Have You Been Sued by Capital Alliance Financial, LLC?

Capital Alliance Financial, LLC is a Michigan-based bad-debt buyer which files suits on credit card accounts and maybe other consumer debt.  You should know that Capital Alliance is closely related to the colleciton law firm of Stenger & Stenger, P.C., a very active regional collection law firm based in Grand Rapids, Michigan.

You should also know that Capital Alliance, often buys debt that has passed through numerous other buyers/collection agencies.  In one case I looked at the account had passed through 5 hands before getting to Capital Alliance.  In the collection industry, the price paid for an account typically goes down through every assignment, This means it is likely that Capital Alliance likely pays a pittance for the account.  Ordinarily that would mean there could be an opportunity to settle for a tiny amount; but when you have a litigation-focused firm like Capital Alliance, things don't necessarily work that way due to the coercive effect of the lawsuit.

To defend against a company like this you have to actively challenge the intermediate assignments.  Sometimes the amount of the debt makes that difficult or impossible.  If you are sued by Capital Alliance Financial, LLC, in Indiana, please call me at 317-662-4529. If you are sued by Capital Alliance outside of Indiana, talk to a NACA attorney in your area. You can find one at www.naca.net.

Car Title Loans - the Worst of the Worst

Car title loans are effectively illegal in Indiana, though out-of-state lenders do try to talk Indiana consumers across state lines to get the loans.  This is one area of consumer finance that Indiana has right, because title lenders are merchants of misery. The loans are even worse than payday loans, because when a title loan goes bad, they take your car, and that may mean taking your livelihood. Generally title lenders lend no more than 25% of the value of the vehicle. When you don't pay, they take the vehicle and resell it.  The article linked here from thetruthaboutcars.com shows that these acutions are anything but fair to the car owner, The lender sells the car as quickly as possible just to get whatever is owed for the loan and repossession.  For most of these borrowers, the car is likely the only asset that the person has, and with the repossession sale, even that is gone.

These "auction" sales may be illegal in some cases and may give you the right to a remedy. If you lose your vehicle to a payday lender, talk to a NACA consumer attorney. Find one in your area by going to www.naca.net or www.consumeradvocates.org.

HG Auto Sales, Shelby Street, Indianapolis - Odometer Fraud Allegations in the News

We put out an all points bulletin for information on HG Auto Sales in July. On November 5, 2015, Indianapolis television station WRTV-6 did an investigative report on HG Auto Sales reporting on allegations of HG Auto Sales selling vehicles with tampered odometers. Reportedly, a number of cars were hauled away, and as of today, only two vehicles are listed on HG Auto Sale's website.

Based on the number of vehicles that are alleged to be affected by this practice, it is reasonably foreseeable that anyone who chooses to sue HG Auto Sales may find that they don't have money to pay.  What recourse do the car buyers have? IF the dealer arranged for in assisted in obtaining the financing of your vehicle, any claims that you have against the dealer can be raised against the finance company.  This means that if you have a car that has had its odometer rolled back you may be able to claim an offset, and perhaps a refund from your lender.  In addition if the lender denies the applicability of the FTC Holder Rule you may have an additional action under the state deceptive consumer sales statute.  Please call us at 317-662-4529 if you have any questions.

Rue Education ("school" or "publisher"?) has turned Ripoffreport.com into its lapdog.

We are investigating a Florida Company, Rue Education.  Rue seems to have a very similar model to a company we looked at earlier this year, the Learning Network.  Both companies tout an LPN to RN program.  Many of the customers of each company sign up believing they are dealing with a school.  In both cases, once the sucker is hooked, the company insists that it is just a publisher of information materials.  I searched Google for complaints, found quite a few, then I went to one of my favorite complaint sites, Ripoffreport.com and was shocked at what I found.  Instead of lots of complaints I found this statement with slight variations in repeated "reports":

RUE EDUCATION Verified REVIEW: Rue Education committed to customer satisfaction. Rue Education always making changes to ensure client success, focusing on finding ways to help each client reach their educational goal as they balance work, family and other commitments. LPNs, LVNs, Paramedics, Respiratory Therapists, RNs in states across the country rave about Rue Education. Clearwater, Florida*UPDATE: Recognized by Ripoff Report Corporate Advocacy Program as a safe business service Rue Education pledges to resolve issues so clients feel safe, confident and secure when doing business with Rue Education. Ripoff Report Verified

  Apparently Rue is part of the "Ripoff Report Corporate Advocacy Business Remediation & Customer Satisfaction Program".  I don't know what money changed hands between Rue and Ripoff Report,  I will give this much to Ripoff Report, they put so much sugar on the Rue "reports" that at least they made it obvious that site can't be trusted to give you the full story regarding Rue complaints.

If you are having problems with Rue or its collection arm, Edu-Lend, LLC, find a NACA lawyer in your area at www.naca.net.  This is especially true if you have Rue or Edu-lend on your credit report. If you get sued on a Rue account or any similar account, don't assume that nothing can be done, talk to a NACA lawyer.

Jefferson Capital Systems, LLC: bottom-feeder debt buyer is piling up complaints

We are investigating Jefferson Capital Systems, LLC.  Jefferson bills itself as

 "an industry-leading provider of traditional and unique recovery services for consumer charged-off accounts."  

When a bottom-feeder debt buyer touts its "unique" recovery services, you need to be very worried, because the "unique"recovery services were probably thought up by the same guy who came up with water-boarding.  More than 600 complaints have been logged against Jefferson Capital Systems with the Better Business Bureau.  There is a whole page of complaints with the CFPB since April 2015, and Ripoffereport.com has a bunch of info as well.

When a debt collector collects on old, charged-off debts, you should be very suspicious of the collector's right to collect.  As is documented in Jake Halpern's book, Bad Paper: Chasing Debt from Wall Street to the Underworld, the seedy middlemen in the debt industry have been known to sell the same debt to more than one collector. Payments have been known to get lost in the shuffle of assignees, and phantom (false) payments have been known to be posted in order to renew statutes of limitations that would otherwise have expired.  I'm not saying that Jefferson Capital has done these things but such things happen in the industry.  That's why it is important for you to dispute the collector's authority to collect a debt, and it is especially true when the debt is large.

If you receive a 30 day notice to dispute a debt from Jefferson Capital Systems, or any debt buyer, you should send them a letter disputing the debt and demanding proof of when the last payment was received and how the balance was accrued,and you should demand proof of every assignment in the chain of title.  If you don't receive the documentation and they continue to collect, you should file a complaint with the CFPB and contact a lawyer through NACA.  (www.naca.net)  If the debt is large, you should consider hiring an attorney to send the letter disputing the debt for you.  A couple hundred dollars on the front end may save you thousands if it keeps you from being sued.  Often collectors will not sue a consumer when a lawyer sends the dispute letter.

