Success Getting Old Judgment Set Aside Against Palisades Acquisition XVI

Of all of my blog posts during 2019, the post about Chrysler Pacificas stalling was pretty popular. So was the one about problems with Lexington Law.  Even More popular was the post about Dodge Enterprises and Hiday and Ricke. The most popular post was my post about the problems with Palisade Acquisition XVI.  People Searched and clicked on this post 171 times.  (Granted 2 or three were probably me.)  In a world where some web pages get hit 1 billion times, 171 isn't many, but I hope that of those people at least a handful were wisend, called a lawyer and got their judgment set aside. 

Attorney Keith Hagan and I handled exactly one of these cases this year and it went exactly like I thought it would.  We were able to get the old judgment set aside for lack of service of process and we got the attorney from Levy and Associates kicked off the case (appearance stricken) because the attorney misstated her client as Great Seneca Financial Corp., a company that didn't hire her firm because it no longer existed.   Thee judge also agreed with our contention that an affidavit of assignment isn't the same as an assignment, and there was no assignment filed with the court. 

If you are interested in looking at the docket of the case, it is Great Seneca Financial Corporation vs. Kaiser, 71C01-0408-CC-000763,  click here. 

More on the Ghost of Great Seneca in Florida

Earlier this year I wrote about Collection activities by a company called Dodge Enterprises in Florida on old debts relating to dead companies.  That was one of my most popular posts from the last year with 104 hits. (Hey, this isn't the New York Times.) I did not get corresponding calls relating to this issue. If you are subject to collections by Dodge Enterprises, I urge you to call me at 317-662-4529. 

By the way, I am interested in collection actions in the names of any of these dead companies anywhere in the United States. Dodge Enterprises does not have to be involved.

A copy of the original post is below:

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It has come to our attention that a company named Dodge Enterprises, Inc., typically represented by the law firm of Hiday and Ricke, PA, has been collecting on judgments originally awarded to Great Seneca Financial Corp.  Some people may be facing wage garnishments or asset attachments arising out of these old cases. Typically these cases were brought between 2003 and 2007.

As far as I can tell Dodge Enterprises has only been active in Florida.

I have written multiple times on the topic of Great Seneca, but basically, Great Seneca Financial Corp. is a dead company and has been since 2008.  It is one of a group of dead companies listed below:

Great Seneca Financial Corporation
Platinum Financial Services Corporation
Monarch Capital Corporation
Centurion Capital Corporation
Sage Financial Corporation
Hawker Financial Corporation
 Colonial Credit Corporation

If Dodge Enterprises, or any other entity for that matter, contacts relating to judgments originating with one of the companies above, it is very important that you make whoever is trying to collect from you provide proof of assignment of the judgment, and that proof should go back to the original judgment-holder and be account specific.  If they can't provide that level of proof, you might have defenses to paying on the judgments, and if you don't wait too long, you may actually be able to get some money back that you've already paid.

Feel free to call us at 317-662-4529 if you have been garnished or are facing collection by Dodge Enterprises arising from an old debt or judgment.

Upstate Law Group's Participation in Pension Assignment Operation Exposed by Newspaper

The Charleston (South Carolina) Review and Courier has posted an investigative piece describing the relationship of a South Carolina Law Firm, the Upstate Law Group, in a pension assignment operation.  The article is available online here.

The names of the companies selling the pension assignments changed over the years, but the participation of Upstate Law Group remained constant.  Why this case has not been referred to the United States attorney for criminal RICO action is beyond me.

Here's the beginning part of the article.  To read the whole thing, you will have to go to the Review and Courier site:

For nearly seven years, a small South Carolina law firm helped operate a nationwide scheme that preyed on desperate military veterans, misled investors and netted millions of dollars in allegedly illegal profits.
The Upstate Law Group, with its office in Pickens County, worked with a network of salesmen to lure in cash-strapped veterans and convince them to sign over their monthly pensions and disability payments.
The businesses then persuaded retirees to invest in the federal benefit payments, promising up to an 8 percent return on their money.

The veterans received a lump-sum payout for handing over several years of future income to the investors. The upfront cash came at a steep cost.
The problem is the entire arrangement is illegal, according to state and federal authorities. Federal law prohibits veterans from assigning their pension or disability payments to another person.
That didn’t stop Candy Kern-Fuller, owner of the Upstate Law Group. Since 2012, she helped her associates sell the military benefit contracts across the country.
The name at the top of the paperwork changed over the years: Voyager Financial Group, SoBell Corp., BAIC Inc., Performance Arbitrage Company and Life Funding Options.
But the system continued.
Using websites, the string of companies persuaded veterans from states as far flung as Florida, Idaho, Texas, Alaska and Michigan to sign over their benefits. And they peddled those supposedly “secured” payments to retirees in places like Nevada, New York, Arizona, Tennessee and California.
The scope of the operation is staggering. Records obtained by state regulators show the companies lured in hundreds of veterans and pocketed millions of dollars in fees, which they siphoned off the top of each deal.
The Upstate Law Group effectively served as the banker, legal counsel and debt collector for the operation — offering an air of legitimacy to the scheme.

