Category Archives: Credit Card Debt Defense

Minnesota AG Files Robo-Signing Suit

Attorney General Lori Swanson of Minnesota has alleged in a new suit that Midland Funding LLC created false, unreliable affidavits as proof of consumer debt.

The Minnesota Attorney General went to court seeking an injunction against the large Midland Funding debt collection agency that would put an end to the company’s practice of “robo-signing” court affidavits which, she alleges, has resulted in false and deceptive lawsuits being filed against consumers across the nation.

Midland Funding LLC, is a San Diego based company that purchases aged consumer debt from credit card and other credit issuers.  The company has acknowledged  that its employees in St. Cloud, Minnesota, have wrongly signed affidavits falsely stating they had proof of a consumer’s debts.  These affidavits were then used by Midland as a basis for filing collections lawsuits against people who had already cleared their debt and others whose names were similar to the actual debtors.

You can read more on this at the Minnesota Star Tribune in a comprehensive article by David Schaffer.

Debt Collection Law Suits Engulf Courts

Many debt buyers do not have the evidence to prove their claims in court if they are challenged.  Consumers are frequently being sued for inflated amounts or for debts they do not owe and should consider hiring a lawyer to defend themselves from unscrupulous collectors.

This recent article in the New York Times about the problems of huge numbers of debt lawsuits being filed in courthouses all over the country.  The collection companies buy the debts for mere pennies on the dollar but often really have nothing but electronic data and no live  witnesses to prove their claims.  The debt collectors hope to make money on those cases where people are frightened by the often intimidating collector, or give up and do not even question the debt.  Many times the claims being filed are for monthly late charges and over limit fees and inflated interest charges charged on top of the late and over limit fees themselves.

As a consumer advocate and attorney I have extensive experience in successfully defending consumers against debt lawsuits filed in Southern California courts.  If you need legal assistance I can be contacted at 661-771-2281.

Aurora Harris
Attorney at Law
The Harris Law Firm

Usury – Obscene Interest Rates

1. the lending or practice of lending money at an exorbitant interest.
2. an exorbitant amount or rate of interest, esp. in excess of the legal rate.

There is a very interesting article here at Fox News this morning regarding the change in charges First Premier Bank, a sub-prime credit card issuer.

Of course, strictly by definition, this isn’t usury because it is perfectly legal for the company to charge a 79.9% interest rate on overdue amounts and $29 if the card holder misses a payment or spends more than their credit limit allows.

For the complete details, go to,2933,580523,00.html?test=latestnews.

This is morally reprehensible. Unfortunately, it is a typical consequence of what happens when Governments, who are supposed to protect, interfere inadequately in the market. Companies are in business to make profits for their shareholders. The government, perhaps correctly, has mandated that there needs to be a limited to the amount of annual fees a credit company can charge and this First Permier’s can no longer charge $259 in annual fees on a $250 credit limit. Consequently, they have transferred those fees to an annual interest rate. The net result being that the company will continue to collect its fees, circumventing the intent of the law.

Any way you look at it, the fees are exorbitant, be they flat fee or interest rate. And the government hasn’t helped. The best thing you as a ‘high risk’ lender can do is to NOT get one of these credit cards. Whatever you think you need, you can do without. If you can cope with a $250 credit line maxed out, on which you are paying $259 per year in fees, you can live without the credit card. In fact, you will be $509 better off every year.

Pay cash. Tell the credit card company to get lost and control your own destiny. If you have A First Premier Credit card start by cutting the card up and then pay it off within a year. Never use it again.

If you are already being pursued by credit collection and need legal assistance, call the Harris Law Firm and talk to Aurora Harris.

Exorbitant interest and unfair fees

Most people do not  realize that credit card companies have set them up to fail.  Many  creditors want you to go over limit  or be late on a payment so that they can charge you over limit fees and late fees and increase your interest rate. That is how they make the most money.   That is why many companies will give you two $500  limit credit cards instead of one card with a $1000 limit.  The two cards gives them two chances to charge you over limit fees and two chances to assess late fees. These fees can rapidly turn $1500 worth of credit card purchases into a $5,000 + obligation accruing interest at 29.99% .

Despite  layoffs or health problems, many people have struggled and sacrificed to make their credit card payments but nevertheless have faced unfair and inexplicable  interest rate increases which prevented them from making their minimum payments.  Next comes the charge off on their credit report and their debt is sold to a series of nasty debt collectors.   The harassment of collection calls and letters can be almost  unbearable. All the brow beating and harassment is designed to make a person feel hopeless, and helpless and to give up and pay this unfair unsecured debt before more important payments, like taxes and critical  living expenses.

A  person may or may not find out that  a debt collector is proceeding with a lawsuit against him or her related to that old credit card.  They may feel paralyzed or trapped in the debt.

But there are many legitimate ways to fight a credit card lawsuit.  You do not have to  just give up.  Consumer protection attorney Aurora Dawn Harris has a heart for those who are economically oppressed.  She will aggressively fight for your consumer rights.

Use the contact form at this link to get in touch with Aurora Dawn Harris.