Archive for the ‘Banks’ Category

Major Banks Are Still At It

Posted on: April 30th, 2012 by Editor in Banks

Banks Still Imposing Illegal Fees

The Consumer Financial Protection Bureau has begun to examine the collection practices of big credit card issuing banks. As with many off their business practices major banks push “the envelope” when dealing with consumers and especially when credit cards are involved. This fact is evidenced by recent attempts by big banks to impose fees for debit card use, “robo” signing of foreclosure documents, improper disclosure regarding real estate loans, etc.

According to a recent article by Joe Nocera published in The New York Times big banks, as reported in The American Banker, are using harsh debt collection practices to collect outstanding credit card accounts. According to Mr. Nocera major credit card issuing banks have not stopped using the “shoddy, often illegal practices” that caused the foreclosure crisis; they’re using them to collect credit card debt”. He goes on to point out that their, “practices hurt primarily the poor and the unsophisticated”.

The New York Times article goes on to say that that banks hire law firms to sue supposedly overdue borrowers, or sell the debt to third parties many times based on inaccurate or incorrect records. He says that “the banks are outsourcing their dirty work—and then washing their hands as the debt collectors harass and sue and make people miserable, often without proof that the debt is owed.”

The sad truth is that the American consumer can expect very little help from the Consumer Protection Bureau.

This agency, although well intentioned, is struggling with start-up pains and embroiled in politics from powerful interest and lobbying groups.

The best line of defense for a consumer who is a victim of these unethical practices is to get help from an attorney at law who is knowledgeable and experienced in protecting consumer’s rights which are included in the Fair Debt Collection Practices Act (FDCPA).

For more information contact Associated Attorneys, LLC by phone at 866-411-4693

Never Respond to Unsolicited Debt Settlement Inquiries

Posted on: April 24th, 2012 by Editor in Banks, Debt Relief by Lawyer

In recent times it is not unusual for us to receive inquiries from consumers who are experiencing financial difficulties who tell us that they have previously been contacted by debt settlement companies. These companies are trying to sell their “services” to the consumers. These contacts by the debt settlement companies are completely unsolicited. The contact may be by letter, phone call, or e-mail.

The question of course is how did the debt settlement company know that the consumer was having financial difficulties, and how did they get the consumer’s contact information?

Who is contacting?
Although there is some debt settlement companies who engage in this illegal practice most likely the real culprit is a “front” group who solicits potential debt relief customers and then sells the “lead” to a debt settlement company. They typically charge the debt settlement company from $10.00 to $40.00 per “lead”. Most groups, be they debt settlement companies or front groups, by this practice is most likely in violation of the telemarketing rules as promulgated by the Federal Trade Commission.

Consequently, their actions are not only unethical, they are illegal.

Where do they get your information?
When it comes to getting a consumer’s financial information and their contact information both the debt settlement companies and the “front” groups are very resourceful. There are two places where they get most of their leads. First, they search public records such as court documents to locate people who have been sued by credit card companies. Second, they access individual credit reports.

We find that almost without exception those who tell us that they contracted for debt settlement services with someone who contacted them without solicitation experienced a very bad and costly outcome. They were victims of an all too common “scam”.

How do you avoid being a victim?
First, you should be outraged that a debt settlement company or a “front” group would be obtaining your personal financial information without your consent. When they make contact with you make it very clear that you are outraged by their actions and that you not only don’t want to talk to them, you may well file a complaint with the Federal Trade Commission. Second, never contract with either of these entities to provide you debt settlement services.

Associated Attorneys, LLC does not attempt to access personal or financial information of anyone, nor does it ever make any unsolicited contact. More information can be obtained by contacting Associated Attorneys, LLC at 866-411-4693 (toll free).

