Ohio Consumer Law

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

War of the wealthy against consumer protection laws

2011-12-28T08:58:00.000-05:00

Read this blog by my colleague Ron Burdge, on a direct attack on consumer protection law by the rich.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Why we need to defend the Consumer Financial Protection Bureau

2011-07-21T15:41:00.000-04:00

We should not let the right derail the new Consumer Financial Protection Bureau before it even gets started. Click here for 10 good reasons.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

"Hot Coffee" and (Non)-Frivolous Lawsuits

2011-06-02T14:21:00.001-04:00

Find out the truth about "frivolous" lawsuits, who's behind the propaganda, and why...

YouTube - Hot Coffee movie trailer

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Why you should care about unfair arbitration and what you can do about it

2011-05-18T14:01:00.000-04:00

Please click the link below for a blog by my friend, and outstanding consumer attorney Ron Burdge:

Congress Looks at UNfair Arbitration and introduces a bill to stop it

Here's a sample of the post:

"Did you know that most of the time you get a cell phone, you are agreeing that no matter what happens you won't take the cell phone company to court? Did you know that many employers now require that too, if you want them to hire you? Did you know that even some car dealers won't sell you a car unless you agree you won't sue them if they rip you off? It's true, but it doesn't have to be that way."

Please read the rest, then take action as suggested in the blog!

If you have any questions on this issue, your are welcome to contact me.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Ohio foreclosure "rescue" company gets sued by Ohio Attorney General

2011-05-09T12:34:00.000-04:00

Click here for the story.

The Cleveland Plain Dealer is reporting that the Ohio Attorney General has sued a company called "The Modification Group LLC" and one of its officers, Robert Walker. According to the suit, the company claimed it would help consumers get mortgage loan modifications, but charged high fees, did not help consumers properly, and violated multiple consumer protection laws.

If you have been victimized by a mortgage modification company, a debt negotiation company or debt collector, you can complain to the Ohio Attorney General. You can also phone me to arrange a free initial consultation.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Houston jury orders $13.8M verdict in Texas debt scam

2011-04-26T17:19:00.000-04:00

Click here to see ABC's local TV station's web story

This is an example of what a state attorney general's enforcement of consumer laws looks like. In this case, it was the Texas Attorney General going after the people behind a debt relief "scam". Be very careful about ads you hear on the radio or tv for "debt negotiation", "debt relief" etc. Some of these ads even claim to be associated with the federal government.

Part of what I do as an attorney is suing these deceptive debt relief companies for consumers who have paid them money and got little or nothing in return.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

"Am I Going to Have to Kill You?" - Abusive debt collection.

2011-04-18T13:02:00.001-04:00

Alternet article on abusive debt collection 4-17-2011

This seems like an extreme example, but this kind of abuse in debt collection goes on a lot. It needs to be stopped. I'm happy that I can occasionally get compensation for some victims of collection abuse, but realistically, collectors make too much money to stop, even if they have to pay a victim here and there.

The FTC and state attorneys general need to shut down the worst offenders, and in appropriate cases, prosecute some of these people and send them to prison.

Gregory S. Reichenbach, Attorney at Law

P.O. Box 256

Bluffton, OH 45817

Phone (419) 529-8300

Fax (419) 529-8310

www.ReichenbachLaw.com

Twitter: @gsreichenbach

Story in the Jakarta Post April 5, 2011 [Click this link]

Blog: http://consumerlawohio.blogspot.com

Debt collectors allegedly murder debtor for complaining about inflated credit card bill.

2011-04-04T19:33:00.000-04:00

Gregory S. Reichenbach, Attorney at Law

P.O. Box 256

Bluffton, OH 45817

Phone (419) 529-8300

Fax (419) 529-8310

www.ReichenbachLaw.com

Twitter: @gsreichenbach

Blog: http://consumerlawohio.blogspot.com

National Consumer issues Blog

2011-02-23T09:01:00.001-05:00

The Consumer Law and Policy Blog at http://pubcit.typepad.com/clpblog/

is a great blog about national consumer issues. The blog is sponsored by Public Citizen's Consumer Justice Project.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Capital One dredges up decade-old, charged-off debt

2011-02-21T19:57:00.000-05:00

Capital One dredges up decade-old, charged-off debt

This LA Times article gives an example of an attempt to collect an old debt. If you get sued on an old debt, contact an attorney to find out if the age of the debt is a defense. You might also have a claim against a debt collector for suing on a time-barred debt.

