As pointed out some time ago by placing him among those on my Squaliformes “Hall of Shame” list, Jay Patel’s hunger for private information to sell about other people is seemingly endless.
He may have to go on a little bit of a data-diet. Not to worry for Jay and his gang, the toothless FTC won't put him (or them) out of business; that would send a signal to all data whores that the Feds are serious about privacy, and doing that wouldn't sit well with the movers and shakers in Washington.
It looks like the FTC has moved to act against Patel and his firm (AccuSeach / Abika) by charging him and four other Squaliforme enablers with violations of the 1996 Telecommunications Act.
The FTC says they were using or causing others to use, “false pretenses, fraudulent statements, fraudulent or stolen documentation or other misrepresentations, including posing as a customer of a telecommunications carrier, to induce officers, employees, or agents of telecommunications carriers to disclose confidential customer phone records."
Joining in on the scheme and being outed in the FTC suits are also “77 Investigations,” run by Reg Kimbro (in either Upland, California or Broomfield, Colorado), David Kacala’s Baltimore-based “Information Search,” “Integrity Security and Investigation Services” in Yorktown, VA, and last but not least, Scott Joseph’s “CEO Group”(Check Em Out) out of Ft. Lauderdale.
Half the fun will be the FTC’s effort to get the money they all made from the scheme. In that little dance, maybe the FTC might even find out who was buying the information and keeping these crooks in business.
'Round here, that would be only a good start. But with the FTC playing the sleeping-dog role in so many information privacy issues when financial services firms are at the controls in Congress, it's unlikely the penalty will actually put anyone out of business. So the settlements, like so many other alleged prosecutions, will simply show the rest of them how to navigate the waters.
The Honorable Judge Roy Bean
Friday, May 12, 2006
Wednesday, May 03, 2006
Wounded Squaliforme Changes Course - Sort Of
Mega-Squaliforme Ameriquest's parent company has cut thousands of Ameriquest employees and closed its retail office storefront lending operations.
That's the good news. Hundreds of thousands of consumers are in slightly less danger for the time being.
The bad news is there are now at least a thousand ex-Ameriquest loan agents who may start showing up at the doorsteps of other, less unscrupulous lenders. It will be interesting to see what companies are willing to jepoardize their own already-dubious reputations by letting some of these people stay in the lending industry.
'Round here, any former Ameriquest employee is not to be trusted, let alone hired. After all, you have to be really flexible in terms of moral turpitude to stay working for a Squaliforme of that magnitude.
The Honorable Judge Roy Bean
That's the good news. Hundreds of thousands of consumers are in slightly less danger for the time being.
The bad news is there are now at least a thousand ex-Ameriquest loan agents who may start showing up at the doorsteps of other, less unscrupulous lenders. It will be interesting to see what companies are willing to jepoardize their own already-dubious reputations by letting some of these people stay in the lending industry.
'Round here, any former Ameriquest employee is not to be trusted, let alone hired. After all, you have to be really flexible in terms of moral turpitude to stay working for a Squaliforme of that magnitude.
The Honorable Judge Roy Bean
Monday, April 10, 2006
Sales 101
Imagine ol’ Bean could offer you a product at very low cost that would instantly generate incremental (that’s over and above existing for the accounting challenged) revenue and profits for your business.
What if this very low-cost product would more than pay for itself in the first month you bought it? And that every month after the first month, the increased revenue is guaranteed to keep coming in? And unlike some products, you won’t have to add staff, rent more space, buy more phones, fax machines or copiers – none of that.
It’s the salesperson’s dream product – the prospect can’t say “no.”
How could you not buy this product? You’d be crazy not to; your board of directors and the stockholders would toss your dumbass out if you didn’t buy that product. If you found some mid-level manager in your company who decided not to buy this product, you’d have some serious “evaluating” to do with that manager’s department head – right after getting the product ordered.
No doubt about it. No senior decision-level executive is going to let an opportunity like this get by – especially the squaliformes.
The sleeping watchdogs over at the FTC are looking at yet another mortgage-related scam involving how PMI (Private Mortgage Insurance) rates are being jacked up by insurers who happen to buy a product from the credit-reporting squaliformes – without telling the consumer, of course.
This handy-dandy product just happens to be information that may or may not be accurate, but it sure does give the insurer’s revenue and profits a nice boost, and since the consumer has no clue as to what was in the product, they are simply stuck with the inflated insurance premium.
Now we can rest assured the squaliformes will attempt to imply that negative credit information means their risk is raised so they should be able to raise premiums. But one only has to ask the question if anyone’s premiums were ever lowered because of looking for improved credit data?
Hmmmm. That’s just not one of the products available – probably because it’s never been asked for. After all, who would buy a product that reduces revenue and profits?
What if this very low-cost product would more than pay for itself in the first month you bought it? And that every month after the first month, the increased revenue is guaranteed to keep coming in? And unlike some products, you won’t have to add staff, rent more space, buy more phones, fax machines or copiers – none of that.
It’s the salesperson’s dream product – the prospect can’t say “no.”
How could you not buy this product? You’d be crazy not to; your board of directors and the stockholders would toss your dumbass out if you didn’t buy that product. If you found some mid-level manager in your company who decided not to buy this product, you’d have some serious “evaluating” to do with that manager’s department head – right after getting the product ordered.
No doubt about it. No senior decision-level executive is going to let an opportunity like this get by – especially the squaliformes.
The sleeping watchdogs over at the FTC are looking at yet another mortgage-related scam involving how PMI (Private Mortgage Insurance) rates are being jacked up by insurers who happen to buy a product from the credit-reporting squaliformes – without telling the consumer, of course.
This handy-dandy product just happens to be information that may or may not be accurate, but it sure does give the insurer’s revenue and profits a nice boost, and since the consumer has no clue as to what was in the product, they are simply stuck with the inflated insurance premium.
Now we can rest assured the squaliformes will attempt to imply that negative credit information means their risk is raised so they should be able to raise premiums. But one only has to ask the question if anyone’s premiums were ever lowered because of looking for improved credit data?
Hmmmm. That’s just not one of the products available – probably because it’s never been asked for. After all, who would buy a product that reduces revenue and profits?
Wednesday, March 15, 2006
The Weird-scam Capitol of the US
Far be it from this Honorable Court to pick on other, less fortunately endowed territories, but there comes a time when even this Judge’s favorite ski destination must take a hard look in the mirror.
Granted, on a per-square mile basis, there aren’t a lot of people who live in most of Utah, but among those that do, there are some of the oddest of the kooks, and this most recent series of incidents indicates, at least to this court, that the inmates are soon to be in control of the asylum.
Not content to be just the home of the whacky polygamist splinter-faction of the Mormon church (a shared “distinction” with Arizona), Utah is home to some of the fastest-growing financial scams ever devised. Anything to do with “affinity marketing” seems to work in Utah so just by living there you can count on being a neighbor to a serial MLM’er.
And garden-variety silliness in the legal lalla-land seems to have found a home in Utah.
Take for example, something called the “Western Arbitration Council,” who set up shop in Sandy, Utah (which appears on maps as a suburb to the Capitol, Salt Lake City).
Scammers have used the WAC to pull all kinds of stupid pet tricks, including one couple in Kansas who pulled one of these worthless “awards” against the insurance company that bonds the bankruptcy Trustee overseeing their Chapter 7 filing. They got sentenced to 18 months for mail and bankruptcy fraud.