About 5 years ago, I sued Upstate Law Group on behalf of a client who got involved with a Voyager Financial Group pension. I wrote about it at the time, and since then I have helped a number of people who were victimized by pension assignments without filing litigation.  In the early suit, Upstate Law Group's defense boiled down to an argument that their involvement in collecting the pension assignment was an isolated incident.  I didn't think that was true at the time, and it is clearly not true now.  We were able to get that case resolved to my client's satisfaction without digging into the details.

What I didn't know until I read this article today was that Upstate Law Group actually sued a number of the pensioners in Greenville County, South Carolina. In my opinion, this is a violation of the venue provisions of the Fair Debt Collection Practices Act.  The problem is, that when people stop paying on these obligations without a lawyer, they can be targeted, and they may not be able to find a South Carolina lawyer to get the case dismissed.

I urge anyone who is ceasing payments on a pension assignment contract to consult with a lawyer and have the lawyer write the letter stating that you are ceasing payments as a matter of right.  If you have a lawyer, your lawyer should know what to do if you are sued in the wrong forum.

More on Hometitlelock

I've gotten a couple calls concerning Hometitlelock since I wrote this blog post.  These people didn't read my post very carefully, because they thought I was Hometitlelock.  Not only am I not affiliated with them, I feel like I would be casting shame upon my family if I were.

You might be a victim of home title fraud, and you might be struck by lightning.  I suspect the odds of being struck by lightning are higher.  The due diligence procedures of banks and the requirements of notarization suggest that it is extraordinarily unlikely for you to be the victim of home title theft. 

Congratulations to Ron Burdge on $500,000 RV verdict

My friend, RV and Lemon Law lawyer extraordinaire, Ron Burdge, won a $500,000 jury verdict against Winnebago in July 2019.  I am not taking RV cases now, and a big reason is that these cases take years to resolve and can involve commitment of hundreds of thousands of dollars into the litigation. That money either has to come from the client, the attorney or both. 

This was a case that involved a defective slide-out that was subject to 9 repair attempts.  What strikes me is that the manufacturer decided to take this case to trial rather than admitting that its product was defective.

Unfortunately, getting a verdict like this is the exception rather than the rule. The problem that the owners of defective RVs face are very well explained by v-blogger Steve Lehto in the video linked below. 

Business Plaintiffs received Big Fraud Verdict Against Lexington Law.

A couple of businesses that said they were spammed by dispute letters purporting to be from consumers but really from Lexington Law received a jury verdict on a claim of fraud according to this article at InsideArm.com.

This is a good time to remind people that a credit repair agency can't do anything you can't do for yourself.  Credit bureaus and creditors have to fully process legitimate dispute letters, but they don't have to give the same weight to mass generated letters not backed by a good faith dispute.  If you want your dispute considered, you should write the letter yourself and explain why you dispute the item. 

I don't like these companies because the spam disputes cause companies to disregard good faith dispute letters, and that makes it harder for consumers with real disputes to get them addressed.

200,000 2017-2019 Chrysler Pacificas Recalled for Stalling Issues

200,000 Chrysler Pacifica owners should be receiving recall notices about now for a recall of 200,000 Pacificas equipped with automatic stop/start systems.  The recall is allegedly to fix a wiring issue that can cause stalling. Owners of Pacifica will be excused if they don't believe this will fix the stalling issues they have been experiencing.

Perhaps Chrysler is confident they got it right now, because recently they announced that for 2020 they will be selling a decontented version of the Pacifica which will be badged as the Chrysler Voyager.  (Until the Plymouth brand was discontinued, the Plymouth version of the Mopar van was called the "Plymouth Voyager".)  Two and a half years after the Chrysler Pacifica was introduced the Pacifica continues to be outsold by the decade-old Dodge Grand Caravan.

Car and Driver's Long term 2018 Chrysler Pacifica Hybrid Many Warranty Repairs

I find the most interesting car magazine long-term tests are the ones where the vehicles experience major problems.  I was majorly bummed out to read Car and Driver's 40,000 mile summary of their experience with the Pacifica Hybrid minivan. I was seriously considering getting one of these as my next vehicle. Honestly, based on this report and some other sources, I think I'm going to skip this generation and see what happens the next time around.