Greg Reichenbach, Attorney at Law

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

A win against a debt-buying company

2011-02-18T08:46:00.000-05:00

I don't often get to actually have a trial on a collection case, because most collection suits in my practice are dismissed, when I defend the consumer.

In one recent case, though, we had a trial, and won. Then the collector filed an appeal, and we won again.

A debt-buying company sued my client to try to collect on an old car loan. The collector's witnesses did not know enough about their own evidence. Much of their evidence was not admissible. The collector was not able to prove they owned my client's account.

The Court of Appeals agreed with us and ruled that the trial court properly dismissed the collection law suit. The case citation is: John Soliday Financial Group, LLC v. Pittenger, 2010-Ohio-4861 (Fifth District).

Here's a link to the decision:

http://www.supremecourt.ohio.gov/rod/docs/pdf/5/2010/2010-ohio-4861.pdf

Greg Reichenbach

Bluffton Ohio

Website: www.reichenbachlaw.com

Twitter: @gsreichenbach

Consumer Financial Protection Bureau - New Hires

2011-02-17T16:00:00.000-05:00

Treasury Department Press release 2-17-10

At first glance, I'm disappointed to see a bunch of former bankers appointed to the Implementation Team for the new CFPB. These bankers are supposed to set up the framework for how the Bureau will protect consumers from -- you guessed it -- financial institutions such as banks.

Nothing like sending the fox to guard the henhouse.

Greg Reichenbach

Bluffton Ohio

www.reichenbachlaw.com

Twitter: @gsreichenbach

A win against some debt settlement companies

2011-02-06T21:16:00.000-05:00

A while ago, I promised to give you some examples of the types of cases I do. Please keep in mind that although I am very good, I don't win all of my cases. Most of them; but not all. Each one is different. Here is a summary of a recent win.

On behalf of a client, I recently obtained a judgment for over $56,000 against a group of debt settlement companies, for unfair and deceptive acts.

The details are below, but first some background on the debt settlement industry:

Most of the companies you hear advertising on TV, or see on the internet, are in my view, scams. They convince you that hiring them is better than bankruptcy or getting advice from an attorney. They set you up with a "plan" that involves paying a monthly amount for three years or so. The first several thousand (or up to twelve thousand in one recent case) gets paid to the scammers. Then they attempt to negotiate reduced balances on one or more unsecured debts of yours. Sometimes they actually accomplish a settlement of one or more accounts at a significant discount. But sooner or later (usually after they've made their fee), it becomes apparent that they are not helping you. Often I get called after one of the creditors files a collection law suit, and the settlement company throws in the towel. That's what happened with my client in this case.

So what's wrong with these companies? Well, they overstate what they can do. They promise or strongly imply that they will get settlements on all of your accounts, and that you'll save money by paying the settlement company. They fail to inform you that some creditors have a policy of not working with settlement companies. They often misrepresent what will happen in the event of a collection law suit. Sometimes they falsely claim that they will supply legal representation. For Ohioans, they almost always violate Ohio laws that prohibit certain charges and unfair and deceptive acts and statements.

Not too long ago, the Federal Trade Commission issued a rule restricting the activities of these companies and the way they charge for their "services". You can read the FTC press release here. It's important to note that Ohio already had some consumer protections in place before this new rule.

I believe that debt settlement scams are one of the fastest-growing areas of consumer fraud.

But I also want you to know that there are legitimate credit counseling services out there too. They just don't charge more than a small monthly fee, and they give good advice. I also want you to know that each case is different. If you think you have been victimized by a debt settlement scammer, you might have a good case or you might not, for a variety of reasons. If you're not sure, you should consult with a qualified attorney. While you're at it, you may need some advice on how to deal with the debt at this point.

Ok, so here are the details of this case:

The debt settlement scammers told my client that they could get reductions of her debt of 40 to 60%, and set up a payment schedule based on a 60% reduction. They told her very clearly that she would be provided independent legal services. They lied to her, saying that law suits are "not typical" in the program; they implied that a wage garnishment could be avoided; they told her her credit score would improve through their program; they gave bad information to her about debt collection laws.

