Moving to Smart on Crime?

I have quoted the political axiom on this blog several times which says no politician has failed to be re-elected for being tough on crime. Following this axiom, politicians have exploded incarcerated populations through ‘zero tolerance’ and mandatory minimum sentencing schemes.

Perhaps now, as every budget dollar is critically scrutinized in this recessionary economy, good judgment and wisdom will prevail to reverse the trend to the “lock ‘em up and throw away the key” political mentality. New York Times Op-Ed columnist Charles M. Blow makes the case in his recent article. NY Times Article

The High Cost of Hard Time

There is an old adage that a politician never failed to get elected by being tough on crime. It seems that our politician’s desire to ’serve’ the people may be reaching a tipping point. A recent study by the Pew Charitable Trusts has revealed that one in every 31 adults, or 7.3 million Americans, is in prison, on parole, or probation, which cost American taxpayers $47 billion in 2008. Cost estimates for 2009 near $68 Billion dollars. In Florida, the number of adults under correctional control rose from 1 in 74 adults in 1982 to 1 in 31 adults in 2007. In 1988 Florida spent $ 502 million dollars on corrections. By 2008 corrections cost Floridians $ 2.82 billion dollars, 10 percent of the 2008 fiscal year budget.

Nationwide, the study found that “state general fund spending on corrections increased by more than 300 percent, outpacing other essential government services from education, to transportation and public assistance. Only Medicaid spending has grown faster. Despite this increased spending, recidivism rates have remained largely unchanged.” For a more detailed look, here is the link to the study: One in 31: The Long Reach of American Corrections

Happy Memorial Day!

In what I hope becomes an annual tradition, the selected text below is intended to pay respect to the men and women who have served our country. All gave some, some gave all.

Fourscore and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war, testing whether that nation or any nation so conceived and so dedicated can long endure. We are met on a great battlefield of that war. We have come to dedicate a portion of that field as a final resting-place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

But, in a larger sense, we cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead who struggled here have consecrated it far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here. It is for us the living rather to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us — that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion — that we here highly resolve that these dead shall not have died in vain, that this nation under God shall have a new birth of freedom, and that government of the people, by the people, for the people shall not perish from the earth.

- Abraham Lincoln, November 1863.

What Are The Odds?

Currently, there are 392 inmates on death row in Florida. Since Florida reinstated the death penalty in 1979, the State has executed 67 inmates. The average rate of execution in Florida is less than 3 a year since executions were resumed. According to the Florida Commission on Capital Cases, 24 inmates on Florida’s death row have exhausted their appeals and are considered “ready” for the ultimate punishment.

So how does the State decide who is next? Sarah Lundy of the Orlando Sentinel wrote an interesting article about the process (the Governor decides) and what past Governors have said about the process. Article Link

I have no doubt that the Governor seeks to be methodical and deliberate in making a decision; nevertheless, the net result is nothing more than an arbitrary death lottery.

What’s the Code?

For years, state courts around the nation have accepted the fact that the breathalyzer machines used by police produce sound scientific results. Defense attorneys have consistently questioned the results, especially in the face of evidence that is contrary to the results of breathalyzer test. Lawyers have proven many flaws in the intoxilyzer, nevertheless, judges have been hesitant to question the validity of these ‘tests’ in light of the heavy public focus on driving while intoxicated.

Recently, courts have begun to question the wisdom of criminal DUI convictions based on unverifiable evidence. In the most recent decision, the Minnesota Supreme Court ruled that defendants in drunken-driving cases have the right to make prosecutors turn over the computer “source code” that runs the Intoxilyzer breath-testing device to determine whether the device’s results are reliable.

Article Link

Generating Revenue

Given the condition of our economy, I recommend that you drive a little slower or prepare to make a contribution to your city’s coffers. A recent study published in the University of Chicago’s Journal of Law and Economics found a “statistically significant correlation” showing that when government revenues fall the number of traffic citations rise. Study authors Thomas Garrett and Gary Wagner reviewed 14 years of revenue and traffic citation data from 96 counties in North Carolina. Their examination revealed that the number of traffic citations issued rose in the year following a drop in revenue. While we have long suspected that speed traps were motivated by something more than public safety, this study is the first to produce empirical evidence to support the hunch.

But don’t hold out hope that an economic recovery will satisfy your need for speed…the study found no significant drop in the number of traffic citations issued when revenues increased.

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Garrett, Thomas A., Gary A. Wagner. Red Ink in the Rearview Mirror: Local Fiscal Conditions and the Issuance of Traffic Tickets. Journal of Law and Economics, 52:1, Feb. 2009

Finally, Some ACTION on the Foreclosure Front

The ‘foreclosure crisis’ in America is nearly a year old, and we are finally seeing some evidence of the government taking affirmative steps to protect its citizens. Last week Florida Attorney General Bill McCollum filed suit against FMA Services Inc., which does business under the name Financial Management Advisors for violation of the State’s new Foreclosure Rescue Fraud Prevention Act. This is the first time the state has invoked the law passed last year to protect homeowner from scammers and con artists who would prey on their desperation.

As I have pointed out on this blog before, any “foreclosure rescue” scheme that requires an upfront payment of the fee is likely just a scam. (See Coming for the Pennies on the Dead Man’s Eyes below). However, Florida has taken a giant step forward in its effort to protect desperate homeowner’s from deceit by providing significant notice requirements and barring upfront fees for ‘foreclosure rescue’ services. Here is a link to the law: FL Foreclosure Rescue Fraud Prevention Act.

