We have been practicing law in Boston and throughout Massachusetts since 1985. I have represented clients in District Courts, Superior Courts, the Appeals Court, Housing Court, Probate Courts, Federal Bankruptcy Court and the Federal District Court.
A client called us the other day and reported that now that he was 18 months post bankruptcy, his FICO credit score was 640, he was getting better and better rates on his credit cards, and that he was “overjoyed” at how “easy this was” once he was given the relief that the “fresh start” the law promises. Apparently he has been following the simple rules that improve credit scores.
Read MoreClients often ask their consumer attorney how to teach their college bound kids about credit and finance. At the intersection of when their income is low and needs are high, these enthusiastic young folks need clear instruction on how to manage their financial life. A wonderful approach to dealing with offspring and their finances is in Michael Stopler’s book, Wealth: An Owner’s Manual. The simple approach is to open a bank account which Suzie, or both of you, has access to, have her put her earnings in and you put a monthly, or quarterly, allowance in. The account can have a checking and debit card and Suzie is responsible for managing the account. Another approach is to give Suzie a credit card that you are responsible for.
Read MoreNow that Congress has passed the 2010 Consumer Financial Protection Act, our consumer clients ask how it will affect them, who will lead the agency, and when. Daily media reports indicate that while Harvard’s Elizabeth Warren, the consumer champion, is still in the running, no decision has been by the Obama administration. While we agree that Warren’s relentless push for consumers entitles her to full consideration, our desire is that the ultimate results of “reform” are consumer focused, and not, as in the prior 2005 Act, bank focused.
Read MoreElizabeth Warren, Harvard Law School Professor and the champion of the Consumer Financial Protection Bureau law, passed by Congress and signed into law by President Obama, may be on the short list to lead the new agency. Warren was the Chairperson of the Federal Oversight Committee making recommendations to Congress Regardless of the president’s final choice; Warren has been a champion for consumers like our clients who are filing bankruptcy in record numbers. The new law will have multiple consequences for consumers. We intend to write several articles to review the law.
Read MoreIn a ruling by the Federal District Court in Massachusetts, Judge Young held that when a consumer wins a Consumer Protection claim (93A case) and the Court orders that the defendant pay the consumer his or her attorney fees, interest on the attorney fees begins to accrue when the original judgment enters. In Massachusetts Courts court, the interest rate is one percent per month from the time suit is filed http://www.ncsconline.org/WC/Publications/KIS_PreCivPJIPub.pdf , however the federal court rate is 5.22% from the judgment date.
Read MoreOur personal bankruptcy clients have many questions regarding their
Read MoreIn a recent study economists found a “large and statistically significant negative correlation” between financial literacy and subprime mortgage defaults. In our opinion, the ramifications run deeper than putting a new agency under the Federal Reserve Bank, the so called Financial Reform Act. Our clients, more and more, are asked to manage their retirement accounts (401k, 403b, IRA, etc.), and to make non-retirement savings decisions. Indeed, the economists stated: “Of even greater concern however, is that differences in financial literacy are correlated with consumption and savings decisions.”
Read MoreIn February 2010, the second phase of the Credit Card Accountability Responsibility and Disclosure (CARD) Act significantly changed the terms consumers were held to by credit card companies. The CARD Act generally made credit card terms more friendly to consumers, since all credit card companies are now held to the same standards. There is more good news for consumers, especially those consumers who are in the process of rebuilding credit after bankruptcy. The third phase of the CARD Act will come into action in August 2010 and incorporate the following updates: 1. If the borrower makes a payment 60 days late and suffers an increased interest rate, six months of on-time payments will cause the interest rate to return to the original rate.
Read MoreIn February 2010, the second phase of the Credit Card Accountability Responsibility and Disclosure (CARD) Act significantly changed the terms consumers were held to by credit card companies. The CARD Act generally made credit card terms more friendly to consumers, since all credit card companies are now held to the same standards. There is more good news for consumers, especially those consumers who are in the process of rebuilding credit after bankruptcy. The third phase of the CARD Act will come into action in August 2010 and incorporate the following updates: 1. If the borrower makes a payment 60 days late and suffers an increased interest rate, six months of on-time payments will cause the interest rate to return to the original rate.
Read MoreWith the end of the second quarter imminent, Massachusetts consumers continue to file personal bankruptcy at a rate higher than the national average. The rate for this quarter will not be known for a while, but the numbers for the first quarter, 272,048 Chapter Seven filings, and 373,551 total filings. Those numbers indicate that over 72% of the filings are Chapter Seven.
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