An amusing and terrifying look inside two shady types of businesses that will fleece you every way they can, from check cashing fees to postage for a premium. As Ben Popken says “I can’t wrap my mind around the idea of paying someone for my own money...
Link roundup, week of July 12
Posted on July 12, 2009Lots of credit card news this past week, plus a few other highlights and great tips: Credit card companies are jacking up fees (again) as consumers pay down debt | Alpha Consumer Figure out how long you will be in debt (seriously, do it; you may be shocked) | Federal Reserve Board Back on the wagon already, Morgan [...
U.S. consumer spending visualized
Posted on July 12, 2009How The Average U.S. Consumer Spends Their Paycheck | Visual Economics (via BoingBoing)
Consumer loan defaults still rising, will lead to greater abuses of consumers
Posted on July 07, 2009More consumers are falling behind in their bills. 6.6% of all credit cards are more than 30 days late, and delinquencies tracked by the American Bankers Association are the highest since it began tracking them in 1974. The rise in defaults—which is really not news, at this point—will inevitably lead to an increase in debt collection [...
Link roundup, week of July 5
Posted on July 06, 2009When I get busy, quality links tend to pile up in my Google Reader queue. Here are some great news items I have not gotten around to blogging about: Researchers can guess your social-security number from public information like your birthdate and birth location | Red Tape Chronicles Young adults dispute Suze Orman’s claim that young people today “have [...
Reverse Mortgages: Trouble Brewing
Posted on July 02, 2009In recent years, the Office of the Comptroller of the Currency (OCC)? the main federal regulator of the nation?s biggest banks ? has seemed concerned with consumer protection only when it was acting aggressively to protect ?its? banks from the prospect of being sued by state attorneys general for their predatory practices...
Sharing passwords post-mortem
Posted on July 02, 2009Cory Doctorow’s post on sharing passwords after death was timely for me. My wife and I are currently working on our own wills and estate plans, and wrestling with how to ensure we are able to access one another’s digital information. Like Doctorow, our digital information is locked up safely in encrypted filesystems...
Mortgage modification: what you can and cannot get
Posted on July 01, 2009The government and the banks say consumers are getting mortgage modifications, while the numbers and consumer advocate say otherwise. Minnesota business lawyer Nathan Brandenburg took a stab at unraveling the confusion which may be part of the reason why consumers are not getting the modifications they want...
Tips for refinancing your mortgage
Posted on June 30, 2009Bad news: property values are way down, to the point where many people are sitting on mortgages at or above what they paid for their house. Good news: mortgage rates are low, making it a great time to refinance. You can also install energy efficient appliances to put some money in your pocket...
NY AG shuts down a particularly abusive debt collector
Posted on June 24, 2009How would you like to get a call like this, just because you are behind on your credit cards? “Hello, this is Investigator Brook Carlson from the Warrant Division. This is the last time I am going to attempt to contact you,” the caller said in one message...
Save big on your cable bill
Posted on June 22, 2009Cable companies, perhaps more than any other product providers love to entice new subscribers with new packages at low rates. Existing customers tend to get nothing—other than frustrated. Maybe that has changed. I use Comcast—for cable ($60/month) and internet service ($45/month)...
Consumer Financial Protection Agency must have teeth and be flexible
Posted on June 18, 2009Earlier this week, President Obama announced his plan to create a Consumer Financial Protection Agency as part of his financial reform package. It is a great idea, and I hope it will succeed. Why we need it If you buy a sports car, you are not likely to accept a station wagon when you go to pick [...
Arbitration reform cannot come soon enough
Posted on June 17, 2009In case you missed it, NPR has a really great story on why we need arbitration reform. The piece starts out with the story of Jamie Leigh Jones a 20-year-old Halliburton/KBR employee in 2005, who was in Iraq for only four days before she was brutally gang raped by fellow employees...
Sun Sentinel shines on AFFIL
Posted on June 15, 2009This is a great week for AFFIL because our friend Denise Richardson devoted an entire column to us at the Florida Sun Sentinel. (Thanks again Denise!) You can see her column here. Coincidentally, a while back Sam asked me to write a ?what AFFIL is up to? blog post, and lucky for me, Denise has [...
Avoid utility charges that are not yours
Posted on June 10, 2009Never assume the next tenant will put utilities in their own name. Or if you move out and leave behind a roommate or sublease to someone, never assume they will do it, either. When you move, make sure you call your utility providers to let them know you are moving and that they should remove your [...
Rental property foreclosures affect tenants, too
Posted on June 10, 2009Local channel KARE 11 on the effect of rental foreclosures on tenants. This video features HOME Line, a Minnesota tenant advocacy hotline doing great work to help tenants dealing with their landlord’s foreclosures. Related posts:Form letters for tenantsHOME Line offers eight useful forms for Minnesota tenants on...
Debt-management firms are not working for you
Posted on June 09, 2009Thinking of using a debt-management firm? Think again. These services don’t help you as much as you think. Many of these firms are not helping as much as their subscribers think—sometimes at least half of what the customers pay goes to administrative fees—money that is never paid on the customer’s behalf...
Credit card eliminations spike
Posted on June 08, 2009The credit card industry is purging accounts, shutting down just over 19% of their accounts in the past year. As you can see, that is a huge increase over past rates. And this is on top of all the credit limit reductions (not to mention lines of credit)...
New contributor: Randall Ryder, consumer rights law clerk
Posted on June 08, 2009Randall Ryder just graduated from the University of Minnesota Law School. During his third year, he was my student teacher in the Maynard Pirsig Moot Court program. He is studying for the Minnesota bar exam, helping me represent consumers, and trying to salvage a bit of summer vacation, I imagine...
Caveat Emptor gets a facelift
Posted on June 07, 2009It has been a little over a year since Caveat Emptor’s last redesign, but I was feeling like it was time for a change. Hope you like the new look; it makes things easier for me on the back end. I am sure it will change over the next few weeks while I tweak the [...
Scammers getting more sophisticated
Posted on June 05, 2009Watch this video for a scary look at how sophisticated modern scammers and phishers have become. Related posts:Identity theft at the ATM Related posts:Identity theft at the ATM
Judge Slaps Ameriquest Hard For Selling Mortgage, Then Pretending To Still Own It
Posted on June 01, 2009My monthly column for Consumerist: Judge Slaps Ameriquest Hard For Selling Mortgage, Then Pretending To Still Own It | Consumerist Related posts:Former Countywide Employee Arrested For Stealing, Selling Customer IdentitiesJudge Rules That Early Termination Fees Are ILLEGAL In CaliforniaHow short selling works Related posts:Former Countywide Employee Arrested For Stealing, Selling Customer IdentitiesJudge Rules That Early Termination Fees Are ILLEGAL In CaliforniaHow short selling works
Subscribe to Caveat Emptor
Posted on June 01, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Credit card companies: they?re finally getting f***ed back
Posted on May 29, 2009Happy Friday! New Credit Card Laws - watch more funny videos Related posts:Credit card companies hike rates and cut credit lines10 Aggressive Tactics to Turn the Tables on Credit Card CompaniesCredit card companies’ data mining tricks Related posts:Credit card companies hike rates and cut credit lines10 Aggressive Tactics to Turn the Tables on Credit Card CompaniesCredit card companies’ data mining tricks
Credit CARD Act Goes Far Beyond the Fed?s Credit Card Regs
Posted on May 28, 2009According to an editorial in last Friday?s Washington Post, the credit card bill that the President signed into law that afternoon ?isn?t really needed? because it is ?awfully similar? to the regulations on credit cards that were issued by the Federal Reserve last December...
Congress calls out FreeCreditReport.com
Posted on May 27, 2009FreeCreditReport.com is sort of an “honest” scam. “Hey, we’re FreeCreditReport.com! Nah, you have to pay for your free credit report. Yeah, but the name is FREECreditReport.com!!! But you totally have to pay. For your FREE FREE FREE credit report...
Seth Green on financial security and living with less
Posted on May 22, 2009Un-Broke: The Seth Green Cribs Edition - watch more funny videos Related posts:Green Mountain Coffee apparently unaware people use “computers” to buy things on “the internet” Related posts:Green Mountain Coffee apparently unaware people use “computers” to buy things on “the internet”
Beware false charities
Posted on May 20, 2009Some scammers have no shame, and will take advantage of your kind and giving nature for their own personal gain. Numerous shysters have seen the advantage of pretending to be a charity in order to get their grubby hands on your sympathetic cash. But today the FTC is cracking down...
Credit card agreements must use 12-point font
Posted on May 20, 2009As someone who reads dozens of credit card agreements every month, this may be the most-welcome part of the new credit card legislation: (d) Minimum type-size and font requirement for credit card applications and disclosures. -All written information, provisions, and terms in or on any application, solicitation, contract, or agreement for any credit card account under [...
Senate Passes Bill to Restrict Credit Card Practices
Posted on May 20, 2009Senate Passes Bill to Restrict Credit Card Practices | New York Times Related posts:House passes the Credit Cardholders’ Bill of RightsSenate Passes Bailout Plan; House May Vote by FridayCredit Cardholders Bill of Rights Passes Out of Full Committee Related posts:House passes the Credit Cardholders’ Bill of RightsSenate Passes Bailout Plan; House May Vote by FridayCredit Cardholders Bill of Rights Passes Out of Full Committee
Why is Obama silent on bankruptcy reform?
Posted on May 19, 2009The Red Tape Chronicles asks whether Obama is “backing the wrong horse” by championing credit card reform while ignoring bankruptcy reform that would allow bankruptcy judges to reduce mortgage loans in bankruptcy?just like they can do for all other debts...
Austan Goolsbee (Obama?s credit card advisor) interviewed by Consumerist
Posted on May 18, 2009(This is part 1 of a 4-part series.) Related posts:Credit Card Skimming: How thieves can steal your card info without you knowing itObama Losing Voters Over FISA SupportObama violating copyright laws right and left Related posts:Credit Card Skimming: How thieves can steal your card info without you knowing itObama Losing Voters Over FISA SupportObama violating copyright laws right and left
Subscribe to Caveat Emptor
Posted on May 15, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Midnight hour at the Capitol
Posted on May 15, 2009A summary of legal legislation, with a focus on consumer bills. Midnight hour at the Capitol | Minnesota Lawyer No related posts. No related posts.
Link roundup
Posted on May 14, 2009Time to clean out my Google Reader queue. How to complain about: credit report errors | The Red Tape Chronicles Does it make sense to pay “points” upfront to lower your interest rate? Decoding the Mysterious Mortgage Points Game | Alpha Consumer What’s The New Credit Card Reform Bill All About? | Consumerist Stop fighting bankruptcy...
Rebalancing justice scales: New attention to old law helps consumers fight unfair debt-collection practices
Posted on May 14, 2009Rebalancing justice scales: New attention to old law helps consumers fight unfair debt-collection practices | MinnPost Related posts:Fake Debt Collectors Terrify ConsumersDebt collectors think consumers knowing their rights is “ominous”ABC News: National Arbitration Forum is selling justice Related posts:Fake Debt Collectors Terrify ConsumersDebt collectors think consumers knowing their rights is “ominous”ABC News: National Arbitration Forum is selling justice
Stephen Colbert takes on credit card reform
Posted on May 13, 2009The Colbert Report Mon - Thurs 11:30pm / 10:30c Credit Check colbertnation.com Colbert Report Full Episodes Political Humor Gay Marriage Related posts:Credit Card Skimming: How thieves can steal your card info without you knowing itCredit card companies hike rates and cut credit lines10 Things You Might Not Know About Your Credit Card Related posts:Credit Card Skimming: How thieves can steal your card info without you knowing itCredit card companies hike rates and cut credit lines10 Things You Might Not Know About Your Credit Card
Deal with your debt: file bankruptcy
Posted on May 11, 2009Bankruptcy is sometimes called a “financial weapon of mass destruction.” I think of bankruptcy more as a financial Project Genesis, because after the bomb goes off, you get a fresh start. Whether to file bankruptcy is a business decision, not a moral one...
Re-regulation on the Squawk Box
Posted on May 11, 2009This weekend I got embroiled in a discussion with someone who insisted that government regulation caused the economic meltdown. This person is not alone in believing that regulation is always a bad thing, and can only cause harm. At some point I realized that this was a silly debate to be having, sort of like whether or [...
Steps to Prevent Identity Theft, and What to Do if It Happens
Posted on May 08, 2009Steps to Prevent Identity Theft, and What to Do if It Happens | NYT Related posts:Identity theft at the ATMHow Outsourced Call Centers Are Costing Millions In Identity TheftCommentary: How to prevent the next Wall Street crisis Related posts:Identity theft at the ATMHow Outsourced Call Centers Are Costing Millions In Identity TheftCommentary: How to prevent the next Wall Street crisis
Rebuilding credit after bankruptcy
Posted on May 08, 2009According to Alex from Queercents, rebuilding credit is a seven-step process: Clean up your credit report Learn from your mistakes; do not repeat them (Carefully) apply for a secured credit card Or become an authorized user on your partner’s credit card Pay your bills on time Do not be in a hurry to incur more debt Be patient and research your options Alex [...
Deal with your debt: negotiate a settlement
Posted on May 07, 2009Once a debt is in default?meaning you stopped paying it?one option is to attempt to negotiate a settlement with the creditor. (You can try this before you go into default, but creditors are rarely willing to play ball until you prove your poverty?and before they rack up some more fees...
Banks spent $42.4 million to kill the cramdown
Posted on May 06, 2009Last week, the Senate put the proposed “cramdown” legislation to rest. That legislation would have saved 1.7 million homes, and $300 billion wasted on the foreclosure process. The banking industry was apparently not interested in $300 billion, though...
Deal with your debt; do not ignore it
Posted on May 05, 2009Nobody likes to talk about their debt. Not me, not you, not anybody. But your debts do not like to be ignored. As I wrote in my column for Consumerist yesterday , if you let your debts go into default and do nothing, it could end up hurting. Credit card companies in particular want you to [...
Forced Arbitration: You Can?t Sue Us For Discrimination
Posted on May 01, 2009Why you should support the Arbitration Fairness Act. Forced Arbitration: You Can’t Sue Us For Discrimination | Consumerist Related posts:Today Is Arbitration Fairness Day!Mandatory Binding Arbitration: The Worst Choose Your Own Adventure EverMandatory binding arbitration sucks (say 81% of Americans) Related posts:Today Is Arbitration Fairness Day!Mandatory Binding Arbitration: The Worst Choose Your Own Adventure EverMandatory binding arbitration sucks (say 81% of Americans)
Subscribe to Caveat Emptor
Posted on May 01, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Consumer Reports on the ShamWow
Posted on April 30, 2009If this is Consumer Reports trying to reach out to younger consumers, I like it. Related posts:Beware Free Credit ReportsCredit repair DIY: fix errors on your credit reportsCredit reports apparently generated by Flintstones technology Related posts:Beware Free Credit ReportsCredit repair DIY: fix errors on your credit reportsCredit reports apparently generated by Flintstones technology
Mann Bracken under fire in Atlanta
Posted on April 30, 2009Mann Bracken has been sued over 100 times in the last five years, giving the lie to partner William Bracken III’s claims that they do not tolerate harassing conduct. Click the picture above for Atlanta news station WSBTV’s investigative report into Mann Bracken’s collection practices...
The banking industry hates America
Posted on April 30, 2009Why would bankers oppose legislation that would save millions of homes and $300,000,000,000 of their money? They hate America. This is the only conclusion I can come to. The “cramdown” legislation would have enabled bankruptcy judges to modify home mortgages, which they used to be able to do, anyway...
Today Is Arbitration Fairness Day!
Posted on April 29, 2009Call your representatives and tell them mandatory binding arbitration sucks! Today Is Arbitration Fairness Day! | Consumer Law & Policy Blog Related posts:National Arbitration Forum thinks courts should just rubber stamp arbitration awardsPerpetual arbitration with National Arbitration Forum Related posts:National Arbitration Forum thinks courts should just rubber stamp arbitration awardsPerpetual arbitration with National Arbitration Forum
Payday lenders are corporate loan sharks
Posted on April 29, 2009A big part of the payday lending story that somehow does not get much play is the comparison to the loan sharks of the past and the historical animosity towards usury. The Salt Lake Tribune has a good story of the dangers of predatory lending, but even better is that it brings up these points...
48 hours left to save 1.7 million homes and $300 billion
Posted on April 28, 2009The word from AFFIL’s Partners in Washington is that the Senate will vote on Thursday on judicial loan modifications. Lifting the ban on these court-supervised modifications would save 1.7 million homes and $300 billion in home equity for neighbors of families facing foreclosure...
Contact your senator to save 1,700,000 homes and $300,000,000,000
Posted on April 28, 2009The government is trying to save 1.7 million homes and 300 billion dollars (PDF link) by restoring a power tool to bankruptcy judges: the power to modify home mortgages. Millions of home are worth much less than their mortgages. But those million plus homeowners could stay in those home?giving more money to the banks, which [...
Bankruptcy: knowing when to walk away
Posted on April 27, 2009When faced with large amounts of debt, many consumers first think about filing bankruptcy. But while bankruptcy may be the best option for some, it is not the only option. Consumers with only one or two accounts in default should consider dealing with those accounts, especially if they have been sold...
Landlord Asks Mother To Pay ?Early Termination Fee? After Son Fails To Honor Lease By Dying
Posted on April 26, 2009Words fail me. Landlord Asks Mother To Pay “Early Termination Fee” After Son Fails To Honor Lease By Dying | Consumerist Related posts:Judge Rules That Early Termination Fees Are ILLEGAL In CaliforniaT-Mobile early-termination fee lawsuit moves forward because mandatory binding arbitration clause unconscionableEarly termination fees endangered! Related posts:Judge Rules That Early Termination Fees Are ILLEGAL In CaliforniaT-Mobile early-termination fee lawsuit moves forward because mandatory binding arbitration clause unconscionableEarly termination fees endangered!
Credit Cardholders Bill of Rights Passes Out of Full Committee
Posted on April 22, 2009From NACA: “Here is a very quick update on credit card legislation. Just now the House Financial Services Committee passed the Credit Cardholders’ Bill of Rights by a 48 to 19 vote. According to Chairman Barney Frank (D-MA), the bill is expected to go to a full House vote next week! ...
Johnson, Rodenburg & Lauinger to pay $311,000 for FDCPA violations
Posted on April 21, 2009A jury in Montana awarded $311,000 last week to a Montana man who was sued by the debt collection law firm of Johnson, Rodenburg & Lauinger. JRL tried to seize his social security disability payments to satisfy a judgment for CACV, a debt buyer. The jury awarded $1,000 in statutory damages, $250,000 for the consumer’s [...
Folks losing homes dial 1-800; no one answers
Posted on April 16, 2009Too many consumers in trouble, too few resources to help them? Folks losing homes dial 1-800; no one answers | CNN Related posts:After Losing His Home, Man Trashes House, Spray Paints Message To BankSubprime rescue plan: few get “rescued”Obama Losing Voters Over FISA Support Related posts:After Losing His Home, Man Trashes House, Spray Paints Message To BankSubprime rescue plan: few get “rescued”Obama Losing Voters Over FISA Support
Debtors? prison returns to Florida
Posted on April 16, 2009I understand the need for courts to enforce their orders, but when hard times mean that a state like Florida is throwing thousands of people into jail just for failing to pay fines of a couple hundred dollars, something ain’t right. The problem, of course, is that state courts are strapped for cash along with everyone [...
After the Bank Failure Comes the Debt Collector
Posted on April 16, 2009After the Bank Failure Comes the Debt Collector | NY Times Related posts:In Tough Times, a Debt Collector Sees the PainDebt collector sued for hounding sick childI?m going to collect the money from you dead or alive, says debt collector Related posts:In Tough Times, a Debt Collector Sees the PainDebt collector sued for hounding sick childI?m going to collect the money from you dead or alive, says debt collector
How to get a free credit report (that is actually free)
Posted on April 15, 2009To get a free credit report, visit annualcreditreport.com. Stay away from the misleading “free”creditreport.com, which is somehow still doing business despite its incredibly misleading name. Related posts:Make Sure Your Free Credit Report Is Actually FreeGet credit score estimates to go with your free credit reportMortgage firm Countrywide, in response to alleged data breach, offers free credit [...
Subscribe to Caveat Emptor
Posted on April 15, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Banks making (more) predatory loans with taxpayers money
Posted on April 14, 2009Citibank, U.S. Bank, Bank of America, Wells Fargo, and Pacific Capital Bancorp have been called out by the Congressional Oversight Panel for using taxpayer money to turn around and rip off taxpayers. Essentially, taxpayers end up paying twice: once to the government, once to the banks...
More litigants lawyer-less during the recession
Posted on April 10, 2009According to the New York Times, the number of people representing themselves during the recession is way up, and that can cause problems: Judges complain that people miss deadlines, fail to bring the right documents or evidence and are simply unprepared for legal proceedings...
Congress thinks a 391% APR is a-okay
Posted on April 09, 2009Last week, the House Subcommittee on Financial Institutions and Consumer Credit held a hearing on H.R. 1214, the Payday Loan Reform Act. AFFIL and our Partners are calling this the ?Payday Lender Protection Act.? It?s the first bill that AFFIL has ever officially opposed (PDF link)...
Citibank offers $5,000 loan to defendant in Citibank collection lawsuit
Posted on April 07, 2009Allen Harkleroad is an angry debtor who blogs about his experience dealing with debt collectors. One of his creditors, Citibank, sued him on a defaulted credit card debt. After they started the lawsuit, though, Citibank offered to loan Allen another $5,000...
Credit Card Skimming: How thieves can steal your card info without you knowing it
Posted on April 07, 2009Fantastic gallery of card skimmers. Credit Card Skimming: How thieves can steal your card info without you knowing it | NetworkWorld (via Consumerist) Related posts:10 Things You Might Not Know About Your Credit CardCongress finally allowed consumers to speak out on credit card industry abusesHSBC will not give you their credit card agreement until after you [...
Obama violating copyright laws right and left
Posted on April 03, 2009It isn’t really his fault; many people unintentionally violate copyright laws every day. But if the President can’t give a simple gift without breaking the law, the system is broken. When British Prime Minister Gordon Brown visited the U.S...
2 million jobs lost in 2009
Posted on April 03, 2009This is for 2009. As in three months. Oof. 2 million jobs lost in 2009 | CNN Related posts:7.5 million homeowners find selves ‘underwater’What would you do if you lost your job?Bank of America to pay two Countrywide execs $19 million for running company, economy into the ground Related posts:7...
86 Federal Civil (FDCPA and FCRA) Lawsuits Against Mann Bracken Since January 2007
Posted on April 03, 200986 Federal Civil (FDCPA and FCRA) Lawsuits Against Mann Bracken Since January 2007 | Designer Today Related posts:Briefs filed in FCRA caseUnifund averages nearly 5,500 collection lawsuits a year in California aloneDebt firms “slammed” by consumer lawsuits (according to Law...
1 In 10 Americans Are On Food Stamps
Posted on April 02, 20091 In 10 Americans Are On Food Stamps | Consumerist Related posts:Stretch Your Food Dollar: Rethinking MeatLatest Gallup Poll Shows 43% of Americans Pays Credit in FullNational Arbitration Forums rubber-stamps a(nother) bogus claim Related posts:Stretch Your Food Dollar: Rethinking MeatLatest Gallup Poll Shows 43% of Americans Pays Credit in FullNational Arbitration Forums rubber-stamps a(nother) bogus claim
New York Times: Walking Away From Your Mortgage, Not So Bad After All
Posted on April 02, 2009New York Times: Walking Away From Your Mortgage, Not So Bad After All | Consumerist Related posts:More on walking away from your mortgageNew York Couple Harassed by Creditors Trying to Collect Debt Their Dead Son OwedIn Tough Times, a Debt Collector Sees the Pain Related posts:More on walking away from your mortgageNew York Couple Harassed by Creditors Trying to Collect Debt Their Dead Son OwedIn Tough Times, a Debt Collector Sees the Pain
Payday lending coincides with increased bankruptcy filings
Posted on April 02, 2009But is payday lending a cause of increased bankruptcy filings? In a paper from last September, Professors Paige Skiba (Vanderbilt Univ. Law School) and Jeremy Tobacman (Univ. of Pennsylvania), say yes for Chapter 13 reorganizations, by about 2.5%. They also found that for payday loan customers filing Chapter 13 bankruptcies, a whopping 11% of their [...
