By Ryan C. Wood
It is unbelievable the amount of mail our bankruptcy clients receive after they file for bankruptcy protection because they filed for bankruptcy protection. The different types of mail they receive are even more concerning.
New Scam – THE LETTER YOU RECEIVE MAY NOT BE FROM NATIONSTAR LLC AND IT IS NOT NATIONSTAR LLC’S FAULT
If you have no debts with Nationstar LLC and you receive a letter that says it is from Nationstar LLC there is probably a problem. We just had a client, and us, receive a letter from some crook representing the letter is from Nationstar LLC. It is not of course, but the letter looks very legitimate. The phone number on the letter is 1-877-343-5602. If you are reading this because you received this letter please go to www.ftc.gov and file a complaint on-line or mail in a complaint with a copy of the letter you received. Unfortunately I did not initially identify this as a scam letter. The letter looks like other letters we legitimately receive from Nationstar LLC. The letter will have the correct address for the client and correct address for the bankruptcy attorney that filed the case including the correct bankruptcy case number. There will also be an account number on the letter. So, I emailed my client and asked the client what is going on here? We were not aware that Nationstar LLC was a creditor in this client’s bankruptcy case. So the client called the phone number listed above. Apparently almost all of the options to choose from are to make payments. Okay, that seems odd. So then apparently our client got a human being on the phone and she smartly started to ask them questions about what is going on here. THEY ASKED HER FOR HER SOCIAL SECURITY NUMBER!! Every now and then a creditor calls my office and tries to get me to disclose the last four digits of our client’s social security number. Never will we provide this information over the phone to someone who called us. Our client again smartly told them more or less to jump in a lake. I do not know how the call ended, but clearly when you call 1-877-343-5602 it is just another scam to steal identifies and collect payments fraudulently. How sad. Hopefully bankruptcy attorneys far and wide will Google 1-877-343-5602 and find this article or some other warning so they too can counsel their clients to ignore the fake letter.
Required Course When Filing Bankruptcy
As you may already know there are two required courses that must be completed when filing for bankruptcy protection. The first course is completed before the case is filed and the second course is completed after the case is filed. The first one is not a problem. How can some company send our bankruptcy client information on how to complete the first required course before the case is filed? It is not possible. So we are safe there. The problem is after the case is filed. Once the case is filed our client’s mailing address is now part of the public sphere and available to advertisers. So what happens? Our clients receive letters in the mail that they must complete the second required course. The letter includes scary language that is misleading and tries to fool our clients into completing the second required course with them for almost 5 times the cost our clients should pay for the same course when using the course provider we recommend to them. So, thank you Sage Personal Finance for marketing to our clients without their permission and trying to charge them 5 times the cost of the second required course. It just proves to our clients how much we care about them and how we will not let them get ripped off. Keep up the good work!
Credit Card or Personal Loan Applications
Everyone likes to rant that bankruptcy causes lenders to lose money blah, blah, blah. Really? So why do all of our clients receive credit card applications and personal loan applications in the mail even before they receive an order of discharge discharging their eligible debts after filing for bankruptcy protection? Hmmmm? Arguably the only thing lenders lose is gravy or icing on the cake. Why you ask? Because when you can charge interest at a rate that used to be illegal under state usury laws the borrower ends up paying three to four times the amount ever borrowed if not more. So arguably lenders only lose gross profits they should not be legally able to charge consumers to begin with. Think about it. Anyway, one the types of mail our clients receive are applications for the extension of credit.