Some Protection For Consumers Sued For Debt

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http://www.consumer-action.org/

http://www.consumer-ction.org/press/articles/ny_state_legislature_bans_unfair_credit_card_universal_default/


New York City Civil Court Adds Safeguards For Consumers Sued for Debts


Posted by Jay Fleischman, Esq.

December 14, 2007

The New York Civil Court is moving to strengthen protections for consumers sued for failing to pay their credit card bills.

The Civil Court is set to require specific licensing information about debt buyers and debt collectors, as well as complete affidavits detailing a consumer’s debt before default judgments will be approved by clerks.

[SL: read my opinion in the next Post]


Judge Fisher is also asking the Administrative Board of the Courts to require that additional notification be given to consumers to avoid defaults.

Of the requirements being placed on creditors, the most rigorous and likely to result in headaches for them is the requirement of an affidavit. Most collection lawsuits are brought by bottom-feeding debt buyers who purchase credit card debt for as little as $0.10 on the dollar. The companies receive, for their purchase price, a computer file with information on the debt but nothing more. Debt buyers who seek additional information such as documents proving the validity of the debt are required to pay significant additional sums to the originating credit card companies, which is why most times they do not bother doing so. Rather, they gamble that the consumer will default on the lawsuit and allow a judgment to be taken without any proof.

The assumptions and business model of these debt buyers is borne out by the numbers. The Urban Justice Center projected that the court last year entered judgments totaling $784.3 million in consumer credit collection actions. In 2006, the center reported, 320,000 collection cases were filed, representing 51 percent of the 618,000 cases filed that year, excluding housing and small claims cases.

The Urban Justice survey found that the vast majority of consumer credit collection actions, nearly 90 percent, are not filed by credit card or other companies that extend credit, but instead by firms that have bought debt from those companies.

The survey also discovered that consumers fail to appear to contest claims, and default judgments are entered in 80 percent of the cases filed. According to court data, however, 40 percent of the cases handled by the court in 2006 (other than housing and small claims) resulted in default judgments. But in either event, this is a significant default rate that is the result in large measure of consumers believing that if they are sued they will automatically lose.

As of January 1, 2008 court clerks will not be permitted to enter default judgments unless they are accompanied by an affidavit that asserts the original records concerning the debt have been reviewed.

Eric M. Berman, the president of the Commercial Lawyers Conference of New York, an association of debt collection lawyers, acknowledged that in a high percentage of cases brought by debt buyers, the default affidavits are supported by summaries of the amount of debt owed by the consumer at the time the debt was purchased. Many affidavits also contain representations that the original creditor had warranted to the buyer that the debt was valid, he added.

Should debt buyers be required to have access to the original debt records, their business model is likely to be negatively affected, said Steven Cohen, whose four-lawyer firm, Cohen & Krasser engages primarily in a consumer debt collection practice.

Gerard J. Felt of Pressler & Pressler, a 23-lawyer debt collection litigation firm, said that requiring access to the original records will place “an excessive burden on the debt buying industry and have “a severe negative impact.” Pressler & Pressler, which is based in Cedar Knolls, N.J., handles collection cases in the Civil Court, he said.

Severe negative impact for whom? The consumer, who is dragged into court on nothing more than a computer printout? It used to be that a plaintiff in a lawsuit was required to prove up a case in order to be granted a judgment - and this move by the New York City court system does nothing more than reinforce that rule.

Debt Buyers, Debt Collection Lawsuits

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Opinions pursuant to the Freedom of Speech an God/Nature Given UN-alienable Rights!

Affidavits? By whom?

Bu scam-bags who sit on their big, fat hint quarters, somewhere thousands of miles away,
illiterate debt collectors who can't get a real job?

Your misery is their heaven.

They go nuts when can't extort from you, as think that the whole world owes them!
 

They are the ones who sign Affidavits composed for them by lawyers-debt collectors.

These Affidavits are perjury and garbage.

Affidavits means personal knowledge -not hearsay.

Unless the scam-bags were employed as the CPA of the bank, allegedly extending a lawful credit
to you and entered the General Ledger and complete Accounting themselves, their Affidavits are FRAUD, void of any immunity!

DC (debt collectors) Esq. have a duty to verify but they, only, endorse fraud instead, as a part of it!

They share extortion spoils with their runners - buffer zones -debt collectors which Breach your, private credit files under a fraudulent claim of extending credit to you and serving your account.

Esquires often are afraid to mess with you file directly so they use the buffer zone - the DCs-bottom-feeders.

