Archive for December, 2010

Ally reaches settlement with Fannie Mae over mortgage-backed securities

Filed December 29th, 2010 joshua

Fannie Mae and Ally Financial Inc. have reached a #462 million settlement agreement which relieves the company from its obligation to buy back trouble mortgages it sold. Ally, then GMAC, has taken at least $17 billion in federal bail-out money and is 56 percent-owned by the U.S. government. The company, like many of the other […]

Bank of America Hit with Another Foreclosure Class Action Suit

Filed December 27th, 2010 meg

The seemingly endless string of class actions against Bank of America continues as the class now claims that BofA and BAC Home Loans Servicing refused to participate in foreclosure prevention programs, despite taking $25 billion in Troubled Asset Relief Program money. Bank of America, by accepting the TARP money, agreed to participate in at least […]

Banks looting wrongfully foreclosed homes

Filed December 23rd, 2010 joshua

Reports of foreclosing banks looting homes are on the rise. According to an MSNBC.com report, the story of Mimi Ash is being repeated across the country as homeowners who’ve wrongfully had their homes taken from them are returning to their homes to find them completely empty. Ash, a Truckee, Calif., woman, said she arrived at […]

Obama Signs Exemption to Identity Theft Red Flags Rule

Filed December 22nd, 2010 meg

President Obama has signed legislation that exempts lawyers, doctors and accountants from having to comply with the FTC’s Red Flags Rule. The Red Flags Rule requires financial institutions and other organizations classified as “creditors” to develop programs to identify, detect and respond to indications of identity theft. The Red Flag Program Clarification Act of 2010 […]

Dannon Settles Activia, DanActive Health Claim Suit

Filed December 16th, 2010 meg

The Dannon Company agreed to settle FTC charges that it had improperly claimed that some of its popular yogurt and dairy drinks could help prevent common illnesses and relieve irregularity. Dannon had asserted that a single daily serving of its Activia yogurt could ease irregularity and that its DanActive dairy drink could reduce a person’s […]

Vitamin maker must refund $2.1M for unsubstantiated claims

Filed December 16th, 2010 joshua

The makers of two children’s vitamins featuring Marvel and Disney characters have been ordered to pay back $2 million for using misleading and false advertising. According to The Epoch Times, NBTY Inc. made misleading statements about the amount of an Omega-3 fatty acid known as DHA. These vitamins were sold in gummy and tablet form. […]

DirecTV to Pay $13 Million to Settle Consumer Fraud Suit

Filed December 15th, 2010 meg

DirecTV has agreed to pay $13.25 million to settle a 48-state lawsuit charging that it misled consumers about pricing and contracts. The lawsuit centered largely on DIRECTV’s practice of requiring consumers to enter into two-year contracts for a variety of services from the initial subscription to replacing the satcaster’s equipment, even if it was defective. […]

Auto warranty robo-calling scam operators face federal judge, admit fault

Filed December 15th, 2010 joshua

Two Florida men have admitted to operating an auto-service warranties scam which netted them $40 million over the last two years. According to a report from The Carmi (Ill.) Times, Christopher Cowart and Cris Sagnelli admitted in a federal court in Illinois they operated the bogus Transcontinental Warranty Inc., selling auto-service warranties to consumers over […]

State Attorneys General, Banking Regulators Investigating Foreclosure Problems

Filed December 13th, 2010 meg

14 state attorneys general and three or four banking regulators are investigating how banks and mortgage servicers handle foreclosures. The investigation, which began with the industry’s use of “robo-signers,” prompted a temporary moratorium on foreclosures and sparked concerns about the impact to the national economy. The group met with the five largest servicers that service […]

Banks, Fannie Mae and Freddie Mac Pass Foreclosure Moratorium Over Holidays

Filed December 10th, 2010 meg

Joining Bank of America, JP Morgan Chase and Wells Fargo, both Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from December 20 through January 3. To go along with this good news at least one company, Trans Union Credit Bureau, is predicting the pace of […]