Student Loan Nightmare: Help Wanted
Posted on April 01, 2009“[W]hy aren?t student loans receiving the same attention, same care and forgiveness as every other loan in America?” Student Loan Nightmare: Help Wanted | AC360 Related posts:Student loan “crisis” just an invention?Sure you owe somebody for your mortgage loan, but who?Resolution #3: don’t overstate your income on a loan application Related posts:Student loan “crisis” just an invention?Sure you owe somebody for your mortgage loan, but who?Resolution #3: don’t overstate your income on a loan application
Subscribe to Caveat Emptor
Posted on April 01, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Are we a nation of deadbeats?
Posted on April 01, 2009Yesterday evening, on MPR’s Marketplace, John Dimsdale reported on private equity firms that may buy up bad debts under the government’s economic recovery plan. In the report, he referred to the business of servicing bad credit card debts as “collecting payments from deadbeat borrowers...
The End of Excess: Is This Crisis Good for America?
Posted on March 30, 2009The End of Excess: Is This Crisis Good for America? | Time Related posts:Anatomy of a Meltdown: The Credit CrisisCommentary: How to prevent the next Wall Street crisisCrisis rooted in bankruptcy law Related posts:Anatomy of a Meltdown: The Credit CrisisCommentary: How to prevent the next Wall Street crisisCrisis rooted in bankruptcy law
Coping with garnishment
Posted on March 27, 2009Undoubtedly, one of the most frustrating aspects of debt collection for consumers is having their bank accounts garnished (or levied) by creditors. It is a process that is often misunderstood and my goal is to provide general information that I hope is helpful...
Understanding the federal bailout
Posted on March 27, 2009It all makes sense now… (Click for the video.) Related posts:Foreclosed and nowhere to go? Stay putWhy Isn’t the Bailout Working?House passes bailout Related posts:Foreclosed and nowhere to go? Stay putWhy Isn’t the Bailout Working?House passes bailout
Dateline takes on the debt collection industry
Posted on March 27, 2009Tonight, Dateline took a good, hard look at the debt collection industry. Dateline went the extra mile to show that, for many collection agencies, abusive tactics are the rule, not the exception. , despite agency for promoting abusive collectors (”call the boss at home, that’s my favorite thing to do” & “you can’t swear, [...
How not to defend a debt collection lawsuit
Posted on March 26, 2009When I worked as a collection attorney, I would see the same erroneous defenses over and over again. Here are some of the most common: You don’t have a signed contract Somewhat surprisingly, creditors are not required to produce a signed contract to prevail in court...
3 questions for Todd Murray
Posted on March 26, 2009Todd is new here. (This post is late, because he has already been posting about debt collection all week.) 1. Who are you and what do you do? I am a consumer rights lawyer. I primarily represent consumers sued by debt collectors, homeowners facing foreclosure, and victims of abusive debt collection...
Overdraft loans drive everyone crazy
Posted on March 26, 2009Above, watch the trailer for Karney Hatch’s “Overdrawn!”, a documentary which chronicles his fight against absurd overdraft fees. In his journey, Hatch ends up talking with several AFFIL Partners as well as Ralph Nader. He currently has an action posted on Change...
Capital One jacking up interest rates
Posted on March 25, 2009Related posts:Capital One charges 70% interest?Banks keep credit card interest rates high despite low Fed ratesPayday lending interest rates forced down in Ohio
90% of life (and defending debt buyer lawsuits) is just showing up
Posted on March 25, 2009Although skeptics argue that Woody Allen’s famous observation over-simplifies the path to success, consumers sued by debt buyers will benefit from following Woody’s advice. Of course, a debt buyer is a business that purchases debt from the original creditor and then sues consumers to collect the debts...
Do?s and don?ts of dealing with debt collectors
Posted on March 24, 2009There are too many to list, but here are a couple of the most important ones: Don’t tell a debt collector where you bank or where you work Debt collectors are always in hot pursuit of bank and employer information because bank and wage garnishments are easy and inexpensive ways to collect a debt...
Freshbooks: painless customer service
Posted on March 24, 2009Freshbooks: painless customer service | Lawyerist Related posts:Government To Airlines: Improve Customer Service Or ElseRoll like a CEO; skip the customer service queue and go right to the topFormer Countywide Employee Arrested For Stealing, Selling Customer Identities Related posts:Government To Airlines: Improve Customer Service Or ElseRoll like a CEO; skip the customer service queue and go right to the topFormer Countywide Employee Arrested For Stealing, Selling Customer Identities
Tenant evicted even though she pays rent on time
Posted on March 24, 2009Tenant evicted even though she pays rent on time | CNN Related posts:Bad Credit? Why You Shouldn’t ‘Rent to Own’Man Sets Himself On Fire At Rent-A-Center After Receiving Too Many Late Payment NoticesLatest Gallup Poll Shows 43% of Americans Pays Credit in Full Related posts:Bad Credit? Why You Shouldn’t ‘Rent to Own’Man Sets Himself On Fire At Rent-A-Center After Receiving Too Many Late Payment NoticesLatest Gallup Poll Shows 43% of Americans Pays Credit in Full
There are no secret programs to get out of debt
Posted on March 23, 2009Consumer lawyers and collection lawyers agree about as often as Bill O’Reilly and Keith Olbermann. But one thing they do agree on is the dubious value of most for-profit companies that promise to get consumers out of debt. They go by many different names: credit counseling agencies, debt settlement companies, debt negotiators, etc...
Small print: why we need a Financial Product Safety Commission
Posted on March 23, 2009“In America, we don’t say ‘buyer beware’ when people are buying prescription drugs or when they’re concerned about lead paint in toys,” says Majority Whip Dick Durbin (D-Ill.), a cosponsor of a bill that would create a Financial Product Safety Commission, which would oversee mortgages, credit cards, and other financial instruments...
Minnesota Lawyer on anti-consumer attorney fee legislation
Posted on March 21, 2009Michelle Lore at Minnesota Lawyer picked up on my post about Minnesota DFL’ers out to eviscerate consumer protection laws. She included quotes from several Minnesota attorneys, who point out that in addition to being a dumb idea, the bill attacks the idea of a “private attorney general...
Another five mistakes homeowners make when facing foreclosure (Foreclosure Week)
Posted on March 20, 2009Another five common mistakes for homeowners in foreclosure. Related posts:Five common mistakes homeowners make during foreclosure (Foreclosure Week)Facing foreclosure? talk to a housing counselor (Foreclosure Week)The five (mental) stages of foreclosure (Foreclosure Week)
Wellstone economics: a few lessons we still need to learn (Foreclosure Week)
Posted on March 19, 2009Over the past few years, I’ve had the privilege of editing a collection of Senator Paul Wellstone’s floor speeches that he gave from 1991 to 2002. The book was published last fall by the North Star Press, and has a wonderful foreword by Minnesota Secretary of State Mark Ritchie...
Surviving the perfect economic storm: tent cities in America (Foreclosure Week)
Posted on March 19, 2009From the Library of Congress, we have a photographic collage of Hoovervilles (the tent cities that popped up around cities during the Great Depression). And now we have the Houses that Greenspan Built: (photo: Library of Congress) Mark Ireland is a consumer rights lawyer, and will be posting at Caveat Emptor until March 20, 2009...
Five common mistakes homeowners make during foreclosure (Foreclosure Week)
Posted on March 18, 2009The top ten mistakes that a homeowner makes when facing foreclosure. Related posts:Facing foreclosure? talk to a housing counselor (Foreclosure Week)The five (mental) stages of foreclosure (Foreclosure Week)What to do instead of waiting for a notice of foreclosure
Payday loans under fire in the Minnesota legislature
Posted on March 18, 2009There are two bills (HF0914 & HF1471) pending in the Minnesota legislature. HF0914 would eliminate payday loans entirely. HF1471 would impose some regulations on payday lenders and adds a private right of action for consumers, with attorney fees and costs...
Pay your bills with awesome
Posted on March 18, 2009This check is apparently from Randall Munroe, who draws the popular XKCD comic: Bill Payment Win | Fail Blog Related posts:Why DRM sucksWatching NBC shows online is awesome, but the ads are terribleMinnesota lawmakers consider three foreclosure bills Related posts:Why DRM sucksWatching NBC shows online is awesome, but the ads are terribleMinnesota lawmakers consider three foreclosure bills
Facing foreclosure? talk to a housing counselor (Foreclosure Week)
Posted on March 17, 2009If you are a homeowner facing foreclosure, do not rely on your Google skills or internet chat rooms for information. Instead, call 1-888-995-HOPE or go to the NeighborWorks America website. NeighborWorks was selected by the U.S. Congress and the President to administer a $360 million program to provide free, certified, and trained counselors to homeowners who [...
How to make a Black and Tan
Posted on March 17, 2009Happy Saint Patrick’s Day! A day that should be a national holiday. Now for some useful advice: Take 1 Take 2 Related posts:Free Christmas music from Amazon MP3Let’s make a dealTalk your way out of a ticket Related posts:Free Christmas music from Amazon MP3Let’s make a dealTalk your way out of a ticket
Business pursuing anti-consumer legislation in this economy?
Posted on March 17, 2009Business pursuing anti-consumer legislation in this economy? | Consumer Law & Policy Blog Related posts:Presidential candidates’ votes on 2007 consumer legislation (CL&P Blog crosspost)Poll: Politicians trusted more than business leaders on economyConsumer Protection Related posts:Presidential candidates’ votes on 2007 consumer legislation (CL&P Blog crosspost)Poll: Politicians trusted more than business leaders on economyConsumer Protection
Credit card companies hike rates and cut credit lines
Posted on March 17, 2009It’s tough to follow up on a post about how to make a Black and Tan, but I’ll give it a try. I was inspired to write by an interesting discussion over at the Consumerist about credit card rate hikes and credit line cuts. Many AFFIL members have written to us about this phenomenon, and [...
The five (mental) stages of foreclosure (Foreclosure Week)
Posted on March 16, 2009There are two parties in foreclosure: the homeowner and the lender. At any given time, either of these parties in foreclosure may be at one of the five stages of the foreclosure crisis as outlined below. If you are an attorney, housing counselor, family member, lender or the person in foreclosure, you need to quickly determine [...
Subscribe to Caveat Emptor
Posted on March 15, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor Related posts:Subscribe to Caveat EmptorSubscribe to Caveat EmptorSubscribe to Caveat Emptor
Guest blogging this week: Mark Ireland
Posted on March 15, 2009Mark Ireland, former Minnesota Assistant Attorney General, now staff attorney at the Housing Preservation Project, will be joining Caveat Emptor this week to blog about foreclosure. Mark’s bio after the jump. Mark Ireland graduated with honors from the University of Minnesota School of Law in 2000...
Link roundup
Posted on March 13, 2009Sprint Lies To FCC About Ripping Off Consumer Reporter | Consumerist FCC: Sprint can be judge and jury | The Red Tape Chronicles FTC fights FreeCreditReport.com with spoof ad | The Red Tape Chronicles Related posts:Friday link roundupLink roundupSunday link roundup Related posts:Friday link roundupLink roundupSunday link roundup
Defaults in Minnesota in 2008 increase 39% over 2007
Posted on March 13, 2009If the default numbers for Minnesota are any indication, debt collectors are falling all over themselves, suing everyone in sight. In 2007, a “mere” 36,000 defaults were filed. In 2008, that number jumped to just over 51,000. Some were responsible for more of those lawsuits than others...
Rise in foreclosures ?a shock?
Posted on March 12, 2009“February saw an unexpected jump in foreclosure filings as the weak economy puts more pressure on borrowers.” Rise in foreclosures ‘a shock’ | CNN Related posts:As Foreclosures EscalateU.S. bank failures almost certain to rise in next yearBankruptcy filings go way up in February Related posts:As Foreclosures EscalateU...
Gone in 60 seconds: 10 credit score myths
Posted on March 12, 200960-second video: Myths of credit | I Will Teach You to be Rich (via Lifehacker) Related posts:Free monthly credit score estimatesStore charge cards will drag down your credit scoreGet credit score estimates to go with your free credit report Related posts:Free monthly credit score estimatesStore charge cards will drag down your credit scoreGet credit score estimates to go with your free credit report
Attorney fee provisions about to be eviscerated
Posted on March 10, 2009Minnesota DFL’ers are inexplicably out to eviscerate Minnesota consumer protection laws. Representative Paul Thissen (DFL), Representative Dave Olin (DFL), and Senator Linda Schneid (DFL) have teamed up on HR 1410, a bill that would require judges to “take into consideration the reasonableness of the attorney fees sought in relation to the amount of damages awarded [...
Produce the note!
Posted on February 26, 2009Sometimes the court system actually works. The AP has an interesting article on homeowners who are forcing lenders to <gasp> produce the note?the proof the lender issued a mortgage. Apparently some people are having some success in delaying or stopping foreclosure by simply asking whomever is trying to foreclose to produce the original mortgage note...
Bailed-out bank enjoys concerts, dinners, parties
Posted on February 25, 2009Bailed-out bank enjoys concerts, dinners, parties | CNN Related posts:$1.6 billion went to bailed-out bank execsBailed-Out Banks Dole Out BonusesStocks slump despite bank rescue Related posts:$1.6 billion went to bailed-out bank execsBailed-Out Banks Dole Out BonusesStocks slump despite bank rescue
Bailout hearings
Posted on February 25, 2009February 25, 2009 | Dilbert.com Related posts:Poisonous spidersArbitration hearings roundupSenate credit industry hearings update Related posts:Poisonous spidersArbitration hearings roundupSenate credit industry hearings update
California passes 90-day Foreclosure Moratorium
Posted on February 25, 2009California passes 90-day Foreclosure Moratorium | CL&P Blog Related posts:California Foreclosure Law PassedForeclosure scammers busted in San DiegoMinnesota legislature passes Subprime Borrower Relief Act Related posts:California Foreclosure Law PassedForeclosure scammers busted in San DiegoMinnesota legislature passes Subprime Borrower Relief Act
Likely DOJ Nominee Has Long History of Lobbying Against Consumer Rights
Posted on February 25, 2009Likely DOJ Nominee Has Long History of Lobbying Against Consumer Rights | Watchdog Blog Related posts:AIG Was Spending Taxpayer Money Lobbying Against Mortgage RegulationNew Minnesota consumer website: Consumer Rights WatchNational Consumer Rights Litigation Conference in Portland, Oregon Related posts:AIG Was Spending Taxpayer Money Lobbying Against Mortgage RegulationNew Minnesota consumer website: Consumer Rights WatchNational Consumer Rights Litigation Conference in Portland, Oregon
House addresses foreclosure relief tomorrow
Posted on February 25, 2009One of the problems perpetuating the foreclosure crisis is the inability of lenders and borrowers to renegotiate those loans. Lenders don’t want to take care of vacant homes, and many borrowers could stay in their home if those ridiculous adjustable rates were locked into a reasonable fixed rate...
New feature: Gravatars
Posted on February 25, 2009You may be noticing the “Gravatar” icon now showing up in the comments, while some commenters have a picture or avatar in its place. A Gravatar is a globally-recognized avatar. Getting one is easy. Set up an account at gravatar.com, add the email addresses you use when you comment, and upload an avatar...
Non-lawyers and cheap ?legal services?: you get what you pay for
Posted on February 24, 2009Perhaps prompted by economy-related layoffs, or maybe just looking for extra income, a paralegal recently advertised “Simple Wills and Trusts-Only $50!” on Craigslist. The ad (no longer available) read, in part: I will draft your will and/or trust for only $50! I am a paralegal with over ten years of legal experience...
Speculators owned 60% of Florida county?s foreclosures
Posted on February 23, 2009Buried in an article about the “rocket docket” in Fort Myers, Florida is this quote: Sixty percent of the cases handled here involve homeowners who were speculators and out-of-towners. They don’t bother showing up for the court hearing, so the process is quick, and many are handled in seconds...
Identity theft at the ATM
Posted on February 23, 2009Embedded video from CNN Video Related posts:How Outsourced Call Centers Are Costing Millions In Identity TheftForeclosed and nowhere to go? Stay put700,000 Central Collection Bureau, Inc., accounts vulnerable to identity theft Related posts:How Outsourced Call Centers Are Costing Millions In Identity TheftForeclosed and nowhere to go? Stay put700,000 Central Collection Bureau, Inc...
Poll: Politicians trusted more than business leaders on economy
Posted on February 23, 2009Poll: Politicians trusted more than business leaders on economy | CNN Related posts:It’s official: The economy is in a recessionThe Economy: Why it feels so badLatest Gallup Poll Shows 43% of Americans Pays Credit in Full Related posts:It’s official: The economy is in a recessionThe Economy: Why it feels so badLatest Gallup Poll Shows 43% of Americans Pays Credit in Full
Spoof song about FreeCreditReport.com
Posted on February 22, 2009Funny spoof song about freecreditreport.com | BoingBoing Related posts:Yet Another Reader Scammed By FreeCreditReport.comRIAA wants $1.5 million per songCan governments copyright laws? Should they? Related posts:Yet Another Reader Scammed By FreeCreditReport...
Who?s getting hurt? UM study crunches the numbers on Minneapolis foreclosures
Posted on February 22, 2009Who’s getting hurt? UM study crunches the numbers on Minneapolis foreclosures | MinnPost Related posts:Hennepin County foreclosures Google Maps mashupKSTP: Foreclosures in North MinneapolisCollectors hurt by recession as consumers walk away from unpaid bills Related posts:Hennepin County foreclosures Google Maps mashupKSTP: Foreclosures in North MinneapolisCollectors hurt by recession as consumers walk away from unpaid bills
Save Bundles of Cash by Buying Eyeglasses Online
Posted on February 22, 2009Save Bundles of Cash by Buying Eyeglasses Online | Lifehacker Related posts:No cash? No problem, if you barter20 Unique Ways to SaveYear-end tax planning tips to help consumers save Related posts:No cash? No problem, if you barter20 Unique Ways to SaveYear-end tax planning tips to help consumers save
The credit crisis, visualized
Posted on February 21, 2009Related posts:The credit crisis as Antarctic expeditionAnatomy of a Meltdown: The Credit CrisisFixing our fuel crisis, credit crunch: a new course in home economics? Related posts:The credit crisis as Antarctic expeditionAnatomy of a Meltdown: The Credit CrisisFixing our fuel crisis, credit crunch: a new course in home economics?
Link roundup
Posted on February 20, 2009Transportation chief eyes taxing miles driven | MSNBC Make The Bank Prove It Really Owns Your Mortgage Before You Let Them Toss You Out | Consumerist Help for homeowners | WhiteHouse.gov Why the Credit Bureaus Can’t Get It Right | SmartMoney...
The Stimulus Pie
Posted on February 18, 2009CNN has a very good interactive chart showing just how the enormous stimulus package will be spent. Following the money: stimulus spending plan, by sector | CNN Related posts:U.S. government plans to buy billions in bad bank debtAIG Was Spending Taxpayer Money Lobbying Against Mortgage RegulationWhat would you do if you lost your job? Related posts:U...
Mortgage Cram Downs in Legislative Limbo
Posted on February 17, 2009Mortgage Cram Downs in Legislative Limbo | Change.org Related posts:AIG Was Spending Taxpayer Money Lobbying Against Mortgage RegulationMinnesota has less than half as many mortgage originators this year. Good.Minnesota gives mortgage fraudsters a free pass Related posts:AIG Was Spending Taxpayer Money Lobbying Against Mortgage RegulationMinnesota has less than half as many mortgage originators this year...
Subscribe to Caveat Emptor
Posted on February 15, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter. Related posts:Subscribe to Caveat EmptorSubscribe to Caveat Emptor via RSS or emailFollow Caveat Emptor on Twitter Related posts:Subscribe to Caveat EmptorSubscribe to Caveat Emptor via RSS or emailFollow Caveat Emptor on Twitter
Sub-prime time
Posted on February 13, 2009Sub-Prime Time | Diesel Sweeties Related posts:Quit Claim: scams in prime time.Caveat Emptor Playlist: the sub-prime market explainedSubprime loan delinquency curve nearly vertical Related posts:Quit Claim: scams in prime time.Caveat Emptor Playlist: the sub-prime market explainedSubprime loan delinquency curve nearly vertical
Airbag fraud (Auto Fraud Week)
Posted on February 13, 2009Failure to replace airbags in rebuilt cars is real and very deadly problem. NPR has a great article on airbag fraud. According to NPR, the National Highway Traffic Safety Administration reviewed 1,446 fatal crashes and found that in 255 of those cases, the air bags had not been replaced after a previous accident...
Is the moment right to bring back a usury cap? (AFFIL Week)
Posted on February 13, 2009Triple-digit interest rates used to be illegal. From Biblical times through the Middle Ages through English colonial law, people realized that the government needed to regulate the inherently unequal relationship between lender and borrower. One by-gone civilization that didn?t do this was ancient Greece, and they ended up with loads of literal ?debt slaves...
Get your car history from your Uncle Sam? (Auto Fraud Week)
Posted on February 13, 2009Hopefully in the not-too-distant future you will be able to get all the same information that Carfax sells you for $2.50 from Uncle Sam. I say hopefully because there are a number of forces conspiring to prevent it. The Anti-Car Theft Act (the Act) of 1992 directed the U...
Welcome, Minnesota Lawyer readers!
Posted on February 13, 2009Thanks for visiting from Minnesota Lawyer! I have been writing this blog since November 2005, although back then, the blog did not have a name or any particular focus other than “law.” I adopted the name and registered this domain in early 2007, and so it has been since then...
Michael Capuano (D-Mass) has some choice words for Wall Street CEOs
Posted on February 12, 2009Capuano to CEOs: No One Trusts You Anymore | TPM TV Related posts:Will Wall Street come clean?Wall Street panhandlersCommentary: How to prevent the next Wall Street crisis Related posts:Will Wall Street come clean?Wall Street panhandlersCommentary: How to prevent the next Wall Street crisis
Does July of 2010 seem a long way off to anyone else? (AFFIL Week)
Posted on February 12, 2009On December 18, the Federal Reserve Board released new regulations for credit card issuers. The substance of the regulations is great ? in some ways it?s even stronger than what was proposed (more on this below). But the ridiculous problem with the Fed?s announcement is that, for some reason, the rules won?t go into effect [...
Subprime lending dropped in ?07, but people of color still bear the brunt of it (AFFIL Week)
Posted on February 11, 2009Today marks the release of Changing Patterns XV, the fifteenth annual report on mortgage lending in Massachusetts that I?ve prepared for the Massachusetts Community and Banking Council. Lots of high-cost subprime lenders bit the dust in 2007, so subprime lending fell dramatically that year...
Samonella Peanut CEO won?t eat his own peanuts, cites Fifth Amendment
Posted on February 11, 2009This cries out for a new “lolconstitution” internet meme. Samonella Peanut CEO won’t eat his own peanuts, cites Fifth Amendment | BoingBoing Related posts:FDA says peanut plant was “lab shopping”Identity protection ads come back to bite LifeLock CEOThe FTC Will Never Ask You For Money Because You Won The Lottery...
Buying a car on credit (Auto Fraud Week)
Posted on February 11, 2009For starters, if you are going to buy a car on credit, the best way to start is to go to a credit union and ?pre-qualify? for a car loan. In other words, find out what you will be able to afford from someone who is not trying to sell you a car. When you [...
