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Attorney Cynthia LawsonThe Fair Isaac Corporation (FICO) has changed the way in which they calculate your credit score.  The new credit scoring system, called FICO 9, went into effect in 2014.  However, it wasn’t until banks starting using the new score in mass that Fair Isaac made the new formula available to consumers.

Let’s look at what changed, why it changed and what effect this may have on consumers.

Medical Collection Accounts

The biggest change is how FICO 9 treats unpaid medical bills in calculating your credit score.  Those medical bills sent to collectors are now treated differently than a normal bill sent to a collector.  Under FICO 9, unpaid medical bills sent to collection agencies will not ding your credit score as much as other non-medical collections.  This change follows several reports (here’s one) from the Consumer Financial Protection Bureau (CFPB) regarding credit scores and medical debts.

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

1 week 3 days ago

The revelations at Wells Fargo are reminder to directors that when a bank's performance is too good to be true, it likely is.

Read More from: BankThink

1 week 3 days ago

NJOY, Inc., an e-cigarette and vaping company headquartered in Scottsdale, Arizona, has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Case No. 16-12076). The petition (including the list of the top 20 creditors), the first day declaration and the docket can be obtained through Upshot Services.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

1 week 3 days ago

Receiving Wide Coverage ...

Too much pressure: Wells Fargo's sales culture "rooted itself so deeply … that it eventually spiraled out of control," the Wall Street Journal reports. "Questionable sales tactics … were an open secret in Wells Fargo branches across the country," according to interviews the paper conducted with more than three dozen current and former employees, from area presidents down to tellers. "Many branch managers routinely monitored employees' progress toward meeting sales goals, sometimes...

Read More from: BankThink

1 week 3 days ago

South Jersey Bankruptcy AttorneysAlthough the economy has improved considerably in the years since the housing collapse, the reality is that many Americans are still struggling financially. It’s not easy to meet the challenges of paying bills, especially with the costs of homeownership (or renting) on the rise. Sometimes, it becomes necessary to seek assistance with financial difficulties and explore the possibility of filing for bankruptcy.

1 week 6 days ago

Mixed messaging on fin tech doesn't just emanate from the halls of Congress. It can also be found at the regulatory level as well.

Read More from: BankThink

1 week 6 days ago

Attorney Ed WoodsI recently read an informative and well written article in The Washington Post by a staff reporter for National Public Radio (NPR). In the article, the reporter, Mr. Bobby Allyn, related a personal experience wherein he encountered difficulties renting an apartment due to information contained in his credit report by credit reporting giant TransUnion.

Mistaken Identity

In the article, Mr. Allyn states that he had located an apartment in Philadelphia that he wished to lease. Before he could sign the lease, he got a phone call from the prospective landlord. The landlord expressed concerns about the criminal offenses, including two felony firearms convictions, contained in Mr. Allyn’s credit report.  Mr. Allyn pointed out that he had never owed or fired a weapon in his life. This was clearly a case of mistaken identity.

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

1 week 6 days ago

Unlike Wells Fargo's unauthorized account openings, concerns in 2003 about banks discounting rates on loans in exchange for customers buying investment-banking products were less about consumer protection than the potential harm to credit quality and competition.

Read More from: BankThink

1 week 6 days ago

Noble Environmental Power, LLC, and several of its affiliates filed for Chapter 11 protection in the Bankruptcy Court for the District of Delaware (Lead Case No. 16-12055).  Noble, a renewable energy company that owns and operates wind generation assets in New York and Texas, has its principal place of business in Centerbrook, Connecticut.  According to the Debtor’s first day affidavit, downward trends in energy prices have made its debt obligations untenable, leading to the commencement of this case.  The Debtor enters bankruptcy having already negotiated a Plan Support Agreement with its secured lender, Paragon Noble, LLC.  The Plan Support Agreement contemplates a Plan that will reduced the Debtor’s secured debt by 10%, extend the maturity of its remaining debt by five years, and reduce the rate of interest on its debt to the applicable federal rate.  The Plan will result in Paragon Noble owning 100% of the equity in the reorganized Debtor.  The Debtor has also filed a motion to retain American Legal Claim Services, LLC as claims agent.  The Debtor’s first day filings are not yet available through American Legal Claim Services.  The Debtor’s Petition may be found here and includes a list of the fifteen largest unsecured claims against the Debtor.

1 week 6 days ago

Receiving Wide Coverage ...

Opening bid: The Justice Department has proposed that Deutsche Bank pay $14 billion to settle a series of mortgage-backed securities investigations dating back to the financial crisis, "a number that would rank among the largest of what other banks have paid to resolve similar claims and is well above what investors have been expecting," the Wall Street Journal reported. The figure is preliminary, and it's unclear how much of that proposed amount...

Read More from: BankThink

1 week 6 days ago

tax+forms+and+billsWe never make tax deposits for our small business because we don’t know what we’ll owe.

