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Elkhorn, Wisconsin residents seeking debt relief or a debt settlement company must heed the old saying, “If it sounds too good to be true, then it probably is.” Unfortunately, there are a lot of dishonest companies in this world and some of them hail from the State of Wisconsin. According to the Wisconsin State Court of Appeals, a Wisconsin debt settlement company must pay its customers back $4.2 million in debt settlement service fees.
The Wisconsin debt settlement company of Morgan Drexen, Inc. advised its customers to stop paying all creditors. Instead, Morgan Drexen took the money and placed it into an account which Morgan Drexen controlled. Once a client’s “account” accumulated enough funds necessary to buy down debt, Morgan Drexen would negotiate settlements with its clients’ creditors, pay said creditors, and then pay themselves a fee for their service. Morgan Drexen, Inc. operated under this practice for five years, during which time they received $8 million from their Wisconsin client. They paid themselves $4.2 million, over half of all fund received.
Morgan Drexen, Inc. was accused of operating without a license. They argued the case, but a hearing examiner ordered them to return the $4.2 million and pay an additional $1.89 million for breaking the law. The case went to the District II Court of Appeals. The Appeals Court ruled that the hearing examiner did not err in determining Morgan Drexen violated the law.
It actually sounds like pretty good plan, right? I slowly pay a company “x” amount of dollars until I have saved enough to settle all my debts. The company does this on my behalf and takes their fee. No fuss. Easy. That’s where the old saying comes into play. It sounded too good to be true. And, so it was. They were violating the law and operating without a license. In addition, clients were paying far more money than it took to settle the clients’ debts, as over half of the money Morgan Drexen took in went straight into their own pockets.
This is a good time to warn Elkhorn, Wisconsin residents who are seeking debt repair or debt settlement help to be cautious. Research a company before doing business. Ask peers and family members for recommendations. Check the Better Business Bureau ratings. Search for reviews online. Better yet, work with someone local who you know and trust. If you do your homework, you are less likely to fall victim to an Elkhorn debt settlement scam.
Contact Our Elkhorn Debt Repair Attorney
If you have questions about debt repair or debt settlement, contact the offices of Wynn at Law, LLC. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Elkhorn debt repair attorney by phone at 262-725-0175 or by email via our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
Admitting it was a "bad boy" handling mortgages in bankruptcy, Chase recently entered a settlement with the federal government to compensate more than 25,000 US homeowners. The settlement is subject to court approval.
The United States Trustee Program, a unit of the Department of Justice whose attorneys at the bankruptcy court oversee the integrity of the system, announced on March 3 it had reached an agreement with Chase forcing it to pay homeowners $50 million in cash, mortgage loan credits and loan forgiveness for "robo-signing" and other improper practices before the bankruptcy court. Chase also agreed to change internal operations and submit to the oversight of an independent compliance reviewer.
Chase admitted it submitted more than 50,000 mortgage "payment change notices" that were signed by persons who had no knowledge of the accuracy of the notices they signed:
- More than 25,000 of the notices were signed by employees or former employees who had nothing to do with reviewing the accuracy of the notices.
- The rest of the notices were signed by employees of third party vendors who also were not involved in verifying the accuracy.
Chase also admitted it failed to file the notices in a timely fashion, as well as failing to provide timely escrow statements to homeowners in bankruptcy.
"It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did," said Acting Associate Attorney General Stuart F. Delery. "Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them."
"This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress," stated U.S. Trustee Program Director Cliff White.
Under the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute's endowment for financial education and support for the Credit Abuse Resistance Education Program.
If approved by the court, homeowners will get notification from Chase to any relief for which they are eligible.
If you have questions or concerns about your situation, contact our law office.
Admitting it was a “bad boy” handling mortgages in bankruptcy, Chase recently entered a settlement with the federal government to compensate more than 25,000 US homeowners. The settlement is subject to court approval.
