Blogs
Cash Tyme Must Pay $100,000 for Failure to Follow the Law
The Consumer Financial Protection Bureau (Bureau) 2/5/2019 announced a settlement with Cash Tyme, a payday retail lender with outlets in Alabama, Florida, Indiana, Kentucky, Louisiana, Mississippi, and Tennessee. Cash Tyme is the operating name for CMM, LLC, and its wholly owned subsidiaries in those states.
According to the consent order, the Bureau found that Cash Tyme violated the Consumer Financial Protection Act of 2010 by:
- Failing to take adequate steps to prevent unauthorized charges;
- Failing to promptly monitor, identify, correct, and refund overpayments by consumers;
- Making collection calls to third parties named as references on borrowers’ loan applications that disclosed or risked disclosing the debts to those third parties, including to borrowers’ places of employment as well as to third parties who were themselves harassed by such calls;
- Misrepresenting that it collected third-party references from borrowers on loan applications for verification purposes, when in fact it was using that information to make marketing calls to the references; and
- Advertising unavailable services, including check cashing, phone reconnections, and home telephone connections, on the storefronts’ outdoor signage where such advertisements contained information that was likely to be deemed important by consumers and likely to affect their conduct or decision regarding visiting a Cash Tyme store.
Failure to provide initial privacy notices to borrowers and failed to follow the Truth in Lending laws.
Also, the Bureau found that Cash Tyme violated the Gramm-Leach-Bliley Act and Regulation P by failing to provide initial privacy notices to borrowers. The Bureau also found that Cash Tyme violated the Truth in Lending Act and Regulation Z when it failed to include a payday loan fee charged to Kentucky customers in the annual percentage rate (APR) in loan contracts and advertisements, and rounded APRs to whole numbers in advertisements; and when it published advertisements that included an example APR and payment amount that was based on an example term of repayment, without disclosing the corresponding repayment terms it had used to calculate that APR.
Under the terms of the consent order, Cash Tyme must, among other provisions, pay a civil money penalty of $100,000.
Copy of the consent order
MUSINGS FROM DIANE:
Who uses payday or title loan companies? Typically the most desperate who have no other place to go for money to pay necessities, such as food, rent or a car loan. What happens when they sign this type of outrageous loan? The borrower finds that the terms of the loan were lies. They end up borrowing more money to pay the loans, while not paying their rent or mortgage and not buying food. If it was a car title then they will lose their car.
It appears that the cost of payday and title loans is as much as 400% to 700% interest. Most state laws would not allow this type of loan, but the payday loan companies have taken these loans to states that permit this type of lending, or to foreign countries, or Indian reservations. Doubt me? Read the links below.
How Can I Help You?
The post Cash Tyme Agrees to Pay $100,000 – Failure to Follow the Law appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Debt Collectors Cannot Yell, Curse or Threaten You
There are Rules Governing Debt Collectors
Debtor collectors are not allowed to call you before 8 am or after 9 pm (your time zone, not the caller’s). They cannot yell, swear, use crude language or threaten you in any way or do anything else that could be seen as harassment. Nor can they threaten to do something that they are not legal allowed to do – such as come to your home and take your property (without the appropriate court order). The FDCPA is a federal law that limits what debt collectors can do.
Fraud, Identity Theft, Phantom Debt and Others
According to Consumer Sentinel’s 2018 Data Book, published February, 2019, has consumers complaints about: fraud, identity theft and other consumer protection topics. Reporting agencies received about 608,000 complaints from consumers about debt collectors. Of those, more than 40 percent concerned efforts to collect “phantom debt” – debts which consumers say they don’t owe. If you believe you are being pursued for a debt you don’t owe, the FDCPA allows you to request verification of the debt.
Ask for Verification and Keep Records
You have a right to request the collecting agency’s name, physical address and phone number. Always ask for a verification letter with details. Keep records of all contacts (date, time, name of caller) because this information will help you later if the debt continues to be an issue.
Never Give Out Your Personal Information
If the collector requests personal information such as your social security number or bank account number – never provide it. Instead, request written documentation of the debt. If they start to threaten you with arrest or harm, write down the Caller ID number, and ask for the person’s name and report them to the Consumer Financial Protection Bureau and/or the FTC. But, be aware that many of these sleazy types are ‘spoofing’ legitimate phone numbers for law firms and government agencies.