Quoting the article about problems with this Pacifica:

While our Pacifica hybrid completed the final 10,000 miles without any major expenses, it wasn't completely drama-free. We had to replace both front anti-roll-bar end links under warranty to fix a persistent rattle from the front end. The dealership also had to replace the whole center console, due to a seized cupholder bin on the lower back side that was permanently stuck open. Luckily, this was covered under warranty, or it would've cost us $1590. These recent issues were preceded by regular logbook entries over the first 30,000 miles about disconcerting engine noises (something the dealership said was normal) and an unsettling incident where the hybrid's 16.0-kWh battery pack had to be replaced. Similarly, we experienced two instances where the battery coolant was low, but the dealer was unable to diagnose the cause either time. All of these problems were covered under warranty, which is great, but it certainly made editors think twice about taking what is otherwise a great road-trip car on road trips, not to mention gave us doubts about the minivan's long-term reliability.

Chase is Reinstating Forced Arbitration on Credit Cards - How to Opt Out

Chase Bank is in the process of reinstating forced arbitration upon its most of its credit card holders.  Chase had abandoned forced arbitration for a while in a settlement with the Obama administration over unfair practices in 2009.  Thanks to an almost complete takeover of the CFPB by lender interests under the Trump administration, Chase is emboldened to reinstate mandatory arbitration even though a comprehensive investigation by the pre-Trump CFPB found that it is unfair to consumers.

Chase is claiming that the arbitration is optional by giving consumers the ability to opt out.  The opt-out process is a bit of a pain in the ass but not crazy-hard.  The cardholder must  mail chase a signed, written opt-out notice. That notice must be received by Chase by the date set in the Chase notice to the cardholder. In the Yahoo post above, the date is given as August 9, 2019. In the notices my family received, it was August 23, 2019.

 I am printing below a version of the opt-out letter that we sent.  There is not phone, email or web opt out procedure.  Note, that there is some chance the opt-out address that you rae given might be different, but if it is the same, you can just cut and paste this notice, add your name and card number, and mail it in.

-------

Cardholder’s Name and address

Chase

P.0 Box 15298

Wilmington DE 19850-5298

Notice of Rejection of Arbitration Provision

Account Number

I hereby notify you that I am opting out of the arbitration provision.

Cardholder Signature

------

You don't have to mail it certified mail, but you should have some proof you mailed it.  For example, give it to somebody else to mail, and have them make a note in their calendar that they mailed it.  That will raise a presumption of proof of delivery.

Finally, I want to give kudos to AARP.  They negotiated terms with Chase that removes the mandatory arbitration. If you have a Chase affilliate card with any other entity (especially universities and trade associations) you should write to that entity and advise them that if AARP can negotiate the arbtration term, they should as well.

https://finance.yahoo.com/news/chase-forced-arbitration-credit-cards-sapphire-192909115.html

Auto Zone accused of 5 Million hazardous waste violations in in California alone - oh, and Data Privacy Breaches Too

Every time I go to an auto parts store - any auto parts store, there's always some bozo pouring nasty stuff into his car, and tossing the container out in the parking lot.  Sometimes there are people with oil leaks, putting in oil, and half of it goes straight onto the pavement.  Therefore, it was not a surprise, when the state of California accused Auto Zone of up to 5 million hazardous waste violations, and it didn't surprise me when Auto Zone agreed to pay $11 million in a consent decree.   From the TTAC.com article above:

From the California Attorney General’s Office:

District Attorneys’ offices throughout California conducted 56 inspections of dumpster bins at 49 separate AutoZone facilities. These investigations found numerous instances of unlawful disposal of hazardous waste including batteries, aerosol cans, electronic devices, and hundreds of discarded bottles and other receptacles containing automotive fluids and other regulated hazardous waste. These investigative efforts revealed that AutoZone allowed its customers to deposit hazardous automotive fluids and other waste items into regular trash containers in AutoZone stores’ parking lots throughout California. AutoZone facilities in 45 counties in California were found by the prosecuting offices to have committed these environmental violations. It is estimated that AutoZone illegally disposed of over five million hazardous waste items in California.
AutoZone also violated laws protecting vulnerable confidential consumer information by unlawfully disposing of customer records without having rendered personal information unreadable.

 The company is getting off easy.

The thing is, Auto Zone isn't necessarily better or worse in this respect than any other auto parts store all over the country.  The whole industry deserves more scrutiny. General retailers selling automotive and household chemicals need more scrutiny as well. I personally believe that there is a law saying every company that sells motor oil must accept used motor-oil for recycling in the same quantity they sell.  Maybe the same should go for other chemicals as well.