Another whacko in California, one Curtis Richmond, has been dancing a rain dance in multiple Federal courts with alleged arbitration awards from the WAC, including one for over fifteen-million against Citibank. His similar scam against EFS Bank has landed him in a contempt hearing after being ordered to stop filing stupid motions and letters in the case he lost with prejudice. He really gets around – he has an “award” against the Colorado Supreme Court, too and is filing yet another action in an Arizona court to get yet another body to read even more gibberish about the Citibank case.
And what do these all have in common, other than the bogus WAC “awards?”
It only gets “WACkier”. Turns out Richmond fancies himself as a member of something called the “Wampanoag Nation, Tribe of Grayhead, Wolf Band.”* One Dale Stevens of Vernal, Utah, is not only Chief, he’s also a “Supreme Court Judge.” And yet another nutball from that area of the State, one Thomas Smith, is a member of the tribe as well as the Chief Tribal Judge – AND – director of arbitration for the WAC.
Another of Vernal’s band of fools, tribe member James Burbank, doesn’t believe the law about license plates and driver’s licenses applies to him because of his membership in the “tribe.” When the state impounded his vehicle he, too, got an “award” from the WAC against the county officials.
And if that isn’t fun enough, out in Hawaii, one outfit known as “Americorp International LLC,” was before the Hawaii Real Estate Commission trying to get approved, but there was this little hang-up: A little IRS matter involving one Bruce Travis, who seemed to be trying to convince the Commission (unsuccessfully, by the way) that the WAC had issued an judgment against the IRS on his behalf, essentially voiding a $247,000 assessment. But only recently, Travis has changed tactics, and is now suing the IRS (again) on the basis that they never provided him with legitimate assessments for taxes since 1996. His prior, similar suit was dismissed and of interest is the fact that it’s an almost identical copy of about twelve other suits from tax protesters around the country.
This court has to wonder if the source of their “legal expertise” came out of Utah.
The Honorable Judge Roy Bean
*Not to be confused with the legitimate Wampanoa Tribe of Gay Head http://www.wampanoagtribe.net
Granted, on a per-square mile basis, there aren’t a lot of people who live in most of Utah, but among those that do, there are some of the oddest of the kooks, and this most recent series of incidents indicates, at least to this court, that the inmates are soon to be in control of the asylum.
Not content to be just the home of the whacky polygamist splinter-faction of the Mormon church (a shared “distinction” with Arizona), Utah is home to some of the fastest-growing financial scams ever devised. Anything to do with “affinity marketing” seems to work in Utah so just by living there you can count on being a neighbor to a serial MLM’er.
And garden-variety silliness in the legal lalla-land seems to have found a home in Utah.
Take for example, something called the “Western Arbitration Council,” who set up shop in Sandy, Utah (which appears on maps as a suburb to the Capitol, Salt Lake City).
Scammers have used the WAC to pull all kinds of stupid pet tricks, including one couple in Kansas who pulled one of these worthless “awards” against the insurance company that bonds the bankruptcy Trustee overseeing their Chapter 7 filing. They got sentenced to 18 months for mail and bankruptcy fraud.
Another whacko in California, one Curtis Richmond, has been dancing a rain dance in multiple Federal courts with alleged arbitration awards from the WAC, including one for over fifteen-million against Citibank. His similar scam against EFS Bank has landed him in a contempt hearing after being ordered to stop filing stupid motions and letters in the case he lost with prejudice. He really gets around – he has an “award” against the Colorado Supreme Court, too and is filing yet another action in an Arizona court to get yet another body to read even more gibberish about the Citibank case.
And what do these all have in common, other than the bogus WAC “awards?”
It only gets “WACkier”. Turns out Richmond fancies himself as a member of something called the “Wampanoag Nation, Tribe of Grayhead, Wolf Band.”* One Dale Stevens of Vernal, Utah, is not only Chief, he’s also a “Supreme Court Judge.” And yet another nutball from that area of the State, one Thomas Smith, is a member of the tribe as well as the Chief Tribal Judge – AND – director of arbitration for the WAC.
Another of Vernal’s band of fools, tribe member James Burbank, doesn’t believe the law about license plates and driver’s licenses applies to him because of his membership in the “tribe.” When the state impounded his vehicle he, too, got an “award” from the WAC against the county officials.
And if that isn’t fun enough, out in Hawaii, one outfit known as “Americorp International LLC,” was before the Hawaii Real Estate Commission trying to get approved, but there was this little hang-up: A little IRS matter involving one Bruce Travis, who seemed to be trying to convince the Commission (unsuccessfully, by the way) that the WAC had issued an judgment against the IRS on his behalf, essentially voiding a $247,000 assessment. But only recently, Travis has changed tactics, and is now suing the IRS (again) on the basis that they never provided him with legitimate assessments for taxes since 1996. His prior, similar suit was dismissed and of interest is the fact that it’s an almost identical copy of about twelve other suits from tax protesters around the country.
This court has to wonder if the source of their “legal expertise” came out of Utah.
The Honorable Judge Roy Bean
*Not to be confused with the legitimate Wampanoa Tribe of Gay Head http://www.wampanoagtribe.net
Sunday, February 26, 2006
Big Squaliformes Must Eat in Volume
You can’t make the numbers (and a career) at Ameriquest without some really heavy origination volume. So much so that when the going gets tough, the typical hyper-motivated (greedy) Ameriquest brokers swing into their creativity act.
A recent Utah case filed in Federal Court is yet another stunning example of how far these Squaliformes will go in luring victims into loans they know are going to result in foreclosure, AND, of course, yet another opportunity for the REO and lending industry as a whole.
Marian Paul fell into the Ameriquest maw in March of 2005, after being lured by mailers into calling to get information about a mortgage loan to repay a $4,000 debt.
Very late one evening, only a few days after receiving several calls from Ameriquest, two of the Squaliformes’ employees showed up unannounced at her Salt Lake City home.
They not only lied to her about the terms of the deal (telling her she was saving a lot of money compared to what she could get at her credit union), when she told them she wanted to wait to let her daughter read over the terms, they told her she had to sign that night because they couldn’t come back.
Paul ended up with a $60,000.00 Ameriquest loan that paid off her lower-interest credit union loan and her auto loan – without her knowledge.
The fact that she is a 73 year old widow with cataracts, has little or no formal education and does not read English well must have been the icing on the cake for the daring team of Ameriquest employees who set this one into action.
Predictably, in November of 2005, another Squaliforme bought the predatory loan, (Deutsche Bank National Trust), and immediately put the loan in default.
Given the giant sub-prime Squaliformes’ well-deserved reputation for sleazy lending practices, this one will probably never make it all the way to a jury trial. But, hopefully the court records will reveal who the individual perpetrators of this one are prior to the settlement and closing of the case.
In this court, there won’t be any privacy for the likes of these scum.
The Honorable Judge Roy Bean
A recent Utah case filed in Federal Court is yet another stunning example of how far these Squaliformes will go in luring victims into loans they know are going to result in foreclosure, AND, of course, yet another opportunity for the REO and lending industry as a whole.
Marian Paul fell into the Ameriquest maw in March of 2005, after being lured by mailers into calling to get information about a mortgage loan to repay a $4,000 debt.
Very late one evening, only a few days after receiving several calls from Ameriquest, two of the Squaliformes’ employees showed up unannounced at her Salt Lake City home.