Thank goodness this COP is on the beat (AFFIL Week)
Posted on February 10, 2009On January 29, the Congressional Oversight Panel (COP) released its Special Report on Regulatory Reform (PDF link). The COP, established by Congress to oversee the Treasury?s bailout plan, is chaired by Harvard law professor and consumer advocate Elizabeth Warren...
Do you really need to buy a car? (Auto Fraud Week)
Posted on February 10, 2009Before you buy a new or newer car, carefully consider your current car. Does buying a new or newer car now make sense, or should you just fix the old one? Generally, it is much cheaper to keep driving the old one. If you bought the car on credit and have had the car less than [...
Mandatory Binding Arbitration: The Worst Choose Your Own Adventure Ever
Posted on February 10, 2009This is one of the best-executed blog posts, ever, about arbitration or anything else. Mandatory Binding Arbitration: The Worst Choose Your Own Adventure Ever | Consumerist Related posts:Mandatory binding arbitration sucks (say 81% of Americans)Comcast now allows customers to opt out of mandatory binding arbitrationT-Mobile early-termination fee lawsuit moves forward because mandatory binding arbitration clause unconscionable Related posts:Mandatory binding arbitration sucks (say 81% of Americans)Comcast now allows customers to opt out of mandatory binding arbitrationT-Mobile early-termination fee lawsuit moves forward because mandatory binding arbitration clause unconscionable
If You Knew Suze Like We Know Suze You Wouldn?t Listen to Her Advice
Posted on February 10, 2009If You Knew Suze Like We Know Suze You Wouldn?t Listen to Her Advice | Slate Related posts:Could government-subsidized financial advice prevent the next recession?Attention Big Business: listen to our complaints and give us what we wantRegarding debt collection and the advice “just pay it” Related posts:Could government-subsidized financial advice prevent the next recession?Attention Big Business: listen to our complaints and give us what we wantRegarding debt collection and the advice “just pay it”
Moving forward: making financial regulation make sense (AFFIL week)
Posted on February 09, 2009It is 2009 and the economy has tanked. Subprime mortgage lending was the domino that started the whole mess a-falling. Worst of all, there is no end in sight to the recession we?ve slid into. The good news is that, in the midst of the mess, there is a rare opportunity to take a look at [...
Carfax: know its limits (Auto Fraud Week)
Posted on February 09, 2009Every time I hear a Cafax ad, it makes me want to scream. Carfax will not give you the ?real history? of a car. What a Carfax report gives you is the reported history. There can be a big difference. What Carfax does is collect information reported to the various states? motor vehicle departments...
5 credit card company tricks ? and how to thwart them
Posted on February 09, 20095 credit card company tricks ? and how to thwart them | Get Rich Slowly Related posts:Credit card tricks and traps to avoidCommon credit card tricks & traps10 Aggressive Tactics to Turn the Tables on Credit Card Companies Related posts:Credit card tricks and traps to avoidCommon credit card tricks & traps10 Aggressive Tactics to Turn the Tables on Credit Card Companies
Fed may win sweeping financial oversight
Posted on February 08, 2009Fed may win sweeping financial oversight | MSNBC Related posts:Focus on Foreclosure claims a “WIN-WIN Solution”Fed to Issue New Mortgage Lending Regulations Next WeekHate your credit card? Tell the Fed Related posts:Focus on Foreclosure claims a “WIN-WIN Solution”Fed to Issue New Mortgage Lending Regulations Next WeekHate your credit card? Tell the Fed
This week: guest bloggers AFFIL and Nick Slade
Posted on February 08, 2009We are looking forward to a great week! Sarah Byrnes and Jim Campen of AFFIL will be joining us to talk lending, and Nick Slade will be joining us to talk auto fraud. Look forward to lots of great posting from Sarah, Jim, and Nick, starting tomorrow! Related posts:Nick Slade joins the Caveat Emptor blogNext week: Sarah [...
Poisonous spiders
Posted on February 07, 2009February 7, 2009 | Dilbert.com No related posts. No related posts.
Getting your credit score is getting more confusing
Posted on February 06, 2009February brings two big changes to FICO credit scores. First, FICO credit scores are calculated differently as of yesterday. Second, as of February 14th, Experian will no longer give consumers access to their Experian credit score, although lenders will still have access to the number...
Next week: Sarah Byrnes and Jim Campen of AFFIL
Posted on February 06, 2009Part-time bloggers Sarah Byrnes and Jim Campen of Americans for Fairness in Lending will be joining us as guest posters next week. Here is more on AFFIL, and you can read more about Sarah and Jim after the break. Jim Campen is professor emeritus of economics at the University of Massachusetts Boston, where he is currently [...
Senate votes to re-inflate the housing bubble
Posted on February 05, 2009The Senate has approved an addition to the economic stimulus package that would give a $15,000 tax credit to anyone who buys a home within two years of the bill’s passage. The credit only applies to a principal residence, and would have to be repaid if the buyer sells the home within two years...
U.S. passport information a piece of cake to steal
Posted on February 04, 2009A hacker with $250 of easy-to-obtain equipment drove around San Francisco grabbing users’ personal information from passports and drivers’ licenses equipped with soon-to-be-mandatory radio-frequency identification (RFID) cihps. The government has been pushing for tagging most identification with RFID chips, claiming it would be impossible or unlikely for hackers to do just what Chris Paget did with [...
Debt collectors think consumers knowing their rights is ?ominous?
Posted on February 03, 2009Yesterday, on Consumerist, I criticized an article in the Washington Post for sounding like it was written by debt collectors. Apparently, it was prompted by a dispatch from the Associated Press, which distributed “Six Tips for Dealing With Debt Collectors” on Friday...
Subscribe to Caveat Emptor
Posted on February 02, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter.
Find recalled products
Posted on February 02, 2009Parents.com has an easy-to search database of toys and other products that have been recalled as dangerous. You can search for specific toys, categories of toys, and find lists of important recalls for 2008. Toy and Product Recall Finder | Parents...
Take Back the Land helps homeless squat in vacant properties
Posted on January 31, 2009Yesterday I linked to a video of Ohio congresswoman Marcy Kaptur telling her constituents to become squatters in their foreclosed homes. In Miami, activists at Take Back the Land are moving the homeless into empty, bank-owned properties and government buildings...
Foreclosed and nowhere to go? Stay put.
Posted on January 30, 2009So says Ohio congresswoman Marcy Kaptur. Stick it to the vultures until they prove they actually have the right to take your home, which is unlikely for many mortgage loans. Embedded video from CNN Video
FDA says peanut plant was ?lab shopping?
Posted on January 29, 2009If a lab finds salmonella in virtually every peanut product you make, what do you do? If you are Peanut Corporation of America, whose factory is the source of the salmonella-flavored peanut butter outbreak, you keep sending your products to other labs (hopefully with sloppier testing staff) until you get the all-clear...
How to buy a new car in any economy
Posted on January 28, 2009Now is not the time to run out and buy a new car if yours works perfectly well. But if you are in the market, you can look forward to some great deals, as cars are piling up in storage lots and dealers are anxious to move inventory. Whether the economy is bad or good, there [...
Subscribe to Caveat Emptor
Posted on January 27, 2009Don’t forget to subscribe to Caveat Emptor. You can have posts emailed to you, add our RSS feed to your reader, or follow us on Twitter.
Green Mountain Coffee apparently unaware people use ?computers? to buy things on ?the internet?
Posted on January 27, 2009With the best intentions, knowing I love coffee and tea, my mom sent me a $50 gift certificate for Green Mountain Coffee last September. I have not used it yet because I could not figure out how. I finally called Green Mountain Coffee’s customer service (fair points for having real live people answering the phone), and [...
Save money on the digital TV switch; make your own antenna
Posted on January 26, 2009Once you have a television that gets the digital channels, you will never want to watch standard def again. Better picture and better reception mean you could probably drop your basic cable subscription that you only have so the local channels come in clearly...
Debt collector in the news: two sides to every story
Posted on January 26, 2009Last night I posted a link to a New York Times story written by debt collector Pat Marshall. Then, this morning, I stumbled across this twitter post from blogger Bill Bauer: I admit, reading “I feel that I?m helping people see that there are options for getting out of their situations?maybe by taking out a second [...
Sears upsells plasma television ?recharging? service (Hint: no such thing)
Posted on January 26, 2009Imaginary products have infinite margins: a sure way out of the recession. Sears upsells plasma television “recharging” service (Hint: no such thing) | BoingBoing Gadgets
Florida collection agency Smith, Dean & Associates sued by the Illinois AG
Posted on January 26, 2009Smith, Dean & Associates, Inc. (formerly United Processing), apparently has a few employees who can’t help but abuse the heck out of Illinois consumers. Besides using profanity, shaming consumers by calling friends and family, and lying about being an attorney, SD&A collectors threatened consumers with Arrest; Federal prison; and Losing their children The Illinois Attorney General got a restraining [...
In Tough Times, a Debt Collector Sees the Pain
Posted on January 25, 2009In Tough Times, a Debt Collector Sees the Pain | New York Times
Landlord takes tenant?s toilet, gets $10,000 fine
Posted on January 23, 2009Landlord takes tenant’s toilet, gets $10,000 fine | MSNBC
Caveat Emptor ranked #50 out of the top legal blogs
Posted on January 23, 2009Bob Ambrogi just posted a link to the Avvo Blog’s list of the top 300 legal blogs on the internet. Caveat Emptor made it to #50 as of today. Looking good!
NJ car dealership pays for ripping off Kenneth Hammel
Posted on January 21, 2009Back in 2006, 80-year old Kenneth Hammel brought his 2000 Chrysler Town & Country minivan to the Cherry Hill Triplex dealership. The dealership kept Hammel at the dealership for 12 hours while they used high-pressure sales tactics to get him to buy a 2005 Kia Sedona...
Happy inauguration day!
Posted on January 20, 2009Whatever your political views, today is a day of hope, as once again the leadership of the United States of America passes peacefully from one President to the next.
New York Couple Harassed by Creditors Trying to Collect Debt Their Dead Son Owed
Posted on January 16, 2009N.B., this would not be a “small claim” by any stretch of the imagination. New York Couple Harassed by Creditors Trying to Collect Debt Their Dead Son Owed | Fox News (via Consumerist)
Don?t forget, you can follow Caveat Emptor on Twitter
Posted on January 16, 2009Don’t forget, you can follow Caveat Emptor on Twitter.
America needs a consumer czar
Posted on January 16, 2009Lots of consumer groups, bloggers, and tradmedia commentators are calling for the Obama administration to reinstate the White House Office of Consumer Affairs, a long-dead consumer advocate division of the executive branch. Obama needs to do this. Consumers need someone in government looking out for their best interests, someone who can cry foul to the President [...
Minnesota courts to stop handling debt collection lawsuits?
Posted on January 15, 2009Possibly, along with other “low-importance” cases like shoplifting, traffic violations, trespassing, and small claims, if the legislature delivers the 10% cut to court funding that it has suggested it will. Minnesota courts have been short-staffed and under-funded for years, and further cuts could mean that the judicial system starts to shut down some services...
What?s the Best Fix?
Posted on January 14, 2009What’s the Best Fix? Why politicians and economists can’t decide on the best fix for the economy. | Newsweek
Nine FDA scientists say agency is fundamentally broken
Posted on January 11, 2009Scary stuff: Currently, there is an atmosphere at FDA in which the honest employee fears the dishonest employee, and not the other way around. Disturbingly, the atmosphere does not yet exist at FDA where honest employees committed to integrity and the FDA mission can act without fear of reprisal...
Minnesotans may sue if a debt collector levies funds in a joint account
Posted on January 07, 2009Back in November, I won an important decision for Minnesota consumers against Messerli & Kramer, a law firm that seems to handle the bulk of debt collection lawsuits filed in Minnesota. Messerli & Kramer served a levy on my clients’ bank for funds in their’ joint bank account, even though Messerli & Kramer only had [...
Kara McGuire is twittering every dollar she spends in 2009
Posted on January 06, 2009Kara McGuire is twittering every dollar she spends in 2009, which is either awesome or tedious, or a little of both. Follow along at twitter.com/kablog. Twittering every penny that I spend in 2009 | Ka-Blog!
From Joe Johnson: Debt collector called the wrong number
Posted on January 06, 2009From Joe Johnson, via Twitter: Debt collector called the wrong number. I figure what the heck, a lead is a lead, tried to sell him a house. Not sure why he hung up.
Creditors willing to haggle with debtors in tough economic times
Posted on January 06, 2009In anticipation of an increase in economic and credit turmoil, creditors and debt collectors are racing to collect as much as possible from their debtors and to minimize future losses. While many banks are cutting credit lines, raising fees, and reducing lending, creditors are also giving debt collectors more latitude to work with debtors in [...
My post about phone book spam on Consumerist today
Posted on January 05, 2009In which we learn from Consumerist commenters that “to give someone what for” is a severely dated expression unknown by today’s youth, and in which we glorify the exploits of local consumer vigilante Ed Kohler. If you just arrived here from Consumerist, check out the highlighted links just above, or take advantages of the Quick Links [...
It?s a new year, but the same old scams
Posted on January 04, 2009Debt-relief scams, work-at-home cons will be even more prevalent in ‘09. It’s a new year, but the same old scams. | MSNBC.com
Banks bribe colleges to let them sign up students on campus
Posted on January 02, 2009In an effort to sign up as many suckers students as possible, many credit card companies advertise on college campuses. They give away things like t-shirts, water bottles, and other cheap prizes, but only to students who apply for a credit card. This access to new borrowers is worth a lot of money...
Where?d the bailout money go? Shhhh, it?s a secret
Posted on December 28, 2008Where’d the bailout money go? Shhhh, it’s a secret | SFGate
Be realistic about tracking bailout money
Posted on December 28, 2008Be realistic about tracking bailout money | TwinCities.com
Where to get help when you can?t pay your mortgage
Posted on December 28, 2008If you are having trouble paying your mortgage, you need to get out your financial paperwork and seek help early. If you wait until you are already missing payments, you will not have the options that are available to you while you are still paying on time...
20 personal finance dos and don?ts for 2009
Posted on December 27, 200820 personal finance dos and don’ts for 2009 | MSNBC
10 Ways to Tell If You Can Afford It
Posted on December 27, 200810 Ways to Tell If You Can Afford It | the Strump
The American Dream?Only This Time in Reverse
Posted on December 26, 2008The American Dream?Only This Time in Reverse | Newsweek
How to deal with a holiday debt hangover
Posted on December 26, 2008How to deal with a holiday debt hangover | MSNBC
Debt Collector?s Unlawful Message on Answering Machine May Give Rise to Stay or Discharge Violation Action
Posted on December 26, 2008Debt Collector’s Unlawful Message on Answering Machine May Give Rise to Stay or Discharge Violation Action | The BK Blog
Why Isn?t the Bailout Working?
Posted on December 26, 2008I’m partial to John Stossel’s reporting style and his libertarian leanings. On last Friday’s 20/20 he went in search of our bailout money. Why Isn’t the Bailout Working? | ABC News
In Hard Times, Houses of God Turn to Chapter 11 in Book of Bankruptcy
Posted on December 25, 2008In Hard Times, Houses of God Turn to Chapter 11 in Book of Bankruptcy | Wall Street Journal
Merry Christmas!
Posted on December 25, 2008A Christmas gift to all Caveat Emptor readers. Oklahoma Senator Tom Coburn (R) has published a nice white paper on the worst 2008 federal spending. Warning - this might bring your temper to a boil (it did mine) so wait until after all your festivities have completed so as to not ruin your Christmas holiday.
Free Christmas music from Amazon MP3
Posted on December 24, 2008If you will be sitting around with family tonight or tomorrow, but you don’t have a lot of holiday music, Amazon MP3 has got you covered. They have 25 days of free holiday music, a free holiday sampler album, and a lot more free music, all DRM-free, unlike the iTunes music store...
Is Added Warranty Worth the Cost?
Posted on December 24, 2008I always buy the added warranty on consumer electronics and so far it has served me well. They key is to be well informed before you buy. Is Added Warranty Worth the Cost? | Wall Street journal
It?s a wonderful mortgage crisis
Posted on December 24, 2008Newsweek analyzes the mortgage crisis though the lens of my favorite holiday movie. For those who don’t know the story, Frank Capra’s masterpiece is a film about overcoming greed through the power of friendship (with a little help from spirituality), family and love...
Drop in Gas Prices Offers a Bit of Relief for Consumers
Posted on December 24, 2008Drop in Gas Prices Offers a Bit of Relief for Consumers | New York Times
Developers Ask U.S. for Bailout as Massive Debt Looms
Posted on December 24, 2008Next in line for bailout money—developers. Developers Ask U.S. for Bailout as Massive Debt Looms | Wall Street Journal
Close the money hole? Consider this debate.
Posted on December 23, 2008A good discussion on what to do with a real national treasure. Pardon the language. In The Know: Should The Government Stop Dumping Money Into A Giant Hole?
Where?s the bank bailout money?
Posted on December 23, 2008Where’s the bank bailout money? Perhaps the banks themselves don’t even know. | cnn.com
America?s least welcome visitors: the evictors
Posted on December 23, 2008Dateline NBC’s Chris Hansen followed sheriff’s officers in three states (Florida, Nevada and Michigan) in a heart wrenching piece on the victims of the recent mortgage crisis: families. .msnbcLinks {font-size:11px; font-family:Arial, Helvetica, sans-serif; color: #999; margin-top: 5px; background: transparent; text-align: center; width: 425px;} ...
Let?s make a deal
Posted on December 23, 2008It might be too late to haggle over prices for this holiday season but this is sage advice for any time of year - especially in this economy. Let’s make a deal | Star Tribune (via Associated Press)
Credit-card defaults bedevil Target
Posted on December 23, 2008Credit-card defaults bedevil Target | Star Tribune
Social Security: FDR?s Ponzi scheme.
Posted on December 22, 2008There has been a lot in the news about Ponzi schemes lately. From Petters to Madoff, these man-made towers of greed are beginning to crumble under their own weight and unsustainable growth. n elementary explanation of the Ponzi scheme is where new investors are brought into an investment to pay the old investors...
Homeownership policy fueled crisis
Posted on December 22, 2008Now were going to throw the Bush Administration under the bus for adopting what could be termed a most liberal of policies? Homeownership policy fueled crisis #124; Pioneer Press (via New York Times))div class="feedflare" a href="http://feeds.feedburner...
Think again before signing up for that payday loan
Posted on December 22, 2008Many families are finding it hard to make ends meet this holiday season, let alone buy presents for loved ones. Payday loans may look like a good way to raise funds for presents, but look at that annual percentage rate (APR) before you jump in. Payday loans provide an opportunity to to get quick cash, and [...
Peter Wallison: the roots of the financial crisis
Posted on December 22, 2008Reason.tv has a posted a partial video of banking expert Peter Wallison#8217;s speech at the American Enterprise Institute#8217;s 40th anniversary. My fellow bloggers will undoubtedly point out that this leans right as does most things AEI but it is a video worth watching...
Center Point Energy shuts off heat in zero-degree weather
Posted on December 22, 2008Tenants in an 11-unit apartment building in Minneapolis lost heat last Thursday. Happy Holidays from Center Point Energy! Of course, Center Point only shut off the heat because the landlord (Donald Christopher according to Hennepin County Property Records) had more than $10,000 in outstanding bills...
Why Are Debt Collectors Calling on Discharged Debts?
Posted on December 22, 2008Why Are Debt Collectors Calling on Discharged Debts? #124; Bankruptcy Law Networkdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=M7BSO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=M7BSO" border="0"/img/a a href="http://feeds...
Macy?s uses racial profiling to stock formalwear
Posted on December 21, 2008A Consumerist reader who went to Macy’s in search of a plus-sized gown was told that particular Macy’s did not carry plus-sized formalwear because its “upscale” customers tended to be petite. According to the store clerk, herself a woman of color, “[w]omen of color tend to be larger, so there is a much bigger plus [...
Year-end tax planning tips to help consumers save
Posted on December 21, 2008Year-end tax planning tips to help consumers save | Wallet Pop
Last minute gift idea: charitable gifts
Posted on December 21, 2008If you are struggling to find some last-minute gifts for friends or family, consider a gift with a charitable element. At Heifer Project International, you can buy heifers, pigs, rabbits, a flock of chicks, and a number of other useful gifts for recipients in third-world countries...
$1.6 billion went to bailed-out bank execs
Posted on December 21, 2008Like to know where your taxpayer funded bailout money is going? Here#8217;s a start - $1.6 billion went to bailed-out bank execs #124; MSNBCdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=ET51O"img src="http://feeds...
Wall Street Still Flying Corporate Jets
Posted on December 21, 2008Wall Street Still Flying Corporate Jets #124; ABC Newsdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=TNrMO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=TNrMO" border="0"/img/a a href="http://feeds...
Bailed-Out Banks Dole Out Bonuses
Posted on December 20, 2008Bailed-Out Banks Dole Out Bonuses #124; ABC Newsdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=JEqtO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=JEqtO" border="0"/img/a a href="http://feeds.feedburner...
A Second Mortgage Disaster On The Horizon?
Posted on December 20, 200860 Minutes did an excellent expose on part two of the mortgage meltdown a few weeks back. Dig a little deeper and you#8217;ll find that this is just the second of what appears to be many more to come (see malls and hotels). Watch CBS Videos Onlinediv class="feedflare" a href="http://feeds...
UAW?s Sacrifices Look to Some Like Surrender
Posted on December 20, 2008UAW#8217;s Sacrifices Look to Some Like Surrender #124; Washington Postdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=CQQPO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=CQQPO" border="0"/img/a a href="http://feeds...
2008 Bailout Costs As Much As Several Large And Famous Government Projects Combined
Posted on December 19, 20082008 Bailout Costs As Much As Several Large And Famous Government Projects Combined #124; Consumeristdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=5NPnO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=5NPnO" border="0"/img/a a href="http://feeds...
Chris Matthews? new cabinet position?
Posted on December 19, 2008I don#8217;t think there has been enough politics on the blog lately. I offer this Matthews clip as a discussion point. Is it the job of the media to ensure a successful President? I say no. Is this consumer related? Absolutely - we are all consumers of news and information...
RIAA to stop lawsuits? Maybe.
Posted on December 19, 2008The Wall Street Journal reports that the RIAA is going to stop suing individuals for illegally downloading music. It appears that they will now attempt to coerce the individual#8217;s ISP to help in their efforts. This is good news for the consumer if only for a short period of time...
RIAA finds its soul, will stop suing individuals downloading music
Posted on December 19, 2008RIAA finds its soul, will stop suing individuals downloading music #124; Engadgetdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=MzTgO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=MzTgO" border="0"/img/a a href="http://feeds...
FEDS: BANKS MUST STOP MISBEHAVING ? IN 2010
Posted on December 18, 2008FEDS: BANKS MUST STOP MISBEHAVING #8230; IN 2010 #124; MSNBCdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=DFfKO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=DFfKO" border="0"/img/a a href="http://feeds...
Regulators adopt new credit card rules
Posted on December 18, 2008Regulators adopt new credit card rules #124; AP (via Yahoo! News)div class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=2e1AO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=2e1AO" border="0"/img/a a href="http://feeds...
New form: credit report dispute letter
Posted on December 18, 2008In order to remove inaccurate information from your credit report, you must report that information to the credit reporting agencies (CRAs) Experian, TransUnion, Equifax, and CSC Credit Services. Once you dispute the inaccurate information, the CRAs must investigate the matter and remove any inaccurate information or edit the entry to reflect your dispute...
Credit card holders livid about ?rate-jacking?
Posted on December 17, 2008#8220;Citi is repricing a group of customers.#8221; Credit card holders livid about #8216;rate-jacking#8217; #124; CNNdiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=qBZuO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=qBZuO" border="0"/img/a a href="http://feeds...