How about that? I didn't even pay them anything

I was rated one of the 3 Best Consumer Protection Lawyers in Indianapolis by threebestrated.com.  Congratulations to my friends,  Syed Ali Saeed and Ryan Frasher, who share the top three with me.  All three of us are members of the National Association of Consumer Advocates (NACA).  We have attended conferences together, presented at conferences together, done pro-bono togetherThough to a certain extent we are competitors, as a practical matter, we are more colleagues. We have known each other for years, and spread knowledge for the benefit of all.  I am honored by being included in a list with Ali and Ryan.  

https://threebestrated.com/consumer-protection-lawyers-in-indianapolis-in

Historically, I haven't put a lot of credence in ratings like this.  Some "best lawyers" type publications you basically buy your way in.  In don't know anything about the people that publish this list.  I didn't pay them anything.  Nevertheles, I got a kick out of seeing this.  

Defenders: the Real "Hole in the Wall Gang?"

From WBBM-Chicago

If you get scammed by a home contractor, including security contractor, you should make a complaint with your state attorney general and BBB immediately.  You should also do a Google search to see if there is a pattern and practice.

Facing Jail or Prison time? Get a power of attorney

I had another client who plead guilty to a crime unrelated to what I was representing him for.  He had to serve some prison time.  Unfortunately, before he went to prison, he did not execute a power of attorney to let somebody else handle the civil case in which I was representing him.  The difficult communications with the imprisoned client caused delays and added expenses in the case. Moral to the story - get a power of attorney. 

Facing a Serious Illness? - Get a Power of Attorney

I had clients, a husband and wife, whom I represented in a large business case.  While the case was pending, when there was a chance to settle the case, both clients became unavailable due to health reasons.  If they had planned ahead and executed a durable power of attorney, one of their children could have stepped in.  Failure to have the power of attorney resulted in significant avoidable problems.  Moral to the story - get a durable power of attorney done. If you make your spouse your agent, make sure you also appoint an alternate. 

Motor Trend's Long-Term Test 2018 Chrysler Pacifica

I have written about stalling problems with Chrysler Pacifica minivans. Motortrend reports that the 2018 Chrysler Pacifica Limited that is in their long-term fleet has experienced stalling issues, but it is not yet under recall. For a variety of problems, their vehicle has been in the shop for more than 30 days, and would likely cqualify for lemon law buyback if it were consumer-owned.   The Motortrend long term report #3 is linked here. 

Mitsubishi Mirage heads list of most dangerous vehicles - BUT . . .

I feel like I'm playing "operator" reporting on a Jalopnik article reporting on an iseecars.com study identifying the most dangerous 14 car models on the road in terms of risk of highway fatalities. 

Per this study, the Mitsubishi Mirage has a rate of 10.2 fatalities for every billion passenger miles traveled. The same study calculated the average vehicle at  2.6 fatalities over the same period, so the Mirage was almost four times more dangerous than average by these numbers.

Let's convert these numbers to something more tangible. In the Mirage.  you can expect to be involved in a fatal accident once every 10 hundred million miles.  If you drive on average 35 miles per hour (figuring stopped time etc), that's once every 2,900,000 hours. There are 8766 hours in a year.  Let's call it 88000.  2,900,000/8800 = 329.5.  So if you drove a mitsubishi mirage nonstop for 329 years, you can expect it to result in your death. 

I have no idea what this means, but buckle up and be safe out there.

LFO - LIfetime Funding Options and New Wrinkle on Pension Assignment Scam

I've written before in this blog about the law closing in on the big players in the pension benefit assignment scams.  A recent caller explained experience which appears to be a new wrinkle on the scam.  In their case, LFO, Lifetime Funding Options ceased taking money directly out of the pension, and had the consumer authorize an automatic periodic debit of the account.  Perhaps they think not taking the money out of the pension makes  the deal legal. In my opinion, it does not.  First of all the underlying contract was for illegal payments, whitewashing it through a bank doesn't make it legal.  Secondly if it was an illegal loan before, it is still an illegal loan. If you have an automatic debit coming fro your account from Lifetime Funding Options, please contact me. 

By the way, I heard a report that Lifetime Funding Options has ceased answering its phones, and may or may not still be in business. 

Dodge Enterprises, Inc. and Hiday and Ricke, PA and the Ghost of Great Seneca

It has come to our attention that a company named Dodge Enterprises, Inc., typically represented by the law firm of Hiday and Ricke, PA, has been collecting on judgments originally awarded to Great Seneca Financial Corp.  Some people may be facing wage garnishments or asset attachments arising out of these old cases. Typically these cases were brought between 2003 and 2007.

