The Rise of Fake Payday Loans

What's worse than a payday loan? a fake payday loan.  There is a breed of bottom-feeder collection agencies now that are no longer satisfied collecting on stale credit cards and predatory payday loans, some are now making up debts out of thin air.  I recently received a call from a lady who (three days before Christmas) was called by a company called Westgate Arbitration.  The "investigator" who called her allegedly said that she was under investigation for passing a bad check and she was subject to arrest.  The check allegedly related to a payday loan by a company called SGQ.

I did some checking on these companies. Based on information on the web, allegations of this type are not new to either Westgate Arbitration or SGQ.   Although the company was not named in the broadcast, it appears that Westgate Arbitration was caught on camera systematically teaching its collectors to lie by Inside Edition.  There are multiple reports of SGQ trying to collect on made-up payday loans through a number of collection agencies.



If you get calls from someone identifying himself or herself as an "investigator", "special agent" or such, and they say you owe money for a bad check or any type of commercial account, you should immediately become suspicious.  It is likely that they are collectors from a fringe, thuggish brand of collection agency. They will tell you anything to get money from you.  Real agents don't call on such things.  Real agents don't ask you to wire money or give bank or credit card info over the phone.  If you get these calls,  You should immediately contact the Consumer Finance Protection Bureau and talk to a consumer lawyer affilliated with the National Association of Consumer Advocates (NACA). Using this link, you can find an experienced consumer lawyer in your area.

Car Buying: Did you get cheated out of your employee discount?

While we are on the subject of employee discounts, I am looking into the case of a consumer who believes a car dealer cheated him by telling him he was getting the employee discount but in fact didn't give him a discount at all.  If this has happened to you, please contact me.  If you don't live in Indiana, I will try to refer you to a NACA consumer lawyer in your area.

Did a Car Dealer Steal Your Employee Discount Number?

I'm looking into complaints that a car dealer used the employee discount number that belonged to an employee of a major manufacturer without that employee's permission.  If this has happened to you, even if you don't live in Indiana, please call me.  If necessary, I can refer you to a fellow NACA consumer lawyer in your state.

State of New York Hammers Ocwen

The New York Department of Financial Institutions has settled a range of issues with the leading problem loan mortgage servicer, Ocwen Financial Corp.  The feds and other states would be well advised to look at this settlement as an example of what can be done through civil enforcement. The Ocwen Executive Chairman agreed to resign, Ocwen agreed to pay $150 million in fines and restitution (This is just for New York residents, mind you.), and Ocwen agreed to state supervision over its entire operation.  

At one time, when I worked at UAW Legal Services Plan, all of my mortgage servicing cases involved disputes with Ocwen.  Among the complaints were improper add-on charges including insurance and improper handling of  foreclosure loans, both loans where foreclosure was filed and shouldn't have been and improper conduct during the foreclosure process.  

I had a case that went on for a year before we figured out the problem was a mortgage payment that was paid to a previous servicer in the gap period between the time Ocwen bought the loan and the time Ocwen communicated the purchase to the home owner.  

If you look at your mortgage statement and see charges that you don't understand, you have the right to contact your servicer and request an explanation.  All too often the charges don't belong.  If you can't resolve the problem through contacting your serv'icer, contact a NACA consumer attorney at www.consumeradvocates.org.  

http://www.wsj.com/articles/new-york-financial-regulator-announces-settlement-with-ocwen-1419257065

Class Action Relief - Driver Solutions LLC

Not long ago, I wrote about a company called Driver Solutions, LLC, which was suing students from all over the country in Indiana no matter where they signed their contracts.  I was just made aware of a class action settlement giving relief to these consumers, even if a judgment was entered against them.  The law firm that won this settlement was the Howie Law Firm out of Dallas, Texas. Great job, Howie Law!

Follow this link for more information on the settlement.  Thanks to my fellow NACA-member, Robert Duff, a fine consumer lawyer in his own right, for the heads up about the settlement.

