Thomas R. Breeden, P.C.Thomas R. Breeden, P.C.2024-01-29T19:21:32Zhttps://www.tbreedenlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1603831/2022/01/cropped-TBreeden-site-icon-32x32.pngOn Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=490882024-01-07T05:16:39Z2024-01-07T05:16:39Zerroneously mismerged credit report.
Merged reports in the lending sector
Lenders, especially mortgage lenders, may request three-bureau reports that combine potential borrowers’ credit information from the three major credit bureaus: Experian, Equifax and TransUnion. Each bureau may have different information about a consumer and combining them into one merged report may be more comprehensive and informative to a lender making a decision about creditworthiness.
Third-party firms normally create merged reports available to lenders (usually mortgage lenders) for purchase.
Mismerging of credit information of two different people
Unfortunately, sometimes a glitch occurs in which the report creator mistakenly merges the information belonging to two different people. This can make a person’s credit score look terrible when it is not, but the person with whom they have been mismerged in the report may have a dismal credit history. Mismerged information can make credit unreachable for the consumer inheriting the problematic financial data of the other. False information about a person’s financial health can also harm their reputation in a way that could cause long-term harm.
Mismerging may be more likely if two parties have the same or similar Social Security numbers (SSNs) or names, reside in the same place or are related. Errors on a credit report may not only impact the perceived creditworthiness of the consumer, but also harm chances of employment or of obtaining a governmental security clearance.
Legal representation is a smart option
Any Virginian who suspects that their credit report data may be mixed with that of another consumer or that it otherwise contains mistaken or false information should speak with a skilled consumer protection lawyer. An attorney can work to have the reports corrected and erroneous information transmitted to third parties revised and reevaluated. Legal counsel can also assist the consumer in recovery of money damages for harm flowing from the errors. If requests or negotiation do not resolve these issues, the lawyer can advise the consumer about potential lawsuits.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=490842023-08-09T20:31:01Z2023-08-09T20:31:01Zadopting an elaborate settlement agreement between government regulators and PRA for allegedly engaging in unlawful, deceptive actions in their debt collection processes. While PRA has not admitted or denied any wrongdoing, the agreement does require them to provide redress to a group of consumers alleging the company mistreated them by not adhering to federal debt collection laws.
PRA also agreed to future remedial measures and to specific adherence to the law in its ongoing interactions with alleged debtors.
The 2015 allegations
The 2023 stipulation has roots in a similar 2015 dispute between PRA and the Consumer Financial Protection Bureau (CFPB). The CFPB is the federal government agency responsible for enforcing laws and regulations that protect people from abusive and illegal debt collection practices.
In 2015 CFPB accused PRA of violating the Consumer Financial Protection Act of 2010 (CFPA) and the Fair Debt Collection Practices Act (FDCPA). The agency found that “Portfolio Recovery Associates bought debts that were potentially inaccurate, lacking documentation, or unenforceable. Without verifying the debt [PRA] collected payments by pressuring consumers with false statements and churning out lawsuits using robo-signed court documents.”
At that time, the parties stipulated to a lengthy, detailed consent order pursuant to which PRA agreed, without admitting or denying deceptive practices, to take certain actions, pay a large penalty and issue refunds to involved consumers.
PRA committed to many remedial actions, including ceasing collection efforts on certain debts, stopping the sale of questionable debt to third parties, releasing judgments against debtors from lawsuits filed after their deadlines, refraining from collection actions such as filing lawsuits on unsubstantiated debts, providing required information and documentation to consumers, adhering to legal practices concerning expired debts and more.
The 2023 stipulated order
The new stipulated judgment addresses CFPB allegations that PRA violated the 2015 agreement and has continued to violate federal consumer protection laws. The CFPB director commented that the company was still engaging in “intimidation, deception and illegal … tactics” during attempts to collect questionable debt, according to Reuters.
The 2023 order requires PRA to pay $24 million in consumer compensation and a fine that will go to the CFPB victim relief fund. In a news release, PRA Group (the parent of PRA) noted that the $15 million going to impacted debtors “represent[s] less than one-tenth of 1% of PRA’s active accounts.” Even if the remedial payments are affordable to PRA, certainly the relief will be helpful to those debtors who were allegedly taken advantage of through illegal debt-collection practices.
