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.
Tuesday, January 29, 2019
Monday, January 28, 2019
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.
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.
Sunday, December 30, 2018
The Most Popular Post of 2018 - Is Home Title Lock Legitimate?
I looked back at my posts from 2018, and by a large margin, my most popular post was my post posing the rhetorical question: Is Home Title Lock legitimate?
This post generated over 500 views per Blogger's counter. (What can I say? This blog isn't exactly the New York Times.)
I still hear the advertisements all the time on Sirius XM radio. They still bug me because I think they are spreading fear far out of proportion to the problem. I still believe you are more likely to get struck by lightning than to have your home title affected by the fraud of a stranger. According to outsideonline.com, you have a 1/10,000 chance of being struck by lightning in your lifetime (80 years). Also about 40 people per year die from lightning strikes in the US.
This post generated over 500 views per Blogger's counter. (What can I say? This blog isn't exactly the New York Times.)
I still hear the advertisements all the time on Sirius XM radio. They still bug me because I think they are spreading fear far out of proportion to the problem. I still believe you are more likely to get struck by lightning than to have your home title affected by the fraud of a stranger. According to outsideonline.com, you have a 1/10,000 chance of being struck by lightning in your lifetime (80 years). Also about 40 people per year die from lightning strikes in the US.
Thoughts on Removing Yourself from Spokeo, Mylife etc.
I have seen a number of articles lately about removing one's self from information aggregation websites like mylife.com and spokeo.com. I even experimented with removing myself. My first impression is that it's a waste of time, and I'm not sure it's worth the effort, and I'll tell you why.
In the United States at least, the First Amendment to the Constitution protects the right of free speech. The government cannot pass a law that restricts the right to post true information on the web, and for mass media defendants, even false information is protected unless it is published with knowledge of falsity or reckless disregard for the truth.
Moreover, there is no real remedy at law for posting false information that is not defamatory. There is a state law tort of invasion of privacy, but bringing an invasion of privacy case is rarely economical.
Mylife.com has something it calls a reputation score. They can put anything they want on that because their assessment of your reputation is an opinion, and that is constitutionally protected.
The bottom line is that living in a country with a right of free speech is a two-edged sword, you can pretty much say any true factual information to anyone you want as well as voice your opinion about anybody you want, but other people also have the right to say stuff about you as well. You can try to remove yourself from these sites, but don't be surprised if your efforts aren't rewarded by results.
BTW, you can comment on this post, but please don't email me on this topic. I have nothing more to add, so you would be wasting your time.
In the United States at least, the First Amendment to the Constitution protects the right of free speech. The government cannot pass a law that restricts the right to post true information on the web, and for mass media defendants, even false information is protected unless it is published with knowledge of falsity or reckless disregard for the truth.
Moreover, there is no real remedy at law for posting false information that is not defamatory. There is a state law tort of invasion of privacy, but bringing an invasion of privacy case is rarely economical.
Mylife.com has something it calls a reputation score. They can put anything they want on that because their assessment of your reputation is an opinion, and that is constitutionally protected.
The bottom line is that living in a country with a right of free speech is a two-edged sword, you can pretty much say any true factual information to anyone you want as well as voice your opinion about anybody you want, but other people also have the right to say stuff about you as well. You can try to remove yourself from these sites, but don't be surprised if your efforts aren't rewarded by results.
BTW, you can comment on this post, but please don't email me on this topic. I have nothing more to add, so you would be wasting your time.
Saturday, December 29, 2018
Update on VFG Pension Advance Schemes, Cash Flow Investment Partners, and Pension Viaticals Structured Cash Flows
I have written before about Voyager Financial Group. I am still getting calls from people who sold their pensions to Voyager Financial Group (VFG) even five years ago. I don't think VFG still exists Incredibly, there is still a Voyageur Financial Group website, but note the spelling:Voyageur. This appears to be a different company, one that spells "voyager" like the Canadians do. Different spelling or not, in my opinion, they picked a lousy name, and they ought to consider changing it in light of the problems with the pension-advance VFG. I spent an hour looking at their stuff before I realized it was probably another company entirely.
How bad are these pension advance companies? In September of this year, the Consumer Financial Protection Bureau filed a lawsuit against another group of pension advance companies. Here is the text of the CFPB press release:
The Virginia attorney general also secured a default judgment in a separate lawsuit against some of the same entities. https://www.consumerfinancemonitor.com/2018/11/21/virginia-attorney-general-obtains-judgment-in-lawsuit-against-pension-advance-company/
As I have said earlier, I believe virtually all of these pension advance contracts entered into by consumer/employees and private investors are illegal. We have successfully protected pensioners who have decided to stop making payments on the contracts.
If you are a pensioner who is losing some of your pension every month, I suggest you talk to an attorney before ceasing payments, but that can be an option worth considering in a given case.
If you invested in a pension annuity, you might have a right to sue the individual or company that sold you the annuity. Keep in mind, it is harder to get back money that you put out than it is for the pensioner to keep from losing additional money beyond what has already been lost.
