Great Lakes Consumer Law Firm, LLCGreat Lakes Consumer Law Firm, LLC2024-03-26T06:45:10Zhttps://www.greatlakesconsumerlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1603570/2022/05/cropped-site-icon-nw-32x32.pngOn Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471242024-03-26T06:45:10Z2024-03-26T06:45:10ZThe internet and credit card offers
Understandably, many people use the internet to research what credit cards will offer consumers before choosing one for themselves. However, according to the Consumer Financial Protection Bureau (CFPB), the average person might not be getting the most accurate information. That's why this bureau recently issued circulars to regulators and law enforcement agencies concerning this subject.
Dark patterns and deceptive tactics
Some websites can use seemingly innocent designs to lure and manipulate readers towards certain credit cards. Another issue is that the companies behind these websites sometimes get kickbacks from credit card companies or financial institutions for mentioning their products in a more positive way than the competition. Furthermore, those at these companies design these websites to use a marketing trick known as dark patterns, which deceives users into doing what's in the best interests of the company.
Unfortunately, these results often don't provide consumers with credit cards that have the most favorable terms. As a result, people can find themselves tied up in messy situations that don't suit them. This situation can also result in someone developing unintended credit issues.
As a result of the CFPB's recent findings, this bureau currently plans to develop an online tool consumers can use. The goal of this tool is to ensure consumers have factual and transparent information about credit card-related offers to make more informed decisions.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471222024-03-18T07:26:57Z2024-03-18T07:26:57ZMedical debts don't define a debtor
Historically, there has been no link between credit issues related to outstanding medical debts and a debtor's ability to repay other types of loans. In other words, the presence of medical debt doesn't mean that you're less likely to repay a car loan or mortgage. Ultimately, there is no reason why lenders should know about or be able to use it to justify denying credit or offering it at a higher interest rate.
Information may not be accurate
A CFPB analysis of medical debt reporting found significant errors in the information that was passed on to credit bureaus. Among the errors included reporting debts that were already paid or that were incurred by another person. There were also errors related to the amount that was actually owed on a given debt. However, according to the CFPB, this has not necessarily stopped hospitals or other care providers from pursuing debts based on faulty data.
Debt collectors are critical
Debt collectors say that removing medical debts from credit reports might reduce the incentive for patients to pay. This could lead to greater demands for upfront payment or other restrictions that could prevent people from getting the care that they need. According to the CEO of ACA International, it would be better to focus on reigning in the cost of care as opposed to limiting collection efforts.
Unpaid medical debts are the top cause of bankruptcy in the United States. However, it may be possible to resolve one without going this route. For instance, you might be able to negotiate a lower balance or ask for grants or other assistance in your effort to pay an outstanding amount.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471202024-03-11T08:34:29Z2024-03-11T08:34:29ZWhat does foreclosure mean?
Because most people understandably find it impossible to purchase a property with all cash, they try to qualify for a mortgage. A mortgage allows the borrower or mortgagor to make payments towards owning a home. Lenders can foreclose this property if payments stop, meaning they take possession of said property in an attempt to recover what they were owed.
Can I stop foreclosure from happening?
Yes, borrowers typically have a few courses of action that may help them avoid foreclosure. One foreclosure defense is to file for either Chapter 7 or Chapter 13 bankruptcy, which can let people restructure their current debts. Depending on the specifics of your foreclosure, pursuing a legal defense is another option.
Reinstatement can also be a vital way to prevent a foreclosure. Illinois allows borrowers to reinstate, which means to pay what they owe in addition to reinstatement-related fees and interest. A redemption period also exists, a grace period for mortgagors to pay off their debt.
How long does the foreclosure process take?
It's worth noting that no two foreclosure processes will be identical. However, most foreclosures follow a general timeline. It typically takes about 12 to 15 months for foreclosure proceedings to conclude in Illinois. This process entails a lender filing a foreclosure complaint, serving notices and discussions between borrowers and lenders.