Anyone being targeted with abusive collection practices should seek advice and counsel of an experienced attorney to understand what legal remedies may be available to them.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=490792023-05-13T16:00:10Z2023-05-13T16:00:10ZWhat is the purpose of the FDCPA?
The FDCPA is the federal consumer-protection law that regulates third-party consumer debt collectors to prevent abusive collection practices. In addition to prohibiting collection attempts of stale debts, it also provides other consumer protections such as:
Requiring that debt collectors identify themselves as such when contacting debtors
Regulating the hours within which collectors can contact debtors
Forbidding threats, intimidation, lies, abusive language and similar behavior toward debtors to scare or pressure them
Regulating misrepresentations about the details or status of debts
Banning false threats of legal action against debtors or of arrest or criminal liability for debts
Requiring debt collectors to stop contacting debtors at work when the debtors make that request
Charging debtors with unauthorized, undisclosed fees
Requiring third-party debt collectors to tell targeted debtors about their right to dispute debts
Banning collectors from contacting debtors after debtors have officially requested the collection activity cease
And other protections
What does the Act say about stale debts?
The Act defines a “debt collector” as a party who “regularly collects or attempts to collect, directly or indirectly, [consumer] debts owed or due or asserted to be owed or due another.”
In the new Advisory Opinion, the CFPB affirms that the FDCPA bans third-party debt collectors from “suing or threatening to sue to collect a time-barred debt.” This prohibition applies “even if the debt collector neither knows nor should know that the debt is time barred.” In other words, a debt collector who tries to collect a time-barred (stale or expired) debt is “strictly liable” under the Act even if they did not know it was stale.
A “time-barred debt” means that its statute of limitations – or deadline for filing a lawsuit to enforce or collect it – has expired. State law usually establishes the statute of limitations for different classes of legal claims. On a basic level, the policy behind statute of limitations is that it is not desirable for parties to have lifelong liability for their actions, that there should be closure and that at some point the wronged party needs to either file a lawsuit or forfeit their right to do so.
Legal counsel advisable
The concept of a statute of limitations is legally complex, so any Virginian facing issues involving potentially stale debt should seek the advice and guidance of an experienced consumer lawyer. For example, it is not always clear when the statute of limitations begins to run, if something has caused it to retrigger or if the debtor could have unknowingly revived the debt.
An attorney can also assist with any issue related to the FDCPA’s debtor-protection rules or illegal third-party, debt-collector actions.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=490692023-03-20T13:27:13Z2023-03-04T02:33:09Zan identity theft after the initial fraudulent transactions begins when the thief fails to honor any of the debt incurred in your name – or the bills come to you for liability you never shouldered. Unknowing merchants, banks and other defrauded creditors then send negative credit reporting to the three major credit bureaus (Equifax, Experian and TransUnion) for failed debt in your name – and suddenly your credit score plummets. A low score can impact your ability to obtain credit, get a job, get approval for financial aid or rent an apartment.
Fortunately, you have a legal right to have fraudulent or false data removed from your credit reports through a process called blocking.
Credit report errors often stem from identity theft
When you discover that someone has stolen or is using your identity, file a police report and submit an online report of the theft to the Federal Trade Commission (FTC) at IdentityTheft.gov. This FTC page also contains tips for resolving related issues such as closing accounts the thief is exploiting; alerting your banks, creditors and lenders; closing accounts the thief opened in your name; and others.
A consumer protection attorney can investigate your identity theft problems and advise you about and assist you with solutions.
As it concerns rectifying your credit score and correcting errors on your credit reports, these steps can be crucially important, according to the FTC:
Place a one-year fraud alert through one of the credit bureaus so that an attempt to open a new account in your name will require the creditor to verify that it is actually you making the application.
Be diligent about reviewing your credit reports for evidence of fraud and take steps for correction. The FTC reports at the above link that consumers can check their reports at no cost weekly through 2023.
