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The information on this page is provided by volunteer attorneys as a public service.  While every attempt is made to ensure that information on this site is accurate and helpful, the CFBLA cannot and does not take any responsibility or hold any liability for the information contained herein. If you have a legal problem, the CFBLA recommends that you speak with an attorney.

 

Friday
Dec112009

House passes consumer protection bill

The U.S. House passed today a major consumer protection bill, including the creation of the Consumer Financial Protection Agency. Defeated was a provision that would have allowed bankruptcy judges to modify mortgages of bankruptcy debtors. Read an article about the new bill in the Financial Times here

Monday
Nov232009

Part I: Advice for the Soon-to-be-Unemployed

This is Part I of a multi-part series about what to do if you get laid off in the current economy. This Part deals with the pre-termination period: how to handle rumors of layoffs or notice of termination.

It's Resume Time. The number one mistake people make is waiting too long to get their resume put together. Most people, at the time they are laid off, are just starting to get a good resume put together. You should review your resume every six months whether or not you believe that your job may be at risk. Certainly, the instant that you think your job might not be completely secure, that is the time that you should get your resume polished up and looking professional. 

Stay Positive.  Most people find out about upcoming layoffs through the “grapevine,” from other employees, from gossip, and the like. These rumors may or may not be true. However, the best response in either case is to work harder than ever and have the best attitude of anyone in your department. Keep in mind -- the normal response to learning that layoffs may be coming is poor morale and a bad attitude. You should buck the trend and compete: be the employee that doesn’t care if you get fired -- you’re going to do the very best job you can right up to the last minute of employment. In this way, you’ll probably be the last one fired, and there may be a chance -- however slim -- that you are kept on: moved to another area of the company, perhaps. Show what a great attitude you have, and what a hard worker you are.

Compete.  If you are given your notice of termination, but not let go right away, employ the same strategy. Amaze your former employer with how hard you work to make the transition easy for them. Worst case is that you’ll get a great referral when potential new employers call your old boss. Best case -- maybe your current employer will re-think laying you off, or will recommend you to another business owner that they know who might could use a go-getter with a great attitude.

Stay Out of the Bottom 18%.  Remember, our American system is based on competition. Even if the true unemployment rate is 18 percent, that means 82 percent of people who want to work are employed. Make sure your attitude and willingness to work hard puts you in the bottom 82 percent! In the next installment, we’ll talk about how important it is to keep that positive attitude while you may be looking for a new job.

In the next installment, we'll talk about the things to do as soon as you get laid off.

 

Thursday
Nov122009

Foreclosures: Good News and Bad News

The good news: the foreclosure rate in Florida is dropping. The bad news: Florida is still 3rd overall in the U.S. for number of foreclosure filings, and the "Orlando-Kissimmee" metropolitan area is the ninth highest, with one in every 117 housing units in foreclosure. RealyTrac released its numbers today and concluded about Florida:

Florida posted the third highest state foreclosure rate, with one in every 168 housing units receiving a foreclosure filing in October. A total of 51,911 Florida properties received a foreclosure filing during the month, a nearly 6 percent decrease from the previous month and a decrease of 4 percent from October 2008. It was the first year-over-year decrease in overall Florida foreclosure activity since July 2006.

According to the article, Nevada and California exceed Florida in foreclosure filings, and four states accounted for 52 percent of the nation’s total foreclosure activity in October: California, Florida, Illinois and Michigan.

Friday
Oct232009

ATTORNEY GENERAL McCOLLUM TARGETS DEBT RELIEF INDUSTRY ABUSES

Submitted by CFBLA member Walter F. Benenati (wfb@creditattorneypa.com):

I recently had a meeting with John Paré, Regional Deputy Attorney General, to discuss the ongoing problems my clients have faced with debt settlement firms taking advantage of their financial plights. Time and time again, we hear clients tell us how they forked over $5000 to a company only to have them sit idly by while their life goes to shambles. That is usually the point when they come see us for help. 