As far as I can tell Dodge Enterprises has only been active in Florida.

I have written multiple times on the topic of Great Seneca, but basically, Great Seneca Financial Corp. is a dead company and has been since 2008.  It is one of a group of dead companies listed below:

Great Seneca Financial Corporation
Platinum Financial Services Corporation
Monarch Capital Corporation
Centurion Capital Corporation
Sage Financial Corporation
Hawker Financial Corporation
 Colonial Credit Corporation


If Dodge Enterprises, or any other entity for that matter, contacts relating to judgments originating with one of the companies above, it is very important that you make whoever is trying to collect from you provide proof of assignment of the judgment, and that proof should go back to the original judgment-holder and be account specific.  If they can't provide that level of proof, you might have defenses to paying on the judgments, and if you don't wait too long, you may actually be able to get some money back that you've already paid. 

Feel free to call us at 317-662-4529 if you have been garnished or are facing collection by Dodge Enterprises arising from an old debt or judgment. 

Call for Action - Talk to A Lawyer (FREE) April 4, 2019

Steve Hofer will be giving free 1-on-1 consultations on a walk-in basis at the John Boner Center in Indianapolis on April 4 as part of the Money-Smart week activities.  Here is the information.

General Information

What:  free, in person Indy Star Call for Action/Talk with a Lawyer event (person with an individual question can meet 1:1 with a Call for Actionvolunteer and then if has a legal issue to discuss, with a volunteer attorney) , live educational presentations on various topics, information table, light refreshments

When:  April 4, 5-7:30p

Where: John Boner Neighborhood Centers, 2236 E. 10th St.

Who: for individuals in the community wanting to learn more about the topics, meet with Call for Action Volunteer about an issue or dispute, and/or who are in need of an attorney consultation about individual non-criminal legal issues

Why:    to educate individuals about their rights, provide other legal/financial information and resources and to help address access to justice in our community through the 1:1 consults

Sponsored by: Indy Star Call for Action, Indiana Legal Services, Inc. Consumer Advocacy Project and partners: John Boner Neighborhood Centers, Hawthorne Community Center, & Southeast Community Services; Heartland Pro Bono Council,and Indiana section of National Association of Consumer Advocates

Have you been sued in Indiana by Automotive Finance Corporation?

We have experience representing dealers and guarantors who have been sued in Indiana by Automotive Finance Corporation.  Feel free to call us. 317-662-4529 

"How do I get out of the KO book?"

"How do I get out of the KO book?" This is a question that I've been hearing over and over again. I am working on a set of strategies, and I think the answer is going to be different for different people. If you as an individual have been turned down for employment in the auto industry because of the KO book, or if you have been fired because of the KO book, please call me at 317-662-4529.

Court of Appeals Reverses Denial of Class Certification in Red Barn Motors v Nextgear case.

In the Red Barn Motors v. Nextgear Capital Inc. case the 7th Circuit Court of Appeals reversed a district court ruling denying a motion for class certification.  This means that the plaintiff dealers have the chance to form a class to seek recovery for all dealers in the same shoes.  What are the allegations?  The primary allegation is that Nextgear charged interest during a time-period when they had not yet advanced money. 

This is not my case. This case was filed long before I started taking cases involving Nextgear. Even so, I am glad the plaintiff's lawyer prevailed on this issue.  Here's a link of a writeup on the case. 

My office regularly defends dealers when they are sued by Nextgear. We will try to figure out the best way to use this ruling to our advantage in our defensive cases. 

Are you facing a garnishment by Palisades Acquisition XVI, LLC? - You may have defenses you don't know about

For several years now we have been fighting a case I call the Case of Great Seneca's Ghost.  Without getting into the boring part, A company named Palisades Acquisition XVI, LLC asserts that it is the legal owner of a batch of accounts that originally had a face value of $6.9 billion.  The catch is Palisades Acquisition XVI has had a history of problems proving proper assignment of these accounts when challenged. What this means is that if you find out that Palisades Acquisition is trying to garnish your paycheck, you may have success in challenging it in court - if you get a competent attorney.  If you are in Indiana, you can contact us. If you are in other states, contact a NACA attorney at www.consumeradvocates.org/find-an-attorney.  You can tell the NACA attorney that Steve Hofer in Indiana referred you, and I will fill your attorney in with the details of what challenges might be most useful. 

