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CBS reports “Overdraft fees are raking in billions of dollars for the banking industry. But who’s paying them? Predominantly a tiny subset of consumers: young, working in lower-wage jobs and heavy users of debit cards. Surveying 304 individuals who reported paying more than $100 in overdraft fees during the past year, the Pew Charitable Trust found that the bulk — 67 percent — of those paying hefty overdraft charges are working but earning less than $50,000 annually. Roughly one-third earn $25,000 or less. Their preferred method of payment is a debit card, and more than a third of them are under age 36. Nearly a quarter of those surveyed said they paid more than a week’s wages in overdraft fees in the past year, with one in four reporting that the charges added to $300 annually or more. Nearly one in five of these individuals said overdrafts cost them $500 or more last year.5 Ways to Cut Costly Overdraft Fees… The post 5 Ways to Cut Costly Overdraft Fees appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
15 hours 7 min ago
It has taken several months, but the Russian Particulars of Claim and Ukraine's Defence (akin to complaint and answer in U.S. civil procedure) have now been filed. Distilled to its essence, Ukraine's response, as the Financial Times notes, is that "if you wanted your money back you should not have invaded our country." Or as Ukraine's lawyers put it in the Defence: "The [Russian] claim forms part of a broader strategy of unlawful and illegitimate economic, political and military aggression ... aimed at frustrating the will of the Ukrainian people to participate in the process of European integration." 

Read More from: Credit Slips

1 day 18 hours ago
Texas has some of the strongest homestead protections in the country.   It was also one of the last states to allow home equity lending.   When it reluctantly amended its Constitution to allow home equity lending, it included some draconian provisions for lenders who didn't follow the rules, allowing forfeiture of principal and interest in some cases.   A lender's failure to provide a timely release after the borrower repaid the loan sparked a spirited disagreement among the Texas Justices as to whether to apply the Constitutional provision as written or to use common sense.   In a 7-2 decision, "common sense" and the lender prevailed. Garofolo v. Ocwen Loan Servicing, LLC., No. 15-0437 (Tex. 5/20/16).    You can read the opinion here and the dissent here.What Happened Teresa Garofolo took out a home equity loan for $159,700 in 2010.   She paid the loan off in April 2014.   While the lender recorded a release of lien, it did not provide her with a recordable release as required her loan documents.    She made demand upon Ocwen to provide her with the required paperwork.   When they failed to comply within sixty days, she filed suit in federal court seeking forfeiture of all principal and interest under the Texas Constitution.    The District Court dismissed the case.   When Ms.
2 days 11 hours ago
June 25, 2016 Google announced that it would ban ads for payday lenders (and similar services) starting on July 13. In a statement, David Graff, the company’s director of global product policy wrote:
We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., we are also banning ads for loans with an APR of 36 percent or higher. When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that.
Graff added that the new policy “is designed to protect our users from deceptive or harmful financial products,” and will still leave room for companies to advertise mortgages, car loans, student loans, and credit cards.  Read more… As additional information read the article “Feds Payday lender charged 700% interest”… read more
2 days 15 hours ago
“Charge off” is accounting jargon for the formal determination that the creditor is no longer treating its claim against you as an asset.   It permits the creditor to take a “wholly worthless bad debt” deduction on its taxes under Sec. 1244 of the IRC.    It does not mean the creditor has released its claim and it cannot pursue you.  Any payments received after the debt is charged off are treated differently for tax purposes.   And that its claim against the reorganized debtor is not on its balance sheet above the line. What it does mean is that the creditors still retains the right to collect the full amount of debt and have a variety of options available to them. Depending upon the situation, the creditor may have internal collections staff pursue collection or sell it to an external collector, or the creditor may elect to sue on the entire debt.
3 days 9 hours ago
Court Looks to the Knowledge of the Transferees in Madoff
3 days 14 hours ago
Sometimes a debtor’s rights in bankruptcy get affected by an overly aggressive Trustee.  The Trustee gets a fee and a percentage of any assets administered.  The debtor is seeking to keep any and all of his assets free and clear from the long arm of the Trustee.  This blog today deals with the personal injury+ Read More The post Bankruptcy Exemption For Personal Bodily Injury Applies In Illinois appeared first on David M. Siegel.
3 days 16 hours ago
In addition to credit risk from leveraged loans and other types of assets, an added worry for participations is how they would be treated in a failure of the originating bank.

