There have been hundreds, no, probably thousands of articles written about the mortgage foreclosure crisis. Sadly though, not nearly enough has been written about the various scams that are out there.
It's a sad fact that whenever people have problems, face challenges, or experience pain, there are always those roaches coming out of the woodwork to take advantage of their plight.
And so it is with the foreclosure crisis. While the government has tried to help, the myriad of laws passed since the foreclosure wave started about ten or twelve years ago, has made the whole area a virtual feeding frenzy for crooks, con artists and swindlers.
Here are some things to remember:
1. You do not need any of these so-called "mortgage rescue" scams. None of these people have the proverbial "silver bullet" to make your mortgage go away.
2. A lot of the advice you will find is just plain wrong. For example as nice as it might be to believe, it is highly unlikely that the indebtedness on your home is going to magically disappear because of some minor technicality.
3. If a pitch sounds too good to be true, it probably is.
4. You do not need to pay anyone to get information about government programs such as loan modification. All of this information is available at no cot from numerous government websites.
5. There is never - absolutely NEVER any reason to do business with any company that offers to save your home by having you deed it to an "investor" or "trust". You can bet with near 100% certainty that any proposal like this is a scam. Don't fall for it.
All you need to do is google "foreclosure scam arrest" and you will see dozens of cases where scammers have been prosecuted, but sadly, not before taking millions of dollars from people ready to anything to save their homes.
Do not jump at any "easy" solution. There are none. Take time to research all the options. Research the foreclosure laws in your state carefully so you will have an idea of what you can and cannot do.
Finally, if you are considering any kind of foreclosure help at all, contact us at Be Your Own Lawyer. Our free case assessment will always include a review of any programs you are considering. Your case won't be our first rodeo in the foreclosure arena and without charging you a dime we can at least warn you about scams and get you pointed in the right direction.
Wednesday, November 28, 2018
Saturday, November 3, 2018
More on Debt Collection
One of the most overlooked provisions of the Fair Debt Collection Practices Act, and related state laws is that a debt collector cannot misrepresent what you owe.
The reason this is import because the term "what you owe" is what you owe as a matter of law, not what the creditor would like to get. Why is this an issue?
Because you may not legally owe anything!!
Every state has a statute of limitations that at some point ends the ability of a creditor to collect.
Where this becomes relevant is in the context of the fact that there are a lot of business out there that buy accounts. Banks, credit card companies and other legitimate creditors will at some point write accounts off as noncollectible. They conclude that either there is no practical way to collect on a given account, or that if there is, the costs of collecting will be more than they can get.
So far so good, but in an effort to reduce losses, they will sell these accounts, often for pennies on the dollar. The businesses that by these accounts will try to collect the original amount. The problem for them is that often, between the time the original creditor has tried to collect, then eventually given up, the statute of limitations may either already have run, or be close to expiring.
Once the statute has run, this is no longer a legally collectible debt and any representation by a collector to you that it is, is in and of itself a violation of the law.
And this is a simple claim for you to preserve and prove. Just look at the documents underlying the "debt". If it is a loan, look at when the last loan payment was made and the note for the time after that wen the loan would have been in default. If it's a credit card debt, look at the account statements for your last use of the card and the date of the last payment. Many, many times you will find that it has been so long ago that the statute will have run.
The rest is easy and can put a few dollars in your pocket. Record the next call from the collector. Ask specifically how much you legally owe. Then file a lawsuit. In addition to the federal statute, many states have unfair collection, or unfair business practices acts that provide for up to three times the amount due.
So it's easy to see that by taking advantage of these statutes, if you do owe an old debt and are being harassed you are not powerless. You can end up with not only the original debt wiped out but extra money in your pocket as well.
The reason this is import because the term "what you owe" is what you owe as a matter of law, not what the creditor would like to get. Why is this an issue?
Because you may not legally owe anything!!
Every state has a statute of limitations that at some point ends the ability of a creditor to collect.
Where this becomes relevant is in the context of the fact that there are a lot of business out there that buy accounts. Banks, credit card companies and other legitimate creditors will at some point write accounts off as noncollectible. They conclude that either there is no practical way to collect on a given account, or that if there is, the costs of collecting will be more than they can get.