Buffalo New York "Bottom Feeder" Debt Collectors are at it again - $22 million dollar scheme ends in guilty plea

A man named Carmelo Collana plead guilty to wire fraud and now faces up to 20 years in prison for his part in a scheme that may have collected $22 million on what were largely fake debts. In fact, the scheme participants may have collected the same accounts against the same people multiple times, and used threats of arrest and intimidation to do it.

Here's a little of my perspective as an attorney who has been defending consumers against debt collectors, and suing collectors who break the rules for over 25 years:  The more flagrantly the debt collector breaks the law, the less likely that you'll be able to sue them successfully for violating the Fair Debt Collection Practices Act.  The collection agencies that call on made up debts, that threaten force or arrest if you don't pay, these are criminal enterprises that aren't afraid of a lawsuit. These companies don't intend to be around in a year or two when you can get a lawsuit through the system. 

These thug companies, "bottom feeders' we call them, have congregated in the Buffalo/Niagra, New York area for more than 20 years. Why? who knows.  If you are contacted by a debt collector, take the time to learn your rights under the Fair Debt Collection Practices Act. You can use this link for information from the Federal Trade Commission right here. 

If a collector calls you, and you don't think the debt exists, you are probably right.  Make the collector provide proof. No legitimate collector will threaten you with arrest or criminal prosecution.

Hospitals Now Have to Publish their Standard Charges for Procedures

In rules promulgated under the Affordable Care Act, starting January 1, 2019, hospitals are required to publish a list of their standard charges. In the industry, this is known as the "chargemaster".  When you sign an admission form to be liable for the cost of your service, unless you have an insurance contract that specifies discounted charges, you are agreeing to pay the "chargemaster"price.  Insurance companies generally do negotiate discounts, and governmental agencies generally pay 65% of the chargemaster rates. 

This is still relevant to individuals because from time to time, there are still services not covered by insurance, either because of a policy exclusion or because the facility is out of network.  Note also that this regulation only applies to hospitals.  Facilities that aren't deemed to be hospitals and standard doctor offices aren't covered by this rule. 

https://www.appliedpolicy.com/navigating-cms-rules/new-requirements-for-hospitals-pertaining-to-chargemasters-effective-january-1-2019/

In litigation over medical bills, hospitals have fought disclosure of their chargemasters even when they have sued the patient for the bill, claiming the chargemaster is a trade secret. This new rule should be helpful in at least getting hospitals to turn over the chargemasters in defensive litigation.

https://www.appliedpolicy.com/navigating-cms-rules/new-requirements-for-hospitals-pertaining-to-chargemasters-effective-january-1-2019/

Do you have a defective Basement Watchdog Sump Pump? We want to hear from you

If you have a Basement Watchdog system that has failed during its warranty period, please call me at 317-662-4529.  If possible, call me before you replace it.

Did You Assign Your Pension to Future Income Payments?

For about 4 years I have been working for consumers, protecting them from collectors relating to pension advance scams.  I just ran across an article from the Pittsburgh Post Gazette that said Future Income Payments laid off 100 employees when it closed an office near Detroit, Michigan last year.  That was the first information that I've seen that indicates the scope of the operations of these Pension Advance Scam companies. 

If you sold part of your pension to a pension advance company, there is a very good chance that you have the legal right to stop making payments, but you should talk to a lawyer before you take that step.  Feel free to call our office at 317-662-4529. 

People are curious about Home Title Lock -Their ex-FBI Agent is a Part-Owner - HMMMM

Last year I published a post "Is Home Title Lock Legitimate?" This post now has over 1400 hits, and as such it is more popular than all my other posts from last year.   I'm not going to restate what I wrote last year.  My opinion is the same, I think the company is using fearmongering tactics to sell its product.  If you give them money and end up unsatisfied, I suggest you file a complaint with the Federal Trade Commission.  I wouldn't be surprised if the complaint spurred a refund.

Since I posted on the topic, the San Diego Union Tribune posted an interview with Art Pfitzenmayer, the ex-FBI agent spokesperson for the company. In the interview he admits that he is a part owner of the company. He admits that home title fraud was not a major problem when he worked for the FBI, and he admits that there have been "very few" cases where HTL customers had their titles fraudulently changed.   

2017, 2018, 2019 Chrysler Pacifica - Is Chrysler Stalling as much as the Vehicle?

There was a large recall of  154,000 2017 Chrysler Pacificas a year ago over complaints that the vehicle would stall unexpectedly. It is a traumatic experience when your vehicle konks out in the middle of an intersection on a busy highway.  A scan of the web shows that Pacifica owners were given lots of explanations for the stalling, but the attempted fixes often did not solve the problem.  There are signs that the engine control software update that was the prescribed fix in the recall did not solve the problem as 2018 and perhaps 2019 model vehicles continue to experience unexplained stalling behavior.  I received a complaint today about a 2018 Pacifica that was leased in late 2018.