Notify each of the three credit bureaus of fraudulent information on your reports because of wrongful use of your identity and request that they block it.
Investigate whether an extended (seven year) fraud alert is appropriate that would require a creditor contact you before opening a credit account with your identifying information.
Consider an ongoing credit freeze during which you would limit third parties from viewing your credit report.
It will take time and effort to remove the tarnish from your good name and recover from the identity theft, but an experienced lawyer can educate and guide you at every step, especially if you encounter pushback from consumer reporting agencies, collectors, creditors and others.
]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=490642022-12-15T23:32:51Z2022-12-15T23:32:51Zmold problems in a brand-new home, they should take quick steps to contain and remove the damage as well as address any related medical problems immediately. In severe cases, the occupant may need to vacate the premises.
Legal solutions
Legal remedies are normally available under these circumstances, but they vary with the circumstances and can be complex. Talk to an experienced Virginia consumer protection lawyer as soon as possible to get advice and guidance. An attorney can help the homeowner meet deadlines for potential claims or lawsuits and seek financial compensation for wrongful losses.
Possible claims a homeowner may have include:
Breach of warranty
Breach of contract
Negligence
Negligence per se (when the contractor broke a law while acting negligently)
Infliction of emotional distress
Fraud
And others
Legal counsel will likely launch an investigation, consult with construction and mold experts and perform research to determine all the ways in which the homeowner has been harmed, so that in any lawsuit the homeowner asks for recovery for all past, present and future harm – damage to real estate and personal property, medical costs, lost wages, costs for repair and remediation, expenses of having to live elsewhere during remediation, losses if the home is uninhabitable and not reparable, emotional distress and others.
These cases can be legally complex. For example, Virginia courts have rules for when a plaintiff can bring both a breach of contract claim and a tort claim (claim for harm that is outside the broken contract) in the same house mold case. An experienced lawyer can carefully analyze the facts and law in this regard to protect the homeowner’s legal rights to recovery, whether that is through a negotiated settlement or a lawsuit
Harm can be to property and to people
That mold can be toxic and dangerous is common knowledge. Multiple types of the fungus can grow in homes, often hidden in walls or behind wallpaper but still giving off spores that people can unknowingly breath.
Mold exposure can cause allergic reactions for those with mold allergies and similar problems even without the allergy. More seriously, mold exposure can worsen asthma, create toxins in the body, irritate mucus membranes and lungs and more. Sometimes effects may be lifelong, so prompt medical attention is crucial.
The Virginia Department of Health provides information about indoor mold. (This web page also links to other informative websites like the EPA.)
Do not assume that nothing can be done – legal options are available. Talk to a lawyer about yours.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=489532022-08-16T13:16:29Z2022-08-16T13:16:29Zan advisory opinion on this topic called “Fair Credit Reporting; Permissible Purposes for Furnishing, Using, and Obtaining Consumer Reports.” The opinion takes a close look at the Fair Credit Reporting Act’s (FCRA’s) requirement that consumer reporting agencies (CRAs) may only release consumer reports to users for “permissible purposes” that are “consumer specific.”
According to the Bureau’s website, its advisory opinions are meant to “assist regulated entities to better understand their legal and regulatory obligations through advisory opinions.” These opinions are “interpretive rules issued to resolve regulatory uncertainty.”
This opinion reflects FCRA’s focus on privacy since consumer reports may include the “credit, criminal, employment, and rental histories” of consumers. This kind of information in the wrong hands puts a consumer at elevated risk of identity theft and “invasion of … privacy, as well as reputational, emotional, physical, and economic harms.”
Guidance for consumer reporting agencies
Federal law broadly defines “consumer reporting agency.” In addition to the big three (Equifax, TransUnion and Experian), the FCRA considers other entities that provide similar information to fall within the definition.
