Credit Card Accountability Creates Shift To Debit And Prepaid Cards

In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which requires issuers to disclose to the CFPB the terms and conditions of any college credit card agreement, the number of new credit card accounts, and the compensation paid by issuers to institutions of higher education in the previous year. In order for students and the public to identify marketing agreements currently in effect, Congress further required that colleges and universities also publicly disclose these agreements. The CFPB is required to submit an annual report to Congress about these agreements, and to make the report publicly available.

The Consumer Financial Protection Bureau (CFPB) released its annual report on college credit card agreements, which shows a nearly 70 percent decline in the number of agreements since Congress passed new disclosure requirements in 2009. These findings highlight the trend of shifting from credit cards toward other products such as debit and prepaid cards. The report also found that most colleges with credit card agreements do not make those agreements readily accessible to students and families. 
BRIEF HISTORY

A lack of transparency in the student loan and credit card markets led Congress to enact reforms to help the public better understand the marketing partnerships between colleges and lenders. In 2008, Congress passed a law requiring schools to disclose preferred lender arrangements with student loan providers and establish a code of conduct for school officials.


REPORT

The CFPB found that:

• College credit card agreements continue to decline: In recent years, there has been a steady decrease in both the number of college credit card agreements and open accounts. In 2009, some 1,045 agreements were in effect. In 2013, 336 agreements were in effect; around a 70 percent drop.
  

• College debit and prepaid card agreements are now more common than credit card agreements: According to a report from the Government Accountability Office, there were at least 852 schools that had agreements with companies to market debit or prepaid cards to students in 2013. Unlike credit cards, these products do not have specific requirements in federal consumer financial laws to disclose their marketing partnerships.
  

• College credit card agreements are not readily accessible: The CFPB reviewed 35 college and university websites to determine if they made their credit card agreements easy for students and families to find and access. The Bureau found that 80 percent of these institutions—28 of 35—do not put their agreements, or information about how to request them, on their websites.
  

The CFPB’s public database on college credit card agreements is available at: http://www.consumerfinance.gov/credit-cards/college-agreements/

Can You Try Too Hard To Avoid Bankruptcy?

People you usually of the mindset to do everything possible to pay all your bills, liquidating everything possible to try to avoid filing bankruptcy, and then, as a last resort, file bankruptcy. Bankruptcy should be a last resort, referring to a financial plan, and doing things according to the plan, not just doing things to do things. Last resort does not mean do everything you can think of, regardless of what it is.

You have heard the phrase you should do things Smart, not just Busy.

The thing about the bankruptcy code, it does not necessarily make logical sense. Often one can do something whereby they think they are helping themselves, just to find out later they were actually hurting themselves, both financially and emotionally. And all because they did not take advantage of a free bankruptcy consultation.

An example

The following is a general scenario that is not uncommon given the following general facts:

• Double wide mobile home (12 months of payments left);
• 5 acres of land in a rural part of county in Florida (paid for);
• $30,000 in a retirement fund;
• a vehicle - owed $25,000, worth $17,000; and
• significant debt on credit cards and medical bills.

One other small fact, a recent downgrade in jobs; lower income.

Does this sound remotely familiar?

After liquidating retirement funds, refinanced the home to include the land for some money to pay bills. Later ran low on money, vehicle repossessed, and the real property sold at a Short Sale.

A bankruptcy consultation would have revealed the retirement funds could have been saved, and the home probably could have been saved. The car, depending on income and equity in the vehicle, could have probably been saved. Credit card and medical debts, most probably discharged in bankruptcy.

This is an example of waiting too long to receive a consultation so one can plan their affairs around the filing of a bankruptcy.

Please keep in mind, no 2 cases are the same. Every case is different, and you should seek the advise of a local bankruptcy attorney in your area.

Bank of America In Talks To Pay $12B Fine

The Wall Street Journal recently reported that Bank of America Corp. is in talks to pay at least $12 billion to settle civil probes by the Justice Department and a number of states into the bank's alleged handling of shoddy mortgages, an amount that could raise the government tab for the bank's pre-crisis conduct to more than $18 billion. At least $5 billion of that amount is expected to go toward consumer relief — consisting of help for homeowners in reducing principal amounts, reducing monthly payments and paying for blight removal in struggling neighborhoods. As the negotiations with the government heat up, the bank is being pressed to pay billions more than the $12 billion it is offering. The North Carolina bank's total tab to end government probes and lawsuits related to its conduct in the runup to the financial crisis is increasingly likely to surpass the record $13 billion that JPMorgan Chase & Co. paid last year to settle similar allegations. Bank of America has already struck a $6 billion settlement, by the Justice Department's measure, with the Federal Housing Finance Agency.

Volusia County Moving To Orlando Division

As of August 1, 2014, Volusia County is being removed from the jurisdiction of Jacksonville Division of the Middle District of Florida, and being reassigned to the Orlando Division. To view all the counties assigned to the various divisions within the Middle District, please review Local Rule 1071-1 as amended.

To view the local rule amendments taking effect on August 1, 2014, Click Here

Do It Yourself Bankruptcy: Get A Free Counsultation

Ever thought of doing a bankruptcy yourself. That's right, without the aid of legal counsel. There are both pros and cons to doing such a thing. The pros are obvious, at least 1 is obvious anyway; it is cheaper. That's right, doing a bankruptcy yourself, is cheaper; no attorney fees.

