Times Articles on Lemons, Nonprofit Payday Loans, Responses to the Mortgage Meltdown, and More

It's time for another roundup of recent New York Times articles on consumer law, including some articles that don't have anything to do with the mortgage crisis.  On Sunday, the Times ran a piece on cars that had been declared lemons but that were nevertheless resold without being so designated.  An excerpt: 

To see what happens to lemons, Experian Automotive, which specializes in collecting and analyzing automotive data, picked at random 1,000 Florida vehicles that were branded lemons, from a list on a state Web site. Experian found that 555 had been taken out of the state. And four-fifths of those 555 cars no longer had titles branding them as lemons, according to an analysis conducted for The New York Times.

The article also notes that some states require that lemons be so labeled, discusses litigation by those who have unwittingly purchased such lemons, reports on the FTC's failure to act, and quotes consumer advocates as suggesting a national database of lemons is needed.

Today's paper included a report on nonprofit payday loans, while yesterday's included an editorial titled "The College Credit Scam" in which the Times called upon colleges that allow credit card issuers to solicit students on campus to take steps to protect vulnerable students, an issue that is highlighted in the documentary "Maxed Out."  The editorial concluded "Congress, when it convenes next week, should move forward with planned legislation that would tighten federal supervision over the credit card industry while improving disclosure laws and outlawing deceptive practices."

But the mortgage meltdown has also come in for its share of attention.   Last Friday the Times reported here on state statutes intended to limit the damage from subprime lending.  North Carolina, Maine, Minnesota, and Ohio have enacted such statutes and other states are considering them.  And an article in today's paper reports on possible federal responses to the problem.

Comments

[lynz]

I just read the NY Times piece on payday loans. Turns out the Goodwill is offering a payday loan alternative for $9.90 per $100 for two weeks. This equates to a 252% APR. Their goal is to break even.

Reading this made me realize that the APRs on these loans are misleading. I thought it was terrible when I read that payday lenders charge 391% APR ($15 per $100 loaned). But if 252% APR is break even for a charity who doesn't have to pay taxes, the amount charged for for-profit businesses don't seem that outrageous.

[Jason Nedley]

Who Killed Cleveland? You see him every time you go to the bank.

Link to story in Cleveland Scene:

http://www.clevescene.com/2007-08-29/news/who-killed-cleveland/

[K.L. Lewis]

I would have to say that if a non-profit must charge 252% to break even than maybe we need to cut the payday lenders a break. I have some advice for the people that don't like the payday loan industry, "DON'T USE THE SERVICE!" Nobody holds a gun to anyones head! It's a free country and if a person wants to burry themselves in debt, it's their life! I have an uncle that drinks too much but it's leagle and within his rights so I leave him alone. Sure, I've mentioned to him he should slow down but you can't make people take your advice! I think the people that get in trouble know they are over extending themselves but they just do it anyway. Others use the service responsibly and all works out fine. It's up to the individual to do the right thing.

[EnTrust]

Foreclosure rates have doubled in the Southeast as compared to 2006.

[John]

When a person is in foreclosure, they are under stress and are probably frightened and worried. They are not sure what they should do to handle their problem. When someone stops paying on their mortgage, they have already stopped paying on all of their other debts. These other debts usually include credit cards and personal loans; the mortgage is always the last thing they stop paying.
http://www.thejohnbeck.tv

[Barbara Ann Jackson]

subject: Mortgage Mess, Foreclosure Fraud, Investors,FREDDIE MAC and Impediments to Justice
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Most critical to the Foreclosure Crisis is FORECLOSURE FRAUD; it
enables ILLEGAL property FLIPPING, and siphons profits from WALL
STREET INVESTORS!

In Louisiana, 2 mortgage companies which benefit from fraudulent
foreclosures are Wells Fargo and FREDDIE MAC! It is HIGHLY COMMON for
a DEBT COLLECTOR attorney to file a foreclosure naming: a DEFUNCT
mortgage company, or naming a mortgage company which is NO LONGER
holder of the security interest (the promissory note); or AFFIXING a
'ransom' amount (the collector's fee) far exceeding the PROMISSORY
"Acceleration Clause."

