Midland Funding and Portfolio Recovery Settle Wrongful Debt Collection Claims With the CFPB

By: Robert J. Nahoum THE PROBLEM: On September 9, 2015, government watchdog the Consumer Financial Protection Bureau announced that it had reached a settlement with infamous debt buyers Midland Funding and Portfolio Recovery over illegal debt collection practices. According to a statement released by the CFPB: “Today the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest […]

Are Pension Benefits Exempt From Debt Collection?

By: Robert J. Nahoum THE PROBLEM: After falling on hard times debt collectors have been after you, some have even sued. A judgment has now been entered against you.  You are on a fixed budget and your only sources of income are social security and pension benefits?  You’re now wondering if the debt collector levy on your pension to satisfy […]

What is a Deficiency Balance?

By: Robert J. Nahoum Secured debts are debts in which collateral (property) has been pledged as security for payment of the money lent.  The two most common examples of secured debt are mortgages on home loans and title liens on car loans.  In each case, if the consumer defaults on the loan, the bank can take the property and resell […]

The Federal Trade Commission Publishes Statements on the Debt Buying Industry Including a List of Banned Debt Collectors

By: Robert J. Nahoum In a blog post, the Federal Trade Commission published important statements about the debt buying industry and its efforts to self-regulate including a list of 75 debt buyers banned from participating in the debt collection industry.  Below is a reprint of the post prepared by Reilly Dolan, the FTC’s Associate Director, Division of Financial Practices . “Last year the FTC […]

Does the FDCPA Cover Money Owed to the Government?

By: Robert J. Nahoum THE PROBLEM: You’ve been getting endless debt collection calls from a debt collection agency trying to collect a government resulting from a speeding ticket, a housing code violation, a criminal fine or even an overdue library book penalty.  The debt collector has been harassing you with incessant calls, false threats and misleading information. Can you sue […]

What is a Class Action Consumer Lawsuit?

By: Robert J. Nahoum Consumer lawyers are, as the name implies, lawyers who focus their practices on consumer issues.  What are consumer issues?  Consumer issues are those legal issues that arise when regular people (as opposed to businesses) go out into the market place to buy goods or services.  For example – buying a car, getting a mortgage to buy […]