So far so good, but in an effort to reduce losses, they will sell these accounts, often for pennies on the dollar. The businesses that by these accounts will try to collect the original amount. The problem for them is that often, between the time the original creditor has tried to collect, then eventually given up, the statute of limitations may either already have run, or be close to expiring.
Once the statute has run, this is no longer a legally collectible debt and any representation by a collector to you that it is, is in and of itself a violation of the law.
And this is a simple claim for you to preserve and prove. Just look at the documents underlying the "debt". If it is a loan, look at when the last loan payment was made and the note for the time after that wen the loan would have been in default. If it's a credit card debt, look at the account statements for your last use of the card and the date of the last payment. Many, many times you will find that it has been so long ago that the statute will have run.
The rest is easy and can put a few dollars in your pocket. Record the next call from the collector. Ask specifically how much you legally owe. Then file a lawsuit. In addition to the federal statute, many states have unfair collection, or unfair business practices acts that provide for up to three times the amount due.
So it's easy to see that by taking advantage of these statutes, if you do owe an old debt and are being harassed you are not powerless. You can end up with not only the original debt wiped out but extra money in your pocket as well.
Friday, November 2, 2018
Unfair Debt Collection Practices Act - Protections
Debt collectors are the worst!! They call incessantly and always at the worst times! They're rude, insulting and basically a pain in the *ss!!
They've been so rude, threatening and offensive over the years that the federal government and most states have enacted some very strict laws that put you in a much better position to deal with these people.
Obviously we can't explain all debt collection law in a blog post, but between state and federal law, there is a fairly uniform set of things that debt collectors cannot do and which if done, will subject them to civil liability.
The gem here is that many of these things will give you grounds to file a suit against a debt collector. Often that will be enough to make them go away and could even put a few dollars in your pocket.
So here are some things to look for from a debt collector that may just put you in the driver's seat:
1. Call before 8 am or after 9 pm. or call repeatedly.
2. Contact you after you have advised them not to ( cease and desist)
3. Threaten you with criminal prosecution
4. Use profane or abusive language.
5. Inform an unauthorized third party about your debt.
6. Ignore your demand for verification of the debt.
7. Fail to send a written validation notice within 5 days of initial contact.
If look at this list the one thing that you will notice is that with any claim, there will be a proof issue. Since so many debt collection contacts are by phone, go ahead and accept that if you are being harassed by this sort of thing, you will need to get some way to record the conversations. If you use a cell phone there are plenty of recording apps. For a regular phone, simple recorders will do.
In the next post we'll talk about the one big thing not listed here - the legal obligation to pay a debt and how trying to collect could in and of itself be a violation.
They've been so rude, threatening and offensive over the years that the federal government and most states have enacted some very strict laws that put you in a much better position to deal with these people.
Obviously we can't explain all debt collection law in a blog post, but between state and federal law, there is a fairly uniform set of things that debt collectors cannot do and which if done, will subject them to civil liability.
The gem here is that many of these things will give you grounds to file a suit against a debt collector. Often that will be enough to make them go away and could even put a few dollars in your pocket.
So here are some things to look for from a debt collector that may just put you in the driver's seat:
1. Call before 8 am or after 9 pm. or call repeatedly.
2. Contact you after you have advised them not to ( cease and desist)
3. Threaten you with criminal prosecution
4. Use profane or abusive language.
5. Inform an unauthorized third party about your debt.
6. Ignore your demand for verification of the debt.
7. Fail to send a written validation notice within 5 days of initial contact.
If look at this list the one thing that you will notice is that with any claim, there will be a proof issue. Since so many debt collection contacts are by phone, go ahead and accept that if you are being harassed by this sort of thing, you will need to get some way to record the conversations. If you use a cell phone there are plenty of recording apps. For a regular phone, simple recorders will do.
In the next post we'll talk about the one big thing not listed here - the legal obligation to pay a debt and how trying to collect could in and of itself be a violation.
Beware of Collection Scams
Sometimes we post things that have nothing to do with representing yourself, but are we hope, valuable little bits of knowledge.
This is one of those things.
The Federal Consumer Financial Protection Bureau recently published an article about how to tell the difference between legitimate debt collectors and scammers.
