Consumer Law

Debt collection firm pays $2.5 million to settle FTC charges

Posted in Consumer Law, Misc, News

The Federal Trade Commission has been cracking down on debt settlement companies who prey on consumers while trying to collect old debt. Asset Acceptance, LLC is one of the nation’s largest collection companies and has agreed to pay $2.5 million to settle the charges brought by the FTC.

“Most consumers do not know their legal rights with respect to collection of old debts past the statute of limitations,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.

If you have ever paid any money to a company to reduce your debt, call the law offices of Luftman, Heck & Associates to see how we can help you get your money back.

Many people in today’s economy are finding it harder and harder to live life the old fashioned way. They rely on credit cards to fill in the gaps where their hard earned paychecks weren’t enough. After accumulating a fair amount of debt, consumers are looking for a way out and don’t know where to turn. Debt settlement companies promise to reduce your debt by working with the creditors to bargain a better deal. What you don’t know about many of these companies is that they are operating illegally in Ohio. Individuals that choose this route end up paying a large upfront fee and an almost unreasonable amount per month, but never receive any relief.

If you have ever paid any money to a debt settlement company to reduce your debts, we may be able to help you fight to get your money back. Call Luftman, Heck & Associates to speak with an attorney today at (614) 224-1500.

Read More: Federal Trade Commission

Richard Cordray expected to lead Consumer Financial Protection Bureau

Posted in Consumer Law, News

President Obama will announce today that Richard Cordray will be his choice over Elizabeth Warren to lead the new Consumer Financial Protection Bureau (CFPB).

Obama said in a statement “Richard Cordray has spent his career advocating for middle class families… and looking out for ordinary people in our financial system.” As Ohio’s Attorney General, Cordray made a strong impression as he fought mortgage lenders and servicing companies to protect the homeowners. Elizabeth Warren hand-picked Cordray to serve as the CFPB’s director of enforcement as he has always been a strong supporter of Warren while she stood up to Wall Street and created the Bureau.

The mission of this new government agency is to help American families make smart financial decisions and ultimately help eliminate the economic hardships that many people are facing every day.

Consumer Financial Protection Bureau May Not Protect Consumers Quite Yet

Posted in Consumer Law, Misc

Consumer Financial Protection Bureau (CFPB) was created under the Obama administration to protect consumers from problems relating to credit cards, mortgages and other financial products or services that may be difficult to decipher on their own. The mission of this new government agency is to help American families make smart financial decisions and ultimately help eliminate the economic hardships that many people are facing every day.

Elizabeth Warren, a Harvard law school professor, was selected by the President to run this agency until a suitable director is appointed. So far, she has made it her priority to help working-class citizens by creating new bills to send to Congress eliminating deceptive or abusive practices. The bureau is said to launch officially on July 21, 2011 but if a new director isn’t appointed by that time, it will limit the chance to succeed before it even begins.

Forty-four Senate Republicans wrote a letter to Obama stating that they will not confirm anyone for this position because it lacks accountability and gives too much power to a single person. Warren believes that re-structuring the agency will eliminate or delay the bureau and give more power to bankers and finance companies that swarm Wall Street.

The CFPB asks that Congress oppose H.R. 1121 and S.737 and give the bureau a chance to succeed before making changes to its structure.

More articles relating to this post:
Overview of the Key Provisions written by the Consumer Financial Protection Bureau

New York Times: Foes Revise Plan to Curb New Agency

Wall Street Journal: Consumer Agency Stymied by GOP

Attorneys Scott Florin and Jeremy Heck successful in appeal of deficient credit card judgment

Posted in Consumer Law

First Resolution Investment Corporation failed to provide appropriate evidence…

First Resolution Investment Corporation failed to provide appropriate evidence and the judgment rendered was overturned.

Attorneys Scott Florin and Jeremy Heck successfully appealed a judgment entered in the Franklin County Municipal Court. In the case, the plaintiff corporation filed suit against the debtor alleging that he had defaulted on his credit card agreement with a bank. The plaintiff corporation averred that it had purchased the obligation that the defendant owed to the bank and it sought from him $2,031.72 that it claimed was due on his account. The trial court granted summary judgment in the plaintiff’s favor.  The appellate court concluded that because the plaintiff had failed to provide any Civ.R. 56(C) evidence establishing the absence of a genuine issue of material fact and its entitlement to judgment as a matter of law, the trial court had erred in granting summary judgment. Further, the plaintiff had attached 18 monthly account statements to its motion for summary judgment. Also, the debtor conceded that if the plaintiff had attached the account statements to its complaint, it would have complied with Civ.R. 10(D)(1). Thus, the debtor’s receipt of the account statements alleviated any prejudice that he allegedly suffered by the denial of his motion for a more definite statement. Accordingly, the judgment was reversed.
Link to Decision – http://www.supremecourt.ohio.gov/rod/docs/pdf/10/2010/2010-ohio-4748.pdf
Short name: First Resolution Investment Corp. v. Griffith

Areas of practice: Appellate: Civil, Creditor/Debtor, Procedure

Court: Ohio Court of Appeals – Tenth Appellate District

Date decided: September 30, 2010

Docket number: 10AP-212

Citation: 2010-Ohio-4748