Dubiln Packard

Unscrupulous Collectors

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Landlords Evict Tenants During COVID-19 Against New Jersey Eviction Moratorium

Essex County Rent Court

Some New Jersey landlords have been evicting tenants during COVID-19 against the New Jersey Eviction Moratorium put in place by Governor Murphy in March.

Unscrupulous landlords have been getting away with intimidating tenants and evicting them from their homes at a time when they have nowhere to turn.

Many New Jersey residents have lost employment or have had their hours reduced due to the COVID-19 pandemic. New Jersey’s governor, knowing people would be effected by a loss of employment and then may not be able to pay rent, acted to prevent these evictions by putting into place a New Jersey Eviction Moratorium.

Some heartless landlords try to evict a tenant for non-payment anyway taking advantage of the tenent’s lack of knowledge of the moratorium.

Judges Should Step In

A typical landlord tenant hearing has the homeowner on one side and a aggressive lawyer on the other side bullying the tenant into agreeing to move out to avoid having to pay back-rent while judges stand by doing nothing to help the tenant when the judge knows full well there is a moratorium in place.

This should not be allowed to happen during this COVID pandemic with mass unemployment due to no fault of the tenants.

I blame judges for not putting a foot down when they know all too well there is a eviction moratorium in place. I understand Judges refrain from offering legal advice to a litigant, especially one who is not represented by counsel, but to allow an agressive landlord to throw someone out of their home during this very uncertain time just should not be allowed to happen.

Judges should take a stand and dismiss cases while the moratorium is in place.

The NJ State Assembly Should Act

If judges aren’t going to take a stand, the NJ State Assembly should enact legislation preventing landlords from filing eviction with heavy fines for doing so to give it teeth.

Any landlord that files for eviction while the moratorium is in place should be fined the equivalent of one month rent for filing the case and the case should automatically be dismissed by the clerk of court.

Governor Murphy Enacts Anti-Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Murphy Extends to Anti-Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Should you find yourself in this situation, you now know to tell the judge there is a moratorium in place and there can be no eviction.

Good luck

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Western Sky To Stop Payday Lending

Western Sky On-Line Payday Lender To Stop Making Loans!

I have written about payday loans many times and it always disturbs me to see what sharks these guys are. As a bankruptcy lawyer in New Jersey, I often see people who are in financial distress turn to some pretty unsavory companies.  Payday lenders are the scum of the earth and the damage inflicted because of such loans is nothing short of terrible.

Lately there has been a good deal of press about payday lenders with several states launching investigations and other actions.  Today, one of those companies, Western Sky Financial, says it will stop making loans.  As reported in The Washington Post an other news services that Western Sky will no longer be making their ultra high interest loans after September 3 as a result of governmental enforcement actions.

As being reported in the Wall Street Journal, several states have filed enforcement actions against Western Sky alleging that its loans violate state licensing and lending laws.  Western Sky contended that it was a entitled to tribal immunity because one of its owners is a member of the Cheyenne River Sioux tribe.  To date, every court that has considered this proposition has rejected Western Sky’s claim that it is entitled to tribal immunity.

Unfortunately, even though Western Sky says it will stop making loans, there are a large number of “loans” still outstanding.  If you have a payday loan from an out-of-state lender or an on-line lender, you should consult with a lawyer in your area to see if that loan is also illegal.

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County.

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Fight Collection Abuse

The Fair Debt Collection Practices Act helps protect consumers and fight collection abuse.  New Jersey bankruptcy firm Todd Murphy Law can help protect you from questionable or harassing debt collection practices.

The Fair Debt Collection Practices Act (FDCPA) prohibits the debt collector from contacting a third party (someone who has information about you) if they know that you are represented by a lawyer.  If you do not have a bankruptcy lawyer, the debt collector can only contact third parties to locate you.  Your New Jersey bankruptcy lawyer will inform your debt collectors that he/she is representing you.

A debt collector must inform you in every communication they have with you that the communication is from a debt collector.  The debt collector is required to send you a dispute/verification invitation within five days of their first contact with you.  If you submit a dispute within 30 days, the debt collector must stop trying to collect until the debt is verified.

Telephone calls from a debt collector to you must only occur between 8:00am and 9:00pm.  They cannot call you at work if there is an employer policy against such types of calls.

A debt collector must not harass, oppress, or abuse a consumer.  This is not well defined in the law, however, and is left to the courts to decide.  If there is abuse, try to record abusive collection language when you hear it, and keep a record of the calls in writing what took place and how it made you feel.  The more proof of the abuse you have the better, as it can be difficult to convince a judge or jury that abuse took place.

Debt collectors are not permitted to use false or misleading information to collect a debt, and may not collect more than what is owed.

If a debt collector violates any part of the FDCPA, you may be able to recover actual damages, $1000 in statutory penalties, and attorney fees.

We’re here to help protect against collection abuse practices. If you’re abused by a collector, contact an attorney immediately.

Call Todd Murphy Law today for a free consultation.

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Payday Loans: The Most Despicable Loans

Payday_loan_shop_windowPayday loans are indeed the most despicable loans one can get and now online payday loan lending is one of the fastest growing areas of lending.

What Is A Payday Loan?

Payday loans are short-term un-secured loans to be paid back at the borrower’s next pay day.  A fee is charged at either a flat-rate or a percentage of the loan.  Most lenders don’t verify employment or income. The loan has traditionally been taken out at a store-front where the borrower writes a post-dated check for re-payment. Lately, payday lenders are increasingly going online. In an online payday loan, the cash is deposited, less the fee, directly into the borrower’s account with the expectation of re-payment on the next payday through automatic withdrawal from the borrower’s account.