We just wait til the return is prepared and try to pay then, he explained.

But, again this year, he couldn’t write a  tax check for a year’s worth of income.

So the client sitting across the table from me had an $8,000 tax bill for last year, and in mid October, had made no deposits toward this year’s taxes.

Waiting for certainty about what he’d owe, he racked up penalties for not making advance deposits, penalties for not paying when the return was filed, and interest on the unpaid tax.

And he was positioned to do it again this year.

Ouch!

1 week 6 days ago

Washington is hopping with news this time around. It's been a blistering week for Wells Fargo, and Maxine Waters, Carolyn Maloney and Elizabeth Warren are among those using scathing rhetoric about the bank to try to kill Dodd-Frank reform efforts. Speculation is that both presidential candidates are looking to Silicon Valley to fill key posts in their administration, and talk of Sheryl Sandberg as Treasury Secretary is growing louder. Also, check out the "amplification" strategy women in the White House are using to help their voices get heard at important meetings.

Read More from: BankThink

2 weeks 1 hour ago

Increasingly, our conversations about digital banking are only about technology. We must expand our dialogue to include ways to make digital banking empathetic.

Read More from: BankThink

2 weeks 5 hours ago

attorney Heather BanksOn August 22, the Consumer Financial Protection Bureau (CFPB) took action against Wells Fargo Bank for illegal private student loan servicing practices that increased costs and unfairly penalized certain student loan borrowers. The Bureau identified breakdowns throughout Wells Fargo’s servicing process including failing to provide important payment information to consumers, charging consumers illegal fees, and failing to update inaccurate credit report information. The CFPB’s order requires Wells Fargo to improve its consumer billing and student loan payment processing practices. The company must also provide $410,000 in relief to borrowers and pay a $3.6 million civil penalty to the CFPB. A link to the Order can be found here.

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

2 weeks 5 hours ago

If you are selling your home as a FBSO (For Sale By Owner) or buying a home which is being sold FSBO, you need a knowledgeable Walworth County real estate attorney to protect your real estate transaction. Many things could and do go wrong during a FSBO real estate transaction. Walworth County real estate attorney Shannon Wynn will help you steer clear of potential pitfalls.

 
Walworth County real estate attorney FSBO

How Walworth County Real Estate Attorney Shannon Wynn Helps FSBO Parties:

1. A Walworth County real estate attorney can protect your home sale when unexpected circumstances occur which are not covered on a real estate agent’s standardized form.

2. A Walworth County real estate attorney can assist FSBO buyers with writing and revising an Offer to Purchase as well as any needed Counteroffers.

3. A Walworth County real estate attorney can negotiate on your behalf during the purchase process.

Read More from: Wynn at Law, LLC

2 weeks 6 hours ago

For large banks, the risks of partnering with marketplace lenders do not matter. But small community banks can't afford to partner with competitors angling to poach their customers.

Read More from: BankThink

2 weeks 7 hours ago

Receiving Wide Coverage ...

Wells probed: Federal prosecutors in at least three districts have begun investigating Wells Fargo's sales practices in the wake of last week's $185 million settlement. The Wall Street Journal reported that federal prosecutors in Manhattan and San Francisco sent subpoenas to the bank. The investigation "is focusing on whether someone senior within the bank directed employees to falsify documents in conjunction with the opening of accounts and products without consumers' knowledge or...

Read More from: BankThink

2 weeks 8 hours ago

Delivery Agent, Inc., a provider of one of the leading and most advanced entertainment platforms to monetize entertainment content based in San Francisco, CA, and three of its affiliates have filed for chapter 11 bankruptcy protection before the United States Bankruptcy Court for the District of Delaware (Main Case No. 16-12051).  According to the debtors, a failed IPO and the acquisition of The Band, Inc., a media agency based in Denver, whose operations were subsequently discontinued, have, among other things, led to the debtors’ bankruptcy filings. The debtors indicate that they have entered into an asset purchase agreement with Hillair Capital Management LLC as the stalking horse bidder and the proposed debtor-in-possession lender and have filed motions seeking authority to sell their assets and obtain financing.

The petition (including the consolidated list of the top 30 creditors), the first day declaration and the docket are available through Epiq.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

2 weeks 8 hours ago

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Above and Beyond

By: Donald L. Swanson

How can this be?!

Federal rules of procedure contain mediation provisions for every bankruptcy-related court, except for the bankruptcy courts themselves.

Why this discrimination against bankruptcy courts??!!

[By bankruptcy-related courts, I’m referring to:

–the bankruptcy courts themselves;

–the U.S. district courts, in both their trial and bankruptcy-appeal capacities;

–the bankruptcy appellate panels; and

–the U.S. courts of appeals.]

Federal Rule of Appellate Procedure 33

Read More from: Mediatbankry

2 weeks 10 hours ago

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