STUDENTS MAXING OUT CREDIT CARDS Workout Wire (NationalMortgageNews.com) According to the Customer Federation of America (Wash., D.C.), aggressive credit card marketing, lack of financial education and peer pressure is causing increasing debt among teenagers and college students. Over the last 5 years credit card marketing has shifted from young professionals to college freshmen and high school seniors. It is estimated that 80% of young people between 18 and 20 are cardholders, according to a George Mason University survey. The survey also found that about 60% of those "maxed out" during their freshman year. ______________________ FAIR CREDIT REPORTING ACT: FAILING TO COMPLY CAN BE COSTLY Lisa Stephanian Burton, Martindale.com In a recent consent decree, Imperial Palace, Inc. agreed to pay $325,000 in civil penalties to settle alleged Fair Credit Reporting Act (FCRA) charges against 2 of its casinos by the Federal Trade Commission (FTC). The consent decree also included a permanent injunction preventing Imperial Palace from failing to provide the required notices regarding adverse actions under the FCRA. ______________________ U.S TRUSTEE CITES “BANKRUPTCY MILL” ABUSE The U.S. Trustee Program says Bankruptcy mills (high-volume practices) are an increasing problem. The program filed 243 actions in Fiscal Year 2002 for Attorney misconduct, up 62% from the year before. Actions against Bankruptcy Petition Preparers rose 43%, to 1,150. Among the cases were the following: * A Bankruptcy-Petition Preparer in Woodland Hills, California advertised $99 bankruptcies, only to use high-pressure sales tactics on low-income elderly and disabled clients to boost the fee to $650. * A Bankruptcy-Petition Preparer in Alexandria, Virginia called himself a “foreclosure specialist” and charged up to $3,500 for services, which included trying to buy the Clients’ homes at below-market prices and renting the property back to the owners. * An Oklahoma City Attorney repeatedly failed to appear for Bankruptcy hearings, in one case forcing a disabled Client to make a 280-mile journey to attend a rescheduled meeting. * A Denver Attorney in at least 5 cases redeemed his Clients’ property from foreclosure proceedings, reselling the property each time for a profit of up to $50,000. * In Los Angeles, the U.S. Trustee last year forced Attorney Claudia Phillips to sell her practice as part of a settlement agreement after she repeatedly failed to meet with Clients or represent them adequately in Court. Court papers said Phillips allowed others to forge her signature and those of her Clients on documents, adding that her husband, Kenneth, who was not a Lawyer, actually ran the practice and offered legal advice.