Having questions about foreclosure is understandable. It's important to do your research and learn more about your options.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471182024-02-26T03:48:36Z2024-02-26T03:48:36ZAn overview of the FCRA
The FCRA allows individuals to take legal action against entities that incorrectly report information to credit reporting agencies. According to the FCRA itself, consumers can take action against any individual who supplies information that results in damage to the plaintiff's credit score. An individual is defined broadly as a person, corporation or government entity. This was the basis by which Justice Gorsuch found that the FCRA waived sovereign immunity in this case.
An overview of sovereign immunity
Under the principle of sovereign immunity, the government cannot be sued by an individual. This is why the USDA sought to have the claim against it tossed out before it got to the Supreme Court. However, in addition to the Supreme Court, many outside parties threw their support toward the plaintiff in the case. These groups argued that the FCRA can't function if some entities that provide information that causes credit issues aren't held responsible for their actions.
Inaccurate information on your credit report may reduce your score by dozens or hundreds of points. Therefore, it's critical to review it to ensure that any mistakes are caught and rectified quickly. Under the FCRA, information on your credit report must be verified or removed in a timely manner after a complaint is made.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471162024-02-08T08:57:46Z2024-02-08T08:57:46ZCredit issues to consider
One reason people have their applications denied is a need for a more extensive credit history. Credit history is a factor in devising a credit score, and those with no credit history may be disadvantaged. However, there are ways to deal with the situation. One means to establish a credit history is to apply for a secured credit card. These credit accounts require a cash deposit to secure the borrowing for a set period. Once the period ends, the funds return to the account holder. Secured cards may also help those attempting to rebuild bad credit.
Persons turned down on their credit applications might shop for financial institutions willing to approve them. They may also seek out a co-signer. Reviewing a credit report to see if any false information undermines the applications could be helpful. If so, taking action to remove the incorrect information may be advisable.
Dealing with credit problems
Among the more problematic credit issues to address are identity theft or fraud. Subscribing to an identity monitoring service could benefit those wishing to avoid such a scenario. Taking action might be unavoidable upon discovering fraudulent use of someone’s identity to take out loans.
Legal action might be required in some situations. For example, it could be necessary if an entity refuses to remove false information from a credit report.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471142024-01-24T21:26:15Z2024-01-24T21:26:15ZHow foreclosure rescue schemes work
Typical foreclosure schemes involve a mail solicitation where a company promises a short-term financing deal from a private investor to pay a delinquent loan. The homeowner is told they can stay in the residence and rent from the so-called investor but convinces them to transfer the home's title to the investor as collateral. The investor may also offer a straw borrower for new financing.
In these schemes, everything is false. The homeowner deeds their title to a scammer or another third party and ultimately loses their home. If you are a victim of mortgage fraud, you may be able to use this as a foreclosure defense when trying to save your home.
Intentional deception for financial purposes can be considered a federal crime. Red flags of a mortgage foreclosure scheme include:
Purchasing a home while continuing to rent
Purchasing a property when someone already owns another property
Unable to contribute funds to a closing
How to resolve a foreclosure scheme
Professionals orchestrate most mortgage foreclosure schemes in Illinois. In Illinois, the Mortgage Foreclosure Law and Mortgage Fraud Task Force can help resolve your problem. You can also take legal action to help resolve foreclosure issues that are not your fault. Foreclosure may not be necessary if you take the right steps.
Before you submit to foreclosure, please make sure that you assess all options. You may be surprised to learn that you have not exhausted all your options. Ensure that you do this before making a final decision.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471102024-01-15T06:01:26Z2024-01-15T06:01:26ZRefinance the existing loan
When homeowners face financial difficulties, refinancing their home loan can help them avoid foreclosure. Taking this measure before any payments are missed can help homeowners save their home from foreclosure. Additionally, refinancing can also help them save money on their monthly mortgage payments.
Get a mortgage forbearance
When homeowners fall behind on their house payments, there are options available that can help them save their homes from foreclosure. Homeowners can use forbearance to adjust their payments. One forbearance method moves the amount they owe to the end of the loan term. Another method divides the past due amount and spreads it over a specific number of payments.