How Much Does the Stock Market Actually Return?
Posted on December 17, 2008How Much Does the Stock Market Actually Return? #124; Get Rich Slowlydiv class="feedflare" a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=55WpO"img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=55WpO" border="0"/img/a a href="http://feeds...
Credit reports apparently generated by Flintstones technology
Posted on December 17, 2008According to Gary Nitzkin, #8220;[t]he credit reporting industry is operating in the stone age.#8221; By which he means the credit reporting agencies seem incapable of dealing with credit information that comes from identity theft. Gary filed two lawsuits because even though the identity thief confessed, he could not get his clients#8217; credit reports fixed...
Toyota seems confused about its vehicles? fuel economy
Posted on December 16, 2008Toyota’s website (which has no sensible link to vehicles from the front page, for some reason) has some interestingly misleading numbers. In big print on the page for each vehicle, it lists the fuel economy numbers prominently in big lettering. For the RAV4, for example, it shows the fuel economy as 22/28...
Follow Caveat Emptor on Twitter
Posted on December 15, 2008If you use Twitter, make sure to follow @caveat_emptor and get new posts delivered to your Twitter feed. If you do not use Twitter, remember, you can subscribe to Caveat Emptor via RSS or get posts delivered to your email inbox. (Twitter updates provided by the TwitMe WordPress plugin...
Profiles in bankruptcy: Johnny Unitas
Posted on December 15, 2008Brad Perri is a Minnesota bankruptcy attorney and occasional guest poster for Caveat Emptor. We all have gifts in life. Some of us are good at football. Some of us are good at money. Others of us are good at neither. Johnny Unitas of the Baltimore Colts was arguably the greatest player who ever played in the [...
Pity the poor debt collector?
Posted on December 14, 2008Pity the poor debt collector? | Consumer Law & Policy
Subscribe to Caveat Emptor via RSS or email
Posted on December 14, 2008If you like reading Caveat Emptor, why not subscribe? You can have Caveat Emptor content delivered to you in one of two ways: RSS RSS, or Really Simple Syndication, is an easy way to have content from blogs and websites delivered to you. All you need is an RSS reader, and then look out for the big, [...
Collectors hurt by recession as consumers walk away from unpaid bills
Posted on December 12, 2008?This situation lets people in on a dirty little secret for a lot of firms, especially on the service side. Their collections efforts are really a bluff. They really aren?t going to pursue their borrowers very hard,? [David] Vang said. ?When people see that, their morals adjust...
Your home equity line of credit is not an ATM
Posted on December 11, 2008Last August, I wrote about the “Speed Equity System,” a dumb idea centered around using a home equity line of credit as if it were a bank account. The basic idea is to deposit all your income into your HELOC, preventing as much interest from accumulating as possible...
Gift card dangers
Posted on December 10, 2008With the holidays coming up, I am sure many will be buying a gift card or two, or at least thinking about it. But, just a reminder about the hazards and pit falls of gift cards. The FTC has some great tips on gift cards, which you can find after the jump...
Bankruptcy in the Bible
Posted on December 09, 2008Brad Perri, a Minnesota bankruptcy attorney, is an occasional guest contributor to Caveat Emptor. Christ was not shy about discussing the morality of debtors and creditors. The only instance of Christ resorting to violence is recorded in the Bible in the story of Christ driving the money lenders from the temple...
In the spirit of the season and
Posted on December 07, 2008In the spirit of the season and our current recession: Why Charitable Giving is Even More Important During an Economic Downturn | Get Rich Slowly
The only reason to answer the phone when a customer calls . . .
Posted on December 06, 2008. . . is to make the customer happy. - Seth Godin More words companies should live by: If you’re not doing this or you are unable to do this, do not answer the phone. There is no middle ground on this discussion. There are no half measures. Saving 50 cents a call with a complicated phone [...
Dave Ramsey hates credit cards, and won?t let you pay him with them
Posted on December 03, 2008Dave Ramsey preaches about the evils of credit cards. The climax of his presentations is a big pair of scissors and a lot of credit cards, sometimes contributed from the audience. But Dave doesn’t stop there. What Dave preaches, Dave does. He will not sell you things on credit...
Wal-Mart: taxpayer-subsidized low prices
Posted on December 01, 2008While the economy tries to pull out of its downward spiral, consumers are flocking to discount department stores like Wal-Mart, looking for the cheapest products they can find. But Wal-Mart’s prices are low for a reason: its business model includes relying on public benefits and services for everything from store security to employee healthcare...
It s official: The economy is in a recession
Posted on December 01, 2008Duh. It’s official: The economy is in a recession | CNN<div class="feedflare"> <a href="http://feeds.feedburner.com/~f/caveatemptorblog/rss?a=sGJ2O"><img src="http://feeds.feedburner.com/~f/caveatemptorblog/rss?i=sGJ2O" border="0"></img></a> <a href="http://feeds...
How to keep your car trouble-free
Posted on November 28, 2008How to keep your car trouble-free | AOL autos (via CNN)
5 Things to Never Say to a Debt Collector
Posted on November 26, 20085 Things to Never Say to a Debt Collector | Brunette on a Budget
Tips from America?s thriftiest families
Posted on November 26, 2008Tips from America’s thriftiest families | Oprah (via CNN)
Real estate only goes up!
Posted on November 25, 2008Some of you may have noticed I am mostly posting humorous things lately. That is because (1) the economy is in the toilet; you already know that; and (2) I am really busy trying to finish up a law review article by the end of next week. In the meantime, enjoy this clip of Hitler, who [...
How credit cards become asset-backed bonds
Posted on November 25, 2008How credit card companies make money by passing off debt on investors, and keeping the fees and charges to themselves. Marketplace’s series of whiteboard talks simplifies complex financial concepts for you and me. How credit cards become asset-backed bonds from Marketplace on Vimeo...
Prisoners of Debt (redux)
Posted on November 24, 2008A while back I promised more analysis of this article. This gist of the article is that those debts discharged by a bankruptcy court are not being honored as discharged. There are some powerful reasons for this First, those debt collectors who we collecting on the debt prior to the discharge will continue to collect on [...
Nationwide Debt Collector Will Pay $2.25 Million to Settle FTC Charges
Posted on November 21, 2008“Academy Collection Service, Inc. and its owner, Keith Dickstein, have agreed to pay $2.25 million to settle Federal Trade Commission charges that Academy and its collectors misled, threatened, and harassed consumers; disclosed their debts to third parties; and deposited postdated checks early, in violation of federal law...
How To Keep Debt Collectors Out Of Your Pockets
Posted on November 19, 2008How To Keep Debt Collectors Out Of Your Pockets | New York Consumer Litigation
The best (and cheapest) Christmas present in the world
Posted on November 19, 2008Don’t go broke this Christmas. The hottest toy this Christmas? Your old newspaper. | Ka-Blog!
Debt Collector Charged as Fake Cop
Posted on November 19, 2008Debt Collector Charged as Fake Cop | WSB Radio
Senator rips auto industry
Posted on November 18, 2008Thank you, Senator Dodd! Senator [Dodd] rips auto industry | CNN Money
Check cashing, payday lending, and the rise of the alternative banking industry
Posted on November 18, 2008I just read the NYT Magazine article Check Cashers, Redeemed on the rise of the alternate financial industry and would highly recommend it. The article looks at the recent rise of alternative banking through Nix Check Cashing, which is now owned by Kinecta Federal Credit Union...
The agony of seven days without spending
Posted on November 16, 2008The agony of seven days without spending | Real Simple (CNN)
Caveat Emptor, graffiti edition
Posted on November 14, 2008Found on a Minneapolis bridge on my way to work.
Woman Loses $400,000 To Nigerian Email Scam
Posted on November 14, 2008“That’s why these emails will continue to clog our spam filters. There will always be someone greedy out there where the prospect of a huge payday with just trip something in their brain and they suspend all reason and let themselves get bled dry...
Friday link roundup
Posted on November 14, 2008If I am posting less than you would like, it is because I am busy working for my clients. Here are the links I haven’t had the time to comment on from the last week or two: What’s Worse Than Inflation? Deflation. | Consumerist The Wall of Debt (Financial Voyeurism) | StopBuyingCrap...
Voters in Arizona and Ohio reject payday lending
Posted on November 13, 2008Sarah Byrnes of Americans for Fairness in Lending is an occasional guest contributor to Caveat Emptor. Great news for consumers and advocates ? citizens in Ohio and Arizona voted on Tuesday, November 4th to reject payday lending. Ballot measures proposed by the industry were soundly defeated in both states, showing that voters weren’t swayed by the [...
New Program Could Help Half a Million Homeowners
Posted on November 11, 2008New Program Could Help Half a Million Homeowners | ABC News.com
Talking about money troubles no longer shameful
Posted on November 10, 2008“[T]he economic crisis has some people coming out of the closet about their financial troubles, commiserating about declining 401(k) balances, mounting credit card debt and a stalled housing market.” Talking about money troubles no longer shameful | CNN
Who holds America?s debt?
Posted on November 10, 2008There has been a great deal of talk lately about the holders of US debt. I’ve always assumed it was China but the evidence is to the contrary. Surprisingly, Japan holds almost $600 Billion of US debt. Parade magazine provides a good breakdown of the top holders of U...
Prisoners of Debt
Posted on November 08, 2008Year-old article, but well worth reading. Prisoners of Debt | Business Week
Pay your debts with drawings*
Posted on November 08, 2008Reading this entire string of emails between collector Jane Gilles and debtor David Thorne is entirely worth your time this weekend. From: Jane Gilles Date: Wednesday 8 Oct 2008 12.19pm To: David Thorne Subject: Overdue account Dear David, Our records indicate that your account is overdue by the amount of $233...
Want to stretch you holiday budget? Here?s how
Posted on November 07, 2008Want to stretch you holiday budget? Here’s how | ABC News.com
“The Federal Reserve Board
Posted on November 05, 2008“The Federal Reserve Board on Tuesday alerted the public to instances of questionable solicitations directed at consumers. These solicitations promise consumers access to personal loans through a nonexistent Federal Reserve lending program.” The Fed does not make loans, folks...
The bright side of the bailout: tax benefits galore!
Posted on November 05, 2008My financial advisor, David Benning, forwarded a summary of the tax benefits that were hiding in the fed’s bailout bill. Here is a summary of his summary: Mortgage debt forgiveness excluded Ordinarily, debt forgiveness may be taxable, including foreclosure residuals...
Don?t get ripped off buying component cables
Posted on November 03, 2008I just got back from an expedition to find a DVI-to-HDMI cable to connect my wife’s MacBook to our television. At the Apple Store, the cheapest cable was $19.95. I thought that sounded a bit too pricey, so I stopped by Radio Shack. Imagine my surprise when, at Radio Shack, the cheapest cable in the [...
The Economy: Why it feels so bad
Posted on November 02, 2008“The U.S. economy, more so than other worldwide economies, is largely based on how investors and, ultimately, consumers, feel.” The Economy: Why it feels so bad | CNN Money
Don?t get ripped off buying component cables
Posted on November 01, 2008I just got back from an expedition to find a DVI-to-HDMI cable to connect my wife’s MacBook to our television. At the Apple Store, the cheapest cable was $19.95. I thought that sounded a bit too pricey, so I stopped by Radio Shack. Imagine my surprise when, at Radio Shack, the cheapest cable in the [...
Chase sees the light, wants to rework 400,000 subprime mortgages
Posted on November 01, 2008Chase announced a plan Friday to rework up to $70 billion in mortgages for borrowers who are already behind, but also for those who may soon be behind. The move by the New York bank will cover as many as 400,000 borrowers. They’ll be moved into loans carrying lower interest rates, smaller principal amounts or other [...
7.5 million homeowners find selves ?underwater?
Posted on October 31, 20087.5 million homeowners find selves ‘underwater’ | CNN
FTC taking action against ?credit repair? organizations
Posted on October 31, 2008Earlier this week the FTC and 24 state agencies, via “operation clean sweep” took action against 36 CRO’s in an attempt to crack down on activities in violation of the Credit Repair Organizations Act (CROA). ABC News.com posted a nice piece concerning these CRO strategies and a short explanation of their responsibilities to the consumer...
Debtors complain of abusive bill collectors; the bill for the easy-credit years has come due
Posted on October 30, 2008Debtors complain of abusive bill collectors; the bill for the easy-credit years has come due | Star Tribune
FTC teaches kids about consumer issues
Posted on October 30, 2008Set in a mall, the FTC’s new “You Are Here” website for kids is an attempt to reach out to kids and teach them about consumer issues. Mostly, it focuses on advertising and marketing. The site is a bit lean; there is nothing to keep kids coming back...
Caveat Emptor playlist: Be a debt collector!
Posted on October 29, 2008LOL. Would You Like to Be a Debt Collector? | Get Out of Debt (which, for some reason, does not allow embedding of its videos, so I grabbed the video and posted it on YouTube)
How Outsourced Call Centers Are Costing Millions In Identity Theft
Posted on October 27, 2008How Outsourced Call Centers Are Costing Millions In Identity Theft | Consumerist
Payday loan measures on ballots in Ohio and Arizona
Posted on October 27, 2008Sarah Byrnes of Americans for Fairness in Lending is an occasional guest contributor to Caveat Emptor. In addition to all the other excitement surrounding this election, Ohioans and Arizonans will get the chance to vote on payday loan protections on November 4...
Banks Using $700 Billion Bailout To Buy Other Banks, Not Make More Loans
Posted on October 26, 2008Banks Using $700 Billion Bailout To Buy Other Banks, Not Make More Loans | Consumerist
Banks keep credit card interest rates high despite low Fed rates
Posted on October 25, 2008Even though the interest rates banks pay are dropping, credit card interest rates are holding steady. Joseph Ridout of Consumer Action thinks the banks are trying to make up for their losses on subprime mortgages. At the same time, banks are cracking down on existing customers by raising rates, dropping limits, and taking other draconian measures...
Long lines, glitches reported during early voting
Posted on October 24, 2008Long lines, glitches reported during early voting | CNN
$3.4M verdict upheld in Ridgeland hospice death
Posted on October 24, 2008“The Mississippi Supreme Court has upheld a verdict in the case of a 66-year-old woman who was allegedly misdiagnosed with cancer and then given a lethal dose of painkillers.” $3.4M verdict upheld in Ridgeland hospice death | Clarion Ledger (thanks, Brian)
The FTC Will Never Ask You For Money Because You Won The Lottery. We Promise.
Posted on October 24, 2008The FTC Will Never Ask You For Money Because You Won The Lottery. We Promise. | Consumerist
Wall Street Hoped They?d Be ?Wealthy And Retired? Before The House of Cards Fell
Posted on October 23, 2008Wall Street Hoped They’d Be “Wealthy And Retired” Before The House of Cards Fell | Consumerist
Credit card companies? data mining tricks
Posted on October 23, 2008The credit card industry makes big bucks off of fees, and they carefully mine data to target consumers who are likely to rack up those fees. They mine court data, public records, and buy profiles from companies like Equifax who collect data on their own customers...
How short selling works
Posted on October 23, 2008Another fantastic whiteboard talk from Marketplace: Getting naked in short selling. Getting naked in short selling from Marketplace on Vimeo. Getting naked in short selling | (via Consumerist)
Getting the most out of Priceline
Posted on October 22, 2008While most of my colleagues are spending $200+ per night to stay in Portland for the NCLC conference, my wife and I are staying in a 3.5-star hotel a few blocks away for just $75 per night. A few weeks ago, we stayed in a 4-star, $200+ per night hotel in Madison, WI, and paid [...
AIG Was Spending Taxpayer Money Lobbying Against Mortgage Regulation
Posted on October 21, 2008AIG Was Spending Taxpayer Money Lobbying Against Mortgage Regulation | Consumerist
After Losing His Home, Man Trashes House, Spray Paints Message To Bank
Posted on October 21, 2008“Take this house and shove it.” After Losing His Home, Man Trashes House, Spray Paints Message To Bank | Consumerist
National Consumer Rights Litigation Conference in Portland, Oregon
Posted on October 20, 2008Hello from Portland! I am in Portland all week for the National Consumer Law Center’s annual National Consumer Rights Litigation Conference. (The conference starts on Friday, but I came early with my wife to take in Portland.) I will be presenting on a panel with the Americans for Fairness in Lending on getting out the message [...
Debt Relief Firm Defrauds Debtor
Posted on October 20, 2008Debt Relief Firm Defrauds Debtor | Consumerist
CBS’ 60 Minutes has a great
Posted on October 17, 2008CBS’ 60 Minutes has a great look at the mortgage mess
Free help for consumers in financial trouble
Posted on October 17, 2008If you are in financial hot water, start by looking for free resources. Consumers facing foreclosure or debt collectors are often quick to send off a check to someone who promises help. But many of the credit repair and mortgage rescue outfits eager to collect your money are little better than a scam...
Coming soon: Comp Wonk, a Minnesota workers? compensation weblog
Posted on October 17, 2008I am getting ready to launch Comp Wonk, a blog about Minnesota workers’ compensation, on November 1. A friend of mine who represents injured workers will be writing the blog, and I am looking forward to getting it up and running. If you have questions about work comp, check out Comp Wonk starting November 1.
Illinois sheriff to resume foreclosure evictions
Posted on October 16, 2008Illinois sheriff to resume foreclosure evictions | CNN
Yet Another Reader Scammed By FreeCreditReport.com
Posted on October 16, 2008Yet Another Reader Scammed By FreeCreditReport.com | Consumerist
US National Bank trying to collect paid-off payday loans
Posted on October 16, 2008According to Consumerist, based on a thread at the DebtConsolidationCare forums, US National Bank somehow acquired a bunch of paid-off payday loan accounts and is trying to collect on them. And their threats are apparently working. The poster on DCC paid them $300 to avoid trouble?including the three felony counts he was threatened with...
5 Memberships Worth Signing Up For
Posted on October 16, 20085 Memberships Worth Signing Up For | SmartMoney
35 Places To Download Free, Legal MP3s - Sorry, RIAA!
Posted on October 16, 200835 Places To Download Free, Legal MP3s - Sorry, RIAA! | Download Squad (via Recording Industry vs. The People)
The credit crisis as Antarctic expedition
Posted on October 14, 2008The credit crisis as Antarctic expedition from Marketplace on Vimeo.
Credit cards at the tipping point?
Posted on October 14, 2008“Misleading practices by credit card issuers will come back to bite them, say report author Gregory Larkin and Laura Nishikawa, as uninformed consumers who wind up facing surprise interest rate hikes and fees will be more likely to default on their loans...
Torching your car is not a financial plan
Posted on October 13, 2008Okay, we all get it. You are sick of driving around in that rolling bad decision of an SUV while your bank account cries out for relief. And hey, you could use a fat insurance check to help you pay down your credit card debt. But burning your SUV is not a good plan...
Bankruptcy: A bankrupt system?
Posted on October 11, 2008Bankruptcy: A bankrupt system? | startribune.com
Wall Street panhandlers
Posted on October 10, 2008Don?t Talk to Him, Honey, He?s a CEO! | Neatorama (via Consumerist)
Chicago sheriff goes rogue, refuses to carry out foreclosure evictions
Posted on October 10, 2008Over-leveraged landlords are losing their rental properties in droves, and banks have no interest in being landlords. As a result, renters are often innocent victims of the foreclosure epidemic. Cook County Sheriff Tom Dart has decided to take measures into his own hands...
Parting thoughts
Posted on October 10, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Well, my friends, this is it. My last day at Caveat Emptor. I would like to thank Sam for the opportunity to share this space and communicate with all of you...
The bankruptcy discharge
Posted on October 09, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Yesterday, I talked about the part of the bankruptcy process you encounter through filing the actual petition for bankruptcy...
Telemarketing counterscript
Posted on October 09, 2008Are you still getting annoying phone calls from telemarketers? Rather than slam the phone down (how rude!), consider asking them a bunch of inane questions. Print out the PDF counterscript and keep it nearby your home (or office) phone. When a telemarketer calls, give them a taste of their own medicine! anti-telemarketing EGBG counterscript | EGBG
Never tell me the odds!
Posted on October 08, 2008I could not figure out who is responsible for this graphic, but this Telegraph article is frequently referenced with it, even though it does not contain the graphic.
Crisis rooted in bankruptcy law
Posted on October 08, 2008“Agreeing with House Financial Services Committee Chairman Barney Frank that the current financial turmoil “was brought on by mortgage foreclosures,” Kentucky’s senior federal bankruptcy judge, Joe Lee of Lexington, also blames a greedy credit industry for selling Congress “a bill of goods” three years ago...
The bankruptcy process
Posted on October 08, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. This week, I have been talking about the bankruptcy process. I have discussed the very earliest parts of the process: actually researching bankruptcy and determining for yourself if it is something you are really [...
After The Bailout AIG Bought Themselves A $440,000 ?Retreat? At A California Resort
Posted on October 07, 2008After The Bailout AIG Bought Themselves A $440,000 “Retreat” At A California Resort | Consumerist
Full disclosure
Posted on October 07, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. So you’ve done some research: you have read about bankruptcy at your local library and you have talked to a few bankruptcy attorneys...
Confessions of a Debt Collector
Posted on October 07, 2008Reporter goes undercover as a debt collector. Confessions of a Debt Collector | Kiplinger (via N2Credit)
New ?Dangers of Debt? cartoon contest
Posted on October 06, 2008Sarah Byrnes of Americans for Fairness in Lending is an occasional guest contributor to Caveat Emptor. Consumers Union recently announced a new ?Dangers of Debt? cartoon contest for young people ages 18 ? 25. The winning cartoonist will receive $1,000 in cash! Not artistically inclined? Check the CU website after November 6th to vote on the winning [...
How to find a bankruptcy attorney
Posted on October 06, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Last week, I focused on talking about the attitudes taken towards bankruptcy. I emphasized that the American form of bankruptcy is fundamentally different from what bankruptcy was prior to the writing of the Constitution...
Debt Collector Uses Consumer?s Debit Card Information for Spending Spree
Posted on October 06, 2008Debt Collector Uses Consumer’s Debit Card Information for Spending Spree | Consumer Law & Policy
U.S. bank failures almost certain to rise in next year
Posted on October 05, 2008U.S. bank failures almost certain to rise in next year | CNN
This American Life explains the financial crisis & the bailout
Posted on October 04, 2008This American Life has done two excellent shows to help ordinary folks like you and me understand the morass that is the U.S. economy. A few months ago, in The Giant Pool of Money, Ira Glass and his crew explained the link between the housing crisis, the turmoil on Wall Street, subprime lending, and more...
Stocks slump despite bank rescue
Posted on October 03, 2008“Dow suffers worst weekly performance since the week after 9/11 attacks, as investors remain fearful about the economy.” Stocks slump despite bank rescue | CNN Money
Struggling couple live in tent with girl, 3
Posted on October 03, 2008Struggling couple live in tent with girl, 3 | CNN
Mortgage forgiven for woman who shot self
Posted on October 03, 2008Too little, too late. Mortgage forgiven for woman who shot self | CNN
Woman, 90, shoots self inside foreclosed home
Posted on October 03, 2008Dennis Kucinich, before voting against the bailout: “This bill does nothing for the Addie Polks of the world.” Woman, 90, shoots self inside foreclosed home | CNN (via Credit Slips)
Five car ailments you shouldn?t ignore
Posted on October 03, 2008Five car ailments you shouldn’t ignore | CNN
Wells Fargo delays overdraft notification emails to maximize overdraft fees
Posted on October 03, 2008For customers who use Wells Fargo’s online account tools, the bank offers email notification when you overdraw your account. Don’t count on it, though. Wells Fargo waits about 48 hours before sending the email, so you will probably rack up extra fees in the meantime.
