Tag Archives: financial
Payday Loan Defendant Settles Charges; Illegally Tried to Garnish Borrowers’ Wages
September 2nd, 2010. Published under Business Scams, Fraud, Scams. No Comments.
One of the owners of a payday loan and debt collection operation has agreed to settle Federal Trade Commission charges for his role in a scheme that illegally tried to garnish borrowers’ wages and used other illegal debt-collection practices. According to the FTC’s complaint, the defendants, doing business as Ecash and GeteCash, offered loans to be repaid from borrowers’ upcoming paychecks. Online loan applicants checked a box indicating their agreement with loan terms, including an inconspicuous “wage assignment” clause that said that their wages would be garnished to cover delinquent loan payments. Then, using the name LoanPointe, the defendants attempted to collect on the offered payday loans. Federal law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money. According to the complaint, in letters to employers that sought garnishment of their employees’ wages, GeteCash and LoanPointe tried to pass themselves off as having the same collection rights as the government. The FTC’s complaint also alleges that GeteCash and LoanPointe falsely stated that consumers knew their pay would be garnished and had an opportunity to dispute the debt. In addition, GeteCash and LoanPointe allegedly violated the law when they told employers and co-workers about consumers’ debts without their consent. (See http://www.ftc.gov/opa/2010/04/getecash.shtm ) Under the settlement order, Mark S. Lofgren is banned from collecting debts through wage assignment. He is also permanently prohibited from misrepresenting facts in order to collect a debt; contacting a consumer’s employer in trying to collect a debt, unless he is seeking location information or has a valid court order of garnishment; and disclosing a debt to any third party. In addition, Lofgren is barred from violating the Credit Practices Rule and the Fair Debt Collection Practices Act, selling or otherwise benefitting from customers’ personal or financial information, and failing to properly dispose of customer information. The order imposes a $38,133 judgment that is suspended based on his inability pay. The full judgment will become due immediately if he is found to have misrepresented his financial condition. The FTC also dismissed Benjamin J. Lonsdale and James C. Endicott as defendants in the case. Litigation continues against Joe S. Strom, LoanPointe, LLC, and Eastbrook, LLC, also doing business as Ecash and GeteCash. The Commission votes to dismiss Lonsdale and Endicott from the complaint were 5-0. The Commission vote to file the stipulated final order with Lofgren was 4-1, with Commissioner J. Thomas Rosch voting no. The documents were filed in the U.S. District Court for the District of Utah, Central Division. NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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Payday Loan Defendant Settles Charges; Illegally Tried to Garnish Borrowers’ Wages
Deceptive Marketers Banned from Selling Mortgage Relief Services; One Defendant Ordered to Pay $11.5 Million
July 26th, 2010. Published under Business Scams, Fraud, Scams. No Comments.
Eight marketers are banned from selling mortgage modification or foreclosure relief services under settlements with the Federal Trade Commission. The FTC alleged that the marketers charged homeowners up-front fees and falsely claimed they could get their mortgage loans modified or prevent foreclosure on their homes. The settlements in three separate actions are part of the FTC’s ongoing efforts against scams that target financially distressed consumers. The FTC settled with the following defendants: Federal Loan Modification Law Center. Steven Oscherowitz settled FTC charges that he and others advertised and sold a so-called “Federal Loan Modification program.” They charged up to $3,000, much of which they required up-front, but Federal Loan Modification often failed to live up to the promised results, according to the FTC’s complaint. (4/6/2009 release http://www.ftc.gov/opa/2009/04/hud.shtm ). The settlement order against Oscherowitz permanently bans him from selling mortgage relief services and from telemarketing any good or service. Under the order, Oscherowitz also is prohibited from misrepresenting any good or service, selling or otherwise benefitting from customers’ personal information, and failing to dispose of customer information properly. The order imposes an $11.5 million judgment against Oscherowitz, which represents the amount consumers paid to the defendants while he was involved in the alleged scheme. Any money collected to satisfy the judgment will be paid to injured consumers if practicable, or to the U.S. Treasury as disgorgement of ill-gotten gains. Two individual and three corporate defendants already have settled charges against them in this case, and the FTC continues to pursue its case against five other defendants. Loss Mitigation Services. Dean Shafer, Marion Anthony “Tony” Perry, and Bernadette Perry, also known as Bernadette Carr and Bernadette Carr-Perry, settled allegations that they falsely promised that a loan modification was assured or virtually assured if consumers paid an advance fee of up to $5,500. Shafer and the Perrys, who were principals of Loss Mitigation Services, Inc. (LMS) and Synergy Financial Management Corporation, doing business as Direct Lender or DirectLender.com (Direct Lender), also allegedly misrepresented that the companies were a department of, or affiliated with, the consumer’s lender or mortgage servicer. In addition, Shafer and the Perrys falsely claimed that consumers would receive refunds if LMS or Direct Lender failed to secure a loan modification. In many cases, the defendants failed to obtain loan modifications for consumers, and some consumers lost their homes while waiting for the promised results. (7/15/2009 release http://www.ftc.gov/opa/2009/07/loanlies.shtm .) Under the settlement orders, Shafer and the Perrys are banned from selling mortgage relief services. The orders also impose a $6.2 million judgment that is suspended due to their inability to pay. In addition to the orders against Shafer and the Perrys, the FTC obtained a default order against LMS and Direct Lender, banning them from selling mortgage relief services and ordering them to pay $6.2 million. Hope Now Modifications. Brothers Salvatore and Nicholas Puglia, Hope Now Modifications LLC, and Hope Now Financial Services Corporation settled FTC charges that they falsely claimed that they could obtain mortgage loan modifications in all or virtually all cases and would refund consumers’ money if they failed, and that they were affiliated with, or part of, the HOPE NOW Alliance, a free federal homeowner assistance program. (3/24/2009 release http://www.ftc.gov/opa/2009/03/newhope.shtm ). In addition to banning the defendants from selling mortgage relief services, the settlement order against them permanently bars them from misrepresenting any good or service, violating the Telemarketing Sales Rule, selling or otherwise benefitting from their customers’ personal information, and failing to dispose of their customer information properly. The order also imposes a judgment of almost $5.3 million, which will be suspended when the defendants surrender all of the funds in their bank accounts, which were frozen by the court. The Commission votes to authorize staff to file the stipulated final orders in Federal Loan Modification Law Center and Loss Mitigation Services were 5-0. The orders were entered by the U.S. District Court for the Central District of California on July 12, 2010, and July 14, 2010, respectively. The Commission vote to authorize staff to file the stipulated final order in Hope Now Modifications was 5-0. The order was entered by the U.S. District Court for the District of New Jersey on July 12, 2010. NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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Deceptive Marketers Banned from Selling Mortgage Relief Services; One Defendant Ordered to Pay $11.5 Million
Debt Collection Abuses Widespread
July 15th, 2010. Published under Business Scams. No Comments.
Debt companies pursuing consumers with a small army of collectors have swamped small claims courts with lawsuits and left a trail of abuses that, in 2009, led consumers to file more than 120,000 complaints with federal regulators. “The Debt Machine: How the Collection Industry Hounds Consumers and Overwhelms Courts,” released today by the National Consumer Law Center, shows an urgent need for stronger and updated consumer protections. “The recession has thrown millions of consumers into the jaws of a giant collection machine,” said Robert Hobbs, NCLC deputy director and report co-author. “Existing laws and regulatory efforts have lagged behind what is needed to effectively monitor powerful, wealthy and ubiquitous collections companies.” “The Debt Machine” tells the stories of consumers who have been dragged into a morass of annoying phone calls, false claims and harassment. It also identifies the financial links between debt companies and some of the nation’s leading banks, documents the buying and selling of billions of dollars of debts and describes the critical role played by hundreds of specialized law firms. This timely report echoes the FTC’s July 12 call for enhanced protections for consumers who face collections actions in small claims courts and private “forced arbitration” forums. “Millions of American families have been subjected to debt collection abuses in recent years,” Hobbs said. “Some have been struggling to pay accumulated debts. Some who don’t even owe the debts have been targeted by a sloppy and over-aggressive debt industry.” “These families – unlike some of the giant banks that are the leading creditors – haven’t asked for a bail-out,” Hobbs added. “But they are entitled to their rights not to be hounded, abused or pursued for claims that they never owed or are no longer legally enforceable. Consumers also deserve their day in court to resolve legitimate disputes.” The report is posted on-line at www.nclc.org/images/pdf/pr-reports/debt-machine.pdf . The National Consumer Law Center is a non-profit organization that seeks marketplace justice on behalf of vulnerable Americans. NCLC works with, and offers training to, thousands of legal-service, government and private attorneys, as well as community groups and organizations representing low-income families. Our legal manuals and consumer guides are standards of the field. Learn more and find a link to the new report on our Web site: http://www.nclc.org .
