Here are some tips if you are served with a debt collection lawsuit: http://link.brightcove.com/services/link/bcpid1079049415/bclid1078606396/bctid1078545614
Here is how to Defeat Demeaning Debt Collectors -- Fight Back Against Debt Collection Harassment: http://link.brightcove.com/services/link/bcpid1079049415/bclid1078606396/bctid1078637803
Many people have inquired about the class action filed against the Metropolitan Money Store. To answer some of the questions, there is a website devoted entirely to this case, as well as the information below. The website is: http://www.metromoneystore.com/
To understand the nature of a Foreclosure Rescue Scam in general, see this video put out by Freddie Mac http://www.freddiemac.com/avoidfraud/ and also see the section of this blog titled "What is a Foreclosure Rescue Scam?" at http://www.hollandlawfirm.com/myblog.php?action=showposts&cat=4
We are also posting links to articles and television coverage that has appeared since the filing of the initial Complaint in the Circuit Court for Prince George's County, Maryland in June, 2007. That case was dismissed and then the case was refiled in the United States District Court for the District of Maryland in the Greenbelt Division. A copy of the original federal complaint can be seen here: http://www.metromoneystore.com/uploads/1_Class_Action_Complaint_and_Demand_for_Jury_Trial.pdf
The initial Complaint was filed in Maryland's Circuit Court for Prince George's County. That Complaint was then dismissed and a new one was filed in the United States District Court for the District of Maryland, where the case is currently pending before a United States Federal District Judge. To read a copy of the federal Complaint, click here: http://www.metromoneystore.com/uploads/1_Class_Action_Complaint_and_Demand_for_Jury_Trial.pdf More information about the docket is at the Justia website here: http://dockets.justia.com/docket/court-mddce/case_no-8:2007cv01957/case_id-151338/
Since we filed this case, others have gotten involved, including the Attorney General for the District of Columbia, which has filed its own lawsuit. Read about that here: D.C Attorney General filed a lawsuit against the MMS: http://newsroom.dc.gov/show.aspx/agency/occ/section/2/release/11761/year/2007
Most of the many articles and TV coverage are listed below:
NBC Dateline story from December, 2007 (includes excellent explanation of the scam and great footage of the alleged $800,000 wedding video): http://www.msnbc.msn.com/id/22083918/
Washington Post Article from October 10, 2007: "Trying to Hold Onto Home" http://www.washingtonpost.com/wp-dyn/content/article/2007/10/09/AR2007100901997.html
Washington Post Article Editorial from October 1, 2007: "Foreclosure Fraud" http://www.washingtonpost.com/wp-dyn/content/article/2007/09/30/AR2007093001215.html
September 27, 2007 article in the German publication "Der Standard": http://derstandard.at/?url=/?id=3011435%26sap=2%26_pid=7445290
Washington Post August 26, 2007: "Fairy Tale Wedding" -- http://www.washingtonpost.com/wp-dyn/content/article/2007/08/25/AR2007082501362_pf.html
July 30th story by ABC Channel 2 News Investigative Reporter Tisha Thompson: http://www.abc2news.com/content/investigators/mort-melt/story.aspx?content_id=fc656b50-0cc5-432d-8ac9-edf1c3b62979 and video at:
http://www.abc2news.com/content/investigators/mortgage-home.aspx (then click on "foreclosure scams" in the right hand screen).
