To learn more about the volunteer opportunities at VLP, please visit their website at www.vlpnet.org. 

On October 1, 2013, I was very grateful to be presented with the Denis Maguire Pro Bono Award for my work with the Volunteer Lawyers Project. Everyone had very kind things to say about me.

Over the last three years, I have had the opportunity to work with some great individuals at the Fair Debt Collection Clinic at the Boston Municipal Court, hosted by the Volunteer Lawyers Project. With their support and guidance, I and many other volunteer attorneys have helped advocate on behalf of pro se litigants in debt collection lawsuits. As I've mentioned before in this blog, there are many genuine defenses to debt collection cases. The most important thing is to show up and assert them. 

Hopefully with increased exposure and success, VLP's Fair Debt Collection Clinic will become a standard of free legal services across Massachusetts.

If you need assistance from the Fair Debt Collection Clinic or are an attorney who'd like to help, please visit the VLP website at http://www.vlpnet.org to learn more.

After a few months of hard work, we were able to convince the judge to reject the settlement and reopen the case. Now our client will have the opportunity to present her case at a trial. You see, even though attorneys do not need to have the client sign anything to complete a settlement, they must have the client's authorization and in this case, the client did not authorize the settlement.

Why this article? Our client fought for her rights. Before she found Heather and I, she was told there was nothing she could do but accept the woefully insufficient settlement. Instead of accepting that fate, she found lawyers who would tell her side of the story, and she won. I see this problem all the time, a consumer is told by a car dealer or bank, there's nothing they can do. The truth is, most of the time there is something you can do. Before you give up, talk to a lawyer who cares about your issue. Sure, sometimes there really isn't anything you can legally do, but you won't know if you don't ask. My hope is that those who read this article will keep that in mind.

1. Do not sign this agreement if any of the spaces intended for the agreed terms are left blank.
2. You are entitled to a copy of this agreement at the time you sign it.
3. You may at any time pay off the full unpaid balance under this agreement.
4. You may under certain circumstances redeem the property, if repossessed because of your default, and you may, under certain conditions, require a resale of the property if repossessed.
5. The seller has no right to unlawfully enter your premises or commit any breach of the peace to repossess goods purchased under this agreement.
6. You may cancel a purchase under this agreement if it has been signed by a party thereto at a place other than the address of the seller which may be his main office or branch thereof; provided you notify the seller in writing at his main office or branch, by ordinary mail posted, by telegram sent or by delivery, not later than midnight of the third business day following a purchase under this agreement.

Those exact words must appear just before the signature line on any revolving credit agreement. Revolving credit is like a credit card or a line of credit account, basically there’s a balance you can borrow from, and you can continuously borrow from that balance and repay it. This is different from, say, a closed ended account like a car loan where you pay off a set amount from the beginning.

What’s the penalty for not putting those six disclosures? Under Massachusetts credit law, failing to give those disclosures just above the signature line on the credit agreement results in the creditor being forced to give up any rights to collect finance charges (like interest), delinquency fees (like late payment fees), and collection charges (like attorney fees). The debtor would still be responsible for paying back what they borrow, but at 0% interest and fees.

So the next time you’re offered a credit application in Massachusetts, be sure to look out for these rights before you sign.

What's robo-signing? It's a practice of signing legal documents where the signer has no real knowledge of the information they're stating is true with their signature. In credit card lawsuits, this is often done by signing affidavits claiming that the offered credit card statements are true and accurate records of the account. The reason it's called robo-signing is that the signer doesn't actually have any personal knowledge that the information is true. They are given a stack of affidavits at a time and, at best, confirm the information in the affidavit matches the information on their computer screen. Effectively, the affiant (the person who signs the affidavit) is just a robot.

The problem with robo-signing is that these affidavits are used in court to prove the debt is valid and the amount claimed is accurate. Courts rely on these affidavits the same as if the affiant actually testified. But if the affiant doesn't actually know if the information is true, then their testimony is inherently unreliable, but there's no way for a judge to know this just by reading the papers. It is the creditor's job to prove to the court the debt is valid, but instead of providing real proof, they sloppily produce these affidavits. These unreliable affidavits result in thousands of unlawful judgments against consumers. And judgments can give a creditor the right to attach wages and place liens on property.

I'm glad to hear that state agencies are taking notice of the egregious credit card debt collection practices. Hopefully, the trend continues and other states join the fray. Thanks to the LA Times for the coverage.

The reason I mention the VLP program today is one of the staff attorneys for the project, Hsindy Chen, has been selected for the Boston Bar Association's Public Interest Leadership Program. The program selects 15 attorneys each year to implement public service initiatives, and this year they have certainly chosen wisely. You can see the list of all this year's selections along with their bios here.

Challenging proof of assignment can be one of the most useful defenses for consumers. Debt buyers don't buy consumer accounts one-by-one. Instead they buy them in huge portfolios, often numbering in the thousands. Many have even started securitizing the debts, just like the mortgage industry, where loans are pooled into trusts and the income from the debt collection is sold to investors. With such complicated transactions, its often very difficult for a debt buyer to provide proof of ownership in any one lawsuit.