Esq. are too shrewed to get caught in valuating BGL Act; so they "share" under a veil of being paid on contingent fees.

Once Esqs obtain evidence of debt, their locomotive rolls with steam and spite, calling that:

servicing your account and extending credit.

Who the hell asked them or gave them Right?

Did you?

They, only, extend two things:
1. extortion and 2. fraud!

Period!

You never signed any Contract with them; so they have no right to put their, dirty paws on your, private file.

Stop dealing with banks which sell you files and all, your private data: name, SS#, where you live, work, your family, bank accounts, everything there is to bottom feeders, scam-bags- extortionists, fraud artists, the low lives, who are too lazy to get a real job!

Tell all of your friends to stop dealing with these banks.

Once banks begin losing business; thus, profits, they would learn to respect the Consumers.

Stop feeding banks' usury interests.

Have once credit card for convenience - not credit.

Valid reasons:

where it is preferred,
insurance proved on it,
can't use cash,
need to reserve something.
and similar reasons.

Pay off the full balance before the end of each cycle.[/quote]

Stop paying ridiculous, compound interest on credit cards.

Take care of your family and self -not of banks, making them fat.

Wise up - don't charge more than can pay in full, within a month.

BASIC responsibility, b-a-s-i-c!


Back to the Affidavits.

Courts know about inadmissibility of Hearsay unwarranted by exception that but play a game.

They try to appease Consumer groups and outcry of the People of extensive fraud of debt collections and its fascists tactics of extortion so pretend to strengthen laws.

Yes, a semi-step forward and better than nothing but, common, Court Administration, you know
the Rules of the Admissibility of Evidence.

Don't you?

Affidavits can't be cross-examined!

Perjury on paper by clowns is not admissible Evidence except being such for evidence of Perjury!

Remedy?

Attack the bastards in full scale exposure:

demand from the banks themselves a confirmation or denial of employment of the Affiant
at the time the alleged debt was handles by the bank.

Be relentless, then, you will prove the fraud.

The Esquires-debt-collectors would resist your Discovery.

Run Discovery anyway,

Engage the banks directly.

File a Motion to Compel Production Evidence when Esq refuse to produce.

And, then, for an Order of Contempt of Court.

Don't even let them breathe, just like they treat you.

One difference: they break the law - you have the right to demand evidence from Competent Fact Witness instead of relying on fraud of illiterate racketeers - Affiant backed up by
literate racketeers - Esquires-debt-collectors.

Amen!

[gideon]

http://www.dhr.state.ny.us/doc/hrl.pdf

New York State
Executive Law
Article 15
HUMAN RIGHTS LAW

290. Purposes of article
291. Equality of opportunity a civil right
292. Definitions
293. Division of human rights
294. General policies of division
295. General powers and duties of division
296. Unlawful discriminatory practices
296-a. Unlawful discriminatory practices in relation to credit
297. Procedure
298. Judicial review and enforcement
298-a. Application of article to certain acts committed
outside the State of New York
299. Penal provision
300. Construction
301. Separability

§ 290. 22. The term "creditor", when used in this article, means any
person or financial institution which does business in this
state and which extends credit or arranges for the extension of
credit by others. The term creditor includes, but is not limited
to, banks and trust companies, private bankers, foreign banking
corporations and national banks, savings banks, licensed
lenders, savings and loan associations, credit unions, sales
finance companies, insurance premium finance agencies, insurers,
credit card issuers, mortgage brokers, mortgage companies,
mortgage insurance corporations, wholesale and retail merchants
and factors.

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http://www.dhr.state.ny.us/doc/hrl.pdf

New York State
Executive Law
Article 15
HUMAN RIGHTS LAW

290. Purposes of article
291. Equality of opportunity a civil right
292. Definitions
293. Division of human rights
294. General policies of division
295. General powers and duties of division
296. Unlawful discriminatory practices
296-a. Unlawful discriminatory practices in relation to credit
297. Procedure
298. Judicial review and enforcement
298-a. Application of article to certain acts committed
outside the State of New York
299. Penal provision
300. Construction
301. Separability

22. The term "creditor", when used in this article, means any
person or financial institution which does business in this
state and

SL: What business, except extortion debt collectors do in the State?

SL:

which extends credit or arranges for
the extension of credit by others.

So true, debt collectors don't extend credit to us and are not creditors.

We have a proof of definition in

New York State
Executive Law
Article 15

as quoted above.


Now, we need to shift the burden of proof on mutants i.e. debt collectors
to prove by Admissible Evidence that:

1. that we solicited that credit or loan from them;

2. That they extended credit to us;

3. that we have received that credit from them.