July 25th Baltimore Sun regarding the expanded class, additional defendants, and filing in federal court: http://www.baltimoresun.com/business/realestate/bal-bz.metropolitan25jul25,0,470665.story
Washington Post July 18, 2007: http://www.washingtonpost.com/wp-dyn/content/article/2007/07/17/AR2007071701715_pf.html
July 13 Washington Post article indicating that Defendant Sussex Title LLC of Rockville, Maryland is cooperating with state and federal authorities: http://www.washingtonpost.com/wp-dyn/content/article/2007/07/13/AR2007071302019.html
Watch the July 13 CBS News Investigative Report at: http://www.cbsnews.com/stories/2007/07/13/cbsnews_investigates/main3057178.shtml
and post comments about this July 13th story at: http://www.cbsnews.com/blogs/2007/07/13/couricandco/entry3056677.shtml
July 12th Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2007/07/11/AR2007071102243.html
July 12th Maryland Daily Record at: http://www.mddailyrecord.com/article.cfm?id=1888&type=UTTM
You can also read more infomation about this case here: http://homeequitytheft.blogspot.com/2007/07/cbs-news-on-maryland-foreclosure-rescue.html
To watch one of their old sponsorship ads, click here: http://link.brightcove.com/services/link/bcpid275898371/bclid277013959/bctid281863612
If you are a vicitm of this scam, please feel free to contact us at: http://www.hollandlawfirm.com/contact.php We represent only homeowner victims, not "investors" or "straw purchasers" who were involved in this scam. But if you want to see the scam from the viewpoint of an "investor", click here: http://financial.lawyersandsettlements.com/complaints/405031/Over-a-year-ago-I-was-recruited-to-participate-in-what-I-no.html
Here is the original Baltimore Sun article that shed the light on this story:
Class action alleges home equity theft
Foreclosure-rescue firms object of suit
By June Arney
sun reporter
June 19, 2007
Two Prince George's families filed a class action lawsuit yesterday seeking to recover millions of dollars in home equity allegedly lost by hundreds of Maryland homeowners in a foreclosure-rescue scheme.
The lawsuit, filed in Prince George's County Circuit Court, claims to involve the single largest mortgage fraud in Maryland history and also seeks unspecified damages from six known and several unknown defendants. It indicates that criminal investigations are under way.
"It's statewide, and it's at least a couple hundred people," said Phillip Robinson, executive director Civil Justice Inc., a Baltimore nonprofit that helped prepare the lawsuit. "There are other victims outside of P.G. County, in almost every county," including Baltimore and Howard counties and perhaps Baltimore City, Robinson said.
Robinson said Civil Justice may ask Gov. Martin O'Malley for a moratorium on foreclosures to address the problems since there are hundreds of people at risk of losing their homes.
Foreclosures rates have been rising sharply in the wake of the housing market's slump, especially in the suburbs, as many buyers who had stretched to purchase homes have found themselves unable to keep up with payments. Just last week the Mortgage Bankers Association reported that loans in the foreclosure process in Maryland rose nearly 30 percent in the first quarter compared with a year earlier. The share of borrowers behind on their payments rose nearly 20 percent.
Named in the complaint filed yesterday are Metropolitan Money Store Corp., a Lanham company that bills itself as a foreclosure consultant and credit services business; Fordham and Fordham Investment Group Ltd. of Lanham; RTE Title & Escrow LLC of Largo; Sussex Title LLC of Rockville; Diane Jones of Capitol Heights; Leticia Nicholls of Takoma Park and other, unknown defendants.
Civil Justice filed the suit along with Legg Law Firm LLC of Frederick and The Holland Law Firm of Annapolis on behalf of two Prince George's County couples, Melvin J. Proctor Jr. and Nadine M. McKenzie-Proctor, and Delores Wallace and Ronnell Wallace, and other homeowners allegedly bilked by the same defendants.
Telephones at Metropolitan Money Store and Fordham and Fordham have been disconnected. Spokespeople for RTE Title and Sussex Title declined comment. Other defendants could not be reached for comment.
Most of the advertising of the mortgage-foreclosure rescues was done in the Washington area on radio, television and with street signs, Robinson said. He said the state as well as federal agencies, including the FBI, were investigating.
State regulators did not return a phone call yesterday, but a Department of Labor, Licensing and Regulation memo attached to the lawsuit said the state and other government agencies were conducting "a major investigation." An FBI spokeswoman was unable to comment yesterday.
Peter Holland, one of the attorneys who filed the case, estimated that an average of $100,000 in equity was taken out of each home involved.
"We're talking about bad people," he said yesterday. "A mortgage foreclosure rescue scam is worse than predatory lending. They find out how much equity is in the house, and they come at you like vultures."
According to the suit, the companies approached people already in the foreclosure process but who had significant equity with an offer to save their house. The defendants then arranged its sale to a straw buyer, telling homeowners they could remain in their house for a year and then repurchase it, the suit said.
"The mortgage taken out by the straw buyer was invariably far in excess of the mortgage being foreclosed, which allowed Metropolitan, Fordham and the straw purchaser to cash out the equity in the property to enrich themselves," the suit charged.
"Hundreds of Maryland families, who thought they had entered into contracts to save their homes from foreclosure, did in fact enter into illegal contracts and transactions facilitated by real estate professionals whose sole motive was to enrich their extravagant lifestyles at the expense of hardworking Marylanders who were cash poor but equity rich in their properties," the lawsuit said.
