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Showing posts from 2014

Consumer Fraud and Prepaid Credit Cards

Are consumers still using bank accounts to make payments for goods and services, or are prepaid debit and credit cards the bank accounts of the future? A recent article in Bloomberg suggests that more Americans use prepaid cards than most card issuers anticipated. Indeed, they’ve “surged in popularity in recent years as consumers began using them to substitute for checking accounts,” explained a senior financial analyst. But do these prepaid cards provide any consumer fraud protection , or do Chicago residents who rely on prepaid debit and credit cards need to worry about issues of identity theft, loss of significant funds, and personal bankruptcy ? The U.S. Consumer Financial Protection Bureau (CFPB) recently acknowledged the growth of the prepaid debit card industry, and it has proposed rules that would provide fraud safeguards, as well as free access to account data. New Protections for Prepaid Card Owners The CFPB wants to make sure that consumers in Chicago an

Effects of Medicaid on Consumer Bankruptcy

Most of us know that Medicaid can help to ensure that low-income and older adults receive the medical care they need. But can Medicaid also help when it comes to consumer bankruptcy ? A recent post on The Hill suggests that “Medicaid coverage might allow some families to avoid bankruptcy.” But in order for this to happen, states must agree to implement the Medicaid expansion in the Affordable Care Act. Illinois has implemented the Medicaid expansion. However, an article in the Huffington Post suggests that recent election results could end up undercutting Medicaid expansion in certain states, thereby threatening the financial stability of Illinois consumers . Specifically, the election of Republican governors in Illinois, Arizona, Arkansas, Maryland, and Massachusetts—states that had implemented the Medicaid expansion—has left some commentators wondering whether “hundreds of thousands who enrolled in expanded Medicaid” may find themselves with benefits from a vulnerable pro

Changes Relevant to the Bankruptcy Means Test

If you want to file for Chapter 7 bankruptcy in Illinois , you need to meet the bankruptcy means test . What is the means test? In short, it’s a test that determines whether your income is below a certain amount that will allow you to file for Chapter 7 bankruptcy. This test keeps higher earners from filing for this form of bankruptcy that permits discharging most debts. If you don’t meet the means test—if your income is too high—then you’ll need to think about filing for Chapter 13 bankruptcy instead. As of November 1, 2014, the required income to meet the means test has changed in certain states, including in Illinois. Bankruptcy law can be very complicated, and it’s difficult to know whether you’ll be eligible to file for Chapter 7 bankruptcy without consulting an experienced Oak Park bankruptcy lawyer. Contact the Emerson Law Firm to learn more about whether bankruptcy is the right option for you, and whether you should be filing for Chapter 7 or Chapter 13 bankruptcy.

Government Crackdown on Debt Brokers

How safe is your financial information when it makes its way into the hands of Illinois debt buyers and debt collection agencies? As it turns out, your personal information may not be very safe at all. According to a recent article in the New York Times , a federal court ordered two different consumer debt brokers to alert “more than 70,000 people that they may be at risk for identity or debt fraud after the companies posted financial details and other personal information about them online.” The ruling comes as part of a “multiyear government crackdown on scams that target people in financial distress.” Debt Brokers Amass a Significant Amount of Personal Information First thing’s first: what’s a debt broker? According to the Illinois Collection Agency Act, a debt broker is a person or an entity that sells consumer loans or consumer credit accounts that are delinquent or have been charged off to debt buyers or debt-buying companies. In short, a debt broker assists anot

Chicago Debt Collection Agency Accused of Harassment

The Fair Debt Collection Practices Act (FDCPA) protects consumers from Illinois debt collection companies that attempt to use fraudulent tactics or harassment in order to collect debts owed. According to a recent article from NBC Chicago , a debt collection agency in the Chicago area has been accused of violating the FDCPA. It’s important to know that you have rights as a consumer. If you’re being harassed or treated unfairly by a debt collection agency , you should speak with an experienced Oak Park consumer protection attorney. The lawyers at the Emerson Law Firm can discuss your situation with you today. Debt Collector Violated Federal Consumer Protection Laws, Consumers Say Consumers across the country have submitted complaints about Second Chance Financial, an Aurora-based debt collection agency. Those complaints alleged that the company had “violated consumer protection laws and harassed consumers nationwide.” Now, an employee from Second Chance Financial has