Creditors and debt collectors continuing to violate borrower rights?

In a recent New York Times editorial http://www.nytimes.com/2012/01/08/business/mortgage-servicing-horror-stories-fair-game.html?_r=1 columnist Gretchen Morganstern discusses deceptive practices, abuses and violations of law by mortgage processers, most specifically Lender Processing Services. She also notes that a proposed global settlement with various banks has been stalled, possibly because state regulators were too quick to give them a pass.

Of late, law firms handling foreclosures appear to have become much more careful in handling these cases. This of course has slowed the rate and which foreclosures can be completed.

While it can be argued that punishing the banks for past misbehavior doesnt help us out of the current mess, the counter argument is that with more attention to legal obligations and less on the bottom line, maybe the problem would not be as bad as it now is.

The lawsuits came about because certain parties did not follow the law in their dealings with borrowers or loan applicants. But the problem may be more general and widespread.

Of late, we have seen increased numbers of cases where creditors have illegally harassed our clients, trying to collect debts that were discharged in bankruptcy, or trying to collect money while a bankruptcy is ongoing. The circumstances indicate that these are not innocent mistakes, but a wilful refusal to abide by a bankruptcy discharge or the automatic stay which protects borrowers in bankruptcy and protects the legal process has serious consequences.

Anyone who has experienced this sort of misbehavior should not let it slide. If too many people do that, it only encourages more violations of other peoples' rights. The law provides potent remedies against such violations by creditors and debt collectors.

If you have further questions about this topic, we invite you to visit our website at http://www.nv-njlaw.com/bankruptcy-credit/