Putting the pieces together.
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*** Click on the
story headline to come back to this list. *** |
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‘They Won’t Accept Our Payment.’ (with legal supplement) |
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‘They Manipulated Us into a Little
Corner and they Pounced on Us.’ |
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‘No record of payment that was
cashed more than a month ago.’ |
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‘It's like they're blackmailing you
into paying this money.’ |
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‘Reward for paying mortgage
for 10 years is the looming threat of foreclosure.’ |
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Media letter writing suggestions Some
guidelines from professionals. Letters
like the ones suggested in the forum are what the industry calls “consumer advocacy”
stuff that comes from groups of people with either a cause to champion or an
axe to grind. (It is safe to say that
this group has both.) News
departments receive thousands of such letters every month, particularly if
they are in the prime media markets (large metro areas) and have what is
known as “reach” into additional markets. Generally
speaking, a letter from a known organization (i.e., Consumer’s Union, Friends
of the Earth, AARP, the Better Business Bureau, etc.) either gets read or thrown
away depending on the interests of the management and to some degree, their
journalists. Some of that
decision-making is based on what is going on in their area that minute, that
hour, day or week and what national trends are driving the public’s appetite
for information. You
know the feeling – when you hear or see something on the news and you just
want to push the channel button on the remote so you won’t have to listen to
it again. If enough people do that,
the news directors get the word pretty quick. These
people are busy – they do this for a living and are always under some kind of
a deadline. It is an extremely
competitive business, particularly in terms of what is known as exclusivity. If they’re the only news outlet on a
story, and it can create viewer/reader interest, they are more likely to
devote resources to it. The
trick is to realize you are dealing with a reading/viewing public with an
extremely short attention span. We
listen or read in small batches of information. Our interest has to be piqued before we pay attention. That’s what headlines are for in print,
and what those “…Thanks, Bob, and right after this, we’ll show you where you
can get eternal life...” teaser messages are all about on news broadcasts. Old
news is of no interest and will not get any attention. It is actually
annoying to keep getting messages from groups of people who keep trying to
get more and more media exposure on something that has already “gotten out”
and has passed out of the public’s short attention span. The way things are today, they feed on the
latest or they fall behind and won’t be around very long. In
terms of localized consumer “investigative reporting,” there are frequent
opportunities to get local, even near-regional attention, but, the more
outlets that have already covered the story, the less likely another one is
going to copy their cohorts, especially if they’re in nearby markets. So,
first off – the Fairbanks’ problems with the FTC and HUD are no longer
NEWS. Until those investigations
grind through the bureaucracies and formal statements are made to the rather
specialized media players that cover such things, the average news outlet
will wait until the wire services push the story to them. When that happens, those who have had
coverage of Fairbanks will get an alert via computer and they will probably
jump all over it if it leads to some “dirt” on the company or its
executives. The most likely outlets
to cover that angle on a local level are the ones that have already covered
the story. Rightly or wrongly, if the
FTC and HUD announcements give the company a clean bill of health, it is
unlikely the story will get much attention in the television media, at least. Someone’s
personal situation with a company like Fairbanks isn’t really news, either.
They are consumer-related STORIES with a human-interest angle and most
outlets have one or more specialists that cover those kinds of
situations. In short, they like the
gossipy kind of “evil business takes
advantage of the poor, helpless consumer” stories. Those make for some pretty enticing pieces that might even get
on the air or on the inside of a local newspaper. The problem is, there have already been dozens of them and
reporters use Google just like everyone else. I
can almost hear the question out-loud when someone reads the email or the
fax: “Didn’t so-and-so over at such-and-such do a bit on this?” And the answer from across the newsroom
would be, “Yep. A couple of
times. Wanna see the tape?” Then
comes the concept of a “large group of people” who have been harmed. Here’s where that creates a problem for
the journalist. It’s called resources
and where the bosses are willing to expend them in making their “product”
interesting to the largest possible audience share. Today,
with resources like the Internet, there are more advocacy and issue groups
than there are stars in the sky. They
all clamor for attention from the media. They claim huge memberships and to
be a voice on behalf of many people. Those
that are really that big already have professional media representation and
lobbying/PR firms that get the job done for them. That’s how people seem to pop up on morning television shows
with stories about this or that. The
PR firms dangle the opportunity to have a spokesperson come on and provide
some interesting tidbit of important information that the public surely needs
to know. In
a very small (statistically tiny, in fact), truly grass-roots effort such as
the one being proposed here, the noise generated by a blitz will probably NOT
have the desired results – UNLESS, (and here’s where you’re running out of
time) you do one or more of the following: Tie
the issue to a public person with political sensibilities. This person is probably an elected
official or someone appointed by an elected official. He or she is going to either be a champion
for the cause (because they see an opportunity for themselves or are simply
altruistic and see the evil for what it is) or they are going to be hung out
to dry as the enemy if something comes out and they knew about it and didn’t
“do the right thing.” Senators
Mikulski and Sarbanes got on board rapidly as champions when the cases broke
out in Maryland. I strongly suspect
that their staff was contacted personally by one or more well-connected media
people who told the staff, in advance, about the horror stories that were
about to come out. That gave the
staff the time to gather information and brief the Senators (again, in
advance) and we’ve seen the results. So
far, it doesn’t look like anyone in the media has sought out and cornered a
politician that could get burned if the FTC or HUD drops the ball on this
one; at least we don’t know of one that has.