The United States Trustee Program, a unit of the Department of Justice whose attorneys at the bankruptcy court oversee the integrity of the system, announced on March 3 it had reached an agreement with Chase forcing it to pay homeowners $50 million in cash, mortgage loan credits and loan forgiveness for “robo-signing” and other improper practices before the bankruptcy court. Chase also agreed to change internal operations and submit to the oversight of an independent compliance reviewer.
Chase admitted it submitted more than 50,000 mortgage “payment change notices” that were signed by persons who had no knowledge of the accuracy of the notices they signed:
- More than 25,000 of the notices were signed by employees or former employees who had nothing to do with reviewing the accuracy of the notices.
- The rest of the notices were signed by employees of third party vendors who also were not involved in verifying the accuracy.
Chase also admitted it failed to file the notices in a timely fashion, as well as failing to provide timely escrow statements to homeowners in bankruptcy.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” stated U.S. Trustee Program Director Cliff White.
Under the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
If approved by the court, homeowners will get notification from Chase to any relief for which they are eligible.
If you have questions or concerns about your situation, contact our law office.
Admitting it was a “bad boy” handling mortgages in bankruptcy, Chase recently entered a settlement with the federal government to compensate more than 25,000 US homeowners. The settlement is subject to court approval.
The United States Trustee Program, a unit of the Department of Justice whose attorneys at the bankruptcy court oversee the integrity of the system, announced on March 3 it had reached an agreement with Chase forcing it to pay homeowners $50 million in cash, mortgage loan credits and loan forgiveness for “robo-signing” and other improper practices before the bankruptcy court. Chase also agreed to change internal operations and submit to the oversight of an independent compliance reviewer.
Chase admitted it submitted more than 50,000 mortgage “payment change notices” that were signed by persons who had no knowledge of the accuracy of the notices they signed:
- More than 25,000 of the notices were signed by employees or former employees who had nothing to do with reviewing the accuracy of the notices.
- The rest of the notices were signed by employees of third party vendors who also were not involved in verifying the accuracy.
Chase also admitted it failed to file the notices in a timely fashion, as well as failing to provide timely escrow statements to homeowners in bankruptcy.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” stated U.S. Trustee Program Director Cliff White.
Under the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
If approved by the court, homeowners will get notification from Chase to any relief for which they are eligible.
If you have questions or concerns about your situation, contact our law office.
Admitting it was a “bad boy” handling mortgages in bankruptcy, Chase recently entered a settlement with the federal government to compensate more than 25,000 US homeowners. The settlement is subject to court approval.
The United States Trustee Program, a unit of the Department of Justice whose attorneys at the bankruptcy court oversee the integrity of the system, announced on March 3 it had reached an agreement with Chase forcing it to pay homeowners $50 million in cash, mortgage loan credits and loan forgiveness for “robo-signing” and other improper practices before the bankruptcy court. Chase also agreed to change internal operations and submit to the oversight of an independent compliance reviewer.
Chase admitted it submitted more than 50,000 mortgage “payment change notices” that were signed by persons who had no knowledge of the accuracy of the notices they signed:
- More than 25,000 of the notices were signed by employees or former employees who had nothing to do with reviewing the accuracy of the notices.
- The rest of the notices were signed by employees of third party vendors who also were not involved in verifying the accuracy.
Chase also admitted it failed to file the notices in a timely fashion, as well as failing to provide timely escrow statements to homeowners in bankruptcy.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” stated U.S. Trustee Program Director Cliff White.
Under the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
If approved by the court, homeowners will get notification from Chase to any relief for which they are eligible.
If you have questions or concerns about your situation, contact our law office.
JP Morgan Chase Lies in 50,000 Bankruptcy Cases JP Morgan Chase today admitted they lied in 50,000 bankruptcy cases. Chase filed sworn statements in 50,000 bankruptcy cases, signed by people who had no idea what they were signing. Some were “signed” by people who no longer worked at Chase. Here’s the Justice Department announcement. Chase […]The post Biggest Bank in America Lies in Bankruptcy Cases by Robert Weed appeared first on Robert Weed.