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Debt Collection Abuses Widespread
World Economic Outlook As of April 2010
July 5th, 2010. Published under Economic News. No Comments.
According to a report released in April 2010 by the International Monetary Fund here are some global considerations and expectations. The recovery is stronger than expected but the speed of the recovery will vary Financial conditions are easing in some sectors. Capital is flowing into emerging economies. Inflation pressures have lessened but they may still rear their
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World Economic Outlook As of April 2010
More Than A Dozen Marketers Banned from Selling Mortgage Relief Services; Repeat Offender Ordered to Pay $11.4 Million for Contempt
June 18th, 2010. Published under Business Scams, Fraud, Scams. No Comments.
As part of the agency’s continuing crackdown on scams that prey on financially distressed homeowners, the Federal Trade Commission announced legal actions against more than a dozen marketers accused of pitching bogus mortgage modification or foreclosure relief services. FTC settlement orders ban 16 marketers from the mortgage modification or foreclosure relief business. The promoter of a similar scam has been ordered to pay $11.4 million for flouting a previous court order. And, in a new action, the FTC has charged another online marketing operation with masquerading as a government mortgage assistance program. The FTC settled with the following defendants, all of whom charged consumers up-front fees and made false promises that they could get their loans modified or prevent foreclosure: Making Home Affordable. The FTC alleged that the defendants impersonated MakingHomeAffordable.gov, a federal government Web site that helps eligible homeowners refinance or modify their mortgages. Defendants Sean Cantkier, Michael Haller, Alan LeStourgeon, Greg Rivera, Lisa Roye, and Jeffrey Altmire bought advertising links on the results pages of Internet search engines, and consumers looking for “making home affordable” were diverted to commercial Web sites that pitched loan modification services or sold consumers’ personal information to marketers of such services. (7/10/2009 release http://www.ftc.gov/opa/2009/07/homeafford.shtm ) The defendants will have to give up their ill-gotten gains, ranging from $1,523 to $29,179. Separately, the Commission authorized and the court approved the addition of two counts to the complaint against Scot Lady and dismissed Kean Lee Lim as a defendant. The documents were filed in the U.S. District Court for the District of Columbia. Federal Loan Modification Law Center. Defendants Nabile (“Bill”) Anz, Federal Loan Modification Law Center LLP, Anz & Associates PLC, Venture Legal Support PLC, and Jeffrey Broughton settled FTC charges that they hawked their so-called “Federal Loan Modification program” in a national advertising campaign targeting financially distressed homeowners. They charged up to $3,000, much of which they required up-front, but Federal Loan Modification often failed to live up to the promised results, according to the FTC’s complaint. (06/26/2009 release http://www.ftc.gov/opa/2009/06/fedloanmod.shtm ) In addition to the ban on selling mortgage relief services, the settlement order against Anz, Federal Loan Modification Law Center, Anz & Associates, and Venture Legal Support imposes a $10.8 million judgment, and the order against Broughton imposes a $11.1 million judgment. The judgments are suspended based on their inability to pay. The full judgments will become due immediately if they are found to have misrepresented their financial condition or receive any money from the remaining defendants. The order was filed in the U.S. District Court for the Central District of California. The FTC continues to pursue its case against five other defendants. Apply2Save. Derek R. Oberholtzer, Apply2Save Inc., and Sleeping Giant Media Works, Inc. allegedly charged consumers up to $995 in advance for promised mortgage loan modification services. Once they were paid, they often failed to answer or return consumers’ telephone calls and sometimes falsely blamed delays on lenders, even though they had made little or no effort to contact lenders, the FTC charged. Most consumers who got loan modifications or avoided foreclosure did so only through their own efforts. (7/15/2009 release http://www.ftc.gov/opa/2009/07/loanlies.shtm ) The defendants have filed for bankruptcy. The order imposes a judgment of more than $4 million, which is suspended based on their inability to pay. The full judgment will become due immediately if they are found to have misrepresented their financial condition. The order was filed in the U.S. District Court for the District of Idaho. New Hope Modifications. Brian Mammoccio and Donna Fisher have settled charges that they falsely claimed they could obtain mortgage loan modifications for consumers in all or virtually all cases, falsely promised a money-back guarantee, and masqueraded as part of the federally-endorsed HOPE NOW Alliance mortgage assistance network. According to the FTC complaint, in many cases, after consumers paid up-front fees, the defendants failed to return their phone calls, or falsely told them that negotiations were proceeding smoothly. In many instances, consumers learned from their lenders that the defendants had not contacted them. (3/24/2009 release http://www.ftc.gov/opa/2009/03/newhope.shtm ) In addition to the ban on selling mortgage relief services, the settlement order imposes a judgment of almost $3.9 million, which will be suspended when the defendants surrender their assets as specified in the order. The full judgment will become due immediately if they are found to have misrepresented their financial condition. The order was filed in the U.S. District Court for the District of New Jersey. The $11.4 million contempt order against Bryan D’Antonio and three companies he controls, The Rodis Law Group Inc., America’s Law Group Inc., and The Financial Group Inc., came at the request of the FTC, which charged that operators of the scam had falsely claimed they would stop foreclosures and negotiate lower mortgage interest rates, monthly payments, and principal balances. Promoters of the scam claimed a 100 percent success rate and wrongly advised consumers to pay them instead of making mortgage payments. The FTC alleged that homeowners got few, if any, loan modifications, and many people lost their homes to foreclosure after paying them up to $5,500. The operators also falsely claimed that attorneys would check consumers’ loan documents for fraud and other lending violations that they would use as leverage in negotiating loan modifications, according to the complaint. In May 2009, the FTC charged the defendants with violating a 2001 order that banned D’Antonio from telemarketing and misleading consumers about goods or services. The FTC obtained the 2001 order against D’Antonio and his former company, Data Medical Capital Inc., for operating a work-at-home medical billing opportunity scheme. D’Antonio also pleaded guilty to mail fraud for his involvement in that scam and served almost three years in prison. In addition to the financial sanctions against D’Antonio and the three companies, the court barred him from making misleading statements about refunds, exchanges, and total costs or quantity. The FTC has collected more than $1 million from the defendants’ available assets thus far, and will refer the remainder of the $11.4 million judgment to the Department of the Treasury for collection. The FTC has set up a consumer information line at 1-888-398-8205. Fedmortgageloans.com . The FTC has charged Dominant Leads LLC, MAD TJ Holdings LLC, James Rambadt, Thomas Hayes, and James Kane with misrepresenting that the mortgage assistance and debt relief programs they are marketing are affiliated with the federal or state government, and that consumers may be eligible for a federal or state loan modification or debt relief program. Some of the defendants’ Web sites use logos similar to the federal government’s MakingHomeAffordable.gov logo, and many of their sites feature official government agency seals or logos and links to federal government Web sites. When consumers seeking mortgage assistance or debt relief services call the toll-free numbers on the defendants’ Web sites, they are connected to other companies that sell supposed mortgage assistance relief or debt relief services for a fee. The FTC seeks to stop the defendants’ illegal practices and make them forfeit their ill-gotten gains. The complaint was filed in the U.S. District Court for the District of Columbia on June 16, 2010. The Commission votes were unanimous in these actions. The Federal Trade Commission is a member of the interagency Financial Fraud Enforcement Task Force. For more information on the task force, go to www.stopfraud.gov . NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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More Than A Dozen Marketers Banned from Selling Mortgage Relief Services; Repeat Offender Ordered to Pay $11.4 Million for Contempt
Bank of America / Countrywide Will Pay $108 Million for Overcharging Struggling Homeowners; Loan Servicer Inflated Fees and Mishandled Loans
June 7th, 2010. Published under Business Scams, Fraud. No Comments.