The main problem seems to be with the gas-only versions of the van. The hybrid electric version is the subject of a separate, smaller recall.

There is a class action suit relating to the 2017 Pacificas. I don't have anything to do with that suit, but I checked the status, the case survived a motion to dismiss. The title of the case is now Moran v. FCA USA LLC, 3:17CV-02594-GPC-MDD. The principal lawfirm representing the plaintiffs is Capstone Law APC.


 If your vehicle suddently stalls and creates a dangerous situation. I suggest that you immediately file a complaint with the National Highway Traffic Safety Administration (NHTSA) .

Do online research on Google to find out what other owners of your vehicle are reporting. Take your vehicle to the dealer, and demand that the dealer address the problem. The dealer may take the vehicle in and say they can't "replicate the problem". Ask the dealer if they scanned the engine management computer for past fault codes.   Network with other owners through the Chrysler Pacifica Owners Forum.

The Chrysler Pacifica is a good vehicle overall, but if you are one of the minority of owners that gets a stalling vehicle, I can't blame you if you have shaken faith that your vehicle will be safe.

Note I am not involved in the current class action against Chyrsler, nor do I have any plans to initiate a class action against Chrysler.   If you are not a resident of Indiana, please don't call me concerning the stalling behavior of your Chysler, because I won't be in a position to help you.

The Return of "Blank Check" and "Blind Pool" Stock offerings - Uh oh

I just read a story that new "blank check" stock offerings hit a new 10 year high.  My first reaction was "uh oh".  That's not good.  My hunch is that this development is a reaction to tightening of small business credit, an environment of decreasing securities law enforcement or both. 

I lived in Miami, Florida during a heyday of blank check offerings (sometimes called "blind pool") in the late 1980s.  In those days, South Florida was the Mecca for over-the-counter, "penny" stock scam operations. There were so many scummy penny stock brockerage houses in Boca Raton, Florida in the late 1980s that a section of South Federal Highway in town was known as "Maggot Row" or the "Maggot Mile".  In those days, brokers would cold-call senior citizens to get them to buy stock in thinly traded companies. The stock price was often manipulated by insiders engaged in frauds such as the "pump and dump".  A fairly small, but low quality part of the over-the-counter stock trade involved blank check offerings.

What is a blank-check stock?  A blank check stock is a new company that is registered with the Securities and Exchange commission as a public company which has been incorporated for the purposes of acquiring other companies.  The way it was explained to me in business school was that an experienced company manager raises money based on his or her reputation for identifying opportunities. The investors bet on the acumen of the organizer by putting together a pool of money for the organizer to use to attract promising private companies that need money or want to go public. The blank check company is a public shell that can absorb the going-concern private company through a "reverse merger".  It's called a reverse merger because the smaller company absorbs the larger one. Typically, the management of the private company takes over the managment of the shell,. with the promoters and investors in the shell then becoming minority investers in the acquired company. The acquired company files a "Super 8K form"  with manadatory disclosure, and will have other requirements for registration on exchanges.   This disclosure is substantial, but is less than is ordinary required in a traditional public offering. 

Blank check offerings have been pitched as ways for private companies to get access to venture capital, and for companies wanting to go public to do so at a reduced cost. The catch is that traditionally, things didn't work out in the real world like they are described in corporate finance textbooks. In the past, money raised by the promoters has been looted by insiders, and insiders required under-the-table payments from the private companies to affect a merger. The stock of the resultant company was often so ummarketable as to be useless. Previously private companies found that they had all the regulations and burdens of a public company without a real working market for their stock. 

After the bad days of the 1980s some new regulations were put into place, and a new breed of "SPACS" or "Special Purpose Acquisition Companies" is apparently leading the way to a revival of blank-check companies.  Among the new requirements is for the proceeds raised for the acquisition to be placed in trust.  That's a good thing. 

In July 2017, there was announcement that the marijuana magazine "High Times" was acquired by a SPAC called Origo (OACQ). It appears though, that in August 2018, the parties called off the merger.  High Times had huge debt and comparatively small revenue, and the merger was apparently contigent on becoming valuable enough to list on NASDAQ.   This seems to track what I've seen before, the high profile "success stories" of blank check mergers aren't really as successful as their initial financial public relations press releases would lead one to believe.   High Times then turned to raising funds through a "Reg A+" in September 2018 which Seeking Alpha called "a mess to be avoided."