FTC Shuts Down National Check Registry

The FTC announced in a press release that it shut down a group of abusive debt collectors from Buffalo, New York including National Check Registry.  These companies were outlaw "strong arm" collectors who called people all over the country threatening criminal prosecution and worse for those who didn't pay them.  The principals in the company agreed to never work in the debt collection industry again.  Let's see if this sticks.

Are you being hounded by National Credit Adjusters, LLC?

To be candid, I had the impression that National Credit Adjusters was an all talk no action bottom-feeder debt collector.  Recently though, I have become aware that they have filed a few lawsuits against consumers in Indiana, so I am paying attention to them more.  Now, that doesn't mean that their lawsuits are any good, but it does mean that they might follow up on the threat of a suit.  I suggest that if you live in Indiana and you are getting contacted by this company at all, that you call us at 317-662-4529.  It would probably be better to run this company off before they file a suit.

Were you sued by IMC Credit Services LLC?

If you have been sued by IMC Credit Services, LLC, generally over a medical debt, please call my office at 317-662-4529.  There are several practices that we are looking into relating to these cases. We will review your documents at no charge.  One of the practices involves suing both spouses on the medical debt of one spouse without satisfying all the criteria of the doctrine of necessities in Indiana.  Without getting too technical, it generally means that the creditor would have to determine who is the economically superior spouse, and would first have tried to get the money from the spouse who received the treatment.

Were you sued by Driver Solutions LLC in Allen County, Indiana?

We are continuing to look into the collection practices of Driver Solutions LLC.  It appears that they have shifted the venue for suing their customers from Marion County (Indianapolis) Indiana to Allen County (Fort Wayne) Indiana.  You can do a web search and find out in a few minutes why.  They got into a lot of trouble in Marion County.  If you are sued by this company, please call my office at 317-662-4529.

GM Recalls 1.4 Million 1997-2004 Cars for Fire Risk

Today General Motors announced that it was recalling 1.4 million cars due to the risk of a catastrophic fire.  According to ttac.com, the recalled calls are in the following years, makes and models which span most of GM's divisions.

According to Reuters, the affected cars come from the following makes and models:

• 1997-2004 Pontiac Grand Prix
• 2000-2004 Chevrolet Impala
• 1998-1999 Chevrolet Lumina
• 1998-2004 Chevrolet Monte Carlo
• 1998-1999 Oldsmobile Intrigue
• 1997-2004 Buick Regal

http://www.reuters.com/article/2015/10/27/us-gm-recall-idUSKCN0SL1PO20151027

These cars are the bread and butter of the buy-here/pay-here lots, and BHPH customers are probably the least likely to take the cars in for recalls. That's unfortunate, because other than their lives, they have the most to lose.  The owners rarely have true full coverage insurance, and a fire loss to their cars will usually be the straw that breaks the financial camel's back.

About a year ago, I saw a Chevrolet Impala that I guessed to be about a 2004 model catch fire while stopped at a busy intersection near my home in Indianapolis.  That car burned to a smoldering heap in the two minutes between the time it started smoking stopped at the light and the time the fire department arrived.  The driver got out safely but if there had been two kids in child seats, there may not have been time to get them out.  I was too far a way to help or even take pictures, but the video below of a Monte Carlo on fire looks very similar to what I saw but the fire I saw spread faster. 

Here's a video of a Chevrolet Impala catching fire during a routine oil change.

For most of these cars, the new recall is not the first recall due to fire risk.  In 2009 there was a recall that was deemed to be so urgent that GM advised owners not to park the vehicles in their garages until the recall work was done.    

If you see dark smoke, or any smoke coming from the hood of your car, immediately stop, get everybody out of the car then call 911. DON'T RAISE THE HOOD.  That will bring more oxygen to the fire and may cause it to flare up.  

If you have a car that caught on fire.  Make sure you report it to the National Highway Traffic Safety Administration.  https://www-odi.nhtsa.dot.gov/VehicleComplaint/.  If your car is destroyed in a car fire that wasn't caused by an accident, talk to a NACA lawyer near you.  Find one at www.naca.net.

Apartment Owners of America (AOA) / Landlordsofamerica.com Consumer Credit and Background Report - Are They reporting non-evictions as evictions?

More and more landlords are checking credit reports before they grant leases.  Often they don't pull standard credit reports, they pull special "trimerge" reports combining data from various sources.

A consumer contacted me because she she was refused an apartment lease based on a "consumer credit and background report" issued by Apartment Owners of America through the website landlordsofamerica.com.  Trans Union Landlord Tenant Report.  The report contained the following heading

#2 National Eviction Search/Landlord Tenant Records: Exact Name Matches (check

carefully)

After that it had information about a state court judgment but that judgment was NOT a landlord tenant case, and it wasn't an eviction.  The report listed this as coming from Trans Union.

This type of judgment reporting seems designed to be overly inclusive of unrelated judgment reported as eviction records.  NO MATTER WHERE YOU LIVE IN THE UNITED STATES if this happened to you, please contact me through my website www.hoferlawindy.com.

 I will try to network with a NACA member attorney near you to stop this practice.  (Note, for our purposes, it doesn't matter if it was more than two years ago.)

Bad Company of the day: Westlake Financial Services/Wilshire Consumer Credit

"Bad" really doesn't cover the things Westlake Financial Services and its affilliate, Wilshire Consumer Credit, were doing to their customers.

Westlake/Wilshire is in the business of high risk auto loans. Being in the high risk loan business doesn't give a company the right to lie and cheat when collecting its bills.  According to the results of a CFPB investigation written about in this time.com article, Westlake/Wilshire collectors used a program called "Skip Tracy" to falsify caller ID information.  They used the fake caller ID data to pose as pizza and flower delivery services, and in those calls asked for extra information such as where the customer's car was located.  Presumably this helped them repo the car.  On the other hand, they used "REPO" on the caller ID to harass customers when they actually weren't trying to repo the car.

Once again, the CFPB proves that it is much more on the ball than the Federal Trade Commission ever was when it comes to policing a wide variety of marketplace misconduct.

If you think you are the victim of a collection company falsifying caller ID information, file a complaint with the cfpb at consumerfinance.gov/complaint.  If they get your car, get your money or engage in especially outrageous conduct, contact a consumer attorney through NACA at www.naca.net.

