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Everything posted by Methuss

  1. Yep. Trying to explain banking and economics always has a political edge to it. Can't be helped. As long as it doesn't degenerate into Red vs Blue....
  2. Recall I was in banking... The bank cannot create money out of thin air. Fractional Reserves is where a bank only has to keep a certain amount of deposits on hand but is free to lend the rest out for a profit. They still cannot lend more than the deposits that have been made into the bank. So if a bank's fractional reserve is 3% (which is the current reserve level for a bank valued between $10.7 million and $58.8 million -- larger banks must reserve 10%) then they are free to lend the other 97%. Most banks do not run this close to the limits because it risks being seized by the FDIC and force-merged with another bank. But it is not uncommon to see banks of this size lending out 90%-94% of their deposit amounts. So if they only have to keep 3-10% reserve, a 100% default would result in crushing losses of personal funds for deposit account holders.
  3. Um yeah. Here's one of many top-10 lists of stupid uses of public funds from the latest stimulus package: 10. A $427,824 research grant to design better video games for senior citizens based on their unique “game-play needs”. 9. Funding of a Dartmouth College study involving “sexual arousal in anesthetized female rats” ($9,870). 8. Funding of a $168,300 SBA loan to the Escape Massage parlor in Midlothian, VA. 7. Funding a $447,492 Univ. of North Carolina study on the development and use of “African American English” amongst 70 adolescents. 6. $10,346 for a heating and cooling company to provide “escort services” for other companies performing a laser scanning survey at a courthouse in Honolulu, Hawaii. 5. An academic study comparing outcomes of the concurrent and separate use of malt liquor and marijuana ($389,357). 4. A $225,000 study at Ohio State University on the relative and combined impacts of air pollution and a high fat diet on obesity development. 3. A $712,883 research grant to develop “machine-generated humor“. Project will design artificially intelligent “comedic performance agents”, and will “deploy them both on and off-line for the enjoyment and illumination of everyday citizens”. 2. A $54 million project to relocate one bridge for the Napa Valley Wine Train (!) in order to mitigate the possible impact of a “100 year storm event”. And the number one most ridiculous use of stimulus funds… 1. $9.3 million (!) to fund the design and development of a “coordinated colony of robotic bees“! How many jobs were created by all of these ten items combined? Only twenty. Well actually 19.79....Several of the jobs were for interns lasting less than a year. Seriously our politicians waste hundreds of millions of dollars on stupidity like this each year. Cut that waste at the least even if it makes up only a couple of percent of the GDP.
  4. You can't borrow your way out of debt. It's like trying to dig yourself out of a hole by trying to dig out the bottom. These fools in government need to stop spending more than the income or this is going to end eventually with a sovereign default. I'm actually somewhat happy that S&P downgraded the US triple-A rating. If the others follow it means the pin-heads in office have finally hit the wall and will have to change the way they do things. I think the one thing that enraged me more than anything in the news about the downgrade was Obama saying "No matter what some agency may say, we have always been and always will be a triple A country." I don't believe I have ever heard a more arrogant, delusional statement from a President...ever. Then to top it off he and his administration attack the rating agency leadership demanding their resignation. Unreal. Vote this egomaniac out next year is all I can say. Unfortunately, this little bit is incredibly naive. If you zero out all the debt, you also zero out people's money by an amount equal to the principal eliminated. How do you think banking/lending works anyways? I deposit $100 in a financial institution essentially giving them a loan which they pay me a whopping .05% (woo-hoo). They then take that $100 and lend it to someone else at a higher rate and keep the difference. If the borrower defaults, the lender still owes me $100 which they cover from the percent they make on loans they are still getting paid on. If everyone zeros out the debt, all the deposits used to create that debt also are zeroed out. The FDIC can't cover those losses and the only thing the government could do is print more money, which devalues the currency.... Think Germany after WWI where the deutchmark was worth so little that a wheelbarrow full of them could barely buy a loaf of bread. So no, wiping out all the debt with a massive default is not the answer. The answer is stop spending more than you make. Stop borrowing. And work your way out of the hole over time. Even our government will eventually have to do that or else collapse under the weight of their stupidity. We've been there before and the world is still here. Most of you are probably too young (or haven't studdied) the financial meltdown of the 1980s during the Carter administration when home mortgage loans hit a stupifying 18% and automobile loans were in the 30% range to those few that could even get one. These issues will eventually shake themselves out after a prolonged painful period. But civilization is not going to collapse over it. Americans could use a little more financial restraint and a little less gotta-have-it-now mentality. And the stupidity of people making $30k a year and driving a Hummer should eventually become the rare exception, not the norm it is today.
