The Brachfeld Law Group has recently defaulted on a settlement agreement with a client of ours. Citing financial woes and a speculative ability to “keep its doors open,” this law collection law firm appears to be in deep trouble. If you owe money for which you are paying Brachfeld Law Group, you should probably call the creditor directly to be sure that your payments are being properly credited to your account. And if you have questions, you can always call us here at Michigan Consumer Credit Lawyers at (248) 353-2882 and we would be happy to assist you, for free.
5 Most Damaging Credit Report Errors
Every year you are entitled to your 3 credit reports for free at www.annualcreditreport.com. Once you get them, here’s a handy list to check for the most damaging credit report errors. Since 8 out of 10 reports contain some kind of error, chances are yours does too. Some errors are more damaging than others and can result in higher interest rates on credit cards, mortgages, car loans and more. Five common credit report errors that can wreak havoc on your report are: 1. Accounts closed by the creditor Closing accounts affects your ‘debt to credit’ utilization. Who closed the account is very important to your credit report. For instance, if the words ‘closed by grantor’ are on your report, it will hurt your credit report because it means the lender decided to close the account, not you. Any closed accounts need to reflect they were paid off and closed voluntarily by you. 2. Delinquencies reported longer than they should Negative items on your credit report must drop off after 7 years (10 years for bankruptcies). This includes collection accounts, charge offs and missed payments. Check to make sure all negative items are removed after the allotted time or you will be penalized for longer. 3. Incorrect accounts Perhaps after viewing your credit report you notice an account you don’t recognize. This could be a red flag that your identity has been stolen and accounts opened in your name. Or the account may belong to someone else with a similar name or social security number. In either case, you need that information removed immediately. If you suspect identity theft, call the police and file a report, then submit an identity theft fraud report to each of [...]
Don’t Fall for Scam Debt Collectors Frightening Tactics
Scam debt collectors are everywhere and their tactics are downright frightening for most people. Some are threatened with arrest, exposure to employers, or humiliating calls to friends, relatives and neighbors. Every day we receive calls from scared, angry consumers in this situation. Dealing with debt collectors can be overwhelming. Scammers often claim to be from law enforcement agencies, law firms or even government agencies and threaten arrest if consumers don’t pay. Consumers may believe these scam debt collectors are the real thing, since they often have accurate personal information about the consumers they target. Here is some vital information about these scammers and what consumers can do to protect themselves: 1. If you are receiving intimidating calls, first determine if you even owe the debt. If you have no record of it, do not make any payments or give out personal financial information such as your bank account until you receive proof. If you have given the caller your bank information, alert your bank that your account may have been compromised. Consider putting a fraud alert or security freeze on your credit reports. 2. Do not be intimidated into making payments on an unknown debt by threats of arrest. Scam debt collectors are not even real licensed businesses, so they have no power to arrest you or issue warrants. This is just a scare tactic, and sadly, a lot of people end up paying on debts they don’t owe because of this shady trick. 3. Report all scammers to the Federal Trade Commission at www.ftc.gov as well as your state’s Attorney General’s office. Then call us, your consumer attorneys at Michigan Consumer Credit Lawyers. We see this type of sleazy behavior by debt collectors [...]
Not Checking Your Credit Reports? It Will Cost You!
We all know how important credit reports/scores are to our daily lives. They determine whether we can buy our dream home, lease a car, or even get a job. But a new study done by the Consumer Financial Protection Bureau revealed that only 1 in 5 people actually get a copy of their credit report each year, even though it is free at www.annualcreditreport.com. The problem with this low 1 in 5 statistic is that over 80% of consumer credit reports contain a mistake. Maybe an old account that you paid off is still reporting after 7 years. Equally possible is that one of your credit card companies is reporting a late payment although it was actually on time. All of these mistakes can cost you big money in the short and long term. According the CFPB, over 40 million people do get their credit reports each year, but Trans Union, Experian and Equifax maintain files on over 200 million people. In 2011, consumers disputed over 30 million errors on their reports, with nearly 40% dealing with incorrect collection accounts. Richard Cordray, the CFPB’s director, noted the important role of credit reports for consumers: “Credit reports on a consumer’s financial history and behavior can determine eligibility for credit cards, car loans, and home mortgage loans – and they often affect how much a consumer is going to pay for that loan. The industry is critical in our economy…,” Here at Michigan Consumer Credit Lawyers we can fix your credit report errors for FREE. We file the dispute letters for you, and get errors removed under the federal law, the Fair Credit Reporting Act. Our services are free to consumers, as the credit agencies must pay [...]