Holland said he believes the scheme has been going on for at least a year.
"This is a foreclosure of the American dream," he said. "They're stealing not only the equity but the title and possession, too."
june.arney@baltsun.com
Copyright © 2007, The Baltimore Sun | Get Sun home delivery
Link to the article: http://www.baltimoresun.com/business/realestate/bal-bz.mortgage19jun19,0,7731354.story
What is a foreclosure rescue scam?
While it can take different forms, what we are seeing most often in Maryland these days involves 5 players: 1) a victim in foreclosure who has lots of equity in their home, usually between $100,000 and $300,000; 2) a mastermind con artist who swoops in and promises the help the homeowner "save their home" by arranging a refinacing loan; 3) an "investor" also known as a "straw purchaser" who is recruited by the master con artist and promised that they will be paid $10,000 or more for doing no work; 4) a title company which is either actively involved in the fraud or at a minimum negligent in performing its duties; 5) a new mortgage lender which is often negligent and sometimes complicit in the fraud.
Here is how it works:
1) You are a distressed homeowner who is behind in your mortgage payments. Suddenly, the house is "docketed for foreclosure." Because Maryland is a "non-judicial foreclosure state" this means that your house could be sold on the auction block in as little as 15 days from when your lender "dockets" it for foreclosure.
2) Using the power of the internet, the mastermind con artist gets your name from a computerized listing of the foreclosure docket. Then, the mastermind goes to a different website to determine a) what your property is worth, and b) how much your mortgage is. The difference between what the property is worth and the balance on your mortgage is the "equity." So, if you owe $100,000 on your mortgage, but the house is worth $300,000, then you have $200,000 in equity. The con artist now has his or her mark: you. You are feeling very stressed and very vulnerable and the con artist now comes in and promises to "rescue" you from foreclosure and allow you to keep your home. This angel is going to get you a loan or some other form of creative financing which is going to allow you to avoid foreclosure and once again be able to sleep easily at night.
3) The con artist also recruits "investors". The job of the investor is to show up at the "refinancing" table. What really happens at the "refinance" is that you sign the Deed to your house over to the "investor." You also sign a "lease-back" agreement whereby you get to stay in the house, make "rental" payments to the investor and have the option to buy the house back after a year. But as part of the "refinancing" the "investor" takes out a NEW MORTGAGE for the full value of the property, and agrees to pay all but $10,000 of it to the master con artist. So your house, which had a value of $300,000 and a mortgage of $100,000 before the "refinance" now has a value of $300,000 and a NEW MORTGAGE of $300,000. So, your equity of $200,000 has been "stripped" away by the con artists. Even if you were able to buy the house back after a year, it would be a house in which there is NO MORE EQUITY.
4) You never actually get to buy the house back, because the "rental" payments you "agreed" to are much higher than the mortage payment was. Typically, the "rent" is between 2 and 3 times what your mortgage payment was. Instead, you default on the "rental" payments, and the "investor" goes into Landlord-Tenant court and tries to have you evicted from the house, thus completing the fraud. First they take your title, then they take your equity, then they take the house. A variation on this theme is that the "investor" simply never pays the NEW MORTGAGE and therefore the new mortgage company starts an entirely new foreclosure proceeding, and you are eventually forced to leave by the new mortgage company.
So, according to this scam which is taking place across Maryland and indeed across the country, the foreclosure "rescue" does not save your house. You still lose the house. The only difference is, if you had simply let it go to foreclosure, you would have walked away with the equity in your house. But under the foreclosure rescue scam, the con artists get your equity.
To combat this problem, the Maryland Legislature enacted emergency legislation effective in May of 2005, called the Protection of Homeowners in Foreclosure Act. This imperfect statute is at least a first step toward curbing these fraudulent, illegal and immoral practices.
In December, 2007, Freddie Mac posted a video about this problem on You Tube. You can view the video and learn even more at: http://www.freddiemac.com/avoidfraud/
How Widespread is this problem:
The problem Foreclosure Rescue Scams is very widespread, and stretches all across this country. For a listing of Foreclosure Rescue Scams Reported From Around the Country, see our blog post here: http://www.mdconsumerlawyer.com/myblog.php?action=showposts&id=7
Questions? Contact us at: http://www.hollandlawfirm.com/contact.php
Peter
Foreclosure Rescue Scams Reported from Around the Country:
As Maryland Consumer Lawyers, we still run into lawyers, consumers, and even judges who are not aware of the nature or extent of the foreclosure rescue scam crisis. But this scam, which is destroying dreams and destabilizing property values, is neither new nor limited to Maryland. For the basic contours of the scam, see our previous blog post on this topic, http://www.hollandlawfirm.com/myblog.php?action=showposts&id=6 .
