This "contact Jeff" form is only used for your convenience. This form does not make you a client of our firm. Jeff is licensed only in Pennsylvania. If you need an attorney outside of Pennsylvania, you can find one at National Association of Consumer Advocates. While we'll keep what you tell us private, remember that we can only give specific legal advice once you become a client of the firm. This is done by written agreement only.
Jeff's Blog 
General
News
Pennsylvanians - Happy Financial Eduation Month!...
Posted on 4/5/2010
Student Loans are the New Indentured Servitude...
Posted on 10/12/2009
Largest U.S. Bank throws Arbitration Out the Door...
Posted on 8/14/2009
National Arbitration Forum works against Consumers, NOT for the consumers...
Posted on 7/15/2009
Senator Chris Dodd: Credit Crisis...
Posted on 5/20/2009
Library
General
- Attorney Jeff Suher's sums up the meaning of the FCRA and how the FDCPA work together in a brief article.
- Complaint against the National Arbitration Form
- Pennsylvania Operation Short Change
- Read About New Consumer Protections Under the Credit Card Reform
- Debt Collectors are Creating New Tactics to Scare and Embarass Debtors
General
April is Pennsylvania Financial Education Month
Did you know that Pennsylvania Governor Ed Rendell has proclaimed April to be "Financial Education Month"?"Although Pennsylvania's unemployment rate remains below the national average and the economy continues to show signs of recovery, there are still Pennsylvania families that are struggling as a result of economic forces beyond their control," Governor Rendell said. "At a time when every penny counts, the ability to make informed financial decisions is more valuable than ever."
Does this make you think how you should be a little more financially responsible? I know it makes me think.
It makes me think about how many times I have taken out my credit card to pay for this or to pay for that.
Here's a perfect example I'd love to share, it makes me laugh every time I think about it.
My 8 year old has been playing ice hockey for 3 years now. Let me just tell you, what an expensive sport!! But a great sport. It takes a lot of time and dedication for an 8 year old to play hockey.
But, does his mom and dad really need to pay for ALL THOSE extra Penguins clinics just so her son can meet some players, does an 8 year old REALLY need to play on travel teams and spend weekends in Detroit, New York and Toronto, Canada? My goodness..........a bunch of us hockey moms were just laughing at ourselves. We bleed ourselves dry just to give our 8 year olds these experiences. We all know that none of our children will grow up to be Sidney Crosbys, but we still do it.
All of these little extras we give to our children and give to ourselves is such a big part of society today. We all need to keep up with the Jones' so to speak.
It can actually be quiet exhausting when you think about it.
So, just for this month - sit and think, I mean "really" think about being a little more financially responsible. We could probably all learn a little more about personal financial management to help us enjoy a more secure future.
Check out http://www.moneysbestfriend.com/ - this website is just for Pennsylvanians. On this site you can find resources to help deepen your understanding of financial issues, deal with major milestones in life, and connect with state and local services to help you make the most of your hard earned money. Check out the different workshops offered in the Pennsylvania areas as well.
Good Luck and Happy Financial Education Month!
Mortgage Servicing Company - HomEq - being sued for deceptive practices
Pittsburgh Attorney Jeff Suher has filed a lawsuit against HomEq Servicing Company for deceptive practices and for trying to collect money from a homeowner that was not owed and then threatening foreclosure when the money was not paid. This is a good article if you are in the Pittsburgh area and are having problems with your mortgage servicer.Credit Card Issuers already finding ways to "Work Around" the System
Credit Card Reform will be taking effect on Monday, February 22, 2010. Some Credit Cards have already found a way to work around the system. Read this article to see what Congress has in store to solve this problem.Deceptive Mortgage Servicing Company Wreaks Havoc in this Family's Life
If your mortgage company is giving you a hard time and possibly going to foreclose on your home, you may need to contact an attorney in your area fast! Don't waste time, it is crucial. In Pennsylvania, contact Jeff Suher.Student Loan Rehabilitation Guide
Many consumers all over the world experience trouble paying back their student loans and sometimes end up in default. However, many consumers do not know that there are options for repayment of their government student loans.One of the most popular and effective option is called the Rehabilitation Program. Jeff put together a quick consumer informational guide for those interested in the Rehabilitation Program, which includes the basic provisions under the Family Federal Educational Loan Program.