Global Asset Financial Services Group LLC
Last week, a federal court shut down one alleged phantom debt collection scheme at the request of the Federal Trade Commission. The operation, called Global Asset Financial Services Group LLC was accused of “falsely claiming to be attorneys or affiliated with attorneys to pressure consumers into making payments on debts they did not owe, and threatening to take legal action against consumers if they did not pay. The group includes 10 companies and six individuals as proposed defendants: GAFS Group, LLC; Regional Asset Maintenance, LLC; 10D Holdings, Inc.; Trans America Consumer Solutions, LLC; Midwestern Alliance, LLC; LLI Business Innovations, LLC; TACS I, LLC; TACS II, LLC; TACS III, LLC; Cedar Rose Holdings & Development, Inc.; and their principals Ankh Ali, Aziza Ali, Kenneth Moody, David Carr, Jeremy Scinta, and Omar Hussain.
Midwestern Alliance
According to the FTC “One of the companies behind the operation, Midwestern Alliance, is a debt broker that allegedly bought, sold, and placed fake debt portfolios that it obtained from former payday loan generator Joel Tucker even after consumers said they did not recognize the debt or had already paid it,” news release
MUSINGS FROM DIANE:
Everyone will agree that we are responsible for our legitimate debts. If we cannot or will not pay, then somebody has to help collect these debts. But shady debt collectors will go far beyond what’s allowed by law. Every day I hear from consumers who are harassed and threatened by these con-artists. Their lives, jobs and sanity are affected by this creeps who lie about the debt or the law governing their “right” to collect the debt.
How Can I Help You?
The post Debt Collectors Cannot Yell, Curse or Threaten You appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
For many, the term “debt collection” calls to mind threatening letters and harassing, late-night phone calls. There’s no doubt that many debt collection practices involve aggressive and unseemly tactics used to collect credit card and other unpaid debts, and, as a result, Congress stepped in to curb these practices by passing the Fair Debt Collection Practices Act (“FDCPA”). Read More ›
Tags: Collections, Financing, U.S. Supreme Court
Las parejas casadas comparten muchos aspectos de sus vidas, incluyendo las finanzas, los que hace la presentación de una quiebra una decisión sumamente complicada. En este artículo, nuestros abogados de Capítulo 13 de quiebra de Roseville discuten algunos aspectos clave acerca de cómo la presentación de una quiebra puede afectar a su cónyuge, incluyendo si […]
The post ¿Qué Le Sucederá a Mi Cónyuge si Presento Una Quiebra en California? appeared first on The Bankruptcy Group, P.C..
En el derecho, el “estatuto de limitaciones” es el tiempo límite que tiene una persona para traer su reclamación o caso ante la corte. Si un acreedor desea demandar a un deudor para cobrar una deuda, como una cuenta médica resultado de una cirugía o visita de hospital, el acreedor tiene que demandar antes de […]
The post ¿Cual es el Estatuto de Limitaciones para Deudas Médicas en California? appeared first on The Bankruptcy Group, P.C..
STRIKER ALERT – HB 2158: TAX SETTLEMENT; NATIVE AMERICAN VETERANS (TAX LIEN FORECLOSURES; SUBDIVISIONS; EXEMPTION)
Unexpended and unencumbered monies remaining in the Veterans’ Income Tax Settlement Fund (which was established as part of the FY2016-17 budget) revert to the general fund on June 30, 2021, instead of June 30, 2019. The Department of Veterans’ Services is permitted to accept claims for settlement payment from the Fund through December 31, 2019, instead of December 31, 2017. The Fund is repealed on January 1, 2022, instead of January 1, 2020. The dates during which a veteran had state income tax withheld from active duty military pay as part of the qualifying circumstances for settlement payment from the Fund are modified to begin on July 1, 1977, instead of September 1, 1993.
ARS Title Affected: 32
First sponsor: Rep. Shope
Signed by Governor, April 28; Chapter 215
STRIKER ALERT – HB 2494: CIVIL LIABILITY; MINORS; ANIMALS; VEHICLE (DENTAL BOARD; EXPENDITURE LIMITATION; REPEAL)
A person who uses reasonable force to enter a locked and unattended motor vehicle to remove a minor or confined “domestic animal” (defined) is not liable for damages in a civil action if the person has a good faith belief that the minor or animal is in imminent danger, determines that there is no reasonable manner in which the person can remove the minor or animal, notifies a first responder or animal control enforcement agency, does not use more force than is necessary under the circumstances, and remains with the minor or animal until the first responder arrives.
ARS Title Affected: 12
First sponsor: Rep. Carter
Passed Senate 20-7, April 5; ready for House action on Senate amendment
STRIKER ALERT – HB 2158: TAX SETTLEMENT; NATIVE AMERICAN VETERANS (TAX LIEN FORECLOSURES; SUBDIVISIONS; EXEMPTION)
Unexpended and unencumbered monies remaining in the Veterans’ Income Tax Settlement Fund (which was established as part of the FY2016-17 budget) revert to the general fund on June 30, 2021, instead of June 30, 2019. The Department of Veterans’ Services is permitted to accept claims for settlement payment from the Fund through December 31, 2019, instead of December 31, 2017. The Fund is repealed on January 1, 2022, instead of January 1, 2020. The dates during which a veteran had state income tax withheld from active duty military pay as part of the qualifying circumstances for settlement payment from the Fund are modified to begin on July 1, 1977, instead of September 1, 1993.