Two Countrywide mortgage servicing companies will pay $108 million to settle Federal Trade Commission charges that they collected excessive fees from cash-strapped borrowers who were struggling to keep their homes. The $108 million represents one of the largest judgments imposed in an FTC case, and the largest mortgage servicing case. It will be used to reimburse overcharged homeowners whose loans were serviced by Countrywide before it was acquired by Bank of America in July 2008. “Life is hard enough for homeowners who are having trouble paying their mortgage. To have a major loan servicer like Countrywide piling on illegal and excessive fees is indefensible,” said FTC Chairman Jon Leibowitz. “We’re very pleased that homeowners will be reimbursed as a result of our settlement.” According to the complaint filed by the FTC, Countrywide’s loan-servicing operation deceived homeowners who were behind on their mortgage payments into paying inflated fees – fees that could add up to hundreds or even thousands of dollars. Many of the homeowners had taken out loans originated or funded by Countrywide’s lending arm, including subprime or “nontraditional” mortgages such as payment option adjustable rate mortgages, interest-only mortgages, and loans made with little or no income or asset documentation, the complaint states. Mortgage servicers are responsible for the day-to-day management of homeowners’ mortgage loans, including collecting and crediting monthly loan payments. Homeowners cannot choose their mortgage servicer. In March 2008, before being acquired by Bank of America, Countrywide was ranked as the top mortgage servicer in the United States, with a balance of more than $1.4 trillion in its servicing portfolio. When homeowners fell behind on their payments and were in default on their loans, Countrywide ordered property inspections, lawn mowing, and other services meant to protect the lender’s interest in the property, according to the FTC complaint. But rather than simply hire third-party vendors to perform the services, Countrywide created subsidiaries to hire the vendors. The subsidiaries marked up the price of the services charged by the vendors – often by 100% or more – and Countrywide then charged the homeowners the marked-up fees. The complaint alleges that the company’s strategy was to increase profits from default-related service fees in bad economic times. As a result, even as the mortgage market collapsed and more homeowners fell into delinquency, Countrywide earned substantial profits by funneling default-related services through subsidiaries that it created solely to generate revenue. According to the FTC, under most mortgage contracts, homeowners must pay for necessary default-related services, but mortgage servicers may not mark up the cost to make a profit or charge homeowners for services that are not reasonable or appropriate to protect the mortgage holder’s interest in the property. Homeowners do not have any choice in who performs default-related services or the cost of those services, and they have no option to shop for those services. In addition, in servicing loans for borrowers trying to save their homes in Chapter 13 bankruptcy proceedings, the complaint charges that Countrywide made false or unsupported claims to borrowers about amounts owed or the status of their loans. Countrywide also failed to tell borrowers in bankruptcy when new fees and escrow charges were being added to their loan accounts. The FTC alleges that after the bankruptcy case closed and borrowers no longer had bankruptcy court protection, Countrywide unfairly tried to collect those amounts, including in some cases via foreclosure. Settlement Terms The FTC’s complaint and settlement order name two mortgage servicers as defendants: Countrywide Home Loans, Inc. and BAC Home Loans Servicing LP, formerly doing business as Countrywide Home Loans Servicing LP. The settlement requires Countrywide to pay $108 million, which will be refunded to homeowners who Countrywide overcharged before July 2008. In addition, the settlement order prohibits Countrywide from taking advantage of borrowers who have fallen behind on their payments. The defendants continue to service millions of mortgage loans, including tens of thousands of loans involving borrowers in bankruptcy and foreclosure. In the servicing of loans, the defendants are permanently barred from: Making false or unsubstantiated representations about loan accounts, such as amounts owed. Charging any fee for a service unless it is authorized by the loan instruments, by law, or by the consumer for a specific service requested by the consumer. Charging any fee for a default-related service unless it is a reasonable fee charged by a third party for work actually performed. If the service is provided by an affiliate of a defendant, the fee must be within limits set by state law, investor guidelines, and market rates. Defendants must obtain annual, independent market reviews of their affiliates’ fees to ensure that they are not excessive. In addition, Countrywide must advise consumers if it intends to use affiliates for default-related services and, if so, provide a fee schedule of the amounts charged by the affiliates. The settlement also requires Countrywide to make significant changes to its bankruptcy servicing practices. For example, Countrywide must send borrowers in Chapter 13 bankruptcy a monthly notice with information about what amounts the borrower owes – including any fees assessed during the prior month. The defendants also must implement a data integrity program to ensure the accuracy and completeness of the data they use to service loans in Chapter 13 bankruptcy. This case was brought with the invaluable assistance of the United States Trustee Program, the component of the Department of Justice that oversees the administration of bankruptcy cases and private trustees. This action represents the FTC’s continuing work to help consumers who have been hurt by the economic downturn. For more information about the case and the FTC’s refund program, see www.ftc.gov/countrywide . The Commission vote to authorize staff to file the complaint and settlement was 5-0. The complaint and settlement were filed in the U.S. District Court for the Central District of California. The Federal Trade Commission is a member of the interagency Financial Fraud Enforcement Task Force. For more information on the Task Force, visit www.stopfraud.gov . NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
climate amendment to financial reg bill – Gather.com
May 12th, 2010. Published under Political Scams. No Comments.
climate amendment to financial reg bill Gather.com Here's an amendment that could stop the CO2 credits swaps cold and remove the financial incentive to pass Cap and Trade . It might make some politicians take … and more
Great Vampire Squid Goldman Sachs finally gets its collar felt – Telegraph.co.uk (blog)
April 16th, 2010. Published under Political Scams. No Comments.
Great Vampire Squid Goldman Sachs finally gets its collar felt Telegraph.co.uk (blog) … every part of the Financial Crisis so far, not to mention their “strategic” positioning in the Cap-and-Trade ponzi-scheme that is now in the making. … and more
Helping Hands of Hope Telemarketers Barred from Falsely Telling Consumers That Proceeds from the Sale of Household Goods Will Benefit Charities or the Disabled
April 9th, 2010. Published under Business Scams, Fraud, Scams. No Comments.
Complaint Brought as Part of 2008′s “Operation Tele-Phoney” Law Enforcement Sweep An Arizona-based telemarketing operation that identified itself as “Helping Hands of Hope” has settled charges that it conned consumers into buying household items such as light bulbs and trash bags that were priced substantially higher than at retail, by falsely promising the proceeds would benefit charities or the disabled. The defendants will be permanently barred from such fraudulent conduct and from calling consumers who have asked not to be called. According to the FTC’s complaint, filed in May 2008 as part of the “Operation Tele-Phoney” multi-agency law enforcement sweep against telemarketing fraud, the Helping Hands of Hope defendants used telemarketing to target consumers nationwide, including many who were elderly. In addition to making false promises, Helping Hands’ telemarketers harassed consumers who resisted buying products, sent consumers products they never ordered, and then claimed that they had, in fact, ordered them, the complaint alleged. Finally, the FTC charged that Helping Hands’ telemarketers violated the National Do Not Call Registry rules by calling consumers even after they had asked not to be called again. The court order settles the FTC’s charges against Helping Hands of Hope, Inc.; U.S. Blind Services, Inc.; Employment Opportunities of America, Inc.; Third Strike Employment, Inc.; and Robyn Mayhan. It prohibits the defendants from misrepresenting, or assisting anyone else in misrepresenting, that: a consumer’s purchase will benefit handicapped or disabled people; anyone working for the companies is handicapped or disabled; any of the companies’ products are made or packaged by the handicapped or disabled; or that any company operates a charitable organization. The order also bars the defendants from mailing or billing consumer for any merchandise they did not order. Further, Helping Hands and the other defendants are prohibited from violating the FTC’s Telemarketing Sales Rule, including calling any number that is on the National Do Not Call Registry, calling consumers who have asked not to be called again, and failing to pay the annual fee required to access the Registry. Finally, the order imposes a judgment of $26.3 million against all of the defendants. The corporate defendants will turn over assets worth more than $60,000 in partial satisfaction of the judgment. The judgment against Mayhan, the companies’ president, has been suspended based on her inability to pay. She will have to pay the full amount if she is later found to have misrepresented her financial condition. The Commission vote authorizing the staff to file agreed-upon final order in consent of the court action was 4-0. It was filed in the U.S. District Court for the District of Arizona, on April 1, 2010, and entered by the Court on April 6, 2010. NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge. Copies of the stipulated final order are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm .
Friday is Economic Groundhog Day
April 3rd, 2010. Published under Economic News. No Comments.
As the country sleeps in, thanks to the Good Friday holiday (for people related to the financial markets that is), the most important economic data since the beginning of time (as the media would have you believe) or at least since Claudius Nero Caesar announced the State of the Republic, will be released. At exactly 8:30
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Friday is Economic Groundhog Day
Direct Marketing Associates Corp Settles FTC Charges; Falsely Told Consumers They Were Pre-Approved for Auto Loans
March 30th, 2010. Published under Business Scams, Fraud, Scams. No Comments.
