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Wells Fargo Must Pay Navajo Nation $6.5 Million for Unlawful Practices
Wells Fargo Caught in Illegal Actions AGAIN, this time Against Members of the Navajo Nation
“Wells Fargo’s predatory actions defrauded and harmed the Nation. We held Wells Fargo accountable for their actions and we will continue to hold other companies accountable if their business practices do not respect our people—this puts other companies on notice that harmful business practices against the Navajo people will not be tolerated,” Navajo Nation president Jonathan Nez said in a statement Thursday.
The complaint detailed a long pattern of misconduct by Wells Fargo
Wells Fargo fraudulently opened Navajo Nation accounts (see the same in the 2015 scandal – were Wells Fargo paid $185 million). Wells Fargo charged people for services they did not request and creating fake accounts. In 2018, Wells Fargo reached a $575 million settlement with U.S. states and the District of Columbia.
When will this stop?
Wells Fargo ripped off veterans.
Wells Fargo ripped off students.
Wells Fargo and illegal mortgage kickbacks.
Wells Fargo grilled by Senate for financial scandals
Wells Fargo to pay $385 million for illegal acts.
It seems the only group missing from this list are orphans, but we probably have not found that yet. After all who speaks out for orphans?
MUSINGS FROM DIANE:
I have to ask – how many of you believe the bank’s excuses? Personally, I think Wells Fargo believes no regulator can reach them and that it can bully anyone – consumer or politician. It has gotten away with this type of behavior for so many decades that it was certain no one could touch them.
Enough is enough. I moved all our accounts, both personal and business, out of Wells Fargo and encouraged all my family and friends to do the same. Do you really want to bank somewhere that sees their customer’s pocket books as money for the taking? I call it grand theft, which is a felony.
How Can I Help You?
The post Wells Fargo Rips Off Navajo Nation appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
New Law Helps Disabled Veterans in Chapter 13 Plans Disabled veterans facing bankruptcy, got a big boost yesterday when the HAVEN Act became law. From now on, disabled veterans can’t be forced to use their veterans disability payment to fund debt repayment plans. Here in Northern Virginia, there are many disabled veterans, who are also […]
The post New Law Helps Disabled Veterans in Chapter 13 Plans by Robert Weed appeared first on Robert Weed - AE.
Shenwick and Associates would like to acknowledge and say thank you to Startup Stage
https://remotedesktop.google.com/access/session/07bec0c0-d606-eea2-8313-d9f7c5aaa1e3
From: Acumen | OZY
By: Patti Waldmeir
https://www.ozy.com/acumen/who-goes-bankrupt-in-america-increasingly-the-elderly/96096
Zombie Debts – How Debt Collectors are Tricking Consumers
Can a debt come back from the dead? Yes, it is referred to as a ‘zombie debt’.
Most states have ‘statute of limitations‘ which control the creditor’s or collection company’s rights, including whether they can sue on a debt.
How is a debt revived?
Collection companies will do anything in their power to revive a dead debt (one outside the statute of limitations). They know the debt is uncollectable, but the collection company is not going to tell the consumer. Instead, they bully the consumer into paying “just a few dollars”. The consumer thinks this is an innocent way to hold off the debt collector, but what they don’t know is this just revived the debt so the current debt or future collector can sue for the full amount. So, paying a few cents can cause a debt to rise from the dead and haunt the consumer for many more years.
According to the Washington Post every year this results in “tens of billions of dollars” that were past the statute of limitations. See report by Receivables Management Association International.
Tricking the consumer into reviving old debts
The complicated nature of the law can leave consumers at a disadvantage and lead to what is known in the industry as “duping,” or tricking the consumer to revive old debts, said Marc C. McAllister, a professor at Texas State University who wrote the 2018 paper “Ending Litigation and Financial Windfalls on Time-Barred Debts.”
Lots of scams to revive old debts:
Jefferson Capital Systems, a debt collector, offered people with zombie debts a new credit card. What the borrowers were not told is they were enrolled in a repayment program for their old bills, the Federal Trade Commission found. The first payment resulted in the zombie debt coming back to life. (Note – supposedly Jefferson is no longer doing this, but I have to wonder if we just have not found their latest ploy.)
Encore Capital Group and Portfolio Recovery Associates, fined by CFPB $80 million after they sent thousands of letters to consumers offering to “settle” their old debts without explaining that the payments would revive the old debts.
Consumers do not understand their legal rights
There are many reasons why a consumer cannot pay a debt – illness, unemployment, divorce, fraud, death of a spouse, etc. All consumers need to understand their rights and not rely on the honesty of a creditor or debt collector. After all, the collection company makes a huge profit in collecting debts. Many times the collection agents are paid a large percentage of the funds collected.