More on Pension Factoring - Pension Assignments

We just did our third case in support of pensioners who got involved in pension assignment contracts.  In my opinion, these contracts are illegal not just from the point of view of the seller, but also from the point of view of the buyer as well.  From the seller's point of view, they are disguised loans without required disclosure. From the buyers' point of view, they are illegal securities.  The basic rule of securities law is that, unless an exemption applies, the security must be registered and the seller must be licensed to sell the security.  In most of these cases, the security is not registered and the seller is not licensed to sell the security.

Many times these pension securities are sold to unsuspecting buyers by their trusted life insurance agents.  These life insurance agents may have a bond and professional liability insurance. This is important because the companies putting these securities together may be practically insolvent or their assets may be out of reach of a reasonable-cost lawsuit.  The sellers' only recourse may be to bring a claim against the life insurance agent or other person who sold them the security.

Note this applies not just to pension securities but other investments that might be sold by brokers and agents.  I have seen cases involving illegal church bonds, for example.

If you bought a pension investment that is not performing, or were sold some other type of worthless security from a life insurance agent, including church bonds or unregistered corporate bonds, please call my office at 317-662-4529.

Of course, we still represent consumers who have sold part of their pensions. Here are some of the companies that are involved in the industry

Voyager Financial Group, LLC (also doing business as Pension4Case, Cash out my Pension, Buy Your Pension)
Veterans Benefit League
Cash Flow Investment Partners
LumpSum Pension Advance
Pension Funding, LLC
Pensions Annuities & Settlements LLC
Pension Income LLC
DFR Pension Funding
Veterans Benefit Leverage
First American Finance Corporation
Investing Forward (Termbrokers LLC)

The Strange Case of The College Network and Oak Rock Financial

I do not actually have any cases right now involving the College Network, but after hearing and reading news stories alleging hundreds of complaints against the Indianapolis-based company, I decided I better learn a little more about them. There are eight pages of complaints at the website lettertobarackobama.com. The Better Business Bureau, at the time I checked, reported 426 complaints about the College Network.  It appears that they may not promise the same things to all the applicants. One thing appears clear, and that is the College Network asserts that they are not a school. This means the loans people take out are not student loans given special treatment by federal law, including being exempt from discharge in bankruptcy without substantial hardship.

If you have a loan originated by the College Network with ANY finance company, you should be aware that any claim or defense that you could raise against the College Network you can raise as a defense against your lender.  In other words, you might have a defense to paying your student loans.

One finance company that has been reported to be used by the College Network, Inc. is Oak Rock Financial, LLC.  Oak Rock's CEO, John Murphy was found guilty of defrauding the bank's investors to the tune of almost $100 million.  He could have received 30 years in prison, but he actually got sentenced to 8 years one month.  Note that when a scam artist defrauds wealthy investors and venture capitalists, that scamster gets prosecutor, but when big banks defraud millions of ordinary Americans, those banksters get off scott free.

Please contact my office by phone or email if you want to talk about it. Or you can find a NACA consumer lawyer in your area at www.naca.net.  I would like to collect a list of all the finance companies used by the College Network and all the debt collection agencies used by those lenders.

Some names that have come up in the scope of my investigation  are:

American Credit Exchange
Westcom Credit Union
Southeast Financial Credit Union
Lifeway Credit Union
Lockhart Morris and Montgomery

On the Difficulty of finding a Consumer Attorney in a Small Town

Since going back into private practice in early 2014, after being at UAW Legal Services Plans for 16 years, I have frequently received calls regarding consumer problems from people who live in small towns in Indiana and elsewhere.  Even in Indiana, some of these consumers are four hours by car from Indiana's consumer attorneys who are almost all located in central Indiana.

To be candid and frank, it can be challenging to represent a consumer who lives far from my office. Even a five minute routine court hearing can mean a full day out of the office.  Needless to say, this makes it difficult to price one's services.   I have worked out some strategies to make it feasible to represent Indiana consumers who live well outside of Marion County.  This works best in cases that are not yet the subject of a court case.  In court cases thought it still may be practical.  In debt defense cases, for example, the defense lawyer is often not only from out of town, but may be from out of state as well.  In those cases, we can usually avoid unnecessary court appearances.

I have had a few cases where I coached a local lawyer to represent a consumer that I couldn't get to.  The bottom line is, even if you are from the far corners of Indiana, or if you are far from an interstate or state highway, please don't hesitate to call my office. I can probably still help you.

We are Investigating Elite Imports - Fresh from news from an FBI raid

We are investigating Elite Imports on 52nd and Keystone in Indianapolis.  The news report that Elite had been on probation with the Bureau of Motor Vehicles for title delivery issues.

For more information, check out the WRTV story.

If you are having a problem with this or any other dealership, please contact us. Don't believe the BIG LIE the finance company tells you.  If the dealer arranged the financing, any claim you can raise against the dealer, you can raise against the finance company. This means that if the dealer lies to you, steals your money, steals your trade in, makes you come back in and sign a new contract, you may have recourse against the finance company too and not just an undercapitalized dealer.  If you are out of Indiana, go to NACA.net and find a good consumer attorney.

Have you been getting harassing calls on your cellphone regarding student loans?

If you are an Indiana resident contact my office if you are receiving harassing phone calls to your cell phone regarding student loans, or even other loans.  It doesn't matter whether these calls are coming from the loan originator or a later collection company.  Call us at 317-662-4529

Fake Payday Loan - Arrest Warrant Scam Resurfaces

I had a caller today report harassing emails claiming she was going to be arrested unless she paid a payday loan she didn't take out.  The calls including threats of jail, garnishment and use of the "n-word".  All of these are illegal debt collection tactics.  The reason these practices go on is that this particular breed of company doesn't care.  They don't intend to be around for law enforcement or law suits to catch up with them. They may be overseas with no United States presence at all.  

Because it is almost impossible to catch these companies and hold them accountable, it is important not to give them information or money.