"Good luck" to them...

The term creditor includes, but is not limited
to, banks and trust companies, private bankers, foreign banking
corporations and national banks, savings banks, licensed
lenders, savings and loan associations, credit unions, sales
finance companies, insurance premium finance agencies, insurers,
credit card issuers, mortgage brokers, mortgage companies,
mortgage insurance corporations, wholesale and retail merchants
and factors.

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New York State
Executive Law
Article 15
HUMAN RIGHTS LAW

§ 292. Definitions.

When used in this article:

24. The term "regulated creditor", when used in this article,
means any creditor, as herein defined, which has received its
charter, license, or organization certificate, as the case may
be, from the banking department or which is otherwise subject to
the supervision of the banking department.


Do debt collectors receive their

charter, license, or organization certificate, as the case may
be, from the banking department or which is otherwise subject to
the supervision of the banking department

?

I believe they don't and I would find proof of it.


1. One venue is to run FOIL to the Dept of Banking asking to produce record or
deny its existence of particular debt collector.


2. Another one is checking SEC filings.


3. Certificate of Incorporation may be found at the Office of
Secretary of State.
 
_________________________________________________________________________

 


 

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http://www.banking.state.ny.us/ccs.htm

 
 Consumer Help and Information
 
Consumer Help Unit

Things You Should Know: We at the Banking Department will do whatever we can to advise you or otherwise help you resolve the problem you are having with your bank, credit union, mortgage banker or broker, check casher, money transmitter or budget planner.

The Banking Department's phone number appears on many credit card statements. You may call this number if you would like to receive a copy of a quarterly survey on Credit Card Interest Rates. Please note that this is not a customer service number for credit cards. If you have inquiries concerning your bill, want to report payment of a bill, or are calling to complain about the receipt of a credit card you did not request, you must call that card's customer service number directly. If your complaint involves an issue other than the above matters, we will do our best to assist you.

In addition, because the Department does not regulate or supervise all banks, there will be instances in which we will have to forward your complaint to another regulator. Usually this will be the Office of the Comptroller of the Currency (OCC), the body that oversees nationally chartered banks. To find out if New York State is responsible for the organization that you are having trouble with, click here to see a list of Institutions under New York State Jurisdiction .

For issues with ATM Safety or to register a complaint about a bank ATM, click here.

The information that follows is what you need to file a complaint with this Department, as well as a list of helpful contacts in the event that you have a problem with an entity that is not under our supervision. In order for us to seek a solution to your problem, all complaints MUST be in writing and backed up with whatever documentation the Department feels is necessary. The more complete the information submitted, the faster the situation can be resolved.

How to make an inquiry or file a complaint
Complaint Check List
When you contact the Banking Department
When you need other help

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Institutions under New York State Jurisdiction

The Banking Department is the primary regulator for New York State-licensed and stated-chartered financial entities, including roughly 300 domestic banks; many foreign agencies, branches and representative offices; savings institutions and trust companies and other financial institutions operating in New York including mortgage bankers and brokers, check cashers, money transmitters, and licensed lenders, among others. The assets of these institutions total over $1.3 trillion (Link to Institutions Supervised).

Please note that some institutions are regulated by federal government agencies. These include national banks, etc. Other entities may have as their primary regulator, a state other than New York State. See Institutions not under New York State jurisdiction, for further information.


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How to Make an Inquiry or File a Complaint

There are several ways to contact the Banking Department with an inquiry or complaint: by phone, fax, electronic form, e-mail or in person. All formal complaints MUST be in writing.

By Phone – Consumer Help Line

1-877-BANK-NYS

Our consumer help staff speaks English, Spanish, Russian and Mandarin and can provide referrals and answer questions you may have with regard to a financial institution or mortgage. The Consumer Help Line is open between 9:00 am and 5:00 pm Monday through Friday. During off-hours, you may leave a message. If it seems appropriate that you file a complaint, the representative will advise you to submit a written description of the problem, along with copies (not the original documents) of any back-up materials you have.

Via Electronic Consumer Assistance Form*

Consumer Help Assistance Form

*Use this form only if you know you have a specific complaint against a New York State chartered financial institution such as a bank, mortgage banker or broker, budget planner, check casher or money transmitter. If you are not sure, or if you have a question, please use the e-mail option below.

Via e-mail

Consumer Help Unit

Please note that this is not a secure Website and that information you send via e-mail could be compromised. Therefore, if you do not wish to proceed via the Internet, please write to us instead.

