• Consumer Protection Law and Advocacy — Chicago, IL

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StacyBardo

Fair Credit Reporting & Consumer Law - Bardo Law PC

False Background Report Remedies

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False or inaccurate background reports unfairly cost consumers both job and rental opportunities.  Even though the majority of states have implemented expungement or sealing practices for old eviction and criminal records, background screening companies often report defunct information.  When screening companies don’t regularly update their data, previously sealed or expunged records may be included in reports to prospective landlords and employers.  “When screening companies get it wrong, they not only undercut states’ efforts to give their residents the opportunity to move forward with their lives, but they also risk violating the federal Fair Credit Reporting Act (FCRA).”

See more at https://www.nclc.org/wp-content/uploads/2022/08/IB_Zombie_Records-1.pdf.

Tenant and employment screening companies are required under the FCRA to follow reasonable procedures to assure maximum possible accuracy of the information they report.  When sealed or expunged records are reported, the screening company is NOT assuring maximum possible accuracy.

In addition to assuring maximum possible accuracy, the FCRA prohibits posting obsolete or unverified information.  Generally, this means records that are more than 7 years old or that have not been properly authenticated as belonging to the consumer.

Screening companies must also follow a set of guidelines to notify consumers as to the information in their reports.  Consumers must be granted access to their files when requested and screening companies must conduct a reasonable investigation when a report is disputed.

If you are a consumer and have been turned down for a job or an apartment based on information in your credit report and you have questions, e-mail stacy@bardolawpc.com for a free case review.

 

 

Debt Collection Abuse, Consumer Law Services at Bardo Law PC

New Debt Collection Rules In Effect

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New debt collection rules are in effect. Starting November 30, 2022, the CFPB’s debt collection rule changes now apply. While some rules leave consumers vulnerable to increased debt collection contact, others provide clarity and greater protection. Let’s take a look at the most important changes.

First, debt collectors must contact consumers before reporting a debt to the credit reporting bureaus. This allows debts to be negotiated, disputed or paid before it negatively impacts credit.

Second, debt collectors must provide expanded dispute or “validation” notices.  The new model notice gives consumers multiple options for disputing debts.  For example, “this is not my debt,” or “the amount is wrong” are now listed right on the collection notice as options to check off.

Third, debt collectors are now specifically restricted from suing on debts that are past the statute of limitations.

And finally, debt collectors should not call more than seven times within seven consecutive days about a specific debt.  More than this is now presumed to be harassment.

The new rules also contain specific provisions related to collecting debts via e-mail, text or social media.  Check out the CFPB’s rule highlights at https://www.consumerfinance.gov/about-us/blog/understand-how-cfpb-debt-collection-rule-impacts-you/.

For more information on your debt collection rights, visit http://bardolawpc.com/services/#.

Do I have rights as a homeowner - Chicago Law - Bardo Law PC

Struggling Renters Protected By New CFPB Rule

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The Consumer Financial Protection Bureau (CFPB) just added new rules to protect struggling renters.  Effective May 3, 2021, debt collectors must advise renters of their rights in eviction actions.  With nearly 9 million households behind on rent due to COVID-19, there is still need for greater eviction protections.

Debt collectors were always prohibited from misrepresenting their tenants’ eligibility for eviction protection.  Now, however, they need to affirmatively disclose any right to seek temporary eviction protection.  The debt collector must make the disclosure in writing, either with the eviction notice or lawsuit, and the disclosure must be clear and conspicuous.

Full details available at https://www.consumerfinance.gov/about-us/newsroom/cfpb-rule-clarifies-tenants-can-hold-debt-collectors-accountable-for-illegal-evictions/.

Non-compliant debt collectors can be liable for up to $1,000 in statutory damages plus actual damages and attorney’s fees for failing to comply with the new rules.  If you have been served an eviction notice without notice of these rights, contact our office today.

 

National Association of Consumer Advocates - Stacy Bardo

The COVID-19 Effect: Managing Mortgages

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Thanks to the National Association of Consumer Advocates for this informative content.

Mortgage delinquencies hit a five-year high in May as COVID-19 battered the economy and household finances. With record numbers of Americans out of work, many are concerned about being able to keep up with payments on their homes.

State and federal governments quickly enacted protections to help millions remain in their homes during the pandemic. But as infections continue to surge and the economy remains sluggish, families are struggling to afford to stay in their homes. There are options to help consumers get through this unpredictable and difficult period.

• All about forbearance – Forbearance is when a mortgage servicer or lender allows a homeowner to pause or reduce their payments for a limited time. “If your mortgage is currently in forbearance, and that forbearance is coming to an end, reach out to your servicer at least thirty days before the forbearance will end to make repayment arrangements,” said Judith Fox, Clinical Professor of Law at Notre Dame Law School. “Many servicers only granted homeowners 90 days of forbearance. However, the CARES Act provides for 180 days and an additional 180 days, for a total of one year of forbearance,” Fox said. “Do not wait until you have missed a payment. If you are in forbearance, but cannot resume making payments, request an extension.”

