Monthly Archives: July 2012

In First, CFPB Charges Law Firm with Duping Homeowners

The Consumer Financial Protection Bureau has filed its first ever civil enforcement action in federal court, charging a Los Angeles law firm of duping distressed homeowners into paying high upfront fees with false promises of a loan modification.

The complaint (PDF), which was filed July 18 and unsealed July 23 in U.S. District Court for the Central District of California, accuses Chance Gordon and his firm, The Gordon Law Firm, of charging thousands of dollars in advance fees and then doing “little or nothing to assist consumers.” The agency secured an ex parte temporary restraining order against the firm at the time it filed the complaint.

Read on.

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Greece Runs Out Of Money. Again

The tragic Greek lament continues via Reuters:

[W]e are certainly on the brink, we did not receive the aid tranche we were supposed to and we have the pending issue of an ECB bond maturing on Aug. 20.”

 

Greece has narrowly dodged bankruptcy several times before, with the government carrying out a juggling act of holding off on paying some suppliers and issuing T-bills until the next tranche of aid from lenders arrives.

 

The assessment of Greece’s progress in meeting the terms of its bailout by EU/IMF inspectors, who are currently on a visit to Athens, is not expected until September.

 

Adding to the uncertainty, Greek political leaders have been wrangling over 11.5 billion euros of cuts that are crucial to appeasing the lenders.

 

CITIBANK DEBT COLLECTORS, SENTENCED TO PRISON FOR THEIR ROLE IN DEBTORS DEATH DURING INTERROGATION, GO INTO HIDING

Irzen Octa, an Indonesian businessman, died in a Citibank office under mysterious circumstances last March, while debt collectors were questioning him about money he owed on a Citibank credit card. Now, two of the three collectors convicted in Octa’s death are reportedly on the run from the law.

Arif Lukman and Henry Waslinton, who were each sentenced to five years in prison last month for their role in the March 2011 interrogation, have failed to answer a court summons for detention, according to the Jakarta Globe. On Wednesday, both men were declared fugitives.

Octa, who owed Citibank more than $11,000 at the time of his death, met with third-party collectors on March 28, 2011, in an attempt to negotiate a settlement. He was found dead in the Citibank office that afternoon. Following Octa’s death, there were conflicting reports as to the cause. Medical professionals have disagreed on whether hypertension played a role in Octa’s death, and whether he was physically assaulted before he died. Post-mortem reports from various doctors have given his cause of death as asphyxiation, brain hemorrhage and “blunt violence,” according to The Washington Post.

Rest here…

Submission Lowery Chicago NAACP Report on Foreclosures to the IL Supreme Court

This report is a must read if you are a homeowner facing foreclosure. You may find some interesting information that will help you to fight your foreclosure.

The meat grinder: When the debt-collection machine comes for its pound of flesh

On the 38th floor of a Minneapolis skyscraper,Spokane attorney Kirk Miller begins to interview a so-called “robo-signer.”

Miller, a young, tireless consumer law attorney, is after information about the robo-signer’s work at Midland Credit Management, an arm of Encore Capital. Every year, Encore buys billions of dollars in credit-card debts and then sets out to collect — filing hundreds of thousands of lawsuits against the debtors.

That’s where robo-signers, like the one Miller is deposing, come in.

The woman tells Miller she was paid $12.50 an hour to sign affidavits for those lawsuits. Those documents testify to the veracity of the debts owed and are used to garnish wages, empty bank accounts and repossess property — so their accuracy is essential.

But on busy days, the woman says, she would sign 300 such affidavits in an assembly-line-like process. In batches, she’d sign the documents, the person next to her would notarize them, and another would stuff them in envelopes to be mailed to out-of-state law firms. There, someone would print out a legal package, attach documentation, have a lawyer sign it and finally mail it to local courts like Spokane County Superior Court.

Read on.

Serious Fraud Office close to criminal charges over Libor rigging scandal

The Serious Fraud Office has moved a step closer to bringing criminal charges against individuals involved in rigging the key Libor interest rate after concluding that the law does cover the offences that led to Barclaysbeing hit by a £290m fine.

The SFO, which had announced a formal investigation into attempts to manipulate the rate on 6 July, said its investigation covered a number of financial institutions.

“The Director of the Serious Fraud Office, David Green QC, is satisfied that existing criminal offences are capable of covering conduct in relation to the alleged manipulation of Libor and related interest rates. The investigation, announced on 6 July, involves a number of financial institutions,” the SFO said.

Read on.

Bank of America, Barclays, Credit Suisse Sued Over Libor

Bank of America Corp., (BAC) Barclays Plc (BARC) and Credit Suisse Group AG (CSGN) were among the banks sued by an investor over alleged manipulation of the Libor benchmark interest rate.

The investor, 33-35 Green Pond Road Associates LLC, bought an interest rate swap with a floating rate tied to the U.S.- dollar Libor, it said in a complaint filed today in federal court in Manhattan. Green Pond Road seeks to represent a class of investors that bought U.S. dollar Libor-based derivatives beginning on Aug. 1, 2007.

Green Pond Road claims the banks illegally colluded to fix Libor, injuring investors in securities based on the rate. The suit seeks unspecified damages, which could be tripled under U.S. antitrust law.

Read on.