They not only lied to her about the terms of the deal (telling her she was saving a lot of money compared to what she could get at her credit union), when she told them she wanted to wait to let her daughter read over the terms, they told her she had to sign that night because they couldn’t come back.
Paul ended up with a $60,000.00 Ameriquest loan that paid off her lower-interest credit union loan and her auto loan – without her knowledge.
The fact that she is a 73 year old widow with cataracts, has little or no formal education and does not read English well must have been the icing on the cake for the daring team of Ameriquest employees who set this one into action.
Predictably, in November of 2005, another Squaliforme bought the predatory loan, (Deutsche Bank National Trust), and immediately put the loan in default.
Given the giant sub-prime Squaliformes’ well-deserved reputation for sleazy lending practices, this one will probably never make it all the way to a jury trial. But, hopefully the court records will reveal who the individual perpetrators of this one are prior to the settlement and closing of the case.
In this court, there won’t be any privacy for the likes of these scum.
The Honorable Judge Roy Bean
Friday, February 10, 2006
It’s Taxpayer “Hunting Season” over at H&R Block/HSBC
Hurry, hurry – get those tax filings in – and it’s soooooo easy to get your refund fast with electronic filing through H&R Block.
But before you fall victim to HSBC’s heavily promoted program to basically loan you your tax return early, consider what one poster at the creditinfocenter forums (see link at left) discovered by taking the time to read the fine print:
The Honorable Judge Roy Bean
But before you fall victim to HSBC’s heavily promoted program to basically loan you your tax return early, consider what one poster at the creditinfocenter forums (see link at left) discovered by taking the time to read the fine print:
By clicking I AGREE below I am indicating that I have read, understand and agree to the Application, including but not limited to: (a) [b] Section 9 in which I agree that HSBC may use amounts received from my tax refund to pay delinquent debts I owe HSBC or others.Clever these Squaliformes are, eh? I particularly like the "or others" end of the scheme. Wonder how "the others" are getting notified that people are filing their taxes and getting refunds? Maybe a little too much cooperation.
The Honorable Judge Roy Bean
Friday, January 20, 2006
Dodging Responsibility - How the Game is Played, NY Style.
A news item out of New York, home to none other than alleged consumer-advocate but mostly presidential-wannabe Eliot Spitzer, caught the Court’s attention only briefly, but after a few nights sleep, the Court is hereby convened in the case of the People v. The New York Consumer Protection Board and the New York State Bar Association.
Without elaborating in the case style, the complaint now before this Court is:
Whereas, instead of aggressively enforcing state laws and bar association tenets regarding the actions of debt collectors and their law firms, the Board (with the apparent blessing of the Bar Association) is engaging in an effort to combat abusive debt-collection practices by educating consumers.
According to a quote in the story, agency spokesman John Sorensen said: "People who owe money have to repay debts, but they should also know they have rights under the law."
So to avoid the hard, dirty work of confronting bottom-feeding law firms and the Echeneidae Collectoris they front for, the Board will spend tax dollars to put on a show for various community groups around the state to inform them about their rights.
The court has seen in camera a pre-release version of the training video, and submits a transcript of it into evidence to wit:
Not exactly how we'd handle it 'round here. Any member of the aforesaid Board who sets foot on this side of the Pecos is in for a rude and short grand-tour of the jail follwed by a week's hard labor over at the county dump.
And for members of the NY Bar Association, don't expect to appear pro hac vice in my court until you clean up your own house up there.
A special admonishment to Mr. Spitzer's office is in order here. In the same news article, a spokeswoman for the AG indicated that there are two investigations going on into the actions of the Echeneidae Collectoris operating in New York.
The court admonishes the AG's office for abject failure to perform it's role - only two out of the thousands of Echeneidae Collectoris skulking around in New York are being investigated? That's a major blunder on the part of the spokesperson for revealing that absurdly low number, when even the BBB (another toothless watchdog) indicates collection complaints are number three on its list. But of course, in the eyes of the BBB anyone complaining about Echeneidae Collectoris has to be some kind of deadbeat trying to get out of paying what they owe.
Perhaps as the presidential election approaches, Mr. Spitzer's office will find room for a few more announcements about investigations, even if they never turn into actual prosecutions with real penalties.
Hint to the NY AG: Do a Google Search on "Orazio Lembo." The folks over there in NJ have a long list of Echeneidae Collectoris and their NY law firms who willingly participated.
The Honorable Judge Roy Bean.
Without elaborating in the case style, the complaint now before this Court is:
Whereas, instead of aggressively enforcing state laws and bar association tenets regarding the actions of debt collectors and their law firms, the Board (with the apparent blessing of the Bar Association) is engaging in an effort to combat abusive debt-collection practices by educating consumers.
According to a quote in the story, agency spokesman John Sorensen said: "People who owe money have to repay debts, but they should also know they have rights under the law."
So to avoid the hard, dirty work of confronting bottom-feeding law firms and the Echeneidae Collectoris they front for, the Board will spend tax dollars to put on a show for various community groups around the state to inform them about their rights.
The court has seen in camera a pre-release version of the training video, and submits a transcript of it into evidence to wit:
New York: “See the man with the gun?”
Consumer/victim: “Uhh, that one?”
New York: “Yes, that one. The one with the loaded gun pointed at
you.”
Consumer/victim: “Yes, I see him.”
New York: “Good. Keep an eye on him. You have rights.”
Consumer/victim: “Why is he pointing the gun at me?”
New York: “He wants something from you.”
Consumer/victim: “What does he want?”
New York: “Probably money.”
Consumer/victim: “But I don’t even know him.”
New York: “That doesn’t matter. He says he knows you. In fact, he knows all about you.”
Consumer/victim: “I didn’t think you could own a handgun in New York.”
New York: “You can’t.”
Consumer/victim: “But he can?”
New York: “Nope. And we’re warning you that it’s illegal to own a handgun.”
Consumer/victim: “But you won’t do anything to him?”
New York: “He’s an attorney. And he hasn’t used it yet, has he?”
Consumer/victim: “Well, sort of. I think he’s threatening me with it.”
New York: “But he hasn’t shot you, has he?”
Consumer/victim: “Not yet. I guess he won’t shoot if I give him what he wants.”
New York: “Probably not. If he does, be sure to dial 911.”
Consumer/victim: “I hope someone will.”
New York: “Consider yourself informed. Our work here is done.”
Not exactly how we'd handle it 'round here. Any member of the aforesaid Board who sets foot on this side of the Pecos is in for a rude and short grand-tour of the jail follwed by a week's hard labor over at the county dump.
And for members of the NY Bar Association, don't expect to appear pro hac vice in my court until you clean up your own house up there.
A special admonishment to Mr. Spitzer's office is in order here. In the same news article, a spokeswoman for the AG indicated that there are two investigations going on into the actions of the Echeneidae Collectoris operating in New York.
The court admonishes the AG's office for abject failure to perform it's role - only two out of the thousands of Echeneidae Collectoris skulking around in New York are being investigated? That's a major blunder on the part of the spokesperson for revealing that absurdly low number, when even the BBB (another toothless watchdog) indicates collection complaints are number three on its list. But of course, in the eyes of the BBB anyone complaining about Echeneidae Collectoris has to be some kind of deadbeat trying to get out of paying what they owe.
Perhaps as the presidential election approaches, Mr. Spitzer's office will find room for a few more announcements about investigations, even if they never turn into actual prosecutions with real penalties.