While the moratorium on foreclosures may be expiring, consumers are still eligible for up to one year of forbearance, followed by a loan modification.

Homeowners whose mortgages are not federally-backed may be granted forbearance and other assistance from their loan servicers. Be aware, these programs may come with additional fees or other charges. Borrowers should ask their servicers about these details.

• Keep an eye out for errors – Borrowers who receive an accommodation from their mortgage servicer should continue to monitor their monthly statements and their credit reports to ensure information about their accounts are accurate. Equifax, Experian, and Transunion are offering free weekly credit reports to all consumers through April 21, 2021.

• Make payments when possible – Forbearance allows homeowners to temporarily skip some payments now. However, homeowners will still need to make up for the mixed payments. Those who can afford to pay their mortgage should continue to do so to avoid having to potentially pay more later on.

• Watch out for scam artists – Homeowners should be wary of companies claiming they to offer mortgage assistance, especially those requiring upfront fees. It is illegal for these companies to take payments before producing results the homeowner is satisfied with. The Federal Trade Commission has more information on how to spot mortgage scams and what rights homeowners have.

• Consult with a housing counselor – A non-profit housing counselor sponsored by the Department of Housing and Urban Development can help worried homeowners figure out their best option. This service is low-cost and often free.

• File a complaint – “If you are unable to reach your mortgage loan servicer, file a complaint with the online Consumer Financial Protection Bureau complaint (database),” said Prof. Judith Fox. When the CFPB receives a complaint from a consumer, it sends the complaint to the complained-about company which is then urged to respond to the consumer and the CFPB within a reasonable time.

• Seek legal assistance – But first: “Keep your documents and keep your notes from all your interactions with your mortgage company. It will help you keep track of what’s happening, and help your lawyer help you if something goes wrong,” said Jeff Gentes, an attorney at Connecticut Fair Housing Center.

If a homeowner’s mortgage servicer refuses to comply with the CARES Act or other applicable laws, it may be time to get legal representation.

Consumers Ascending thanks Professor Judith Fox of Notre Dame Law School and Jeff Gentes of the Connecticut Fair Housing Center for their help with assembling these tips and resources.

Bardo Law, P.C. is a proud member of the National Association of Consumer Advocates.
______________

National Association of Consumer Advocates
1215 17th Street NW, 5th Floor, Washington, DC 20036
Phone: 202.452.1989 | Fax: 202.452.0099

Homeowner Rights & Tenants Rights - Bardo Law PC

CVLS Launches New COVID-19 Mortgage Relief Program

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Chicago Volunteer Legal Services (“CVLS”) just announced its launch of a COVID-19 mortgage relief program. Right now, the CARES Act allows struggling homeowners with federally-backed mortgages to seek mortgage relief. Payments may be paused for between six months and one year and once payments resume, homeowners may qualify for loan modifications or other payment options.

Homeowners must request assistance and they have a limited time to do so. Therefore, CVLS created a toolkit to help these homeowners determine if they qualify and complete the process.

Check out more details at the CVLS website https://www.cvls.org/get-legal-help/covid-19-relief/.

We are proud to spread the word about CVLS’s new program. Bardo Law, P.C. has successfully obtained results for homeowners subject to unfair mortgage servicing practices and remains here to help.

My Credit Report isn't right - Chicago Consumer Attorney - Bardo Law PC

Committed to Consumer Justice – COVID-19 Action Plan

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As we face challenging times, I want to assure our clients, friends, and colleagues that we remain committed to consumer justice. While the firm will be employing remote work for the foreseeable future, and courts are now closed to non-essential business, here is what we are doing:

(1) maintaining contacts – potential and current clients will receive calls or e-mails back within 24 hours and we can continue to employ remote conferencing when necessary;

(2) continuing work – while judges will not be seeing most litigants or their counsel face-to-face, both Illinois and federal courts require e-filing so motions and complaints will continue to be filed and discovery will proceed as swiftly as practical;

(3) extending courtesies – we always believe in having good working relationships, even with our opponents, and we will, with client permission, adapt and be as flexible as possible to ensure the health, safety, and well-being of witnesses, court reporters, and each other; and

(4) reflecting – without the hustle of a daily commute or a rush to court, we can continue to be strategic and plan ahead.

In sum, we remain “open” for business, working on current files, and speaking with new clients to evaluate their cases. Do not hesitate to reach out with questions, concerns, to request an update or just to say hi. Stay well, be kind, and let’s work together to help our community.

Yours very truly,
Stacy M. Bardo

Secure Credit Issues - Bardo Law PC

Identity Theft and Data Security

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Identity theft and data security top the consumer concern list. From data breaches to credit and debit card compromises, more and more consumers are impacted. Unfortunately, it’s no longer a question of if your data will be stolen but when.