So, what is the downside to doing it yourself. Although you may file a legally sufficient bankruptcy, that is, one the Bankruptcy Clerk will accept, may be the beginning of your problems. I am sticking my neck out when I say this, but there are probably as many things that could go wrong with your bankruptcy are there are people that file on their own. Without being familiar with the Bankruptcy Code, Bankruptcy Rules, case law, and local rules before setting out to do it yourself, it is true your case may go through just fine, but you could have your case dismissed, unnecessarily loose property to creditors, or even end up in litigation.

Am I trying to use a scare tactic? I don't think so.  I couldn't help by think of Lucy when she would do things on her own, without knowing what she was really getting into.  

Even people that hire attorneys that don't do bankruptcy on a regular basis run into surprises from time to time. I am one that believes the saying of an ounce of prevention is worth a pound of cure. That is to say, before deciding to proceed on your own, at least get a consultation from an attorney in your area that actively helps clients with their bankruptcies. Want to save money, well you can usually find in almost any market attorneys that give free consultations. Why some people file bankruptcy without ever getting a free consultation is beyond me. The bankruptcy practice is a highly specialized and complex area of the law.

A recent article in The Florida Bar News is about someone that decided to do a will on their own using forms. While it is true the forms are legally sufficient, without the advise of counsel, after the demise of the will's author, the will ended up in litigation, and ultimately cost much more than simply hiring an attorney to do the will correctly to begin with. Keep in mind that this involves an area of the law that is much simpler than bankruptcy. You can find the article, with a link to the Florida Supreme Court case, at http://tinyurl.com/mgl6av8.

Before filing bankruptcy, check with friends that have filed and find out if they were happy with their attorney. If so, see if you can get a free consultation. You can also check the National Association of Consumer Bankruptcy Attorneys website (www.nacba.org) for a member attorney in your area, and check the for members of local bankruptcy bar associations that may be in your area.

St. Johns County Bankruptcy Attorney

I did a quick search on Google of bankruptcy attorneys in St. Johns County, Florida. This is because I recently opened an office in Green Cove Springs (GCS), Florida. While Ponte Vedra Beach and St. Augustine are in St. Johns County, there is a large population that resides in the county, outside of any city limits.

How would a person in the country pick a bankruptcy attorney. For those unfamiliar with GCS, it is walking distance from St. Johns County.  Both Clay County (where GCS is located) and St. Johns County have few attorneys practicing in the area of bankruptcy. This caused me to peruse the question of how would someone would pick a bankruptcy attorney?

When searching for the best attorney for filing bankruptcy, you should look at more than just price. In fact, price is probably the last thing you should look at. 

Have you ever shopped for a good bottle of wine. Quite often price has nothing to do with the quality of the wine. Of course, I am not talking about the gut buster cheap stuff. But of the moderately priced wines, you need to know your wine to select one that meets your expectations. You could get an overpriced wine that has you walk away with a bad taste in your mouth.

Attorneys are not unlike wine in many ways. I suggest you should look at

1. the attorney's experience,
2. continuing education, and
3. organization affiliations.

The experience has to do with the number of years of practice before sitting judges and familiar with case law within your jurisdiction. The law is always changing in every field of law, and bankruptcy is no exception. This is why continuing education is so important. That is also why membership in local bar associations and national associations is important.  It is easy to search for national organizations that cater to fields of law.  For consumer bankruptcy, it is the National Association of Consumer Bankruptcy Attorneys.

Also look at surrounding counties, or nearby cities. Sometimes a short drive will reward you with an attorney with more experience, more individualized attention, and a better price. This is not just relevant to bankruptcy, but also probate, criminal law, family law, or any other practice of law you can think of. When you get into areas of practice that are highly specialized, like an attorney that specializes in zombi nuclear holocaust law (imagine that might be a specialty somewhere), you might want to look a little further than just your nearby county.

If you have some ideas of how to pick a good ... no, Great Attorney, please let me know.

Price Increases Set For June 2014

OK, it appears the Court is increasing fees again.  Recently the Court raised fees, followed by a shifting of having Debtor's attorneys mailing Orders (ultimately an extra expense for Debtors), to the Court cutting back on staff.  Now the fees are again being increased.

Please see the email correspondence I recently received.  
(PLEASE REMEMBER, I'm just the Messenger)

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The Judicial Conference of the United States met on March 11, 2014, and approved changes to the Bankruptcy Court Miscellaneous Fee Schedule effective June 1, 2014. A summary of those changes follow: 

The fee for filing a complaint increases to $350.00.
The following administrative fees are increased to the totals noted:
- For the filing of a petition under Chapter 7, 12, or 13, $75.00.
- For the filing of a petition under Chapter 9, 11, or 15, $550.00.
- When a motion to divide a joint case under Chapter 7, 12, or 13 is filed, $75.00.
- When a motion to divide a joint case under Chapter 11 is filed, $550.00.

As a consequence the increases effective June 1, 2014, the full fee for filing a -
Chapter 7 will be $335.00
Chapter 9 will be $1,717.00
Chapter 11 will be $1,717.00
Chapter 12 will be $275.00
Chapter 13 will be $310.00
Chapter 15 will be $1,717.00
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So, what is the change for Chapter 7 and Chapter 13 Filers?

For Chapter 7, the fee is increased from $306.00 to $335.00.
For Chapter 13, the fee is increased from $281.00 to $310.00.

That's right, a $29.00 increase.

If you feel like giving me your feedback on this, I certainly understand.  Do you think there should be a limit as to what the filing fees should be to file bankruptcy?