April 6, 2011

By: Simon Goldenberg, Esq.

A lawsuit filed against one of the nation’s largest debt collection firms, Midland Funding LLC, alleges that employees of the firm signed affidavits that falsely stated that they had proof of consumer debts. The sworn affidavits were then allegedly used to file collection lawsuits against people who already had paid their debts, as well as people whose names were similar to the actual debtors.

According to the...

August 26, 2010

By: Michelle Grinberg, Esq.

CMC Recovery Services, Inc. (“CMC”), now doing business as Legal Action Recovery, was shut down in 2009 by the Attorney General of New York for various alleged unscrupulous collection activities, such as attempting to collect non-existent or time barred debts and pretending to be law enforcement agents in order to scare consumers into making payments. Further, Lamont Cooper, the owner of CMC, was barred by court order...

August 16, 2010

By:  Yelena Ruderman, J.D.

Skip tracing is a technique usually employed by debt collection agencies to track down debtors and it forms an integral part of debt recovery.  Skip tracing is done by collecting as much information as possible about the subject.  This can be accomplished by calling or visiting former neighbors, employers or other known contacts to ask about the subject, sometimes under false or misleading pretenses.

August 3, 2010

By: Shaun Ertischek, Esq.

Due to the decline in real estate values, tightened credit market, and reduced income often caused by unemployment or the contracting economy, many homeowners have been unable to meet their mortgage loan obligations.  In the first half of 2010, there were 1,654,634 homes facing foreclosure in this country according to RealtyTrac.  During this six-month time period, the number of homes dealing with foreclosure accounted for...

July 29, 2010

By: Michelle Grinberg, Esq.

On July 21, 2010, President Barack Obama signed into law a financial reform bill which, among other things, will create the Consumer Financial Protection Bureau (“CFPB”).  One of the CFPB’s responsibilities will be enforcement of the Fair Debt Collection Practices Act (“FDCPA”).  Prior to the CFPB, the Federal Trade Commission (“FTC”) was the sole regulator of the FDCPA. ...

July 8, 2010

By: Shaun Ertischek, Esq.

In the first half of 2010, consumer bankruptcy filings have continued to grow as individuals seek to escape the burdens of unmanageable debt.  According to the American Bankruptcy Institute, 770,117 consumer bankruptcies were filed in the country during the first six months of 2010, which was a 14% increase over the 675,351 consumer filings made during the same 6-month time period in 2009.  The Institute for Financial...

June 18, 2010

By: Michelle Grinberg, Esq.

Rhode Island consumers are being warned by their Attorney General about a collection scam involving collectors who call consumers claiming they owe a debt related to a payday loan.  They threaten these innocent consumers with arrest for fraud and/or stating that a lawsuit is being filed against them.  This tactic is used to scare such consumers into immediately wiring money or providing bank account information in order...

June 8, 2010

By: Shaun Ertischek, Esq.

Countrywide has recently agreed to pay $108 Million to settle FTC charges related to the improper charging of excessive fees upon homeowners.  These fees were, according to the FTC, for default-related services such as property expenses and home upkeep.  However, Countrywide allegedly marked-up and inflated the cost for these services before passing them on and billing the homeowner.  This was purportedly done so that...

May 27, 2010

By: Michelle Grinberg, Esq.

A report issued by The Legal Aid Society, MFY Legal Services, Inc., NEDAP, and Urban Justice Center claims that debt buying companies routinely engage in unlawful debt collection practices which targets low-income individuals.  The report states that these debt buyers file lawsuits which lack any merit against those who are considered to be low to moderate income individuals.  Most of the time the debt buyers are able to...

May 14, 2010

By: Michelle Grinberg, Esq.

Are you sick of receiving multiple phone calls from the same debt collection agencies?  Do you believe that if you register your phone number with the National Do Not Call Registry the calls will stop?  Unfortunately, this is not the case.

The “Do Not Call List” applies only to telemarketers.  A “telemarketer” is someone who makes or receives calls to or from a customer in order to...