Ever heard of a cramdown? It’s when a bankrupcty court splits a home loan into two parts: a secured loan that’s equal to the current value of the home, and an unsecured loan that covers the rest of the outstanding debt. The secured loan is paid, and the unsecured isn’t. It can result in lower monthly payments (if the new loan amount is amortized over the course of the loan), but the important part is that it helps guarantee that a significant part of the loan will still be paid off.
legislation
Giving The Phone Book Spammers What For
By 1.5.09
How can you tell the number of vacant houses on a block? Easy. Just look for the houses with phone books piling up on the porch. The phone book spammers count those property-value killers into their circulation numbers, which is how they sucker businesses into buying listings in the yellow pages. Minnesota blogger Ed Kohler is even angrier about phone book spam than I am, and is on a bit of a mission to never have a phone book on his property again. So he got a little pissed when Verizon, a company he has no business relationship with, tossed one on his steps.
Court Changes Mind, Strikes Down Anti-Spam Law
By 9.12.08
The court noted that “were the ‘Federalist Papers’ just being published today via e-mail, that transmission by Publius would violate the [current Virginia] statute.”
Should Consumers Be Able To Opt-Out Of Phone Book Deliveries?
By 8.10.08
Phone book publishers spit out over 600 million phone books for just over 300 million Americans. Now the $17 billion a year industry is defending itself from state legislatures that want to restrict phone book circulations so consumers don’t wreck their snowblowers when they hit snow-covered phone books. True story.
Let's Face It: Mandatory Binding Arbitration Sucks
By 7.17.08
A few days ago a “big business” lawyer wrote an opinion piece in the Wall Street Journal suggesting that those mean old people in the government were trying to take away your right to arbitration. How dare they!
By 7.10.08
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The Senate passed the FISA bill today, which effectively puts an end to any chance of legal repercussions for telcos who helped the government spy on citizens. Senator Obama voted for it, Senator McCain didn’t vote, and Senator Clinton, for what it’s worth, voted against it. Find out how your senator voted here. [TechCrunch]
Ohio Senate Passes Strict Lending Legislation, Prepares To Punch Payday Lenders In The Face
By 5.14.08
House Bill 545 would slash the current interest rates charged by payday lenders to 28 percent, down from 391 percent, prohibit loans terms of less than 31 days, and limit borrowers to four loans per year. It would ban Internet payday lending, and it also attempts to encourage lenders to get into the small-loan business.
Activist Who Once Called Video Games "Killographic" Praises The ESRB Grand Theft Auto Rating, Boos Proposed $5,000 Fine
By 5.9.08
Phil Villarreal of the Arizona Daily Star has located a more reasonable voice to weigh in on the GTAIV controversy in (surprisingly enough) National Institute on Media and the Family founder, David Walsh. Walsh has been praising the ESRB for its “improved enforcement of not selling M-rated games to kids,” and says he trusts the ESRB’s “M” rating for Grand Theft Auto IV.
Republicans Have Killed The Passenger's Bill Of Rights. Long Live The Passenger's Bill Of Rights!
By 5.7.08
Get ready to spend nine hours on the tarmac without food or water. Senate Republicans yesterday shoved the Passenger’s Bill of Rights into the chamber’s overhead bin, killing off hope that the bill will pass before the elections. Even worse, the shot-down bill had transformed into a gleaming marvel of consumer protection.
L.A. County Tells Taco Trucks To Keep Moving
By 5.5.08
Peter writes to let us know that taco trucks in Los Angeles county now have to move to a new position every hour: “The county of Los Angeles has enacted some new legislation to prevent taco truck owners from staying in one spot, with penalties of a fine of up to $1000 or jail for failures to comply.” Why such a weird law? Because area restaurants say they’re stealing away customers. If you like your carne asada from the side of a truck, be prepared to start chasing them down as they circle through L.A. county in a weird Mexican-food carousel.
EU Pushes For Per-Second Wireless Billing
By 3.17.08
Viviane Reding, the European Union’s Telecommunications Commissioner, is our new wireless hero. She’s demanding that wireless carriers in Europe begin billing on a per-second basis rather than per-minute, because “at the retail level, the difference between billed and actual minutes appears to be typically around 20 percent.”
Carriers Promised Congress They'd Pro-Rate ETFs; Senator Asks Them, "When?"
By 3.14.08
In a letter to Sprint, AT&T Mobility, and T-Mobile, Sen. Amy Klobuchar (D-Minn.) has asked the companies whether or not they’re going to start pro-rating their Early Termination Fee policies as promised, reports RCR Wireless. “Sens. Klobuchar and Jay Rockefeller (D-W.Va.) are co-sponsors of a sweeping wireless consumer protection bill” that carriers are against. In her letter, Klobuchar writes, “It is time for the wireless companies to adhere to the assurances they made to the American consumer and start pro-rating these fees.” In response, Sprint said by the end of Q2 2008, T-Mobile said the first half of 2008, and AT&T Mobility said nothing at all. (Verizon already pro-rates their ETF.)
House Passes Bill That Would Require Colleges To Practice Network Filtering
By 2.12.08
Last week the House voted 354-58 to approve a college funding bill that requires colleges to “make plans to offer some form of legal alternative to P2P file-swapping” and to implement some form of network filtering. Luckily for sane people everywhere, the White House has already made veto-noises at the bill for other reasons—but still, the MPAA came that much closer to forcing its admittedly false worldview on universities.
By 1.21.08
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Some libertarian-flavored analysis of the mortgage crisis, from Credit Slips:
If my lugubrious predictions prove true, there will be a measurable–possibly quite large–impact on the market. Such rules will make mortgage lending less profitable to everyone in the system-so the number of mortgages written will decline and those that are written will be marginally more expensive. It will winnow the number of mortgage brokers and so remove some who have committed fraud in writing mortgages. It will make investors upstream think twice about buying a debt that carries not only a fraud claim but also the possibility of tort liability for too generous lending, and even a lasting stain (for debt liability) that cannot be removed by assignment to another.
Do Presidential Candidates Care About Consumer Issues?
By 1.7.08
Most Presidential candidates could not care less about consumer protection, but several have taken a stand on one of the sexier consumer issues: toy safety. Let’s break down where they stand.
By 1.4.08
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New Jersey, Rhode Island and Connecticut are preparing legislation similar to New York State’s airline passenger’s bill of rights. [San Francisco Chronicle via ConsumerWorldBlog]
Consumer Groups Support National Banking Complaint Hotline
By 1.3.08
Consumers Union and Consumer Federation of America both threw their support behind Rep. Carolyn Maloney [D-NY]’s “Financial Consumer Hotline Act of 2007,” a proposal to establish a single national hotline where consumers can file complaints against any financial institution. Currently there are five different federal agencies who regulate the banking industry, each with its own system for collecting and addressing complaints.