House passes bailout
Posted on October 03, 2008It’s official. Both houses of Congress have now passed what must surely be one of the most pork-laden bills in U.S. history: the Wall Street welfare bill of 2008. Or the bailout, whichever you like. House passes bailout | CNN
Profiles in bankruptcy: Abraham Lincoln
Posted on October 03, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Welcome to another installment in Profiles in Bankruptcy! Today’s vignette finds us in a grocery store on the prairie where a young man has invested himself in becoming a grocer...
Supreme Court cases I disagree with, part 1
Posted on October 02, 2008With all the stuff about Palin’s inability to come up with any Supreme Court cases that she disagrees with other than Roe v. Wade (though she agreed with its central premise that a right to privacy exists in the Constitution), I started thinking about a few that I don’t agree with or am at least [...
How a bill becomes a law
Posted on October 02, 2008I received an email yesterday from someone asking me about the law making process. Rather than a long, drawn-out explanation with citations to the US Constitution, congressional rules and parliamentary procedure, I hearkened back to the most basic of lessons...
America needs smart, limited, enforceable regulations
Posted on October 02, 2008With all the campaign rhetoric flying around as Congress scrambles to rescue its biggest campaign contributors, it is easy to lose focus on the underlying problem: how did we reach a point where Wall Street fat cats determine the stability of our country and the economic prosperity of regular Americans? When the stability of Wall Street [...
Pinocchio should have declared bankruptcy
Posted on October 02, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. I appear to be on a Walt Disney kick. As with Ursula in The Little Mermaid, Pinocchio presents us with a situation in which a deal is made and then the merchant in the deal decides [...
Store disappears, taking customer?s deposit with it
Posted on October 01, 2008Despite its bright website, hip Berkeley, CA, furniture store The Magazine seems to have dropped off the face of the earth, taking a customer’s 75% deposit on a chic table with it. According to the would-be customer, Jane: I paid 75% of price of table upfront...
Profiles in bankruptcy: Walt Disney
Posted on October 01, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Today’s profile begins on the south side of Chicago where a young boy is born. This young boy, our hero, soon moves to the hard streets of Kansas City where he and his brother become [...
Senate Passes Bailout Plan; House May Vote by Friday
Posted on October 01, 2008Senate Passes Bailout Plan; House May Vote by Friday | New York Times
Foreclosure: preying on the vunerable
Posted on September 30, 2008The StarTribune did a good piece on two vunerable adults who were preyed upon by unscrupulous mortgage brokers and lenders. While this article is about two people who were legally classified as vunerable adults, the reality is that when it comes to understanding personal finance, especially the more complex issues involved in subprime loans, many [...
Tort reform: the 10-minute video
Posted on September 30, 2008Kia Franklin over at TortDeform found this great clip of Mark Wahlstrom and Jan Schlichtmann discussing “Tort Reform” and debunking a number of the myths of tort reform. It includes a challenge from Mark Wahlstrom to his fellow conservatives to stop and look at what is really going on in tort reform and what [...
Bankruptcy: what would Jesus do?
Posted on September 30, 2008Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th. Like I said yesterday, bankruptcy is not a moral issue! It is a business issue! Okay, fine; you’re right. It is a moral issue...
When dealing with credit card companies
Posted on September 30, 2008When dealing with credit card companies - tip the scales in your favor. | getrichslowly.org
Yellow Pages is Paying Bloggers to Say Nice Things About Them
Posted on September 30, 2008This has “desperation” written all over it. Yellow Pages is Paying Bloggers to Say Nice Things About Them | The Deets
The Yellow Pages loves waste: how they fight the ?opt-out movement?
Posted on September 30, 2008Following up his excellent mission to return an unrequested phone book to Verizon, Ed Kohler published a Yellow Pages slideshow called “Dealing With the Opt-Out Movement” (PDF). In the slideshow, the Yellow Pages catalogs their “wins” in preventing states from allowing consumers to opt out of receiving the phone book...
What is money?
Posted on September 29, 2008700 Billion is a lot of money. How do you as consumers get your head around that figure? Well a good start might be with a basic definition of money itself. Here is a good start:
Bailout package: How the Minnesota delegation voted
Posted on September 29, 2008This may be the first time in history that I agree with Michele Bachmann over Keith Ellison. Bailout package: How the Minnesota delegation voted | City Pages Blotter
Wachovia goes under, bought up by Citigroup
Posted on September 29, 2008In a deal brokered by the feds, Citigroup has agreed to acquire the majority of Wachovia, the latest bank to fail. From CNN: Citigroup will acquire the banking operations of Wachovia for $2.2 billion in an all-stock deal, following much speculation over the weekend about the fate of the nation’s fourth-largest bank...
The Little Mermaid goes bankrupt!
Posted on September 29, 2008[Brad Perri is a Minnesota bankruptcy lawyer who will be guest blogging at Caveat Emptor from September 29th through October 10th.] Really? No, not really. But I think it is time for us to change how we think about bankruptcy. After all, what is the normal story you tell yourself when you think about bankruptcy? I imagine if [...
Why Choose a Credit Union Over a Bank
Posted on September 28, 2008Why Choose a Credit Union Over a Bank | Lifehacker
Don?t blame the community reinvestment act (Redux)
Posted on September 26, 2008A companion pice to Nick’s post of earlier today. Earlier this summer the Boston Globe printed a response to an editorial which laid the blame of the current mortgage crisis at the feet of the CRA. Perhaps the best part of the response is the comment that no statistics were provided...
CRA not the cause of the foreclosure mess
Posted on September 26, 2008One of the great shibboleths of the Republicans is that the Community Reinvestment Act, which requires banks that receive FDIC guarentees must actually address the credit needs of the commmunities they are chartered to serve, is the cause of our great foreclosure mess...
Credit reporting and you.
Posted on September 26, 2008The following is a great discussion which took place on Thursday 9/25. For a great instruction on credit reporting and consumers listen here. The interview begins at 59:43 of the 1:19 broadcast segment. If you are concerned about your credit rating and/or report this is a must listen.
Next week: Bankruptcy Week!
Posted on September 26, 2008Brad Perri, a bankruptcy attorney in Minnesota, will be joining us as a guest editor for the next two weeks Bankruptcy is kind of the granddaddy of all consumer protection laws, but we don’t talk about it enough here, since none of the regular editors are bankruptcy lawyers...
Millionaire Claims Ghosts Caused Him to Flee His Mortgage, I Mean Mansion
Posted on September 26, 2008Millionaire Claims Ghosts Caused Him to Flee His Mortgage, I Mean Mansion | Lowering the Bar
Goodbye WaMu, Hello JP Morgan Chase
Posted on September 26, 2008If you were a Washington Mutual customer yesterday, you are a Chase customer today. JP Morgan Chase bought up most of WaMu’s accounts in the biggest bank failure in history. Expect the stock market to limbo to new, lower heights today. What will happen if you are a WaMu customer? Here is what Chase has to [...
Community Reinvestment Act not the cause of the foreclosure mess
Posted on September 26, 2008One of the great shibboleths of the Republicans is that the Community Reinvestment Act, which requires banks that receive FDIC guarantees must actually address the credit needs of the communities they are chartered to serve, is the cause of our great foreclosure mess...
RIAA loses big: Judge Davis overturns $222,000 verdict, calls on Congress to act
Posted on September 25, 2008Judge Michael Davis overturned the obscene $222,000 jury verdict in the Capitol v. Thomas trial with what may become a landmark decision. He ruled the RIAA’s “making available” theory was bogus, and called on Congress to fix the law that made the Thomas verdict possible: The Court would be remiss if it did not take this [...
Washington Mutual death knell
Posted on September 25, 2008Washington Mutual is selling many assets to JP Morgan and opening its doors to the Feds, who will take over what is left of the formerly-huge bank. WaMu’s collapse is the biggest bank failure in history.
A companion piece to the post by Sarah
Posted on September 25, 2008A companion piece to the post by Sarah Byrnes from earlier this week. Ex-bankers on pushing customers to rack up debt | cnn.com
Velshi: Please, keep paying your mortgage
Posted on September 25, 2008Mortgages are moving around, not disappearing. Velshi: Please, keep paying your mortgage | CNN Money
Bailout?s dry run for troubled borrowers?
Posted on September 25, 2008“The FDIC centers its approach on reducing monthly payments (principal, interest, taxes and insurance) to 38 percent of household income. It works with the first mortgage and with people who are delinquent or approaching a higher interest rate. It’s not charging fees or late charges...
The doctor?s bill
Posted on September 25, 2008In depth analysis of the bailout plan: “The chairman of the Federal Reserve and the treasury secretary give Congress a gloomy prognosis for the economy, and propose a drastic remedy.” The doctor’s bill | The Economist (Thanks, Greg!)
Q&A: How bailout affects consumers
Posted on September 24, 2008Q&A: How bailout affects consumers | startribune.com
Let?s all play Wall Street Reckoning
Posted on September 24, 2008Every Senator and Representative should talk this tough. Sen. Dodd and Rep. Frank - you listening?
In Debt? Don?t Let Bill Collectors Bully You
Posted on September 24, 2008In Debt? Don’t Let Bill Collectors Bully You | parade.com
Research Reveals Credit Cards Encourage Spending
Posted on September 24, 2008Research Reveals Credit Cards Encourage Spending | getrichslowly.org
Credit card insiders speak out against abusive practices
Posted on September 24, 2008Earlier this year, former employees of MBNA and Bank of America contacted AFFIL looking for a way to speak out about disturbing sales practices they were trained to use as employees. Their stories confirm what we’ve long suspected: that credit card companies extend credit to those who can’t afford it, and engage in [...
House passes the Credit Cardholders? Bill of Rights
Posted on September 23, 2008One down, one to go. The House of Representatives today passed the Credit Cardholders’ Bill of Rights 312-112, a pretty convincing vote of confidence in the bill. Come on, Senate, get this done! Confirmation should appear on THOMAS shortly. This report comes by way of Cora Ganzglass, NACA’s Legislative Director...
AmeriDebt Returns $13 Million To Debt Management Scam Victims
Posted on September 23, 2008AmeriDebt Returns $13 Million To Debt Management Scam Victims | New York Consumer Litigation
RIAA and 5 years of filesharing lawsuits
Posted on September 23, 2008David Kravets over at Wired Blog Network’s Threat Level has a great piece on the travesty of abuse that is the RIAA’s campaign to go after illicit music downloads. Its been 5 years, with over 30,000 lawsuits filed and one jury trial victory that is likely to be reversed...
Check out I’m a constitution
Posted on September 23, 2008Check out I’m a constitution Voter. Considering the times we should all “rediscover” the Constitution.
Millions at Risk of Foreclosure Fraud
Posted on September 22, 2008Millions at Risk of Foreclosure Fraud | The Red Tape Chronicles
Would you elect (or re-elect) a politician who votes for a bailout?
Posted on September 21, 2008George W. Bush wants to use $700 billion of taxpayers’ dollars to give loans to corporations bogged down by bad debt. Most Americans seem to think this is a terrible idea. Should we, the American taxpayer, invest in the same zombie debt that is leading companies down the road to bankruptcy? R...
U.S. government plans to buy billions in bad bank debt
Posted on September 19, 2008Rather than allow the economy to collapse under its own bloated weight, then allow it to rebuild itself after putting smarter regulations in place, the U.S. government plans to take on billions in bad debt in a massive bank bailout. Here is the big joke that the government is telling to justify the plan: The government would [...
Choose a hospital based on the chance you will die in it
Posted on September 19, 2008If you enjoy morbid statistics, U.S. Department of Health & Human Services has got a website for you. At DHS’s Hospital Compare site, you can figure out (among other things) how many people died from various diseases at hospitals you are likely to visit...
Find the Right Credit Card at BillShrink
Posted on September 18, 2008BillShrink lets you find the right credit card based on your spending and payment habits. Find the Right Credit Card at BillShrink | Lifehacker
Bankruptcy, Takeovers, and Bailouts - Oh My!
Posted on September 18, 2008Bankruptcy, Takeovers, and Bailouts - Oh My! | Queercents
Enacted Payday Lending Legislation - 2008 Session
Posted on September 18, 2008Enacted Payday Lending Legislation - 2008 Session | Nat’l Conference of State Legislatures (via Payday Lending Association)
Predatory Lending Association: dedicated to extracting maximum profit from the working poor
Posted on September 18, 2008The website of the Predatory Lending Association* is chock-full of great information for payday lenders, such as racial profiling tools, tips on lending to members of the military (no, 20 payday loan stores by a military base are not too many), and a working poor finder, which uses Google Maps to help predatory lenders find [...
Stop debt collection harassment
Posted on September 18, 2008This blog has a lot of great information for consumers dealing with debt collection harassment. Here is a roundup of some of the best posts for consumers coping with debt collection: What to do when a debt collector calls Stop debt collector calls with the TeleZapper Debt collection complaints going up; what to do if you get a [...
Wall Street?s losses
Posted on September 18, 2008Screencap of the New York Times’s excellent infographic. The real thing includes a ton of information when you mouse over the squares. A Year of Heavy Losses | New York Times (via BoingBoing)
Relaxation of Regulatory Capital Rules
Posted on September 17, 2008“[T]he Fed seems to be knocking down every firewall that exists in banking regulation in an effort to stanch the current crisis. The danger, of course, is that by demolishing prudential firewalls, the crisis could grow even bigger.” Relaxation of Regulatory Capital Rules | Credit Slips
Commentary: How to prevent the next Wall Street crisis
Posted on September 17, 2008My favorite: 5. We need better consumer protection laws, including laws that prevent predatory lending.” Commentary: How to prevent the next Wall Street crisis | CNN
Some lightweight tips on dealing with debt collectors
Posted on September 17, 2008MarketWatch has an article, “How to deal with a debt collector” that reads like it was written by a debt collector. Read if you like, but the tips you can find on this blog will probably do you more good. How to deal with a debt collector | MarketWatch
Wall Street?s meltdown: deregulation and lack of consumer protection
Posted on September 17, 2008The StarTribune has a commentary on the current turmoil in the financial markets. While the latter half of the commentary turns into an endorsement of Obama,* the first part identifies the cause clearly and concisely: “The banking and investment industries have been inadequately regulated, and consumer protections were diminished...
Victory for consumers; defeat for robo-calls
Posted on September 05, 2008Excellent news for auto dial haters. Victory for consumers; defeat for robo-calls. | MSNBC.com
The Beast That Swallows Its Young
Posted on September 05, 2008For those of us with student loans…enjoy.
Ten home upgrades that actually pay off
Posted on September 05, 2008Real Simple has a list of 10 home upgrades you can make that will actually pay off when you sell your house. Highlights from the list: Painting your house, inside and out (pale yellow homes sell faster and for more money, apparently); Updating the kitchen, as long as you don’t go overboard; Updating a bathroom, again, as long [...
Credit Card Basics: Five Essential Skills for Mastering Plastic
Posted on September 04, 2008In bad times…a little good advice Credit Card Basics: Five Essential Skills for Mastering Plastic | getrichslowly.org
Watch out for credit card hawkers on campus
Posted on September 04, 2008If you’re heading off to college this fall — or taking one of your kids — be sure to watch out for aggressive solicitors offering t-shirts, pizza, Frisbees and even iPods to lure students into signing up for cards: Most people know that college kids are a favorite target of credit card companies...
Which presidential candidate will reign in ridiculous airport security?
Posted on September 04, 2008I don’t know the answer. I don’t think John McCain or Barack Obama have much to say on the issue, but seriously, airport security is getting ridiculous. A bra underwire should not justify private screening (nor should a woman have to remove her bra to pass through security), and mothers should not have to surrender [...
Could government-subsidized financial advice prevent the next recession?
Posted on September 03, 2008In a recent article for the Atlantic on the exuberantly optimistic investing that led to the housing meltdown, Yale economics professor Robert Shiller suggested that the government “should subsidize comprehensive financial advice for low- and middle-income Americans to help prevent bubbly thinking and financial overextension...
5 Legal Tips for Peace of Mind
Posted on September 02, 20085 Legal Tips for Peace of Mind | Zen Habits
CreditKarma.com Makes Free Credit Score More Like FICO?s
Posted on September 02, 2008CreditKarma.com Makes Free Credit Score More Like FICO’s | Consumerist
What To Do If You Find An Error On Your Credit Card Statement
Posted on September 02, 2008What To Do If You Find An Error On Your Credit Card Statement | New York Consumer Litigation
No cash? No problem, if you barter
Posted on September 02, 2008I think I’d rather pay with cash but if you are so inclined… No cash? No problem, if you barter | CNN.com
Debt collection reform pushed by the Minneapolis Star Tribune
Posted on September 01, 2008Close on the heels of the Star Tribune article on Minnesota’s debt-friendly collection laws, the editorial staff urges reform of Minnesota’s unforgiving debt-collection laws. I agree. As I was quoted in the article by Kara McGuire and Randy Furst: “Once you’re in danger of losing money, I think the court should be on top of it...
Direct Line Takes You Straight to an Operator
Posted on August 31, 2008Direct Line Takes You Straight to an Operator | Lifehacker
Credit card industry kills Mythbusters attempt to examine RFID security
Posted on August 30, 2008Credit-card companies killed Mythbusters segment on RFID vulnerabilities | Boing Boing
NWA starts charging today for first checked bag
Posted on August 28, 2008NWA starts charging today for first checked bag | Star Tribune (Thanks, Dave)
Who?s Smiling Now? Enzyte Scammer Gets 25 Years In Prison
Posted on August 28, 2008Not exactly poetic, but justice just the same. Who’s Smiling Now? Enzyte Scammer Gets 25 Years In Prison | Consumerist
Should Biden Share Blame for Foreclosure Crisis?
Posted on August 28, 2008Its good to be a well-informed voter. Should Biden Share Blame for Foreclosure Crisis? | ABCNews.com
Consumers: We?re Mad As Hell And We?re Not Going To Charge It Anymore!
Posted on August 28, 2008Consumers: We’re Mad As Hell And We’re Not Going To Charge It Anymore! | Consumerist
Biden, on the other hand, may be in MBNA?s pocket
Posted on August 28, 2008A son of Democratic vice presidential candidate Joe Biden was paid an undisclosed amount of money as a consultant by MBNA, the largest employer in Delaware, during the years the senator supported legislation that was promoted by the credit card industry and opposed by consumer groups...
If Enough Banks Fail, The FDIC Could Run Out Of Money
Posted on August 27, 2008If Enough Banks Fail, The FDIC Could Run Out Of Money | Consumerist
McCain will not enforce net neutrality
Posted on August 27, 2008Net neutrality is the idea central to the Internet that no content provider should have priority over any other. Consumers pay for the pipeline, which gives access to all the content on the web. There are no back roads online, just one, big, wide, information superhighway...
Debt Reduction Snowball Calculator
Posted on August 26, 2008Great tool for using the “snowball” method to pay off your debt. Debt Reduction Snowball Calculator | Vertex42 (via Consumerist)
For debt collectors, business is booming
Posted on August 26, 2008While many businesses are suffering, the debt collection industry expects to make $14 billion this year, a projected 9.8% growth. “We’re in a record-breaking year,” says Paul Donatio of Transworld Systems, Inc. (recently acquired by NCO Group)...
Bad Credit? Why You Shouldn?t ?Rent to Own?
Posted on August 26, 2008Nice write-up on rent-to-own. Bad Credit? Why You Shouldn’t ‘Rent to Own’ | ABC News
Dollar Duo: Textbook savings and more
Posted on August 25, 2008New vidcast from Star Tribune columnists Kara McGuire and John Ewoldt: Dollar Duo: Textbook savings and more | StribTV
Got bills? Attack the stack
Posted on August 25, 2008“Debt collection can be a stressful, terrifying experience. Know your rights to protect yourself.” Got bills? Attack the stack | ka-Ching!
More on the fake debt collection scam
Posted on August 22, 2008Pete Barry was on the Morning Show with Mike and Juliet this morning. His advice on making sure you are not dealing with a rogue debt collector: make sure you get an address and phone number, at least. But in the end, it can be hard to know whether the collector on the phone is legitimate...
Why the OCC Can?t Be Relied on for Consumer Protection
Posted on August 21, 2008Why the OCC Can’t Be Relied on for Consumer Protection | Credit Slips
Fake Debt Collectors Terrify Consumers
Posted on August 21, 2008“Scammers masquerading as debt collectors and law enforcement officials have terrified consumers with threatening phone calls and bilked them out of thousands of dollars, officials with the West Virginia Attorney General’s Office say. ” Fake Debt Collectors Terrify Consumers | ABC News (via Consumerist)
New video about the mortgage meltdown
Posted on August 20, 2008The California Reinvestment Coalition put together this great little nine-minute documentary about the subprime mortgage meltdown. The focus is on California, but the message resonates anywhere. They include priceless footage from 60 Minutes of Alan Greenspan admitting he didn’t understand what was going on in the mortgage market until way too late [...
FTC Bans Prerecorded Telemarketing Drivel
Posted on August 20, 2008FTC Bans Prerecorded Telemarketing Drivel | /.
8 Tips That Will Keep Your Refrigerator Healthy And Your Bills Low
Posted on August 19, 20088 Tips That Will Keep Your Refrigerator Healthy And Your Bills Low | Consumer Reports (via Consumerist)
Nursing home evictions
Posted on August 18, 2008Nursing home evictions | Wills, Trusts & Estates Prof Blog
Return of the Living Debt: How Lenders Enable Predatory ?Zombie Debt? Collectors
Posted on August 18, 2008Return of the Living Debt: How Lenders Enable Predatory ?Zombie Debt? Collectors | The Mortgage Whistleblower
Delta is Ready with New Fees for Frequent Fliers
Posted on August 18, 2008Delta is Ready with New Fees for Frequent Fliers | Mouse Print
What to do when a debt collector calls
Posted on August 15, 2008Getting a phone call from a debt collector can be very upsetting. Often, they ask for more money than you think you owe or call about a debt you may not remember. But whether or not you owe the debt, there are a few important steps you need to take to make sure you protect [...
Turnabout Is Fair Play
Posted on August 15, 2008The RIAA finally pays $100,000+ in attorney fees, and the recipient is suing the RIAA for malicious prosecution, as well. Turnabout Is Fair Play | Futurelawyer
Stop telemarketing calls (and sue if they keep calling)
Posted on August 14, 2008If you do not already know about the National Do Not Call Registry, hie thee hither and put your name down. Once you are on the registry, telemarketers may not call you for five years. There are a couple of exceptions. Businesses may call you for 18 months after you have bought something from them [...
Stop debt collector calls with the TeleZapper
Posted on August 14, 2008If you are getting phone calls from a debt collector, you should tell them, in writing, that you do not want them calling you. If that does not work, and just want them to stop, the TeleZapper should do the trick. Most collection agencies use automatic—also called predictive—dialers...
Ohio Payday Lenders Caught Lying in Ballot Initiative Signature Drive
Posted on August 13, 2008Ohio Payday Lenders Caught Lying in Ballot Initiative Signature Drive | Consumer Law & Policy
Internet privacy gets Congress? attention
Posted on August 13, 2008Internet privacy gets Congress’ attention | MinnPost
Credit madness
Posted on August 13, 2008“The real crisis is on Main Street: It all comes down to how credit card companies have treated consumers far too poorly for far too long. ” Credit madness | Star Tribune
Caveat Emptor playlist: how to buy a car without getting screwed
Posted on August 13, 2008Top 10 How To Videos | Lifehacker
In Pictures : Mortgage Guidelines Get Tough For All Borrower Types ? Quickly
Posted on August 13, 2008In Pictures : Mortgage Guidelines Get Tough For All Borrower Types — Quickly | Homes and Money
5 Best Coupon-Clipping Web Sites
Posted on August 13, 20085 Best Coupon-Clipping Web Sites | SmartMoney.com
Celebrity Money Mistakes
Posted on August 13, 2008Celebrity Money Mistakes | AOL (via Wills, Trusts & Estates Prof Blog)
Medical debts are covered by the FDCPA, too
Posted on August 12, 2008Although we spend a lot of time on debt collection and credit cards, more consumers are experiencing problems with medical debt than anything else. In fact, some consumers’ credit card debt may be linked to medical bills, as well. The fact that so many Americans cannot afford healthcare is a political problem, but debt collectors [...