Via Mail

Consumer Help Unit

New York State Banking Department
One State Street
New York, NY 10004-1417

By Fax

Consumer Help Unit: (212) 709-1673

Walk-in

New York State Banking Department
5th Floor
One State Street
New York, NY 10004-1417


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Complaint Check List

All of the following information is required in order for us to process your complaint (check list):

Your name and address, including zip code
Your telephone numbers, home and office
E-mail address, if filing via e-mail
Name and address of the institution
Account number, if applicable
COPIES of pertinent documents (do not send us originals)
A short, concise statement of your complaint
A statement describing the relief you are seeking
Dollar amounts involved
Date of transaction
Indicate whether you have already complained directly to the institution and, if so, whether by mail, by phone or in person and the nature of their response
Has this matter been submitted to another agency or attorney? If yes, give name and address
Is there a court action pending?
If you are contacting us via e-mail, please provide your complete street and internet e-mail addresses. Please note that anonymous complaints cannot be processed.


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When You Contact the Department

While we try to answer as many of your questions and resolve problems over the phone when possible, it is often the case that in order to resolve an issue, we must send a copy of the written complaint to the person or firm you are complaining about — therefore, the information contained in the complaint is not considered confidential.

Resolution of complaints may require the submission of written documentation, as the Complaint Check List indicates. We will advise you if we need additional information as we process your complaint. Once the complaint package is complete, we will send you a confirmation of receipt of your complaint within five business days.

It is important to remember that the Banking Department does not act as the complainant's attorney. It also does not have the power to adjudicate or sit in judgment over complaints. If a dispute turns on facts that do not involve a supervised entity's violation of a specific law or regulation (such as a matter concerning a bank's exercise of internal policies or guidelines) the Banking Department may not have the authority to obtain the relief a complainant is seeking. In that case, the Banking Department will advise the complainant about other ways to pursue the complaint, such as through consulting a private attorney and/or initiating a court proceeding.


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Institutions not under New York State Jurisdiction

The Banking Department does not have the authority to resolve complaints involving entities that are not under New York State jurisdiction.

Some institutions are regulated by federal government agencies. For example, commercial banks having the word "National" or using the title "N.A." (national association) in their title, are organized under and subject to federal law. Requests for information or complaints concerning these national banks should be directed to Office of the Comptroller of Currency.

Savings banks and savings and loan associations having the word "Federal" in their name or which use the initials FSB (federal savings bank), FSA (federal savings association), FA (federal association) or FSLA (federal savings and loan association) are regulated by the Office of Thrift Supervision, a federal agency. Inquiries or complaints should be directed to Office of Thrift Supervision.

Federally-regulated credit unions are similarly identified by the word "federal" in their name. Inquiries and complaints concerning federal credit unions should be directed to National Credit Union Administration.

If the institution you are concerned with is located outside New York State or if you are unsure about the appropriate regulatory authority, contact the Consumer Services Division of the New York State Banking Department. Our staff will attempt to determine the appropriate agency to contact and your inquiry or complaint will be referred to that authority. You will be notified of this referral.


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When You Need Other Help

Other Bank Regulators

If you have a complaint about a financial institution that is not regulated or supervised by the NYS Banking Department, we will refer you and forward your complaint to the regulator of that institution. To determine if your financial institution is supervised by the NYS Banking Department, please visit our list of institutions we supervise: http://www.banking.state.ny.us/supinst.htm

If your institution is not on this list, it may be under the jurisdiction of one of the two following national bank regulators:

Office of the Comptroller of the Currency

Customer Assistance Group: 1-800-613-6743.
Complaints: http://www.helpwithmybank.gov 
Office of Thrift Supervision

Consumer Line: 1-800-842-6929
Northeast Region Consumer Line: 1-800-253-2181
Complaint e-mail: consumer.complaint@ots.treas.gov
http://www.ots.treas.gov/resultsort.cfm?catNumber=88&dl=17&edit=1 (see Contact Us at bottom)
Or, if your institution is not supervised by the NYS Banking Department or a national bank regulator, it may be under the jurisdiction of another state’s banking department. For a list of all state banking departments, contact:

Conference of State Bank Supervisors

202-296-2840
www.csbs.org (click on State Banking Commissioners, on left side of homepage)
Other Helpful Government Agencies

If the Banking Department cannot resolve your complaint or answer your question, you may be able to obtain assistance from one or more of the following resources:

Credit Reporting Agencies

You are entitled to one free credit report per year from each of the three major credit reporting agencies.