A marketing company that solicits prospective customers for automobile dealers has agreed to settle Federal Trade Commission charges that it falsely told low-income and “credit-challenged” consumers that they were pre-approved for auto loans and improperly obtained their names from a consumer reporting agency. According to the FTC, the company prepared sales solicitations for automobile dealers telling consumers that a specific finance company would lend them money to buy a car, but the finance companies featured in the ads lacked business licenses and didn’t actually make any loans. The marketing company obtained lists of consumers from a credit reporting agency by falsely representing that the lists would be used to make prescreened firm offers of credit to consumers. The settlement order bars the company and its principal from telling consumers they are pre-approved for, or are likely to receive, an extension of credit or financing unless the defendants know that a lender can make good on the offer for all eligible customers. The order also prohibits the defendants from obtaining credit reports from consumer reporting agencies without a purpose authorized by the Fair Credit Reporting Act. The order imposes a $157,000 civil penalty that is suspended based on the defendants’ inability to pay. The full judgment will be imposed if they are found to have misrepresented their financial condition. The defendants are Direct Marketing Associates Corp. and its president and owner, John M. Rainey, Jr. The Commission vote to authorize staff to refer the complaint and proposed stipulated final order to the Department of Justice for filing was 4-0. The documents were filed in the U.S. District Court for the District of Arizona, Phoenix Division. NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. A complaint is not a finding or ruling that the defendants have actually violated the law. Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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Direct Marketing Associates Corp Settles FTC Charges; Falsely Told Consumers They Were Pre-Approved for Auto Loans
Loan Pitchman James Nicholson Permanently Banned from Telemarketing
March 30th, 2010. Published under Business Scams, Fraud, Scams. No Comments.
Loan Pitchman Permanently Banned from Telemarketing Consumers Charged Up-Front Fee for Supposed General-Use Credit Card The telemarketing business will be permanently off limits to a deceptive pitchman whom the Federal Trade Commission sued last year for allegedly tricking consumers into paying hundreds of dollars for a credit card that could only be used to buy merchandise from his companies’ Web sites. Under a settlement order with the FTC, pitchman James Nicholson and a group of companies he controls have settled FTC charges related to an advance-fee credit card scam and a bogus advance-fee interest-rate reduction/debt negotiation program, as well as allegations that they debited consumer bank accounts without permission, failed to tell consumers they would not be able to get a refund, and illegally called consumers whose names were on the National Do Not Call Registry. Under the settlement order, Nicholson and his companies will pay more than $200,000. The FTC filed a complaint in 2009 charging Nicholson and several of his businesses with using deceptive telemarketing pitches since 2006 to offer consumers with poor or no credit a general-use credit card in exchange for an up-front fee of as much as $250. Telemarketers working for Nicholson’s chief company, Group One Network, also claimed that consumers would get access to a significant line of credit that could be used for cash advances, and that their payment histories would be reported to the three major credit bureaus. In reality, consumers who paid the fee received an online shopping card they could only use to buy products from Group One’s Web sites, they could not get cash advances, and their credit histories were never reported to the credit bureaus. In April 2009, the FTC filed an amended complaint naming four more companies and adding new allegations relating to the deceptive telemarketing of a bogus advance-fee interest-rate reduction/debt negotiation program by a business operating as Credit First Financial Solutions. The FTC’s amended complaint alleged that Nicholson’s telemarketers, among other things, falsely represented that in exchange for an up-front fee, they could lower consumers’ interest rates by negotiating with consumers’ creditors; would provide consumers a minimum savings of $1,500 to $20,000 within the first 30 days of their enrollment; and would provide a full refund if they failed to achieve the promised savings. The settlement announced today bans Nicholson, a repeat offender who pleaded guilty to wire fraud in connection with fraudulent telemarketing in 1995, from telemarketing and from selling advance-fee loans or credit cards. It also bans him from assisting anyone in telemarketing or marketing such loans. Furthermore, the settlement prohibits Nicholson and his companies from misleading consumers about credit-related goods or services, or any other goods or services they market. Finally, the order imposes a $17.2 million judgment against all the defendants, which has been suspended based on their inability to pay the full amount. However, Nicholson will turn over a 31-foot power boat, his Nissan Pathfinder, and jewelry and art valued at more than $10,000. The other defendants will turn over more than $200,000 in cash and other assets. The settlement resolves the FTC’s charges against: Group One Networks, Inc., doing business as (d/b/a) Credit Line Gold Card, The USA Workers, TheUSAWork.com, and TheUSAWorkers.com; US Gold Line, LLC, d/b/a USGoldLine.com, Gainsway Credit, and GainswayCredit.com; My Online Credit Store, LLC d/b/a MyOnlineCreditStore.com, MYOnlinecr.com, Diamond Executive, NewECredit, and NewECredit.com; James Nicholson, individually and as president of Group One Networks, Inc., and manager of US Gold Line, LLC and My Online Credit Store, LLC; Credit First Financial Solution, LLC; Group One Administrative, Inc.; Tall Pines Administrative Services, LLC; and Sun Coast Data Services, LLC. Brett Fisher, the chief executive officer of Group One Networks, Inc., and manager of US Gold Line, LLC and My Online Credit Store, LLC, settled similar FTC charges in December 2009. He agreed to a court order banning him from selling advance-fee credit cards and from violating the Telemarketing Sales Rule. The order against Fisher also imposed a $17.2 million judgment, which was suspended based on his inability to pay. He has turned over $21,000 in cash to the FTC. The FTC vote authorizing the staff to file stipulated final the order against all the Group One Networks defendants was 4-0. It was filed in the U.S. District Court for the Middle District of Florida, Tampa Division, on March 17, 2010, and entered on March 18, 2010. The FTC complaints amending the original complaint and approving the settlement order against Fisher were both 4-0. The amended complaint was filed in court on April 14, 2009, and the court entered the Fisher order on January 12, 2010. The FTC received invaluable assistance in this matter from the U.S. Postal Inspection Service, the University of Central Florida Police Department, Largo Police Department, and the Better Business Bureau of West Florida, Inc. NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge. Copies of the stipulated final order are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm .
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Loan Pitchman James Nicholson Permanently Banned from Telemarketing
Attention Georgians Prepare to Pay Higher Taxes if Georgia and Other States Don’t Block Health Care Reform
March 24th, 2010. Published under Business Scams, Scams. No Comments.
This issue not only affects all Georgian’s, but every US Citizen. What congress isn’t telling you is the effect that the Health Care Reform will have on State funded programs that are paid for by taxes. The health care reform is going to cause state and federal taxes to go up, including state sales tax. Under the new health care mandate an estimated 600,000 to 700,000 additional Georgian’s will be enrolled (forced by federal law) onto the stat Medicaid program. Georgia will have to raise taxes to help offset the financial burden that the Health Care Reform will put on the states. The federal health care reform will cost the state of Georgia an estimated additional $500 million dollars a year. Currently the State of Georgia has a budget deficit and the reform bill is only going to add to the deficit.
There is nothing cuddly about the WWF – Telegraph.co.uk (blog)
March 21st, 2010. Published under Political Scams. No Comments.
There is nothing cuddly about the WWF Telegraph.co.uk (blog) If this scheme ever comes off – and it still might, if Americans are foolish enough to vote for Cap and Trade – then the WWF will have the financial clout … WWF Mines The Green Gold Rush To The Amazon: Making $60 billion From Fear Anorak.co.uk (satire) all 5 news articles
The Empire of the Out of Touch – Canada Free Press
March 21st, 2010. Published under Political Scams. No Comments.
The Empire of the Out of Touch Canada Free Press The second was to be Cap and Trade , which would implement government control over American industry and turn the financial markets into a government program …
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The Empire of the Out of Touch – Canada Free Press
The Good News About Utah Businesses and the SBA
March 20th, 2010. Published under Economic News. No Comments.
When was the last time you heard some “Good News” about the financial situation this country is in? Well, recently during National Small Business Week, we did have some good news about being in business in Utah. I’m sure you are aware by now that the SBA requirements surrounding financing of Small Businesses has come under
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The Good News About Utah Businesses and the SBA
Repo 105 Cause Of Economic Collapse?
March 13th, 2010. Published under Economic News. No Comments.
In August of 2008 most Americans felt relatively safe in their economic lives. Although rumblings had been heard in the financial community of troubles in the credit markets and credit default swaps very few people had any idea of the extent the problems penetrated into the financial system. Over the past almost 2 years the US
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Repo 105 Cause Of Economic Collapse?
Debt Collectors Will Pay More Than $1 Million to Settle FTC Charges – Credit Bureau Collection Services
March 3rd, 2010. Published under Business Scams, Fraud, Scams. No Comments.