It appears that in the past couple years or so, Driver Solutions has been signing its new contracts in Indiana. That gives te company the right to sue in Marion County Indiana, nevertheless, if you are stuck in a problem Driver Solutions contract, and you feel like the company hasn't kept up its promises, please feel free to call me.  317-662-4529

Investigation of ementoring, emillionaire and other Work-at-Home Scams

I'm looking into a complaint that I received from a senior citizen about a company called eMentoring, which looks to be associated with another company called eMillionaire, which in tern appears to be a trade name of a company called ADM Ventures.  The company targets vulnerable people, especially seniors, with a variety of pitches to make money, including a work at home pitch.  They get authorization to take money out of your bank account, then calamity happens.  There had been a variety of complaints on ripoffreport.com, but now there is a page where Ripoffreport essentially says that ADM is their good graces, with a "commitment to total satisfaction."  Your guess is as good as mine regarding how ADM convinced Ripoff Report that it is committed to total customer satisfaction. In the past, I have found Ripoff Report more trustworthy than the Better Business Bureau, but this case gives me reason to rethink that supposition.  In the meantime, if you are solicited for any work at home program, just say no.  Don't give any telemarketer your bank account or credit card number.  If any company makes an unauthorized transfer out of your bank account, go to your bank and file a form to have the unauthorized transfer reversed.  If you are scammed you can file complaints with the Federal Trade Commision, your state attorney general, and numerous complaint sites online.

If you are a lawyer or other person who is investigating these companies, a good place to start is this bankruptcy court complaint which appears to have been filed by a creditor who allegedly was owed money by these companies.

How to Handle Medical Debt Problems on Your Credit Report

Medical debt on credit reports is a huge problem in the United States.  Small medical debts cause large unnecessary harm to the credit rating of millions of Americans. The Consumer Financial Protection Bureau just issued a press release about the problems with medical debts on consumer credit reports.  According to the CFPB, over 52% of all collection accounts on credit reports are medical debts. The tragedy is that many, if not most, of these delinquent accounts belong to people who can and do pay their bills.  Even a single unpaid bill can be a negative item on your credit report for 7 years - even if later paid - and significantly impact your credit score.  The scope of the problem is highlighted by the CFPB's graph showing the preponderance of medical accounts.

I receive a lot of calls from people who are surprised at medical debts showing up on their reports. Medical bills can be confusing, and they come in batches. It is easy for a bill to slide between the cracks, and collectors aren't always diligent about sending collection notices before reporting the debts.  Also, consumers often are caught in the middle between their health care providers and their insurance companies.  The providers often submit inadequate claims to the insurance companies, and the insurance companies often wrongfully delay or refuse payment.

How to get medical debts off your report

The key to getting these medical bills off your report is to become a letter-writing machine. When a provider or a collection agency puts a medical collection item on your credit report, if it is owed, you can pay the bill, BUT, pay it with conditions.  Put in your letter that you are tendering the payment under the condition that they delete the tradeline on the credit report.  (A tradeline is the term for the reporting of a single account on your credit report.) If appropriate, you can add in your letter that you are paying a disputed bill (and give the reason) or that it should not have been reported because you did not have the opportunity to pay it earlier.  Sometimes it even makes sense to pay a bill that should be covered by insurance. It is penny-wise and pound-foolish to refuse to pay a small bill on principle when it can cost you thousands of dollars in extra credit costs.  If you pay a bill the insurance company should have paid, you can always submit it to your insurance company to be reimbursed to you.

If you flat-out dispute owing the bill, you should send a letter VIA CERTIFIED MAIL (keeping a copy) to the medical provider or collector advising them that the bill is disputed and why.  You should demand that the tradeline on the credit report be removed or replaced with a notice that the account is "disputed by the consumer".  In a couple weeks you should check your credit reports, and if the disputed item is still listed (and not listed as disputed), you should send a dispute through the credit reporting agencies.  That usually solves the problem, but if it doesn't, it is time to call a NACA (www.consumeradvocates.org) consumer lawyer because you may have a case for damages under the Fair Credit Reporting Act.