When a CRA releases a consumer report, it must have reason to believe that the requesting user has a permissible purpose for the information. FCRA permits release of a consumer report to further any of four specific purposes:
In response to a consumer’s written request
For credit purposes
For employment purposes
For insurance purposes
A CRA may provide a consumer report only if it reasonably believes the document contains information restricted to the specific person who is the subject of the request. For example, it would violate the law for a CRA to release multiple reports with the same consumer name after using “insufficient identifiers in matching procedures, such as name-only matching.”
In this example, some of the reports would include information about people other than the exact consumer who was the subject of the request. There would be no permissible purpose for using those “extra” reports and it would violate the privacy of those who were not the subject of the report request. Requests and releases must be consumer specific.
Finally, a consumer reporting agency cannot use disclaimers in a situation like this to escape its legal responsibility to use sufficient identifying procedures to accurately match a report to the correct consumer.
Guidance for entities requesting consumer reports
On the other side, FCRA also requires anyone requesting or using a consumer report to only do so with a permissible purpose under the Act. A requesting entity must certify that it will use it only for one of the permitted purposes.
The Act also requires that the requesting party have a “legitimate business need for the information … in connection with a business transaction that is initiated by the consumer or to review an account to determine whether the consumer continues to meet the terms of the account.”
Takeaways
Both the CFPB and the Federal Trade Commission (FTC) can bring enforcement actions for violations of permissible-purpose limitations. An attorney can advise a consumer whether they have legal remedies under federal or state laws through agencies or in court.
Anyone who believes that a CRA may have wrongly released their consumer report to a third party or that a third party requested or used their report without a permissible purpose should seek the guidance of an experienced consumer protection lawyer. Much may be at stake, including potential intrusion into privacy and identity theft.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=487252022-07-08T00:59:26Z2022-07-08T00:59:26ZThe debt, the lien, the auction and the deficiency
When a consumer purchases (or leases) a vehicle, they often finance part or all of it with a loan. The lender in turn receives a lien or security interest on the title of the car or truck, which means that the vehicle becomes collateral for the loan. As a result, if the borrower misses payments, the bank normally may physically repossess (take back) the car so as not to suffer a financial loss.
Normally lenders sell repossessed vehicles at auction and apply the sales proceeds to pay down the loan. If the sale brings in a higher amount than what is due, the bank must return the overage to the borrower. If the auction sales price is not enough to cover the balance due on the auto loan (plus potentially its repossession expenses), the financing company can sue the consumer for the difference – called a deficiency.
Lender’s legal obligations
The procedural requirements for a financing company or their agent undertaking Virginia vehicle repossession include:
The lender may not remove a vehicle from a locked garage.
After the repossession, at least 10 days before the intended sale date, they must give specific written notice that the loan is in default and of the right to cure, meaning that the consumer has a specific amount of time to pay off the loan (or, at the lender’s option, to bring the loan current). get the car back. This notice must also include the total amount due on the loan, including interest and reasonable costs of repossession and sale, and the date and location that the auction will occur, or if it is to be sold at a private sale (i.e., on a dealer’s lot), it must advise the date after which the sale will occur. Again, the consumer has the chance to redeem the car (buy it) by paying the total amount due up to the time of sale.
The lender may not sell the vehicle before the sale date in the notice.
The bank must sell the vehicle in a “commercially reasonable manner.”
Consumer remedies after repossession
Just because the bank seized the vehicle for nonpayment does not mean that the matter is closed. There may still be an outstanding loan balance. If the bank did not comply with its responsibilities under the law in the repossession, it may have extinguished its right to any deficiency, depending on the situation. The consumer may have the right not only to challenge any deficiency, but also to sue the lender for damages equal to 10% of the amount financed plus finance charges, as well as any actual damages incurred.
Key takeaway: Seek legal advice as early as possible
When facing car loan delinquency and possible repossession, Virginians should seek legal counsel to understand their options – but even if repossession has passed, the borrower may still face a deficiency claim or may have claims against the lender, so attorney guidance is still wise. If the repossession has not occurred, a lawyer may be able to help negotiate a settlement or alternate arrangement with the lender that would allow the borrower to keep the car, or refinance might be another option. If the refinance has already occurred, a lawyer can evaluate whether the lender violated any laws in the repossession and sale process, and whether the consumer has claims against the lender for those violations.