An excellent explanation of the Maryland foreclosure rescue scam industry, and the larger problem of subprime mortgages and foreclosures in Maryland, is a series called "Mortgage Meltdown" done by ABC 2 News Investigative Reporter Tisha Thompson. To view this outstanding series, click here: http://www.abc2news.com/content/investigators/mortgage-home.aspx and here: http://www.abc2news.com/content/investigators/mort-melt/story.aspx?content_id=fc656b50-0cc5-432d-8ac9-edf1c3b62979 and here: http://www.abc2news.com/content/investigators/mort-melt/default.aspx
Listed below are some resources and reports from around the country, which show that this is a nationwide problem. Also, for current infomration on the Metropolitan Money Store Class Action in Maryland, click here: http://www.hollandlawfirm.com/myblog.php?action=showposts&id=4 .
If you are a Maryland consumer who is a victim of a foreclosure rescue scam, and you have questions, please feel free to contact us at: http://www.hollandlawfirm.com/contact.php
General Studies:
Anatomy of a Foreclosure Rescue Scam: http://64.233.169.104/search?q=cache:Tgu_zWzBnFkJ:www.atg.wa.gov/uploadedFiles/Home/Safeguarding_Consumers/Consumer_Issues_A-Z/Foreclosure_Think_Tank/More_Materials/NJP%2520Foreclosure%2520White%2520Paper.doc+%22foreclosure+rescue+scam%22&hl=en&ct=clnk&cd=21&gl=us&lr=lang_en
CBS Evening News Investigative Report on Foreclosure Rescue Scams: http://www.cbsnews.com/stories/2007/07/13/cbsnews_investigates/main3057178.shtml
New York Times: "New Scheme Preys on Desparate Homeowners": http://query.nytimes.com/gst/fullpage.html?res=9D04EFDE153EF930A35754C0A9619C8B63
Business Week: "The Foreclosure 'Rescue' Racket":
http://www.businessweek.com/magazine/content/07_26/b4040041.htm
American Bar Association: "Mortgage Fraud Mess" -- http://www.abanet.org/journal/redesign/07fcle.html
National Consumer Law Center Report:
http://www.nclc.org/news/content/ForeclosureReportFinal.pdf
Maryland Consumer Rights Coalition Report:
http://www.mdconsumers.org/HOME_PRES_REPORT_FINAL.pdf
FBI Report:
http://www.fbi.gov/publications/fraud/mortgage_fraud06.htm
Bankrate.com:
http://www.bankrate.com/brm/news/mortgages/20050728a1.asp
Better Business Bureau:
http://www.bbb.org/alerts/article.asp?ID=593
CNN Money:
http://money.cnn.com/2007/08/22/real_estate/foreclosure_rescue_scams/index.htm
http://money.cnn.com/2006/12/07/pf/saving/toptips/index.htm
Forbes Magazine:
http://www.forbes.com/investoreducation/2007/06/11/...
Fraud Guides:
http://www.fraudguides.com/mortgage-foreclosure-rescue-scam.asp
Mortgage Fraud Blog:
http://www.mortgagefraudblog.com/
Washington Post:
http://www.washingtonpost.com/wp-dyn/content/article/...
Reports from Around the States:
ALASKA:
http://www.ktuu.com/Global/story.asp?S=6748278
ARIZONA:
http://www.azcentral.com/business/articles/1024biz-goddard1025-ON.html
http://www.kvoa.com/global/story.asp?s=6981229
CALIFORNIA:
http://www.santacruzsentinel.com/archive/2007/June/24/loca...
http://www.santaclaritarealestateblog.com/public/item/173598
DELAWARE:
http://www.delawareonline.com/apps/pbcs.dll/article?AID=...
http://www.delmarvanow.com/apps/pbcs.dll/article?AID=...
FLORIDA:
http://www.hillsboroughcounty.org/consumerprotection/foreclosureawareness/foreclosurerescuescam.cfm
http://www.wftv.com/realestate/13804930/detail.html
IDAHO:
http://www.newwest.net/index.php/city/article/state_officials_wa...