Credit repair DIY: fix errors on your credit reports
Posted on August 11, 2008Under federal law, consumers can challenge inaccurate information on credit reports and other consumer reports (such as tenant screening reports). It is free, usually quick, and relatively painless. Plus, there are a lot of great how-to guides on the web...
Debt buyers can?t prove s#!t
Posted on August 08, 2008Imagine you were in the jury box listening to this testimony, which is just the sort of testimony you would expect to hear in a debt buyer case. Why purchasing debt is a bad bet at trial | Michigan Collection Law Blog
Throwdown! Connecticut Sues Countrywide For Deceptive Lending
Posted on August 08, 2008Throwdown! Connecticut Sues Countrywide For Deceptive Lending | Consumerist
Not Good: Fannie Mae Loses $2.3 Billion
Posted on August 08, 2008Not Good: Fannie Mae Loses $2.3 Billion | Consumerist
Oh Sh*t! 40% Of Indiana?s Mortgage Brokers Lose Their Licenses
Posted on August 07, 2008Oh Sh*t! 40% Of Indiana’s Mortgage Brokers Lose Their Licenses | Consumerist
Payday lenders being replaced by credit unions
Posted on August 07, 2008Those who leap to the defense of payday lenders often shout “but there is nowhere else for poor consumers to turn!” Not in Washington, D.C., where payday loan rates were capped at 24% in January. Since payday lenders are able to charge much higher interest rates elsewhere (think well beyond 100% interest), they are leaving...
The Top Personal Finance Blogs by Women
Posted on August 06, 2008The Top Personal Finance Blogs by Women | Queercents
Milwaukee man faces foreclosure because he didn?t pay parking fine
Posted on August 06, 2008Milwaukee man faces foreclosure because he didn?t pay parking fine | Milwaukee Journal-Sentinel
Consumer Product Safety Bill Passes Congress
Posted on August 04, 2008Consumer Product Safety Bill Passes Congress | Consumer Law & Policy
Make Sure Your Free Credit Report Is Actually Free
Posted on August 04, 2008Make Sure Your Free Credit Report Is Actually Free | Lifehacker
Former Countywide Employee Arrested For Stealing, Selling Customer Identities
Posted on August 04, 2008Former Countywide Employee Arrested For Stealing, Selling Customer Identities | Consumerist
Credit card victory for consumer advocates
Posted on August 04, 2008Last week, something happened that hasn?t happened in 20 years: the credit card companies lost a battle in the House Financial Services Committee. Late on Thursday night, the committee voted 39-27 in favor H.R. 5244, The Credit Cardholders? Bill of Rights, a bill supported by consumer advocates including the National Consumer Law Center, Consumer [...
Government To Airlines: Improve Customer Service Or Else
Posted on August 03, 2008[Chinese] Government To Airlines: Improve Customer Service Or Else | Consumerist
Racial bias in mortgage lending
Posted on August 01, 2008It should come as no surprise to anyone that despite laws against discrimination in lending and a few lawsuits, race still plays a role in the quality of loan a person gets. A new report by the National Community Reinvestment Coalition (NCRC) shows that minority consumers, regardless of income level, are most at risk of [...
Sam on credit counseling agencies in Bench & Bar
Posted on July 31, 2008Sam on the dubious value of credit counseling agencies and what to look for when considering referring a client to one. Bottom line: not really worth it. For more information about credit counselors and debt settlement agencies, see Debt settlement companies and credit counselors?are they worth the fee? (Click on the picture for the full article...
Judge Rules That Early Termination Fees Are ILLEGAL In California
Posted on July 31, 2008Judge Rules That Early Termination Fees Are ILLEGAL In California | Consumerist
Man Sets Himself On Fire At Rent-A-Center After Receiving Too Many Late Payment Notices
Posted on July 30, 2008Man Sets Himself On Fire At Rent-A-Center After Receiving Too Many Late Payment Notices | Consumerist
T-Mobile Introduces Month To Month Contracts
Posted on July 30, 2008About effing time!T-Mobile Introduces Month To Month Contracts | Consumerist
Blue Cross Blue Shield Of Georgia Sends 202,000 Letters Containing Personal Information To The Wrong Addresses
Posted on July 30, 2008Blue Cross Blue Shield Of Georgia Sends 202,000 Letters Containing Personal Information To The Wrong Addresses | Consumerist
Everything?s bigger in? Alaska?
Posted on July 30, 2008Or at least credit card debt is, apparently. Our Partner CFED released this data as part of their annual Assets and Opportunities Score Card, showing that Alaska has the highest median credit card debt per borrower in the nation, at $3,384. (For those of you who slept through math class back in the day, medians [...
Bush signs housing rescue law
Posted on July 30, 2008“President enacts controversial measure that aims to help borrowers, bolster the housing market and provide a fail-safe for Fannie and Freddie.” Bush signs housing rescue law | CNN Money
$8,000 debt turns credit card couple onto debit
Posted on July 30, 2008“A study shows more people are doing the same—using cash, not credit. But that kind of fiscal responsibility worries credit card companies.” $8,000 debt turns credit card couple onto debit | CNN
Debt settlement companies and credit counselors?are they worth the fee?
Posted on July 30, 2008Perhaps some are. But when NetDebt charges “15% of the amount of debt you bring to their program (regardless of results or the number of creditors it must deal with), plus a ?small? monthly service fee of $50,” I have to wonder. So if a consumer had $20,000 in debt, he or she would owe $3,000, [...
Delta Makes Woman With Muscular Dystrophy Crawl Off Plane
Posted on July 29, 2008Please please please Sun Country expand your service so I don’t have to fly Delta when they take over Northwest’s routes in Minneapolis. Delta Makes Woman With Muscular Dystrophy Crawl Off Plane | Consumerist
Most People Can Still File Chapter 7 bankruptcies
Posted on July 29, 2008Most People Can Still File Chapter 7 bankruptcies | Bankruptcy and Consumer Information
Fixing our fuel crisis, credit crunch: a new course in home economics?
Posted on July 29, 2008Fixing our fuel crisis, credit crunch: a new course in home economics? | MinnPost
Larry Lessig Netroots Nation Keynote: the Bankrupt Congress
Posted on July 29, 2008Larry Lessig, who seeks to Change Congress by pulling out the special interest money that has eroded the public trust to a measly 9%.
Two banks fail, 90 on FDIC problem list
Posted on July 28, 2008If anyone were still in doubt as to whether or not the United States economy is in recession, the FDIC’s problem list now includes 90 banks at risk of failure. This is not a large number, since there are about 8,500 banks in the country, but it is up from 76 last year...
Grocery Shopping: The Importance of Checking the Price Per Unit
Posted on July 28, 2008Grocery Shopping: The Importance of Checking the Price Per Unit | Queercents
Bank Of America Lets Identity Thief Withdraw $40,000 In A Single Day
Posted on July 27, 2008Bank Of American Lets Identity Thief Withdraw $40,000 In A Single Day | Consumerist
FCC Votes To Punish Comcast
Posted on July 27, 2008As a Comcast customer experiencing serious bandwidth throttling on my home and business connections, I am thrilled with this news. FCC Votes To Punish Comcast | /.
Suspect in Spider-Man clothing sought in Golden Valley motel robbery
Posted on July 26, 2008Disclaimer: I did not even look at the following article, which has nothing to do with consumer law, but does have what may be the best headline I have seen all year. Behold: Suspect in Spider-Man clothing sought in Golden Valley motel robbery | StarTribune
U.S. Foreclosures Double: 1 in Every 171 Households Affected
Posted on July 25, 2008U.S. Foreclosures Double: 1 in Every 171 Households Affected | Consumerist
Olympus phone recording device makes it easy to record phone calls
Posted on July 25, 2008The Olympus TP-7 Telephone Recording Device (clever name, eh?) is probably the easiest way to record phone calls (from an abusive debt collector, for example) that I have seen. You stick it in your ear, plug it into a recorder, hold your phone normally up against your ear with the earbud in it, and it [...
Facing foreclosure, Taunton woman commits suicide
Posted on July 24, 2008“Police say that Balderrama shot herself Tuesday afternoon 90 minutes before her foreclosed home on Duffy Drive was scheduled to be sold at auction. Chief Raymond O’Berg said that Balderrama faxed a letter to her mortgage company at 2:30 p...
Stretch Your Food Dollar: Rethinking Meat
Posted on July 23, 2008Stretch Your Food Dollar: Rethinking Meat | Queercents
Monster Cable still a bunch of jerks
Posted on July 23, 2008Predatory litigator Monster Cable recently withdrew a patent infringement lawsuit after attorneys from local firm Winthrop & Weinstine filed a motion to dismiss. Monster’s Cable was suing Minnesota company Denco for producing Monster Deer Block, a flavored salt and mineral lick designed to attract wild deer...
Warning: Seven signs of too much debt
Posted on July 22, 2008Warning: Seven signs of too much debt | Queercents
10 Things You Might Not Know About Your Credit Card
Posted on July 21, 200810 Things You Might Not Know About Your Credit Card | Consumerist
Beware Long-Term Cardholders With Perfect Payment Histories, Your Credit Lines May Be Slashed
Posted on July 21, 2008Beware Long-Term Cardholders With Perfect Payment Histories, Your Credit Lines May Be Slashed | Consumerist
Credit card tricks and traps to avoid
Posted on July 14, 2008Some of the “tricks and traps” in AFFIL’s Common Credit Cards Tricks and Traps (PDF link) are impossible to avoid. Or nearly so at least. I can’t think of a credit card agreement that does not include a mandatory binding arbitration clause, for example...
Bush Administration Considering A Takeover Of Freddie And Fanny
Posted on July 11, 2008Bush Administration Considering A Takeover Of Freddie And Fanny | Consumerist
6 things you should never say to a car salesman
Posted on July 11, 2008When shopping for a car, the following statements mark you as a big sucker: “I love, love, love this car” “I need to get a car by tomorrow” “I need a monthly payment of . . .” “My trade-in is outside” “I don’t know anything about leasing” “My credit is a little spotty” 6 things never to tell a car salesman | [...
Bad dog! Pooch racks up $142 on a Verizon account
Posted on July 10, 2008Apparently the Lhasa Apso was making phone calls on a Verizon account. Bad dog! (Interestingly, the dog, Andy, apparently does have an American Express card of his own. No word on whether that account is in default.) $142 Collection Bill Sent To Couple’s Dog | KCRA
Common credit card tricks & traps
Posted on July 10, 2008As part of our summer focus on credit cards, AFFIL compiled this list of common tricks and traps (PDF). We all know that credit card contracts are designed to increase the likelihood that cardholders pay high fees and get charged high interest rates...
Obama Losing Voters Over FISA Support
Posted on July 10, 2008Obama Losing Voters Over FISA Support (I may be one of them. I want a president who will protect citizens, not lawbreaking corporations.) | /.
California Foreclosure Law Passed
Posted on July 10, 2008“The thrust of the law is to require mortgage servicers to exhaust all avenues in order to contact borrowers and negotiate modified terms before foreclosing. It also provides limited protections for tenants affected by landlords’ foreclosures and imposes duties on foreclosing servicers to maintain properties...
Are you more likely to discuss your sex life than your credit card debt?
Posted on July 10, 2008Probably, according to a poll by CreditCards.com. Religious views, politics, age, weight and even health problems are more palatable topics of conversation than credit card debt . . . . Not surprising, really, but the poll results do illustrate one of many reasons why so many Americans never deal with their debt problems: most refuse to even [...
Can Prayer Lower Gas Prices? These People Think So
Posted on July 09, 2008Can Prayer Lower Gas Prices? These People Think So | Consumerist
Fed to Issue New Mortgage Lending Regulations Next Week
Posted on July 09, 2008Fed to Issue New Mortgage Lending Regulations Next Week | Consumer Law & Policy
Obama would ease bankruptcy for military, seniors, disaster victims; says McCain backs bankers
Posted on July 09, 2008Obama would ease bankruptcy for military, seniors, disaster victims; says McCain backs bankers | StarTribune
Your landlord could be worse
Posted on July 09, 2008The Macys, a San Francisco couple, bought a million-dollar, six-unit apartment building in San Francisco, and decided to move out all the tenants and raise the rents (this is, of course, illegal in SF, but the Macys are not the sort of people who worry about legalities)...
Managing Debt in Times of Unemployment
Posted on July 08, 2008“Rather than dealing with debt collectors, foreclosure procedures and repossessions, it is best to honestly assess your finances to determine the impact of unemployment. . . . [D]ealing with the issue early on will save lots of money and prevent you from staying up all night worrying about debt...
Financial advisor scams $400k from elderly couple
Posted on July 08, 2008Joseph W. Hughes was a financial services rep for AXA Advisors, and represented an elderly couple. The husband suffered a stroke in 2005, which Hughes took as his cue to start pillaging their account. Instead of investing their money, he spent it on jewels, country club fees, and a 1969 Chevy Nova...
Report: cable more expensive in wake of FCC franchise reform
Posted on July 08, 2008Recognize this pattern? Industry promises that freedom from regulation will lead to lower prices. Government goes along with the plan. Then industry jacks up prices now that nobody can tell it not to. Typical. Report: cable more expensive in wake of FCC franchise reform | Ars Technica
?Zero? chance lottery tickets stun some players
Posted on July 07, 2008If you have no chance of winning the lottery, has the state breached its contract with consumers if it keeps selling tickets? ‘Zero’ chance lottery tickets stun some players | CNN
Debt collectors on the rampage
Posted on July 07, 2008“More consumers are finding themselves the target of aggressive agents who don’t always play by the rules. Here’s what you need to know.” Debt collectors on the rampage | CNN
Gas prices scale record $4.10 a gallon
Posted on July 04, 2008Gas prices scale record $4.10 a gallon | CNN Money
National speed limit pushed as gas saver
Posted on July 04, 2008Virginia Republican Senator John Warner wants to return to the 55 mph national speed limit, which reportedly saved 167,000 barrels a day and 4,000 lives a year while it was in effect. National speed limit pushed as gas saver | CNN
Host a Maxed Out House Party
Posted on July 02, 2008Have you been hoping to catch the documentary Maxed Out but haven’t had the chance? Well here it is! AFFIL and our Partner Consumers Union are sponsoring House Parties around the country this month. Sign up now for a party packet including a free DVD...
Dragged Down by Debt
Posted on July 02, 2008People with shaky credit are getting suckered by risky loans against their paychecks, homes?and even cars. Dragged Down by Debt | Newsweek
Special interests vs. you
Posted on July 02, 2008At Public Citizen’s Watchdog Blog, Graham Steele & David Arkush point out the problematic tendency of the press to treat issues of civil justice as clashes of special interests. Insurance companies vs. trial lawyers. Doctors vs. trial lawyers...
As Foreclosures Escalate
Posted on July 02, 2008“By the time the Senate returns next Monday from its July 4 recess, some 55,000 more homes will have entered foreclosure. And that?s hardly the full picture of the growing calamity. More than three million homeowners are currently at risk of default and millions more are expected to join them in the coming year as [...
Wal-Mart broke Minnesota labor law, judge rules
Posted on July 01, 2008“Wal-Mart broke Minnesota labor law more than 2 million times over six years by forcing some employees to work without breaks and without full pay . . . . The violations carry a penalty of up to $1,000 each, adding up to a potential $2 billion fine ...
Consumer debt an issue for some of state?s congressional delegation, too
Posted on July 01, 2008It’s not just Barack: Consumer debt an issue for some of state’s congressional delegation, too | MinnPost
When good wood goes bad
Posted on July 01, 2008“A Minnesota lumber company accuses industry titan Sherwin-Williams of peddling defective wood coating. And of being a big jerk about it.” When good wood goes bad | City Pages - The Blotter
Angry Consumers Flood Federal Reserve Board with Complaints
Posted on July 01, 2008Press release from Americans for Fairness in Lending. Full release after the jump (it is not yet up on AFFIL’s website, so I cannot link to it). For Immediate Release July 1, 2008 Media Contact: Geoffrey Knox: 212-229-0540 Angry Consumers Flood Federal Reserve Board with Complaints on Credit Card Practices; Over 8,200 Consumers Tell of Abuses (Boston, MA?July 1, [...
The ?other? digital TV conversion might cost you
Posted on July 01, 2008So glad I don’t have cable. Why bother, when local high-def channels come in over the air just fine? The ‘other’ digital TV conversion might cost you | Red Tape Chronicles
Ex Countrywide Manager Exposes Its Lies
Posted on June 30, 2008Today Show: “So, Countrywide employees were coaching them to lie?” Insider: “Yes.” Ex Countrywide Manager Exposes Its Lies | Consumerist
Is it worth trading in your gas guzzler?
Posted on June 30, 2008Itching to get a more fuel-efficient car? Do the math, first. Is it worth trading in your gas guzzler? | Edmunds (via KaBlog!)
Montgomery Ward?s Hacked 6 Months Ago, But Victims Weren?t Told
Posted on June 30, 2008If you shopped at Montgomery Ward’s last year, check your accounts and credit reports. Montgomery Ward’s Hacked 6 Months Ago, But Victims Weren’t Told | Consumerist
Sign up for your TransUnion class action settlement benefits
Posted on June 30, 2008While we are on the subject of keeping track of your credit score, as a result of a bunch of class action lawsuits against TransUnion, virtually anyone who has had a credit card since 1987 can select from several settlement options, including up to nine months of enhanced credit monitoring...
Staycation: staying home is the new vacation
Posted on June 30, 2008Staycation: staying home is the new vacation | Queercents
Free monthly credit score estimates
Posted on June 30, 2008LendingClub and Prosper.com will “grade” borrowers based on Experian data. WaMu credit cards include TransUnion-based monthly FICO scores (although it probably is not worth getting a new card just for that perk). E-Loan Mortgage offers a one-time score based on Experian data But the best one seems to be Credit Karma, which offers a free daily [...
Sunday link roundup
Posted on June 29, 2008I have a backlog of cool articles in my starred items folder in Google Reader. Here they are: Good news from a debt-collection industry source: Collectors Face New Law in Colorado, and NY Considers Debtor’s Bill of Rights | Collection News Countrywide CEO Gave Below Market Rate Loans To Senators From A Special “VIP Desk” | Consumerist Subprime [...
Five cool cell phone tricks
Posted on June 27, 2008Bet you didn’t know your cell phone can (1) reach an ambulance anywhere in the world, (2) unlock your car, (3) go longer with a reserve battery, (4) be disabled remotely if you grab its serial number, and (5) get you free directory information. 5 Secret Things Your Cell Phone Can Do? | Apartment Therapy [photo: freerangestock [...
The Interest Rate Outlook Continues to Improve
Posted on June 26, 2008The Interest Rate Outlook Continues to Improve | Queercents
Citibank considers imitating Gilda Radner
Posted on June 25, 2008Last year, Citi promised its credit card customers that ?A Deal is a Deal? - that they would be getting rid of ?any time for any reason? interest rate hikes. But now that they?re facing financial problems, Citi is reconsidering this pledge. Ed Mierzwinski made the SNL connection in his blog at US PIRG, noting [...
Top 10 Ways to Trick Yourself into Saving Money
Posted on June 25, 2008Top 10 Ways to Trick Yourself into Saving Money | Lifehacker
Hundreds of brokers netted in FBI sweep
Posted on June 19, 2008Hundreds of brokers netted in FBI sweep Arrests include two former Bear fund execs charged with fraud | MSNBC
Former Bear hedge fund managers surrender
Posted on June 19, 2008Former Bear hedge fund managers surrender Ralph Cioffi and Matthew Tannin, who managed Bear Stearns hedge funds before the subprime collapse, charged with lying to investors about mortgage market risk. | CNN Money
Can governments copyright laws? Should they?
Posted on June 19, 2008Can governments copyright laws? Should they? | BoingBoing
Government Foreclosure Rescue Plans are in the Works
Posted on June 19, 2008Government Foreclosure Rescue Plans are in the Works | Queercents
Minnesota is a friendly state?especially if you are a debt collector.
Posted on June 18, 2008In almost every other state, a debt collector must file a lawsuit either immediately or within a short time after serving the summons and complaint. This means the court has an eye on the lawsuit, and the debt collectors must pay the “entry fee” if they want to use the considerable power of the court [...
Anatomy of a Meltdown: The Credit Crisis
Posted on June 18, 2008Anatomy of a Meltdown: The Credit Crisis | Washington Post
Settlement results in free credit monitoring service
Posted on June 16, 2008Settlement results in free credit monitoring service | CNN
Latest Gallup Poll Shows 43% of Americans Pays Credit in Full
Posted on June 16, 2008Latest Gallup Poll Shows 43% of Americans Pays Credit in Full | StopBuyingCrap.com
Quick Thoughts - Superstars Barack Obama and Elizabeth Warren collide, plus new Democratic Hypocrisy
Posted on June 13, 2008Alright, maybe Elizabeth Warren isn?t a superstar to everyone. But she is the unequivocal rock star of the consumer movement. So it is totally appropriate that she?s now palling around with the most rockin? politician since JFK. She appeared with Senator Obama Wednesday in Chicago to discuss credit cards, and I can only imagine the [...
United Airlines To Charge $15 For First Checked Bag
Posted on June 12, 2008United Airlines To Charge $15 For First Checked Bag | Consumerist
Think Twice Before Paying for Credit Protection
Posted on June 12, 2008More on LifeLock. Think Twice Before Paying for Credit Protection | Lifehacker
Tips for Dealing with a Stolen Credit or Bank Card
Posted on June 12, 2008Tips for Dealing with a Stolen Credit or Bank Card | Queercents
Could you live with just 100 things?
Posted on June 12, 2008Dave Bruno thinks he can (not counting shared family things, that is). I’m not sure I could, but I love the idea. I wonder if I could get my wife to go along with it. (Not likely.) Think how much easier it would be to move! Think how much money you would save if you didn’t [...
More on how arbitration screws consumers from Elizabeth Warren
Posted on June 11, 2008More on how arbitration screws consumers from Elizabeth Warren. Have You Already Lost? | TPMCafé
Identity protection ads come back to bite LifeLock CEO
Posted on June 11, 2008Identity protection ads come back to bite LifeLock CEO | BoingBoing
In trouble with an internet payday loan? Change banks.
Posted on June 11, 2008Nathalie Martin at Credit Slips reports that many internet payday loans are illegal and therefore unenforceable. But they can be a big problem, since most automatically deduct their fee from consumers’ bank accounts and roll over without warning...
Chicago courts clogged with collection claims
Posted on June 11, 2008Chicago joins California and Minnesota in the news, as its civil courts try to deal with moving more than 119,000 debt collection lawsuits through the system. With numbers like these, are the court systems becoming just a satellite office for the debt collection industry? It seems so, especially since most courts are giving these lawsuits little [...
Insurance Insider Tells How To Appeal Coverage Denial
Posted on June 11, 2008Insurance Insider Tells How To Appeal Coverage Denial | Consumerist
Surprise: debt causes a lot of stress, which can take a physical toll
Posted on June 09, 2008According to an Associated Press-AOL Health poll, over half of those with debt (i.e., everybody) reported some physical effects of debt-related stress, from muscle tension to migraines, all the way to ulcers and heart attacks. That’s it, Congress, the credit crisis is now a national economic and health problem...
Update: save your money; Citibank will not reopen your HELOC even if you spend $600 on an appraisal
Posted on June 09, 2008According to Glenda, she paid $600 to get her home re-appraised after Citibank suspended her home equity line of credit. All to no avail, as she has been unable to get Citibank to reopen her line of credit, even though the appraisal shows she has equity in her home.