Hint to the NY AG: Do a Google Search on "Orazio Lembo." The folks over there in NJ have a long list of Echeneidae Collectoris and their NY law firms who willingly participated.
The Honorable Judge Roy Bean.
Monday, January 16, 2006
Abramoff – Not the First, Certainly Not the Last
The smell up yonder in Washington finally got strong enough for somebody to kick someone's ass to do something, and what'ya know - they’ve found the perfect deep-pocketed, well-connected fall-guy, Jack Abramoff.
And hopefully, there are going to be some members of Congress and the Senate dragged into the light of day for not only dealing with Abramoff, but with other lobbyists who basically pave the streets with money, dealing in favors and perks for the powerful.
At the top of the list of tainted lawmakers, scurrying now like roaches when the light comes on, is none other than the man identified as “Number 1” in the investigation, Bob Ney, Republican Congressman from Ohio.
What most of the news media is swarming around is the Congressman’s position as Chairman of the House Administration Committee, all the while being led in that direction because of Ney’s handling of election reform issues the committee deals with. That, it seems, will always get the media’s attention because the news media believes it, not the average person, should steer elections and their results.
But under that umbrella, Ney’s far more profound impact on the average consumer will probably be kept out of the rain of publicity it so richly deserves.
As will his other cozy lobbyist pal, Wright Andrews of the Butera Andrews “law” firm, a lobbying powerhouse for many of the financial services firms and their associations. Saying Andrews is a Squaliforme promoter doesn’t do him, or them justice. Suffice it to say, nothing that Andrews and the Squaliformes don’t like will end up in a bill that comes out of Ney’s Financial Services Sub-committee.
In the guise of standardizing the patchwork of laws that have cropped up because of deliberate stalling of real lending reform efforts, Andrews has Ney promoting something called the “Responsible Lending Act,” which is little more than a nation-wide license for Squaliformes to supersede state laws that protect consumers.
Having stepped down (as in, ousted) from the House Administration Chairmanship, it isn’t yet clear whether or not Ney will get to keep his Chairmanship of the Financial Services Committee.
Hopefully, Andrews’ key to the kingdom and shepherd of the Squaliformes’ “Responsible Lending Act” will be forced from office and more appropriate pro-consumer legislation can find its way out of the stranglehold the industry has had on the committee.
The Honorable Judge Roy Bean
And hopefully, there are going to be some members of Congress and the Senate dragged into the light of day for not only dealing with Abramoff, but with other lobbyists who basically pave the streets with money, dealing in favors and perks for the powerful.
At the top of the list of tainted lawmakers, scurrying now like roaches when the light comes on, is none other than the man identified as “Number 1” in the investigation, Bob Ney, Republican Congressman from Ohio.
What most of the news media is swarming around is the Congressman’s position as Chairman of the House Administration Committee, all the while being led in that direction because of Ney’s handling of election reform issues the committee deals with. That, it seems, will always get the media’s attention because the news media believes it, not the average person, should steer elections and their results.
But under that umbrella, Ney’s far more profound impact on the average consumer will probably be kept out of the rain of publicity it so richly deserves.
As will his other cozy lobbyist pal, Wright Andrews of the Butera Andrews “law” firm, a lobbying powerhouse for many of the financial services firms and their associations. Saying Andrews is a Squaliforme promoter doesn’t do him, or them justice. Suffice it to say, nothing that Andrews and the Squaliformes don’t like will end up in a bill that comes out of Ney’s Financial Services Sub-committee.
In the guise of standardizing the patchwork of laws that have cropped up because of deliberate stalling of real lending reform efforts, Andrews has Ney promoting something called the “Responsible Lending Act,” which is little more than a nation-wide license for Squaliformes to supersede state laws that protect consumers.
Having stepped down (as in, ousted) from the House Administration Chairmanship, it isn’t yet clear whether or not Ney will get to keep his Chairmanship of the Financial Services Committee.
Hopefully, Andrews’ key to the kingdom and shepherd of the Squaliformes’ “Responsible Lending Act” will be forced from office and more appropriate pro-consumer legislation can find its way out of the stranglehold the industry has had on the committee.
The Honorable Judge Roy Bean
Saturday, January 07, 2006
A note from the Clerk of the Court
His Honor wishes to advise all in the surrounding environs that he has recovered from his extended vacation and Court will resume in normal fashion, er, well, let's just say shortly.
Oh, and a prosperous New Year to all - with the exception of the Squaliformes and scammers out there; to those, y'all are in for a rough year.
Oh, and a prosperous New Year to all - with the exception of the Squaliformes and scammers out there; to those, y'all are in for a rough year.
Tuesday, November 29, 2005
Sallie Mae's Arrow Financial Gets a Wrist Slap
It's nice to have friends in high places, especially when you're a slime-ball collector who violates the law.
Good 'ol Sallie Mae bought Niles, Illinois-based Arrow Financial Services about a year ago. Arrow is one of the junk-debt Squaliforme Echeneidae. They've been under investigation over the last two years in Minnesota for little tricks like calling employers and talking to co-workers about debtors, taking more money out of checking accounts than was authorized, failing to respond to the investigators, etc.
Apparently, up there in Minnesota, Commissioner Glenn Wilson of the Commerce Department is still wondering why this type of stuff goes on. Well, a quick look at the measly fines they dish out with Wilson claiming "The violations are serious and we cannot and will not tolerate this type of activity in Minnesota," puts a little more light on why.
According to a news article, Wilson's department regulates 879 licensed collection agencies and nearly 31,000 individual collectors. But in the last 33 months, they've only taken action against 33 collection agencies and individual debt collectors - that's only about one a month.
And with those 33 actions, they've taken in about $300,000 in penalties. You do the math. Wilson's math isn't all that good - the fine for Arrow is $125,000 for 15 violations, and it's apparently a record fine.
I suppose what Wilson and the folks at Sallie Mae would love everyone to believe is that this strong (?) enforcement will somehow make the other 878 licensed agencies and 31,000 individual collectors sit up and take notice when they're harassing citizens of Minnesota.
Sure. They're all simply terrified.
For dragging a simple investigation out over two years and then letting Arrow off with a wrist slap, Wilson and his minions in Minnesota get the Sleeping-Watch-Dog award for November.
The Honorable Judge Roy Bean
Good 'ol Sallie Mae bought Niles, Illinois-based Arrow Financial Services about a year ago. Arrow is one of the junk-debt Squaliforme Echeneidae. They've been under investigation over the last two years in Minnesota for little tricks like calling employers and talking to co-workers about debtors, taking more money out of checking accounts than was authorized, failing to respond to the investigators, etc.
Apparently, up there in Minnesota, Commissioner Glenn Wilson of the Commerce Department is still wondering why this type of stuff goes on. Well, a quick look at the measly fines they dish out with Wilson claiming "The violations are serious and we cannot and will not tolerate this type of activity in Minnesota," puts a little more light on why.
According to a news article, Wilson's department regulates 879 licensed collection agencies and nearly 31,000 individual collectors. But in the last 33 months, they've only taken action against 33 collection agencies and individual debt collectors - that's only about one a month.
And with those 33 actions, they've taken in about $300,000 in penalties. You do the math. Wilson's math isn't all that good - the fine for Arrow is $125,000 for 15 violations, and it's apparently a record fine.
I suppose what Wilson and the folks at Sallie Mae would love everyone to believe is that this strong (?) enforcement will somehow make the other 878 licensed agencies and 31,000 individual collectors sit up and take notice when they're harassing citizens of Minnesota.