Student loans in default are one of the most devastating entries one could have on their credit report. Therefore, it is very important to try and remedy the situation. Unlike other negative entries that fall off after the 7 year itch, government student loans are not one of them.
Check out the guide and other resources. As always, please contact Jeff should you have any questions.
More breaking news on the lawsuit against NAF - Arbitration Reform!
Wow - breaking news. Only a couple of weeks ago, Minnesota Attorney General Swanson filed suit against the National Arbitration Forum for failing to disclose to consumers its close ties with the credit card industry and the nation's leading debt collection agencySix days later this company voluntarily exited the consumer-debt business COMPLETELY. The company agreed to stop arbitrations involving credit cards, consumer loans, utilities, telecommunications, health care and consumer leases.
Another Arbitration company, the AAA (American Arbitration Association) widely used announced that it had stopped handling consumer debt arbitrations this past June
Most credit card agreements that uphold the pre-dispute arbitration clauses specify the arbitrations will be performed by either NAF or AAA. With both of these companies out of business with consumer debt cases, many of these claims will now floor the conciliation court or state District Court. Both companies heard nearly 214,000 cases a year.
Lawsuit filed against the National Arbitration Forum - if you own a credit card this is life-changing!
Everyone I know owns a credit card. However, I do not think that everyone who owns a credit card is aware of what is really found deep in its fine print of the consumer agreement. Would you be surprised to find out that you may have forfeited your right to have a credit card dispute resolved by a judge or jury? Would you be surprised to find out that many agreements often require that disputes are resolved exclusively through a private system of binding arbitration, frequently through the National Arbitration Forum?How about this one:
Did you know that this Forum is represented to the public, courts and consumers that it is an independent, and impartial court system and is not affiliated with any party. However, this may not really be the case. I’m sure that you are not aware that this Forum works alongside creditors and behind the scenes AGAINST the interest of consumers.
Here’s just one more quick one for you:
I guarantee that you were not privy to the fact that the Forum is financially affiliated with a New York hedge fund group that actually owns one of country’s major debt collection enterprises!!
Luckily the Attorney General of Minnesota filed a lawsuit, the first one of its kind, against the National Arbitration Forum. This may be the beginning of the end to credit card companies sneaky little tricks and hidden agendas in their consumer agreements. If you own a credit card, we urge you to read this complaint, it could be life-changing to some consumers.
Pennsylvania joins Operation Short Change
Unfortunately this spiraling downturn in America's economy has brought out the worst in people and made greedy people even greedier. New companies are sprouting out everywhere claiming they can help you "get rich quick" or work from home earning thousands of dollars in extra income a month.Fortunately for Pennsylvania Consumers, our state has joined Operation Short Change, which is a new law enforcement sweep started by the Department of Justice and the FTC to stop companies from dooping consumers.
Pennsylvania can report any scam attempts to the Pennsylvania Attorney General's Office. Reporting this fraudulent and deceptive practices can be your part in helping to turn the economy back around.
Chase credit-card holders beware of rate increases
As lawmakers worked out credit card reform legislation earlier this year, card issuers argued that tough restrictions would make credit costlier for consumers. Now that tough reform has been signed into law by President Barack Obama, some lenders are making good on those threats.A Pennsylvania consumer just received notice that her Chase credit card's minimum monthly payment would increase from 2 to 5 % of her total balance. Unfortunately, for this consumer she is carrying around a $35,000 credit card debt with Chase. This means that her monthly payment will skyrocket from $700 to almost $1700 a month.
Chase's explanation for this hike was stated as "due to the poor economy and the legislation that's been passed, Chase needs to recoup its funds, and will only be applying this increase to select accounts who continuously carry balances".
As a heads up, The Financial Times reported on Wednesday that Citibank is raising rates on millions of its customers in exactly the way the new legislation is supposed to prohibit.
Pass the Credit Card Act NOW!!!!
The new credit card bill will help consumers by:
* Moves up the Fed’s effective date
* Restricts all interest rate increases during the first year
* Restricts interest rate increases on existing balances
* Increases notice for rate increase on future purchases
* Preserves the ability to pay off on the old terms
* Places limits on fees and penalty interest
* Requires fair application of payments
* Requires issuers to consider consumer’s ability to pay
* Prevents deceptive marketing of credit reports
* Provides sensible due dates and time to pay
* Protects young consumers
* Restricts issuance fees on fee harvester cards
* Requires enhanced disclosures
* Establishes gift card protections
Even the President thinks "Enough is Enough, on Credit Card Tactics" Just read it for yourself!
