$2.5 Million Civil Penalty Assessed to Debt Collection Company

     In United States of America v. Asset Acceptance, LLC, Asset Acceptance LLC, a major U.S. buyer of consumer debt, agreed to pay a $2.5 million civil penalty to settle charges that it used deceptive collection practices. 

     Asset Acceptance, LLC purchases old consumer debt from credit card companies, health clubs and other creditors.  An investigation revealed that it failed to investigate when a consumer said debt information was wrong.   In some cases, consumers would not learn that Asset Acceptance reported them to a credit bureau until they applied for a loan. Believing the debt to be invalid, consumers would sometimes pay the debt just to be sure they would get their new loan.

     Asset Acceptance, LLC  would deceive consumers by claiming to sue in order to collect the debt, knowing that they could not because the statute of limitations to sue for the debt had already passed.

     According to the Federal Trade Commission, Asset Acceptance's debt collectors would sometimes misrepresent the amount of a debt or give credit reporting agencies inaccurate information about what was owed. 

     In the complaint filed against Asset Acceptance, LLC, the government claims that as of September 30, 2010, Asset Acceptance had 34 million accounts with an original value of more than $42 billion which it had purchased for 2.54 percent of the face value.

PJRLAW: MORTGAGE FORECLOSURE DIVERSION PROGRAM

PJRLAW: MORTGAGE FORECLOSURE DIVERSION PROGRAM: MORTGAGE FORECLOSURE DIVERSION PROGRAM Looks like the Cumberland Court of Common Pleas is taking steps to assist homeowners facing foreclos...

MORTGAGE FORECLOSURE DIVERSION PROGRAM

MORTGAGE FORECLOSURE DIVERSION PROGRAM

Looks like the Cumberland Court of Common Pleas is taking steps to assist homeowners facing foreclosure.  It is anticipated that later this year a mortgage foreclosure diversion program will be instituted.  The program is designed to provide a sixty (60) day stay for all newly filed mortgage foreclosure actions where the property is an owner occupied residential property.  During those 60 days, property owners will have the ability to participate in this program which will give them the opportunity to meet with a representative of the lender.  A meeting will take place and the parties will attempt to work out reasonable arrangements before the mortgage foreclosure action proceeds. 

Homeowners will have the option of having an attorney appointed to assist them with the negotiations.  This will be provided to homeowners without cost to them.  MidPenn Legal Services will serve as the representative for homeowners who qualifying based on financial factors.  Those households that do not qualify for assistance by MidPenn, the program will rely upon private attorneys willing to provide pro bono services pursuant to a limited representation agreement. The attorneys will not obligated to provide continuing assistance to the homeowner after the initial conference.  If the matter is not resolved through the initial conference, the attorney and the homeowner may enter into a separate agreement for legal services representing the homeowner in the mortgage foreclosure itself.  Look for more information from the County.