Most property owners LACK consumer knowledge for challenging
fraudulent property loss; the Court System is REFRACTORY; and there
are limited attorneys with Consumer Law acumen. Also, in lawsuits for
"Unfair Debt Collection" damages, collectors get to make more $$ via
litigation, as co-conspirators enjoy pieces of the foreclosure pie.

Judicial Corruption is the underlying factor of New Orleans Apartheid
conditions that became exposed due to Hurricane Katrina floods.
Likewise, CRONYISM and JUDICIAL CORRUPTION are the salient reasons why
unlawful foreclosures are sanctioned in Louisiana. Further, in this
State, the Louisiana division of the U.S. Justice Department
FACILITATES real estate and mortgage FRAUD!

ONE EXAMPLE:In my absence, on May 19, 2005 a debt collector attorney used
the identity of defunct mortgagor GE Capital Mortgage Services to
carry out a simulated auction of my residence. Although GE Capital
Mortgage Services ceased to exist on October 5,2002, it became
portrayed as the successful May 2005 auction bidder, and the property
deed was transferred out of my name and registered in the name of GE
Capital. Three days before Katrina, my family was evicted by mortgage
giant FREDDIE MAC because Freddie became recorded as the subsequent
July 2005 purchaser of my home from non-existent GE Capital. BUT, as
far back as 2002, GE Capital Mortgage Services has ceased to exist
upon being MERGED with a different company!

Default on my part, stemming from an abusive marriage, is a fact -and
I was trying to negotiate, but the UNREASONABLE RANSOM and other
extortion tactics by collector attorneys hindered me. Also, SEVERE
REPRISALS become INFLICTED on people who do not cooperate with
property extortion. Everything I have stated here is verifiable in
court records,transcripts; and overwhelming evidence posted on my
www.lawgrace.org website.

Lastly, Investors need to become more astute about how mortgage
servicers' misdeeds hurts borrowers as well as siphons incalculable
amounts of money from what Investors should reap. (See "Limiting Abuse
and Opportunism By Mortgage Servicers," AND "Private Property Rights
Deferred: Has Predatory Mortgage Servicing Destroyed The American
Dream" by Rawle Andrews, Jr., Esq.,and Leroy Jones, Jr., J.D. Visit:
http://www.msfraud.org/index.html.)

**Here's a few links for my site:

"ILLEGAL REAL ESTATE FLIPPING..."
http://www.lawgrace.org/2007/06/21/illegal-real-estate-flipping-unfair-enrichment-etc/

"Anatomy of Judicial Corruption,. . ."
http://www.lawgrace.org/2007/09/04/motion-for-reinstatement-of-07-30426-appeal-case-explanation-of-request-for-extension-of-time-to-file-brief-and-for-reconsideration-of-5th-circuit-orders-dated-august-31-2007/

"No One Should Be Required. . ."
http://www.lawgrace.org/2007/05/22/no-one-should-be-required-to-be-a-law-abiding-citizen-if-the-manifest-illegal-conduct-of-attorney-herschel-c-adcock-jr-remain-ignored/

[Barbara Ann Jackson]

subject: Mortgage Mess, Foreclosure Fraud, Investors,FREDDIE MAC and Impediments to Justice
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Most critical to the Foreclosure Crisis is FORECLOSURE FRAUD; it
enables ILLEGAL property FLIPPING, and siphons profits from WALL
STREET INVESTORS!

In Louisiana, 2 mortgage companies which benefit from fraudulent
foreclosures are Wells Fargo and FREDDIE MAC! It is HIGHLY COMMON for
a DEBT COLLECTOR attorney to file a foreclosure naming: a DEFUNCT
mortgage company, or naming a mortgage company which is NO LONGER
holder of the security interest (the promissory note); or AFFIXING a
'ransom' amount (the collector's fee) far exceeding the PROMISSORY
"Acceleration Clause."