Free annual credit report: 1-877-322-8228
www.annualcreditreport.com
You may also request and pay for a credit report from each of the three major credit reporting agencies:

Experian: 1-800-311-4769, 1-888-397-3742
www.experian.com
Equifax: 1-800-685-1111
www.equifax.com
TransUnion: 1-800-888-4213
www.transunion.com
To ask questions about or dispute items on your credit report:

Experian: 1-888-397-3742
Equifax: 1-800-685-1111
TransUnion: 1-800-916-8800
To report credit card fraud:

Experian: 1-88-397-3742
Equifax: 1-888-766-0008
TransUnion: 1-800-680-7289
Federal Trade Commission

Identity theft: 1-877-ID-THEFT
All complaints: http://www.ftc.gov/ftc/consumer.htm (click on “File a Complaint”)
May be able to handle general consumer questions, problems, and complaints, including:

Lending, debt and debt collection questions and complaints;
Reporting identity theft;
Credit report questions or disputes;
Spam, phishing and other internet-related complaints;
Deceitful advertising complaints; and more.
Office of the NYS Attorney General

Consumer Helpline: 1-800-771-7755
Complaints: www.oag.state.ny.us/complaints/complaints.html
May be able to handle general consumer questions, problems, and complaints, including:

Investment and financial fraud,
Internet-related complaints,
Discrimination complaints,
Homeowner complaints, and more.
NYS Comptroller’s Office

Report government fraud: 1-888-672-4555
Unclaimed funds: 1-800-221-9311
http://www.osc.state.ny.us/ouf/index.htm
Funds and securities deposited a bank account are transferred to the State after a significant period of account inactivity—usually after five years. Abandoned funds are held by the State indefinitely, until their proper owner comes forward to claim them. Make inquiries about abandoned bank accounts or property to the Comptroller’s Office.

NYS Consumer Protection Board

Consumer Assistance Hotline: 1-800-697-1220
Albany Local Consumer Assistance Hotline: 518-474-8583
Complaints: http://www.consumer.state.ny.us/comunit1.htm
May be able to handle general consumer questions, problems, and complaints.

NYS Insurance Department

Consumer Services Bureau: 1-800-342-3736
NYC Local Consumer Services Bureau: 212-480-6400
Albany Local Consumer Services Bureau: 518-474-6600
http://www.ins.state.ny.us/complhow.htm
May be to able to handle questions, problems and complaints about insurance companies, brokers, agents, or adjusters.

May also be able to handle questions, problems and complaints about possible government fraud, corruption or abuse of taxpayer money.

U.S. Secret Service

http://www.secretservice.gov/financial_crimes.shtml
New York Field Offices
Albany 518-436-9600
Buffalo 716-551-4401
JFK 718-553-0911
Melville 631-293-4028
New York City 718-840-1000
Rochester 585-232-4160
Syracuse 315-448-0304
White Plains 914-682-6300
Report counterfeit money:
United States Secret Service
Attention: Counterfeiting
335 Adams Street, 32nd Floor
Brooklyn, NY 11201

May be able to handle questions, problems or complaints about financial crimes such as:

Access device fraud;
Counterfeiting and fraudulent identification;
Money laundering;
Telecommunications and computer fraud;
Benefits and food stamp fraud; and more.
 
 

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In Great Braitain

http://www.fairinvestment.co.uk/credit_cards-news-Credit-card-default-charges-to-be-reduced-after-action-from-OFT-1400.html

Credit card default charges to be reduced after action from OFT
16/04/2008
 The amount that credit card and store card customers are charged when they default on a payment is to be reduced as a result of action taken by the Office of Fair Trading.

The OFT approached Clydesdale Financial Services Limited – which is owned by Barclays – and asked them to ease the penalty on customers for failing to meet a repayment on their credit and store cards, and it has now brought the charge down by almost half from £22.50 to £12.

Prompted into action by consumer complaints, the OFT said that the charges have previously been set at a level which was much higher "than was considered fair". This is one of various actions taken by the OFT on unfair credit card charges and many people have been successful in reclaiming credit card charges from their provider.

Mike Haley, head of consumer protection at the OFT, called the decision "a great result for consumers", and said that the OFT is "very pleased that Clydesdale Financial Services has decided to reduce its charges."

The OFT asked credit card and store card providers to cap the excessively high rates at £12 in April 2006, having declared that they were disproportionately high, but in order to recoup the lost revenue from the default charges, providers have been hiking rates and charges elsewhere, says Moneyfacts.co.uk, calling into question the effectiveness of a cut in default charges.