MASSACHUSETTS:
http://www.boston.com/business/globe/articles/2007/07/03/new_...
http://www.boston.com/business/personalfinance/articles/2007/0...
http://www.boston.com/news/local/new_hampshire/articles/2007/0...
MARYLAND:
MICHIGAN:
http://www.michigan.gov/ag/0,1607,7-164--134533--,00.html
MINNESOTA:
http://articles.citypages.com/2004-07-21/news/stripped-clean/
http://www.twincities.com/ci_7063518?source=most_emailed
http://news.minnesota.publicradio.org/features/2003/10/22_ols..
MISSOURI:
http://www.mercurynews.com/realestate/ci_7020596
NEW HAMPSHIRE:
http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20070930/OPINION04/309300077
http://www.wcsh6.com/news/article.aspx?storyid=63793
NEW YORK:
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20071002/NEWS/710020316
http://www.northcountrygazette.org/news/2007/09/07/foreclosure_scam/
http://www.upstatehouse.com/rss-display.php?id=inmannews63352
http://www.sbls.org/pdf/foreclosure_rescue.pdf
NORTH CAROLINA:
OREGON:
http://www.oregonlive.com/business/oregonian/index.ssf?/base/bu...
http://www.consumeraffairs.com/news04/2005/tx_rescue.html
TEXAS:
http://www.elpasotimes.com/business/ci_7272606
http://www.chron.com/disp/story.mpl/metropolitan/5243600.html
http://www.newschannel5.tv/2007/10/25/981550/
http://www.cameronherald.com/articles/2007/10/25/news/opinion/column03.txt
http://www.mysanantonio.com/business/stories/MYSA091507.02D.MortgageScam.d4a64965.html
http://www.click2houston.com/news/14118254/detail.html
WASHINGTON:
www.komotv.com/news/consumer/9712217.html
WISCONSIN:
Here is something very refreshing: an honest car dealer who tells all! Watch these Video Guides to learn tips, tricks, and things to avoid when buying or financing a car. These Video Guides provide commentary by Peter Holland, and from a local car dealer:
Auto Scams: http://link.brightcove.com/services/link/bcpid1078645122/bclid1111398362/bctid1078746020
Car Buyer's Guide: http://link.brightcove.com/services/link/bcpid1078645122/bclid1111398362/bctid1078602221
Are You Driving a Lemon? -- http://link.brightcove.com/services/link/bcpid1078645122/bclid1111398362/bctid1078746019
Car Loans: http://link.brightcove.com/services/link/bcpid1078645122/bclid1111398362/bctid1078746019
Think you have been scammed? Feel free to contact us at: http://www.hollandlawfirm.com/contact.php
As lawyers who represent Maryland car fraud victims, we are often asked: "What can I do to avoid getting scammed the next time I buy a Car"? Here are some time tested tips that we give to our clients:
DON’T finance a car through the dealership
DON’T tell the dealer what monthly payment you can afford
DON’T buy rust-proofing, appearance package, Lo-jack, Etch or any other worthless junk
DON’T believe anything that is not in writing
DON’T buy from a dealer who insists on a binding mandatory arbitration clause or a "Spot Delivery" agreement
DO get pre-approved for a loan by your bank or credit union
DO get a Consumer Reports Buying Guide for the car
DO negotiate the cash price of the car, not the monthly payment
DO get a copy of every single piece of paper you sign
DO take a used car to an independent mechanic for evaluation.
Think you have been scammed? Feel free to contact us at: http://www.hollandlawfirm.com/contact.php
Yo-Yo Sales: Why are they so wrong?
Chances are, if you financed your car through a Maryland car dealer, they had you to sign a "contingent delivery agreement" or "spot delivery agreement" or "bailment agreement" or some similar nonsense sounding document that was not explained and/or you did not understand. Spot delivery means delivery today, now, on the spot. The dealer practically forces a car on you, and insists that you take the car home today. But they are not going to let you drive over the curb until, buried in the paperwork, you sign their spot delivery agreement saying that if and when they call, you will come back with the car.