Well, when the President of the United States is trying to pass legislation and speaking out about credit card tactics - you know, enough is enough.We have been saying for years, "Make sure you READ the fine print". Credit card companies are famous for sticking in huge penalty fees, here, there, and everywhere. Most consumers are not aware of this until it happens to them.
Some credit card companies still include the universal default clause in its fine print. However, some companies have done away with it. But the ones who did away with it just found other ways to include high rate hikes for just one late payment or an over-the-limit fee.
Now, I understand that many Americans are defaulting on their debt, and that's why these companies claim the need to raise rates. One of the causes of this economic crisis was that too many people were living beyond their means with mortgages they couldn't afford, buying things they couldn't pay for, maxing out on credit cards that they couldn't pay down. And in the last decade, Americans' credit card debt has increased by 25 percent. Nearly half of all Americans carry a balance on their cards, and those who do have an average balance over $7,000.
I'm sure we all understand all of this. But the President is right, enough is enough. It is time we stop the vicious cycle. The credit card companies need to step up and make some changes to help out the economy. Remember, two wrongs never make a right.
Banks may have to prepare for Credit Card Write-offs
After writing off about $45 billion in bad debts during 2008, credit card lenders are bracing for the worst year in the industry’s history. Not only are losses spiraling, but also lawmakers are on the verge of passing a set of tough new consumer protections that could have a devastating effect on profits. This week, the Senate is expected to take up the Credit Cardholders Bill of Rights after the measure passed in the House with a strong bipartisan vote of 357 to 70.
Over the weekend, President Obama pressed lawmakers to approve the new rules, which would curb the ability of card issuers to raise interest rates retroactively on consumers and would require them to reduce hidden fees and penalties. He hopes to sign the legislation by Memorial Day.For the banks, the economics of the credit card business are increasingly troubling. As the recession has dragged on, cardholders have sharply reduced spending. New customers with strong credit histories are increasingly hard to find.
And the most troubled borrowers are so deeply mired in debt that card companies are willing to strike deals to remove late fees and reduce card loan balances. The average American household is saddled with nearly $8,400 of credit card and other revolving debt, according to Moody’s Economy.com.Obama pushes to put a tighter rein on credit card companies!!!!!
According to an article posted in the USA Today, President Obama is pushing Congress to send him legislation by Memorial Day that would put a tighter rein on the credit card industry."Americans know that they have a responsibility to live within their means and pay what they owe," Obama said in his weekly radio and Internet address released Saturday. "But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all-too common."
However, the banking community is fighting back. Credit-card executives maintain that new restrictions could backfire on consumers, making it harder for banks to offer credit or put credit out of reach for many borrowers. They also contend that the sweeping rules already ordered by the Federal Reserve, beginning next year, address many of the consumer-protection concerns expressed by the president and members of Congress.
Who is Jenny Anderson and why is she the new scare tactic for one debt collection company?
For some reason, someone at the debt collection company of CBV Collections decided to construct a facebook page under the name of “Jenny Anderson”.The facebook profile of “Jenny Anderson” was used as a tool to find and keep track of debtors. Since “Jenny Anderson” was a cute chick and was able to attract over 600 “friends” who owed CBV money.
A reporter was able to get an interview with Jenny Anderson regarding the inside story, who eventually begin to post things that gave away her identity.
I’m sure we will begin to see more and more lawsuits against debt collectors for this sleazy tactic! As a precaution, all consumers (we are all debtors), should not make their profile “public” and should always make sure they ONLY make it public to people they know.
Consumer files an FDCPA lawsuit because of an old credit card debt and wins $311,000
A man who was twice sued over a $3,800 credit card debt, received a $311,000 judgment after a federal judge determined a North Dakota law firm violated debt collection laws.It was quite simple actually. A firm had filed a lawsuit against this consumer, on behalf of a Colorado collection company, CACV, seeking to collect on a $3,800 debt he owed Chase Manhattan Bank, along with about $6,000 in interest and attorney's fees.
Just two years earlier this man had a similar lawsuit, also filed on behalf of CACV, dismissed because the five-year statute of limitations had expired.
The case stemmed from a credit card debt owed Chase from the 1990s.
Unfortunately, this consumer was disabled in 1990 after being struck in the head with an iron bar. He eventually began receiving Social Security benefits, which are exempt from collections.
