| Volume 131 Number 7 |
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The People’s Lawyer’s Tip of the Day
Scammers use clever schemes to defraud millions of people every year. They often combine sophisticated technology with age-old tricks to get people to send money or give out personal information. Stay a step ahead with the latest info and practical tips from the FTC. To sign up for a scam alert via email click the following link. Click here for more.
Over One-In-Four Consumers Contacted By Debt Collectors Feel Threatened, Report Says
A recent Consumer Financial Protection Bureau (CFPB) report found that over one-in-four consumers contacted by debt collectors felt threatened. Debt collectors are generally prohibited from tactics that harass, abuse, or oppress consumers. The report was drawn from the first-ever national survey of consumer experiences with debt collectors. The survey is part of a CFPB effort to explore industry practices and consumer experiences with debt collectors. About 40 percent of consumers contacted about a debt in collection said they asked at least one debt collector or creditor to stop contacting them. And of these consumers, three-in-four said the debt collector did not honor the request to cease contact attempts. Click here for more.
Your Money
You may hear a lot about the importance of saving for retirement, and how an individual retirement account (IRA) is a good way to build your retirement nest. But there are common misconceptions about the IRA. The two most common types are the traditional IRA and Roth IRA. Under a traditional IRA, the money you contribute is generally tax-free, but once you reach retirement, your withdrawals are taxed as ordinary income. Roth IRAs are the opposite. Roth IRA contributions are taxed, but withdrawals can be made tax-free in retirement. Usually you'll have to pay for a penalty if you withdraw from your IRA early. But if you're buying a home for the first time or paying for a higher education degree, you can withdraw from your IRA without a penalty. Click here for more.
For the Lawyers
Law firm collecting a debt and enforcing a security interest is subject to FDCPA. The Ninth Circuit reversed the district court’s dismissal for failure to state a cause of action under the Fair Debt Collection Practices Act (FDCPA). On appeal, Defendants argued for the first time it was merely enforcing a security interest and subject to only §1692f(6). The court rejected Defendants’ argument that it was enforcing a security interest. The court stated, “Rather than seeking to enforce an existing security interest or lien, the May Notice sought to collect Mashiri’s overdue assessment fee and to make necessary disclosures that would perfect the HOA’s security interest and permit it to record a lien at a later date.” The court also found the defendants’ interpretation of §1692a(6) incorrect. “As we recently observed “[i]f entities that enforce security interests engage in activities that constitute debt collection, they are debt collectors." Mashiri v. Epstein Grinnell & Howell (9th Cir. 2017). Click here for more.