Below is some information from the Washington Department of Financial Institutions.   http://www.dfi.wa.gov/consumer/alerts/cash-advance-group-payday-loan-debt-collection-scam

Cash Advance Group - Payday Loan Debt Collection ScamShare on facebookShare on twitterShare on emailShare on printMore Sharing Services

Date Posted: 
Friday, July 10, 2015
Updated: July 10, 2015 
Originally Posted: October 31, 2013
Also Doing Business As:

• Cash Advance

• US Cash Advance

• Cash Advance Inc

• and other entities using variations of the name “Cash Advance”

The Washington State Department of Financial Institutions has received reports of what appears to be a payday loan collection scam. Numerous consumers report that they have been contacted by phone and e-mail by entities claiming to collect debt owed to companies with “Cash Advance” in their names. The collection attempts often involve threats of lawsuits, asset seizure, and arrest. It appears that the consumers who were contacted do not actually owe money to Cash Advance.
Two consumers report that they received e-mails claiming that an arrest warrant had been issued because they had not paid Cash Advance Inc. or Cash Advance. One consumer received an e-mail from a man calling himself William C. Jones, who claimed to work at a Federal Trade Commission office. He threatened to disclose the debt to the consumer’s employer, garnish her wages, and file a law suit against her. Another consumer received a similar e-mail from a person calling himself Neal Johnson. A fake U.S. District Court arrest warrant was attached to both of these e-mails.
Several consumers also report receiving phone calls from entities attempting to collect debts owed to Cash Advance, Cash Advance Group, and US Cash Advance. The collection calls came from people who called themselves Brian Wilson, John Murphy, and Jim Spencer. Some calls also came from a person claiming to work for Peterson Law Group. In one case, the caller threatened that he could have an arrest warrant issued if the consumer did not immediately pay him with a credit card. In another case, the caller threatened to seize the consumer’s bank account and serve the consumer with legal papers at his workplace unless he paid the debt. Another consumer was threatened with arrest.
Other consumers report receiving threatening e-mails attempting to collect alleged debts owed to one of Cash Advance Inc.’s companies. The representatives identified themselves as Jason Marroitt and David Jones. The emails also list numerous companies that they claim are affiliated with Cash Advance Inc.
The following contact information is associated with these calls and e-mails:
951-223-6693 
443-403-2041 
202-751-2493 
202-241-0332 
402-318-7075 
206-494-9996 
210-272-9477 
916-350-4501
johnsonlaw5@aol.com 
neal.advocate@aol.com 
federaltradecommissionlawfirm@gmail.com 
ethanmccord@outlook.com 
Watson.cashadv.america@outlook.com 
vharris00120@gmail.com 
americafincen@gmail.com 
robertwilson@legislator.com
Addresses: 12850 W 331 Ste. 60, Alpamont, UT 84201 (address does not appear to exist) 
8901 S Wilton Place, Los Angeles, CA 90047
These entities are not licensed by the Washington State of Department of Financial Institutions as payday lenders or by the Washington State Department of Licensing as collection agencies.
Washington residents are advised that state law provides in RCW 31.45.105(1)(d) and (3) that a small loan made by an unlicensed entity to a person physically located in Washington is uncollectible and unenforceable in Washington State.
Verify Licenses
DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the “Verify a License” feature on DFI’s website at www.dfi.wa.gov.
Report Fraud
If you are suspicious of unlicensed activity by a lender, report directly to your state regulator: find your state regulator.
If you feel you have been the victim of a loan scam please contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357) or online at www.ftc.gov; or contact the Consumer Financial Protection Bureau (855) 411-CFPB or online atwww.consumerfinance.gov. Because the scammers have access to bank account information and social security numbers, victims should consider themselves victims of identity theft and take appropriate precautions. The Federal Trade Commission has information for victims of identity theft available online at www.ftc.gov.
If you feel you have been the victim of a loan scam involving the Internet please contact the Internet Crime Complaint Center online at www.ic3.gov.
If you feel you have been the victim of a loan scam and are concerned about your personal financial information, contact your banking institution, and the three major credit bureaus.

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Hyundai Recalls 570,000 Sonatas and Accents - Could other 4-Cylinder Hyundais be Affected?

In news that was completely overshadowed by Volkswagen 'fessing up about rigging its diesels to pass emissions test but to be far dirtier in real life, Hyundai announced last week that it was recalling 570,000 Sonata and Accent models.  This is somewhat more than the number of US-based cars affected by the Volkswagen fiasco. Moreover, as far as owners' impact is concerned, the problems with the Hyundai's are more expensive or are more dangerous.

Here's the Sonata Recall information

Vehicle Make Model Model Year(s)
HYUNDAI SONATA 2011-2012

Details

Manufacturer: Hyundai Motor America

SUMMARY:
Hyundai Motor America (Hyundai) is recalling certain model year 2011-2012 Sonata vehicles manufactured December 11, 2009, to April 12, 2012 at Hyundai Motor Manufacturing Alabama and equipped with either a 2.0 liter or 2.4 liter Gasoline Direct injection engine. In the affected vehicles, metallic debris may not have been fully removed during manufacturing of the engine crankshaft. If the debris was not completely removed, oil flow may be restricted through the connecting rod bearings, causing connecting rod damage. A worn connecting rod bearing will produce a metallic, cyclic knocking noise from the engine and possible engine failure.

CONSEQUENCE:
Engine failure would result in a vehicle stall, increasing the risk of a crash.

REMEDY:
Hyundai will notify owners, and dealers will inspect the vehicles and replace the engine assembly, as necessary, free of charge. Additionally, Hyundai Motor America will increase the warranty for the engine sub-assembly (short block) to 10 years/120,000 miles for both original and subsequent owners of 2011 and 2012 Sonatas manufactured at Hyundai Motor Manufacturing Alabama equipped with 2.0 liter and 2.4 liter Gasoline Direct injection engines. An interim notification will be mailed by November 2, 2015. A second notification will be mailed when parts are available. Owners may contact Hyundai customer service at 1-855-671-3059 or by visiting www.HyundaiUSA.com/Campaign132. Hyundai's number for this recall is 132.

NOTES:
Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

In other words, Hyundai Sonatas with the most popular engines, the 4-cylinder engines from 2011 and 2012 model years may have a defectively machined crankshaft that may send metal pieces through the oil lines which could cause the engine to throw a rod or otherwise completely bite the dust.

This is not an arbitrary or potential problem. I have clients who suffered this exact problem with their 2011 Sonata, and Hyundai told them they were out of luck because the car had just passed 100,000 miles.

Based on just a couple hour's inquiry, I think that this recall and warranty extension will go past the Sonata and also include Genesis and Veloster models with the Turbo-4 cylinder.  It may be due to shavings but it may also be due to LSPI, low speed pre-ignition which can be a problem with a direct-injeccted engine that is not running perfectly.

Here's a youtube video posted by someone whose 2014 Veloster Turbo blew an engine.

<iframe width="560" height="315" src="https://www.youtube.com/embed/NuDB_tiIjHU" frameborder="0" allowfullscreen></iframe>

Here is the problem with the Accent, the brake lights might not come on when you hit the brakes, also tapping the brakes may not deactivate the cruise control.  I would call this a serious problem.