Banks vs. Consumers (Guess Who Wins)
Posted on June 07, 2008“The business of resolving credit-card disputes is booming. But critics say the dominant firm favors creditors that are trying to collect from unsophisticated debtors” Banks vs. Consumers (Guess Who Wins) [BusinessWeek]
Hate your credit card? Tell the Fed
Posted on June 06, 2008The Federal Reserve Board and two other regulators recently surprised consumer advocates by proposing some decent rules that would reform credit card lending. Six AFFIL Partners issued a joint statement calling the proposal as ?an important first step to stop credit card companies from pumping up their profits by using hidden traps and tricks [...
Free credit scores for all consumers? Almost?
Posted on June 06, 2008Get your TransUnion score here! Free credit scores for all consumers? Almost… [The Red Tape Chronicles]
Minnesota has less than half as many mortgage originators this year. Good.
Posted on June 06, 2008In response to the tanking housing market, Minnesota passed some pretty strong mortgage industry regulation last year. Alex Stenback points to an article in the Strib reporting that there are now less than half as many mortgage originators as last year...
“Two defendants have agreed
Posted on June 05, 2008“Two defendants have agreed to settle Federal Trade Commission charges for allegedly victimizing Spanish-speaking consumers nationwide by posing as debt collectors seeking money the consumers did not owe.” Defendants in Debt Collection Scheme Aimed At Hispanics Agree to Settle FTC Charges [FTC News]
Home foreclosures, late payments set records in first quarter of 2008
Posted on June 05, 2008Home foreclosures, late payments set records in first quarter of 2008 [StarTribune]
Arbitration news roundup
Posted on June 05, 2008Last week was quite a week for arbitration. Here was all the arbitration news that popped up here on Caveat Emptor: Mandatory binding arbitration sucks (say 81% of Americans). Taking a look at the U.S. Chamber of Commerce study on mandatory binding arbitration...
What in the world is a credit recession?
Posted on June 05, 2008Apparently it is the reduced availability of credit. Think of it as the natural consequence of the overabundance of credit that tanked our economy in the first place. And it may last for a couple of years. Consider this a good reason to move your finances to a cash model...
Countrywide Is About To Foreclose
Posted on June 04, 2008Countrywide Is About To Foreclose On Ed McMahon | Consumerist
Car Buying 101 on YouTube.
Posted on June 04, 2008Consumers for Auto Reliability and Conscious Youth Media Crew in California put together Insider Car Report a very good quick look at car buying. Its worth a look and of course there are all the link to similar clips.
Vintage debt collection postcards
Posted on June 04, 2008Along with its great article on Pete Barry vs. the debt collection industry, the City Pages dug up a couple of vintage postcards used by debt collectors of yore to shame debtors into paying up. Check ‘em out: The Avenger: Expanded Content [City Pages: The Blotter]
Pete Barry makes dirty debt collectors pay
Posted on June 03, 2008The CityPages just did a feature on my colleague and friend, Pete Barry. Choice quote: “Why did you call my client a lowlife piece of shit?” Barry asked. He was in California, deposing a debt collector who wore a Sean John T-shirt and a look of disdain...
Payday lending interest rates forced down in Ohio
Posted on June 03, 2008On Monday, Ohio Governor Ted Strickland signed a law capping payday loan interest rates at 28% and limiting borrowers to 4 payday loans per year. Previously, payday lenders would charge interest rates close to 400%. Under the new law, they will be limited to 28%, which looks more like a (bad) credit card interest rate...
Homecomings Financial loses (part of) its motion to dismiss consumer fraud claims
Posted on June 02, 2008In a class-action lawsuit against Homecomings Financial, consumers alleged that Homecomings would charge borrowers for unnecessary homeowner’s insurance, fail to process payments on time, forcing borrowers to pay “Speedpay” fees of up to $12...
Prices up, home values down, employment
Posted on May 31, 2008Prices up, home values down, employment dropping slowly and wages lagging: a consumer nightmare. Consumers being squeezed from two sides [MSNBC]
Governor Tim Pawlenty loves the homeless so much he wants more of them
Posted on May 30, 2008The Minnesota legislature put the Subprime Borrower Relief Act on Governor Pawlenty’s desk last week. The Act would have put Minnesota home foreclosures on hold for a year to give homeowners a chance to sell, refinance, or negotiate a workout plan with their lenders...
ABC News: National Arbitration Forum is selling justice
Posted on May 29, 2008Maybe the tide is starting to change. ABC News’ Good Morning America show’s piece on what a scam mandatory arbitration is for credit cards is great. Among its highlights are a women who was harassed and sued for some one else’s debt, and a judge who was black balled for deciding in the consumer’s favor once...
ABC News did a great piece on debt
Posted on May 29, 2008ABC News did a great piece on debt collection, arbitration, and especially the National Arbitration Forum, where consumers in California lose 99% of the time. A former NAF arbitrator says on camera that she was forced to quit for ruling in favor of a consumer one time...
National Arbitration Forum thinks courts should just rubber stamp arbitration awards
Posted on May 29, 2008National Arbitration Forum basically offers a rubber stamp to debt collectors already, and they argue that courts should turn their awards into court judgments without looking too closely. Are courts unreasonably tossing out arbitration awards? Nope. NAF is just advocating for its clients, the debt collectors, who have no proof of the debts on which they [...
National Association of Realtors finally caves on internet listing
Posted on May 29, 2008The Justice Department and the National Association of Realtors reached a tentative settlement in an antitrust lawsuit. The NAR was seriously hampering the ability of newer, lower-cost realtors to list properties for sale online. As anyone who has recently gone house-shopping knows, you have to go to a traditional broker if you want to see [...
Different crowd, same message
Posted on May 28, 2008I recently had the privilege of attending a small conference at UMass/Amherst in honor of progressive financial guru Jane D?Arista. Details about the conference (The Political Economy of Monetary Policy and Financial Regulation) and about its sponsor, the Political Economy Research Institute (PERI), are available here...
Big surprise: greedy subprime security buyers didn?t listen to their own consultants
Posted on May 28, 2008Tracy Warren was a quality-control consultant for Bear Stearns and other mortgage security purchasers on Wall Street. Her job was to review mortgage loans to determine whether they had merit for investment purposes. (She saw the loans after they were made, but before they were sold to investors and led to the national economy’s crash-and-burn [...
A Monster List of Things Monster
Posted on May 28, 2008A Monster List of Things Monster Cable Will Soon Sue [Gizmodo]
Monster Cable is apparently run by douchebags
Posted on May 28, 2008How else could one explain their crusade to sue every other business that uses the word monster anywhere in its name? This includes the Chicago Bears, whose long-time nickname “monsters of the midway” must have been awfully confusing for all those consumers who showed up at Soldier Field looking to by HDMI component cables...
Genetic Information Nondiscrimination Act prevents insurers from using your genes to jack up your premium
Posted on May 27, 2008Insurers would love to assess your risk based your genes. That is, if you were high risk for cancer, your insurer would prefer to charge you a higher premium, since there would be a good chance it will be paying for expensive cancer treatment at some point...
Mandatory binding arbitration sucks (say 81% of Americans)
Posted on May 27, 200881% of Americans polled in a recent study commissioned by the U.S. Chamber of Commerce disapproved of mandatory binding arbitration. This is the corporation-friendly, tie-your-hands arbitration that is written into most of the consumer contracts we sign every day for credit cards, cell phones, etc...
Some scammers in California were
Posted on May 27, 2008Some scammers in California were caught telling groups of Spanish-speaking homeowners in foreclosure that they could transfer their homes to the federal government for $10,000. The scammers are in jail, and the police are trying to find the money. Foreclosure scammers busted in San Diego [California Debt Blog]
Apartment foreclosures multiply homeless and problems
Posted on May 23, 2008When we talk about the foreclosure problem, we usually focus on the effect on the borrower-owner who had a a loan they could not afford. But where the borrower was a landlord, foreclosure causes a raft of problems for tenants, as well. A Star Tribune story on a mass eviction in North Minneapolis illustrates this well...
Minnesota Representative Keith
Posted on May 21, 2008Minnesota Representative Keith Ellison co-sponsors the Internet Freedom Preservation Act of 2008, which, contrary to other high-sounding legislative initiatives, actually does what it says. It would prevent ISPs from discriminating against certain internet traffic based on its content, source, etc...
Maxed Out hits Showtime
Posted on May 21, 2008For those of you with a Showtime subscription, be sure to check out the documentary Maxed Out from the comfort of your own living room this Friday at 7pm. Maxed Out had its TV premier on May 12 on Showtime, and will run three more times: Friday May 23 at 7pm, Monday May 26 at [...
K2 Auto Group: not very nice car salesmen at all
Posted on May 20, 2008In which a Bloomington auto salesperson asks a customer “What the hell would YOU want with a Jaguar? Really, what are you doing here?” K2 Auto Group In Minneapolis Uses The “I Hate You, Get Out” Sales Method [Consumerist]
Minnesota legislature passes Subprime Borrower Relief Act
Posted on May 20, 2008The Subprime Borrower Relief Act gives borrowers with subprime loans the right to defer a foreclosure sale of their residence for one year after the bill becomes law. During the deferment period, the borrower will have to make reduced monthly payments, and a borrower who does not pay will lose the right to deferment...
Countersuits are acceptable losses for debt collectors
Posted on May 20, 2008Speaking of screwing consumers, California consumer lawyer Jonathan Stein has an instructive story on what happens when corporations and debt collectors try to bully consumers into paying debts?even debts they do not owe. His client sold a car that was later involved in an auto accident...
Mortgage servicers make their money by screwing consumers and lenders
Posted on May 19, 2008I was amused to read Mark Ireland’s post saying he came under fire by members of a panel on foreclosures at the recent Equal Justice Conference in Minneapolis for suggesting that mortgage loan servicers are not acting in the best interest of either consumers or lenders...
Two consumer law CLE seminars coming up
Posted on May 18, 2008I am teaching two continuing legal education seminars on consumer law in June. My presentations tend to be engaging (I don’t have the patience for boring presentations even when I am giving them), informative, and well-attended. Register early! June 10th at 9 a...
Student loan ?crisis? just an invention?
Posted on May 14, 2008I just had an interesting chat with Deanne Loonin, a staff attorney at the National Consumer Law Center and one of the nation’s leading experts on student lending law. She was venting her frustration at the recent news cycle about the ?crisis? in student lending...
Mad Cow: A test the Bush Administration doesn?t like
Posted on May 12, 2008Less than 1 percent of slaughtered cows are currently tested for Mad Cow disease under Agriculture Department guidelines, because the agency believes that more widespread testing does not guarantee food safety and could result in a false positive that scares consumers...
Monday consumer blog roundup
Posted on May 12, 2008Here are the blog posts I starred in Google Reader last week. (If you use Google Reader, you can subscribe to my shared items.) The Alphonso Jackson Legacy. Mark Ireland comments on the Washington Post’s look at the legacy of HUD chief (and Bush appointee) Alphonso Jackson...
Pete Barry on abusive debt collectors
Posted on May 07, 2008My officemate, Pete Barry, was on the local Fox 9 News last night in a story about abusive debt collectors, especially one of his clients. The segment includes some of Pete’s “greatest hits” from his cases, including some pretty impressive language and threats.
The New Jersey District Court fined
Posted on May 07, 2008The New Jersey District Court fined two individuals and one corporation $530,000 for calling consumers who registered with the national Do Not Call registry and for spoofing caller ID information. (Telemarketers are required to transmit accurate caller ID information or none at all...
Debt collectors figure out how to close the circle
Posted on May 06, 2008Like a sort of perpetual-motion machine for debt—a perpetual-debt machine, rather—Oregon debt collection agency Genesis Financial Solutions has started issuing credit cards to consumers, with the balance equal to the debt the consumer allegedly owes...
Credit card arbitration: Banks are conspiring against you.
Posted on May 01, 2008That the major credit card issuing banks are conspiring against consumers to force them into mandatory arbitration should come as no surprise to anybody. Why wouldn’t they force people into a system so stacked in favor of the credit card companies that the companies win all but 0...
Perpetual arbitration with National Arbitration Forum
Posted on April 30, 2008I learned a curious fact in the course of an arbitration proceeding with the National Arbitration Forum. Once either party obtains a stay of the arbitration, the opposing party has 15 days to file an objection. After that 15 days is up, apparently only the party that requested the stay can lift it...
The Supreme Court: reality v. fiction
Posted on April 29, 2008I don’t watch legal shows on TV, because they are so far from reality that they make me crazy, but this clip from Boston Legal, is worth watching. It is of course fictional, but as a comment on the reality of the Court it is the cold hard truth, more real than the fictions [...
Capital One charges 70% interest?
Posted on April 29, 2008Boy I hope this is a typo. Click for the actual, redacted statement.
AFFIL?s Jim Campen and Sarah Byrnes join Caveat Emptor
Posted on April 29, 2008I am pleased to welcome Jim Campen and Sarah Byrnes from Americans for Fairness in Lending to Caveat Emptor. Sarah will be posting weekly, and Jim will chime in from time to time, as well. AFFIL stands for the proposition that maybe the lending industry could use a little regulation, after all (hey, Judge Posner thinks [...
NYT on how Moody’s triple-A
Posted on April 28, 2008NYT on how Moody’s triple-A security ratings led to the subprime meltdown. [crosspost: Consumerist]
How much did deregulation contribute to the recession (economic slowdown, whatever)
Posted on April 28, 2008Deregulation refers to the point at which the U.S. government threw up its hands and said “all right banks, power companies, airlines, etc., do whatever you want!” and the deregulated industries had a big party. Eminent jurist and economic theorist Richard Posner says that might have been a mistake: “a tighter ceiling should be placed [...
How the candidates would address the foreclosure crisis
Posted on April 28, 2008Mark Ireland, former Minnesota Assistant Attorney General, took a look at what the three remaining presidential candidates are saying about the foreclosure crisis and translated their campaign-speak into good ol’ American English. According to Ireland’s commentary, only Obama has a real plan...
Travel light: fees for extra luggage multiply like crazy
Posted on April 28, 2008Starting May 5th, Continental, Delta, Northwest, United, and US Airways are limiting coach passengers to one checked bag per passenger. No biggie if you travel light anyway. Business and first-class passengers will get an extra bag or two, but beware of the excess luggage fees...
AT&T and others make you pay for the privilege of paying your bill
Posted on April 25, 2008Want to pay your wireless bill in an AT&T store? That’ll be $2 extra for the “privilege” of handing it to a clerk. Want to pay your credit card bill over the phone? That will be $15. The disparate impact of policies designed to discourage consumers from paying in cash–like the AT&T’s in-store charge–falls squarely on [...
Why few seem to be able to work out better loan terms
Posted on April 25, 2008Call it what you will, the borrower bailout/rescue/whatever <a href=”http://consumerist.com/383131/no-help-for-70-of-homeowners-facing-foreclosure”>does not seem to be working</a>. Foreclosures are still on the rise along with defaults and sad stories...
After a multimillion-dollar verdict, attorneys get fee award, too
Posted on April 24, 2008To add (just) insult to (just) injury, a Florida judge awarded $518,301 to Angela Williams’s attorneys (PDF link). Ms. Williams recently won almost $3 million in a lawsuit against Equifax for Equifax’s refusal to fix her credit report after her identity was stolen...
LendingTree lawyers threaten blogger with defamation
Posted on April 24, 2008Alex Stenback of Behind the Mortgage recently posted the LendingTree data breach story seen here [and here], and his posting attracted a provocative comment regarding LendingTree’s lending practices. In short, the commenter alleged that LendingTree does not let banks compete, but has its own internal lending division (Home Loan Center) that does all the “competing...
More on the HELOC freeze from SmartMoney.com
Posted on April 24, 2008More on the HELOC freeze from SmartMoney.com (with a shout out to yours truly).
Growth in payday lending
Posted on April 23, 2008This Payday America store is going into a huge space across from one of my favorite coffee shops in Minneapolis.
Inexpensive tool for detecting auto fraud
Posted on April 22, 2008This inexpensive (~$15) paint thickness tester is a great way to help detect cars that may have been in accidents, no matter how squeaky-clean their title is. The paint thickness tester takes a reference value anywhere on the vehicle, and then tests other locations for uniformity...
You know who I’ll bet is
Posted on April 22, 2008You know who I’ll bet is really happy about the stimulus checks coming next month? Debt collectors. Tax refund is (usually) happy season for debt collectors, and this year they get two bites at the apple.
Wait, now mortgage lenders are stealing identities?
Posted on April 22, 2008It’s bad enough that identity thieves are now resorting to brick-and-mortar thievery, according to the Red Tape Chronicles, now mortgage lenders are stealing personal financial information, too. Apparently, some former LendingTree employees helped some unnamed mortgage lenders to hack into the LendingTree system and steal information for LendingTree customers from 2006 to early 2008...
700,000 Central Collection Bureau, Inc., accounts vulnerable to identity theft
Posted on April 22, 2008On March 21st, thieves removed eight computers and a server from Central Collection Bureau’s headquarters in Indianapolis. On the server was personal information, including names, addresses, and social security numbers of as many as 700,000 consumers that CCB was collecting from...
A consumer?s guide to the internet
Posted on April 21, 2008The internet holds a wealth of resources for consumers. From bad customer service to your rights under consumer protection laws to how to represent yourself in a lawsuit. It can be difficult to find all of that information, however, so here is a (partial) “beginner’s guide” to consumer information available online...
Congress finally allowed consumers
Posted on April 20, 2008Congress finally allowed consumers to speak out on credit card industry abuses. Alpha Consumer’s Kimberly Palmer was there, and Consumerist has a good summary of the hearing. Now is a good time to write your senators and representative to ask them to support the bill.
Do not give away your identity for a candy bar
Posted on April 17, 2008Infosecurity Europe recently offered a chocolate bar to 576 office workers if they would reveal some personal information. Passwords, dates of birth, names and telephone numbers. In short, more than enough to steal an identity. Sadly, 45% of women and 10% of men happily gave away their passwords for a bit of chocolate! Listen, folks, all [...
Monster Cable sues another little guy?but this one will not be pushed around
Posted on April 15, 2008Monster Cable is?forgive me?a monstrous company. It preys on small companies and any company with the name “monster” in its title, regardless whether a consumer would be likely to confuse Monster Cable’s unnecessarily-expensive cables with, say, a show about cars or vintage clothing...
Consumerism 2.0 a scam?
Posted on April 14, 2008I received an unsolicited e-mail today that has all the hallmarks of a scam, but some hallmarks of a non-scam, and so I am confused. The sender, “Lauren Hackett,” claims to be from Consumer Reports. But her reply e-mail address is @consumer...
Consumerism 2.0 conference a scam?
Posted on April 14, 2008I received an unsolicited e-mail today that has all the hallmarks of a scam, but some hallmarks of a non-scam, and so I am confused. The sender, “Lauren Hackett,” claims to be from Consumer Reports. But her reply e-mail address is @consumer...
Landlord resources
Posted on April 11, 2008Being a landlord is a job that a lot of people seem to just stumble into. So many people who become landlords don’t really know much about landlording. That is too bad, because when landlords do not follow the law, they can create a nightmare for tenants, which sometimes comes back to bite the landlord, [...
Foreclosure prevention: rescission
Posted on April 11, 2008Among all the tools one should consider when facing foreclosure is the right of rescission. Rescission is the right to cancel the contract and unwind everything back to start. While a homeowner may have the right to rescind for a variety of reasons, I want to focus on one, the right of rescission under the [...
Securitization (or, why you can?t work out a lower mortgage payment)
Posted on April 10, 2008“Securitization” is a hot word in money circles, but I don’t think many people outside of Wall Street know what securitization is or what it means. The Wikipedia entry on securitization is very good, but a bit technical. I think I can boil it down a bit more...
The impact of the subprime mortgage squeeze across the U.S.
Posted on April 10, 2008From the New York Times, a beautiful graph (seriously, look at that!) showing the impact of the subprime mortgage mess across the U.S.: (Click for big.) The Twin Cities is definitely one of the hardest-hit, but just look at Florida! [via City Pages, The Blotter]
Update: U.S. Senator Norm Coleman on the Financial Crimes Task Force
Posted on April 09, 2008Maybe Senator Coleman reads this blog, maybe not. In either case, I just received a reply to my e-mail. While the Minnesota Financial Crimes Task Force is obviously a state organization, I wanted to alert my federal legislators to the newly-created void in mortgage fraud enforcement in case they wanted to address it at a [...
Update: Minnesota Senator Linda Berglin on the Financial Crimes Task Force
Posted on April 09, 2008When I write about an issue I tag “consumer activism,” I usually try to start the activism myself. So when I reported that Minnesota’s Financial Crimes Task Force is shutting down its mortgage fraud investigations, I went and fired off an e-mail to my state and federal representatives...
From the comments, it looks like
Posted on April 08, 2008From the comments, it looks like Citibank’s HELOC freeze is causing more than just a few bounced checks. Reader Barbara Clark says Citibank reported the loan as suspended on her credit report, turning it into a major negative account and trashing her credit.
A look inside the credit score cocktail
Posted on April 08, 2008The Red Tape Chronicles recently attempted to explain what goes into the secret formula that determines a borrower’s credit score, the secret formula that determines what consumers pay for loans, credit cards, and even car insurance. Credit scores are important to every consumer’s financial well-being...
Citibank freezes home equity lines of credit nationwide
Posted on April 07, 2008I just spoke with a homeowner who bounced a check to her tree service because Citibank suspended her home equity line of credit before notifying her. When she finally received a notice from Citibank in the mail, it suggests that (PDF link) Citibank is apparently suspending home equity lines of credit nationwide due to [...
Job opening: associate editor
Posted on April 06, 2008We are looking for an associate editor. Since all three of the current writers are also full-time attorneys, we could use a bit of help keeping the news and commentary flowing. This is a paid position. You won’t get rich, but you will gain valuable experience and have the chance to hobnob with the authors, who [...
U.S. Chamber of Commerce fudges the issue on arbitration
Posted on April 06, 2008We have not mentioned the Arbitration Fairness Act in some time, but the AFA is still pending before Congress, and Big Business is still trying to stop it. What is the issue? Mandatory binding arbitration. Nobody thinks arbitration is a problem when two parties agree to it...
New consumer blog: We Are the 90 Percent
Posted on April 04, 2008Sarah Byrnes at Americans for Fairness in Lending just e-mailed me a link to We Are the 90 Percent, “a punk rock academic pursuit.” Usually I wait for newer blogs to show some maturity, but a consumer blog that mentions punk rock and contains a poem for everyone’s favorite bankruptcy law professor, Elizabeth Warren is [...
April foo? darn, missed it
Posted on April 02, 2008There were a lot of good April Fools Day pranks yesterday. My favorite prank was NPR’s Marketplace’s “IRS making sure your rebate gets spent” by sending things it thinks you need. Like an air conditioner or a mountain bike. April 1st comes around like clockwork every year, and every year the internet is gullible as hell...
Bank of America to pay two Countrywide execs $19 million for running company, economy into the ground
Posted on March 30, 2008In an odd sort of thank-you note, Bank of American will give two top Countrywide executives, CEO Angelo Mozilo (pictured) and President David Sambol, $19 million in stocks. Bank of America took over Countrywide, the company made famous by writing loans all but guaranteed to fail...
What would you do if you lost your job?
Posted on March 27, 2008What is your contingency plan if the worst were to happen? In the present economy, everyone needs a backup plan. CNN has a story on Patricia Guerrero, a single mother of two living in Altadena, California. Until Februry, when she was laid off, Guerrero made $70,000 per year...
Minnesota gives mortgage fraudsters a free pass
Posted on March 26, 2008In case you have been living in a box for the last 12 months, mortgage fraud is a big problem. It is very hard, sometimes impossible to help the defrauded consumers, since fraudsters tend to refuse to cooperate in civil lawsuits, and judges are reluctant to compel them to do so...