You can read that article here... it is interesting. But we would also point out that the world of debt collectors includes some other things that are important to you.
Paying bills we owe is sometimes a challenge. There is certainly no need to pay bills that you don't have to. Here are some things to look for:
Debt collectors work on commission or percentage. If they don't collect they don;t get paid. It's that simple. Its also the reason that many get, for want of a better term, over-enthusiastic. Many times this is ultimately good for you because it puts you in a position where you can make a claim for violation of the federal fair debt collection practices act, or similar state statutes.
These statutes limit what debt collectors can and cannot do, and give you some powerful tools to fight back.
In the next few posts we're going to explore some of the tactics that debt collectors use, when these cross the line to be violations, and how you can take advantage of these violations.
This is one of those things.
The Federal Consumer Financial Protection Bureau recently published an article about how to tell the difference between legitimate debt collectors and scammers.
You can read that article here... it is interesting. But we would also point out that the world of debt collectors includes some other things that are important to you.
Paying bills we owe is sometimes a challenge. There is certainly no need to pay bills that you don't have to. Here are some things to look for:
Debt collectors work on commission or percentage. If they don't collect they don;t get paid. It's that simple. Its also the reason that many get, for want of a better term, over-enthusiastic. Many times this is ultimately good for you because it puts you in a position where you can make a claim for violation of the federal fair debt collection practices act, or similar state statutes.
These statutes limit what debt collectors can and cannot do, and give you some powerful tools to fight back.
In the next few posts we're going to explore some of the tactics that debt collectors use, when these cross the line to be violations, and how you can take advantage of these violations.
Thursday, November 1, 2018
New Videos - Guerilla Law
Soon we will be updating our site to include a new series of videos....
Guerilla Law
These videos will address typical legal topics...contracts, how to handle a court case, etc., with a completely new twist. Instead of the typical legal "how to" approach, these videos will include tips and tricks that no one else will even talk about, let alone share with you!!
Stay tuned..you'll love these videos!!
Guerilla Law
These videos will address typical legal topics...contracts, how to handle a court case, etc., with a completely new twist. Instead of the typical legal "how to" approach, these videos will include tips and tricks that no one else will even talk about, let alone share with you!!
Stay tuned..you'll love these videos!!
Make Sure You're Being Paid Enough
While unemployment is down in America, what is often overlooked is that not only are many of these jobs at or near minimum wage, but there are many unscrupulous employers out there that don't even want to pay you that.
A couple of recent cases against Pizza Hut highlight the kinds of things employers try in an attempt to pay even less than minimum wage.
In a class action lawsuit in New York, Pizza Hut was sued for not paying minimum wage. They were paying employees $2.13 per hour, arguing that tips made up the difference between that amount and minimum wage. The suit points out two important things though. The actual tips received together with the wage must total the minimum wage amount. The employee if classified as a tipped worker cannot be required to do non-tipped work.
In another lawsuit, just settled, Pizza Hut failed to pay its delivery drivers minimum wage. They were paid only $5.25 per hour with Pizza Hut unsuccessfully arguing that the tips received made up the difference. The drivers were required to use their own personal vehicles and were paid $1 per delivery. The cases was settled as a class action.
There are a myriad of state and federal laws that require payment of minimum wages and govern how time and work is to be computed. Make sure that you are receiving what you are entitled to.
A couple of recent cases against Pizza Hut highlight the kinds of things employers try in an attempt to pay even less than minimum wage.
In a class action lawsuit in New York, Pizza Hut was sued for not paying minimum wage. They were paying employees $2.13 per hour, arguing that tips made up the difference between that amount and minimum wage. The suit points out two important things though. The actual tips received together with the wage must total the minimum wage amount. The employee if classified as a tipped worker cannot be required to do non-tipped work.
In another lawsuit, just settled, Pizza Hut failed to pay its delivery drivers minimum wage. They were paid only $5.25 per hour with Pizza Hut unsuccessfully arguing that the tips received made up the difference. The drivers were required to use their own personal vehicles and were paid $1 per delivery. The cases was settled as a class action.
There are a myriad of state and federal laws that require payment of minimum wages and govern how time and work is to be computed. Make sure that you are receiving what you are entitled to.
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