RECALL Subject : Brake Light Switch may not Function

Report Receipt Date: SEP 08, 2015
NHTSA Campaign Number: 15V566000
Component(s): EXTERIOR LIGHTING
Potential Number of Units Affected: 99,500
All Products Associated with this Recall

Vehicle Make Model Model Year(s)
HYUNDAI ACCENT 2009-2011

Details

Manufacturer: Hyundai Motor America

SUMMARY:
Hyundai Motor America (Hyundai) is recalling certain model year 2009-2011 Hyundai Accent vehicles manufactured March 1, 2009, to February 11, 2011. In the affected vehicles, the brake light switch may malfunction. A malfunctioning brake light switch may cause the brake lights to not illuminate when the brake pedal is depressed or may cause an inability to deactivate the cruise control by depressing the brake pedal. Additionally, a malfunctioning brake light switch may also prevent the shifter from being moved out of the PARK position.

CONSEQUENCE:
Failure to illuminate the brake lights during braking or the inability to disengage the cruise control could increase the risk of a crash.

REMEDY:
Hyundai will notify owners, and dealers will replace the brake switch, free of charge. The recall is expected to begin November 2, 2015. Owners may contact Hyundai's customer service at 1-855-671-3059 or by visiting www.HyundaiUSA.com/Campaign131. Hyundai's number for this recall is 131. This recall is an expansion of 13V-113.

NOTES:
Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.


When you have a serious problem with your vehicle that you suspect might be related to a weakness in the car's design or manufacturing, you should do an online search to see if other owners are reporting the same problem.  Then, you should put your car's make, model, and year in the google box along with the phrase "technical service bulletins" or "TSBs". Also, put in the make, model year of your car and "recalls".  These three searches will tell you first if there is a common problem with the car and whether dealers have been put on alert to look for the problem or given specific instructions on how to handle it.  These technical service bulletins or TSBs can in some cases be similar to a "secret warranty" where the manufacturer will fix a problem that technically isn't covered by the manufacturer's warranty.

If you think the dealer is wasting your time or trying to stall because they don't know what to do about a problem, then you are probably right.  If your gut tells you you should see a lawyer, then you are probably right as well.  In most areas you can find an consumer lawyer experienced in automobile issues by going to the NACA.net website.  Most consumer lawyers will at least talk to you on the phone or by email the first time for free.

AS A SEPARATE ISSUE, IF YOU HAVE HAD A HYUNDAI VEHICLE BOUGHT BACK UNDER A STATE LEMON LAW IN THE PAST 4 YEARS, I WOULD LIKE TO TALK TO YOU.  IF YOU HAVE BOUGHT A HYUNDAI IN THE PAST 4 YEARS THAT EITHER HAS A LEMON LAW BUYBACK TITLE OR SHOULD HAVE HAD A LEMON LAW BUYBACK TITLE, I WOULD LIKE TO TALK WITH YOU.  Please call 317-662-4529.

The Area Code 713 IRS Scam

You may get a phone call from an area code 713 #.  The caller may say that he or she is from the IRS and say that you are being sued, and need to give them a money order for $4,900 to stop the law suit.  This is a complete scam. It is important that you don't give them any money.

Volkswagen AdBlue Heater Class Action?

Separate from the issue relating to the falsified emissions test results that are affecting up to 11 million Volkswagen vehicles is a problem that has been reported by many Volkswagen Passat TDI owners.  The key to the emission-system on late model Volkswagen turbodiesel engines is liquid emissions-treatment system that uses a separate tank of urea-based diesel emissions fluid (DEF) which Volkswagen calls Adblue.  The Adblue solution is in a separate tank, and that fluid tank is heated for use during cold weather. Therein lies the problem, There have been reports of the heater element failing outside of the standard 36 month warranty but well within the 100,000 mile emissions warranty.  Volkswagen is refusing to repair these vehicles under the emissions warranty. Owners are being quoted from $900 to $3,000 plus for the repair of what we believe should be covered by the emissions warranty.  We have our first client on this issue and are evaluating the matter for potential class action treatment.  If you have a Volkswagen with premature Adblue heater failure, please contact our office.  If we pursue this as a group case, it will likely be with the participation of other consumer attorneys from different parts of the country.

On the Volkswagen Diesel Emissions Scam

This week, Volkswagen admitted that up to 11 million of its TDi diesel-equipped vehicles had been intentionally rigged to pass EPA inspection but emit far more noxious exhaust in real world driving.  Owners of both affected and not-affected Volkswagen are wondering where this puts them.  If you are an Indiana resident with a 2009 or later diesel-equipped Volkswagen, Porsche, or Audi vehicle, and you feel like the manufacturer is giving you the run-around, feel free to contact me. I think it is likely that over the long term, the manufacturer will offer some cash compensation and a service fix, but that will take some time. If you feel like you need to sell your vehicle for personal reasons in the short term, but you feel the value has tanked due to this issue, you may need some legal assistance.  It might be possible to force a manufacturer buy-back of your vehicle.  This is still a matter of debate among those of us who are consumer protection attorneys.

What's the Story with LSF9 Master Participation Trust?

I have a foreclosure client who has a loan that was bought by LSF9 Master Participation Trust.  This is a weird case in a lot of ways, but when I Looked for information on LSF9 Master Participation Trust, I found from a Google search that it seems that a lot of problem loans from different servicers got swallowed up in this trust (which is serviced by Caliber Home Loans, Inc. That's not necessarily bad, as long as whoever buys an interest in the trust knows the true status of the loans and as long as the new servicer competently handles the loans.

