Published on March 1, 2010 by
Robert A. Kraft
The Obama administration is no longer insisting on the creation of a stand-alone consumer protection agency as a central element of the plan to remake regulation of the financial system, according to an article in the Washington Post. The article is lengthy, but interesting and important. Here are the opening paragraphs:
In hopes of quick congressional [...]
Published on February 22, 2010 by
Robert A. Kraft
As many people know, today is the effective date of the largest section of the new federal law regarding credit cards, and especially the parts governing what the credit card companies can do and say. This excellent page of official information is from the government Web site of the Federal Reserve:
The Federal Reserve’s new rules for [...]
Published on December 22, 2009 by
Kathleen Munden
As many of you in the Dallas area may have seen lately, a company called “FinallyFast” is heavily advertising on television. Their product is a program that they promise will speed up your computer by clearing out the junk files that accumulate on computers over time.
You would think that as a bankruptcy lawyer, I would [...]
Published on December 10, 2009 by
Robert A. Kraft
As Dallas bankruptcy lawyers we see far too many clients who have gotten into financial trouble by misusing their credit cards. Pamela Yip, the personal finance columnist for the Dallas Morning News had an excellent article recently on the hazards of using credit cards for holiday shopping. The gist of the article is that there [...]
Published on November 6, 2009 by
Kathleen Munden
Home foreclosure is one of the biggest fears our Dallas and Fort Worth bankruptcy clients face. Potential foreclosure is often the triggering factor in causing people to contact a Dallas bankruptcy attorney. Now the federal government has taken a small step forward in helping homeowners attempt to avoid foreclosure.
In a bid to avoid an overload [...]
Published on October 13, 2009 by
Kathleen Munden
According to the National Association of Attorneys General, the top three topics for consumer complaints to state attorney general offices are debt collection, auto sales, and home repair/construction. Complaints regarding credit cards tied for fourth place with complaints regarding goods and services provided over the internet.
Complaints concerning predatory lending and mortgage practices were sixth, with [...]
Published on October 9, 2009 by
Kathleen Munden
Traditionally, utility service has been extended on credit, remained connected until a serious delinquency occurred, and would not be disconnected during severe weather or where elderly or sick individuals were in the household. Pre-paid meters are now being introduced in several states, including Texas, and require cash up front to obtain and maintain service. When [...]
Published on October 6, 2009 by
Kathleen Munden
Amherst Securities Group analysts predict that the crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market. The “huge shadow inventory” reflects mortgages already being foreclosed upon or now delinquent and likely to be, which compares to 1.27 [...]
Published on September 3, 2009 by
Kathleen Munden
Since February 2009, default and foreclosure rates on option adjustable rate mortgages have passed those of subprime mortgages, which led the initial wave of foreclosures. Option ARMS accounted for $750 billion in mortgages between 2004 and 2007, and they remain at risk, especially because many are not eligible for refinancing.
About one-third of option ARMS are [...]
Published on August 31, 2009 by
Kathleen Munden
The Transportation Department states that the Cash For Clunkers program succeeded in putting 690,114 more fuel-efficient vehicles on the nation’s roads. The entire $3 billion dedicated to the program was spent in an effort to retire older gas-guzzlers and stimulate vehicle sales.
One auto analyst called the program a success, after his research showed that [...]
Published on August 26, 2009 by
Kathleen Munden
The Wall Street Journal has reported that homeowners who have fallen behind on their mortgages are much less likely to catch up again than in previous years. The report from Fitch Ratings focused on mortgages that were packaged into securities for sale to investors, and excluded loans that were guaranteed by government-backed agencies and those [...]
Published on July 28, 2009 by
Kathleen Munden
On May 22, 2009, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure Act. As noted in our blog article on July 28, 2009, certain provisions of that act go into effect in 2010 concerning the disclosures that must be made on credit card statements. Other provisions that regulate how credit [...]
Published on July 24, 2009 by
Robert A. Kraft
In a blog at Lawyers USA, Sylvia Hsieh wrote, “In a stunning turn of events, the kingpin of consumer debt arbitration, the National Arbitration Forum, has been knocked out of the consumer debt business amidst allegations of consumer fraud, throwing into jeopardy hundreds of thousands of arbitration awards.” The ink “was barely dry on the [...]
Published on July 23, 2009 by
Robert A. Kraft
The Wall Street Journal reports Democrats “are stepping up the fight” over the proposed Consumer Financial Protection Agency “amid evidence that business groups are making headway in their campaign against the proposal.” Top White House officials and congressional Democrats “pressed their case” for the new agency on Wednesday, “hoping to refocus the debate on the [...]
Published on July 19, 2009 by
Kathleen Munden
Even though Congress passed sweeping credit card reform legislation this month, it does not go into effect for almost a year. That gives credit card companies plenty of time to devise new methods for squeezing profits out of consumers while they still have free rein.
For instance, JP Morgan Chase recently raised minimum payments on many [...]
Published on July 14, 2009 by
Kathleen Munden
The Attorney General is the official in the State of Texas who is responsible for protecting consumers and businesses by enforcing the Deceptive Trade Practices Act and other consumer and business protection legislation. The website of the Office of the Attorney General contains a wealth of information for consumers, along with complaint forms, hotline numbers, [...]
Published on July 6, 2009 by
Kathleen Munden
Banking lobbyists are already working to curb or eliminate the Consumer Financial Protection Agency proposed by President Obama. The Agency could be empowered to curtail or ban a host of lucrative bank practices, such as ballooning mortgages, excessive credit card interest, and surprise overdraft fees.
The Associated Press reports that the Obama administration believes such safeguards [...]
Published on June 23, 2009 by
Robert A. Kraft
The House and Senate have each passed bills providing that any current lease survives a foreclosure unless the new owner intends to live in the property. Currently, in many states, a landlord has no obligation to notify tenants of pending foreclosure actions, and a renter’s lease becomes void the moment a foreclosure sale is completed. [...]
Published on June 17, 2009 by
Robert A. Kraft
McClatchy news bureau reported, “The Obama administration is proposing the broadest changes in financial regulation since the Great Depression, calling for the elimination of some bank regulators and giving the Treasury Department and Federal Reserve vast new authority.” Among the changes, the administration “will propose creating a special commission that would regulate consumer credit, watching [...]
Published on June 12, 2009 by
Robert A. Kraft
Today’s Washington Post has a rather frightening article about the effect, to date, of the recession on U.S. consumers. Here are the opening paragraphs of the story:
The brute force of the recession earlier this year turned back the clock on Americans’ personal wealth to 2004 and wiped out a staggering $1.3 trillion as home values [...]