ARS Title Affected: 32
First sponsor: Rep. Shope
Signed by Governor, April 28; Chapter 215
The post Arizona Legislature and “Strikers” appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
What Is A Bankruptcy Case Dismissal Without Prejudice?
When you file for Chapter 7 or Chapter 13 bankruptcy, you must meet certain requirements to complete your case and get a discharge. If you are not able to comply with all the necessary requirements or steps, the bankruptcy court can dismiss your case with or without prejudice. If the reason for non-compliance is due to procedural lapses, the bankruptcy case is usually dismissed without prejudice.
It is therefore of primary importance to consult a bankruptcy lawyer in Seattle as soon as you see yourself filing for bankruptcy. In this way, you will be guided at the onset on the steps you need to take as well as the documents required of you. This will lessen the risk of your bankruptcy being dismissed, whether with or without prejudice.
A bankruptcy dismissal is understandably frustrating. However, looking at the brighter side of things, a dismissal without prejudice is much better than one with prejudice. If the court dismisses your bankruptcy without prejudice, you can immediately file another bankruptcy case (as long as you are otherwise eligible). However, you need to make sure that you rectify the mistakes you committed in your original filing so that the second filing of your bankruptcy case will stand a greater chance of success. You must also make sure to keep creditors from taking any action against you by filing a motion to extend or impose the automatic stay in your new case.
A bankruptcy dismissed with prejudice is much more frustrating and has grave consequences. If your case is dismissed with prejudice, you can be barred from filing another bankruptcy for a specific period of time or forever prohibited from discharging any of the debts existing at the time of your first filing. Grounds for bankruptcy dismissal with prejudice are:
- Trying to hide or cover up assets
- Filing your case in bad faith, or
- Abusing the bankruptcy system
Luckily, unless you abuse the bankruptcy process or willfully disobey court orders, most bankruptcy dismissals are without prejudice.
Correctly filing a bankruptcy case is very important and complex. Hence, it is imperative to use an experienced bankruptcy lawyer in Seattle to help you file. Otherwise, your bankruptcy case will be dismissed and/or delayed.
Why are Bankruptcy Cases Dismissed Without Prejudice?
In most cases, if you make a procedural mistake (but without any intention to abuse the bankruptcy system), the court will dismiss your bankruptcy without prejudice. Except in rare circumstances, the court will usually dismiss your case without prejudice due to the following:
- Failure to complete the mandatory credit counseling sessions before filing your case
- Failure to meet all eligibility requirements for the type of bankruptcy you wish to file
- Failure to file a required form with the court
- Failure to provide all necessary paperwork to the bankruptcy trustee
- Failure to attend a mandatory court hearing such as the meeting of creditors or the Chapter 13 bankruptcy confirmation hearing
- Failure to pay the court fees
- Failure to make your Chapter 13 plan payments, or
- Failure to follow any of the procedures.
How can I be protected from creditors if my bankruptcy case has been dismissed?
When you file for bankruptcy, you will get an automatic stay to prevent your creditors from collecting their loans or garnishing your money. However, bankruptcy laws impose certain limits on the automatic stay if you file multiple bankruptcy cases. When you file for a second bankruptcy within a period of time, then that automatic stay is limited to 30 days. After the 30 days, the creditors may begin to collect again unless you petition to the court to continue the automatic stay. The purpose of this limited automatic stay is to prevent debtors from bad faith bankruptcy filings such as filing for bankruptcy simply to delay or hinder their creditors.
It is possible to get the court to put the stay in place. If you have a good reason for the new filing—or why the previous filings occurred—then you can file a motion with the court asking for the automatic stay. The court will grant your motion if you prove that you filed the case in good faith.
Contact a Seattle-Tacoma Bankruptcy Attorney
It helps to work with an experienced bankruptcy attorney in Seattle – Tacoma to ensure that your bankruptcy case proceeds without a hitch. Your Seattle – Tacoma bankruptcy lawyer will make sure all required paperwork are taken care of, that you are updated of your court schedules, and that you comply with all the requirements set by the bankruptcy court. Do not take the risk of DIY-ing your bankruptcy filing. Your financial future is at stake. Let our bankruptcy lawyers at Northwest Debt Relief Law Firm help you. Call us for a free initial case evaluation.
The post Bankruptcy Case Dismissal Without Prejudice appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
The post Debt Makes You Stupid appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
The post What is Debt Settlement? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
The post Freedom Debt Relief Sued for Violating Federal Law appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.