SO
– potential new messages
to the media to get them interested again
(in your own, personalized style,
of course): “I
have beat my brains out trying to get help from (pick your new political adversary – and remember they may not like it)
but … he/she hasn’t …. (be truthful!)”
“It
looks like the high-powered lobbyists have managed to derail the FTC on the
Fairbanks investigation. It’s been
going on for months and not even (your congressman, senator) seems to be able
to give me an answer on when these people are going to be stopped.” “Congressman/Senator
so-and-so just won’t believe me.
He/she would rather take the word of the predators in the lending
business. I’d love to know what kind
of backing he gets from the mortgage industry.” “I
was hoping the news out of Salt Lake City about all the management changes
was good, but it looks like nothing has changed and the investigations are
going nowhere. Even (so and so)’s
office doesn’t know anything.”
And some NEW angles – take ideas and again, put them in your own
words: “With
all the noise about record numbers of foreclosures and bankruptcies, why
isn’t anyone looking into companies and attorneys that make a living off
them?” “Why
aren’t the bankruptcy courts asking questions of some of these lenders?” “The
get-rich-quick ‘cash-flow’ real estate seminars are teaching people how to
help companies like Fairbanks profit when they steal people’s homes. Foreclosure used to be expensive for
lenders, now they’ve got help and there are scams everywhere.” “Credit
data isn’t secure anymore. All you
have to do is claim that you have an interest in buying distressed properties
and you’re able to find out how much trouble the homeowner is in.” “They’re
locking us into a loan. We can’t
refinance, and interest rates are going to go up. That’s what they’ve been holding out for. They got away with it long enough to
protect those high interest-rate loans from being refinanced.” In
summary – make it new! Make it brief
– tie something to it that the reporter doesn’t have to search forever to
find another contact, as in a politician. |
Homeowner: They Won't Accept Our Payment
POSTED: 5:53 p.m. PDT May 9, 2003 UPDATED: 6:04 p.m. PDT May 9, 2003 SACRAMENTO, Calif. -- A Northern California couple says it dealing with a nightmare -- a paperwork problem that could cost them their home. Now, they're learning they are not alone. It started with a letter from Sandy and Phillip Broussard's lender, saying their mortgage had been transferred to another company. In this case, the company is called Fairbanks Capital. "They told me I was behind three months. I go 'How could I be behind three months? I just got you this month,'" homeowner Sandy Broussard said. The mortgage was transferred in March. And by March 11, the company was already assessing late fees for allegedly missing payments in January. "I told them I want to send in a payment, and they said 'We're not going to accept a payment unless you pay four months behind. But now you have lawyers fees too,'" Sandy Broussard said. The Broussards say that Fairbanks also said they would have to buy hazard insurance, even though their home is fully insured. Then, a man wrote the Broussards, offering to buy their house because a notice of default had been filed, according to the family. "They're fully intended to sell this house. They won't accept our payment. We have the money. We want to pay, but they just put us off, put us off," Philip Broussard said. And it turns out that the Broussards are not alone. Customers across the country are complaining that payments aren't being credited to their accounts, unexplained fees are showing up, and they're accumulating huge costs trying to save their homes. Now, many of Fairbanks Capital's customers are teaming up in Northern California. A class-action lawsuit that has been filed in Contra Costa County accuses the company of operating a "deliberate unlawful scheme" to cheat homeowners out of millions in "illegal fees and charges." The lawsuit names Fairbanks Capital -- based in Utah -- and Walnut Creek-based P.M.I. Mortgage Insurance Corp. It owns 57 percent of Fairbanks Capital. A spokesperson for P.M.I. said that the corporation is only an investor in Fairbanks Capital and has no control over day-to-day operations. But P.M.I.'s president became Fairbanks' chairman of the board on Thursday. The spokesperson said that is an effort to exercise more control over the company to make it more customer friendly.