Payday Lender Gets Slapped with $760K Fine by MN Attorney General
Every day we receive calls in our office by frantic people that have been caught in payday loan land. It all starts with a short term loan that you anticipate paying back on payday. But what most people don’t realize is that the payday lender has the odds stacked against you, with ridiculous interest rates and fees. Before you know it, you are taking out a second loan to try and pay off the first. And the cycle goes on and on. Minnesotans are getting a helping hand from their Attorney General Lori Swanson, who is cracking down on these online payday lenders, and winning. The state claimed that payday lender Sure Advance LLC charged MN residents loan shark interest rates, some as high as 1,564%. Sure Advance settled the suit for $760,000, with refund checks going out this week to more than 900 people. They also agreed to stop lending to Minnesotans until the company is licensed to comply with state laws. This latest settlement is the largest the MN Attorney General has scored out of 8 different lawsuits against payday lenders, 7 of which have settled. Online payday lending is a $13 billion industry, as lenders shift to the web. Consumer advocates warn about these lenders, because borrowers get caught in a vicious cycle and can’t afford repayment. These same people are often then the target of bogus debt collection calls from international fraud rings. The industry has come under scrutiny by federal and state regulators as well as consumer advocates. Here at Michigan Consumer Credit Lawyers, you have the right to be protected from these loans sharks. People need to know that they have rights under the Fair Debt Collection Practices [...]
Scam Debt Collection Calls Rising
With all of the holiday spending becoming a distant memory, it can be hard for consumers to keep accurate records about finances. Sleazy fake debt collectors are taking advantage of this vulnerability and using it to their advantage. The Consumer Financial Protection Bureau warns consumers not to let their guard down in the new year when it comes to getting calls from supposed “debt collectors.” Fake debt collectors use a variety of official sounding names like “US Dept of Justice,” “Criminal Bureau of Identity” and other phone names. They will never reveal their real names and addresses, as many are believed to be operating out of their garages or overseas in India. They typically pretend to be lawyers, cops or investigators. The worst part about these scammers is the type of harassment and scare tactics they use, threatening people with arrest for ‘fraud’ or other crimes. They scare and confuse people with meaningless legal phrases such as “We are filing an affidavit against you.” They almost always call people’s work and tell supervisors that “Your employee has committed fraud and is going to be arrested.” Last week we received a call from a frantic young mother with a sick child, who was about to race out the door to her husband’s work due to one of these fake ‘arrest’ calls. She was in tears thinking her husband was going to be put in jail. Of course, there was never any arrest and no one showed up. We advised this mother that the best strategy for dealing with these sleazy liars is: 1. Advise the caller you know he is no creditor of yours and that he is never going to get a dime out of [...]
Debt Collectors are Crushing Consumers
The financial crisis that began 5 years ago hurt a lot of Americans, as millions lost their jobs and homes. As consumers fell behind on their credit cards and other debts, the debt collection industry boomed. In fact, the past 10 years saw huge growth in an industry feeding on defaulted consumer debts. 1 in 7 Americans are now being pursued by debt collectors, which is over 30 million people. Debt buyers purchase debts from original creditors for pennies on the dollar, and then seek to collect the full amount, as well as adding interest, penalties and fees. Debt buyers purchase accounts in bulk, with only a minimal amount of information on the debt. This lack of information leads to collectors pursuing flawed claims, such as attempting to collect from the wrong person or the wrong amount. Sometimes these debt may have been paid in full or are outside the statute of limitations. Other debt collector tactics include re-aging debts to reactivate liability, or putting the debt on consumer’s credit reports, which ruins their scores. The Fair Debt Collection Practices Act is a federal law designed to protect consumers from these abusive practices. Last year, the Federal Trade Commission cracked down on debt collectors and brought or resolved 7 cases affecting hundreds of thousands consumers nationwide – the highest number in any year. And state Attorneys General brought their own suits against debt collection agencies, alleging deceptive and unfair practices including failing to verify disputed debts, making excessive calls and disclosing information to third parties The harassment of consumers is growing every year, and people need to know that they have rights under the Fair Debt Collection Practices Act. This federal consumer law prevents debt [...]