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "In April 2006 the average purchase rate on a credit card was 14.9 per cent; today this has jumped to 16.4 per cent. Previously whereas only a select number of customers were being penalised, now all borrowers are paying the price.

"For any customer who are paying their bill in full each month, the rate increase will have no impact, but with many households struggling with increasing financial pressures, those who only repay the minimum will be hardest hit. Anyone with a balance of £5,000 repaying just 2.5 per cent per month will end up paying an additional £755 in interest from the 1.5 per cent increase in purchase rates."

She added that while rates and charges on credit cards have increased, "there are still good deals to be found for those with a good credit history.

"Shop around and find a card that best suits your needs, whether it's a balance transfer deal if you have an existing debt on a card, or a card with an incentive such as cashback if you pay your balance off in full."

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Released: June 22, 2006

NY State legislature bans unfair credit card ‘universal default’


Contact: Guillermo Martinez for Assemblyman Peter M. Rivera - 518-455-5102; Barbara Lee Steigerwald for Senator Charles J. Fuschillo – 518-455-3341; Linda Sherry for Consumer Action – 202-544-3088; Scott Cushing for Assemblyman Thomas Alfano – 516-437-5577

The New York State legislature has passed legislation today that outlaws the use of universal default, a commonly used and relatively unknown practice by credit card companies that increases credit card rates based on a card holder’s unrelated financial activity. New York is the first state in the nation to provide such a protection against this unfair and deceptive practice. The legislation (Assembly Bill 809A/Senate Bill 5665A) is on its way to Governor George Pataki.

According to Assemblyman Peter M. Rivera (D-Bronx), chair of the Assembly Puerto Rican/Hispanic Task Force, “This legislation will now stop the current attack on consumers by credit card and banking corporations.” The practice of raising interest rates on card holders for non-related financial activity, such as paying a utility or cable television bill late, is commonly referred to in the small print of credit card agreements as “Universal Default.”

Rivera stated, “This legislation sends a clear message that this type of anti-consumer behavior will not be allowed in our State anymore. I strongly encourage the Governor to sign this legislation into law.”

A national authority on this issue, Dr. Elizabeth Warren, Professor of Law at Harvard Law School, has assailed the behavior of credit card companies and notes that

“universal default” is actually a breach of contract by card issuers that allows them to change the terms of their agreements with consumers at will.

“Under the leadership of Senator Charles J. Fuschillo, chair of the Senate Consumer Protection Committee, and the Senate Majority, New York will have one of the strongest consumer protection measures ever passed by both houses of the Legislature.


New York is once again a leader for the entire country in providing strong consumer protections when it comes to protections against ridiculous credit card company schemes,” declared Rivera, who led the fight for passage of the important legislation.

SL: And NY courts are the worst protection of Consumers rights and best for abuse of them!

“This legislation corrects an extremely unfair business practice of which many consumers are completely unaware. Credit companies should base fees and interest rates on a customer’s account with that company only. Penalizing consumers for late payments on unrelated accounts is unjustified and will soon be prohibited,” said Assemblywoman Audrey I. Pheffer (D-Queens), chair of the Assembly Consumer Affairs and Protection Committee.

“Credit card companies are the only industry in the world to re-price something you already paid for,”

said Linda Sherry of Consumer Action, a national nonprofit organization that conducts an annual survey on fees and rates. Sherry said universal default rates were as high as 29.99 percent in 2004 and have grown to as much as 35 percent this year. “I could not be prouder that my home state has passed this groundbreaking law!,” said Sherry, who comes from Sag Harbor, New York.

SL: So ask banks for proof of keeping the original agreed upon rate or a changed one, breaching the Agreement unilaterally in favor of the bank.

According to Rivera, “For too many unsuspecting consumers, the fine print of credit card agreements, mask hidden fees and late fees for a variety of reasons unknown to the card holder. The practice of ‘Universal Default’ is deceptive and unfair,” said. “This legislation would put an end to this practice and ensure that consumers are not being taken advantage of by unscrupulous creditors.”

SL: Fine print must be outlawed as it is cler indication of fraud!

Why would someone put legitimate and honest practices described in plain English
in such, small print, otherwise?

According to Assemblyman Thomas Alfano (R-N. Valley Stream), ranking minority member of the Assembly Codes Committee, “This bill levels the playing field between the consumer and big corporations. Now, corporate greed can’t victimize a good customer.”


