Why Did Lenders Oppose the Helping Families Save Their Homes Act?
May 3, 2009
Maryland bankruptcy attorney Brett Weiss has written an informative article discussing lenders’ opposing the Helping Families Save Their Homes Act, even though it would seem to have benefited them by reducing the number of foreclosures.
Read Mr. Weiss’s article here.
House Passes Credit Card Holders’ Bill of Rights, Takes Aim at Abusive Credit Card Company Practices
May 3, 2009
On Thursday, April 30, 2009, the House approved a bill that would restrict certain credit card company practices.
The legislation, called the “Credit Card Holders’ Bill of Rights,” would eliminate sudden increases in credit card interest rates and late fees.
The bill would also prohibit “double-cycle billing,” retroactive rate hikes, and companies’ giving credit cards to people under age 18. [Read this October 2006 Government Accountability Office Report for more information about these abusive credit card company practices.]
The bill passed the House by a vote of 357-70 following lobbying by President Barack Obama and members of his administration.
If they become law, the new provisions wouldn’t take effect for a year, except for a requirement that customers get 45 days’ notice before their interest rates are increased. That provision would take effect in 90 days.
Similar legislation is before the Senate, where its prospects appear promising.
The above is excerpted from an AP news article.
Thank you to Georgia attorney Woodrow Ware III for suggesting this topic.
New Phishing / Smishing Scam: Text message tells targets to call 1-202-729-8214, says “your ATM card has been suspended.”
December 17, 2008
There seems to be a new phishing / smishing scam going around.
How the scam works:
(1) People receive a text message reading as follows:
“This is an automated message from Bank-Fund Staff F.C.U.. Your ATM card has been suspended. To reactivate call urgent at 1-202-729-8214.”
(2) Upon calling this number, targets are prompted by an automated recording to enter their bank card number, expiration date, and PIN number.
Who has been affected?
This scam seems to be affecting primarily Sprint cell phone customers. But, even if you are not a Sprint customer, you should still take the precautions described below.
Most targets report that they do not have (and never have had) a Bank Fund Staff Federal Credit Union account. It is unclear why the scammers referenced BFSFCU in their message.
What to do If you receive the scam text message:
- Do not call the 1-202-729-8214 number.
- If you suspect that your bank or credit union card has been affected, call your financial institution directly. Do not use the 1-202-729-8214 number to try to contact your bank or credit union.
- If you do call the 1-202-729-8214 number, DO NOT ENTER YOUR BANK CARD INFORMATION.
- Report the scam text message and / or file a complaint with:
- the Attorney General of your state of residence,
- your local police department,
- your cell phone provider, and
- the Federal Trade Commission.
Link to a Bank Fund Staff Federal Credit Union news alert discussing the scam.
You can also learn more about phishing scams at this Federal Trade Commission link.
Garnishments of Bank Accounts in Maryland
October 23, 2008
If a judgment creditor seeks to garnish your bank account, it is very important to respond to the garnishment notice.
IN MOST CASES, YOU HAVE 30 DAYS OR LESS TO RESPOND TO A GARNISHMENT.
If you ignore the garnishment notice, the contents of your bank account will probably be turned over to the judgment creditor.
Remember: in most cases, creditors need to get a final judgment against you before they can garnish your bank account.
If the creditor sued you in Maryland District Court and got a judgment against you, you can respond to the garnishment by filing the attached form with the court:
Certain funds are exempt from garnishment. A few examples include:
- unemployment income,
- some social security disability income payments,
- some workman’s compensation payments, and
- some joint account funds if the account is held by spouses as tenants by the entirety and the judgment is against only one spouse.
The above is not an exhaustive list of exempt funds. You will need to consult an attorney to determine if your bank account funds are exempt from garnishment based on the source of the funds.
You may also be eligible to declare an exemption of up to $6000.00. To determine if you are eligible for this exemption, contact an attorney.
Check 21 and Substitute Checks: Consumer Rights and Responsibilities
October 13, 2008
A federal law called Check 21 went into effect on October 28, 2004. This law was designed to make it easier for banks to process check transactions. It made this process faster and easier by allowing banks to process checking transactions using copies of checks.
This process involves the use of “substitute checks.” Substitute checks are paper copies of the front and back of the original check.
Some banks will send their customers copies of these substituted checks along with their monthly checking account statements. If a consumer finds a problem or error with a substituted check, the Check 21 law provides a special procedure that permits the consumer to ask for a refund called an “expedited recredit.”
If you find a problem with a substitute check, you should contact your bank no later than 40 days from the date of your monthly statement or from the date your bank gave you a copy of the substitute check. Tell your bank you are requesting an “expedited recredit.”
But, you may have other protections from fraudulent checking transactions even if more than 40 days have elapsed. Contact an attorney for additional information.
Unauthorized Checking Account Transactions: Consumer Rights and Responsibilities
October 13, 2008
Our office often hears reports of fraudulent activity on consumers’ checking accounts.
Once someone has your bank routing number and account number, he or she can make fraudulent transactions. So, consumers should guard this information carefully.
Customers should also review their checking account statements carefully each month for unauthorized transactions.
Consumers must report unauthorized checking account transactions to their bank within 60 days of the transaction to receive the all of the protections available under various banking laws.
Under some circumstances, a consumer may not be able to dispute an unauthorized checking account transaction after the 60 day period has passed.
Consumers should also be aware of the dispute procedures that apply to substitute checks. Please see the post titled “Check 21 and Substitute Checks” for more information.
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