Daily Archives: October 26, 2017

Consumer Bankruptcy Update

Bankruptcy Petition Preparers

Bankruptcy Court
Bankruptcy Court

Bankruptcy petition preparers remind me

of the Monty Python “Spam, spam, spam, . . .”

song, only, SCAM! SCAM! SCAM!

Another one bites the dust.

We have had lots of these in Detroit, this one worked in Illinois and Missouri.

EAST ST. LOUIS • A woman from St. Peters has been indicted in federal court here and accused of defrauding people filing for bankruptcy.

Prosecutors say Phebe Ibrahim, 50, overcharged clients, created false documents claiming that clients had credit counseling and tried to conceal her role by leaving her name off of documents.

In Detroit, there is an Access to Bankruptcy Court program which will find you a qualified bankruptcy attorney if you qualify with low enough income.

Credit Repair Companies

Speaking of scams:

  • Charged illegal advance fees: Federal law bars telemarketers and certain companies from requesting or collecting fees for credit repair services until certain conditions are met around the delivery of services. Prime Marketing Holdings, however, charged a variety of fees for its services before demonstrating that the promised results had been achieved as required by law. Specifically, the company charged consumers initial fees that it, at times, claimed were required to obtain special credit reports for consumers. The company also charged set-up fees totaling hundreds of dollars and monthly fees that often equaled $89.99 per month.
  • Misled consumers about the benefits of its credit repair services: Prime Marketing Holdings misrepresented its ability to remove negative entries on consumers’ credit reports. The company also misrepresented to customers that its credit repair services would, or likely would, result in a substantial increase to consumers’ credit scores, generally by an average of 100 points. The company lacked a reasonable basis for making these claims.
  • Misrepresented the costs of its services: In some cases, Prime Marketing Holdings failed to disclose to consumers during sales calls that they would be charged a monthly fee.Failed to disclose limits on “money-back guarantee”: Prime Marketing Holdings misrepresented that it offered a money-back guarantee if consumers were unhappy with the results of the company’s services. The company also failed to clearly and conspicuously disclose that the guarantee had significant limitations, including that the consumer had to pay for at least six months of services to be eligible for the guarantee.
  • If it sounds too good to be true . . .
  • Not many shortcuts in life.  The way to have good credit, is to pay, or repay, on time.  Period.
  • Not sure why these dots keep appearing on the left, cannot get rid of them.
  • Anyway, credit repair places are not supposed to charge anything until after they fix something.  And you can do any legitimate fixes on your own, without paying anyone.
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