What do these "agreements" mean? Typically, they contain words to the effect that if the dealer is not able to sell your financing contract to a lender on terms acceptable to the dealer, then the dealer gets to call off the deal and force you to return the car, and pay for the mileage you put on it. Plain English Translation: the bank did not offer them as much money as they wanted for the contract, and they have changed their mind. But wasn't it a done deal, you ask? The short answer is YES, but not in the dealer's mind. (More on that below. But first, Did you know: usually when the bank takes the "assignment" of the contract, the dealer gets money back from the bank? This is because the interest rate on the "buy rate" that the bank pays for the financing contract is far less than the "sell rate" -- the interest rate the dealer gave you. This "yield spread" is often as much as TWO PERCENTAGE POINTS OR MORE. So, if you thought the dealer was shopping the banks to get you the best deal on financing, you would usually be wrong -- they are often shopping to see which bank will give them the biggest payback.)
Of course, the "spot delivery agreement" just creates the opening for the dealer to ask for more money. For example, they might say: "Your financing was not approved. We need you to either give us another $1,000 as a down payment, or else you are going to have to turn the car in." Or, they will say: "The financing fell through. We need you to come in and sign another contract." Hence the term "Yo-Yo Sale." They pull you back into the dealership almost as fast as they threw you out in that new car that they insisted that you drive off the lot today in the "Spot Delivery."
But wait -- didn't you already have a deal? Not so, says the dealer -- they changed their mind. Well, do you think that you, the consumer, could change your mind? Do you think you could just call them up and say: "I think I paid too much for this car, so either you will have to give me $1,000 back, or else I am bringing the car in and unwinding the deal." Well, faster than you can say "Yo-Yo Sale" they would remind you that right on the face of the contract it says that there is NO COOLING OFF PERIOD.
Check your paperwork. If you signed a spot delivery document, you should report it to the Maryland MVA and to the Consumer Protection Division of the Maryland Attorney General's Office. And if you are being harassed by a dealer to bring the car back, contact the MVA immediately and consider seeking legal advice. Why? Because since at least 1980, the Maryland MVA has been telling its car dealers not to use these so-called "agreements." Here is what the MVA said in their March 10, 2005 Dealer Bulletin No. D 03-05-01:
"Temporary registration permits, or certificates and plates, may not be used by dealers in cases where vehicles are released to potential purchasers prior to consummation of a vehicle sales transaction. These types of transactions are commonly referred to in the industry as "Spot Delivery," "Fronting" "Macarthur Statement," etc.
Maryland Vehicle Law and Agency Regulations provide for issuance of types of temporary registrations only in the case of bona fide sales. As this Administration has advised in previous Bulletins, a bona fide sale exists only after all financial arrangements and any other prerequisite conditions have been met. Until such time, there has been no sale and temporary registrations may not be issued....
Complaints about spot delivery have been the result of "Supplemental Contracts" that are added to finance contracts stating financing has not been finalized contrary to agency regulation. Dealers are advised not to use these "Supplemental Contracts", which have resulted in financing at higher rates than originally contracted, and failure to return deposits, and failure to return trade-in vehicles."
Bottom line: if the dealer gave you temp tags and you drove the car off the lot, there was a bona fide sale, and according to the MVA, they can't now say otherwise.
So, how can you avoid getting taken to the cleaners? Its simple: get your financing pre-approved by a bank or credit union, and don't do a "Spot Delivery" and don't ever sign a "Supplemental Contract", no matter what it is called. You wouldn't take possession of a new house before your mortgage was approved, would you? Well, the same logic applies here: don't take possession of a car until the financing is approved. And if they give you those temp tags and tell you to take the car home, then don't sign any spot delivery agreement.
So, what is the best way to know the financing is approved? Answer: avoid the dealership financing and go to your bank or credit union and get pre-approved for an auto loan. That way, the only thing you will have to negotiate is the price of the car, and when you drive the car off the lot, you can rest assured that the dealer is not going to try to call and say: Yo-Yo: "your financing fell through."