After some time in the program, a creditor sued my client on one of the debts in the program. The settlement companies recommended that she "go to court" (whatever that was supposed to mean) and tell the court that she could not afford to pay the debt. This was not good legal advice, and it did not come from a lawyer qualified to give the advice. The settlement companies did not suggest that my client consult with an attorney.

The court entered a judgment against my client in the collection suit, and her wages were garnished. Then a second creditor filed another collection law suit against my client, and she found me shortly thereafter. My client paid over $4,200 to the settlement companies before she realized it was a scam.

We filed a suit against five companies, alleging unfair and deceptive acts, negligent misrepresentations, and civil conspiracy. (These companies tend to hide their identity, and have several related corporate shields set up to try to deflect law suits and government regulation.) Two of the companies immediately wanted to settle the claims, and we worked out a reasonable settlement. The three remaining companies failed to respond in a proper, timely manner, and the court entered a default judgment against them for actual damages, punitive damages, and my client's attorney fees -- a total of $56,534.94, plus court costs and interest.

Here are the companies we have a judgment against:

Accredited Financial, Inc, a California corporation

Accredited Financial Services LLC, a Delaware company

and

HPM, Inc., a corporation believed to be based in California.

We'll be attempting to collect this judgment, so if you know where any of the companies bank, or have other assets, please feel free to drop me a line.

Greg Reichenbach
Greg@ReichenbachLaw.com
www.ReichenbachLaw.com

Consumer Financial Protection Bureau - new website launched

2011-02-03T13:41:00.000-05:00

http://www.consumerfinance.gov/

Above is the new website for the Consumer Financial Protection Bureau, which is headed by Professor Elizabeth Warren (who I previously recommended for the post here). Ohio's former Attorney General Richard Cordray will head the Enforcement Division (as I previously blogged here).

So far, the website is mostly an introduction to the Bureau, but already includes some interesting complaints by consumers.

In the future, consumers will be able to submit complaints to the CFPB via a website.

You may want to check the CFPB website again later, when more content is added. Hopefully the Bureau will live up to the high expectations set by Prof. Warren and Mr. Cordray.

Greg Reichenbach
www.ReichenbachLaw.com
Greg@ReichenbachLaw.com

Ohio AG Cordray will head Consumer Financial Protection Bureau Enforcement Division

2010-12-15T19:17:00.000-05:00

Ohio AG Cordray to head CFPB Enforcement Division (Reuters)

Mr. Cordray was not afraid to stand up to the banks in Ohio. I'm optimistic he'll work on behalf of consumers in Washington.

Greg Reichenbach
Bluffton OH
www.reichenbachlaw.com
Greg@ReichenbachLaw.com

Ohio Attorney General Richard Cordray on Foreclosure Fraud

2010-10-29T12:38:00.000-04:00

Ohio Attorney General Richard Cordray speaking on Bloomberg

Ohio's Attorney General speaking on Bloomberg about the widespread foreclosure fraud on the Courts perpetrated by numerous major banks. AG Cordray is a true consumer advocate.

It's not enough for the banks to say "Oops, sorry about filing those false affidavits". It would be an insult to just file new affidavits. These bad actors need to be punished by the courts. The integrity of our judicial system is at stake.

Greg Reichenbach
www.ReichenbachLaw.com
Greg@ReichenbachLaw.com

Foreclosure Fraud by Major Financial Institutions on a Massive Scale

2010-09-30T15:16:00.022-04:00

Update Oct. 6, 2010: Ohio Attorney General Richard Cordray has filed a lawsuit against GMAC Mortgage, accusing it and its parent company of "filing fraudulent affidavits to mislead courts in hundreds of Ohio foreclosures." This is part of the "robo-signing" of affidavits by many large mortgage banks. The story is expanding faster than I can keep up with it!

Here a link to get more information:

Ohio Attorney General's law suit against GMAC Mortgage

[The original blog entry is below.]

When a bank forecloses on a consumer's home, a bank agent signs an affidavit testifying under oath as to who owns the mortgage and note.