Most of the time the debt buyer will at best have two things, both insufficient. One is an affidavit from an employee who states they have read records that the debt was purchased. The problem? Its an after the fact description of the assignment without proof it really occurred, and the employee doesn't have any personal knowledge it actually happened. The other thing debt buyers will produce is the bill of sale for the whole portfolio. It'll say the debt buyer purchased a group of collection accounts from the bank, and a list of the accounts is attached as an exhibit, but the exhibit will not usually be included. Here, the problem is that they've provided proof they bought someone's debt, but not yours.

A consumer attorney can be key to effective representation in debt collection lawsuits because he or she will have the experience and knowledge to find out what proof the debt buyer has, and challenge it.

These debt collectors were using stationary that looked like official district attorney letters. They included statements like "Official Notice - Immediate Attention Required" and "A conviction for a bad check of $250 or more is classified as Larceny with a potential jail sentence ranging up to five (5) years". The letters would go on to demand the full payment of the check as well as up to $235 in additional fees. 

The problem? Well these collection letters are unlawful. First, neither Corrective Solutions nor BounceBack are licensed by the Division of Banks, which is a requirement for any debt collector to collect against Massachusetts consumers. Second, these letters are illegal under the Fair Debt Collection Practices Act. Under the FDCPA, a debt collector cannot deceive a consumer into thinking it is a governmental agency or works for one. Debt collectors also can't threaten to take legal action it is not legally capable of. Even if the statement about the penalties for bad checks were true, a debt collector can't bring criminal proceedings. 

If you have received letters from either of these companies or letters that look like the ones described above, you should contact a consumer attorney immediately. Even if you owe the debt, you have rights.

Thanks to lifehacker for the find.

You've probably heard of the Telephone Consumer Protection Act, (47 U.S.C. § 227). 
It's the same law that created the national Do Not Call registry. But its much more than that. The TCPA also makes calls to your cellphone by an automated dialing system or using a prerecorded or automated voice unlawful. The penalty for violating the TCPA is $500 per call, and up to $1,500 per call if the violation is found to be willful. 

How does this apply to debtors? This law doesn't just apply to telemarketers, it applies to debt collectors too. Many collection agencies use robo dialers to call debtors several times a day. They know that, like everyone else, you keep your cellphone with you. So they call time after time to harass you into paying the debt, which you may not even owe. The TCPA can force them to pay you for the harassment.

How do you make this law work for you? First of all, answer the phone. Typically, incoming calls to you cellphone only appear on your bill if you answer the call. More importantly, if you answer, you can tell the caller to stop calling you. If you tell them to stop and they keep calling, they're willfully violating the law. Secondly, take photos of your phone's call logs. For iPhones, its super simple, just press the power button and the home button at the same time and a screenshot will be saved to your photo album. Third, if you have any voicemails with a prerecorded or automated voice, save them. Finally, contact a consumer attorney. A lawyer can help you find out who's calling you if you don't already know and can help you stop them from calling you in the future.

Before anyone can repossess your car, you are entitled to a written notice that says your loan is in default and you are allowed 21 days from the date the notice is mailed to become current on your obligation. This notice must be mailed to you 10 or more days after you were found in default. If you do not receive this notice, the creditor may not repossess the car. If they do, you may be entitled to damages.

One of the methods of repossessing a vehicle is called self-help repossession, where the repossession agent takes the vehicle without a court order. Self-help repossession is not permitted except for specific circumstances. Even in these situations, they are not permitted to enter your property without your consent and they aren't allowed to breach the peace.

The reason creditors repossess cars is to sell them to try to recoup the lost value of the loan. Sometimes, the sale of the car doesn't cover the amount owed on the loan. In these situations, the creditor may come after you for the deficiency in a lawsuit. Before they can get anything from you, the creditor has the responsibility to show the court they followed all the proper procedures for giving you notice, repossessing the car, and conducting the sale. If they cannot, you may not be responsible for any deficiency.

Because there are so many rules governing repossession, it is important you hire an consumer attorney to help you get the best results.

GM Recalls 2013 Chevy Express and Savana Vans 
Honda Recalls 2009-2013 Pilot SUV and Odyssey Minivans 
Toyota Settles Sudden Acceleration Suit 
GM Recalls 2013 Chevy Silverado, Suburban, Tahoe, Avalanche and Express; GMC Sierra, Savana and Yukon; and Cadillac Escalade 
Subaru Recalls 2006-2012 Legacy, Outback, Tribeca, and Forester 
Ford Sued over Hybrid Gase Mileage Claims

What happens if a car dealer does give you a document that says the "as is" sale? Essentially, the document isn't worth the paper its printed on. If you experience problems with the vehicle within a standard warranty period (typically between 30 to 90 days), you can take the car back and demand repairs. If the dealer refuses, you can sue for up to double or triple the refund price of the vehicle plus any costs associated with the purchase.

One note, this warranty doesn't apply to private car sales. It only applies to those who regularly sell cars, ie. dealers. For private sales, without any express warranties, the only option available is to cancel the sale within 14 days of purchase if the vehicle fails inspection.

If you buy a lemon, it's important to act quickly to enforce your rights. Contact a consumer attorney to see what your options are.