The debt was re-sold to a collection company. Two years after CACV's first lawsuit was dismissed, Johnson, Rodenburg and Lauinger again sued McCollough on behalf of CACV.
A jury awarded McCollough $250,000 for emotional distress, the statutory maximum of $1,000 for violating the Fair Debt Collection Practices Act and $60,000 in punitive damages, also the maximum allowed in the case.
It seems as though it would be fair to say that consumers are getting tired of greedy debt collectors who do not follow the law.
Palisades Collection Company sues a man and loses lawsuit on Appeal!
An appeals court in New Jersey has overturned a $17,500 judgment against a debtor because the collection law firm that originally won the case admitted a page from the Web site Wikipedia into evidence.
A panel of appellate judges in the Superior Court of New Jersey – Appellate Division said in their opinion dated April 17 that Wikipedia is a “malleable source of information” and that it is “inherently unreliable.”
The case involved a debt collection action brought on behalf of debt purchaser Palisades Collection, LLC against Steven Graubard. Palisades’ legal representation claimed that Graubard owed $30,500 on a credit card account he opened in 1999 with Chevy Chase Bank. After a series of bank mergers, the account ended up with JP Morgan, who sold it to Palisades.
Palisades Collection Company sues a man and loses lawsuit on Appeal!
An appeals court in New Jersey has overturned a $17,500 judgment against a debtor because the collection law firm that originally won the case admitted a page from the Web site Wikipedia into evidence.
A panel of appellate judges in the Superior Court of New Jersey – Appellate Division said in their opinion dated April 17 that Wikipedia is a “malleable source of information” and that it is “inherently unreliable.”
The case involved a debt collection action brought on behalf of debt purchaser Palisades Collection, LLC against Steven Graubard. Palisades’ legal representation claimed that Graubard owed $30,500 on a credit card account he opened in 1999 with Chevy Chase Bank. After a series of bank mergers, the account ended up with JP Morgan, who sold it to Palisades.
Process Server for Debt Collection Companies ARRESTED today for "Sewer Service"
Today, Attorney General announced the arrest of the president of Long Island-based American Legal Process (William Singler) for engaging in a fraudulent business scheme in which the company allegedly failed to provide proper legal notification to thousands of New Yorkers facing debt-related lawsuits, causing them unknowingly to default and have costly judgments entered against them without the chance to respond or defend themselves.
I wonder if we will begin to see more lawsuits against process servers of this nature. Maybe it is time that everyone needs to check their credit reports to make sure that there are no judgments of this nature.
Debt Collection Lawsuits Not Being Served - Is this Part of the Collection Business?
New York Attorney General will be filing a lawsuit against one of the largest servers of debt collection legal action notices for failing to effectively notify debtors that legal action is pending against them, according to a media report.The case, according to the paper, stems in part from a report issued by non-profit law firm MFY Legal Services.
Lawyers at MFY claim that it is in the best interest of creditors and debt collection law firms to make sure debtors do not receive notice of legal action. One lawyer told The Times that “sewer service” – simply discarding court notices with no attempt to deliver them to consumers – is a part of the business model of collection lawsuits.
Outrageous! Creditors and debt collection companies bank on debtors not showing up to their court hearing in order for them to obtain a judgment against you. But not properly serving you so you have no chance in just apprehensible.
Video - Debt Collectors posing as Law Enforcement Officers and Lawyers
A Texas couple flees their home, in fear that the police are coming to arrest them. However, it was NOT law enforcement who was calling threatening to "pick-them up". It was a debt collector.Another couple thinks that the Maryland police department is contacting them, however after investigations, it appears to be a Buffalo debt collection company.
Dateline NBC investigates Final Claims Asset Locators, a debt collection company owned and started by a man who served time for armed robbery! Basically this lets us know, that there is nothing in place to check the background of someone who wants to buy debt portfolios, which includes people's personal and private financial information. Anybody can be a debt collector!! That is scary.
This short Dateline NBC debt collection video includes more debt collection stories and an inside look at the office of Final Claims Asset Locators.