A Virginia consumer law attorney can also assess whether there are deficiency defenses and other issues with the repossession. For example, did the finance company violate a state or federal banking or consumer protection law? Did the bank violate any terms of the loan agreement? Did it provide an improper notice of the post repossession rights, or otherwise conduct the sale in a commercially unreasonable manner? Did they have the right to repossess the vehicle to begin with?
An experienced consumer vehicle rights attorney can help answer these questions.
]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=489542022-07-05T23:20:54Z2022-07-05T23:20:54Zdestroyed credit ratings. Carnegie Mellon University researchers speculate that children are 51 times more likely to be victims of identity theft than adults. Javelin, a research company, cites that one out of 50 or 1.25 million deals with the aftermath of poor or destroyed credit.
Attempting to fix the problem will take longer than identity theft from an adult, resulting in significant costs of close to $400, not accounting for out-of-pocket charges. Even more sinister is the likelihood that child identity theft victims likely have personal or even familial relationships with the perpetrator.
Parents can proactively protect birth certificates, Social Security numbers, and insurance cards as essential identity documents. Also, they should push back on requests for foundational information by activity organizations or after-school care and leave blank spaces where that data would usually go.
For parents, protecting children comes first, whether it’s a school bully or someone they know who is using their information for nefarious purposes.
]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=489552022-06-21T14:23:56Z2022-06-21T14:23:56ZCommon dealership strategies
Attracting customers to show up to their showrooms is sometimes a bait and switch scenario. Most of their prospective customers simply can’t afford to pay in full. Dealers know this all too well and advertise financing options that promise financing with no money at the time of purchase. While that may seem to be a smart and affordable price initially, over time, it costs the consumer more than the “asking price.”
Another common lure is the “no money up front” and “zero percent financing.” In the end, many customers end up paying beyond the purchase price. Reviewing loan documents with attention to detail will help uncover the “capitalized cost,” also known as the sum total of all the payments over time.
Dealerships are also fond of targeting people with poor or no credit. Their strategy is to put the customer in a longer payment period with significantly higher interest rates. The fine print of a contract may also reveal penalty fees for early repayment.
“Buyer beware” may be an oft-used phrase. However, it is paramount for those interested in purchasing a car. Consumers taking a more thorough approach to buy a motor vehicle ensures they get what they pay for. For many without the luxury of telecommuting, having a reliable car or truck keeps them at their place of employment, earning the money necessary to pay for a vehicle.]]>On Behalf of Thomas R. Breeden, P.C.https://www.tbreedenlaw.com/?p=489562022-06-13T00:27:59Z2022-06-13T00:27:59Zseparate homeowners from their property and any available money. Their job is to go online and identify owners of houses in foreclosure. Some place ads promising miracles. Others make direct calls or leave a note on the front door of their potential victims. They make lofty promises of preserving residences and credit scores, if not provide them with a bit of cash.
A so-called fresh start is anything but
Those who take the bait meet with the scammers who offer not-so-sage advice on the next steps. They demand zero contact with a lender or attorney, offering to handle all aspects of "rescuing" their home. In reality, they are cutting a vital cord that could help the homeowner find legitimate solutions.
Immediate profits are the sole objective. They charge fees, claiming the "convenience" of a lump sum or monthly payments. They encourage monetary sources that include the money that could go directly to the mortgage company. They wrongly claim they will pass on the payments and negotiate a settlement to keep them in their homes.
Scams take many forms and include:
Loan modifications – For a fee, the scammer guarantees a modified interest rate. The moment that money changes hands is the moment that the scammer vanishes.
Shell game – While claiming to provide documents to sign that keep them in their home while the scammer negotiates for them, the reality is that the homeowner signed over property ownership.
Rent-to-buy – The scammer convinces the owner to give up ownership and create a landlord-tenant dynamic. Soon rent costs rise, ex-owners miss payments, and eviction proceedings commence.
A "too-good-to-be-true" arrangement is likely just that. Knowing the signs helps. Those who have been scammed need immediate legal representation.]]>