Most property owners LACK consumer knowledge for challenging
fraudulent property loss; the Court System is REFRACTORY; and there
are limited attorneys with Consumer Law acumen. Also, in lawsuits for
"Unfair Debt Collection" damages, collectors get to make more $$ via
litigation, as co-conspirators enjoy pieces of the foreclosure pie.

Judicial Corruption is the underlying factor of New Orleans Apartheid
conditions that became exposed due to Hurricane Katrina floods.
Likewise, CRONYISM and JUDICIAL CORRUPTION are the salient reasons why
unlawful foreclosures are sanctioned in Louisiana. Further, in this
State, the Louisiana division of the U.S. Justice Department
FACILITATES real estate and mortgage FRAUD!

ONE EXAMPLE:In my absence, on May 19, 2005 a debt collector attorney used
the identity of defunct mortgagor GE Capital Mortgage Services to
carry out a simulated auction of my residence. Although GE Capital
Mortgage Services ceased to exist on October 5,2002, it became
portrayed as the successful May 2005 auction bidder, and the property
deed was transferred out of my name and registered in the name of GE
Capital. Three days before Katrina, my family was evicted by mortgage
giant FREDDIE MAC because Freddie became recorded as the subsequent
July 2005 purchaser of my home from non-existent GE Capital. BUT, as
far back as 2002, GE Capital Mortgage Services has ceased to exist
upon being MERGED with a different company!

Default on my part, stemming from an abusive marriage, is a fact -and
I was trying to negotiate, but the UNREASONABLE RANSOM and other
extortion tactics by collector attorneys hindered me. Also, SEVERE
REPRISALS become INFLICTED on people who do not cooperate with
property extortion. Everything I have stated here is verifiable in
court records,transcripts; and overwhelming evidence posted on my
www.lawgrace.org website.

Lastly, Investors need to become more astute about how mortgage
servicers' misdeeds hurts borrowers as well as siphons incalculable
amounts of money from what Investors should reap. (See "Limiting Abuse
and Opportunism By Mortgage Servicers," AND "Private Property Rights
Deferred: Has Predatory Mortgage Servicing Destroyed The American
Dream" by Rawle Andrews, Jr., Esq.,and Leroy Jones, Jr., J.D. Visit:
http://www.msfraud.org/index.html.)

**Here's a few links for my site:

"ILLEGAL REAL ESTATE FLIPPING..."
http://www.lawgrace.org/2007/06/21/illegal-real-estate-flipping-unfair-enrichment-etc/

"Anatomy of Judicial Corruption,. . ."
http://www.lawgrace.org/2007/09/04/motion-for-reinstatement-of-07-30426-appeal-case-explanation-of-request-for-extension-of-time-to-file-brief-and-for-reconsideration-of-5th-circuit-orders-dated-august-31-2007/

"No One Should Be Required. . ."
http://www.lawgrace.org/2007/05/22/no-one-should-be-required-to-be-a-law-abiding-citizen-if-the-manifest-illegal-conduct-of-attorney-herschel-c-adcock-jr-remain-ignored/

[Small Business Loans]

Im looking for information on a small business loan. Someone told me to check out http://www.unsecuredsolutions.com aka Unsecured Solutions. How do I know which small business loan company would be the best to work with? How do I check out their reputation and what should I be looking for interest rate wise these days?
thanks for all your help.
Tony V

[David]

The process by which banks can ultimately take back the properties if the loan is not paid, it is called as foreclosure.

[Payday Loan Advocate]

The short term financial assistance that payday lenders offer, often are one of the fastest and safest ways out of a sticky financial situation if used responsibly. Unfortunately, people of somewhat political importance don’t see it this way, probably because they have never been in a situation that would require a little help from the payday loan industry. These bipartisan efforts to outlaw the entire industry just go to show how detached they are from real Americans. Get educated on the facts today and exercise your right to financial freedom on November 4th.