I came across a great article at consumermojo.com titled "when you stop paying off a pension advance" that looked at a lawsuit between an investor in a pension advance and the pensioner. The long and the short of it is that the investor walked away empty handed.
Below are the names of some companies that have been associated with pension advances. I have not examined the contracts of all of these companies.
How bad are these pension advance companies? In September of this year, the Consumer Financial Protection Bureau filed a lawsuit against another group of pension advance companies. Here is the text of the CFPB press release:
The Bureau of Consumer Financial Protection (BCFP) has filed a complaint against Future Income Payments, LLC (FIP), Scott Kohn, and the following related entities: FIP, LLC; BuySellAnnuity Inc.; Cash Flow Investment Partners LLC; Pension Advance LLC; Cash Flow Investment Partners East LLC; Cash Flow Investment Partners MidEast LLC; Lumpsum Pension Advance Atlantic LLC; Lumpsum Pension Advance Southeast LLC; Lumpsum Settlement West LLC; PAS California, LLC; PAS Great Lakes, LLC; PAS Northeast LLC; PAS Southwest LLC; Pension Advance Carolinas LLC; Pension Advance Midwest LLC; and Pension Loans South LLC.What is notable about this lawsuit is that it was the first enforcement lawsuit filed by the CFPB under the the supervision of acting CFPB director Mick Mulvaney. Mulvaney never met a corporate scam he didn't like. He has even advocated dismantling the very agency he purports to head.
The lawsuit, filed in federal district court in the Central District of California, alleges that the defendants violated the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B), by representing to consumers that their pension-advance products were not loans, were not subject to interest rates, and were comparable in cost to, or cheaper than, credit-card debt when, in actuality, the pension-advance products were loans, and were subject to interest rates that were substantially higher than credit-card interest rates. The Bureau also alleges that Defendants violated the Truth in Lending Act (TILA), 15 U.S.C. § 1638(a)-(b), by failing to disclose a measure of the cost of credit, expressed as a yearly rate.
The Virginia attorney general also secured a default judgment in a separate lawsuit against some of the same entities. https://www.consumerfinancemonitor.com/2018/11/21/virginia-attorney-general-obtains-judgment-in-lawsuit-against-pension-advance-company/
As I have said earlier, I believe virtually all of these pension advance contracts entered into by consumer/employees and private investors are illegal. We have successfully protected pensioners who have decided to stop making payments on the contracts.
If you are a pensioner who is losing some of your pension every month, I suggest you talk to an attorney before ceasing payments, but that can be an option worth considering in a given case.
If you invested in a pension annuity, you might have a right to sue the individual or company that sold you the annuity. Keep in mind, it is harder to get back money that you put out than it is for the pensioner to keep from losing additional money beyond what has already been lost.
I came across a great article at consumermojo.com titled "when you stop paying off a pension advance" that looked at a lawsuit between an investor in a pension advance and the pensioner. The long and the short of it is that the investor walked away empty handed.
Below are the names of some companies that have been associated with pension advances. I have not examined the contracts of all of these companies.
- LumpSum Pension Advance
- Pension Funding LLC
- Pensions Annuities & Settlements LLC
- Pension Income LLC
- Cash Flow Investment Partners
- DFR Pension Funding
- Veterans Benefit Leverage
- Voyager Financial Group LLC (Pension4Case/Cash Out My Pension/Buy Your Pension)
- First American Finance Corporation
- Investing Forward (Termbrokers LLC)
Thursday, November 15, 2018
Total Resource Auctions and Nextgear Repos
I talk to a lot of dealers who are shocked to find out how little Nextgear sells their cars for after the cars are repossessed by Nextgear. I have had dealers tell me that Nextgear waits until the end of the auction to sell the Nextgear repos - after the majority of the bidders have gone home. Then there is another possibility. Mannheim Auctions has a separate division, "Total Resource Auctions" that according to its website specializes in nondrivable and salvage vehicles. If drivable repossessed vehicles are sold there, it seems a good case could be made that the sale is not commerically reasonable under the Uniform Commercial Code. https://publish.manheim.com/en/services/unique-vehicles/salvage.html
Thursday, November 1, 2018
Lifeway Credit Union and contracts from The College Network - Looking to set up group action
I have a client who is looking to join up with other former students/customers of The College Network for defensive and offensive action against Lifeway Credit Union. This includes looking at the company's credit reporting practices. This may be a class action, but more likely would be a multiple plaintiff non-class action, or even coordinated offensive/defensive actions. If you are paying on a Lifeway Credit Union College Network debt and think you should be able to stop, or if you stopped and are facing collection actions or bad credit reporting, please contact me at 317-662-4529 or hoferlawindyATgmail.com. (of course substitute the "@" symbol for "at" in the email address above. If you email me, please put "college network" or "Lifeway Credit Union" in the text of your email. Thanks. Steve Hofer
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