Sure. They're all simply terrified.
For dragging a simple investigation out over two years and then letting Arrow off with a wrist slap, Wilson and his minions in Minnesota get the Sleeping-Watch-Dog award for November.
The Honorable Judge Roy Bean
Friday, November 04, 2005
Just When You Thought it was Safe
With the Dorean Group mortgage-elimination scam head honchos as dishonored guests in the hoosegow facing both state and Federal prison terms, you’d think things would kinda point people in the general direction of reality when it comes to these schemes and their promoters.
Well, if you thought that, you’d be wrong. Like a bad case of the creeping gomboo, Dorean’s scheme is creeping back into the victim luring business. It’s being re-re-re-re-tooled with the help of some of the founder’s old friends – and apparently even family.
I guess there’s just too damn much money to be made to let a scam die under the weight of the threat of going to jail for running it - no matter how many victims you create in the process.
The Dorean wannabees include good-ol’ Bill Julian (not so fresh from his losses in court), along with Bob Knupp. They apparently tied themselves in with Bob Locke, the infamous scammer behind yet another debt elimination program aimed primarily at credit card users.
This band of mental light-weights was roundly denounced by none other than Farrel “Foul Mouth” LeCompte, former high-and-mighty purveyor of his own version of legal and banking reality while defending Johnson and company on just about every forum known to man.
Of course, the incriminating material on Farrel’s ccrescam web site finally became too hot to keep up there; either that or someone finally convinced the knucklehead he was violating the court order. So while apparently trying to cooperate with the authorities he so fearlessly denigrated and dismissed as nothing to worry about in the past, he now is letting all the web site owners go-it-alone. And all that great "educational material" (read: evidence of the scam) is gone – he wishes (damn those web-caching servers!).
And what has to be a real hit in the gut for LeCompte and Santeramo is that the great one, none other than “Dr.” Fred Johnson, has apparently joined with the Julian and Knupp crowd. After all, while Kurt and Scott are just not quite able to bully and pontificate their way over the courts, why not let another gang of fools take advantage of all that legal brain power – and of course, all those new DVD’s?
Now if they were only operating ‘round here. We’re in need of some cheap labor and Bubba’s kinda tired a bein' the only one in the jail. He's sayin' there's parts of him that are starting to itch.
Well, if you thought that, you’d be wrong. Like a bad case of the creeping gomboo, Dorean’s scheme is creeping back into the victim luring business. It’s being re-re-re-re-tooled with the help of some of the founder’s old friends – and apparently even family.
I guess there’s just too damn much money to be made to let a scam die under the weight of the threat of going to jail for running it - no matter how many victims you create in the process.
The Dorean wannabees include good-ol’ Bill Julian (not so fresh from his losses in court), along with Bob Knupp. They apparently tied themselves in with Bob Locke, the infamous scammer behind yet another debt elimination program aimed primarily at credit card users.
This band of mental light-weights was roundly denounced by none other than Farrel “Foul Mouth” LeCompte, former high-and-mighty purveyor of his own version of legal and banking reality while defending Johnson and company on just about every forum known to man.
Of course, the incriminating material on Farrel’s ccrescam web site finally became too hot to keep up there; either that or someone finally convinced the knucklehead he was violating the court order. So while apparently trying to cooperate with the authorities he so fearlessly denigrated and dismissed as nothing to worry about in the past, he now is letting all the web site owners go-it-alone. And all that great "educational material" (read: evidence of the scam) is gone – he wishes (damn those web-caching servers!).
And what has to be a real hit in the gut for LeCompte and Santeramo is that the great one, none other than “Dr.” Fred Johnson, has apparently joined with the Julian and Knupp crowd. After all, while Kurt and Scott are just not quite able to bully and pontificate their way over the courts, why not let another gang of fools take advantage of all that legal brain power – and of course, all those new DVD’s?
Now if they were only operating ‘round here. We’re in need of some cheap labor and Bubba’s kinda tired a bein' the only one in the jail. He's sayin' there's parts of him that are starting to itch.
Friday, October 21, 2005
HSBC Following Fairbanks Footsteps
Utilizing a similar legal stand as the Curry v. Fairbanks class action case, Rebecca Turner-Freely of Philadelphia has filed a class action case against HSBC, the Squaliforme that swallowed one of the most dangerous of all Squaliformes, Household Financial.
Typical of the schemes perpetrated in predatory mortgage servicing, Turner-Freely's suit claims: “Defendant has uniformly engaged in a scheme of illegal, unfair, unlawful and deceptive business practices that violate contract and state law in the servicing of home-secured loan transactions and in the provision of certain related services.”
Sounds like HSBC hasn’t been reading the Curry v. Faribanks playbook, er, settlement.
The key difference in this case is that while the mortgages involved allow the addition of attorney’s fees for foreclosure purposes, the language of the HSBC-serviced mortgages apparently doesn’t allow for “fee shifting” of legal expenses in dealing with borrower bankruptcies – something that HSBC has routinely tried to shove down the throats of bankruptcy filers - even after their discharge.
Of course, once any predatory servicer starts saying a borrower owes more than they actually do, the spiral down toward foreclosure is predictable. HSBC even attempted to charge the plaintiff for a Sheriff’s sale that never took place, nor was it ever even advertised.
Obviously, this isn’t an isolated incident, therefore the class could be large. The firm handling the case is McCullough & Eisenberg, P.C., of Warminster, PA. Stuart Eisenberg’s phone number is 215-957-6411.
The real question is, and will always be, will a win permanently change their behavior or the behavior of other servicers?
In this court, it would. Partly 'cause they'd be behind bars long enough.
The Honorable Judge Roy Bean
Typical of the schemes perpetrated in predatory mortgage servicing, Turner-Freely's suit claims: “Defendant has uniformly engaged in a scheme of illegal, unfair, unlawful and deceptive business practices that violate contract and state law in the servicing of home-secured loan transactions and in the provision of certain related services.”
Sounds like HSBC hasn’t been reading the Curry v. Faribanks playbook, er, settlement.
The key difference in this case is that while the mortgages involved allow the addition of attorney’s fees for foreclosure purposes, the language of the HSBC-serviced mortgages apparently doesn’t allow for “fee shifting” of legal expenses in dealing with borrower bankruptcies – something that HSBC has routinely tried to shove down the throats of bankruptcy filers - even after their discharge.
Of course, once any predatory servicer starts saying a borrower owes more than they actually do, the spiral down toward foreclosure is predictable. HSBC even attempted to charge the plaintiff for a Sheriff’s sale that never took place, nor was it ever even advertised.
Obviously, this isn’t an isolated incident, therefore the class could be large. The firm handling the case is McCullough & Eisenberg, P.C., of Warminster, PA. Stuart Eisenberg’s phone number is 215-957-6411.
The real question is, and will always be, will a win permanently change their behavior or the behavior of other servicers?
In this court, it would. Partly 'cause they'd be behind bars long enough.
The Honorable Judge Roy Bean
Thursday, October 06, 2005
Katz Cops a Plea Bargain - Dodges Real Punishment
Clever as ever, Howard Katz pulled a fast one by pleading "no contest" to the charges against him. Instead of going to trial and facing an almost certain guilty verdict, and instead of just pleading guilty, the maneuver will prevent the civil lawsuits against him from being able to point to a conviction as evidence of his scamming.
