FR Credit Repair Blog

Treasury chief responds to criticism of the progress of $700B bank rescue plan; lawmakers push for additional help for homeowners. Lawmakers challenged Treasury Secretary Henry Paulson on his handling of the $700 billion bank bailout program and stressed the importance of doing more to help homeowners.

Joined by Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corporation Chairman Sheila Bair, Paulson impressed upon members of the House of Representatives that his agency has responded appropriately in what has been a rapidly changing and painful crisis that has roiled the entire global financial system.

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FTC Charges Internet Payday Lenders with Failing to Disclose Key Loan Terms and Using Abusive and Deceptive Collection Tactics.

The Federal Trade Commission and the State of Nevada have charged 10 related Internet payday lenders and their principals, based mainly in the United Kingdom, with violating federal and state law by not disclosing key loan terms to U.S. consumers and using abusive and deceptive collection tactics.

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Rules changed to benefit buyers of struggling banks.

Some of the nation’s biggest banks including Wells Fargo & Co. are in for a windfall – on top of the $700 billion government bailout – thanks to a new tax policy quietly issued by the Treasury Department.

The notice gives big tax breaks to companies that acquire struggling banks hit hard by the mortgage crisis. In some cases, the breaks could exceed the cost of acquiring the banks, according to private tax experts.

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Court Prohibits Finance Company From Unfair and Deceptive Collection Tactics. Firm Continued to Seek Payments from Consumers Defrauded by NorVergence, Inc.

Last week the Federal Trade Commission (FTC) announced that ‘IFC Credit Corporation’, a finance company that the Commission charged with unfairly collecting on equipment leasing contracts and misrepresenting consumers’ obligations to pay, cannot engage in similar conduct in the future. IFC Credit Corporation can no longer collect on finance contracts when, based on the information IFC has, a reasonable businessperson in the finance industry would conclude that the consumer was deceived into agreeing to the transaction.

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On October 23, 2008 the FTC announced an effort to shut down 33 Credit Repair Operations with the assistance of 24 state agencies.

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