Greg Reichenbach,
Attorney at Law
PO Box 256
Bluffton OH 45817
Phone: (419)
529-8300
Email:
Greg@ReichenbachLaw.com
Website:
www.reichenbachlaw.com
Twitter:
@gsreichenbach
Facebook:
http://www.facebook.com/ReichenbachLaw
Showing posts with label consumer. Show all posts
Showing posts with label consumer. Show all posts
Sunday, November 29, 2015
Robocalls
"Robocalls" are a constant problem. Check out my new web page explaining the basics: http://www.reichenbachlaw.com/robocalls.htm
Sunday, September 6, 2015
Arrested for failing to pay a debt?
I've talked to a number of people lately who have been arrested in connection with an alleged debt. In one case, the client was sued by her former lawyers, for failing to reimburse them for a filing fee. Even though it appeared that they knew she had moved, the law firm had her served with a motion for a bench warrant at her old address. That case has been resolved to the client's satisfaction.
In another case, a taxpayer was charged with the crime of failing to file a tax return by a city in Ohio. She didn't actually owe any taxes (she worked, but had taxes taken out of her check by her employer). Even after she paid the $25.00 late fee, she was still arrested, apparently for failing to pay court costs and for failing to appear at trial. This case is still under investigation.
If you have been arrested in connection with an alleged debt (other than child support or spousal support -- I don't handle those matters), feel free to contact me for a no-cost consultation. In appropriate cases, clients don't have to pay my fees out of pocket.
In another case, a taxpayer was charged with the crime of failing to file a tax return by a city in Ohio. She didn't actually owe any taxes (she worked, but had taxes taken out of her check by her employer). Even after she paid the $25.00 late fee, she was still arrested, apparently for failing to pay court costs and for failing to appear at trial. This case is still under investigation.
If you have been arrested in connection with an alleged debt (other than child support or spousal support -- I don't handle those matters), feel free to contact me for a no-cost consultation. In appropriate cases, clients don't have to pay my fees out of pocket.
Greg Reichenbach,
Attorney at Law
PO Box 256
Bluffton OH 45817
Phone: (419)
529-8300
Email:
Greg@ReichenbachLaw.com
Website:
www.reichenbachlaw.com
Twitter:
@gsreichenbach
Facebook:
http://www.facebook.com/ReichenbachLaw
Tuesday, March 27, 2012
A chance to preserve consumer protection in Ohio
Click here for an article explaining why you should call or email the governor about House Bill 275.
This is important. You might need the Consumer Sales Practices Act someday, and it is in the process of being gutted.
This is important. You might need the Consumer Sales Practices Act someday, and it is in the process of being gutted.
Greg Reichenbach, Attorney at Law
Bluffton Ohio
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Wednesday, February 15, 2012
Free legal services for locked out Cooper union members in Findlay
In solidarity with union workers, during the Cooper lockout in Findlay, Ohio, I will be offering free legal services to union members of USW Local 2071 who are sued on credit card, medical or automobile repossession debts.
Greg Reichenbach, Attorney at Law
Bluffton Ohio
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Wednesday, January 18, 2012
“Last Dollar” scams
Check out this Article in the Connecticut Law Tribune by Mark Dubois.
It explains how the laws that ban the unauthorized practice of law are consumer protection laws, and are needed to prevent people from being scammed by people looking for your "last dollars."
It explains how the laws that ban the unauthorized practice of law are consumer protection laws, and are needed to prevent people from being scammed by people looking for your "last dollars."
Greg Reichenbach, Attorney at Law
Bluffton Ohio
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Wednesday, December 28, 2011
War of the wealthy against consumer protection laws
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
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Thursday, June 2, 2011
"Hot Coffee" and (Non)-Frivolous Lawsuits
Find out the truth about "frivolous" lawsuits, who's behind the propaganda, and why...
YouTube - Hot Coffee movie trailer
YouTube - Hot Coffee movie trailer
Greg Reichenbach, Attorney at Law
Bluffton Ohio
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Wednesday, May 18, 2011
Why you should care about unfair arbitration and what you can do about it
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.
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
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Tuesday, April 26, 2011
Houston jury orders $13.8M verdict in Texas debt scam
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.
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
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Monday, April 18, 2011
"Am I Going to Have to Kill You?" - Abusive debt collection.
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.
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
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Wednesday, February 23, 2011
National Consumer issues Blog
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.