Banks are Imposing More Fees

Posted on: February 20th, 2012 by Editor in Banks, News

More New Fees from Banks

Major banks and many regional banks are involved in a campaign to find revenue to replace what they thought would be a bonanza revenue generation source. This source was the monthly fee for debit card use. Banks underestimated the willingness of consumers to keep “taking it on the chin”. Consumers revolted and said “no” to the banks. A survey by Javelin Strategy and Research found that in the 4th quarter of 2011 more than 5.6 million consumers switched banks to smaller community banks or credit unions to avoid paying the debit card use fee.

Not to be daunted banks have now identified and are commencing to impose a series of new “fees”. According to some consumer groups banks have identified about 50 new fees that they can impose on customers. Some of these new fees include charges for paper statements, Internet account access, wire transfers, bill payment, iPhone deposits and account closing fees, to name a few. In addition to new fees banks are raising the dollar amount that they have been charging for traditional services such as account service charges, over-draft protection and fees, credit card use, etc. The new fees and additional dollar amount charges for traditional services which will soon be showing up as a debit item from a customer’s account will generate billions of dollars in new revenue for banks.

Banks individually and through their trade associations argue in Congress and elsewhere that they need these new fees and additional charges in order to survive. They point to new federal legislation imposing additional restrictions on banks as the reason they need new revenue.

They cite the regulations imposed by Dodd-Frank requiring additional disclosure mandates and other changes which they say increases their operating costs. They point directly to the Durbin Amendment imposed by Congress in 2011. This amendment reduced the debit card transaction fee on each individual debit card transaction that the banks charged retailers. This fee is called the “swipe fee”. Congress cut the amount of the fee in half. Rather than charge 42 cents for each transaction, banks can now only charge 21 cents. While banks opined that 42 cents per transaction was justified Congress determined that the 42 cent per transaction was far beyond the cost incurred by the banks.

Some in Congress argued that by charging 42 cents per transaction banks were once again “gouging” the consumer.

They point to the fact that eventually the costs is passed on to the consumer.

The debit card use fee debacle for the banks is evidence that the consumer can fight back against the abuses by banks. The consumer can fight back against the bank imposing new fees and charges. Consumers do this by moving their business from profit making banks to nonprofit credit unions.

For more information contact Associated Attorneys, LLC (866) 411-4693 or www.associatedAttorneys.com

About the Author:
Melvin R. Singleterry, a former Judge and former elected District Attorney is a licensed practicing attorney specializing in consumer debt law and consumer debt settlement

Banks May Be Over Playing their Hand

Posted on: May 24th, 2011 by Editor in Banks, News

It has been widely reported that many of the large banks are gearing up to start raising bank fees in an effort to off-set the decline in revenue and profits they are experiencing as a result of the recession and as the result of the limitations imposed by the Credit Card Act begin to take effect.

Banks are saying that they must raise fees due to the recent Federal Reserve decision to limit the amount banks can charge retailers to 12 cents rather than the 44 cents previously charged.

Some banks will now only give free checking if at least a $500 direct deposit is made monthly. It has been reported that Chase bank has already raised its monthly basic checking account fee from $10 to $12 per month. In order to avoid the fee a customer must maintain a minimum daily balance of $1,500. To get funds from a non-affiliated bank overseas the Chase customer will now have to pay a transaction ATM fee of $5 rather than the $3 previously charged.

Further reports indicate that Chase will charge more for outgoing domestic wire transfers to $30 from the previous $25. Online wire transfers for most customers will rise to $25. from $20. Moreover, for stop-payment request the fee will rise to $34 from $32 and online or telephone request will increase from $25 to $27. Instead of paying a fee of $10 when a customer deposits a check that is not paid due to insufficient funds the customer will not pay a fee of $12.

Bank of America will raise the monthly fee on its basic checking account from $8.95 to $12. They will be charging customers a $35 fee if they overdraw their account by less than $10.

It is going to be interesting to see how long the American consumer will stand still for banks continuing to “bleed” the each of us. Most Americans blame the large banks for the financial
meltdown experienced a couple of years ago. They resent very much banks receiving large bailouts after they made risky investments, committed fraudulent activity in the mortgage
markets, and are still at this time receiving Federal funds at little or no, rather than making loans available to consumers investing the loaned funs in U.S. Government securities.