Filing Bankruptcy Can be Good for Your Credit Score Last week, The Federal Reserve Bank of New York published a study of people who did, and didn’t, file bankruptcy. The results didn’t surprise me, but they might startle you. Comparing people in financial trouble who filed bankruptcy and people who kept struggling, these economists who […]The post Filing Bankruptcy Can be Good for Your Credit Score by Robert Weed appeared first on Robert Weed.
The Repo List It seems like in these tough economic times, there are more and more people driving around town worried about the repo man. After all, you don’t have to fall very far behind in your car payment to have the creditor calling you day and night about your payment. From there it’s only+ Read More
The post Don’t Fear The Repo Man (It’s Still Your Car) appeared first on David M. Siegel.
Did you recently abandon or move out of a property going through foreclosure in Walworth County? Are you a financial institution left with an abandoned property going through a Walworth County foreclosure? A recent Wisconsin Supreme Court decision could have interesting ramifications for both banks and homeowners. The decision states that mortgage lenders must sell foreclosed and abandoned property within a reasonable time after obtaining a foreclosure judgment. The “reasonable time” period will depend on the circumstances surrounding the foreclosure.
The Story Behind the New Walworth County Abandoned Foreclosure Law
The decision came after a Milwaukee home was abandoned following a bank foreclosure process. The homeowner walked away. The bank did nothing. The home was then burglarized and vandalized as well as never properly maintained. The property became invaluable and not worth the bank’s time and money to sell. The home then racked up fines due to violating city codes. The homeowner was held responsible. Despite the homeowner’s attempt to declare the property abandoned, it never happened. The Circuit Court declared it did not have the authority to label a home abandoned.
Fast forward to just last week: In Bank of New York Mellon v. Carson, 2015 WI 2015 (Feb. 17, 2015), a four-justice majority ruled that section 846.102 authorizes circuit courts to order mortgagee banks to sell abandoned foreclosures, and must order sales within a reasonable time. Now, it will be a requirement that foreclosed and abandoned property be sold by banks. You can expect a large amount of properties to be placed on the real estate market in Walworth County following this Wisconsin Supreme Court case.
Homeowners must be aware that, if you abandon your property, you are declaring that you no longer have an interest in retaining the property. Therefore, the bank can and must sell the property without any long delays which previously gave homeowners an opportunity to redeem or refinance.
The purpose of the decision is to help local communities deal with abandoned properties in a timely manner before the properties attract burglars, vandals, and other criminals. The new decision will also help homes be sold before they become decrepit and face city code violations. Vacant properties have a negative impact on our local communities when they are used for the wrong purposes.
Contact Our Walworth County Foreclosure Attorney
If you represent a bank tackling an abandoned foreclosure or if you are a homeowner facing a Walworth County foreclosure or a Kenosha County foreclosure, contact Wynn at Law, LLC. We help financial institutions and homeowners through the foreclosure process. Our Walworth County foreclosure attorney can answer all your foreclosure questions. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Walworth County foreclosure attorney by phone at 262-725-0175 or by email via our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
Oregon student loan debtors breathed a sigh of relief this week when the Department of Education announced that it was finally firing five debt collection agencies that had been giving inaccurate information to student borrowers. I say finally firing these agencies because the department had been under fire for years for its partnership with these agencies and its insistence on paying them roughly a billion a year to harass student loan borrowers.
The Department of Education ultimately found that Pioneer Credit, one of their largest collection partners, and four others had been regularly doling out inaccurate information about the department’s loan forgiveness program. Due to incentive-pay structures, the debt collectors had little incentive to rout student loan debtors into loan forgiveness programs and often misinformed debtors to keep them outside the loan forgiveness programs.
The original post is titled Good News for Oregon Student Loan Debtors , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
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