6 Years of Harassing Debt Collector Calls – To the Wrong Guy
One of the major complaints filed against debt collectors is that they are contacting the wrong person. This is especially true for people who have common names. But for Doug Dansie, this case of mistaken identity has turned into 6 years of harassing phone calls from a student loan debt collector. Doug is not delinquent on his bills or trying to avoid collectors – they have the wrong guy. Doug has explained repeatedly to the collector that the person they are looking for does not live at his address and never has. The collector is looking for someone who has the same last name as Doug, but Doug does not know this individual and has told the collection agency again and again. They respond by saying he’ll be taken off the list, and the calls stop for a few weeks before starting all over again. Tired of this harassment, Doug consulted a consumer attorney, who contacted the debt collector and told them he was being represented by an attorney and to cease and desist further contact with Doug. And just like that, the calls have stopped, after 6 long years. According to the Fair Debt Collection Practices Act, a debt collector must stop calling you if you send a letter stating they are not to contact you anymore, even if you owe the debt. If the collector continues to call you, you are legally entitled to take them to court and make them pay you damages for breaking the law. The harassment of consumers is growing every year, and people need to know that they have rights under the Fair Debt Collection Practices Act. This federal consumer law prevents debt collectors from using abusive, unfair [...]
Van Nuys Debt Collector to Pay $1.1 Million Fine to Settle Charges of Bullying Consumers
The Federal Trade Commission continues its crackdown on abusive debt collectors with its latest million dollar victory over a Van Nuys debt collection operation, alleging they bullied consumers and deceived them about fees. The deal stems from a 2011 case against Forensic Case Management Services, Inc., owner David Hynes II and employees of the company, which did business as Rumson, Bolling & Associates among others names. Charges include berating and threatening people in pursuit of old debts and disclosing information about those debts to third parties, all violations of the federal law, the Fair Debt Collection Practices Act. “Several consumers reported that defendants even threatened to dig up bodies of consumer’s deceased relatives for alleged nonpayment of funeral bills,” the FTC said. In 2011, a federal judge halted the company’s operations and they are now permanently barred the companies from the debt collection business, in addition to having to pay the $1.1 million fine. The harassment of consumers is growing every year, and people need to know that they have rights under the Fair Debt Collection Practices Act. This federal consumer law prevents debt collectors from using abusive, unfair or deceptive practices. If a debt collector is found to be in violation, the law (“FDCPA”) allows you to sue the collector, stop the calls and get paid damages (up to $1,000) plus all of your attorney costs are covered. We at Michigan Consumer Credit Lawyers, stand up to the collection thugs and make them pay you. Best yet, we represent you for free. We fight the debt collectors that harass and intimidate consumers. The consumer walks away with a measure of justice and a check from the debt collector. If you have been victimized by [...]
Your New Facebook Friend in the bikini? She may be an Undercover Debt Collector
The newest tactic of sleazy debt collectors involves trickery, deception and pictures of hot bikini babes. Welcome to the world of undercover debt collection, where debt collectors pose as hot young girls in bikinis to get you to friend them. When you accept their invitation, then they post on your timeline that they are a debt collector, publicly humiliating you to get you to pay a debt. U.S. regulators including the Consumer Financial Protection Bureau and Federal Trade Commission are looking into this very issue for 2013 as they impose federal oversight of the debt collection industry for the first time. The CFPB especially has made debt collection a priority as 30 million Americans, or 1 in 10 people are being pursued by these collectors. The Fair Debt Collection Practices Act is the federal law used to regulate debt collectors. But it was written in 1978, well before the advent of social media. The law is unclear on how Facebook, Twitter and other sites can be used legally. Debt collector’s use of these media may violate the restrictions of contacting consumers under the Fair Debt Collection Practices Act. The harassment of consumers is growing every year, and people need to know that they have rights under the Fair Debt Collection Practices Act. This federal consumer law prevents debt collectors from using abusive, unfair or deceptive practices. If a debt collector is found to be in violation, the law (“FDCPA”) allows you to sue the collector, stop the calls and get paid damages (up to $1,000 or actual damages) plus all of your attorney costs are covered. We, at Michigan Consumer Credit Lawyers, represent you for free. We fight the debt collectors that wish to harass [...]