This resentment by the American consumer is beginning to come to the surface. Take for instance the angry protestors that appeared to make their feeling felt at the recent
shareholders meetings at Chase and Well Fargo banks. Is it any wonder that consumer after consumer is now seeking debt negotiation and debt settlement on their bank issued credit
cards?

For more information call Associated Attorneys at (866) 411-4693 or contact Associatedattorneys.com.

Banks found Money “Lying on the Table”

Posted on: May 23rd, 2011 by Editor in Banks, News

In times past banks made their profits by making loans to customers at a reasonable rate of interest. Those times are long gone as banks now generate a substantial amount of their profits by charging customers “fees”. This was a revenue source that the banks either overlooked or chose not to impose until the mid 1970s. They realized that they were leaving too much money “lying on the table”.

At first the idea of charging customers “fees” for services was slow to catch on. Banks, especially local banks, were apprehensive to charge a customer a fee for something that traditionally had been part of the service that the bank provided. All that changed!

This new business model was developed due to the fact that banks realized they had a potential revenue source that not only would the bank customers would not protest too loudly; the banks would reap a bonanza in theretofore unrealized profits.

As the number of local banks declined in favor of a greater number of large national banks, customer’s choices declined. There were simply less local banks from which to choose. National Banks started to dominate the market. These national Banks became less personal, less a part of the communities and more willing to charge fees for their services. It got to the point where even local banks started charging these fees. Their justification for this change in their business model was. “All of the other banks are doing it.”

Banks now generate billions and billions of dollars profit from fees imposed on their customers. As they generate these billions in this fashion they are less inclined to make loans. It is not a secret that securing a bank loan even by one even with pristine credit is very difficult. They are not making these loans even though they have and are still getting billions and billions of dollars from the Federal government at little or no interest.

Some of the fees banks now charge for such services and products as follows:

1. monthly bank account fee
2. overdraft fees
3. stop payment fees
4. national wire transfers
5. international wire transfers
6. purchase of cashier’s check
7. on line use fees
8. debt card purchase fees
9. fees for a late loan payment
10. various and sundry fees related to obtaining a loan
11. Some banks even charge for the “privilege” of talking to a cashier at the bank window.

About the best we as consumers can hope for is that at some point in the future Congress and the Federal Reserve will see fit to impose stricter regulations on the activities of banks. Because of the fast sums that the financial industry provides elected officials and the efforts by lobbyist on their behalf, perhaps the best that we as consumers is can hope for is that “it doesn’t get any worse”.

For more information call Associated Attorneys at (866) 411-4693 or contact associatedattorneys.com.

About the Author: Melvin R. Singleterry, licensed practicing attorney, former Judge and former elected District Attorney, specializing in consumer debt settlement and consumer debt relief.

Credit Card Issuing Banks are Hypocrites.

Posted on: May 23rd, 2011 by Editor in Banks, Credit Card Debt Relief, News

Banks are Able to Borrow Money with NO Interest

Because of their risky business practices, driven by their greed, many large financial institutions had to come to the American tax payer to ask for a bailout. The taxpayers obliged and banks received billions in bail out money. This money was given at little or no interest. They are still receiving substantial funds with little or no interest. With this money the banks are still making very risky transactions and still making substantial profits. Most likely at some point, in the not so distant future, the banks will be back to the U.S. taxpayer with their hands out.

Banks are able to borrow from the federal government for almost no interest. They then invest in risky financial instruments and, in some instances, loan it back to the American consumer in the form of credit card loans. Of course these loans are at substantial interest, fees, and charges.

In negotiating and attempting to settle credit card debt for our clients, it has been interesting to note the arrogance and since of self entitlement exhibited by credit card issuing banks.