Here's a blurb that I found on the web:

Lone Star Funds Lone Star Funds is a private equity firm that “seeks investment opportunities in developed markets that have suffered an economic and/or banking crisis.”24 The firm submitted winning bids for every pool offered in the June 2014 DASP auction, with a weighted average bid of 77.6 percent of the properties’ value.25 The 2014 fund that invested in the DASP loans, Lone Star Fund IX, has an investment period of 40 months.26 In July, Lone Star bought $500 million in nonperforming residential mortgages from JPMorgan Chase & Co.27 Lone Star Funds owns Caliber Home Loans, a full-service mortgage company and special servicer28 led by Joe Anderson, former Senior Managing Director at Countrywide Financial Corporation, the poster-child of the predatory, discriminatory29 subprime mortgage boom and overheated, destructive mortgage-backed securities markets that fueled the current housing crisis.30 Standard and Poor’s Ratings Services (S&P) has ranked Caliber Homes as Above Average as a US residential special and subprime mortgage loan servicer.31

source: http://homesforall.org/wp-content/uploads/2014/09/HUD.DASP_.RTC_.v15.pdf

So LSF9 Master Participation Trust is a pool of distressed mortgages put together by Lone Star funds.  The mover and shaker behind Lone Star Funds is a billionaire named John Grayken.  LSF9 ws the high bidder in an auction of  $3.8 billion in loans that the FHA had insured.  According to Bloomberg News:

June 20 (Bloomberg) -- Lone Star Funds, the private-equity firm founded by billionaire John Grayken, submitted winning bids for $3.9 billion of soured home loans sold this month by the Department of Housing and Urban Development.
It was the first time that a single bidder won each of the pools of loans offered in such a sale of debt previously insured by the Federal Housing Administration, HUD said today in an e-mailed statement. Dallas-based Lone Star’s bids on the 16 pools auctioned on June 11 averaged 77.6 percent of the estimated current prices of the homes and 65.8 percent of the unpaid loan balances, HUD said.

Source: http://www.bloomberg.com/news/articles/2014-06-20/lone-star-wins-3-8-billion-of-bad-fha-loans-at-auction

What this means is that if LSF9 bought your mortgage, they likely only paid $65.8% of the loan balance which was 77.6% of the value of the house.   (You see, these loans were upside down, but they aren't based on what Loan Star Funds paid.  In other words, Loan Star Funds and its subsidiary has room to cut you a deal on a modification and still make money.  Will they?  That's going to be up to them.   (This also means that the FHA may has paid the original owner a big chunk of money that came out of your mortgage insurance.  Assuming the new owner doesn't discount the principal of the loan, the benefits of this write-down go to the rich investors behind the Lone Star Funds.  Not only that but if you work out a deal to get the loan caught up at the previous rate and terms, Lone Star gets a windfall. Let's say you had a loan at 4% APR, if Lone Star only paid 65.8% of the principal, that's an effective rate of over 6%. If you had an 8% subprime loan, that's an internal rate of return of over 12% for Lone Star.  Elizabeth Warren is right, the game is rigged.)

A large portion of the loans in LSF9 appear to be from Chase, bought in a $500 million bulk deal.  

My client's loan was a Citimortgage loan.  Based upon the information that I've gathered, it appears Citimortgage  sold its interest to LSF9 Master Participation Trust while the loan was subject to a foreclosure lawsuit originated by Citimortgage. Instead of discontinuing the lawsuit, or substitutiong  LSF9 Master Trust as a plaintiff,  Citimortgage has continued the lawsuit under the representation that it is the owner of the loan without notifying the court that the ownership has changed.  

If you are in the midst of a foreclosure proceeding and your servicer gets changed to Caliber Home Loans, it may mean that your loan has been sold to a Lone Star affiliated trust.  If that happens your foreclosure case should not go through under the previously filed paperwork.  At the very least the change in ownership should be disclosed, and it may trigger another opportunity to modify your loan.  It also might be an unfair debt collection practice by the firm that is filing the foreclosure suit.  If you have this happen to you, contact me or find a local NACA consumer attorney near you at www.NACA.net.  

UPDATE 3/14/2017

Since I wrote this blog post a year and a half ago, it has been by far my most popular post, with over 14,000 hits. I have also gotten emails from lots of frustrated people trying to deal with LSF-9.  Most of these have either been people who are either trying to buy LSF9 properties or who are facing foreclosure on an LSF-9 mortgage.  I have this to say about each category:

IF YOU ARE FACING FORECLOSURE ON A MORTGAGE OWNED BY LSF9 Master Participation Trust, or maybe LSF8 or LSF10 or whatever, get advice from an experienced consumer lawyer IN YOUR AREA.  To find one in your area use the National Association of Consumer Advocates' Find an Attorney page.  I can't represent you if you are not a resident of Indiana.

 IF YOU ARE TRYING TO BUY A PROPERTY OWNED BY LSF-9 AND CAN'T FIND ANYBODY TO CONTACT, good luck, I can't help you.  You can write to Caliber. You can write to the lawyer handling the foreclosure case.   You can write to Lone Star Funds, the parent company, at the address below which I took from their website.

• 
  

• Lone Star Global Acquisitions, Ltd.

  • Lone Star North America Acquisitions, LLC
  2711 North Haskell AvenueSuite 1700 (and Suite 2150)Dallas, Texas 75204USA
  214-754-8300

Looking for a Consumer In the Tri-State Area? - Here are Three Steves

If you are looking for a consumer attorney in Ohio, Kentucky or Indiana, you can have not just any consumer attoney, you can have a consumer attorney named Steve.  Really can you do any better than that?  I had a great lunch with Steve Felson (Cincinnati area) and Steve Shane (Northern Kentucky).  Here's a picture:  (Left to right, Felson, Hofer, Shane)

CFPB LEVIES MILLIONS OF DOLLARS IN FINES ON #1 AND #2 DEBT BUYERS

In what might be a foretaste of things to come, the Consumer Financial Protection Bureau  (CFPB) once again reminded bad guys that there is a new sheriff in town by levying fines totaling mtens of millions of dollars against the #1 and #2 bad debt buying debt collectors.  The number one collector, Encore Capital Group (which sues most often in my neck of the woods under Midland Credit Management) and number two collector, Portfolio Recovery Associates were found guilty of a laundry-list of practices.  So I can get back to real work, I"m reprinting the entire press release below.
The tragedy is that even though the CFPB has found that the documentation that Midland provides in court is unreliable, far too often courts take the documents at face value. The net result is poor people are driven even farther into poverty.

It is likely that the CFPB will bring enforcement actions on other big collectors soon.  Thanks to the Dodd-Frank Act, the CFPB has the authority not just to investigate complaints, but to also audit and inspect the records of debt-buyers.  I had heard rumors floating around that the CFPB had installed full-time monitors in the offices of many of  the top debt collection firms.  That's the kind of government work that I don't mind paying taxes for.