Another unethical debt collector gets smacked by the Federal Trade Commission — A nationwide debt collector has agreed to pay a civil fine of more than $1 million to settle Federal Trade Commission charges that it violated federal law by inaccurately reporting credit information and pressing consumers to pay debts they often did not owe. According to the FTC’s complaint, the company and two of its officers illegally tried to collect invalid debts and reported them to the credit reporting agencies without noting that consumers disputed them. In addition, even after receiving information from consumers that a debt was paid off or did not belong to the consumer, the company continued to assert, no longer with a reasonable basis, that the consumer owed the debt, without trying to confirm or dispute the consumer’s information, in violation of the FTC Act. The FTC charged that the company, Credit Bureau Collection Services, and two of its officers, Larry Ebert and Brian Striker, violated the FTC Act and the Fair Debt Collection Practices Act. The company also is charged with violating the Fair Credit Reporting Act by reporting information to credit agencies that consumers had proved was inaccurate, failing to inform to the credit agencies that consumers had disputed the debts, and failing to investigate after receiving a notice of dispute from a credit reporting agency. In addition to imposing the $1.1 million civil penalty on the company, the settlement order: Bars the defendants from further violations; Prohibits them from making unsupported statements to collect a debt or obtain information about a consumer; Bars them from making claims that a debt is owed or about the amount, without a reasonable basis; Requires the defendants, when a debt is questionable or a consumer questions it, to either close the account and end collection efforts or investigate the dispute. If they cannot show that the consumer owes a debt, they cannot sell the debt or provide it to any business other than the original client; and Bars the company from re-reporting information to credit reporting agencies that it had voluntarily deleted from credit reporting before December 2008. The Commission vote to authorize staff to refer the complaint and consent decree to the Department of Justice for filing was 4-0. The documents were filed in the U.S. District Court for the Southern District of Ohio, Eastern Division. The Commission recently released a video for consumers who are facing debt collection . The video is at www.ftc.gov/MoneyMatters , a site that includes information for consumers on managing credit, dealing with debt, and a variety of other financial topics. NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Consent decrees are for settlement purposes only and do not necessarily constitute an admission by the defendant of a law violation. Consent decrees are subject to court approval and have the force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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Debt Collectors Will Pay More Than $1 Million to Settle FTC Charges – Credit Bureau Collection Services
Payment Processing CEO Banned from the Business; Company Illegally Debited Millions from Consumers’ Bank Accounts
March 1st, 2010. Published under Fraud, Scams. No Comments.
The chief executive officer of a payment processing company will be banned from the business as part of a settlement resolving Federal Trade Commission charges that the company illegally debited millions of dollars in bogus charges from consumers’ bank accounts. In 2007, the FTC charged the executive, Tarzenea Dixon, her company, and others with processing unauthorized debits on behalf of deceptive telemarketers and Internet-based schemes they knew, or deliberately avoided knowing, were violating the FTC’s Telemarketing Sales Rule. In addition, the attorneys general of Illinois, Iowa, Nevada, North Carolina, North Dakota, Ohio, and Vermont charged the defendants with violating various state laws. According to the FTC complaint, the company played a critical role in helping many of its clients carry out these illegal schemes by providing access to the banking system and the means to extract money from consumers’ bank accounts. Between June 23, 2004, and March 31, 2006, the defendants processed more than $200 million in debits and attempted debits. More than $69 million of the attempted debits were returned or rejected by consumers or their banks for various reasons, an indication that in many cases consumers had never authorized the charges. In many instances, the merchants either failed to deliver the promised products or services or sent consumers relatively worthless items. The settling defendant is Tarzenea Dixon. Her co-defendants are Your Money Access, LLC d/b/a Netchex Corp., Universal Payment Solutions, Check Recovery Systems, Nterglobal Payment Solutions, and Subscription Services, Ltd.; YMA Company, LLC; and Derrelle Janey. In addition to permanently banning Dixon from any payment processing, the settlement order bans her from substantially aiding any marketer when she knows, or consciously avoids knowing, that it is violating the Telemarketing Sales Rule. The order imposes a $22 million judgment that is stayed based on her inability to pay. The full judgment will become due immediately if she is found to have misrepresented her financial condition. The Commission vote approving the consent in settlement of the court action against Dixon was 4-0. The FTC filed the documents in the U.S. District Court for the Eastern District of Pennsylvania on December 22, 2009, and court entered the order on January 11, 2010. Litigation against Janey continues. On October 28, 2008, the court entered a default judgment against the corporate defendants, Your Money Access, LLC and YMA Company, LLC, barring them from payment processing for any client whose business practices are deceptive, unfair, or abusive within the meaning of the FTC Act, the Telemarketing Sales Rule, and the state consumer protection laws. The case was part of the FTC’s “Operation Tele-PHONEY” telemarketing fraud law enforcement sweep announced in May 2008. Wachovia Bank Redress Program In December 2008, the FTC announced a settlement between the Office of the Comptroller of the Currency and Wachovia Bank, N.A. to issue more than $150 million in redress checks to victims of telemarketing fraud. The checks reimbursed consumers for funds deducted from their accounts by three payment processors that maintained accounts with Wachovia, including Your Money Access. NOTE: Stipulated final judgments and orders are for settlement purposes only and do not constitute an admission by the defendants of a law violation. Consent judgments have the force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
Gore: Kick out lawmakers who fail on climate – The Hill (blog)
February 27th, 2010. Published under Political Scams. No Comments.
Gore: Kick out lawmakers who fail on climate The Hill (blog) If he were forced to divest his financial interests in companies that stand to make billions from Cap and Trade (Kleiner Perkins as an example) we would not … and more
People and Politics | Unemployment Falls – Why Germany’s Jobless Rate Has Hit a New Low
February 19th, 2010. Published under Unemployment. No Comments.
In spite of the financial crisis, the number of unemployed in Germany is the lowest it’s been in 16 years. Currently, some three million people here are without work. Labour market reforms introduced by the then chancellor Gerhard schrã¶der are credited with lowering the unemployment rate. Many people are being forced to accept low-paying jobs. Well-qualified job seekers, who had been unemployed for long periods, are now finding jobs too. We try to find out the reasons for the turnaround on the job market.
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People and Politics | Unemployment Falls – Why Germany’s Jobless Rate Has Hit a New Low
Regulators of the World Unite!
February 17th, 2010. Published under Economic News. No Comments.
With apologies to Marx and Engels, this may also sound like the clarion call for those responsible for regulating financial institutions. We have already seen developed countries discuss how regulations on banking, derivatives, etc, can better be coordinated… all the better to keep the financial players from picking the best domicile for their activity. And, now, we
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Regulators of the World Unite!
Score Another Consumer Advocate Victory for FMD Consumer Blog
February 6th, 2010. Published under Business Scams. No Comments.
This was a hard ‘nut” to crack. I finally determined that FreedomRoad Financial was owned by Evergreen Bank Group / Bancorp Financial Inc, both of Oak Brook Illinois. The backstory A consumer and his family was being harassed by FreedomRoad Financial for being a credit reference on a loan application. Imagine that, being harassed over someone else’s debt for being a credit reference. FreedomRoad Financial’s alleged investigator even called the consumers family and scared the consumers mother to such a degree that she literally “freaked” out. I suspect though that the “investigator” is an employee of FreedomRoad Financial. Read the fill story here on FMD Consumer (opens in a new window). As a consumer advocate / Consumer Watchdog, I managed to contact the CEO of Evergreen Bank Group and the Vice President of FreedomRoad Financial and within 24 hours they contacted me and are investigating the issue. Hopefull they will fire the “investigator” and “Michelle” for violating collection laws. This is the response I received from Tom Collins the Vice President of FreedomRoad Financial: “Thanks for bringing this to our attention.
UPDATED: Freedom Financial of California Behind Harrassing Debt Collection Phones Calls – 866-354-5387
February 5th, 2010. Published under Business Scams, Fraud. No Comments.
UPDATE: The consumer that was begin harrassed over a debt that wasn’t his, he was merely a reference on the original loan. He finally received a response, Freedom Road Financial in Los Angeles were behind the calls. I aso discovered the Freedom Financial involved with the harrassment is owned by Evergreen Bank Group which is owned Bancorp
UPDATED: Abusive Debt Collection Tactics from 866-354-5387 Freedom Financial of Los Angeles
February 3rd, 2010. Published under Business Scams, Fraud, Scams. No Comments.
