Author Archives: Jay Butchko
Pennsylvania AG Cleared to Proceed with Lawsuit Against Subprime Student Loan Servicer
When a person falls behind on their student loans, they typically have two options to avoid a default. The first option is forbearance, which allows you to temporarily stop making payments. The second option is known as income-driven repayment (IDR) and involves adjusting your monthly payments. IDR is usually the more affordable option for… Read More »
How the Fair Credit Reporting Act Can Help You In the Event of Identity Theft
Identity theft can wreak havoc on your life–not to mention your credit rating. When someone uses your identity to take out a credit card or loan in your name, it can take years for you to clean up the mess. And even when lenders say they will help, they often do not follow through,… Read More »
Third Circuit Finds Rental Car Company “Jackets” Did Not Create Binding Arbitration Agreements
Companies often try to trick customers into binding arbitration agreements. Arbitration is a form of private dispute resolution that typically restricts the legal rights of consumers–and thus heavily favors the business that drafted the agreement. In some cases, consumers may not even realize they have agreed to arbitration at the time they purchased a… Read More »
What Happens to Undistributed Funds from a Consumer Class Action?
Have you ever received a notice in the mail informing you that you are eligible to receive proceeds from a class action settlement? Many people simply ignore these notices and never bother to claim the money that they are entitled to by law. Which begs the question: What happens to the settlement funds that… Read More »
Federal Court Allows Predatory Lending Lawsuit Against Wells Fargo to Proceed
Predatory lending refers to the use of fraudulent, deceptive, or other unfair tactics designed to trick low-income borrowers into taking out mortgages they cannot afford. Predatory lending is not just an individual problem. It creates widespread social disruption, as the higher foreclosure rates on predatory loans often lead to widespread decline in property value–and… Read More »
Pennsylvania State Police Charge 23 Members of Alleged Used Car Fraud Ring
Pennsylvania requires all new and used car dealers to be licensed through the Secretary of State’s office. Licensure helps to protect consumers against unscrupulous used car dealers who engage in questionable–if not outright illegal–sales practices. If you are purchasing a used car, you should always make sure that you are working with a licensed… Read More »
Philadelphia Appeals Court Dismisses Reverse Mortgage Borrowers’ Lawsuit Against Lender Over Alleged Kickback Scheme
We often hear about homeowners paying inflated fees on their mortgages. In many cases these excessive charges violate state and federal regulations designed to protect consumers. Indeed, most states require insurers to file their rates with a regulatory agency. Any insurer that charges more than the file rate can therefore be held accountable. But… Read More »
Answering Some Questions About the Supreme Court’s Recent Robocall Decision
Nobody likes to answer their phone only to hear an automated message on the other hand. Such “robocalls” are not just a nuisance. In most cases, they are also illegal. Federal law prohibits the use of robocalls to make unsolicited sales pitches. Unless you have previously given a business written permission to make such… Read More »
Philadelphia Appeals Court Rejects Payday Lender’s Attempt to Hide Behind Tribal Law to Force Arbitration
Payday lenders often try to sneak arbitration clauses into their loan agreements. The idea behind these clauses is simple: Strip the consumer of their legal rights by forcing them into binding arbitration, where the normal rules and protections of the judicial system do not apply. In many cases, these forced arbitrations are heard by… Read More »
Why Is My State Consumer Law Case Being Heard in Federal Court?
Here in Pennsylvania, there are a number of state laws that enable consumers to seek damages against businesses that defraud them. But just because state law provides the basis for a claim, that does not necessarily mean your case will be heard in a Pennsylvania state court. In many cases, the business that you… Read More »