A new crop of businesses now promise consumer protection. Some offer “dark web” checks. The dark web can’t be accessed by commonly used web browsers — you need a special browser to get there. The dark web isn’t all bad but it’s the place to buy and sell stolen personal information, often with Bitcoins or cryptocurrency. Businesses offering dark web monitoring may let you know your information is for sale. But they can’t remove the information once posted. When you are not dealing with legitimate agencies, they don’t cooperate with fraud victims.

Be aware of dark web monitoring limitations. Don’t pay for promises that can’t be kept. But dark web monitoring can let you know if your information is posted. This way, you can take your own action to limit your information’s use. Do this through credit freezes or two-step verification for online purchases.

The Consumer Federation of America’s survey shows that 36% of consumers don’t understand dark web monitoring services. Check out the survey results and other helpful tips at https://consumerfed.org/consumers-are-in-the-dark-about-dark-web-monitoring-services/.

There are plenty of no cost resources for identity theft victims. Visit the Federal Trade Commission’s www.identitytheft.gov, and the nonprofit Identity Theft Resource Center, www.idtheftcenter.org.

If your information has been compromised and you’re contacted by unfamiliar creditors or debt collectors, contact a lawyer for help. The federal Fair Debt Collection Practices Act and Fair Credit Reporting Act and state fraud laws provide redress for identity theft victims.

Debt Collector Calls - Bardo Law PC

Make Your Voice Heard

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Public Comments Due August 19, 2019

The Consumer Financial Protection Bureau needs to hear from consumers to understand the problems with the Bureau’s proposed new debt collection rule. Under the proposed new rule, debt collectors would be permitted to:

The proposed rule would allow collectors to:

  • Call you 7 times per week, per debt. 
  • Contact you by text, email, or direct message without your permission, and send important information through hyperlinks;
  • Sue you without the collector’s attorneys reviewing original account documents to ensure you are the right person and the debt is the right amount; and
  • Collect debt so old, the deadline for a lawsuit has already expired.

You can e-mail your comments and stories with harassing debt collectors directly to 2019-NPRM-DebtCollection@cfpb.gov.  More information can be found by visiting https://www.nclc.org/issues/take-action-debt-collection-rule.html.

If you have a story to share or want more information regarding your right to fight back against unfair debt collectors, please contact our office.

Fair Credit Reporting & Consumer Law - Bardo Law PC

Trans Union Credit Report Settlement – Update

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Trans Union’s credit report settlement impacts consumers who may have had a tax lien or civil judgment reported on their credit reports.  The district court approved a class action settlement in the case of Clark v. Trans Union, LLC.  Details about the settlement are available at http://www.tupublicrecordsettlementadr.com.

The Clark case alleged that Trans Union included inaccurate information about public records on its credit reports and did not disclose from whom it obtained the public record information.  While Trans Union denied that it did anything wrong, it agreed to settle the case on a class action basis.

The following consumers may be eligible to participate in the credit report settlement:

  • If the consumer requested a Trans Union credit report between May 20, 2009 and March 23, 2018;
  • The requested credit report contained a public record (such as a bankruptcy, judgment, or tax lien);
  • The public record information was inaccurate or did not belong to the consumer.

Now that the district court has approved the credit report settlement, Trans Union is establishing an Alternative Dispute Resolution Program.  If consumers are able to show they were injured because of inaccurate public records information on their credit reports, the consumer may get a payment of at least $1,500.

For more information, please contact Bardo Law or the lawyers who settled the case:

TransUnion Settlement Class Counsel
763 J. Clyde Morris Blvd., Suite 1A
Newport News, VA 23601

Recognizing Our Military And Protecting Service Members

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Military Consumer Month kicks off this July at the Federal Trade Commission:

“Empowering servicemembers, veterans, and their families is a top priority,” Chairman Joe Simons said. “During Military Consumer Month, we will highlight the agency’s resources to help the military community avoid imposter scams – but our work on behalf of those who serve continues throughout the year.”

Service members and their dependents have special rights relating to consumer debt issues.  The Servicemembers Civil Relief Act should ease financial burdens during military service and covers full-time active duty members of the Army, Navy, Air Force, Marine Corps, and Coast Guard.  The Act also covers reservists on federal active duty and National Guard members under orders for more than 30 days.  Servicemembers lawfully absent from duty are also protected.

The Act’s benefits include:

  • A 6% interest cap on debt owed before joining the military (credit card, auto loan or mortgage)
  • Protection against entry of default judgments by creditors
  • No repossessions without a court order
  • Extra options for lease terminations

To learn more about the Act, visit the Department of Justice’s website at https://www.justice.gov/servicemembers/servicemembers-veterans-and-military-family-members.