Typically, when you buy a house, the initial lender sells the loan to another bank. The loan often gets transferred multiple times. By the time a foreclosure is filed, the company enforcing the note is often one the consumer never even heard of (such as "Deutsche Bank Trust Company Americas, as Indenture Trustee for Saxon Asset Securities Trust 2006-3" -- yes, that's from an actual foreclosure case). So, the company doing the foreclosing needs to prove to the court that it actually owns the mortgage, and has a right to foreclose.

Recently, some consumer lawyers have uncovered massive fraud in connection with the people signing these affidavits on behalf of foreclosing banks. Through depositions (where the witness must answer questions under oath), these attorneys have found that the people signing these affidavits routinely ignore the law. They are supposed to sign based on their personal knowledge, or based on their review of reliable business records. But that's not what there were doing.

Some of the people signing these affidavits sit at a table and just start signing them, on a massive scale, without verifying the accuracy of the information. In one case, a team of just eight people notarized 18,000 affidavits per month! No oath was administered, as required by law. The person signing was not even the person supplying the information -- it was the notary! (The notary's involvement is supposed to be merely making sure that the document is signed and acknowledged properly, and to administer an oath to the person signing.) In many cases, the notary was not even present when the document was signed!

You might think that these are just formalities, but keep in mind that folks are losing their homes based on these affidavits.

Two major banks recently announced a halt to thousands of foreclosures because this fraud has come to light. But before you think the banks are "doing the right thing" keep in mind that they only put a stop to the foreclosures AFTER they got caught. They knew this was happening, and it was part of their normal business practice!

Here's an article about JPMorgan Chase freezing foreclosures:
Washington Post - Chase 9-23-10

Ohio's Secretary of State, Jennifer Brunner, is in charge of regulating notary publics in Ohio. As part of her duties (and to her credit), she has referred Chase Home Finance LLC to federal authorities for investigation into whether federal crimes have been committed.

Here's Secretary Brunner's letter to the U.S. Attorney:

Brunner's letter to US Attorney and a follow-up letter.

Here's Secretary Brunner's press release:

Press Release 9-30-10

Here's an article from the Washington Post:

Washington Post Article 9-23-10

Not to be outdone, a OneWest Bank executive admits that their team whips out about 24,000 affidavits a month without reading all of them, according to a Washington Post article.

This is a big development. The foreclosing banks are thumbing their noses at the rules. And it's not an isolated incident.

Greg Reichenbach

Bluffton, Ohio

www.ReichenbachLaw.com

NY Debt Collectors face felony charges

2010-09-28T15:00:00.002-04:00

Sometimes debt collectors deserve to be sued when they act unfairly. Other times, they need to be put out of business and sent to prison.

Here's a press release from the New York Attorney General on another Buffalo, NY collector who crossed the line, specifically targeting military consumers with their lies:

ATTORNEY GENERAL CUOMO ANNOUNCES FELONY CHARGES AGAINST OWNER OF DEBT COLLECTION COMPANY THAT TARGETED MILITARY PERSONNEL

Greg Reichenbach
Bluffton OH
Greg@ReichenbachLaw.com
www.ReichenbachLaw.com

Identity Theft from Public Records?

2010-09-16T10:05:00.002-04:00

In Shreveport, Louisiana, someone left documents containing residents' private information unattended in a public area of a city building. A potential identity thief could have simply swiped someone's social security number, address and other information, and opened a line of credit in their name. Here's a local news story:

KSLA News report

The incident in Shreveport is (hopefully) an isolated incident. But I see a lot of cases where this happens in Ohio courts. When a creditor or debt collector files a collection law suit, the collection lawyer often files a copy of a contract or account statement as an attachment to the complaint. These documents are filed with the clerk of courts. Sometimes, these documents contain the consumer's social security number. Court rules require that a social security number, and some other private information, be redacted (covered up) before filing with the court.

But I've seen a lot of cases where the collection lawyer files a social security number, un-redacted, with a clerk of court. Normally, documents filed with a clerk of courts are a public record, available to anyone, without question. Many clerks go out of their way to correct this when it happens. But when a social security number or other private information is filed in court, this creates an unacceptable risk of identity theft. Many consumer rights attorneys believe that filing a consumer's social security number with a clerk of courts is unfair and violates consumer protection laws.

