The new Credit Card Act may not be enough to save consumers from some scandalous practices. At least, that’s what the NY Times is saying. We talk a lot about the Credit Card Act here, and for the most part I feel it’s a great thing for consumers. It’s supposed to lead to more transparency in the industry, which is much needed. But apparently it doesn’t do enough.
Research by the credit scoring company FICO shows that in the 12 months ended in April, 58 million people had the amount of available credit on their cards reduced. (NY Times)
Everyone in the industry new that things were going to change dramatically before the Credit Card Act went into effect. Rates were going to be raised and limits were going to be dropped. Fortunately for the consumer, rates cannot be raised without warning anymore, but credit limits can be dropped at any time and for any reason.
If a credit card company lowers your rates, they are lowering your overall available credit which, in turn, can lower your credit score. They will lower your available credit for any reason, or no reason, and you probably don’t have any retaliation other than to close your account, which also might affect your credit score.
So, why didn’t the White House think of adding limitations on the act of lowering your available credit? According to the NY Times, the new Credit Card Act is really just a revised version of the old Truth in Lending Act of 1968. In the late 60’s, credit card companies did not just randomly lower your available credit, so there was no mention of it in the bill. In the last years, when the rewriting of the old bill was taking place, this still wasn’t an issue.
Unfortunately, now it is a big issue. Out of the 58 million consumers who had they’re credit limits reduced, many of them had better than average credit scores and kept a low balance on the credit card. Many who played by the rules were penalized, while at the same time the economy was failing and they were losing their jobs and homes. It’s been a rough year for consumers.
For more information on credit card debt settlement, visit http://ping.fm/2Yhsm.
Monday, August 31, 2009
Thursday, August 27, 2009
Cash For Appliances
Cash for Appliances is expected to hit the market hard, but in a good way, just as the Cash for Clunkers program did. Now that the clunkers program is over, 690,000 American’s are driving around in brand new cars thanks to the $4,500 voucher. Under the Economic Stimulus Package, $300 million is going to each state as well as incentives to boost the Cash for Appliances program.
A few posts ago we talked about this program, and said that we’d keep you updated. Well, here are some updates. The Cash for Appliances program has spurred states to start programs of their own where your city will come and pick up old, but working, appliances and offer you another small rebate. All together, you could be looking at getting $250 back in rebates. When you consider the fact that you will save even more than that each year in your power bill, how can you say no to getting some new energy efficient appliances? They will pay for themselves within two years.
On top of the new Cash for Appliances program, many states think that this will boost revenue and create some new jobs for appliance pickups.
In Michigan, where 2008 energy legislation required utilities to cut electricity production by 5% a year, the program is exceeding expectations.
DTE Energy, parent company of Detroit Edison which serves 2.2 million electric customers in Detroit and its suburbs, collected more than 3,300 appliances since starting the recycling program at the end of June. It offers $50 per refrigerator or freezer and $20 for old window air-conditioner units.
"Today's appliances consume three times less than old appliances," says Steven Kurmas, president of Detroit Edison. "We're hoping to get rid of 30,000 by 2011." (USA Today)
For all the info you need on debt, visit http://www.thedebtsettlementprogram.com.
A few posts ago we talked about this program, and said that we’d keep you updated. Well, here are some updates. The Cash for Appliances program has spurred states to start programs of their own where your city will come and pick up old, but working, appliances and offer you another small rebate. All together, you could be looking at getting $250 back in rebates. When you consider the fact that you will save even more than that each year in your power bill, how can you say no to getting some new energy efficient appliances? They will pay for themselves within two years.
On top of the new Cash for Appliances program, many states think that this will boost revenue and create some new jobs for appliance pickups.
In Michigan, where 2008 energy legislation required utilities to cut electricity production by 5% a year, the program is exceeding expectations.
DTE Energy, parent company of Detroit Edison which serves 2.2 million electric customers in Detroit and its suburbs, collected more than 3,300 appliances since starting the recycling program at the end of June. It offers $50 per refrigerator or freezer and $20 for old window air-conditioner units.
"Today's appliances consume three times less than old appliances," says Steven Kurmas, president of Detroit Edison. "We're hoping to get rid of 30,000 by 2011." (USA Today)
For all the info you need on debt, visit http://www.thedebtsettlementprogram.com.
Tuesday, August 25, 2009
Teaching Your Kids About Credit Card Debt
Teaching kids about debt can be a difficult thing. It’s confusing to us adults. But, if you don’t teach your kids about debt who is going to? Back when I was in school we didn’t have any financial training classes, not credit card education or debt settlement clubs. I knew absolutely nothing about credit and debt, which is one of the reasons I got myself in a bunch of debt at an early age. And it’s the same reason my younger brother has followed the same path.
Teaching your kids about debt and credit cards is extremely important, and now, during these rough economic times, is the perfect backdrop to explain to your kids what debt is all about. According to Sallie May, the average credit card debt in 2008 for a college student was just over $4,000. If you don’t want your child to end up financially ruined by the time they graduate college, like most of us, start teaching them about debt now.
There are many ways to teach your child about debt and savings, and the simplest way is to give them a piggy bank and allowance. By teaching your child to save money, and the importance of saving money, you’ll be setting them on the right path. And, thanks to modern technology, there are some very cool piggy banks out there. Look around and get one that help kids count their savings and see where their money is going.
Giving your child an allowance allows them to understand the importance of working for their money and not getting money for free. By working for their money, and receiving it at the end of the week, much like a paycheck, your child learns the importance of setting a budget for what they might want, and for working extra for money they might be short of. This is a great way to get your child in the habit of budgeting and working for the things they need.