Not that he got off completely, but damn close to it compared to what he should have gotten which would have him in the hoosegow for most of the rest of his life.
On top of two years of not being able to practice law and six months of home confinement (boy, that's a drag), Katz is supposed to cough up about $100,000 in fines and costs plus almost $44,000 in restitution to some of his Lincoln Park victims.
Hopefully the Michigan Attorney General, Mike Cox, will do more than just put out some pretty PR piece about an investigation based on information from the Michigan court's own inquiry into Katz's practices.
But this Honorable Court questions why the firm he heads is still allowed to do business?
Special prosecutor John Gillooly originally talked tough prior to the trial, but he now says he's happy with the plea agreement. Well, he didn't have to actually go to trial so maybe that's good in his eyes. But then he tries to put lipstick on the pig: "When you and I are able to leave our residences freely and do what we want to do on weekends, Mr. Katz isn't going to be able to do that for several months."
Bailiff, break out the tissues - I can see the tears welling up from here.
Katz & Katz is nothing more than an on-going criminal enterprise with the resources to avoid having to actually pay for their crimes. And others who operate in the same deliberately abusive manner apparently have little to really fear in these cases if just one of the perpetrators pays a fine and gets a court-imposed vacation from work.
'Round here we have a slightly different view of where criminals should end up, and "no-contest" isn't one of the options.
The Honorable Judge Roy Bean
Not that he got off completely, but damn close to it compared to what he should have gotten which would have him in the hoosegow for most of the rest of his life.
On top of two years of not being able to practice law and six months of home confinement (boy, that's a drag), Katz is supposed to cough up about $100,000 in fines and costs plus almost $44,000 in restitution to some of his Lincoln Park victims.
Hopefully the Michigan Attorney General, Mike Cox, will do more than just put out some pretty PR piece about an investigation based on information from the Michigan court's own inquiry into Katz's practices.
But this Honorable Court questions why the firm he heads is still allowed to do business?
Special prosecutor John Gillooly originally talked tough prior to the trial, but he now says he's happy with the plea agreement. Well, he didn't have to actually go to trial so maybe that's good in his eyes. But then he tries to put lipstick on the pig: "When you and I are able to leave our residences freely and do what we want to do on weekends, Mr. Katz isn't going to be able to do that for several months."
Bailiff, break out the tissues - I can see the tears welling up from here.
Katz & Katz is nothing more than an on-going criminal enterprise with the resources to avoid having to actually pay for their crimes. And others who operate in the same deliberately abusive manner apparently have little to really fear in these cases if just one of the perpetrators pays a fine and gets a court-imposed vacation from work.
'Round here we have a slightly different view of where criminals should end up, and "no-contest" isn't one of the options.
The Honorable Judge Roy Bean
Tuesday, September 20, 2005
Crime Does Pay
A touch of historical perspective: For citizens of the territory not familiar with mortgage servicing scofflaws, one of the prominent positions on the Squaliformes Hall of Shame belongs to one Thomas Basmajian, founder/perpetrator and former head of what came to be known as the poster-child for mortgage servicing abuse, Fairbanks Capital (nka Select Portfolio Servicing which was recently acquired by CSFB).
The slap on the wrist given Fairbanks included a little zinger for Basmajian, to the tune of $400,000.00. It also barred him from working in the financial services business without the approval of the court.
Word was that the big house in swanky Park City was long gone at the time of the settlement. But before you go worrying about the poor Basmajians, consider that according to CA property records, their golf-course residence in ultra-swanky Pebble Beach was purchased just three months before the settlement was announced. And just so you'll know, even a little low-end bungalow thereabouts is over $1M.
But good old Tom apparently decided to stay in business in Salt Lake City. Word is he is involved in a business he knows a lot about – distressed residential real estate. You know, foreclosed homes. But instead of creating foreclosures, he's working the other end of the schemes and letting the other servicers generate the products, using what they learned from the settlement.
Things must be going pretty well. Foreclosure stats are up for SLC.
And just consider the $1.3M home in SLC’s also-swanky Cottonwood area he purchased late last year (Blogger's alleged image upload "service" isn't actually working as advertised, so to see dear ol' Tom's house you'll have to click on the URL below):
http://www.imgplus.net/pict.php?ad=0&id=2dd1761467
(Aint property records on the Internet fun?)
So while tens of thousands of just-plain folks got scammed, even lost their homes or were forced into bankruptcy, good old Tom Basmajian still seems to be doing quite well.
Yep. Just think how rough it’s been not having the private jet to get back and forth.
The Honorable Judge Roy Bean
The slap on the wrist given Fairbanks included a little zinger for Basmajian, to the tune of $400,000.00. It also barred him from working in the financial services business without the approval of the court.
Word was that the big house in swanky Park City was long gone at the time of the settlement. But before you go worrying about the poor Basmajians, consider that according to CA property records, their golf-course residence in ultra-swanky Pebble Beach was purchased just three months before the settlement was announced. And just so you'll know, even a little low-end bungalow thereabouts is over $1M.
But good old Tom apparently decided to stay in business in Salt Lake City. Word is he is involved in a business he knows a lot about – distressed residential real estate. You know, foreclosed homes. But instead of creating foreclosures, he's working the other end of the schemes and letting the other servicers generate the products, using what they learned from the settlement.
Things must be going pretty well. Foreclosure stats are up for SLC.
And just consider the $1.3M home in SLC’s also-swanky Cottonwood area he purchased late last year (Blogger's alleged image upload "service" isn't actually working as advertised, so to see dear ol' Tom's house you'll have to click on the URL below):
http://www.imgplus.net/pict.php?ad=0&id=2dd1761467
(Aint property records on the Internet fun?)
So while tens of thousands of just-plain folks got scammed, even lost their homes or were forced into bankruptcy, good old Tom Basmajian still seems to be doing quite well.
Yep. Just think how rough it’s been not having the private jet to get back and forth.
The Honorable Judge Roy Bean
Friday, September 16, 2005
More Experian Skullduggery
Experian's Metronet "File One Phone Search" Exposed
For $50.00 a month plus $0.35 per search, Experian customers will get unlisted and cellular numbers – and where do you suppose some of those come from?
Well, how about that toll-free number you call to “opt out” of the mailed offer deluge from the data brokers and credit card companies or to ask for your "free" credit report?
What people don’t realize is that calls to toll-free numbers (800, 866, 877) also include a data stream that includes the calling party number, even if you block your caller ID (different system). The Squaliformes are more than happy to correlate your SSAN with a phone number you call from and then sell it.
So much for paying the phone company for a supposedly “unlisted” number.
And if you think calling from your place of business or work is a good idea, think of all the Echeneidae Collectoris out there who would just love to know where you work and could care less about bending or breaking the law about contacting you there. Or at any number you just happened to use.
The Honorable Judge Roy Bean
For $50.00 a month plus $0.35 per search, Experian customers will get unlisted and cellular numbers – and where do you suppose some of those come from?
Well, how about that toll-free number you call to “opt out” of the mailed offer deluge from the data brokers and credit card companies or to ask for your "free" credit report?
What people don’t realize is that calls to toll-free numbers (800, 866, 877) also include a data stream that includes the calling party number, even if you block your caller ID (different system). The Squaliformes are more than happy to correlate your SSAN with a phone number you call from and then sell it.
So much for paying the phone company for a supposedly “unlisted” number.