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
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Friday, February 18, 2011
A win against a debt-buying company
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
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
Email: Greg@ReichenbachLaw.com
Website: www.reichenbachlaw.com
Twitter: @gsreichenbach
Facebook: http://www.facebook.com/ReichenbachLaw
Sunday, February 6, 2011
A win against some debt settlement companies
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:
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
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
Thursday, February 3, 2011
Consumer Financial Protection Bureau - new website launched
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
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
Wednesday, December 15, 2010
Ohio AG Cordray will head Consumer Financial Protection Bureau Enforcement Division
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
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
Thursday, September 30, 2010
Foreclosure Fraud by Major Financial Institutions on a Massive Scale
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.
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
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:
Here's Secretary Brunner's press release:
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.
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
Email: Greg@ReichenbachLaw.com
Thursday, September 16, 2010
Identity Theft from Public Records?
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
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
Tuesday, August 3, 2010
Debt Settlement Company Scams
The company tells you that you pay them a setup fee, stop paying your debts, and eventually they will negotiate with your creditors for lump sum settlements at reduced rates. They tell you they have a 95% success rate. It sounds good. The setup fee is paid in monthly installments for maybe six months or so.
After the setup fee is paid, they start negotiating with your creditors, and maybe they actually get you a deal of 50% off or so on one account. At this point, you have paid the company $5,000 in fees, but if they cut all your debts by half, it's still a good deal, so you hope....
Then reality sets in: you get your first collection law suit from a creditor who refuses to deal with the debt settlement company. The DSC says they don't practice law and therefore cannot defend you against the collection suit (maybe contrary to what they implied when they were convincing you to sign up), but they "help" you write your own response to the law suit. Your "response" is not sufficient, and the creditor gets a judgment against you and begins to garnish your bank account and wages. Eventually, you realize that the DSC is not going to solve your financial problems and you end up filing bankruptcy, which costs less than what you've already paid to the DSC.
I have seen this pattern over and over again in my practice. Yesterday a smart young woman called to get my help on a collection law suit. At the end of the conversation, she happened to mention something about a debt settlement company. It turns out she has paid them over $10,000 over several years, and they have not settled a single account of hers. These predators are so good at scamming people that she still didn't realize how badly she had been taken.
The bad news is that there are a lot of these companies out there, doing a lot of marketing to vulnerable consumers. The companies tend to hide their identity and create multiple corporations to make it hard to find out who they even are and to discourage law suits against them. They typically require payment of their fee first, and also take a percentage of money saved in any settlements. They prey on working people.
The good news is that Ohio law protects consumers, outlawing the kind of payments these companies charge. But the law does not stop them. They are willing to break the law because they make so much money in the process. In some cases, a law suit against the debt settlement company is appropriate, to recover the money lost, including attorney fees and court costs. I have found that with a proper investigation into who took my client's money, most DSC's will settle the claims against them.
So, what should you do instead of signing up with one of these horrible predatory corporations? You may want to consult with a bankruptcy attorney. Many do not charge for the initial consultation, or may charge a small fee. (I'll make bankruptcy the topic of a future blog.) Another option is consulting with a legitimate, non-profit, credit counseling service. How do you tell the difference? The legitimate credit counseling services charge a very low fee (maybe $25/month), or are free.
I'm amazed at the scope of advertising these companies do on "legitimate" media. Don't fall for the scams.
Greg Reichenbach
Bluffton, Ohio
Greg@ReichenbachLaw.com
Further reading:
West Virginia attorney general
Texas attorney general
New York attorney general
Vermont attorney general
Illinois attorney general
Ohio attorney general asks the FTC for stronger regulation of DSC's
FTC to issue new rules for debt settlement companies
Sunday, July 25, 2010
Elizabeth Warren should head the new Bureau of Consumer Financial Protection
Update September 15, 2010: President Obama has named Prof. Warren as a "special adviser" to help set up the Bureau of Consumer Financial Protection:
Huffington Post story
The big banks are scared. They might actually be regulated. The new Bureau of Consumer Financial Protection has that potential, if it's headed by someone who (a) understands economics and the effects on ordinary people and (b) has the backbone to stand up to powerful interests. That person is Elizabeth Warren.
I have heard Professor Warren speak, and she has got to be one of the smartest people around when it comes to debt and economics. On top of that, she also has the ability to communicate clearly, and the moral backbone to stand up for what is right.
As a reminder, the banking industry – specifically subprime lending, combined with the drastic de-regulation begun in the 80's, is widely blamed for our current economic problems. So far, our approach to fixing things has been to give banks a bunch of money, with no strings attached. Not surprisingly, that has not worked.
Over the past several decades, the "regulators" in various administrations (Republican and Democrat alike) have tended to be industry lackies. That hasn't worked, because if the banking industry was trustworthy enough to police itself, then they wouldn't need to be regulated in the first place. Left unchecked, banks do what is best for the banks. We need the banks to do what is best for the country, and for regular people. The alternative is too costly, in terms of shattered lives, poverty, and health problems.
