Daily Archives: August 21, 2013

Link

Wells Fargo Beats Suit Over Foreign Workers’ Visa Renewals

Wells Fargo Beats Suit Over Foreign Workers’ Visa Renewals

Law360, New York (August 20, 2013, 2:36 PM ET) — Wells Fargo & Co. beat a proposed class action accusing the company of refusing to renew its foreign workers’ visas to make them quit and avoid giving them severance pay, after a California federal judge on Monday found the bank had legitimate reasons for the policy.

Link

Bank of America Intern Dies After Reportedly Working Three Straight Days

Bank of America Intern Dies After Reportedly Working Three Straight Days

A Bank of America intern, Moritz Erhardt, was found dead this week, collapsed in his student apartment, after reportedly working three straight days in the company’s London investment-banking unit.

Erhardt’s death has been ruled unsuspicious by London police, and reports claim that he suffers from epilepsy. Still, the Internet was abuzz with frightening speculation that the summer intern, described as “popular” and “highly diligent” by his employer, had worked himself to death.

The news of Erhardt’s death comes at a time when the world is focused on the plight of the overworked, abused, and underpaid (or unpaid!) intern. So much attention has followed this free workforce that The Daily Beast has dubbed 2013 “the year of the intern.”

Reports on social media that the bright German exchange student at the University of Michigan worked grueling hours before his death have not been confirmed. Several interns corroborate the claim that banking interns are expected to work these types of never-ending shifts.

“We all work long hours but the guys working regularly until 3 or 4am are those in investment banking,” one intern told The Independent.

“He apparently pulled eight all-nighters in two weeks. They get you working crazy hours and maybe it was just too much for him in the end,” said another. 

Link

JP Morgan faces six separate DOJ investigations

JP Morgan faces six separate DOJ investigations

JPMorgan Chase (JPM) just can’t catch a break. The bank continues to linger in the limelight due to a slew of existing lawsuits and federal investigations that could force the mega-bank to absorb $6.8 billion in future legal losses once it plows through existing reserves. The Wall Street Journal has more on the bank’s troubles:

J.P. Morgan faces six separate investigations from the U.S. Justice Department, according to the filing, three of which hadn’t previously been disclosed.

The bank is “fully cooperating with regulators,” a spokeswoman said, referring to the SEC investigation. 

 
Link

Homeowner Win in Arizona Court of Appeals in Stauffer v First American Title Relating to ARS 33-420 and False Recordings in Foreclosure

Homeowner Win in Arizona Court of Appeals in Stauffer v First American Title Relating to ARS 33-420 and False Recordings in Foreclosure

1CA-CV12-0073 Stauffer v USB

Stauffer v. First American Title, Co., et. al. was the first case to go up to the Arizona Court of Appeals on the issue of whether Arizona’s false recording statute, A.R.S. 33-420 applies to the types of documents recorded in the typical non-judicial foreclosure, the Assignment of Beneficial Status in the Deed of Trust, the Notice of Trustee’s Sale, and the Substitution of Trustee.  The court held that these documents are encompassed by part A of the statute, which provides damages for the reocrding of a document containing false statements that “purport to create an interest or lien or encumbrance” in real property.

The court also held that the homeowner has standing as an “owner or beneficial title holder of the real property” to bring the claim.

Finally, the court said that section (b) providing an expeditious way to clear title was only applicable to liens, and that these documents aren’t liens.  In other words, you can’t rely on 33-420(B) to clear anything other than liens, you’ll have to sue under the broader title statute of A.R.S. 12-1101.

The case was remanded back to the trial court (where it had been dismissed on a 12(b)(6) motion) for further proceedings.

Link

You DIDN’T pay your Visa Card!!? We’re foreclosing on your house!!

You DIDN’T pay your Visa Card!!? We’re foreclosing on your house!!

An unpaid credit card bill worth 1,000 pounds is now enough for a UK lender to go to court, forcing debtors to sell their property. A recent regulation puts tens of thousands of British homeowners at risk of losing their houses.

Frankie Waller, an owner of a modest London dwelling, might well soon lose the place holding memories of the last 20 years of his life. September court hearings will decide if he can keep his home or will have to sell it to repay 6,000 pounds of credit card debts he has run up. 

Nobody asked me or twisted my arm to take out the credit. That’s my doing entirely”, Waller confessed to RT’s Polly Boyko. “But the word ‘unsecured’ was attached to it.” 

That key word – unsecured – is supposed to mean the loan is not attached to any of your assets. However, as of October 2012 the rules of the lending game have been changed by a government regulation, making it easier to turn unsecured debt into secured. That means failure to pay it off puts borrowers at risk of losing their homes. 

A creditor has been given the right to apply to court for a charging order, forcing the debtor to sell his property. As of April, accumulating a debt of just 1,000 pounds is enough for the ‘un’ prefix to disappear from your unsecured loan. 

Link

CFPB files suit against Morgan Drexen over debt-relief services

CFPB files suit against Morgan Drexen over debt-relief services

The Consumer Financial Protection Bureau filed a lawsuit against Morgan Drexen and its president and CEO Walter Ledda for allegedly deceiving customers by charging upfront illegal fees this week.

The CFPB alleges Morgan Drexen falsely claimed that it does not charge customers upfront fees for debt-relief services. Furthermore, the CFPB claims the firm wrongfully gave consumers the impression that working with Morgan Drexen would allow them to become debt free within a matter of months.

“This company took advantage of people who were struggling,” said CFPB Director Richard Cordray. 

He added, “The company charged consumers illegal fees and deceived them about the services provided. We will hold them accountable for these actions.”