If you've been sued on a debt, take a look at the complaint and all the attachments. If your social security number or other private information appears, you should notify the attorney who filed it and demand that they redact it or have it sealed by the judge (ordered not to be disclosed without a court order). Of course, you should also consult with an attorney familiar with debt collection.

For more information about identity theft, see:

FTC Identity Theft website

US Department of Justice Identity Theft website

Ohio Attorney General's ID Theft website

Greg Reichenbach
Greg@ReichenbachLaw.com
Bluffton OH

New York Attorney General arrests debt collector operating from prison

2010-08-25T14:01:00.000-04:00

OK, not all debt collectors are this bad. But some of the worst are from Buffalo.

Here are a couple of stories on a guy charged with illegally operating a debt collection business from prison:

New York Daily News article

New York Post article

Greg Reichenbach
Greg@ReichenbachLaw.com
www.reichenbachlaw.com

What Consumers Can Do When Sued on a Debt

2010-08-22T21:28:00.000-04:00

Below is an article I wrote for the Ohio State Bar Association's "Law You Can Use Column". Many people think that if they get sued on a debt, there's not anything they can do. Many times they have questions. Here are some answers.

Q.: I received a summons from a court on a debt. What can I do?

A. It is important to file an Answer to the complaint. To respond to a lawsuit in Ohio state courts, you or your attorney must do so in writing within 28 days of being served, or ask the court for additional time to respond. If you dispute the amount, or if you’ve never heard of the company that is suing you, you may want to consult an attorney. If your debts are overwhelming, and you won’t be able to pay them off in the future, you should find out whether bankruptcy is an option for you. On the other hand, if you know you owe the creditor the amount demanded, and you can afford it, you may want to consider working out a payment plan. If you do, make sure you get any agreement in writing.

Q.: I owed a credit card company money, but now a different company is suing me. How do I know the second company really bought my credit card account?

A.: A number of businesses buy large numbers of older accounts, like credit card debt, for a few cents on the dollar, then attempt to collect it. If a debt buyer sues you, it must prove that it owns the account and that you opened an account. You must follow the court process to force the plaintiff to prove its case. The debt buyer also must provide evidence of the credit terms as well as evidence that you owe the amount claimed due. This sounds easy, but often these debt buyer companies do not have enough evidence to prove their claims in court.

Q.: I do owe the money, but just can’t afford to pay anything now. What will happen to me?

A.: If the company suing you proves their case, a judgment may be entered against you (meaning that the court determines you must pay). Up to 25 percent of your wages may be garnished in Ohio, and the creditor may take money from your bank accounts, unless your bank account contains only exempt funds. Examples of exemptions are Social Security money, student loans and certain other government benefits. Exempt funds will be garnished, however, unless you inform the court and the plaintiff, in writing, that the money in the account is exempt. If the creditor cannot prove its case, the creditor will not get a judgment against you, and will not be able to garnish your wages or bank accounts. You cannot be put in jail for simply owing money.

Q.: I have a dispute with the business that is suing me. How does that affect the lawsuit against me?

A.: If you have a claim against the company suing you, you can bring a counter-claim. In some cases, if you do not bring a counter-claim in response to being sued, you will not be able to bring your claim later. A counter-claim is basically a lawsuit against the creditor, but the creditor’s claim and your counter-claim will be decided by the court in the same case. Examples of counter-claims include claims against a debt buyer for unfair or deceptive methods of debt collection, claims against car dealers for deceptive sales practices, and violations of other consumer protection laws. A company that buys accounts may also be responsible for claims you have against the original business from whom it bought the account.

Q.: I think I need a lawyer, but I can’t afford one. What can I do?

A.: Some attorneys may represent you in your debt case for a flat fee. Some consumer protection laws may force the business to pay your attorney fees if you win. If you have a claim against the company suing you for a violation of certain consumer protection laws, an attorney may represent you without pre-payment of the fees, and attempt to collect your attorney fee from the business. Call your local bar association for a referral. If you make under a certain income, you may qualify for representation by a legal aid organization.

Greg Reichenbach