I don't have any ties to the financial industry. I don't work in the financial industry. I don't advise financial companies.  I have nothng to do with public offerings blank checks or companies that want to go public.  I don't want to have anything to do with the industry.  I do find it interesting how things go in cycles, and sometimes not for the better. 

Get to know these alternate credit bureaus

Most adults in the United States are familiar with Equifax, Trans Union and Experian. These are the "Big 3" credit bureaus in the United States.  In the consumer law profession, we call credit bureaus "Credit Reporting Agencies", or CRAs for short, because that is the term used in the Fair Credit Reporting Act. 

Most people don't know that there are man more consumer reporting agencies other than the Big 3.  One of them, Innovis, is trying to catch up to the Big 3, and I have heard the term "Big 4" to include Innovis. 

Most of the alternate credit reporting agencies have a niche specialty, for example focusing on rent history as a tool for landlords to screen tenants.  Rental bureaus in clude Tenant Data Services and Corelogic Saferent.  Bureaus relating to acceptance of checks and screening for opening of bank accounts include Telecheck, Chexsystems and Certegy Credit Services. 

Linked Here is a table of alternative credit bureaus at Wallethub.com.  You should not consider this list to be exclusive though.

The most important thing to remember when dealing with special purpose credit bureaus is that, for the most part, they have to comply with all the laws and regulations concerning credit reporting that apply to the Big 3.  This means that you should be entitled to a free annual report upon request, you need to be notified when data from the bureau is used to deny you credit or insurance, or if you are charged more because of the data.  You have the right to dispute inaccurate information in your credit file, and the CRA has the duty to conduct a reasonable inquiry upon receiving a dispute.

You have special rights when it comes to reports used for employment screening ("investigative reports" under the FCRA).  These rights include the right to be told in advance and in writing that an investigative report will be done, and to be notified of your rights to dispute the results of the investigative report.  Prospective employers often violate these provisions.   Sometimes landlords commission what is in fact an investigative report. In these cases special procedures must be followed as well. 

Lately we have been investigating complaints from former auto dealers that information from a business database the "KO Book" has been used to screen them from jobs in the auto industry.  Our working theory is that to use the business database in this way violates the Fair Credit Reporting Act, and perhaps the database publisher and the prospective employer are liable for misuse of the information.  If you have been denied employment due to the KO Book, please contact me. 

CFPB fines Pension Assignment Scam Honcho ONE DOLLAR

The Consumer Financial Protection Bureau, under Trump appointee Mick Mulvaney has virtually abandoned it's consumer protection role. Never has that been more apparent than the agency fining Mark Corbett, the man behind a number of pension assignment scam companies, the whopping sum of $1.00.  That's one whole dollar. 

With the neutering of the CFPB, it is clear that the Trump administration thinks that pensioners, including military pensioners, should just be money donors to all fast-talking scam operators. 

If you find yourself the victim of a pension assignment scam, feel free to call my office.  We may be able to help you if you are a pensioner who has assigned a piece of your pension. If you invested in a pension obligation, we MIGHT be able to help you, but it is a tougher case.  Once the scammers have implemented their exit strategy, we really have to look at intermediaries, like the life insurance agents who sell the pension annuity, because these obligations generally are illegal securities. 

When looking up stuff for this post, I found a complaint from a lawsuit filed in 2017 in USDC South Carolina, Lyons et al vs BAIC, Inc., et al, 6:17-cv-02362-MGL.  (A Pacer.gov search showed that this case is still open, with 149 documents having been filed in the case so far.) I found a number of things interesting in this complaint.  First, one of the atttorneys for the plaintiff works for the Jones Day lawfirm. This is a big law firm that consumer advocate attoneys usually see on the other side of their cases, because Jones Day represents credit reporting agencies and other corporate defendants.  Secondly, the group of defendants they sued - listed below. 

BAIC, Inc., VFG, Inc, (f/k/a Voyager Financial Group), SoBell Ridge Corp., Bradling Financial Group, Veterans Benefit Leverage, Strategic Marketing Innovators, Inc., Performance Arbitrage Company, , Andrew Gamber, Mark Corbett, Candy KernFuller, and Upstate Law Group,

I filed a suit in 2015 against Upstate Law Group, LLC on behalf of a client in 2015 based on their collection activities on behalf of a buyer of a pension security.  At that time the firm's defense was based on the isolated nature of this collection effort.   I didn't give that argument much credence then, and I would give it none today.

If you get any collection correspondence from Upstate Law Group, LLC on behalf of any pension assignee, please call my office. We may be able to help you bring an action for damages even if you don't pay them any money.