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Debtor and creditor

debtor and creditor: an overview

Debtor-creditor law governs situations where one party is unable to pay a monetary debt to another.

There are three types of creditors.

1. First are those who have a lien against a particular piece of property.
This property (or proceeds from its sale) must be used to satisfy the debt to the lien-creditor before it can be used to satisfy debts to other creditors.
A lien may arise through statute, agreement between the parties, or judicial proceedings. See, e.g., Secured Transactions and Mortgages.


2.  Secondly, a creditor may have a priority interest.

A priority arises through statutory law.
If a creditor has a priority his debt must be paid when the debtor becomes insolvent before other debts. For example, Congress has granted priority to debts owed the Federal government. See Federal Tax Lien Act.

3. The final type of creditor is one who has neither a lien against the debtor's property or is the subject of a statutory priority.

Non-bankruptcy debtor-creditor law arises mainly from state statutory and common law. Tort law, such as defamation, provides a means for state courts to limit private means of debt collection. States also regulate debt collection through statute.

Congress has enacted the Fair Debt Collection Practices Act to regulate some debt collectors.

Creditors use judicial and statutory processes to have debts satisfied.

Attachment is a limited statutory remedy whereby a creditor has the property of a debtor seized to satisfy a debt. Garnishment allows a creditor to collect part of a debt (for example wages) to satisfy the obligation. Replevin allows a creditor to seize goods, such as a security interest, that he or she has a property interest in, to satisfy the debt.

Receivership involves the appointing of a third party by a court to dispose of the debtor's property in order to satisfy the debt. Creditors commonly seek to create a lien on a debtor's property through a judicial process of lien creation, which is governed by state law.

Once a lien has been created state statutory law governs how the lien is executed against the debtor's property. The sale of property subject to a lien to satisfy the debt is also governed by state statutory law. Federal and state statutes, and the Federal Consumer Credit Protection Act also limit the type of property that can be used to satisfy a debt.

A debtor may attempt to fraudulently convey a piece of property to avoid having it seized. State laws seek to prevent this type of property transfer. Many states have adopted the Uniform Fraudulent Conveyances Act or its successor, the Uniform Fraudulent Transfer Act.

Bankruptcy is governed by federal statute which supersedes state debtor-creditor law in circumstances where it applies. See Bankruptcy

Categories:

commercial transactions overview

• property and natural resources
  

menu of sources

Federal Material

U.S. Constitution and Federal Statutes

• U.S. Code:

• Federal Tax Lien Act - 26 U.S.C. § 6321
  
• Fair Debt Collection Practices Act - 15 U.S.C. § 1692
  
• Consumer Credit Protection Act - 15 U.S.C. § 1601
  

• CRS Annotated Constitution
  

Federal Agency Regulations

• Code of Federal Regulations:

• 12 C.F.R. - Banks and Banking
  
• 16 C.F.R. - Commercial Practices
  
  

Federal Judicial Decisions

• U.S. Supreme Court:

• Recent Decisions on Debtor and Creditor Law
  
• liibulletin Oral Argument Previews
  

• U.S. Circuit Courts of Appeals: Recent Decisions on Debtor and Creditor Law
  

State Material

State Statutes

• Uniform Fraudulent Transfer Act
  
• New York Debtor and Creditor Law
  
• California laws regarding Special Relations of Debtor and Creditor - California Civil Code §§ 3429-3449
  
• State Civil Codes
  

State Judicial Decisions

• N.Y. Court of Appeals:<LI class=c1>

• Decisions on Debtor and Creditor Law
  
• Commentary from liibulletin-ny
  

• Appellate Decisions from Other States
  

Other References

Key Internet Sources

• National Credit Union Administration
  
• U.S. Federal Trade Commission
  
• Consumer Handbook to Credit Protection Laws (on-line pamphlet from the Federal Reserve)
  

Useful Offnet (or Subscription - $) Sources

• Good Starting Point in Print: Arthur Winston, Complete Guide to Credit and Collection Law, Aspen (2004).
  

other topics

Category: Commercial Transactions
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Rule 4525. Copies of statements under article nine of the uniform commercial code.
A copy of a statement which is noted or certified by a filing officer pursuant to section 9--523 of the uniform commercial code and which states that the copy is a true copy is prima facie evidence of the facts stated in the notation or certification and that the copy is a true copy of a statement filed in the office of the filing officer.

SL: Plaintiff state, pursuant to the Penalty of Perjury that the alleged account in dispute
has not been discharged by the original party of interest;

that such party has not entered the lawsuit and has made claim agsint the Defendnadt in this litigagatioin.