And if you think calling from your place of business or work is a good idea, think of all the Echeneidae Collectoris out there who would just love to know where you work and could care less about bending or breaking the law about contacting you there. Or at any number you just happened to use.
The Honorable Judge Roy Bean
Friday, September 09, 2005
Katz Story Continues to Unfold
Michigan Judge Sets Trial Date for Echeneidae Collectoris
As we earlier reported almost exactly one month ago, Howard Katz got caught sneaking bogus collections cases through the Michigan courts (not much new there in terms of what those kinds of lawfirms will try to get away with).
But one of the courts finally got fed up with the smell, and now Judge David Bajorek has ruled Katz is to be tried later this month on contempt charges - as in 308 counts of filing fraudulent documents and affidavits.
It's not the nature of the cases or the contempt charges - what's worrying the creditor's bar right now is the magnitude of the prospective penalties. Judge Bajorek's view is that Katz faces 30 days in jail and a $250 fine for each of the counts, mainly because he agreed with prosecutor John Gillooly that Katz did it as a "continuing practice."
That's a little more than 25 years. That might just get their attention, although the $77,000 probably won't keep any of them up at night and it's unlikely Katz (at the age of 60) will spend the rest of his life in prison.
But the case has gotten the attention of other Michigan courts who are digging into Katz's filings. And we can hope the civil suits will follow shortly and in sufficient numbers to put the Katz operation out of business permanently.
One Echeneidae Collectoris nearly down, many to go.
The Honorable Judge Roy Bean
As we earlier reported almost exactly one month ago, Howard Katz got caught sneaking bogus collections cases through the Michigan courts (not much new there in terms of what those kinds of lawfirms will try to get away with).
But one of the courts finally got fed up with the smell, and now Judge David Bajorek has ruled Katz is to be tried later this month on contempt charges - as in 308 counts of filing fraudulent documents and affidavits.
It's not the nature of the cases or the contempt charges - what's worrying the creditor's bar right now is the magnitude of the prospective penalties. Judge Bajorek's view is that Katz faces 30 days in jail and a $250 fine for each of the counts, mainly because he agreed with prosecutor John Gillooly that Katz did it as a "continuing practice."
That's a little more than 25 years. That might just get their attention, although the $77,000 probably won't keep any of them up at night and it's unlikely Katz (at the age of 60) will spend the rest of his life in prison.
But the case has gotten the attention of other Michigan courts who are digging into Katz's filings. And we can hope the civil suits will follow shortly and in sufficient numbers to put the Katz operation out of business permanently.
One Echeneidae Collectoris nearly down, many to go.
The Honorable Judge Roy Bean
Can we have a little fun while we’re at it?
Hear ye, hear ye! Residents, denizens and all persons of the territory and surrounding environs (and anybody who just happens to drop by):
Be it known that from this date forward, recipients of unsolicited mail purporting to offer various and sundry forms of credit, loans, insurance or other financial gobbledegook are hereby ordered to no longer simply dispose of same without opening.
Recipients are further instructed to remove the “return mail” (i.e., “business reply mail”) envelope and insert in it a blank piece of paper (appropriately folded to fit). This item is then to be deposited in the recipient’s outgoing mail receptacle or delivered to the appropriate United States Postal Service facility for return to the Squaliformes at their sole expense.
Be it so ordered.
The Clerk of This Honorable Court
[(Note from the Clerk of the Court: His honor wishes to recuse himself from this particular matter in that he does not want to take credit for the idea and thus he offers himself the defense of plausible deniability for any outcome.)]
Be it known that from this date forward, recipients of unsolicited mail purporting to offer various and sundry forms of credit, loans, insurance or other financial gobbledegook are hereby ordered to no longer simply dispose of same without opening.
Recipients are further instructed to remove the “return mail” (i.e., “business reply mail”) envelope and insert in it a blank piece of paper (appropriately folded to fit). This item is then to be deposited in the recipient’s outgoing mail receptacle or delivered to the appropriate United States Postal Service facility for return to the Squaliformes at their sole expense.
Be it so ordered.
The Clerk of This Honorable Court
[(Note from the Clerk of the Court: His honor wishes to recuse himself from this particular matter in that he does not want to take credit for the idea and thus he offers himself the defense of plausible deniability for any outcome.)]
Saturday, August 27, 2005
Another Breed of Squaliforme Surfaces - Eric McDougal
Just when you thought it couldn’t get any worse, now comes a new breed, a mortgage lender/broker who works in collusion in advance with the Echeneidae Collectoris.
Offering kick-backs to collectors for referrals for high-interest loans, one Eric McDougal, a Sacramento-based mortgage broker, is ever the self-promoter. Finding his way on to a web site forum for collections “professionals” he touted his “services” to the crowd:
One of the more savvy Echeneidae mentioned there can be problems with the TILA-required 3-day rescission option - and Eric’s response?
When dealing with someone with an apparent 5th grade education and spelling skills, one should expect to be at least disappointed. And as to another question about having the consumer's credit reports fixed:
Notice there is never any concern that the debt might be completely invalid? Doesn't matter to guys like Eric McDougal.
Again, converting unsecured debt (valid or not) into secured debt is just one of the industry’s goals and the low-lifes like Eric are out there beating the drum to collude and put people further into jeopardy while spreading the wealth with kick-backs off of what might be completely invalid debt.
And you don't suppose the lenders stepping into these scams are of the high-caliber, upstanding variety, now do you? Sure they are. And it don't rain in Indianapolis in the summertime.
What we see happening is taking a few thousand dollars of possible debt, turning it into a predatory refi loan that's secured by the victim's property, and then handing that off to one of the sub-prime servicer Squaliformes.
If you ever talk to a mortgage broker out of California by the name of Eric McDougal, hang up and don't return further calls.
McDougal better not show his sorry arse in these parts. We have places for people like him. Cold as all get-out in the winter; hotter'n hell rest of the time. I'd recommend a new line of work but most require honesty and moral turpitude.
Offering kick-backs to collectors for referrals for high-interest loans, one Eric McDougal, a Sacramento-based mortgage broker, is ever the self-promoter. Finding his way on to a web site forum for collections “professionals” he touted his “services” to the crowd:
What are "anyones" feeling on referring out the debtor to a mortgage company to help pay off the debt within a 2 week period and making your EOM (end of month)?
I can help. I am a loan officer in California and have been working with collectors for the past 3 years. I can do lending in all 50 states, so there's no need to be looking for a broker in each and every state. I keep in constant contact with my clients and my collectors and will never ask to settle a referred debt.
Please contact me at xxx.xxx.xxx and I will explain more and what we can do for each other.
Thanks,
Eric McDougal
One of the more savvy Echeneidae mentioned there can be problems with the TILA-required 3-day rescission option - and Eric’s response?
Well, let me explain what I do in the case of the 3 day recision....... Are you ready.... this is pretty big.... I will do a check by phone, out of my own accout and then be remburised by the title company.What'll you bet the borrower doesn't realize they're not getting a check for the amount they were expecting until after they sign at the closing? And isn't it a great idea to be working with a mortgage broker who likes to work hand in hand to put the fear of God in you?
2. Checks will NEVER be cut directly to the debtor, I have my title company do a direct wire into your companies accout.
3. I am self employeed... If I don't close, I don't eat. I am NOT a direct lender, I am a mortgage broker. Therefore I can use many many lenders to push loans thru. From manufacter homes to Texas loans with a hundred head of cattle on 100 acres.