If you can get to the bill before it goes on the report . . .

The best way not to have a problem with medical bills on your credit report is to get to the bill before it is reported. That isn't always possible, but it is sometimes. These bills usually fit these categories: bills you can't pay, bills that are inaccurate or incomprehensible, and bills that are subject to insurance disputes and delays.  If you can't pay the bill, it is important to make arrangements with the medical provider as early as possible and ask for payment terms and write-downs based on your ability to pay.  Make sure any plan given is backed up in writing.  If bills are inaccurate or incomprehensible, you need to advise the provider of the problem in writing and send a copy of your dispute to the insurance company.  In most cases you are supposed to receive a letter from a collection agency advising you that you have 30 days to dispute the debt before further collection actions occur, including the action of putting it on your credit report.  You need to take these letters seriously and send a dispute letter to the collection agency in writing, in a form that you can prove the agency received such as by fax with confirmation or certified mail.  No disputed account should go on your credit report as an undisputed debt.

How to handle insurance problems

For the bills that the insurance company should pay but doesn't, you need to write the healthcare provider and advise them to withhold reporting while you work it out with the insurance company. If you contact your healthcare provider soon enough, the provider might not send the bill to collections in the first place. You need to write the insurance company and tell the insurer why the bill should be paid. If the insurance company says the provider did not submit the appropriate claim, you need to forward your insurance correspondence to the provider advising them to keep working on the claim.  In some cases, if the healthcare provider is a member of a preferred provider network, the provider is contractually obligated to go through a dispute procedure with the insurance company rather than billing you directly.  If your insurance company unreasonably withholds payments, you can and should file an administrative complaint. For private insurance that you acquire directly, you can complain to your state's insurance commission.  For medicare and medicaid, there is a claims denial process, and a complaint process.  For government-backed plans, you can also file a complaint with with the constituent services office of your congressional representative.  For insurance that you receive through work (ERISA), the official complaint path goes through the United States Department of Labor Employee Benefits Security Administration, an agency that I have found is pretty close to useless.  Another avenue for complaints is through your benefits representative at work, which is especially useful if you are in a union.   Remember to make your complaint in writing and include documentation.

Negotiating discounts

Some bills you can negotiate a discount with the collection agency.  When you bargain to a discounted amount, you should make it a specific term of the deal that in exchange for the payment, the collection agency agrees to delete the tradeline.  When you submit the payment, you should include reference to the agreement to delete the tradeline in your cover letter accompanying the payment (keeping a copy, naturally).  Often the collection agencies say they can't or aren't supposed to bargain to delete tradelines. They often do it anyway. There is no law saying any creditor has to report any debt. There might be a contractual agreement between a collector and a credit reporting agency not to settle debts in exchange for an agreement to delete the tradeline; but that's not your problem. Whenever you are negotiating with a collection agency, you need to convince them that the money you are giving them is money that they would never be able to get otherwise.  If you are married, you should let them know that you are basing your offer on the income of the person who received the services and not the other spouse.  If your entire income is social security, tell the collector that.  Most collectors know they can't garnish social security, so they will usually be very reasonable with terms. I strongly discourage making payment plans with debt collectors. They rarely give you a good deal, and it just sets you up for hounding calls.  Wait until you have a lump sum to offer; make your offer and stick to your guns.

HIPAA
Finally, there is the issue of HIPAA privacy.  Some medical collection items on credit reports come from providers whose very names broadcast private information about your health.  You can object to the inclusion of these tradelines on your credit reports with disputes to the credit reporting agencies.

As a side note, any time you dispute anything with the credit reporting agency, do it in writing, by letter, and keep a copy. If it is an important dispute that you don't want to have to do over, send it by certified mail. DO NOT use the agency's telephone or internet dispute mechanism because there is no good evidence to track your dispute.