  5. Check with AttorneysForConsumers to see if they will take the case. In general, they work on contingency. You pay nothing unless they win and they evaluate your case at no charge. I have worked with them myself.
  6. Seriously you are not bankrupt over the amout of debt you are saying you are being sued over. If there was another two zeros on that then yeah I would say file BK. BK7 can result in loss of your house even if your payments are current! The law currently allows a lender to take a house back in bankruptcy if it is worth less than is owed...even if the debtor is paid current. So don't mess with this unless you have to. But the amount you are describing can be handled with a budget, self discipline, and addressing the income issue. You may have to work two or even three jobs for a short time to deal with it, but that's all. You could probably knock out the smallest credit card by simply selling some stuff and negotiating a settlement. As for the summons, SHOW UP IN COURT. If you don't they will get whatever they ask for by default. You may still get a judgment on you but if you don't show up that is a given fact. Letting it get to the point of being sued is going to cost you, but a BK will cost you far more.
  7. If you are definately filing for bankruptcy, don't waste your time on them. As long as you file before any judgment is entered against you, you can take the proof of filing in to the court and have the case dismissed with prejudice. Once you are discharged the creditor is barred from filing again so asking for dismissal with prejudice makes it easier for the judge to grant while saving face.
  8. Even after WellsFargo took over Wachovia, they have no legal right to put a new tradeline on your report in their name at all after the discharge. Firstly, they cannot remove the Wachovia tradeline or update it. WellsFargo's agreement with the CRAs doesn't give them authority to change tradelines not in their name. Second, since you never had an account with WellsFargo under any account number, it is false information to report it even if they list it IIB, zero balance with the correct dates. The account number never existed prior to the discharge nor did your liability to WellsFargo. So here's what you do: Get WellsFargo's corporate office address and send a certified letter to their address ATTN: LEGAL DEPARTMENT. In that letter outline the reasons why the tradeline is a violation of the FCRA and the permanent injunction per above and give them 30 days to correct and send you verification of the correction. Include a copy of the page of the credit reports showing the error highlighted. Blackout listings that are not related. If they do so, check your credit reports after 45 days to verify correction. If the reports are not correct your issue is with the CRA(s), not WellsFargo. If WellsFargo ignores your request send a second certified letter to the legal department with a copy of the first letter and a copy of the certified card and plainly tell them that this is a serious matter and they need to respond with all due haste. Give them 15 days. During all this keep copies of everything in a file. This is your evidence of willful violations if they keep on ignoring you and will form the basis of your complaint to the bankruptcy court for punitive damages and injunctive relief.
  9. Quite correct. We call them "nut-case" letters. By asking them for all sorts of stuff that they would have to show in a courtroom during a lawsuit, the idea is to make further collection attempts too expensive and troublesome to continue with. Make no mistake, in a lawsuit they would have to produce this information to prove up a debt, but not outside of a court. The only thing the FDCPA requires of a collector is that they obtain written verification of the amount of the debt and then forward that verification to the debtor. That does mean that the collector cannot simply reprint information from their own records. And it also satisfies the other part of the FDCPA by verifying the original creditor since the verification has to come from the OC. Case law says that a collector can, instead of responding to a DV letter, simply cease activity on the collection account.
  10. Links to full stories please, not snippets that require subscriptions to read.
  11. Pull your credit report and get the last action date for the Providian account. The dates on all the handoffs don't matter. It's when you last paid on the account, so that would be 30 days prior to the first reported late pay. That will establish the start of the Statute of Limitations period. If it is now outside of Statute, then not only can you tell Winn to go pound sand, you can sue them (if you want)... for threatening to file suit on out of Statute debt and for misrepresenting the legal status of the debt.