Now, on the question for credit scores. There is one lender that will go down to 475 fico. Unfortantly that will only come with a 65-70% LTV (loan to value). I like to stick to 500 and above in which I can get a loan secured at 80% LTV (as long as there are no mortgage lates) and with some of the lender's that I use, I can get an extra 5% exception, if needed.
ALSO, I like to put on contests within the office.. Some of the collection agencies that I have worked with will allow me to give away Mexico Trips or other kind of incentives for the collector that funds the most loans.
I agree with you, a lot of lender's CAN'T close a window, but I like to work hand in hand with the collector to put the fear of God into the debtors and keeping in constant communications.
Give me a shot, you won't be disappointed.
When dealing with someone with an apparent 5th grade education and spelling skills, one should expect to be at least disappointed. And as to another question about having the consumer's credit reports fixed:
100% of my pipeline is collection referrals.
You are correct in thinking that the "smarter" consumers are going to request that their neg. tradelines be deleted, but the honest answer is.... they don't.
These are consumers that, well, had a bad month and decided to "charge it" with hopes that money would be coming in the prior month. The only thing I've ran into with a knowledgable consumer is refinancing fees, in which I will work those out with them until we become in agreement, but, the negotiations can only last so long with the collecter calling and calling with the threat of legal actions. At that
point, the debtor just wants to get it over with.
Notice there is never any concern that the debt might be completely invalid? Doesn't matter to guys like Eric McDougal.
Again, converting unsecured debt (valid or not) into secured debt is just one of the industry’s goals and the low-lifes like Eric are out there beating the drum to collude and put people further into jeopardy while spreading the wealth with kick-backs off of what might be completely invalid debt.
And you don't suppose the lenders stepping into these scams are of the high-caliber, upstanding variety, now do you? Sure they are. And it don't rain in Indianapolis in the summertime.
What we see happening is taking a few thousand dollars of possible debt, turning it into a predatory refi loan that's secured by the victim's property, and then handing that off to one of the sub-prime servicer Squaliformes.
If you ever talk to a mortgage broker out of California by the name of Eric McDougal, hang up and don't return further calls.
McDougal better not show his sorry arse in these parts. We have places for people like him. Cold as all get-out in the winter; hotter'n hell rest of the time. I'd recommend a new line of work but most require honesty and moral turpitude.
Tuesday, August 16, 2005
Unchecked Power Demonstrated Once Again.
As noted here previously, “freecreditreport.com” has been a scam from the get-go, luring consumers into alleged credit scoring for free, all the while only setting people up to find out they aren’t getting what they really need unless they pay. Worse yet, even setting them up into paying for a $79.95 per year charge (in advance, of course) if they didn't realize they had to cancel the bogus "service" within 30 days.
Well leave it to the FTC to belatedly go after the schemers and finally make it look like they’re doing their best to protect the millions of victims of the credit scoring cabal.
Under the guise of things like “consumerinfo.com” and its subsidiaries Qspace and Ispace, none other than data broker Experian had found yet another way to fleece consumers.
But once again, the toothless FTC is getting zip compared to the damage done and business goes on as usual.
And like most FTC announcements, this one plays to the supposed diligence of the FTC:
"Consumers paid the price for ordering free credit reports from freecreditreport.com," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. "It's unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn't want in the first place."
So why the paltry $950K fine? And why did it take more than three years to bring the practice to a halt?
Well, you can only chalk another one up to the unmitigated power Experian has in the halls of Washington.
On this side of the Pecos, letting the perps get away with it this long and with a meaningless fine would get Ms. Parnes fired and then some.
The Honorable Judge Roy Bean.
Well leave it to the FTC to belatedly go after the schemers and finally make it look like they’re doing their best to protect the millions of victims of the credit scoring cabal.
Under the guise of things like “consumerinfo.com” and its subsidiaries Qspace and Ispace, none other than data broker Experian had found yet another way to fleece consumers.
But once again, the toothless FTC is getting zip compared to the damage done and business goes on as usual.
And like most FTC announcements, this one plays to the supposed diligence of the FTC:
"Consumers paid the price for ordering free credit reports from freecreditreport.com," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. "It's unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn't want in the first place."
So why the paltry $950K fine? And why did it take more than three years to bring the practice to a halt?
Well, you can only chalk another one up to the unmitigated power Experian has in the halls of Washington.
On this side of the Pecos, letting the perps get away with it this long and with a meaningless fine would get Ms. Parnes fired and then some.
The Honorable Judge Roy Bean.
Monday, August 08, 2005
One to Keep an Eye On up in Michigan
The Katz & Katz "law firm" scam in Michigan has caught the eye of at least one other judge who apparently doesn’t like the status quo.
Turns out Katz and Katz got caught pulling one of the typical bogus-notification schemes against alleged debtors, then walking away with uncontested judgments when the defendant didn’t show up to a hearing they didn’t even know was taking place. Howard Katz is facing 300+ criminal contempt charges for getting caught filing bogus documents in the 25th District court (in nearby Lincoln Park).
To his credit, Judge Stephen Cooper (46th District over in Southfield) has now turned to the Michigan District Judges Association and pointed out that things weren’t fair for average people. (DUH!) Like anyone who's observed these schemes in action, he’s seen things like multiple suits against the same party for the same alleged debt or the typical trick of going after people who have no connection to the debt. And he apparently has “serious concerns…about the validity” of some of the filings the scammers try to pass through the system - and there are about 500 per month in Southfield alone. Cooper's clerk refused to accept 75 cases and tossed them back into Katz's lap when the scammer said he wouldn't try to justify the inexplicable fees and charges he had piled on, so there's going to be more court action on that front.
The good news is Cooper's apparently not the only one who thinks the stench is getting too strong. If he gets enough support from his fellow jurists and can get the State Supreme Court to make some changes, some of the more blatant collection scams might be harder to pull off - at least in Michigan.
The bad news is the Echeneidae Collectoris will eventually try to find other ways around any new rules that are implemented unless the fines and penalties actually put a few of them out of business and some law licenses get pulled.
The Honorable Judge Roy Bean
Turns out Katz and Katz got caught pulling one of the typical bogus-notification schemes against alleged debtors, then walking away with uncontested judgments when the defendant didn’t show up to a hearing they didn’t even know was taking place. Howard Katz is facing 300+ criminal contempt charges for getting caught filing bogus documents in the 25th District court (in nearby Lincoln Park).
To his credit, Judge Stephen Cooper (46th District over in Southfield) has now turned to the Michigan District Judges Association and pointed out that things weren’t fair for average people. (DUH!) Like anyone who's observed these schemes in action, he’s seen things like multiple suits against the same party for the same alleged debt or the typical trick of going after people who have no connection to the debt. And he apparently has “serious concerns…about the validity” of some of the filings the scammers try to pass through the system - and there are about 500 per month in Southfield alone. Cooper's clerk refused to accept 75 cases and tossed them back into Katz's lap when the scammer said he wouldn't try to justify the inexplicable fees and charges he had piled on, so there's going to be more court action on that front.
The good news is Cooper's apparently not the only one who thinks the stench is getting too strong. If he gets enough support from his fellow jurists and can get the State Supreme Court to make some changes, some of the more blatant collection scams might be harder to pull off - at least in Michigan.
The bad news is the Echeneidae Collectoris will eventually try to find other ways around any new rules that are implemented unless the fines and penalties actually put a few of them out of business and some law licenses get pulled.
The Honorable Judge Roy Bean
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