You would be amazed at how many people I've talked to who are sick because they work too much to take good care of themselves, and can't get medical care because their job doesn't provide insurance and they can't afford to pay for a doctor visit. That is a vicious catch-22 that should not happen anywhere, let alone in such a rich county as the USA.
We need to restore consumer protections that were stripped away, and re-regulate Wall Street. Elizabeth Warren is the woman for the job.
For more information, see:
http://en.wikipedia.org/wiki/Elizabeth_Warren
http://www.nytimes.com/2010/07/25/opinion/25sun3.html
http://www.nytimes.com/2008/10/24/business/economy/24panel.html
http://motherjones.com/politics/2008/05/foreclosure-phil
To take action:
http://act.boldprogressives.org/cms/sign/petition_warren_ads/?source=gwa_ews
And, for a funny but interesting, take on the issue:
Steven Colbert interviews Barney Frank
Huffington Post story
The big banks are scared. They might actually be regulated. The new Bureau of Consumer Financial Protection has that potential, if it's headed by someone who (a) understands economics and the effects on ordinary people and (b) has the backbone to stand up to powerful interests. That person is Elizabeth Warren.
I have heard Professor Warren speak, and she has got to be one of the smartest people around when it comes to debt and economics. On top of that, she also has the ability to communicate clearly, and the moral backbone to stand up for what is right.
As a reminder, the banking industry – specifically subprime lending, combined with the drastic de-regulation begun in the 80's, is widely blamed for our current economic problems. So far, our approach to fixing things has been to give banks a bunch of money, with no strings attached. Not surprisingly, that has not worked.
Over the past several decades, the "regulators" in various administrations (Republican and Democrat alike) have tended to be industry lackies. That hasn't worked, because if the banking industry was trustworthy enough to police itself, then they wouldn't need to be regulated in the first place. Left unchecked, banks do what is best for the banks. We need the banks to do what is best for the country, and for regular people. The alternative is too costly, in terms of shattered lives, poverty, and health problems.
You would be amazed at how many people I've talked to who are sick because they work too much to take good care of themselves, and can't get medical care because their job doesn't provide insurance and they can't afford to pay for a doctor visit. That is a vicious catch-22 that should not happen anywhere, let alone in such a rich county as the USA.
We need to restore consumer protections that were stripped away, and re-regulate Wall Street. Elizabeth Warren is the woman for the job.
For more information, see:
http://en.wikipedia.org/wiki/Elizabeth_Warren
http://www.nytimes.com/2010/07/25/opinion/25sun3.html
http://www.nytimes.com/2008/10/24/business/economy/24panel.html
http://motherjones.com/politics/2008/05/foreclosure-phil
To take action:
http://act.boldprogressives.org/cms/sign/petition_warren_ads/?source=gwa_ews
And, for a funny but interesting, take on the issue:
Steven Colbert interviews Barney Frank
Saturday, July 24, 2010
Introduction - What is consumer law?
Welcome to my consumer law blog. I want to start by describing what I think consumer law is. When someone has a dispute with a business about goods or services meant for personal, family or household use, that is a consumer law problem. Examples might be abusive debt collection or a used-car rip-off.
Why is it called "Consumer" law? I'll be honest -- I've never liked that term. It brings to mind the kind of over-consumption we tend to engage in in the United States, at least compared to many other places in the world. I think the reason the term came to be used is that consumer law looks at everyday transactions from the point of view of the person who buys (or consumes) something. Well, the term stuck, so I guess I'll use it too, since it is widely used among lawyers.
I want this blog to have some appeal to both lawyers and non-lawyers. So, I'm not going to use a lot of fancy legal terms and Latin phrases. But, I will occasionally use a little of each, to educate anyone who is interested.
Some of the things I'll post here:
Sincerely,
Greg Reichenbach
Bluffton, Ohio
Greg@ReichenbachLaw.com
Why is it called "Consumer" law? I'll be honest -- I've never liked that term. It brings to mind the kind of over-consumption we tend to engage in in the United States, at least compared to many other places in the world. I think the reason the term came to be used is that consumer law looks at everyday transactions from the point of view of the person who buys (or consumes) something. Well, the term stuck, so I guess I'll use it too, since it is widely used among lawyers.
I want this blog to have some appeal to both lawyers and non-lawyers. So, I'm not going to use a lot of fancy legal terms and Latin phrases. But, I will occasionally use a little of each, to educate anyone who is interested.
Some of the things I'll post here:
- News items
- Examples of consumer law cases - either my cases or significant cases affecting Ohioans
- Introductions to different consumer law topics
Sincerely,
Greg Reichenbach
Bluffton, Ohio
Greg@ReichenbachLaw.com
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