Usually the representative for the credit card company will ask something like, “Why did your client get behind on their credit card payments? I tell them the answer is simple. (It is also true) “My client was able to make the minimum payment each month and in so doing depleted their savings etc., but due to the fact the credit card companies kept raising the rates of interest and tacking on late and over limit fees, the client could no longer service the debt”. They all respond as if they are reading from a script by saying , “All of that was set out in the agreement they signed; if they didn’t want to abide by the agreement and make payments as they agreed they should not have signed it”. I usually respond by telling the representative something to the effect that, “unlike the credit card bank which you represent my client did not have the U.S. taxpayers to bail them out. The credit card bank has some fault in what has happened to my client”. Typically, the attitude of the representation softens as they know that what I am saying is true. They know that the credit card issuing banks (their client) has been able to get help from the taxpayers, yet they are not willing to help the consumer. They see the hypocrisy.

For me negotiating and settling credit card debt for clients, who in many instances have been victimized by the abusive practices of the credit card issuing banks, is extremely gratifying. United States financial institutions have the ability through lobbying efforts to get legislation passed that advances and protects their interest. The same is not true for the consumer. In most instances we as debt settlement attorneys are the only source of help for our clients in standing up to the financial institutions.

For more information call Associated Attorneys at (866) 411-4693 or contact associatedattorneys.com.

About the Author: Melvin R. Singleterry, licensed practicing attorney, former Judge and former

elected District Attorney, specializing in consumer debt settlement and consumer debt relief.

Debt Settlement Jargon 101

Posted on: March 18th, 2011 by Editor in Attorney Debt Relief, Banks, Debt Settlement, News

Debt Settlement, as part of the financial industry, use a massive array of jargon. You can’t be expected to recognise all these technical terms, and some of them are quite important – so here’s a quick guide, in alphabetical order.

Affinity card. This is a Debt Settlement that gives a certain amount to a charity of your choice, depending on how much you spend. It is generally best to avoid any charity that wants you to sign up for such a card – don’t let guilt lead you to a high interest rate.

APR. Annual Percentage Rate. This is your overall interest rate, calculated yearly, and given as a percentage of your balance.

ATM. Automated Teller Machine. A cash machine. It will give you money when you put your credit card in, but will probably charge an extra fee.

Balance transfer. This is when you transfer your debt (‘balance’) from one credit card to another. The usual reason for this is to try and keep as much debt as possible on a lower-interest card.

Credit limit. Your credit limit is the maximum amount you can spend or withdraw from your card. Going over your credit limit will result in your card no longer being accepted, and you being charged an over-limit fee.

Fixed rate. A fixed rate card is one where you are given a rate when you sign up for the card and that rate, at least in theory, stays the same for the whole time you have the Debt Settlement. In practice, though, interest rates can be changed for almost any reason.

Grace period. Your grace period is the amount of time between when you spend money and when you start paying interest on it. Good cards can have a grace period of up to two months – bad ones might not have one at all.

Minimum payment. A minimum payment is the absolute lowest amount you can pay back to the Debt Settlement company each month – you should pay more, but you don’t have to. Minimum payments are usually around 2% of your balance.

Sub-prime. This is a phrase used in the industry to describe customers who are a bad Debt Settlement risk, but are seen as worth lending to anyway. If you are identified as sub-prime, you’ll start getting offers for loans secured on your property – they know that if you can’t pay, they’ll get their money anyway.

Teaser rate. A ‘special offer’ low rate, usually written in enormous letters. You will see many offers with “LOW 4.9% APR” in inch-high letters, followed by “for first six months, 21.9% thereafter” in microscopic ones. Teaser offers can sometimes be worth taking, but not if they tie you in for longer than the period of the offer.

Variable rate. This is an interest rate that is worked out by adding a certain amount to the current base rate. Taking this option will allow your Debt Settlement to be affected by changes in national interest rates – a good idea if you think they might go down, and a bad one if they’re on the way up.