The CFPB Press Release is reprinted below. The original can be found at http://www.consumerfinance.gov/newsroom/cfpb-takes-action-against-the-two-largest-debt-buyers-for-using-deceptive-tactics-to-collect-bad-debts/?utm_source=http%3A%2F%2Fwww.consumerfinance.gov&utm_medium=facebook
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Sep 9 2015

CFPB Takes Action Against the Two Largest Debt Buyers for Using Deceptive Tactics to Collect Bad Debts

Encore and Portfolio Recovery Associates Must Refund Millions of Dollars and Overhaul Debt Collection and Litigation Practices
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest debt buyers and collectors for using deceptive tactics to collect bad debts. The Bureau found that Encore Capital Group and Portfolio Recovery Associates bought debts that were potentially inaccurate, lacking documentation, or unenforceable. Without verifying the debt, the companies collected payments by pressuring consumers with false statements and churning out lawsuits using robo-signed court documents. The CFPB has ordered the companies to overhaul their debt collection and litigation practices and to stop reselling debts to third parties. Encore must pay up to $42 million in consumer refunds and a $10 million penalty, and stop collection on over $125 million worth of debts. Portfolio Recovery Associates must pay $19 million in consumer refunds and an $8 million penalty, and stop collecting on over $3 million worth of debts.
“Encore and Portfolio Recovery Associates threatened and deceived consumers to collect on debts they should have known were inaccurate or had other problems,” said CFPB Director Richard Cordray. “Now, the two biggest debt buyers in the market must refund millions and overhaul their practices. We will continue to take action to protect consumers from illegal and obnoxious debt collection practices.”
Encore Capital Group, Inc. is headquartered in San Diego, Calif. Its subsidiaries also named in today’s action are Midland Funding LLC, Midland Credit Management, and Asset Acceptance Capital Corp. Together, they form the nation’s largest debt buyer and collector. Portfolio Recovery Associates is the nation’s second largest debt buyer and collector. Portfolio Recovery Associates is a Delaware for-profit corporation headquartered in Norfolk, Va. and is a wholly-owned subsidiary of PRA Group, Inc.
As debt buyers, Encore and Portfolio Recovery Associates purchase delinquent or charged-off accounts for a fraction of the value of the debt. Although they pay only pennies on the dollar for the debt, they may attempt to collect the full amount claimed by the original lender. Together, these two companies have purchased the rights to collect over $200 billion in defaulted consumer debts on credit cards, phone bills, and other accounts.
The CFPB found that Encore and Portfolio Recovery Associates attempted to collect debts that they knew, or should have known, were inaccurate or could not legally be enforced based on contractual disclaimers, past practices of debt sellers, or consumer disputes. The companies also filed lawsuits against consumers without having the intent to prove many of the debts, winning the vast majority of the lawsuits by default when consumers failed to defend themselves. These practices violated the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Collecting Bad Debts

Encore and Portfolio Recovery Associates illegally attempted to collect debt that they knew, or should have known, may have been inaccurate or unenforceable. Specifically, the CFPB found that the companies:

• Attempted to collect on unsubstantiated or inaccurate debt: Encore and Portfolio Recovery Associates stated incorrect balances, interest rates, and payment due dates in attempting to collect debts from consumers. The companies purchased large portfolios of consumer debt with balances that sellers claimed were “approximate” or that otherwise did not reflect the correct amount owed by the consumer. Sellers also warned the companies that some of the debts they were buying may not have the most recent consumer payments deducted from the balance. Some sellers also represented that documents were not available for some of the accounts. The companies continued purchasing from these sellers and then collecting on that debt without first conducting any investigation to determine whether the debts were accurate and enforceable.

Illegal Litigation Practices

Encore and Portfolio Recovery Associates collected debts through lawsuits and threats of legal action in unlawful ways. Specifically, the companies:

• Misrepresented their intention to prove debts they sued consumers over: Encore and Portfolio Recovery Associates regularly attempted to collect on debts by suing consumers in state courts across the country. In numerous cases, the companies had no intention of proving these debts. They placed tens of thousands of debts with law firms staffed by only a handful of attorneys and in many cases made no effort to obtain the documents to back up their claims. Instead, the companies relied on consumers not filing a defense and winning the lawsuits by default.

• Relied on misleading, robo-signed court filings to churn out lawsuits: Encore and Portfolio Recovery Associates filed affidavits that contained misleading statements in debt collection lawsuits across the country. For example, they both used affidavits that misrepresented that the affiants had reviewed original account-level documentation confirming the consumers’ debts when they had not. The companies also submitted affidavits with documents attached that they claimed were the consumers’ specific account contracts or records when they weren’t. These shortcuts allowed the companies to churn through lawsuits without doing the research and due diligence required to obtain a legitimate judgment.

• Sued or threatened to sue consumers past the statute of limitations: From at least July 21, 2011 to March 31, 2013, Encore sent thousands of letters offering a time-limited opportunity to “settle” without revealing that the debt was too old for litigation. From January 2009 to March 2012, Portfolio Recovery Associates sent similar letters to consumers. Both of the companies also filed cases past the applicable statute of limitations.

• Pressured consumers to make payments using misrepresentations: Encore and Portfolio Recovery Associates made other inaccurate statements to consumers to press them to make additional payments. Specifically:
  
  • Encore falsely told consumers the burden of proof was on them to disprove the debt: In sworn affidavits, Encore falsely told consumers and courts that the debt should be assumed to be valid because the consumer had not disputed it within a certain time period. In fact, Encore had the burden to first prove the debt was owed and accurate before the consumer had to challenge it.
  • Portfolio Recovery Associates falsely claimed an attorney had reviewed the file and a lawsuit was imminent: The company’s collectors, who identified themselves as from the “Litigation Department,” misrepresented to consumers that litigation against them was planned, imminent, or even underway. In reality, in many cases, an attorney had not reviewed the account and the company had not decided whether to file suit.

Other Illegal Collection Practices

• Encore disregarded or failed to adequately investigate consumers’ disputes: If a consumer disputed their debt more than 45 days after Encore started collecting, Encore would require the consumer to produce specific documents or other “proof” to support their dispute or it would not conduct the legally-required investigation of the issues raised by the consumer.

• Encore farmed out disputed debts to law firms without forwarding required information: In numerous instances, Encore assigned disputed debt to law firms and third-party debt collectors without informing them that the debt was disputed. As a result, law firms evaluating Encore accounts for litigation did not know which accounts were disputed.

• Encore made harassing collection calls to consumers: Encore called consumers repeatedly or continuously with the intent to annoy, abuse, or harass them into paying. Encore’s subsidiary, Asset Acceptance, made thousands of calls to consumers before 8 a.m. or after 9 p.m. and called hundreds of consumers more than 20 times in a two-day period.

• Portfolio Recovery Associates misled consumers into consenting to receive auto-dialed cell phone calls: For approximately a year, and ending in August 2013, Portfolio Recovery Associates told consumers that they could only prevent collection calls to their cell phones before 9 a.m. if they consented to receive calls on their cell phones from a dialer. The company penalized representatives who failed to adhere to this policy.

