Orange County Bankruptcy Lawyer Blog

Thousands of Southern California residents are getting phone calls and letters from banks and credit card companies, as new consumer protection laws begin to take effect today.

As our Garden Grove bankruptcy attorneys continue to report on our Orange County Bankruptcy Lawyer Blog, credit card debt is a leading cause of Chapter 7 and Chapter 13 bankruptcy filings in the Los Angeles area.

Bank Rate reports on some of the new rules that take effect today:

-Credit card offers will have a new look and new requirements. Fees and interest rates must be displayed in bold text and the interest rate must be in large font. Fees will be summarized in their own table.

-Those approved for a new credit card will receive a one-page summary of the agreement. Fees will be highlighted in a table and no longer buried in a 15- or 20-page agreement.

-Monthly statements will be easier to read, with important information on fees and interest rates clearly marked in summary boxes at the top.

-Minimum payment warnings will tell consumers how long it will take to pay a bill off by only making the minimum payments and how much it will cost.

-Account changes will no longer sneak through the mail in nondescript envelopes. They must now be disclosed in a box at the top of the statements.

Banks must also allow consumers to opt into overdraft protection, so that customers are no longer surprised by the multiple large fees that can come with over drafting your account several times using an ATM card. However, these changes have a dark side. It seems for every move the government makes to protect consumers, credit card companies create a new stream of income. Large membership fees, fees for card holders who do not use their card, and a reduction in card-member benefits are being reported. Banks are also instituting a variety of monthly and user fees on bank accounts and checking accounts.

If you are considering bankruptcy in Santa Ana or the surrounding area, speaking with an experienced attorney can help ensure that your rights are protected throughout the legal process. Bankruptcy can offer a fresh start for consumers struggling with credit card debt, foreclosures, bad debt, liens, or other financial problems in the Los Angles area.

Continue reading "New bank rules aim to protect Los Angeles consumers" »

The Orange County Bankruptcy Attorneys are excited because key members of the House of Representatives will offer an amendment to the financial services regulatory overhaul bill which provides for mortgage modification of principal residences in Bankruptcy. The Orange County Chapter 7 Attorneys along with attorneys nationwide are pressuring the congress to pass this cram down legislation. The banks have failed to offer meaningful loan modifications across the country and the Treasury Department’s modification program seems to be a failure. Consequently so many families have lost their homes. The Irvine Bankruptcy attorneys at Shakoori Law Group look forward to the hopeful passage of this legislation which will allow the Los Angeles bankruptcy attorneys a meaningful way to help families save their home and stay in their neighborhoods and communities. It will no longer be up to the greedy banks to decide whether it’s in their own best interest to modify you loan. A neutral bankruptcy judge can review the case and decide if the loan should be modified. What a victory that would be for the homeowners!