Consumer protection

Myths About New Bankruptcy Law
Although bankruptcy filing numbers are still down in Atlanta, I am starting to see more and more activity on my web site and in email inquiries from potential clients. Nevertheless, there is still a great deal of misinformation in the general public about bankruptcy. (…)

Bad Credit Score Results in Higher Insurance Rates
This past week the U.S. Supreme Court heard oral argument on an interesting Fair Credit Reporting Act issue. In the case of Geico vs. (…)

101 Common Sense Financial Tips
I came across an interesting post on a blog called the Bankruptcy Reader. The author sets out 101 Financial Tips You Never Learned in High School (but should have). Most of the points are common sense (i.e. (…)

Tips on Stopping Damage Caused by Identity Theft
The Texas law firm Peterson & Swearingen posted a helpful article about what you should do if you discover that you have been a victim of identity theft on its BrazosLawyers.com blog. Identity theft is a growing problem and I have represented bankruptcy clients who ended up filing partially because of fraudulent debt (usually there were other, legitimate debts as well, but the fraudulent debt made the situation unworkable). (…)

Fine Print of Credit Card Agreements May Contain Terms Not in Your Best Interest
Professor Elizabeth Warren has written a revealing article on the Credit Slips blog about arbitration clauses in credit card agreements. It seems that many credit card agreements contain provisions that require arbitration in the event of any lawsuit by a consumer. Further, the credit card user agreements often contain a waiver of the consumer's right to participate in a class action. (…)

Do Bill Collectors Intentionally Mislead Consumers About Bankruptcy Options?
My colleague, bankruptcy attorney Kevin Chern, discusses a lesser known consequence of the new bankruptcy law in his Bankruptcy Lawyers Blog. It seems that some of the more aggressive bill collectors are (wrongly) advising consumers that bankruptcy protection is not available, illegal or otherwise not an option. (…)

Weakening of Consumer Bankruptcy Protections Based on Faulty Assumptions
One of the consequences of the new bankruptcy law (BAPCA law) has to do with erosion of protections offered by bankruptcy in various situations. For example, the automatic stay provisions, which previously offered a comprehensive, no-questions-asked protection from any creditor action, no longer provides absolute protection in all circumstances. Under BAPCA, the automatic stay terminates in 30 days (unless you go to Court to renew it) in certain repeat filing situations and it does not exist at all in the third case filed within a year. (…)

Hybrid ARM Mortgages - Have You Been Misled?
I recently took notice of a post on Kevin Chern's Bankruptcy Lawyer's Blog in which he wrote about the "ARM boom" of the early 2000's and how almost $1 trillion of ARM loans would adjust (upwards) in 2006 and 2007. (…)

Credit Reporting Agencies Deleting Positive Information?
One of my recent Chapter 7 clients (case successfully discharged) wrote me to say that he has noticed a disturbing occurrence on his credit reports. He advises that positive credit information (a paid off home mortgage and five other paid in full accounts) are no longer showing up on his credit report. Positive credit, of course, helps your credit score go up. (…)

Beware of Bad Faith Collection Efforts by Bill Collectors
I read an interesting article in the New York Times about illegal collection tactics used by collection agencies. Collection agencies sometimes buy old debt from established companies for pennies on the dollar, then pursue aggressive collection against the consumer, even including lawsuits. (…)

Crazy Credit Card Enticements
Just when I thought I had seen it all, today's mail brought a credit card promotion called "Upfront Rewards" from a credit card issuing bank. The promotion offers immediate delivery of a Dell laptop if the applicant agrees to transfer an existing $5,000 balance and "maintain a minimum balance of $3,500 for at least 18 months. Should the balance fall below $3,500 then the card will be charged a flat $600 fee. (…)

Bankruptcy process to become even more burdensome to low income debtors?
NACBA (National Association of Consumer Bankruptcy Attorneys) recently distributed a letter from Senators Chuck Grassley and Jeff Sessions to Justice John Roberts, the Chief Justice of the United States. The Chief Justice is the head of the Committee on Practice and Procedure of the Judicial Conference. This Committee is the organization that drafts and revises the official bankruptcy forms that must be used in the nation's bankruptcy courts. (…)

Check your "ChexSystems" report
I recently saw a post on Jay Fleishman's New York Bankruptcy and Consumer Law Blog where he made a very good point - that is if you are having trouble opening a checking or savings account, you should investigate to see whether Chex Systems has negative information in your file. Chex Systems is subject to the Fair Credit Reporting Act and derogatory and inaccurate info can be challenged. Banks use ChexSystems to see if you have bounced any checks - if so, your application for a new bank account can be denied. (…)