I received an email last night from a consumer that claims they are only a reference listed on an account. Supposedly he isn’t a signee at all, yet he and his family are being harassed by a caller (866-354-5387) claiming to be an investigator and stated the Fair Debt Collection Practices Act (FDCPA) didn’t apply to him. Hi, i have been contacted by a debt collector looking for a person who put me down as a reference, i told the investigator Davis i did not know where the motorcycle was and i had already told that to previous collectors from his firm, i asked him never to call me again, he then stated that he was not a collector rather an investigator, and was not bound by the collection laws, he then went on to call my family members telling them i was in major trouble freaking out my mother , is there anything i can do in this situation? i recorded a call from him. he would not give me a company name but did leave a number 866-354-5387 . What are my options? If it were me, I would temporarily block my caller ID and call the number to see if the number is legitimate. If it is find out who they are and then run to the closest consumer protection you can find. “Investigator” Davis” is not an investigator, he is a debt collector using illegal tactics, that is why he refused to give you the company name, he knows he he is breaking the law by calling the consumers family members and scaring them. If he calls back again ask him for his state investigator license, if he isn’t a debt collector (he probably is though) then remind him that investigators in your state are licensed by the state and he must provide you his investigators license number. What will mostly likely happen is one of the following: (a) he’ll hang up and not call again, (b) Give you some sort of bogus license number. If he does then you can get your state involved by filing a complaint with the state regarding a fraudulent investigator. After all if he gives you a bogus number than he is incriminating himself. If he refuses to give you a license number you bet he is a debt collector that breaks the law. Either way you got him and the company involved by the “cahones”. While I believe it is a debt collector it may be a collection scam, there are quite a few of them making the rounds across the U.S. I would suggest talking to your family and tell them that it is a debt collector using scare tactics. Ask them if possible to record future conversations or at least keep a log with the dates and times that they call each family member. If you do find the company behind the number and sue them, you will need the times/dates for use in court. I did look into the phone number, I didn’t find the company behind the number but did find references to complaints of “Marshalls” and “Investigators” calling from that number. Typical rouge debt collector scare tactics. Until such time that the identity of the company behind the 866-354-5387 is found, a consumer has limited resources in which to fight back. I would start with my states consumer affairs division and file a complaint. You may also want to consider filing a complaint with the Federal Trade Commission (FTC), it probably won’t help you personally but there will be a record of the abuse. You could also file a report with the local police regarding the harassing phone numbers and then have the phone company put a trace on the line. The phone company generally won’t put a trace on a line unless a police report has been filed. I once had a debt collection company call me claiming to be an officer of UCB (United Collection Bureau) and she got all kinds of nasty, even told me she would call my neighbors and while on the phone with me she did, and my neighbor called me and told me immediately. I should have sued them, but at the time I didn’t know how (now I do). I did call United Collection Bureau and talked to the vice-president of compliance. After playing back the conversation between myself and the UCB officer, he said measures would be taken and I never go hassled by UCB again. Like I said I had the physical evidence, I just wish I knew then what I know about suing debt collectors for violations of state and federal law. UPDATE: The consumer that was begin harrassed over a debt that wasn’t his, he was merely a reference on the original loan. He finally received a response, Freedom Road Financial in Los Angeles were behind the calls. “I told “agent Marshal Davis” out of “northern CA” that i did not trust that he was a real investigator, and might be a phishing scam. I managed to get him to tell me that he is working on behalf of FreedomRoad Financial www.frf1.com he then gave me his contact at freedom road financial Michelle Peacan and her number to verify that he was working for them, i called her at 775.562.3816 and asked if i could record the call and she said no and that she knew who i was and that she has an agent working the case, i then said i did not trust that she worked for freedom road financial and she gave me the their 866.455.7623 main phone number to verify that she was a company representative, stating that she was the only michelle working there, sure enough dial by name brings you to Michelle Peacan, I told her that i was recording the call, i said that i never signed for anything and was not contractually obligated to them and wanted them to stop calling me, she stated that i was involved because i had once told their collection agent i knew where my friend lived and where their bike may be, i then asked if i was in trouble she said that i was involved with the theft of the bike, again i asked if i was in trouble and she said she was not a lawyer and that she would do what she had to to get the bike back and hung up on me.” Need help in dealing with crazy or sue happy debt collectors? Give my book a read .
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UPDATED: Abusive Debt Collection Tactics from 866-354-5387 Freedom Financial of Los Angeles
I’m about to Sue Worldwide Asset Purchasing II LLC, Hollander Law Offices LLC and Leading Edge Recovery Solutions. They are now Co-Defendants
February 2nd, 2010. Published under Business Scams. No Comments.
These jokers take an alleged $12,000.00 debt, turn it into a $15,000.00 debt then in short order turn it into a $17,000.00 debt. Time to start suing. Evidently Worldwide Asset Purchasing II, LLC (State of Nevada) thinks I owe them. As far as I know I have never had a MBNA account. I did receive a long time ago something stating I owed $12,000.00 to MBNA. May be I do and maybe I don’t. Anyway the junk debt buyer (pays pennies on the dollar for debts), turned the alleged debt over to Hollander Law Offices (a foreign corporation in Georgia) claimed that I owed $15,456.30. Hollander seemed to enjoy leaving voice mail at my employers office that they are debt collectors, we aren’t talking once but many times. I never gave anyone permission to contact my employer about a debt. Can you say multiple violations of the Fair Debt Collection Practices Act (FDCPA)? Hollander Law Offices, LLC sent me a letter on 9/12/2009 stating that I owed $15,460.30 (remember the date) I of course ignored the empty legal threats of Hollander Law Offices, LLC. And so I should have. On January 25, 2010 I receive a letter from Leading Edge Recovery Solutions, stating that they represented Worldwide Asset Purchasing II, LLC. for the amount of $17,007.15. Somehow in the period of about 5 months the alleged amount owed jumped $1,541.85. That’s a lot of interest of fees. Bear with me and I will explain all of the violations of the FDCAP this entails.
Explosion of "Fringe Financial Services" Underscores Need for Strong Consumer … – AlterNet
February 2nd, 2010. Published under Political Scams. No Comments.
Explosion of “Fringe Financial Services” Underscores Need for Strong Consumer … AlterNet In 2005 CLS filed a lawsuit against Cash Today, one of Philadelphia's largest check-cashers, for breaking Pennsylvania's usury laws (which cap interest … and more
Virginia AG Goes After Capital One for Debt Collection and Re-Aging
January 25th, 2010. Published under Fraud. No Comments.
I’ve had dealing with Capital One myself, they are a sneaky bunch, it appears that the Virginia Attorney General decided to do something about it. Hopefully other State’s Attorney Generals will dig deeper into Capital One’s business practices. West Virginia Attorney General Darrell McGraw announced Friday that his office has sued credit card issuer Capital One and a debt collection agency for “unconscionable conduct in connection with their credit card lending and collection practices.” The complaint alleges that Capital One Bank, a subsidiary of Capital One Financial Corp. (NYSE: COF), tricked consumers into payment plans by sending them solicitations disguised as offers of new credit. The arrangement allowed Cap One to re-age the debt so that it did not fall under the statute of limitations.
Treasury Bills and the Budget Deficits: A Review of Financial Markets – Center for Research on Globalization
January 18th, 2010. Published under Political Scams. No Comments.
Treasury Bills and the Budget Deficits: A Review of Financial Markets Center for Research on Globalization Our current weather worldwide is testament to the scam of global warming. There goes Cap & Trade with only ten months to bi-elections. … and more
Liquidity Crisis – A Look From Inside
January 17th, 2010. Published under Economic News. No Comments.
Introduction. In the wake of the financial market turmoil that arose over the last few years and which already brought down some big financial institutions, the question remains what banks can and should do to protect themselves from the worst-case scenario. This article describes how banks operate in time of crisis and what their instruments
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Liquidity Crisis – A Look From Inside
Debt Collection Supervisors at Academy Collection Service Settle FTC Charges
January 10th, 2010. Published under Fraud, Scams. No Comments.
If Hackers Attack Your Business Then You Can Be Held Legally Responsible
January 4th, 2010. Published under Fraud. No Comments.
The next step for mostly anyone that has a brick and mortar store set up out in the real world is to create an online virtual space for their customers to shop in. Of course anyone that is in business has heard of the great advantages that can be gained when you bring your store online. You have access to a lot more customers in a global arena. Plus the use of the latest and greatest software allows your transactions to be made easily without any problems. All you have to do is to take the credit card, process it, and get ready to take the order, right? Wrong, having your business online is a great way to make extra money but there are some considerations that are there that you can not take lightly. One of those are the very serious security issues that can arise from taking someone’s credit card online. If this is handled the wrong way you can be held legally responsible. Right now there is a case going on between the financial institution Capital One and an electronic testing firm from Louisiana. The name of the company is JM test systems and they had more than $97,000 stolen through the use of illegal bank transfers. Capital One is stating that it is not their fault and they are not involved with the transaction beside letting it go through their systems. How this case will pan out is anyone’s guess and will, undoubtedly, be expensive in either case. Therefore, it pays to take sure security seriously. When you are a company that takes a person’s credit card number, you must have the best security that you can possibly afford. You have to be certain that the protection of the numbers is your number one priority and that you take it seriously. If you are a small business the best thing that you can do is to allow a third party entity that is trusted to handle your credit card processing. Look at the companies that get the best reviews and use them. These people are professionals and handle security threats on a daily basis. They will be able to handle the security of your customers personal data better than you can. You have to make sure that when you decide to take orders online that you do not take this responsibility lightly. People are entrusting their credit card numbers in your hands. If you are the one that slips up by not providing enough security then you can be legally liable. If Hackers Attack Your Business Then You Can Be Held Legally Responsible is a post from: Scam Types dot Com Check out The Best Internet Security Programs Of 2009
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If Hackers Attack Your Business Then You Can Be Held Legally Responsible
Wall Street’s Lost Decade
December 30th, 2009. Published under Economic News. No Comments.