Enforcement Action

Pursuant to the Dodd-Frank Act, the CFPB has the authority to take action against institutions or individuals engaging in unfair, deceptive, or abusive acts or practices or that otherwise violate federal consumer financial laws. Under the terms of the CFPB orders released today, Encore and Portfolio Recovery Associates are required to:

• Stop reselling debts: The companies are prohibited from reselling the debts they buy to other debt collectors. This will protect consumers from the potential harm that results when debt collectors continue to sell and resell debts that may be inaccurate or lack the business records and information needed to collect them.

• Refund millions of dollars to consumers:
  
  • Encore must pay up to $42 million in refunds: The company must provide refunds where it collected payments by misrepresenting that it could sue on a time-barred debt or by misrepresenting in court that a debt was assumed valid because the consumer did not previously dispute it.
  • Portfolio Recovery Associates must pay $19 million in refunds: The company must provide refunds where it collected payments by misrepresenting that an attorney had reviewed a debt or that collectors were calling on behalf of attorneys, and where it collected payments on judgments that it should not have obtained because they were barred by the statute of limitations from suing to collect the debt.

• Cease collections on millions of dollars of debt:
  
  • Encore must stop collecting on $125 million of debt: The company must release or move to vacate all judgments and dismiss all lawsuits where it misrepresented that a debt was assumed valid, and stop any attempts to enforce or collect on these judgments. The face value of this debt is estimated at over $125 million.
  • Portfolio Recovery Associates must stop collecting on $3 million of debt: The company must release or move to vacate all judgments and dismiss all pending lawsuits it filed past the statute of limitations and stop any attempts to enforce or collect on those judgments, estimated to have a face value of $3.4 million.

• Stop collecting debts they can’t verify: Encore and Portfolio Recovery Associates can’t collect unsubstantiated debt. Under the order, they must review original account-level documents verifying a debt before collecting on it when, for example, a consumer has disputed it, the seller didn’t promise it was accurate or valid, or the debt was part of a portfolio they knew included unsupportable or inaccurate information.

• Ensure accuracy when filing lawsuits: The companies cannot file lawsuits to enforce debts unless they have specific documents and information showing the debt is accurate and enforceable.

• Provide consumers information before filing suit: Encore and Portfolio Recovery Associates must provide consumers with information about a debt, such as the name of the creditor and charge-off balance, and offer to provide consumers with original documents relating to the account before they are allowed to file a lawsuit or threaten to file suit to collect the debt.

• Use accurate affidavits: The companies cannot use affidavits to collect debts unless the statements contained in the affidavits specifically and accurately describe the signer’s knowledge of the facts and the documents attached.

• Reform collection of older debts: Encore and Portfolio Recovery Associates are prohibited from suing or threatening to sue to collect on time-barred debt. They also cannot collect on such debt unless they disclose to consumers that they can’t sue to collect it.

• Pay civil money penalties:
  
  • Encore must pay a penalty of $10 million to the CFPB’s Civil Penalty Fund.
    
  • Portfolio Recovery Associates must pay a penalty of $8 million to the CFPB’s Civil Penalty Fund.

The Encore consent order can be found at: http://files.consumerfinance.gov/f/201509_cfpb_consent-order-encore-capital-group.pdf
The Portfolio Recovery Associates consent order can be found at: http://files.consumerfinance.gov/f/201509_cfpb_consent-order-portfolio-recovery-associates-llc.pdf

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

Has Credit One Bank Accessed your Credit Report?

There is a section on your credit report that discloses who has received a copy of your credit record. One section includes companies with whom you have applied for credit.  These inquiries show up on the general report, and they become part of your credit score.  They aren't weighted greatly in the score, but they do count.

There is another section of inquiries which don't show up when potential creditors access the report but they are included on your consumer disclosure. These inquiries include current creditors who are reviewing the record for purposes of servicing or collecting a current account or others with a permissible purpose.  Some companies stretch the meaning of permissible purpose for the hilt.  

I reviewed one report of a client who was sued by LVNV Funding, LLC c/o Resurgent Capital Services LP.  

This report included an access by Resurgent Capital Services - not surprising under the circumstances, but the report also included accesses by 

Credit One Bank NA

Assent, Inc.

Credit One Bank appears to be affiliated with the Sherman/LVNV group of bottom feeder collectors.  Assent, Inc. might be, but I haven't been able to determine one way or the other. As far as I can determine these companies have a different role in the Tholian web of Sherman companies than just buying debts for pennies on the dollar and suing poor people. These companies are designed to create new debt, perhaps including and renewing old debt.  A company can't just troll your credit report to find people to hawk new credit to.  A potential creditor can only receive limited information about you in the context of a prescreening program by the credit reporting agency in connection with FIRM OFFERS of credit.  We have not been able to verify that these companies have been accessing reports only in connection with firm offers of credit.  

If you see these companies or other companies receiving access to your credit report, please contact me at 317-662-4529 or contact a NACA consumer attorney in your area by going to www.naca.net.  

Bad Company of the Day - PNC Merchant Services

Ordinarily I write about bad companies that victimize my clients or others.  In this case I'm writing about a company that tried to victimize me as a small business owner.

I do my business banking at PNC Bank.  I chose that bank because their involvement in the financial shenanigans that caused the Great Recession was minor.  As a bank, they've generally given me good service.

When I set up my bank account, they set me up with PNC Merchant Services for credit card processing, PNC Merchant Services has been less than steller, and one practice of theirs shows outright contempt for the customer.

In the Fall of 2014, I found that Amazon Marketplace had better terms for credit card processing than PNC Merchant Services.  I called to stop my credit card processing, and PNC Merchant Services stopped my monthly fee - that is, they did until spring of 2015.  In spring of 2015, they started adding a fee of $24.99 per month for something called Transarmor Solution.  I did not order Transarmor Solution. When I called to inquire, PNC Merchant Solutions said I was sent a letter about the new charge. This letter was apparently sent to my old business address and not where I received my statements or where I changed my address with PNC Bank.  Although this looked to me like your typical negative option scam that I see on consumer credit cards. In this case, PNC Merchant Services intimated to me that it was not an optional charge, and that if I want to close my account with them, I have to pay them a $450 early termination charge, even though they did not provide me with my credit card terminal and I was no longer processing credit cards through them.

If you are a small business person, doing business in general with PNC Bank is fine. The others are probably worse, but I recommend that you NOT do business with PNC Merchant Services.  I filed a complaint with the CFPB, and more complaints may follow.