For complaints, you can contact the Fairbanks Capital vice president of Customer Advocacy, Kristen Varnedo, at (904) 722-7557. Copyright 2003 by TheKCRAChannel. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
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Supplement: Every state has what is called the U.C.C. (Uniform Commercial Code). Although the citation may differ from each state, the meaning is the same. The following is for the state of California. Consult an attorney for more information. 3603. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. (c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument. |
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'They Manipulated Us Into A Little Corner
And They Pounced On Us' By Liz Rocca MOUNTLAKE TERRACE - Some
local homeowners tell us they're trapped in a mortgage nightmare. They make
payments -- only to be threatened with foreclosure. "This is an awful
thing," said Charleen Carr-Dickson. After 30 years,
Carr-Dickson was shocked when her mortgage company moved to foreclose. "It's like a loss
of, well, your hopes and dreams," she said. Charleen had fallen
behind in her payments. She thought she'd worked a deal with her mortgage
servicer -- Fairbanks Capital -- to catch up. Instead, Charleen says
Fairbanks started piling on undisclosed fees: $100 for an appraisal, $500 for
attorney fees, and $98.04 for a payment shortage advance. Even though she was now
paying on time, she was really falling further behind. "They manipulated
us into a little corner and they pounced on us," she said. James Riche says there's
also the problem of them not posting payments when you send it through the
regular mail. Riche made every payment
-- the paperwork proved it. But Riche says Fairbanks Capital insisted he was
missing a payment and quickly threatened to foreclose. "I mean, this is
horrible stuff," he said. The state Attorney
General is investigating 42 complaints. They say Fairbanks fails to credit
mortgage payments, imposes unfair fees, and sometimes fails to pay property
taxes and insurance for customers. Fairbanks Capital is not
a lender, but is hired to collect and apply payments. The company has not
returned our calls. But we've learned the
office of Housing and Urban Development and Federal Trade Commission are
investigating. Charleen has had to file
for bankruptcy, to save her home. "My husband and I
are in our 50's, we certainly didn't expect to end up like this," she
said. Fairbanks Capital is the third-largest
mortgage service company in the nation. In the past, it has promised to
cooperate with the federal investigation. Now, homeowners in California have
filed a class-action lawsuit. |
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This is like stealing the American dream from us. We're talking
about Fairbanks Capital, a mortgage servicer that is now facing a federal
investigation. Thousands of homeowners nationwide claim the company has
cheated them out of money, and their homes. One of those homeowners
called for action. Carol McIntyre,
Consumer "Everyone wants a
home, it's the American dream and it looks like it's not going to work for
us." Carol and John
McIntyre's dream of living in Rehoboth, in their pretty little Cape, may be
crashing in on them Carol "I
can't believe it got to this..." Fairbanks handles
mortgages for people with less than-perfect credit, but lately it's come
under fire and accused of excessive over-charging and foreclosing on
homes when the homeowners have proof of payments. Carol "I ended up having
to claim bankruptcy.. " The McIntyre's admit
that they did miss a few mortgage payments, but instead of working with the
couple, they claim Fairbanks turned their backs and sent their lawyers after
them with even more fees. Carol "75 dollars here,
50 dollars there, just for the pay off fee.10 dollars for a fax.." Even when the
McIntyre's sent in their mortgage payments by Western Union,
they said Fairbanks would claim they never received the money even
though they (homeowners) have proof. On top of that,
Fairbanks charged the McIntyre's hundreds of dollars for home owners
insurance, even though their insurance company repeatedly contacted Fairbanks
by fax telling them they were already insured. Christopher Lefebvre,
Consumer Attorney "It's really
outrageous..." Consumer Attorney
Christopher Lefebvre has received a number of calls against
Fairbanks Capital..he says what's happening to the McIntyre's is typical. Christopher "They're
unsympathetic about unemployment or change of circumstances, and they would
much rather take someone's home rather than work with them to save their
home." Now, just
days away from losing their home, this couple is fighting back by
hanging flyers up around town warning other consumers about Fairbanks. Carol "This is like
stealing the American dream from us." Call for action has contacted Fairbanks
Capital. We were told that the
company is currently undergoing a complete overhaul of procedures, as well as
a review of all managers who may have contributed to the problems at
Fairbanks Capital. If you are a
customer with Fairbanks and are experiencing problems, Call for Action wants
to hear from you. Contact us at www.eyewitnessnewstv.com and click on Call for Action. |
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‘No record of payment
that was cashed more than a month ago.’ Another Homeowner Threatened With Foreclosure WBAL-TV
11 NEWS I-Team Investigation Continues POSTED: 6:05 p.m. EDT April 24, 2003 UPDATED: 8:20 p.m. EDT April 24, 2003 BALTIMORE -- Despite intense scrutiny by federal and state regulators, the borrowers' complaints continue to mount against a Utah-based mortgage servicing company at the center of an 11 NEWS I-Team investigation. WBAL-TV 11 NEWS I-Team lead investigative reporter Jayne Miller reported that Fairbanks Capital said it's reviewing its practices, and over the past two weeks, the company has promised some relief to Maryland borrowers who've filed complaints. But in just a few short weeks, a Carroll County homeowner's experience with Fairbanks Capital underlines the problems that have now drawn the attention of federal investigators and regulators.