As we enter the second decade of the 21st Century, Wall Street is in an upbeat mood since the financial upheaval experienced in late 2008. Bringing good news to investors and Governments around the World, but the bad news is that the first decade of the 21st Century a decade were stocks had an average
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Wall Street’s Lost Decade
Financial Reform – The Movement Has Begun
December 10th, 2009. Published under Economic News. No Comments.
Our current financial crisis has spawned an astounding amount of state and federal legislation aimed squarely at the financial services industry. Legislators are determined to prevent us from making the same mistakes twice, and are vowing to protect consumers from what they refer to as “predatory lending”. But how far should these new policies reach?
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Financial Reform – The Movement Has Begun
VIDEO: Global Warming: "Cap and Trade" Will Not Work for Climate – Center for Research on Globalization
December 10th, 2009. Published under Political Scams. No Comments.
VIDEO: Global Warming: ” Cap and Trade ” Will Not Work for Climate Center for Research on Globalization … for more than 20 years – say that sulfur dioxide was different, and that cap and trade for climate is a scam which only benefits the financial players.
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VIDEO: Global Warming: "Cap and Trade" Will Not Work for Climate – Center for Research on Globalization
Children’s Book Published To Help Unemployed Families
November 7th, 2009. Published under Unemployment. No Comments.
Author James Howard Carr discusses the value of his children’s book, “Will My Daddy Ever Work Again?” This recently published work can help unemployed parents openly and safely discuss their financial difficulties with their young children so to help everyone better cope with the family’s current uncertainties.
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Children’s Book Published To Help Unemployed Families
Phishing – What Is It?
October 28th, 2009. Published under Fraud, Scams. No Comments.
Phishing is an illegitimate method of extracting the personal and other financial details of a person. Basically, it is a process of tricking a person on the internet to retrieve their banking passwords, bank accounts, phone number, credit card details, etc. This practice has grown over exponentially over last few years. The imposters send you emails that can lure you into entering your personal details somehow into the mails sent by them and once they get what they want, they will raise a toast and have a bash on your hard-earned money. The laws and police have become very vigilant and tough to nail these kinds of fraudsters. Fraudulent E-Mails The preferred mode of Phishing is via sending fraudulent emails. Note, though, that reputed organizations like Amazon, eBay and banks never ask anyone for their password in their emails. Next, whenever you open a phishing email, then the link in that mail will always open a site that has no security encryption. For instance, the valid url of the site will not have HTTPS at the beginning and many email links have some other extension like .rs at the end of the email. Moreover, the format of the email is very generic whereas the reputed organization always refers to you with your customer id number in their emails. The most effective manner to remain protected from phishing scams is that you have enough knowledge to recognize one instantly. However, installing pop up blockers and spam filters in your browser is yet another step you can follow.
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Phishing – What Is It?
How Can I Avoid Vishing Scams?
September 22nd, 2009. Published under Fraud, Scams. No Comments.
How to avoid vishing scams If you don’t already know what vishing is then you need to read yesterday’s post – What Exactly Is Vishing ? Today I am looking at a few very simple ways of ensuring you don’t become a victim of this crime. Rule #1 can be applied to just about every scenario you may ever come across online – DO NOT REVEAL YOUR SENSITIVE INFORMATION TO ANYONE , INCLUDING BANK EMPLOYEES. Whether you are contacted via email, IM or phone you should never, ever, reveal sensitive information to someone you cannot completely trust. If you always keep that in mind then you will have improved your internet security immeasurably. The other rules are just as much common sense – Banks and other financial institutions never call and ask you for personal information. The call or message may say that your call is being recorded but this is just to scare people so that they do not call the authorities. Notice how the caller never calls you by name. That is because they have no idea what your name is! If your bank or credit card number asks for your account number then they must be false – they should already know such details. Just because they don’t ask for your CVV2 number don’t think they are legit – some people can still steal your money without that information. Some banks, especially the small ones, usually have the last 6 numbers of the card the same for all the cards. So thieves will ask only for the last 6 digits of your credit card number because they know the first ones. So don’t think that if they ask only for 6 digits they cannot steal your money. They can do this just with your PIN and the last 6 digits of your card. Remember the above and stay safe. Don’t get vished!
UK August Apathy Moves Into September Summitry
September 18th, 2009. Published under Economic News. No Comments.
August is apathetic in the financial industry because the EU is in recess, so is Parliament in London; holidays dominate as the schools empty their childish cargo back into the arms of mum and dad, who usually schlepp into the City every day but have retreated to beaches and ski slopes. August is now over and
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UK August Apathy Moves Into September Summitry
Hulla Hoops Scams
September 7th, 2009. Published under Fraud, Scams. No Comments.
I remember hearing Sawyer, from the TV series “Lost” , mentioning the hulla hoops scam in one episode so that is why I had to go find out what it was… With increasing interest rates, many people quickly find themselves in financial difficulties, especially if they already are subject to a large number of hire-purchase or financing contracts. A number of people often find themselves victims to vehicles or houses being repossessed. Many people often will attempt to take other measures rather than losing their property or being blacklisted by financial institutions, such as attempting to sell the property and making a small profit, if possible. More often than not these people might find that selling their property, especially vehicles, are not as easy. Finding a buyer may proof to be futile. It is in this battleground where many fraudsters flourish and target innocent victims with promises of a quick fix for their financial difficulties. In the majority of instances it is this ‘quick fix’ offer that will end the victim up on the wrong side of the law. HOW IS THE HULLA HOOPS SCAM COMMITTED? Offenders of this scam generally advertise their services in newspapers, offering assistance to vehicle owners who are no longer in a position to afford their monthly instalments. They often also offer vehicles to people who do not qualify for vehicle finance. These offenders will offer a vehicle owner the opportunity of being introduced to a person willing to take over the vehicle instalment. This will prevent the repossession of the vehicle and blacklisting of the owner by a financial institution. The client will then enter into an agreement with the new person taking over the instalments and pay an administration fee to the offenders. The person taking over the instalments will then be responsible for paying the instalments to the offenders, who will in turn be responsible for making payments to the bank. When the monthly instalments are received by the offenders, they will never make the payments to the financial institutions. This subsequently leads to the repossession of the vehicle and also criminal charges laid against the victim. HOW DO YOU PROTECT YOURSELF AGAINST HULLA HOOPS SCAMS? Always remember that, legally, you are not allowed to let another person take over your vehicle instalments. Never pay any third party offering this service. If you are in financial difficulties, it is unfortunately a fact that you would have to return the vehicle to the financing institution.
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Hulla Hoops Scams
Job Search
September 2nd, 2009. Published under Unemployment. No Comments.
bit.ly Have you lost your job in the financial crisis wave? While you are on a job search, take some time out to study the root of the financial crisis and why you lost your job – www.youtube.com
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Job Search
Mann Bracken Defendant Fair Debt Collection Practice Act – 89 Federal Lawsuits so far in 2009
August 25th, 2009. Published under Fraud. No Comments.