If you have been a victim of a Yo-Yo scam, file a complaint with the Maryland MVA and with the Maryland Attorney General's Office. Also consider filing with the Federal Trade Commission and the Better Business Bureau. Here is how:
Maryland Attorney General Consumer Protection Division Complaint Form: http://www.oag.state.md.us/Consumer/complaint.htm
MVA Complaint Form Against Car Dealer: http://mva.state.md.us/Resources/CS-113.pdf
File a formal complaint with the FTC: https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Better Business Bureau Complaint: http://www.bbb.org/complaint.asp
Questions? Feel free to contact us at: http://www.hollandlawfirm.com/contact.php
Peter
Your Rights After Repossession: http://link.brightcove.com/services/link/bcpid1078645122/bclid1111398362/bctid1171877261
Beware of the "3 Day Right of Rescission" http://link.brightcove.com/services/link/bcpid1111383333/bclid1078807755/bctid1078717452
Here is what to do about the growing problem of credit reporting errors: http://link.brightcove.com/services/link/bcpid1111383333/bclid1078807755/bctid1078647328
Identity Theft: http://link.brightcove.com/services/link/bcpid1111383333/bclid1078807755/bctid1078807617
See July 23rd article by Lisa Robinson of WBAL TV on the problems of arbitration clauses here: http://www.wbaltv.com/news/13739618/detail.html
The 7th Amendment to our Constitution was ratified with the rest of the Bill of Rights (the first 10 Amendments) effective December 15, 1791. For over 200 years, we have taken comfort knowing that in our country, we are all entitled to our "Day in Court." The 7th Amendment states in pertinent part: ..."the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise re-examined in any Court of the United States, than according to the rules of common law."
So, consumers have a constitutional right to a jury trial, right? If a consumer is a victim of fraud by a car dealer, no court will deny our right to a jury trial, right? In 2007, the answer, too often is, "Wrong." Why? Because of what some have called the "monster" of Binding Mandatory Arbitration.
Binding Mandatory Arbitration ("BMA") is one of the biggest challenges facing consumers today, in Maryland and across the country. Binding Mandatory Arbitration is an all too often rigged system populated by industry insiders as the arbitrators, and it often costs the consumer much more than litigation, with a much lower win rate. But the worst part is that there is no judge, no jury, no appeal, and no inherent obligation for the arbitrator to follow the law.
The horror stories of consumer Binding Mandatory Arbitration are legion. In the context of fraud and consumer protection act claims, many victims of predatory lending, foreclosure rescue scams, illegal repossessions and auto dealer fraud are finding that the courthouse doors are locked, and they will have to pursue their claims in Binding Mandatory Arbitration (think “arbitrary”).
For starters, consider this: when the auto manufacturers put BMA clauses into their contracts with car dealers, the dealers went to congress and got a special exemption from arbitration on the grounds that it was too one-sided and too unfair. And then, as soon as they won that battle, the car dealers started putting arbitration clauses into consumer contracts such as Buyer’s Orders and Retail Installment Sales Contracts.
These days, Binding Mandatory Arbitration clauses in consumer contracts are the rule, rather than the exception. And what's worse, the courts will often uphold BMA clauses under the theory that "you should have read it and understood it before you signed it." Never mind that even lawyers and judges have trouble making sense of these confusing clauses buried in fine print amidst a stack of documents one is asked to sign.
Why do dealers and lenders spend tens of thousands of dollars to enforce these arbitration “agreements” of adhesion? Why will they go to no end to force the consumer out of the courthouse and into the BMA house? Because the deck is stacked against the consumer in BMA, and there is no inherent right to judicial appellate review, or any review at all. In short, there is much less of a chance that an arbitrator (think “arbitrary”) will hold a car dealer or mortgage lender accountable than will a jury, and there is very little danger of getting an arbitrator’s arbitrary decision in favor of industry overturned on appeal (there are no appeals, and usually there is a ban on class actions as well).
You will find the same “agreements” to arbitrate in predatory mortgage lending contracts and exorbitant-interest credit card contracts. Nine times out of ten, consumers who are subject to a fine-print BMA clause have no clue what a BMA clause is, let alone the fact that they may have signed one.
Congress recently passed a law severely limiting the use of Binding Mandatory Arbitration clauses in consumer contracts involving military personnel or their dependents. So the question is: if arbitration is a bad deal for car dealers who have a dispute with car manufacturers, and if arbitration is a bad deal for military members and their dependents, then how could it possibly be a good deal for your average consumer? Especially if it involves a car loan or a mortgage – the two biggest purchases any of us could ever make in our lives?
So, what's a consumer to do? Just say NO! It's a free country. Just cross out any BMA clauses, and if the merchant refuses, then walk out. There are plenty of fair minded merchants out there who will not insist on BMA.
For more information, and to take action, contact http://www.givemebackmyrights.com
To share your BMA horror story, contact http://www.givemebackmyrights.com/bma-tellus.php
Have a question? Contact us at http://www.hollandlawfirm.com/contact.php
Peter