Proud of our Clients for speaking out against Predatory Lending at the Georgia State Capitol

Speaking out against Predatory Lending in Georgia
Speaking out against Predatory Lending in Georgia

Tony and Glenda Compton are former Social Security clients of Affleck and Gordon. In January of 2015, they received a check in the mail for $720 from Republic Finance. Glenda thought the check was a joke and told Tony not to cash it. Unfortunately, he did so anyway without realizing what he was agreeing to. By cashing the check, he unfortunately agreed to a loan that would have the Comptons paying astronomical interest rates and fees.

One of the purposes of these checks is to prey on Americans in tough financial times and get them hooked on these loans. Almost immediately after cashing their initial check, the Comptons started getting calls from Republic Finance. The Comptons were offered a lower interest rate and few hundred dollars more if they agreed to refinance the debt. In doing so, they accrued even more fees which outweighed any reduction in the interest rate.

The Comptons dutifully paid back their loan in monthly installments from February of 2015 through April of 2016. The payment started at $126 per month, but by April of 2016, the payment had grown to $170 per month. At that point, the Comptons could no longer afford to pay the loan back. In total, they had already paid back $1656. When the Comptons stopped paying, Republic Finance sued them in Magistrate Court for an additional $2,483.50 on what was originally only a $720 loan.

The Comptons first met Tom Affleck, founding partner of Affleck and Gordon, and asked him to help with a Social Security disability case thirty years ago. Since then, they have remained both friends and clients. As a result, when they knew they needed help, the Comptons brought their lawsuit to our Griffin office. Harry Brenner (one of our attorneys) listened to their story and brought the paperwork to Joel Thrift (another attorney in our office) to see if we could help. Joel and Allison Affleck (a third attorney at Affleck and Gordon) helped draft an answer to the lawsuit, and brought in another attorney, Matt Wetherington, to help on the case. That case is still pending in Henry County Superior Court. Shockingly, we discovered that it is not technically illegal to send people “live checks” in the mail to entice them into a bad loan. There may be some defenses to this suit, but it’s also possible that the loan is entirely legal. When we started researching magistrate court lawsuits in counties where Republic Finance has offices, we found thousands of other lawsuits against people who had cashed the same type of checks and could no longer afford to pay.

In hopes of further helping the Comptons, and warning other people of the danger of these checks, we reached out to Channel 46 news. Harry Samler, with Channel 46, came out to the Compton’s house and interviewed Mr. and Mrs. Compton. Ms. Compton is so likable, and her story so compelling, that Channel 46 ran a series of stories on her. Elena Parent with the Georgia Senate saw the stories. Senator Parent’s concern led her to sponsor a bill to make sending unsolicited checks to people’s homes illegal. A committee meeting was held on her bill yesterday (February 22, 2017) and the Comptons were invited to testify.

Ms. Compton was rock star at the hearing. To support the Comptons, Joel and Allison also attended the hearing. Joel introduced himself, and the Comptons, to the Senate committee and answered questions from the Senators. It was Ms. Compton’s compelling story that again won over everyone in the room, both Republicans and Democrats. The questions from our Georgia legislators were all sympathetic and seemingly indicated that they believed Senator Parent’s bill should pass. We’re hopeful that this practice will be outlawed.

It took a concerted effort by Harry, Allison, and Joel to get to this point. It also took the Comptons’ friendship, and trust in our firm, after the work Tom Affleck and his firm put into their Social Security disability and Workers’ Comp cases many years ago. We know they were nervous about yesterday and are lucky that we could be there in support. We will continue to work to make sure that no one else is tricked by one of these checks in the future.

To see more about the story, click here:
http://www.cbs46.com/story/34580685/hearing-held-to-discuss-banning-unsolicited-checks

For more information, please see our Videos page or call us at 404-373-1649.

Injured On The Job? You’re Being Watched!

It goes without saying that if you’re injured on the job and out of work there’s a good chance that you’re being watched.  Generally, it begins with an activities check by the workers’ comp insurance company to see if you are doing anything out of the ordinary instead of at home resting. Sometimes, it’s your employer who’s convinced you’re a fraud trying to rip off their company for its insurance, and demands surveillance.