The good news about health care collections on your credit report is that these are among the easiest credit reporting problems to solve if you are diligent with your letters.  The bad news is that it takes a lot more time and hassle than it should.  The new Consumer Financial Protection Bureau has recognized the problem, and it is working on regulations to make the process more fair. Until this regulatory response is in place, there is no substitute for your own efforts, backed up by a consumer lawyer when necessary.  The CFPB is interested in hearing your story and handles complaints regarding the reporting of medical (and other) debt.  You can contact the agency through this link.

The Integrity Staffing Solutions Case: Little Guys Get Kicked at the Supreme Court Again - Employers Can Make You Work for Free

I missed it when it first came out, but the United States Supreme Court decided an important employment law case this week, Integrity Staffing Solutions, Inc. v. Brusk. Full disclosure: I haven't read this case, and I'm not planning to.  From the write-up in The Daily Kos, I don't have the stomach to read it.  Integrity Staffing Solutions is/was a contractor for Amazon.com.  They had an employment policy to make employees stand in line off the clock for security screening before and after each shift. Sometimes it was a half hour each way.  The issue was whether the company had to pay the employees for that time.  Guess what the Supremes said?  Yep,  the employees don't have to get paid for this time.  Now, I was taught in the context of the Fair Labor Standards Act, that if you are an hourly employee, any time that is not your own needs to be compensated.  Well, apparently that was the rule before corporations destroyed the last checks on their power.  The incredible thing is this was not the typical 5-4 crazy ruling. This was a 9-0 ruling written by jurist supreme, Clarence Thomas.  If I worked for "Integrity" the first thing I would do after this ruling is march right to the closest AFL-CIO office and ask how I can form a union.  If you are reading this, here's a link to save you the trip.

Are you having problems with the Volkswagen Jetta Sportswagen TDI?

On paper, the Volkswagen Jetta Sportswagen TDI looks like one of the best combinations of power, room, cargo utility and fuel economy, and at a reasonable price, but we are working on a case where the buyer of a Sportswagen has had confounding problems with the Diesel Particulate Filter system.  The problem is complex but, in essence, a car that is great for long distance highway cruising may be totally unsuited for consumers who drive only (or mainly) short distances due to the filter system having insufficient time to heat up and burn off particulates. As I understand it the new model, a late-arriving 2015 model will not have the same problem because it has a DEF (urea mixture) emissions reduction sytem.  

My Thoughts on the Grand Jury System in Indiana

The recent failure to indict the police officers involved in the deaths of Michael Brown and Eric Garner got me thinking about the grand jury system in Indiana.  In Indiana, a prosecuting attorney can bring any criminal case through the filing of information (a criminal complaint) or through a grand jury indictment.  In Indiana, 5 out of 6 jurors must find probable cause to return an indictment.

Note, in Indiana, ANY criminal case can be initiated by the unilateral filing of information by the prosecutor, including capital murder.  No doubt this is one reason why the job of county prosecutor is an elected office. We want the discretion to wield the power of the state to be in the hands of someone who is accountable to the citizens.  Of course the electoral system doesn't always work like it's supposed to. None of our institutions do.

If you can bring any case by the filing of information, why would you ever want to impanel a grand jury?  There are numerous ways to answer that question, and I suspect that every prosecutor would answer that question differently; but I think the number one reason would be to get a sense of the community whether the case should go forward.  If you use this philosophy, it just makes sense to provide the grand jury with both sides of the case.  When a prosecutor slants the evidence presented to the grand jury, he is putting his thumb on the scales of justice, and the system doesn't work while it should.   In a controversial case, it might be better to use a grand jury to determine whether the case should go forward.  When a prosecutor chooses to do this he or she needs to be conscious of the duty of fairness to the defendant, the community and the system.  If a prosecutor fails to do this, we the voters need to vote the bum out.  That's our safeguard in the system.

What do you do if you are in a minority, and what you want isn't what the majority wants?  You can't vote the bum out.  That's a problem. In that case, I can't think of anything better than protest.  If you show the world the injustice you see, perhaps eventually enough people will come around to seeing it your way.  The right to protest is as important as any other element in the American system.  It should be honored and respected at least as much as our public officials.