A simple example: Borrow $100.  Fee of $10.  Lender gives borrower $90.  Borrower owes $100 on the next payday.  Effective interest rate 10%.

Roll-Over Is How They Get You.

The problems start when the borrower doesn’t have the money to re-pay the loan on time.   This is exactly what the lender is hoping for.  If the lender tries to cash the check, the borrower incurs bounced check fees from its bank and, worse, fees to extend the loan from the payday lender and higher interest rates.

Example continued: Borrower rolls-over the $100 loan.  Additional fee $10.  Total fees now become $20. Borrower now owes $110.  Effective interest rate 20%.

Usually what happens is the borrower knows they don’t have the cash and they contact the lender to roll-over the loan for an additional fee.  The same thing happens again and again until the borrower realizes there is just no way she can repay the loan.

Extended example: Borrower rolls-over the $100 loan a total of 5 times.  Additional fees $50.  Total fees now $60.  Borrower now owes $150.  Effective interest rate 66%

So Get Another Loan To Re-Pay The First Loan.

Once the borrower has extended the first loan a few times, she realizes she can never re-pay that first loan.  The answer, she thinks, is to take a second loan to re-pay the first.  At least that stops new fees on the first loan, right?  Wrong!  Now the process starts again on the second loan.  Fast forward a couple of weeks and now this loan can’t be re-paid either.

New example: new loan to re-pay the first $166.  Borrower receives $150. New fees $16. Effective interest rate on this new loan 10%.

Example after the roll-over: Borrower rolls-over the second loan 5 times and incurs additional fees of $80 for total fees of $96. Effective interest rate on this second loan is now 57%.  But, remember all of this went to pay the first loan of $100, no new cash was received by the borrower.  Therefore, the interest rate on that first loan of $100 is now 146%.

And Take Another Loan…

The good thing for the borrower is that payday lenders don’t check credit so they don’t know if a borrower is behind on other payday loans.  At this point, the borrow can’t pay back the second payday loan so she just takes out another one and ignores paying the first.  And so it goes until the guys who aren’t getting paid start actions to get their money.

Aggressive Collection Actions.

Payday loan lenders are some of the most unscrupulous collectors of their money on the planet.  They will resort to anything including impersonating Police or FBI officers to threatening arrest and jail time.  Eventually, a lender will sue the borrower to get a judgment then garnish the wages of the borrower for not only the originally amount but also for all of the fees owed and costs of collection including attorney fees.  You can see how ugly this can get.

Just Say No To Payday Loans.

Payday loans are the most despicable loans you could ever become involved with.  Although I know that people who resort to payday loans have trouble getting credit from traditional sources and are usually pressed for cash, there are other options.

Online Payday Lending Is Growing.

The volume of online payday lending—a term for smaller, short-term loans at high interest rates—grew to $18.6 billion in 2012, up 10% from the previous year, accounting for nearly 40% of industry-wide payday-loan volume, according to investment bank Stephens Inc.

Payday Lenders Know The Law.

Thirty-five states allow payday lending, while 15 others and the District of Columbia effectively ban such loans, mainly through interest-rate caps. But many Indian tribes have begun making loans over the Internet and argue they are sovereign states not subject to state-level regulation. Other lenders assert they don’t have to comply with state laws if they set up shop offshore or in states with favorable regulations such as Delaware and Utah.

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Chase Abusive On Debt Collection Of Credit Cards

Chase Sued For Abusive Debt Collection Of Credit Cards: And People Are Told Bankruptcy is bad?

In just one more incident of big banks or credit card companies using abusive methods on debt collection of credit cards, JPMorgan Chase was sued in California Court alleging that Chase committed abuses against tens of thousands of California consumers for debt collection credit cards.

These guys don’t care how they get their money.

According to California Attorney General Kamala D. Harris, for about three years, between January 2008 and April 2011, Chase filed thousands of lawsuits each month to collect soured credit card debt, Ms. Harris said. On a single day, for example, Chase filed 469 lawsuits, court records show.  Ms. Harris said, Chase took shortcuts like relying on court documents that were not reviewed for accuracy. “To maintain this breakneck pace,” according to the lawsuit, Chase relied on “unlawful practices.”

Abuses are rampant.

JPMorgan Chase is already navigating a thicket of regulatory woes. The Office of the Comptroller of the Currency, one of the bank’s chief regulators, is preparing an enforcement action against the bank over the way it collects its credit card debt, according to several people close to the matter who spoke on the condition of anonymity because they were not authorized to discuss the cases publicly.

Chase assembled a “debt collection mill that abuses the California judicial process,” according to the lawsuit. Many of the lawsuits filed rely on questionable or incomplete records, Ms. Harris said. “At nearly every stage of the collection process,” the bank “cut corners in the name of speed, cost savings and their own convenience,” she said.

Bankruptcy Is Just A business Tool To Help You Get Back On Track.

Bankruptcy is a business tool used by savvy people and businesses to help get back on track once debt becomes unmanageable.  Companies, sports and entertainment figures, and regular people all over the Country use bankruptcy for what it was intended to be used for: protect companies and individuals with too much debt and restore their ability to regain financial health and become a part of the economy once again. Don’t feel badly about using the tool for savvy people.

Todd Murphy is a NJ Bankruptcy Lawyer practicing in Somerville, NJ.  He can be reached at 862-217-2361.