Government requests the FTC to investigate debt collectors who chase surviving relatives for money
This post will follow up a recent post regarding debt collection of the dead. We shared how some collection agencies are focusing their practice on targeting survivors of the recently deceased. Is this a violation of the FDCPA? I don't believe so. Unless, like any other collector they harass, berate, threaten or lie to you while attempting to collect money. It is NOT a violation for the debt collector not to disclose to the survivor that they are under no obligation by law to pay their loved one's debt. This may change in the future.This news article states that Senator Schumer met with the chairman of the FTC and requested the agency look into this practice. Schumer asked for an accounting of how many debt collection firms engage in the practice and which companies that issue credit cards retain debt collectors for that purpose.
If the practice isn't declared illegal, the FTC could at least require debt collection firms to notify the relatives they contact that they have no legal obligation to pay the debts, Schumer suggested.
We will make sure to keep you posted as to any investigation results.
Jeff Suher with TIPS on negotiating settlements with debt collectors
We get a lot of questions about paying off debt.
Our firm is not a debt-consulting firm and we do not in any way negotiate debts on behalf of consumers.
However, there are a few things that a consumer should be aware of prior to negotiating payments and or a settlement with the debt collector.
Keep in mind that most debt collectors work on a commission. Therefore, the more they can get you to pay, the more money they will see in their next paycheck. Just be cautious, and don't over-spend yourself when making payment arrangements.
Also, keep in mind that your bad debt can only be reported to the credit reporting agencies (Equifax, Experian, and TransUnion) for up to 7 1/2 years from the original date of default. I'm only saying this because there is no statute of limitations for a debt collector to attempt to get paid from an old debt. Basically, if the debt is big and it keeps getting sold, collectors can attempt to collect for 20 years if they want.
Here are the tips to read over prior to negotiating debts.
IRS Will No Longer Use Debt Collectors
Well, the verdict is out. The IRS will no longer be using debt collection companies to collect on bad tax debts. Members of Congress, because of numerous complaints of abusive and deceptive phone calls, have criticized the program.
Congress, the National Taxpayer Advocate and the National Treasury Employees Unions argued that private collectors cost more and brought in less money than the federal employees. An agency program review found that tax debt collection was cheaper and more lucrative when performed by federal employees.
Dead People - The Collection Industry's New Goldmine!
The collection industry has taken a new turn. Many in this industry are now focusing their collection efforts to the dead. Yes, this is true. Debt collectors are finding it a little easier and a little more lucrative to contact family members of the deceased to get paid. How does this happen, you ask? Here’s how.....
Because of today’s advanced technology and improved database systems, it is quite easy for collectors to discovery when estates are opened in the probate court system. This gives the collectors plenty of time to file claims against the estate. If there are no formal estates to file anything against, the human touch comes into play.
A Minneapolis collection company, DCM Services (Deceased Collection Management), specializes solely in the collection of the dead, so to speak. Their employees train in what the company calls “empathetic active listening”. In other words, this helps the collectors to better handle one who has lost a loved one and how to get money from them at the same time!
Another major deceased debt collection firm is Phillips & Cohen, employing about 300 collectors. All of which are trained in the five stages of grief.
However, it is just a guess that neither of these deceased collection firms are trained to tell their callers that in most states and in most instances family members are NOT obligated by law to pay for their loved ones debt. How terrible is that!
The FTC Urges Reform of the Federal Debt Collection Law
Because of today's consumer debt, debt collection laws and economic situation, the FTC issued a report urgingCongress to modernize its Federal Debt Collection laws (FDCPA). The FTC believes these changes will provide better consumer protection without unduly burdening the debt collection industry.
The changes proposed within the FTC report are:
- Requiring that the “validation notices” that collectors are required to send to consumers also disclose the name of the original creditor; break down of the debt by principal, total interest, and total fees; and inform consumers of certain rights they already have under the FDCPA.
- Requiring collectors to conduct “reasonable” investigations responsive to the specific dispute the consumer raised.
This will require the debt collector to obtain better information from the original creditor (or whomever the debt was purchased from). This will make it more likely that the collection efforts will be for the right amount and most importantly, will be aimed at the right consumer.
Other changes proposed within the FTC report are:
- Prohibiting collectors from contacting consumers via their mobile phones, including by text messaging, without prior express consent; and
- Requiring collectors who use new payment technologies to obtain express verifiable authorization from consumers before accessing their accounts.
Recognizing the law generally should allow debt collectors broad use of communication technology to contact consumers and to prevent the consumer from incurring charges for these contacts or otherwise being subject to unfair, deceptive, or abusive tactics.
Please follow the link above to read more about the report issued by the FTC as well as consumer complaints reported to the FTC in 2008.