I am happy to see that the AG's office is starting to fight back against this unregulated field that  has exploded seemingly overnight. Here is the news release:

 ATTORNEY GENERAL McCOLLUM TARGETS DEBT RELIEF INDUSTRY ABUSES

    ~ Two lawsuits filed alleging excessive fees and conduct defrauding
                      consumers and damaging credit ~

 TAMPA, FL – Attorney General Bill McCollum today announced his office has  filed two lawsuits on behalf of Florida consumers against five debt  settlement-related companies. According to the Attorney General’s  lawsuits, the businesses promised consumers they could pay off their debts  for a fraction of the amount owed, but instead collected large up-front  fees and left customers with little or no money to pay creditors.

 “These victims were hit with a one-two punch: they paid substantial  up-front fees for services not provided as promised, then ended up with  increased debt, ruined credit, lawsuits, bankruptcy and more,” said  Attorney General McCollum.

 One of the lawsuits was filed against Texas-based CSA-Credit Solutions of America, Inc., a self-proclaimed debt settlement industry leader. The lawsuit alleges that CSA unlawfully charges significant advance fees  before completing or, in many instances, commencing performance of its  debt settlement services. CSA offers to settle consumers’ debts at approximately 50 percent of their balance within 12-36 months and, according to the lawsuit, falsely represents the success rate of its program.

 Under the CSA plan, consumers are instructed to stop paying their creditors and start a savings account supposedly to accumulate enough funds to allow CSA to negotiate a lump sum payoff of the debt.  However, for the first three months, CSA withdraws 85 percent of the funds for its  own fees, leaving the consumers with little or no money to negotiate a  settlement with their creditors. Additionally, while the consumer is trying to save enough for the lump sum payoff, he or she may suffer increased penalties for nonpayment to creditors, lawsuits, damage to  credit scores, bankruptcy and more. The Attorney General’s Office has over 140 complaints, but estimates the company has thousands of Florida  victims.

 “We see clients who are desperate for help after being victimized by  disreputable debt relief companies,” said Thomas DiFiore, Staff Attorney  and Team Leader for the Bay Area Legal Services Inc. “The Attorney  General’s consumer protection initiative is exactly what our clients  need.”

 The second lawsuit filed names Clearwater-based ADA of Tampa Bay, Inc., which does business as American Debt Arbitration. The lawsuit also names the company’s principal Glenn P. Stewart, as well as Arizona-based entities Nationwide Asset Services, Inc., Service Star, LLC, and Universal  Debt Reduction, LLC. The lawsuit alleges the defendants promise to help  consumers pay off their debts at significant savings, but fail to  adequately disclose the true cost of their services. Also allegedly withheld from consumers is the fact that the companies collect at least  the first three months’ of payments as fees, in violation of Florida law,  before the consumer can start accumulating any funds for settlement and  before any services begin. During the “savings” period, consumers are  counseled to cease all payments to and communications with their  creditors. As a result, consumers suffer great financial harm and can be subject to increased penalties and lawsuits.

 The lawsuit against CSA has been filed in Hillsborough County Circuit Court, and the lawsuit against ADA, et al has been filed in Pinellas  County Circuit Court. Both lawsuits petition the court for full victim restitution, injunctive relief, and civil penalties for each violation of  Florida’s Deceptive and Unfair Trade Practices Act.

 The Attorney General’s Economic Crimes Division has been focusing on  abuses within the debt settlement and debt relief industries and continues  to actively investigate and pursue cases in this area. Debt relief  services under review include debt settlement, debt management, debt  negotiation, credit counseling, credit repair, and credit card rate  reduction services. The office is currently investigating the practices of  over 70 debt relief companies and is litigating five cases.

 Consumers should be cautious when signing up with debt settlement firms.
 Consumers who have been victimized by these companies or other debt relief  programs are encouraged to file a complaint with the Attorney General by  calling 1-866-NO-SCAM or by filing a complaint online at  http://www.myfloridalegal.com.

 

Sunday
Oct042009

Foreclosure Scammer Steals Houses

As a follow-up to my previous post, consider this case from the Tampa Bay area. A St. Petersburg jury found that the owner of a "foreclosure rescue" firm was guilty of scamming a 60-year old widow out of her home. The owner, Gideon Rechnitz, convinced the retired woman to deed her house over to him as part of the foreclosure defense "strategy." The problem was, the woman remained liable for paying the mortgage, and Rechnitz apparently had no intention of ever returning the woman's home to her. This is a cautionary tale for consumers: if you are facing foreclosure and need help, call an attorney and avoid so-called "foreclosure defense" companies.