US on Pace for 70 Percent Increase in Foreclosure Rescue Scams in 2012

This is a 2008 documentary produced by the Northwest Justice Project about foreclosure rescue scams. Four years later, these schemes remain a real problem, as the Chicago Tribune reported on October 19, 2012, that the Treasury Department’s  Financial Crimes Enforcement Network said reports of foreclosure rescue scams rose during the first half of the year. “Nationally, if the reports of suspicious activity continue at their first-half pace, the total for 2012 could be as much as 70 percent greater than in 2011,” the Tribune reported.

Debra Olson, executive director of the DuPage Homeownership Center, told the Tribune that she thinks there are “plenty of incidents of scams that are never reported” because people are embarrassed. Olson told the Tribune that she believes that there are people who have been taken advantage of, but do not even know it. Many homeowners throughout the country in need of foreclosure help paid several thousand dollars to someone promising to help them save their homes, realizing too late that they were duped.

“By the time people come to us, more than likely they’ve been the victim of the fraud,” Olson told the Tribune. “The sad thing is by the time they come to us, they’re so much farther in arrearage.”

As the Tribune noted, “while authorities might be able to shut down bogus companies and order them to pay fines and restitution, it is often too late for victims.” Michael Dickman, an attorney at the Legal Aid Society of Metropolitan Family Services in Chicago, estimates he is working on 150 cases. Dickman told the Tribune, “It’s truly like we’re standing behind a dike and we have 10 fingers and there’s 100 holes in the dike.”

If you are facing foreclosure, do not let a bad problem become worse by falling victim to one of these rescue scams. Filing Chapter 7 or Chapter 13 bankruptcy can be a legal way to stop foreclosure proceedings, end debt collector harassment and reorganize your finances. If you are facing foreclosure, it is in your best interest to contact our firm at (866) 930-7482 or complete the form on this page to let our Chicago bankruptcy lawyers see what Chapter 7 or Chapter 13 bankruptcy could do for you and your family.

Benjamin Brand Services – Chicago bankruptcy lawyers

Layaway Looks Attractive, But Many Plans Can Cause Ugly Problems

On Monday, we discussed the increase in seasonal work this year that could help a lot of families in the Chicagoland area during the holidays. While that additional income could make a real difference, this 2011 video from WNXV-TV addresses another issue that can cause problems during Christmas shopping: layaway plans.

Chicago Tribune consumer news reporter Gregory Karp noted in a column published on October 12, 2012, that on its face, layaway “seems harmless enough.” However, Karp said layaway is “illogical” and wrote, “Almost nobody should use it for holiday gift purchases this year.”

While many fans and proponents of layaway claim that such programs allow consumers to save on the interest they would incur by using a credit card, Karp called that a “straw-man argument.”

“Credit cards are not the alternative to using layaway,” Karp wrote. “Paying cash is.”

Karp also noted the statement of New York’s US Senator, Charles Schumer, who demanded last year that retailers display the true cost of layaway fees in credit card terms. Schumer said a $100 purchase with layaway fees can have the same effective interest rate as a credit card charging 81 percent annually.

“These layaway programs are nothing more than hideaways for sky-high interest rates that consumers would never tolerate with a credit card,” Schumer said in a news release last year. “The holiday season is supposed to be about giving and not taking, but these layaway programs are taking advantage of people and charging them outrageous interest rates, under the guise of making it easier and more affordable to shop.”

Karp also addressed issues with initiation and cancellation fees that can create additional headaches. As thousands of families all over Illinois prepare for the holiday shopping season, we encourage you to read the fine print of any layaway agreement you might be considering. And if foreclosure or credit card debt is already creating problems, you could gain some peace of mind by filing Chapter 7 or Chapter 13 bankruptcy before the end of the year. Timing could be a critical element to successfully filing Chapter 7 or Chapter 13, so it is in your best interest to take action today. Contact our firm now at (866) 930-7482 or fill out the form on this page to see let our Chicago bankruptcy lawyers see how we can help.

Benjamin Brand Services – Chicago bankruptcy lawyers

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