Read More from: BankThink

3 days 17 hours ago
Zombie debt may have met its match. New California law prohibits a debt buyer from bringing suit on a claim that is barred by the statute of limitations, effective January 1, 2014.   Civil Code § 1788.56. Up until now, a creditor was free to sue on a debt that was older than the statute of limitations.  The burden was on the person sued to claim the protection of the statute. Too often, the debtor didn’t know that and the collector got a judgment on debt that should have been unenforceable. No longer, as to purchased, charged-off debt. Wait, wait, there’s more. Required information about debt A debt buyer may not even contact a person about a consumer debt unless the debt buyer has in its possession
  1. Proof that it is the sole owner of the debt
  2. Balance of the debt at charge off and a breakdown of charges added since charge off
  3. Date of default or last payment
  4. Name, address and account number used by the original creditor
  5. Name and address of the account debtor from the original creditor’s records
  6. Name and address of all entities that purchased the debt after charge off
Scope of consumer protection
3 days 18 hours ago
Texas’s Goodrich Petroleum Corp. will ask a judge in Houston on Tuesday to sign off on its bankruptcy-exit plan, one of the final steps in concluding the oil and gas producer’s bankruptcy case. Houston-based Goodrich, which sought bankruptcy protection after seeking to cut its debt as oil prices continued to tumble, will ask for approval of a deal that would erase $400 million in debt from its books through a swap with a group of investors that own bonds that the company issued last year. The Goodrich bondholders, who include Franklin Advisors Inc., Penn Capital Management and Jefferies LLC, have agreed to forgive $175 million in debt in exchange for ownership of the company. The company filed for bankruptcy last month, having already begun the process of formally soliciting creditor votes in support of this plan. The chapter 11 filing capped a year-long effort to reduce leverage and raise liquidity to weather low prices. Also Tuesday, New York supermarket chain Fairway Group Holdings Corp. will ask for final permission on a $55 million bankruptcy financing package that allows the company to keep operations going as it restructures. The company has called the financing, which it received preliminary access to earlier this month, a “cornerstone” of its reorganization. Without the fresh financing, Fairway’s ability to keep its doors open would be in “serious jeopardy,” the company said.

Read More from: Bankruptcy Beat

3 days 18 hours ago
Well before the mobile payments explosion, incumbents were already focused on how to respond to nonbanks "piggybacking" on banks' payments infrastructure. As the consultant behind a 1994 banking industry report on the threat put it, "there is no time for delay."

Read More from: BankThink

3 days 19 hours ago
Receiving Wide Coverage… Not Without a Trace: Security researchers have found evidence linking North Korea to three recent attacks on Asian banks — in the Philippines in October, Vietnam in December and the $81 million theft from the central bank of Bangladesh in February. They said in each event the attackers used a piece of rare but identical code seen in just two cases before: the Sony hack in 2014 and one on South Korea banks...

Read More from: BankThink

3 days 20 hours ago
What would you do if you got a tip there was an arrest warrant out because you hadn’t paid one of your bills?
  1. Scrape up the money any way you can?
  2. Get out of town?
  3. Laugh?
The right answer is “laugh”. In the US we don’t arrest people for owing money they can’t pay. Yet scammers are out in force, counting on you having slept through civics.  Whether it’s a phone call or an email, the scam works like the email below, received by a colleage’s client.
  Case No. ADR59832 We receive Arrest warrant against your name Kindly call as soon as possible before the court case is file in order to get a settlement before you have any trouble at your home or job. Frank Hamilton Federal Investigation Department Juliet, ill, 60431
I stripped out the no-doubt bogus phone number to call for instructions on how to buy off the agent of the “Federal Investigation Department” by sending money. It would be funny, if it didn’t work so well for the bad guys. Victimizing the vulnerable This scam works, often enough to keep it in circulation, because you feel exposed and guilty when you can’t pay your legitimate bills. The scammers count on exploiting those emotions and generating a bit of terror to part you from your money. Rest assured, none of that money will find its way to your real creditors. When arrest is possible
3 days 20 hours ago
Student load debt is becoming an increasingly big problem for consumers across the country. With the high price of tuition, it is quite common, almost necessary, for the majority of students seeking higher education to incur some student loans. If you are lucky enough to land a good job post-graduation, you may not have a problem with repaying your student loans per the terms of your original agreement with the lender. However, as discussed in previous blog posts here on the Bond and Botes website, student loan repayment is becoming an increasing problem for many Americans and can be quite burdensome. There are, however, a number of options available to help you with repayment of your Federal student loans if you are in bind with student loan repayment. Repayment Options for Student Loans

Read More from: Bonds & Botes, P.C.