Like the blog, but keep forgetting
Posted on March 26, 2008Like the blog, but keep forgetting to come back? No problem. Our RSS feed is just a click away. What is RSS? Really Simple Syndication, a way to gather the blogs you want to read in one place, instead of visiting each blog separately. Just clicking on the feed link will give you the option [...
Airplane passengers not entitled to food, water, clean toilets, and fresh air
Posted on March 25, 2008Last year, New York passed its New York State Passenger Bill of Rights which, among other things, requires an airline to provide food, water, clean toilets, and fresh air to passengers trapped in a plane delayed on the ground. The Second Circuit U.S. Court of Appeals put the kibosh on the brand-new Passenger Bill of [...
The remaining presidential candidates on consumer issues
Posted on March 25, 2008We saw that the 2008 presidential candidates seemed generally uninterested in consumer issues when we examined their voting records. However, the three remaining front-runners have been devoting some rhetoric to issues like credit cards and the subprime mortgage mess...
Surprise Surprise . . . mortgage
Posted on March 24, 2008Surprise Surprise . . . mortgage rescue scams on the rise!!! Beware of anyone offering to rescue your home from foreclosure. If you are tempted, find a consumer lawyer to review the deal prior to closing.
Representing yourself in court: staying on point
Posted on March 23, 2008Representing yourself in court–appearing pro se–is one of the more difficult things to do, although many people do not seem to realize it. Judges and attorneys dread the pro se party, however. As I have said before, the court system is a bit like visiting a foreign country...
Debt collection complaints going up; what to do if you get a call
Posted on March 22, 2008According to the FTC, consumer complaints about debt collection abuse were up significantly in 2007 (PDF link). This is hardly surprising, as debt has been plentiful and cheap lately. Complaints will almost certainly go up in 2008, since credit card borrowing is way up along with credit charge-offs.
The U.S. Supreme Court likes business.
Posted on March 21, 2008The U.S. Supreme Court likes business. So much so that it decided 22 of 30 business cases last term unanimously in favor of business, and “Ruth Bader Ginsburg, Stephen Breyer and David Souter each went out of his or her way to question the use of lawsuits to challenge corporate wrongdoing ...
Congress doesn?t care about consumers
Posted on March 17, 2008Or if it does, it is doing a pretty good job of hiding it. Last Thursday the House Financial Services subcommittee was ready to hear testimony of, among notable others, actual consumers concerning the Credit Card Bill of Rights proposed by Representative Carolyn Maloney...
Credit card rates are at a two-year
Posted on March 14, 2008Credit card rates are at a two-year low according to indexcreditcards.com. Now is the perfect time to negotiate a lower rate or jump ship to a better card with a lower rate. [via Alpha Consumer]
Caveat Emptor Playlist: the sub-prime market explained
Posted on March 13, 2008This is at once quite funny and quite instructive.
Cost of hiring an attorney: consumer lawyers vs. regular lawyers
Posted on March 13, 2008In response to Nick’s post in which he asked why people do not call a lawyer, several responded that the cost of hiring an attorney was prohibitive. Let me say this loud and clear: Most consumer lawyers will not charge you for a consultation. Further, most will not charge you for their services unless they win [...
A dialogue with our readers
Posted on March 12, 2008Hey, 2 questions I would like you to answer: 1. What information are you looking for when you come to this website? 2. When people feel that they have been ripped off, defrauded, or harassed enough that they are willing to post a complaint at one of the many websites for complaints, why don’t the at least [...
How to hold onto your security deposit
Posted on March 11, 2008Landlords routinely ask for a security deposit–usually one month’s rent–when renting. The security (or damage) deposit is a way for the landlord to recover for unusual damage. Holes in the wall, for example, or stains in the carpet. It is not a way for a landlord to fix damage that is the result of ordinary [...
Avoid Telephone Bill Scams
Posted on March 10, 2008What You Need to Know About Bogus Charges on Your Phone Bill
Looks like YouWalkAway.com was
Posted on March 06, 2008Looks like YouWalkAway.com was one of those “right place, right time” startups. Bloomberg reports that foreclosures are skyrocketing as more and more homeowners just give up. Mortgages are secured loans, after all. Banks just never counted on having to accept the collateral instead of the payback...
Attention: do not take out a 9-year auto loan (for crying out loud)!
Posted on March 05, 2008Lenders around the country are apparently offering 9-year auto loans mortgages. I am willing to make a sizable wager that 90% or more of the people who take out a 9-year auto loan will be upside-down on their loan when they trade in their whip for a shiny new one...
Minnesota finally sues for breathalyzer source code
Posted on March 04, 2008As in other states, Minnesota courts have started to find that defendants charged with driving under the influence have the right to confront their accuser–in these cases, a breathalyzer. But CMI, the Kentucky firm that makes the breathalyzer unit used in Minnesota, has long refused, resulting in overturned convictions, reinstated licenses, and a lot of [...
Minnesota lawmakers consider three foreclosure bills
Posted on March 03, 2008The proposed bills would work together to address the deepening foreclosure crisis in Minnesota. From the StarTribune: One would prod homeowners facing foreclosure to get help, even forwarding their phone numbers to foreclosure prevention counselors...
More on walking away from your
Posted on February 29, 2008More on walking away from your mortgage from the New York Times. [via Consumerist]
Your attorney general and Better Business Bureau
Posted on February 28, 2008From MSNBC, an interactive map of the attorney general and Better Business Bureau in every state. If you are going to complain, make sure you hit these two, for starters. [via Consumerist]
It is a good idea to check your
Posted on February 27, 2008It is a good idea to check your property for liens every once in a while, which any title company should be able to do. Otherwise, it may be too late when you finally find out that some unscrupulous debt collector placed a lien on your property for an unsecured credit card debt...
Consumers protect yourselves
Posted on February 27, 2008Caveat Emptor–buyer beware. While it isn’t really the law of the land, the public is generally ignorant of the fact that it has rights and there are more than a few judges who are also clueless as to consumer rights, so that too often people get ripped off and abused simply because they don’t know...
Consumer issues are not partisan
Posted on February 27, 2008Consumer issues should not be “red state-blue state” issues. Everyone is a consumer. Republicans, Democrats, independents, Greens, Libertarians, anarchists . . . Everyone. Debt collectors are not out to get Democrats, and mortgage brokers are not selling subprime loans only to Republicans...
Scammer BlueHippo coughed up $5
Posted on February 26, 2008Scammer BlueHippo coughed up $5 million to settle its dispute with the FTC over its uber-expensive, bargain-bin computer “deals.” Next on BlueHippo’s to-do list: settle the class action brought by consumers. [via Consumerist]
Call an attorney already
Posted on February 26, 2008People will sprain their ankle at the supermarket and call an attorney before they leave the store, but will endure months of harassment by a debt collector and never call an attorney who can help stop the harassment and get compensation for the resulting emotional harm...
Debt collectors filed more than 36,000 lawsuits in Minnesota in 2007
Posted on February 26, 2008According to the Strib, debt collection lawsuits and default judgment filings are skyrocketing, and went up to more than 36,000 for 2007. 36,000!!! For crying out loud. That’s 3,000 per month! And those are just the lawsuits that actually get filed...
The economy is tanking, which means
Posted on February 25, 2008The economy is tanking, which means it is time to take a good, hard look at your credit card spending habits to see if they are out of control. [CNN]
Attention Big Business: listen to our complaints and give us what we want
Posted on February 25, 2008Cory Doctorow just published a provocative column in the Guardian, “In Defense of Complaining,” in which he argues that complaints, specifically about crippling technology and licensing restrictions, are part of the marketplace in which companies must operate...
Consumer activism on the rise
Posted on February 25, 2008Consumer activism is in vogue these days. BusinessWeek just ran a story called “Consumer Vigilantes” about consumers who skip the scripted customer service in Bangalore and instead use the web to put their complaint in front of the people who matter...
Payday lending, How much interest would Jesus charge?
Posted on February 22, 2008Apparently the money changers are back in the temple. In a paper to be published this spring in the Catholic University Law Review, professors Christopher Peterson and Steven Graves find a surprising correlation between the geographic density of payday lenders and the political clout of conservative Christians...
Store charge cards will drag down your credit score
Posted on February 22, 2008Nearly every store I walk into has a store charge card. Usually the store will offer 10-20% off of your purchase if you sign up for a card. Big deal. According to Bankrate.com, opening a store card account is an automatic 20-point hit to your credit score...
Beef recall, lack of inspectors leads to cutting corners
Posted on February 22, 2008In another prime example of how the minute the government forgets that it is supposed to be acting for the benefit of we the people, and starts trusting that corporations will watch out for our best interests, we get the beef recall of 143 million pounds from a California meatpacker accused of sending lame [...
Payday lending: what would would Jesus charge?
Posted on February 22, 2008Apparently the money changers are back in the temple. In a paper to be published this spring in the Catholic University Law Review, professors Christopher Peterson and Steven Graves find a surprising correlation between the geographic density of payday lenders and the political clout of conservative Christians...
The housing market mess; connecting some dots
Posted on February 21, 2008It is getting time for a complete overhaul of the whole housing market in the US, rather than just messing with edges. Two different stories in the Minneapolis StarTribune this morning illustrate why. First is the story about all the people applying for Section 8 assistance...
Minnlawpedia, a user-generated repository of Minnesota law and procedure for the non-lawyer
Posted on February 20, 2008The legal system and Web 2.0 still seem largely unaware of one another, although that is starting to change as lawyers and consumers make inreasing use of sites like Avvo, Facebook, Wikipediaand mypractice to find lawyers, to network, and to get information about the law...
The blogosphere is buzzing with
Posted on February 20, 2008The blogosphere is buzzing with the news that President W signed the Do-Not-Call Improvement Act of 2007 into law today, prohibiting the removal of phone numbers from the National Do Not Call Registry. If you have not done so already, add your number to the National Do Not Call Registry.
Predatory lending made worse by Bush Administration
Posted on February 20, 2008In case you missed it over Valentine’s Day, Elliot Spitzer, consumer rights hero, wrote a great J’accuse piece in the Washington Post . In the piece, Spitzer rightfully accuses the Bush Administration through the OCC of actually making the predatory lending problem worse by first trying to ignore the problem, then when the States [...
Barack Obama on the subprime mortgage crisis
Posted on February 20, 2008Here is a short video from Democratic presidential candidate Barack Obama in which he promises to create a ten million dollar fund to help keep people in their homes and a tax deduction for homeowners who do not itemize on their income tax returns. [via Consumer Rights Watch]
Quit Claim: Scams in prime time.
Posted on February 17, 2008You know that a new topic has hit the big time when Law & Order gets hold of it. In the lead-up to the settlement of the writers strike, NBC threw their hat into the ring concerning the current “ripped from the headlines” plot on Law & Order...
CenterPoint Energy drops its credit reporting plan
Posted on February 12, 2008Last October, I posted about CenterPoint Energy’s plan to report delinquent accounts to the credit reporting bureaus. Last Friday, CenterPoint announced a change of plan, saying it will hold off on reporting indefinitely. Consumer groups and advocates for low-income families apparently made the difference: They said it would damage credit records — now used for everything [...
Roundup
Posted on February 12, 2008More news than I can keep up with lately. Here are a few choice tidbits: ‘Zombie debt’: When collectors haunt you (Newsday) Fed’s Rate Cuts Bring No Relief For Consumers’ Credit Card Bills (Washington Post) Killer Credit (In These Times) Suit Alleges Widespread Fraudulent Legal-Aid Scheme (WSJ Law Blog) Major lenders put freeze on foreclosures (CNN/Money)
Preying on the elderly, payday lenders? newest victims
Posted on February 12, 2008How much worse can things get? According to a new article in the WSJ, those wonderful community financial services people, more commonly know as Payday lenders are increasingly targeting recipients of Social Security and other government benefits, including disability and veteran’s benefits...
We just completed our redesign
Posted on February 09, 2008We just completed our redesign by Leanne Wildermuth of E.Webscapes Design Studio! Let us know what you think in the comments.
Payday loans the not so cheap alternative
Posted on February 08, 2008Apparently, all those happy payday loan customers who quickly repaid their loans, avoided disaster and extra costs doesn’t included a lot of people in Utah. In a really great article full of all kinds of interesting facts by the Desert Morning News, their research found that payday lenders have sued nearly 27,000 Utahns for nonpayment since [...
Mortgage Securitizers fiddle as Rome burns
Posted on February 08, 2008The NYTimes has a piece on the 5th Annual Conference of the American Securitization Forum held in Las Vegas. These are the guys who played a major role in bring us the current foreclosure mess. Well while the rest of the country and the world for that matter mucks its way out of the mess [...
Alternatives to Payday loans: Small Dollar Loans
Posted on February 07, 2008In what is hopefully the start of something, the Federal Deposit Insurance Corporation (FDIC) announced the selection of 30 banks to participate in a two-year pilot project to help identify best practices in affordable small-dollar loan programs that can be replicated by financial institutions...
Caveat Emptor playlist: BoA execs singing bastardized version of U2?s ?One?
Posted on February 06, 2008Warning: the following video may make you want to vomit. Choice quotes: “Pick a card that shows your heart and your pride.” “We’ll make lots of money forever, I can sing.” Whiskey. Tango. Foxtrot.
New form: request for validation letter
Posted on February 06, 2008Pursuant to the Fair Debt Collection Practices Act, a debtor has 30 days after the first written communication from a debt collector to request validation of the debt. This form letter is a convenient form for requesting validation of the debt (PDF link)...
Payday loans: countering the spin
Posted on February 05, 2008Elizabeth Warren at Credit Slips (a great blog I just now learned of on credit and bankruptcy by six academics) has a great post touching on some of the payday loan research including the the Center for Responsible Lending (PDF link), the Center for Community Capital (PDF link) and the the bad numbers in the [...
How the candidates stand on the subprime meltdown
Posted on February 05, 2008Bankrate.com highlights the major-party presidential candidates’ stances on the subprime meltdown. Romney, Huckabee, and McCain favor a light touch, perhaps freezing interest rates or offering some aid to borrowers. But they are vague as to what, if anything, they would do...
Payday loans only delay trouble
Posted on February 05, 2008In all the back and forth on payday loans in the press and blogosphere, a study titled NC Consumers after Payday Lending by the Center for Community Capital at Univ. of North Carolina does seem to be getting as much play as it should. Though the Community Financial Services Association of America (CFSA), the trade [...
Debt collectors and wrong numbers: how to handle a case of mistaken identity
Posted on February 05, 2008Debt collection is something that everyone has to deal with. Case in point: a debt collector just left a message on my mom’s answering machine, where I have not lived for eleven years. My credit report is squeaky clean–I just checked–but apparently there is another Sam Glover out there who has worse luck...
Caveat Emptor playlist: the mortgage foreclosure mess explained
Posted on February 05, 2008In Part 1 and Part 3, Sarah Ludwig and Herman De Jesus discuss the foreclosure crisis in New York City. De Jesus points out that subprime loans are the only loans available in many minority neighborhoods. Part 2 features Nerida Soto-Cuccia, an ordinary, well-educated, middle-class homeowner who landed in foreclosure as a result of a subprime [...
Arbitration clauses: no car without one.
Posted on February 04, 2008Mother Jones has a great piece on trying to buy a car without an mandatory arbitration clause. It can’t be done from a dealer, which means no new cars. Try the same thing with cell phones. I asked at Sprint, they said no. (I couldn’t shop around as my wife’s employer will basically only support a [...
F.B.I. opens subprime inquiry
Posted on February 04, 2008I guess better late than never. The NYTimes is reporting that the Federal Bureau of Investigation has opened criminal inquiries into 14 companies as part of a wide-ranging investigation of the troubled mortgage industry. The F.B.I. is supposedly looking into possible accounting fraud, insider trading or other violations in connection with loans made to borrowers [...
Follow up on the ?SHIT FACE? letter
Posted on February 02, 2008The AP reports that the lucky recipient of the “Dear SHIT FACE” letter is planning to sue Nationwide Collections next week. Nationwide’s excuse–”shit happens”–is not likely to hold up in court. (As an aside, are the national media outlets allergic to citing their sources? This blog broke the story, but neither the AP/MSNBC nor ABC deigned [...
Stanley Steemer?s 10% discount is no discount at all
Posted on February 01, 2008My mom sent me an e-mail this morning about Stanley Steemer, who she just hired to clean her carpets. As you can see, they advertise “up to 10% off your order total when you schedule online.” Hmm, “up to?” As it turns out, Stanley Steemer has a minimum charge of $99...
Attention homeowners: your lender can help you avoid foreclosure
Posted on January 31, 2008[Consumer Law & Policy Blog crosspost] According to a Freddie Mac study, 57% of homeowners are unaware of the workout options that could help them avoid foreclosure. And this is an improvement, up from 61% in 2005. Will the lender actually work something out? It’s worth a try, and lenders do know that allowing a house [...
RIAA wants $1.5 million per song
Posted on January 31, 2008Apparently, the RIAA thinks you should have to pay $1.5 million for that copy of MC Hammer’s “Too Legit to Quit” you downloaded for your last 80s party. Google’s copyright lawyer, William Patry, commented that the bill was the most “outrageously gluttonous IP bill ever introduced in the US...
Uncounted: The New Math of American Elections
Posted on January 31, 2008We are all consumers of democracy. Or, at least, we think we are. David Earnhardt’s “Uncounted: The New Math of American Elections” makes a convincing case that voter fraud has been rampant in the last four elections, making U.S. elections worse than elections in many third-world countries...
Comcast now allows customers to opt out of mandatory binding arbitration
Posted on January 30, 2008According to Consumerist, Comcast is now making it easy for customers to opt out of mandatory binding arbitration. This is great news, and a consumer-friendly move from Comcast, which lately is best known for throttling its customers’ bandwidth...
New financial plan: walk away from your mortgage
Posted on January 30, 2008I am torn. I don’t know whether I should post this link or hope it dwindles into obscurity (unlikely). The website says it all: You Walk Away promises to help homeowners walk away from their current mortgage with no debt, no strings, and says ballsy things like this: You will immediately know the exact amount of days [...
I hate candidate (and fundraiser) phone calls
Posted on January 28, 2008‘Tis the season of phone calls from candidates’ phone banks. Or, if you are really lucky, for dumb recordings of candidates’ sound bites. My wife, formerly a fundraiser, tells me that these phone calls are essential to campaigning, whether for political office or for an organizational fund raiser...
Bush may ?fix? the Chinese toy problem by hiring Gail Charnley, who will probably just reassure us that the problem does not exist
Posted on January 28, 2008Gail Charnley is a toxicologist and biochemist, and the head of HealthRisk Strategies, a consulting firm that specializes in risk assessment (apparently for producers of toxic substances). According to the Washington Post, she has opposed stricter emission standards for power plants...
The Story of Stuff with Annie Leonard
Posted on January 26, 2008How is it possible for a radio to cost as little as $4.99? For that matter, how is it possible for a “big ticket item” like a computer to cost as little as $200. It isn’t. Not really. Along the way, all sorts of other costs go into that cheap radio or computer...
36% interest rate cap
Posted on January 26, 2008Over at Consumer Rights Watch, Mark Ireland has stated two truths about Payday lending: 1. Payday lending is a business that simply keeps people in debt, rather than provide them with an emergency safety net, and 2. Only enforcement of a comprehensive interest rate cap at or around 36 percent for small loans will solve the debt [...
Build an economy, not buy one
Posted on January 26, 2008Let’s use the $150 billion currently proposed for rebates and corporate welfare to instead fund an 18-month infrastructure and government-efficiency initiative. That is what Bob MacNeal says in today’s StarTribune. I couldn’t agree more...
New Minnesota consumer website: Consumer Rights Watch
Posted on January 25, 2008Public interest lobbyist Ron Elwood and former Minnesota attorney general Mark Ireland recently started Consumer Rights Watch, a blog on consumer issues in Minnesota. Other than a glaring omission in the links section, it looks like a great blog. Check it out.
Served by a debt collector? What to do next
Posted on January 24, 2008Getting served with a lawsuit is one of the more upsetting things that can happen to you. When the process server hands a summons and complaint to you or to someone “of suitable age and discretion” who answers your door, they are dragging you into the legal system...
Helping the unbanked
Posted on January 24, 2008Bill Clinton and Arnold Schwarzenegger are heading up a great initiative to get people to open bank accounts rather than use check cashing centers etc. that charge what is often a hefty a fee to cash their paycheck. In a commentary in the WSJ, they point out that: the number of check cashers, payday lenders [...
What the Fed rate cut means
Posted on January 22, 2008This morning, the Federal Reserve Board of Governors made an “emergency” rate cut today of .75% to the federal funds rate. (Federal Reserve press release.) The Fed, in addition to everyone else, seems to be worried about the state of the economy and the potential for recession...
Refund anticipation loans are a bad deal
Posted on January 19, 2008The smell of tax returns is in the air, and so is the stink of shysters. Tax season means tax preparers and others are pushing high-cost refund anticipation loans. H&R Block, the popular low-cost tax preparation service, pushes refund anticipation loans on its “Fast Money Options” page...
Why brick-and-mortar stores are dying
Posted on January 15, 2008Oh, there are a lot of complicated economic models to explain why consumers are turning to the internet in ever-increasing numbers to do their shopping, but it seems to me the reason may have more to do with practices like Best Buy’s insistence on collecting phone numbers just so they can send out a pile [...
Debt collectors in the US may not be so bad, after all
Posted on January 09, 2008Not compared with debt collectors in India, anyway. Vinod Kumar was sitting in a friend’s car listening to the radio one evening last January when a stranger appeared, yanked him from the vehicle and beat him with an iron bar. To collect a debt, that is...
Finding lawyers outside Minnesota
Posted on January 06, 2008Occasionally we receive e-mails from someone looking for representation outside of Minnesota. While we try to help everyone we can, we are not licensed in other states, and other states may have very different laws, procedural rules, and legal climates...
Presidential candidates on toy safety
Posted on January 05, 2008[Consumer Law & Policy Blog crosspost] Carey Greenberg-Berger at the Consumerist followed up my digging into presidential candidates’ participation in consumer legislation with some more digging, and looked into the candidates’ rhetoric on toy safety, one of the “hot” consumer issues of 2007...
Mortgage denials for Native Americans
Posted on January 02, 2008In light of all the subprime lending mess, in which “No Doc loan” credit applications were often based on largely fictional income, and brokers and banks where playing all sorts of games to get people into high interest subprime loans, the Fargo Forum analysis of home loan applications for 2006 found that lenders denied one [...
Credit card payoff through debt management/credit counseling programs: be careful!
Posted on January 01, 2008Our next-door neighbor in our office building, Tara McCarthy, was quoted in a Star Tribune article about a family who paid off $35,000 in credit card debt over four years and eight months. John and Cheryl Martin racked up their debt, but, as John said, “we really didn’t have much to show for all the [...
Presidential candidates? votes on 2007 consumer legislation (CL&P Blog crosspost)
Posted on January 01, 2008Cross-posted to Consumer Law & Policy Blog: First, happy New Year and thanks to Deepak for inviting me to take part in the Consumer Law & Policy blog! I am a consumer rights attorney in Minneapolis, Minnesota, and I publish a blog of my own, Caveat Emptor...
Already at ludicrous speed, the RIAA goes a bit faster
Posted on December 31, 2007Mark Frauenfelder of BoingBoing points out that the RIAA’s ludicrous stance on copying CDs for personal use is actually even more ludicrous in light of what they were saying just months ago: The record companies, my clients, have said, for some time now, and it’s been on their Website for some time now, that it’s perfectly [...
RIAA has achieved ludicrous speed
Posted on December 29, 2007In its efforts to bring about the overthrow of copyright protection by adopting arguments more ridiculous than the Bush Administration’s attempts to exclude Dick Cheney from the executive branch, the RIAA is now arguing that it is illegal for you to transfer music from a CD you purchase to your computer for your own, personal [...
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