"I'm
following up on my previous eight or nine phone calls," homeowner Greg
Tignor, (pictured, right), said. Tignor made yet another attempt on the phone to track down a mortgage payment. On the other end of the line was a representative of Fairbanks Capital. The company started servicing Tignor's loan just seven weeks ago and he's already being threatened with foreclosure -- and getting nowhere trying to resolve his problem. The trouble started when Tignor sent his March payment to a post office box in Phoenix. He was instructed to use that address by the previous servicer of his loan when his loan was transferred to Fairbanks. "I sent my March payment to Fairbanks Capital in Phoenix, Arizona. I sent it on March 5," Tignor said. The check was cashed on March 17, and at about the same time, Tignor said, he received a letter from Fairbanks Capital instructing him to send his March payment to a different address in Louisville, Ky. Tignor called Fairbanks only to learn his March payment was now missing. "The customer service individual on the line basically said 'Don't worry about it, there's always a delay with a new servicer,'" Tignor said. But plenty of reason to worry came at the beginning of April when a demand letter arrived, telling Tignor he was now in default on his loan. The letter also threatened foreclosure if he didn't pay $7,374.29 -- that's two monthly payments plus an unexplained $9.85, Miller reported. "It was
a little bit scary, surprising," Tignor said. "[It] made me a
little bit mad. Your credit is very
important to you, it's one thing you try to build and keep it up to date and
they're saying in this letter it could affect my credit, I could lose my
house. So it's a little bit scary." To prove he made his March payment, Tignor said he sent Fairbanks a copy of the check twice by fax and once by overnight mail which was confirmed as being delivered. But as of Monday, Fairbanks showed no record of any of that correspondence, Miller reported. And there was no record of the payment that was cashed more than a month ago, according to Tignor. "I don't want to be bullied [or] threatened. I just want to be treated fairly and that's not what's happened here," Tignor said. Adding to Tignor's frustration is another letter that he received last weekend in which Fairbanks claimed he has no homeowner's insurance. But Tignor's insurance statement shows his policy is current and up to date. A spokesperson for Fairbanks said the company would not comment on an individual borrower's account. |
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‘It's like they're blackmailing you
into paying this money.’ UPDATED:
5:46 p.m. EDT July 16, 2003 CENTRAL FLORIDA -- A couple could lose their home in Melbourne saying,
"I never, ever thought anybody could do anything like that." And
in Cocoa Beach, a family worries their good credit has been ruined, to which
they respond, "I'm angry, I'm furious". And in Groveland, a woman must pay hundreds of dollars in loan fees
she doesn't really owe, causing her to reach her "wits ends."
Their
common villain, Fairbanks Capital, a mortgage company they didn't chose that
later bought their loan to service it, is now giving them nightmares. Todd
Ulrich's Action 9 investigations led him to Cocoa Beach where Joan McCarthy
keeps the books for her son James.
When asked by Action 9, "Was there ever a late payment?" The
answer was, "No." Joan
can show you every cancelled check proving the mortgage was paid on
time. Yet every month for a year,
Fairbanks charged a late fee and warned foreclosure is next. The
facts, as the McCarthy's know them, is that, "Every payment has been on
time, and there has never been one every past the 10-day limit." Joan
McCarthy advises, "I did everything they asked me to do, and that wasn't
good enough." |