3 days 20 hours ago
[wsj-responsive-image P="//" J="//" M="//" caption="In this May 3, 2016 photo, the St. Paul Cathedral is pictured in St. Paul, Minn." credit="Jim Mone/Associated Press" placement="Inline" suppressEnlarge="false" ] The Roman Catholic Archdiocese of St. Paul and Minneapolis has a new bankruptcy plan that sets aside at least $65 million for sexual-abuse victims, who aren’t on board with the plan. The archdiocese hopes the plan gets approved over victims’ objections The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit, scroll to the bottom and click “try for free.”)

Read More from: Bankruptcy Beat

3 days 21 hours ago
Sexism is less blatant than in the "Boom-Boom Room" era, but women aren't yet treated like equals at the male-dominated Wall Street firms. A community bank CEO takes a contrarian approach to underperforming branches, staffing up instead of closing them down, and Bank of the West embeds star employees at nonprofits as leadership training. Also, FinCEN's Jennifer Shasky Calvery in her final congressional hearing, a swipe at Brexit sexism, and is the fact that uniforms are going out of fashion a good thing for gender equality?

Read More from: BankThink

4 days 14 hours ago
A few weeks ago I wrote an article to warn plaintiff attorneys to be careful to ensure that their clients who have previously filed bankruptcy to ensure that all claims they have against third parties are reported on the bankruptcy schedules.  (Plaintiff’s Attorneys Beware: Your Client’s Bankruptcy Case is About to Sock You Right Between the Eyes)  Well,  . . .  it just happened to a lady in Minnesota. (See Cover v J.C. Penny Corporation, Civ No 15-515, District of Minnesota). The significant aspect of this case is that the debtor, April Cover, failed to report a discrimination claim on her bankruptcy schedules but she did verbally tell the bankruptcy trustee about the claim. Not good enough says the Minnesota court.  Actual verbal notice of a claim is not enough.  Audio recordings of the court meeting between the trustee and the debtor disclose that the discrimination claim was reported to the trustee.  There is no question that the debtor disclosed her claim, but without formally amending the bankruptcy schedules a debtor is legally barred from pursuing recovery in subsequent litigation.
4 days 14 hours ago
Bad credit can haunt you for years. It affects everything from your home purchase to your bills to renting an apartment. Some employers even check your report before hiring you. A newly proposed bill aims to improve the system.California representative Maxine Waters recently introduced the “Comprehensive Consumer Credit Reporting Reform Act,” which calls for some pretty significant changes to credit reporting. Ideally, those changes would protect consumers from incorrect information and outdated debt. The bill would also give the Consumer Financial Protection Bureau authority to monitor credit scoring practices. There are a lot of interesting updates proposed in the bill, including section 401, which “shortens the time period that most adverse credit information stays on consumer reports.” In general, most negative items stay on your report for seven years, but the bill would change that to four. In addition, the bill aims to make credit reports more accessible to the consumer, give consumers more time before medical debts are added to a report, and make it easier for student debtors to repair their credit.

Read More from: Shenwick & Associates

4 days 15 hours ago
When Can a Subsidiary Be Liable for the Actions of Its Owners?
4 days 15 hours ago
This is the second article in a blog series on emergency savings and financial security. Check out the first blog article, “Study Finds That Most Americans Can’t Cover Unexpected Emergency Expenses.” Far too many Americans only think about their short-term economic interests and don’t give enough thought to their long-term financial security. Just because a person has a job today does not mean that they will have that same job, or a better job, in the future. As a result, a majority of Americans are unprepared when an emergency strikes and they need quick cash to cover the unanticipated expenses. One of the best ways to protect against a financial nightmare is to make sure you have an emergency fund to help you deal with the unexpected. For example, a study conducted by the Urban Institute found that even a small amount of savings can go a long way toward ensuring that you don’t go bankrupt or lose your home when an emergency arises.
4 days 15 hours ago