  12. 1. The FDCPA says they have to sue you where you live or where the contract was signed. But the FDCPA also says they cannot sue you in a location that makes it impossible for you to appear to defend yourself. So essentially they have to sue you where you live. The SoL is applied by the court the lawsuit is filed in. It is not "exportable" except in rare circumstances. So you use the AZ SoL. 2. The SoL clock starts the day you were late on the agreed upon payment after which you never became caught up. 3. The dismissed judgment means nothing to credit reporting unless you are trying to remove a public record entry for that lawsuit. 4. No sense kicking that dragon while he sleeps. If you dispute a tradeline the CRA will contact the collector regardless of if your "proof" supplied is valid. The CRA will even give them your current address. The more important thing here is why did you break the lease? If you had a legal reason for doing so, such as having asked for required repairs to maintain habitable conditions in the rental and the landlord failed to do the repairs, then you don't owe anything as long as you kept documentation of the valid reason. State and local laws vary on this subject so you would have to look up the landlord-tenant laws for the area in which the rental was to see if you have this defense. But if you simply broke the lease for convenience, then it is a debt legally least up to the point where they re-rented the unit or the contract expired. Landlords do not get to double-dip on rent if they got a new tenant. You would only owe the gap while the rental is vacant. If it is a legally owed debt, it can stay on your credit report for 7.5 years regardless of SoL. Statute of limitations is just a defense to a lawsuit, nothing more.
  13. Under the FACT Act amendments to the FCRA, if you dispute on-line the CRA automatically gets the extra 15 days. Not only that but you have no proof you can take into a courtroom if they do not do right by your dispute. They can also call any future dispute "frivolous" and completely ignore you if they verified an on-line dispute I cannot say it enough. NEVER NEVER NEVER dispute tradelines online. You are just rolling the dice...maybe it will turn out, maybe they will screw up and you have blown your chance to get it fixed for years. If you really have an innacuracy and are not just trying to get a negative, but true tradeline it by USPS certified mail with a return receipt card. This is the only thing the law defines as valid evidence you can take into a courtroom later if it comes down to it.
  14. There is no sense in sending a second or even a third DV letter once they respond to the first. Anything that happens after that is a dispute. The validation process is you are simply in disagreement with them on the validity of the alleged debt. That is the other part of this that collectors seem to willfully forget. The debt is alleged. It is not proven until a judge says so or you accept what the collector presents. Period. Yet they act like its been brought down from the mountain on stone tablets just because someone handed them a spreadsheet with a few unprovable details on it. In your case. I say horse poop. Anyone can pull mortgage documents from the county court records and print them out. They are public documents in almost every state. They need to provide more proof than that.
  15. Unless the truck is $2700 behind in payments based on the monthly payment, just send the the payment address with the last statement received for the full balance. All you have to do is bring it current under the lien conditions and they cannot repo it. Seriously, do you think they won't cash the check if you mail it in to their lockbox address? Once you have the canceled check in hand they would have a hard time standing in front of a judge saying they have a justification to reposess over the few remaining dollars...especially if you are paid ahead of the lien terms. Then go down to the DMV and show you have paid it off and tell them the bank is refusing ot release the lien. If you can show it is truely paid off, then the DMV may be able to issue new title under an adverse posession affidavit. If a repo man shows up after you have the cancelled check, call the sheriff (police are not properly trained to handle these situations so don't call them) and have the ding-dongs arrested for trespassing if they refuse to leave and never come back. You can store the truck in a you lock-it-and-keep-the-key type storage places if you are concerned about them breaking into your home location until the matter is settled.
  16. I wasn't aware that sovereign immunity covered willful harassment for no legal reason. Hrm. That may be why I'm not finding much case law...either that or it is being adjudicated in kangaroo "tax courts" which don't file their records publically.
  17. There is no trick. Some people just take the time and effort to help others... for months or, as in my case, about a decade. As you are new, please be courteous and don't hijack threads with off-topic questions. We have a section for off-topic.
  18. OK so I rarely post questions these days but this time I am having a hard time finding info on this particular issue: I moved away from the State of Illinois almost four years ago. Prior to that my wife and I ran a retail on-line business there and filed sales tax returns. When my wife was pregnant we essentially shut down the business because we didn't have the time. We moved away from Illinois after that without making a single sale to an in-State customer. While my wife was pregnant I admit I neglected to file some return papers. And I got a call and letter about it. I sent in the papers for the missed time period with all zeros on it because I had no sales tax collected. Since then I have gotten letters and calls from them threatening me with unspecified collection action for missing those same returns. Every time I resend it in by fax, mail or whatever means but these ding a lings still keep bothering me at least once a year for the same papers. Now I understand that Illinois is essentially bankrupt (and the government was always corrupt), but either this is incredible levels of incompetance on their part or some attempt at fraud against former residents. Anyone have any idea how to handle these bozos and shut this down for good? I'm really getting tired of resending the same forms over and over and getting these threats. Legal precedent for tax office harassment or anything like that I can review? I'm coming up empty...