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Pursuant to the sister Doctrine of the great State of New Jersey, when racketeers not fit to walk upon this Earth, extort from you, fraudulently claiming suffering damages as pleaded in court - demand production of:

http://www.state.nj.us/oag/ca/ocp/ocplaw.htm

56:8-2.15. Definitions

a. "Merchandise" means any objects, wares, goods, commodities, or any other tangible items offered, directly or indirectly, to the public for sale.,

b. "Proof of purchase" means a receipt, bill, credit card slip, or any other form of evidence which constitutes reasonable proof of purchase.

c. "Retail mercantile establishment" means any place of business where merchandise is exposed or offered for sale at retail to members of the consuming public.


56:8-2.22. Copy of transaction or contract; provision to consumer

It shall be an unlawful practice for a person in connection with a sale of merchandise to require or request the consumer to sign any document as evidence or acknowledgment of the sales transaction, of the existence of the sales contract, or of the discharge by the person of any obligation to the consumer specified in or arising out of the transaction or contract, unless he shall at the same time provide the consumer with a full and accurate copy of the document so presented for signature but this section shall not be applicable to orders placed through the mail by the consumer for merchandise.


56:8-3. Investigation by attorney general; powers and duties

When it shall appear to the Attorney General that a person has engaged in, is engaging in, or is about to engage in any practice declared to be unlawful by this act, or when he believes it to be in the public interest that an investigation should be made to ascertain whether a person in fact has engaged in, is engaging in or is about to engage in, any such practice, he may:

(a) Require such person to file on such forms as are prescribed a statement or report in writing under oath or otherwise, as to all the facts and circumstances concerning the sale or advertisement of merchandise by such person, and such other data and information as he may deem necessary;

(b) Examine under oath any person in connection with the sale or advertisement of any merchandise;

(c) Examine any merchandise or sample thereof, record, book, document, account or paper as he may deem necessary; and

(d) Pursuant to an order of the Superior Court impound any record, book, document, account, paper, or sample of merchandise that is produced in accordance with this act, and retain the same in his possession until the completion of all proceedings in connection with which the same are produced.
56:8-3.1. Violations; penalty

Upon receiving evidence of any violation of the provisions of chapter 39 of the laws of 1960,1 the Attorney General, or his designee, is empowered to hold hearings upon said violation and upon finding the violation to have been committed, to assess a penalty against the person alleged to have committed such violation in such amount within the limits of chapter 39 of the laws of 1966 as the Attorney General deems proper under the circumstances. Any such amounts collected by the Attorney General shall be paid forthwith into the State Treasury for the general purposes of the State.

1Section 56:8-1 et seq.

56:8-4. Additional powers

To accomplish the objectives and to carry out the duties prescribed by this act, the Attorney General, in addition to other powers conferred upon him by this act, may issue subpoenas to any person, administer an oath or affirmation to any person, conduct hearings in aid of any investigation or inquiry, promulgate such rules and regulations, and prescribe such forms as may be necessary, which shall have the force of law.

56:8-5. Service of notice by attorney general

Service by the Attorney General of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made personally within this State, but if such cannot be obtained, substituted service therefor may be made in the following manner:

(a) Personal service thereof without this State; or

(b) The mailing thereof by registered mail to the last known place of business, residence or abode, within or without this State of such person for whom the same is intended; or

(c) As to any person other than a natural person, in accordance with the Rules Governing the Courts of the State of New Jersey pertaining to service of process, provided, however, that service shall be made by the Attorney General; or

(d) Such service as the Superior Court may direct in lieu of personal service within this State.
56:8-6. Failure or refusal to file statement or report or obey subpoena issued by attorney general; punishment

If any person shall fail or refuse to file any statement or report, or obey any subpoena issued by the Attorney General, the Attorney General may apply to the Superior Court and obtain an order:

(a) Adjudging such person in contempt of court;

(b) Granting injunctive relief without notice restraining the sale or advertisement of any merchandise by such persons;

(c) Vacating, annulling, or suspending the corporate charter of a corporation created by or under the laws of this State or revoking or suspending the certificate of authority to do business in this State of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice; and

(d) Granting such other relief as may be required; until the person files the statement or report, or obeys the subpoena.


56:8-10. Claims against persons acquiring money or property by unlawful practices

Subject to an order of the court terminating the business affairs of any person after receivership proceedings held pursuant to this act, the provisions of this act shall not bar any claim against any person who has acquired any moneys or property, real or personal, by means of any practice herein declared to be unlawful.