Archive for Frauds and scams
Don’t Deliberately Fall Behind on Your Mortgage to try for a Modification
I sat in my Lehigh Valley office Friday with a person who was advised by an out of state mortgage modification company to stop paying her mortgage in order to qualify for a HAMP modification.
This is stupid.
The purpose of HAMP is to give people who are struggling to keep up with their mortgage a break. [...]
The Collection Industry is Training Collectors to Violate the FDCPA
The front cover looks menacing enough, but what was inside was downright frightening… if you are a past due on a credit account.
Kenneth Besser wrote Collections 101: A Training Manual for Entry Level Debt Collectors.
The Fair Debt Collections Practice Act specifically makes harassing a debot a violation.
Section 806(5) says that harassing a debtor is causing [...]
Beware Out of State Loan Modification Companies Soliciting Chapter 13 Filers
Recently, a mortgage modification company from outside the area has been soliciting Chapter 13 bankruptcy filers in Philadelphia and Allentown with an offer of modifying their mortgage.
Getting a mortgage modification after a Chapter 13 case is filed is tricky enough, if the Chapter 13 plan authority been confirmed, it requires permission from the court to [...]
Debt Settlement Companies Target Minorities?
I heard a debt settlement company’s advertisements a radio station in Allentown Pennsylvania.
Maybe you’ve heard it, it has something that sounds like gospel music playing in the background and the song has a lot to references to freedom. I’m not against freedom, but it’s clear that they were targeting a demographic, and that demographic is [...]
Beware the Bankruptcy Petition Preparer
I saw an advertisement on craigslist yesterday that piqued my interest.
It was a simple ad really, Chapter 7 bankruptcy $399. So I started thinking what’s the catch. Generally speaking attorneys in the Lehigh Valley charge anywhere from $1600-$3000 for Chapter 7 bankruptcy service depending on the complexity of the case.
So I open the add and [...]
Fraud Alert: Lowering Interest Rate Phone Call
I got a curious call at the office Friday afternoon, and my curiousity probably saved someone thousands of dollars. I got a message that said “press one to lower your interest rate,” and I pressed it.
The call came in around 6:15 PM, and a man who claimed to be from Visa/Mastercard called saying [...]
New Mortgage Modification Fraud Alert
I saw a new fraudulent scheme show up in one of my cases, and this one has the potential to cost you a lot of money.
I have a current client who is pursuing a mortgage modification. I will not mention which mortgage company because they are a major player and I do not believe they [...]