According to Professor McAllister “If you’re unsavvy and don’t really understand what’s going on, you might agree to make a $10 payment just so they will stop calling,” he said. “Now the entire amount has been revived, and they can sue you for the entire amount.” Read his article: “Ending Litigation and Financial Windfalls on Time-Barred Debts.”
MUSINGS FROM DIANE:
Why do people and companies find it necessary to bully, lie, defraud, cheat or steal from others? Do I believe that we should pay our bills? Absolutely!! Do I understand that no one can control their future? Certainly!! Laws were created to provide guidelines for us all and/or protect those who cannot protect themselves. When a person or company chooses to ignore the law in order to pad their own pockets – that is pure evil.
How Can I Help You?
The post Zombie Debt: collectors tricking consumers appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
ITT Educational Services, Inc. to Pay $60 Million Judgment for Defrauding Students
ITT Accused of Unfair, Deceptive and Abusive Acts or Practices
The Consumer Financial Protection Bureau (Bureau) proposes settlement with ITT Educational Services, Inc. — ITT engaged in unfair and abusive practices in connection with its private loan program in violation of the Consumer Financial Protection Act of 2010.
ITT Knew Students Could Not Afford and Did Not Understand the Loans
The Bureau’s complaint, filed in the U.S. District Court for the Southern District of Indiana in 2014, alleges that ITT helped to create private loan programs for students at ITT Technical Institute, the school run by ITT until it filed for bankruptcy and ceased operations in 2016. The Bureau alleges that ITT improperly induced students to take out those loans to pay the tuition amounts not covered by loans or other tuition assistance from the federal government. The Bureau’s complaint also alleges that ITT knew that the student borrowers did not understand the terms and conditions of the loans and could not afford them, resulting in high default rates and other negative consequences.
The terms of the proposed stipulated order include, among other things, a judgment against ITT for $60 million and an injunction prohibiting ITT from offering or providing student loans in the future.
Student CU Connect, CUSO, LLC to Cease Collection Student Loans:
Pursuant to the Stipulated Final Judgment and Order in Bureau of
Consumer Financial Protection v. Student CU Connect CUSO, LLC, No. 1:19-cv-02397-JRS-DLP (S.D. Ind. June 20, 2019), CUSO has ceased collection of the CUSO Loans and has agreed to permanently cease enforcing, collecting, or receiving any payment on CUSO Loans.
Loans were unenforceable due to illegal business practices and misconduct.
ADDITIONAL ARTICLES:
The post ITT Rips Off Students – $60 Million Judgment appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
From: New York Post
By: John Aidan Byrne
https://nypost.com/2019/08/11/bankruptcy-filings-rising-across-the-country-and-it-could-get-worse/
From: Business Insider
By: Hillary Hoffower
https://www.businessinsider.com/more-baby-boomers-in-debt-filing-for-bankruptcy-2019-8
from Courthouse News Service
https://www.courthousenews.com/nyc-cap-on-ride-hail-vehicles-made-permanent/
.Part I of this short series on real estate transactions (read it here) talked about the title to the property. We saved title insurance for Part II. It’s its own animal.
Title insurance protects the buyer and the mortgage lender in the event a future problem is found with the title. Having an experienced Wisconsin real estate attorney on board early reduces the possibility that a problem will be found later. An experienced Wisconsin real estate attorney explains the title commitment to you. Most importantly, the attorney makes sure you understand liens, easements, and deed restrictions which remain on your property after purchasing.
Forgery, Fraud, and Heirs, oh my
Title insurance insures the piece of property with regard to claims, rights, and liens against the home or property being purchased. These claims sometimes include fraudulent titles, forged signatures, undisclosed heirs to the property, or spousal claims from ex’s. When a home is in a subdivision or is a condominium, the title insurance lists all the restrictions and covenants (rules) of the subdivision or condominium.
When Wynn at Law, LLC reviews the title, we will consult with our clients so they are aware of any title issues. The insurance, by the way, is optional if the buyer isn’t financing the purchase. A policy covering the mortgager is required by every lender when a home or second home is mortgaged or refinanced.
Three take-homes from this article:
First, from a buyer’s perspective, a buyer’s or owner’s title insurance policy is recommended even if there’s no lender involved. It is worth the relatively low cost in our experience and, customarily, the seller pays for the policy. It’s peace of mind.
Second, as the first article pointed out, when Wynn at Law, LLC is involved, our title review with the client is thorough. That doesn’t eliminate the need (or requirement) for title insurance. A mortgage company is going to protect itself. More importantly, the owner’s title insurance is like the shell on an egg – many people consider the purchase of their primary home and a vacation property as the nest egg worth protecting.
Third, the real estate attorney is not the insurer and has no role in issuing the policy or recommending a carrier. The title company or the mortgager does that. Wynn at Law, LLC does review the insurer’s title commitment with you.
Image by Aleksandar Stojanov, used with permission
The post The Real Estate Transaction, Part II: Title Insurance appeared first on Wynn at Law, LLC.
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