Ask about a repayment plan
If forbearance is not an option, homeowners can also request a repayment plan. A mortgage repayment plan lets them get back on track with their past due payments without the risk of foreclosure.
Request a loan modification
When homeowners face major life events, they often face home foreclosure. That’s especially true when they can no longer afford the terms of their current mortgages. A loan modification can help avoid the need for foreclosure defense by changing the terms of the mortgage. With a loan modification, homeowners receive new terms that they can afford, which will help them keep their homes.
Financial difficulties can have devastating consequences, but they don’t need to result in foreclosure. By taking any of these above measures, homeowners can save their homes.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471082024-01-15T03:18:28Z2024-01-15T03:18:28ZYou're advised to stop paying bills
One of the key signs of a shady organization is an order to stop paying your bills during the debt relief process. Typically, all you'll get by not paying your bills is a reduced credit score and creditors potentially threatening to sue you for the unpaid balance. You will also likely be subject to collection calls or other harassment until you either get current on your balance or pay it off in full.
An organization contacts you
A company that contacts you out of the blue is typically only interested in seeing how much money it can get as opposed to how it can help you. Furthermore, a company may have to contact you because it can't be found online or through other means because it has been banned from providing debt relief services.
There is a large upfront fee
There is nothing illegal about a debt relief company charging for its services. However, a reputable one will typically only levy a fee based on how much it can help you save. For instance, if a debt relief agency was able to get $10,000 of your debt forgiven, it might take $1,000 as a fee. Therefore, if you are asked to pay before any debt relief or credit repair services are rendered, it should be a clear warning sign to walk away.
There are many possible debt relief options including bankruptcy, a credit card balance transfer or a debt management plan. Ideally, you will talk to many different service providers before agreeing to any type of debt forgiveness or repayment plan.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471062024-01-02T05:46:52Z2024-01-02T05:46:52ZWhat the Consumer Financial Protection Bureau found
The Consumer Financial Protection Bureau (CFPB) found that only 22% of households involved the report knew that they would incur an overdraft fee. However, the report suggests that those who frequently overdraw their accounts are less likely to be surprised when hit with a fee. Finally, it discovered that households making less than $65,000 were three times as likely than households making more than $175,000 to overdraw their accounts or incur nonsufficient funds (NSF) fees.
The link between fees and household finances
The report found that 81% of households who incurred an overdraft or NSF fee had trouble paying their bills compared to those who did not. However, it was determined that many included in the report lacked sufficient credit issues to prevent them from using a credit card. Over half of those who incurred more than 10 such fees in a year had access to a credit card or some other form of credit.
If left unpaid, a negative savings or checking account balance could result in multiple late fees. It might also result in the closure of your account and the unpaid balance being sent to collections. Your bank or credit union may be able to explain why a fee was incurred or suggest ways to avoid them in the future.]]>On Behalf of Great Lakes Consumer Lawhttps://www.greatlakesconsumerlaw.com/?p=471042023-12-13T22:03:08Z2023-12-13T22:03:08ZUnderstanding the FCRA
The Fair Credit Reporting Act is a federal law that regulates the credit reporting industry so that credit agencies treat all consumers fairly regardless of whether they have credit issues. It safeguards you from misinformation to ensure that all information on credit reports is accurate.
Your rights and protections under the FCRA
Per the FCRA, you have the right to access your credit report. Although you can obtain paid copies through the three major credit bureaus, TransUnion, Experian and Equifax, you can also receive one free copy annually from one source. If you request your credit report, you have the right to receive it within 15 days.
If you view a copy of your credit report and see errors, the FCRA gives you the right to report them to the credit bureau so they can be removed. If the discrepancy isn’t removed, you can add a statement to your credit file that explains the issue.
The FCRA protects you from unsolicited credit offers; if you wish to limit those offers, you can opt out. It also gives you the right to access your credit score with all three of the major credit bureaus.
Some consumers get harassed by collection agencies and creditors trying to make good on the debt they owe. However, if a collector or creditor persists in contacting a consumer after they have asked them to stop, it’s illegal; the FCRA gives consumers the right to seek damages in court in such a situation.]]>