Many consumers have at least one debit card and one credit card. Understanding the liability differences between each and knowing when it is the right time to use them is important...
Rick Slorp alleges that BAC Home Loans Servicing, L.P. and its attorneys at Lerner Sampson & Rothfuss LLP (LSR) created and submitted multiple fake versions of his promissory note to use as evidence against him in a foreclosure lawsuit.
Police Arrest People In India Involved in IRS Scam
Police caught more than 700 people in Mumbai, India call centers posing as United States Tax Officials who scammed Americans into paying money for fake tax related debts. At least 70 people have been arrested so far. These calls violate the Telephone Consumer Protection Act (TCPA), which Doucet & Associates Co., L.P.A. helps people enforce.
Authorities estimate the call centers made an average of $150,000 a day, or over $50 million a year. The scammers demanded payments over the phone through money transfer wiring services and gift cards. The Federal Communications Commission (FCC) started the Robocall Strike Force in August to battle unwanted, illegal robocalls such as the IRS scam and to find the source. Consumers who get these calls can receive up to $1500 per call under the TCPA, which Doucet & Associates Co., L.P.A. has extensive experience litigating.
The scam utilized a Voice Over Internet Protocol (VoIP) to make the Indian telephone numbers imitate US numbers. Scammers also received training to learn how to speak in an American accent. First the scammers would introduce themselves and detailing a purpose for the call. Then the scammers harassed victims to make immediate payments and threatened local police forces will get involved when victims refused.
Call centers in India have an unfortunate history of scamming Americans. Scammers have attempted to sell consumers fake virus and malware software and a variety of other computer tech support. Authorities in India also noticed a rise in India based call center scams targeting residents in their own country.
Doucet & Associates Co., L.P.A. are lawyers who can help stop unwanted robocalls, junk faxes and debt collection harassment. Contact us at (614)944-5219 today for assistance.
Ohio Gets Rid of Wells Fargo
Ohio decided to cut doing business with Wells Fargo due to the recent, unacceptable behavior of creating millions of fake bank accounts with customer names. So far cities in Illinois, Washington, and the Wells Fargo home state of California have already suspended business with the bank for at least one year.
Between 2011 and 2015 Wells Fargo employees created millions of fake bank accounts to meet targeted sales and collect more money in fees from their customers who were unaware of the unauthorized accounts. Wells Fargo’s actions violated the Truth in Lending Act and threatened to destroy their customers credit score.
This month Ohio announced that Wells Fargo is suspended from doing business with the state for at least one year. Wells Fargo mostly participated in funding state bonds in Ohio and is now forbidden to do so because of the loss of trust between the public and the bank. Ohio will now solicit related services from other companies even though Wells Fargo has contributed over $800 million to state bonds in the last couple years. Whether Wells Fargo will be able to gain business with Ohio again after a year will be determined at a later time.
It was settled in September that Wells Fargo will pay $185 million dollars in penalties for their fraudulent acts. Another $5 million dollars will be distributed to customers who are victims of the unlawful act and fee generating accounts.
Wells Fargo Created Millions of Fake Accounts
Wells Fargo created millions of fake bank accounts under consumer names between 2011 and 2015. By doing so, the Wells Fargo bank was able to meet targeted sales and collect more money in fees from their consumers who were unaware of these unauthorized accounts. It is noted that consumers were signed up for checking accounts and credit cards that they never agreed to open and pay fees on. Wells Fargo has said to have dismissed over 5,000 employees regarding this issue, suggesting this was a widespread problem and ingrained in the banks culture.
Over a million fake accounts are estimated to have been created by employees in consumers names. Employees allegedly created fake email addresses and fake pin numbers to enter these accounts into the system. Roughly a quarter of the accounts created without a consumer consent were credit card accounts. These credit card accounts jointly created a little under a half a million dollars in fees including interest charges, overdraft protection fees and annual fees. Wells Fargo does plan to compensate consumers involved in these fraudulent accounts.
So how does a fraudulent bank account effect a consumer?
A bank account developing fees that are going undetected by the consumer can continuously grow causing the consumer to have to pay more once detected. If never detected, then the consumer is accumulating debt. The unauthorized bank accounts also affect a consumers’ credit score as they are missing payments. A drop in credit could affect a consumers’ ability to take out a loan on items such as a car or mortgage for a home.
Wells Fargo creating unauthorized bank accounts violated the Truth in Lending Act (TILA). TILA expresses that consumers should be made aware of certain information when signing contracts related to credit cards and loans. Wells Fargo employees violated this act by never providing a contract for consumers to sign agreeing to the bank accounts and credit card accounts that were created. More information regarding the TILA can be found in 23 Legal Defenses to Foreclosure: How to Beat the Bank by Troy Doucet.