Financial Management Advisors is just one of many operations that is taking advantage of homeowners. If you believe that you have been a victim of this unfair and deceptive trade practice you may report it to the Florida Attorney General’s office for investigation. Also, you may be able to pursue the company to recover the money you paid along with other damages. Consult a licensed attorney in your area for an evaluation of your situation.

Coming for the Pennies on the Dead Man’s Eyes

How new foreclosure rescue scams are robbing victims of the mortgage crisis.

Any crisis or disaster breeds opportunity for scams. Desperate people lose their objectivity and act irrationally. Remember the “gas shortage” last summer that gripped the south for several weeks? The ongoing mortgage and real estate crisis is now spawning a new wave of opportunistic scams to swoop in on desperate homeowners.

For years, swindlers have tried to separate homeowners from their home equity (you have certainly seen the commercials or received a solicitation in the mail). Now that home equity has vanished with shrinking home values, the swindlers have turned to ‘foreclosure prevention’ scams to take the last dollar from desperate homeowners. These scams encourage homeowners to pay thousands of dollars up front for them to re-negotiate, or modify the loan with the lender. The scammer may create an impressive looking refinance package, but it is no guarantee that they will ever contact the lender or negotiate a modification of the loan. Often, even if they are able to get some concessions from the lender, the homeowner could have gotten the same concession on their own, or the concessions will provide little relief and the foreclosure is merely delayed rather than avoided.

DO NOT FALL FOR THIS SCAM! Look for these warning signs:

1. You will be charged a large upfront fee
2. You are encouraged to stop paying your mortgage
3. You are told not to contact your lender or the mortgage servicer
4. Seeks to have payments or deeds transferred to the company
5. For help recognizing the signs of a scam, view this article from the Federal Trade Commission: FTC Foreclosure Scam Article

If you are struggling to make your mortgage payment there are legitimate options available:

• Do not trust internet web sites to validate the legitimacy of a foreclosure rescue operation
• Seek legal advice from a licensed attorney who practices real estate, or consumer law. Your most significant investment, your home, is at stake – seek the advice of a trusted professional
• Do not pay any money upfront to any company that you have not verified through a government agency
• If in Florida, contact the Florida Bar for information on help that may be available
  • Florida Attorneys Saving Homes
• Contact the Florida Division of Consumer Affairs
  • http://www.800helpfla.com/

More Blame for the Foreclosure Crisis

An interesting article was published last week in the Kansas City Star. Reporter Dan Margolies reports on new research from the Federal Reserve Bank of New York concluding that the recent foreclosure crisis was a direct result of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. You may remember the BAPCPA of 2005 was pushed through a Republican dominated Congress to benefit the credit card industry by making it harder for most bankruptcy filers to disclaim unsecured (credit card) debit in a chapter 7 bankruptcy.

The article is further affirmation that there will be plenty of blame for this economic mess to spread around. Here is the link: http://www.kansascity.com/105/story/976039.html

I am being sued on a debt. What should I do?

No one can argue that times are difficult. The economy is in recession, unemployment is rising, and real estate property values, once the bedrock of America’s wealth, are still seeing double digit decline. All of this means that more individuals are going to have more difficulty paying their bills, and more businesses are going to find it necessary to take more aggressive actions to collect its debts. The net effect of all of these trends is an increase in consumer debt litigation.

Once a suit is filed against you, the creditor or debt collector is not going to drop the case or ignore collection. It is important to defend the suit or a verdict will be entered against you and the court will consider the debt valid. While it is possible to set aside a verdict, it is much simpler and cost effective to defend the suit than overturn a verdict.

If you are being sued for a consumer debt, there are some very simple steps that you should take that may prevent an unnecessary judgment against you.

1. Take the suit serious. If you fail to respond to the suit, it will not matter whether the claim is legitimate or not; the creditor will get a default judgment against you and can collect that amount plus interest anytime for many years in the future. Protect your future financial situation by spending some time and effort defending the suit.

2. Make an appointment to see an attorney that specializes in consumer litigation. Even if the attorney charges you for an hour of his time, the knowledge you gain over your situation may save you many times what you pay to the attorney. Further, the attorney will likely be able to spot whether the creditor has a legitimate claim that can be proven in court, or more likely, a debt buyer is just hoping you fail to respond to get a default judgment. Learning this information at the beginning of the suit is the most critical element of your defense.

a. Make good use of both your time and the attorneys – gather all the documents that you have about the account that is the subject of the suit and bring them with you to the appointment.

b. Reconstruct dates and times or create a timeline. Any time you spend to help the attorney get up to speed on your situation is a good investment. Then the attorney will have more time to help you understand your case and possible defenses.

c. Do not write on documents. They may be needed for proof in court, and if you write information on the bills it may limit your defenses.

3. Do not procrastinate or hope it will go away. The judge will not throw out the case unless someone is there to show why it is not a valid claim.

4. Do not assume that because you had an account with the creditor, the amount of the suit is valid. Many legal issues are often present, like statutes of limitations, interest rates, attorney and collection fees, etc that can create valid defenses or reduce the amount of a judgment against you.

5. Do not fail to answer “requests” or other documents that you are served. If the creditor serves on you “requests for admissions” your failure to answer is deemed an admission that will be used against you in court.

6. If you are served a notice of hearing, make sure you or your attorney attends the hearing.

By taking some affirmative action when the suit is filed can pay dividends to your piece of mind and your financial future.If you are in the north Florida area, feel free to contact my office at 850-942-9700 to schedule a free consultation.