Mann Bracken seems to be continuing it’s practice of violating Federal and State Law, even the state of Georgia and New York is suing hem and they continue to do business as usual. Well you know what they say about Karma, their time is coming soon. The below Federal Lawsuits against Georgia’s Mann Bracken keep piling up and these bring the total lawsuits naming Mann Bracken defendant to 89 for 2009. August 20, 2009 | Appel v. Mann Bracken LLC CA Northern | Spero | Consumer Credit | Fair Debt Collection Act Plaintiff: Jack Appel Defendant: Mann Bracken LLC August 17, 2009 | Wilkinson v. Mann Bracken LLC KS | Lungstrum | Consumer Credit | Fair Debt Collection Act Plaintiff: Dan Wilkinson Defendant: Mann Bracken LLC Sandra Bergquist v. FIA Card Serices, N.A. et al IL Northern | Leinenweber | Other Personal Property Damage | Petition for Removal Plaintiff: Sandra Bergquist Defendant: FIA Card Serices, N.A., Mann Bracken, LLP, MBNA American Bank, N.A. August 12, 2009 | Hoffman v. Mann Bracken, LLP CO | Arguello | Consumer Credit | Fair Debt Collection Act Plaintiff: Rossa Hoffman Defendant: Mann Bracken, LLP August 11, 2009 | Bertrand v. Mann Bracken, LLP f/k/a Mann Bracken, LLC TX Eastern | Heartfield | Other Statutory Actions | Fair Debt Collection Act Plaintiff: Catherine M. Bertrand Defendant: Mann Bracken, LLP f/k/a Mann Bracken, LLC, Mann Bracken, LLP f/k/a Mann Bracken, LLC Toxen v. Mann Bracken LLC et al GA Middle | Land | Consumer Credit | Fair Debt Collection Act Plaintiff: Charlene E Toxen Defendant: Mann Bracken LLC, Midland Funding LLC August 10, 2009 | Dougherty v. Mann Bracken, LLP PA Middle | Munley | Consumer Credit | Fair Debt Collection Act Plaintiff: Thomas Dougherty Defendant: Mann Bracken, LLP Mann Bracken, L.L.P. v. LDG Financial Services, L.L.C. MD | Williams | Other Personal Property Damage | Petition for Removal- Property Damage Plaintiff: Mann Bracken, L.L.P. Defendant: LDG Financial Services, L.L.C. August 6, 2009 | BUTLER v. PALISADES COLLECTION, LLC et al PA Eastern | RUFE | Consumer Credit | Fair Debt Collection Act Plaintiff: HARRIET BUTLER Defendant: PALISADES COLLECTION, LLC, MANN BRACKEN, LLC, AMY F. DOYLE August 4, 2009 | McElvy v. Mann Bracken, LLC PA Middle | Rambo | Other Statutory Actions | Fair Debt Collection Act Plaintiff: Thomas McElvy Defendant: Mann Bracken, LLC July 31, 2009 | Ferguson v. Mann Bracken, LLP MI Western | Neff | Consumer Credit | Fair Debt Collection Act Plaintiff: Steve Ferguson Defendant: Mann Bracken, LLP July 30, 2009 | Morley-Ball v. Mann Bracken, LLC GA Northern | Moye | Consumer Credit | Fair Debt Collection Act Plaintiff: Joyce Morley-Ball Defendant: Mann Bracken, LLC July 27, 2009 | Abbott v. Mann Bracken, LLC OH Northern | Adams | Consumer Credit | Fair Debt Collection Act Plaintiff: Brian Abbott, Brian Abbott Defendant: Mann Bracken, LLC July 23, 2009 | JONES v. MANN BRACKEN, LLP PA Eastern | TUCKER | Consumer Credit | Fair Debt Collection Act Plaintiff: NATALIE JONES Defendant: MANN BRACKEN, LLP MORGAN v. MANN BRACKEN, LLP PA Eastern | FULLAM | Consumer Credit | Fair Debt Collection Act Plaintiff: LORI MORGAN Defendant: MANN BRACKEN, LLP
Mid state Group Financial of Jonesboro Georgia 770-473-6976 Email Spamming
August 4th, 2009. Published under Business Scams, Scams. No Comments.
This state of Georgia spammer claims to be Mid State
4,054 Federal Consumer Credit Lawsuits filed so far in 2009 as of July 24, 2009 – FTC Sits on its Laurels
July 25th, 2009. Published under Scams. No Comments.
Most of 4,054 the federal consumer credit lawsuits filed so far in 2009 are Fair Debt Collection Practices Act (FDCPA) against Debt Collectors and debt collection law firms. You can see for yourself at Justia.com . If you ask me that’s a lot of consumers being abused by debt collectors using questionable collection tactics. This is quite troubling as it shows that for the most part the Federal Trade Commission ( FTC ) and state attorney general’s are not getting involved in consumer abuse as much as they should be. These numbers also show that many debt collectors are willfully violating federal and state law to collect debts. I could see if there were maybe 75-100 (total) filed each month, but the numbers of lawsuits that consumers file
Many Questionable Debt Collectors, One Man and a Hedge Fund to Rule Them All
July 24th, 2009. Published under Business Scams, Fraud, Scams. No Comments.
It kinds of sounds like the beginning of a J.R.R. Tolkien movie… Apparently in the debt collection business having a lot of money keeps regulators, law makers and industry enforcement out of your hair. Hopefully with the true nature and operation of Accretive Technologies being exposed and publicized perhaps regulators, enforcement and law makers will take swift action. Slowly but surely opaque layers are being peeled away and exposing just who and what are behind the National Arbitration Forum (NAF) and several national debt collection law firms. Namely Mann Bracken LLC / LLP, Wolpoff and Abramson and Eskanos and Adler. All of which are “owned” by Axiant, which is in turned owned by a hedge fund, Accretive Technologies, which in turned it owned/run by one man. His name is J. Michael Cline.
Debt Collector NCO Financial Systems Claims to Have Been Defrauded By A Georgia Debt Collection Attorney Firm
July 17th, 2009. Published under Fraud, Scams. No Comments.
Talk about calling the kettle black. Karma sure has been kicking some serious butt in the debt collection industry lately! A national collections company has accused the Sandy Springs, Ga., law firm it hired to file collection actions for clients such as Capital One, American Express and Discover of fraud and other misdeeds. NCO Financial Systems claims in a suit filed July 1 in Atlanta’s federal court that it gave Trauner, Cohen & Thomas more than $1.3 million to reimburse the firm for fees relating to more than 15,000 collection lawsuits that were to have been filed to collect more than $100 million in outstanding debts. In addition to fraud, the suit alleges breach of contract, breach of fiduciary duty, unjust enrichment, negligence and negligent supervision and seeks an immediate accounting for all the suits, damages and attorney fees and costs. – read the full story on Law.com Personally I find this extremely funny from a personal point of view.
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Debt Collector NCO Financial Systems Claims to Have Been Defrauded By A Georgia Debt Collection Attorney Firm
Dead Man Spending
January 13th, 2009. Published under Fraud, Scams. No Comments.
Perhaps the fastest growing crime in the world right now is that of identity theft. More specifically, the UK identified Impersonation of the Dead (also known as IOD) as the fastest growing area within identity theft. It has been estimated that there have been in excess of 100,000 cases of Impersonation of the Dead fraud in the UK thus far, at an annual cost of around £1.5 billion. UK INFORMATION TO BE SHARED In a joint effort between the Registrars General for England and Wales, Scotland and Ireland, records of those who have died recently are going to be freely shared with the main credit reporting agencies and the law enforcement services. Any organisation, such as Experian who are already approved, can apply to receive the information on recent deaths. However, agencies will have to undergo a strict application process in addition to agreeing to operate within a strict licensing agreement. It is estimated that an average of around 12,000 deaths will be reported weekly in the UK. Death records were, of course, publicly available before now, though credit agencies and law enforcement had no means of easily accessing the information in order to prevent identity theft. THE DEATH INDEX In the US, the Death Index is a complete list of people who have died. The Death Index includes information such as their birth dates, date of death and Social Security numbers. It was originally designed so that banks and lenders could ensure that people did not exploit the deceased’s personal information. Under the Freedom of Information Act, the Death Index is updated each month and made public by the Department of Commerce. Tracy June Kirkland (see below) notoriously took advantage of the Death Index by exploiting a loophole which allowed her to take over accounts that were already open. According to Mike Ward, a spokesman for Rootsweb, “The reason the Social Security Administration has it out there is to prevent fraud, and when it’s used to perpetrate fraud it’s because not all the checks and balances were in place on the financial institution’s end.” TRACY JUNE KIRKLAND One of the more infamous cases of identity theft of the dead in the US involves Tracy June Kirkland who was charged by federal prosecutors with aggravated identity theft, amongst other crimes. Kirkland’s research was more intensive than simply reading obituaries – she utilised genealogy web site Rootsweb.com in order to garner the information she required to conduct identity theft. With such readily available names, social security numbers and birth dates Kirkland was able to randomly call credit card companies to find out if the deceased person had an account with them. If she was able to confirm that an account did indeed exist then she would change the registered address to one of her many rental mailboxes. Her 3 year crime spree is believed to have included the personal information of over 100 dead people. Dead Man Spending is a post from: Scam Types dot Com Check out The Best Internet Security Programs Of 2009
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Dead Man Spending