When you are going to the doctor’s office, don’t go running from the car door to the doctor’s door or do anything that is contrary to your work restrictions such as jumping down from the exam table just in case the “company doctor” is watching and documenting every movement or the insurance company has hired a private investigator. Now don’t get me wrong. I’m not saying that you have to become a hermit and stay indoors 24/7 and only come out for your doctor’s appointments. I’m just saying to follow your doctor’s work restrictions and be careful in your movements and activities.  Otherwise, that private eye will capture some damaging photographs or video of you helping your friend in his restaurant or gas station when you are out on a workers’ comp disability claim and next thing you know you will be faced with charges of workers’ comp fraud. Even if you think bowling is good exercise for your back injury, it probably wouldn’t play well in court and you could lose your weekly disability checks.

Oftentimes, workers’ comp insurance companies use surveillance reports to suspend workers’ comp checks or deny claims outright.  If your workers’ comp claim is denied or your workers’ comp checks stopped, you need to contact an Affleck & Gordon lawyer to help you fight for your rights.

5 Steps to Increase Your Workers’ Comp Weekly Checks

5 Steps to Increase Your Workers’ Comp Weekly Checks
Increase Your Workers’ Comp Weekly Checks

You’ve had a covered accident at work and you’ve waited the requisite time period to start receiving your weekly check. Lo and behold, the check doesn’t even come close to your take home pay. In fact it’s a lot less.  What do you do now?

Georgia workers’ comp law states that you are entitled to receive 2/3 of an average of 13 weeks of your gross earnings before your accident.  For example, if you had an accident on June 30, 2016 and average gross earnings of $900, 2/3rds would be $600. Wait, don’t be too hasty. You wouldn’t even be entitled to $600 because there also is a maximum rate of $550.00 for that particular date of injury. (A table of maximum comp rates are below.)* Now going back to our topic on how to increase your weekly check if you are not receiving the max rate.

1.    First, you will want to request a copy of the Wage Statement which is on the back of Board form WC-1 First Report of Injury or the old WC-6 Wage Statement that is sometimes still used. Look this statement over carefully and see if the wages used are yours and whether the gross instead of the net was used. Request your payroll history unless you have your pay stubs so you have them to compare to. If these are your gross wages and are accurately recorded, go to the next step.

2.    Your second step will be to determine whether you worked “substantially the whole” of 13 weeks. Now you’re thinking what the dickens does that mean? Does that mean you had to work some hours each of the 13 weeks? Or at least 12 of the 13 weeks? What if you had a slow-down in the plant? Or your job got rained out for 3 weeks? Well, it does get a bit complicated, but let me try to help make sense of the “substantially the whole” phrase.  If you missed 1 week out of the 13 weeks, it would still be substantially the whole of 13. But, if you missed 2 weeks out of the 13, you can bet the bank it’s not substantially the whole, and ask for the wages of similar employees or your full-time wage if there are no similar employees.  Note, if your hours normally vary, this doesn’t count as not “substantially the whole. However, if there were several weeks where your hours were cut and you worked less hours I’d argue you did not work “substantially the whole” of 13 weeks. If your weekly check is still below the maximum go to the third step.

3.    Tips paid by customers should be included in your weekly wage to increase your weekly check.  Even tips not reported to the IRS can be included.  Still haven’t reached the maximum comp rate, move on to the next step.

4.    The fourth step is to check for bonuses.  Of course bonuses during the 13 weeks before the date of accident are considered.  But, wait for this….end-of-year bonuses are considered even though not paid during the 13 weeks preceding the date of accident. Nifty, huh?  Still not there, one final step…

5.    Fifth and final step is to check for any financial benefit or gain paid to you by your employer including food and housing and automobile expenses.  Keep in mind, the fair and reasonable value of the food and housing will be used. And, only where you received a real economic gain on the auto expenses after deducting for actual costs.

We at Affleck & Gordon are available 24/7 to assist you with any questions you may have on these steps to increase your weekly check.

*Table of maximum temporary total disability rates

1.    $575  July 1, 2016 to present

2.    $550 July 1, 2015 to June 30, 2016

3.    $525 July 1, 2013 to June 30, 2015

4.    $500 July 1, 2007 to June 30, 2013