  19. The best information I have been able to find is that a 1099 (any subsection) has to be filed by the last day of February in the year following the event. In other words if they determine anytime in 2011 that a debt is uncollectable then the document must be filed by Feb 28, 2012. If the amount forgiven is under $600 filing is "optional." If it is over $600 it is required. Of course once a 1099-C is issued, no one can ever collect on that debt again. It was forgiven and the debtor paid taxes on it as income. It gets kind of fuzzy, legally, as to what stipulates a debt is uncollectable and forgiven. It also gets fuzzy when dealing with junk debt buyers who paid pennies on the dollar. Can they issue a 1099-C for the whole thing or only what they paid for it? Problem is the IRS doesn't care about those things. They only care about what taxes are owed.
  20. If you are under the gun to get this off quickly, you should get a lawyer to handle removal of the public record from your reports. That is the fastest way to go about it. If you have the time to do it yourself, just start the dispute process as you would with any other bad tradeline on your report. Just state that the judgment is your father's not your own and that the court records clearly show his, not your own, social security number. This is pretty cut and dry. I'd use a lawyer myself because the CRAs are full of idiots...I fully expect that if you try on your own they will say it is yours even with your father's SSN clearly on the court records... if they tell a lawyer they aren't removing it, then the lawyer can nail em for damages quickly and ask for injunctive relief.
  21. CRAs have 30 days to respond/correct errors on credit reports. They can extend that an additional 15 days if they get new information fromt he consumer during the investigation period. I advise people to wait the full 30 days before even attempting to contact the CRAs about a pending investigation because the CRAs have a habit of calling a phone call from the consumer "additional information" even if nothing new was presented just so they can claim the extra 15 days. Send the debt collector a letter that says the debtor has died and the debt died there too. Warn them that pursuing debt against the wrong person is fraud and will not be tolerated.
  22. You have to look at it from their standpoint. If you are always late and in the grace period then they will view you as being a risk of stopping payment entirely, and rightly so. I cannot stress enough that if you are not current when you file you are at risk of loosing the house. Especially if you send your payments to a servicer. Servicers make money on foreclosures...moreso than they do on processing the payments. They have their own staff attorneys, appraisers, etc. They get paid these fees even if the bank or fund that owns the Note looses money in the final sale. In some cases they even broker the sale of the home after foreclosure. So don't kid yourself with these servicers. They have no interest in keeping you in the house. They profit from taking it.
  23. The short answer is you must be CURRENT. That means not a single day late. Not even in the grace period. If you are, then you stand a good chance of loosing the secured property. Reaffirmation is not guaranteed. The lender does not have to agree to reaffirm in Chapter 7. And both your attorney and the Judge will have to sign off that they believe a reaffirmation is not going to cause you further financial harm. Also, be aware you can loose secured real estate property if the real estate is not adequately secured. In other words, if the property is worth less than you owe. The bankruptcy code allows a lender to ask the court to be released from the stay and foreclose if the property is not adequately secured. You can thank Congress for that lovely stuff when they passed BAPCA. ps. I lost a house in my BK7 because of being inadequately secured. Lender didn't have to reaffirm even though I asked to.
  24. Florida permits service to last known address by mail as well as by personal service by a process server. If they cannot effect service this way, all they have to do is publish the notice in a local paper per statute and that is legal. Florida even allows for waiver of summons if it is in the original contract in which case all they have to do is mail the notice of case commencement to you by 1st class mail. If you plan on contesting the service of summons, you best pull the case file from the court to see how service was rendered to make sure you have recourse.
  25. While I agree with FlyingFir that it may come down to a lawsuit to get this resolved, it is still necessary to exhaust all non-judicial methods of resolution before taking it to court. This is so you can build your case to show wanton disregard by Chase for their responsibilities under the law. Start by sending them a strongly worded letter that they need to correct this issue immediately. The basis for that can be that you were an 'Authorized User' only on the account or that the spouse added your name without your knowledge or permission. Spousal ID fraud is rather common...but it is still identity fraud. The first letter will probably be ignored. Send a second. Keep good records. After the second is ignored or you get no adequate response, then take it to an attorney and have the attorney write a letter to have it fixed. If even after all that they still don't cooperate, then you file the million dollar lawsuit and send out a press release. Many times people find themselves up against these monster banks that have I.D.Ten.Ts that just don't do things right (if at all). There have been several cases recently where banks ignored judgments against them and had to have their local branch offices foreclosed or have Sheriffs show up to sieze assets to get upper management's attention. And it may come to that. But more likely it will settle before a judge has to rule if you build your case and have all kinds of documentation that you tried to resolve this with them out of court first.