As they grow older, have a joint credit card that you allow them to use as you supervise. Or, have a prepaid or secured credit card where your child is only allowed to spend a certain amount. This way they will not go over their budget and will learn the importance of keeping track of their finances. Try to find a secured credit card where you can put a low balance on it, doesn’t have large yearly or monthly fees, and has a low interest rate.
Pick out a credit card together. This is a great way to teach your child about interest rates, which I have to admit I don’t even fully understand at times, and the extra costs of having a credit card. By choosing a card together you’ll get to spend time together, and it will be a wonderful learning experience probably for the both of you.
For any information about debt settlement, visit http://ping.fm/mH14z.
Teaching your kids about debt and credit cards is extremely important, and now, during these rough economic times, is the perfect backdrop to explain to your kids what debt is all about. According to Sallie May, the average credit card debt in 2008 for a college student was just over $4,000. If you don’t want your child to end up financially ruined by the time they graduate college, like most of us, start teaching them about debt now.
There are many ways to teach your child about debt and savings, and the simplest way is to give them a piggy bank and allowance. By teaching your child to save money, and the importance of saving money, you’ll be setting them on the right path. And, thanks to modern technology, there are some very cool piggy banks out there. Look around and get one that help kids count their savings and see where their money is going.
Giving your child an allowance allows them to understand the importance of working for their money and not getting money for free. By working for their money, and receiving it at the end of the week, much like a paycheck, your child learns the importance of setting a budget for what they might want, and for working extra for money they might be short of. This is a great way to get your child in the habit of budgeting and working for the things they need.
As they grow older, have a joint credit card that you allow them to use as you supervise. Or, have a prepaid or secured credit card where your child is only allowed to spend a certain amount. This way they will not go over their budget and will learn the importance of keeping track of their finances. Try to find a secured credit card where you can put a low balance on it, doesn’t have large yearly or monthly fees, and has a low interest rate.
Pick out a credit card together. This is a great way to teach your child about interest rates, which I have to admit I don’t even fully understand at times, and the extra costs of having a credit card. By choosing a card together you’ll get to spend time together, and it will be a wonderful learning experience probably for the both of you.
For any information about debt settlement, visit http://ping.fm/mH14z.
Monday, August 24, 2009
Cash for Fridges
Cash for Appliances is the new Cash for Clunkers, but you don’t have to trade in your old washer and dryer. This time around, the stimulus package is offering consumers a rebate of between $50 and $200 for purchasing an appliance that Energy Star rated. The new program is to begin in the late fall, sometime around end of October or beginning of November, and is supposed to promote energy efficient purchases. With home sales beginning to turn around, now might be the perfect time for a program like this to work.
Of the $300 million assigned to this program, experts believe the bulk of it will be gone by the end of November.
“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Energy Secretary Steven Chu said in a statement announcing the plan. (Business Week)
According to the article, only 55% of the appliances purchased in 2008 were Energy Star rated, which actually surprises me because the amount of money that you save on your power bill every month more than makes up for the price of the appliance. If people just understood that energy efficient appliances pay for themselves, and then some, in no time at all more people would buy Energy Star rated appliances. Perhaps this Cash for Appliances program will push people in the right direction.
Many financial experts are truly hoping that this program will push consumer into buying and will add an extra boost to the economy. Appliance sales companies like Whirlpool and GE are struggling more now than ever. Last year appliance shipments were down 10%, and in 2009 they are already down 15%.
We’ll keep you updated on when the Cash for Appliances program actually begins, and how you can cash in.
For information on how to get out of debt during these rough economic times, check out http://www.thedebtsettlementprogram.com.
Of the $300 million assigned to this program, experts believe the bulk of it will be gone by the end of November.
“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Energy Secretary Steven Chu said in a statement announcing the plan. (Business Week)
According to the article, only 55% of the appliances purchased in 2008 were Energy Star rated, which actually surprises me because the amount of money that you save on your power bill every month more than makes up for the price of the appliance. If people just understood that energy efficient appliances pay for themselves, and then some, in no time at all more people would buy Energy Star rated appliances. Perhaps this Cash for Appliances program will push people in the right direction.
Many financial experts are truly hoping that this program will push consumer into buying and will add an extra boost to the economy. Appliance sales companies like Whirlpool and GE are struggling more now than ever. Last year appliance shipments were down 10%, and in 2009 they are already down 15%.
We’ll keep you updated on when the Cash for Appliances program actually begins, and how you can cash in.
For information on how to get out of debt during these rough economic times, check out http://www.thedebtsettlementprogram.com.
Thursday, August 20, 2009
Credit Card Hacker Of The Century
The largest and greatest credit card scheme of all time has been shut down, and Albert Gonzalez, a 28-year-old from Florida, is probably going to be banned from computers for the rest of his life. A man who has been known as the “soupnazi” in internet circles, and who once worked as an informant for the U.S. Secret Service, made history with stealing account numbers from over 170 million credit cards!
Gonzalez’s story is an interesting one, winding from a lonely childhood where his computer was his best friend, to a “secret” job at a firm right out of high school, to a stint with the U.S. Secret Service. In 2003, Gonzalez was busted for a smalltime hacking job. The U.S. Secret Service saw some extreme talent in their suspect, and offered him a plea deal that included becoming an informant.
Gonzalez’ attorney claims that the government used him as a “machine” in order to find fellow hackers and bring them down. The attorney believes that Gonzalez’s computer addiction should have been treated by a therapist.
Now, this is where the story gets very interesting, and starts to remind me of the movie Hackers. It was sort-of a cult hit back in the day about a young man and his gang who have an affinity with computers and can basically hack into anything, anywhere, doing whatever they want. That was the life Gonzalez led from 2005 until he was busted.
Gonzalez reportedly threw himself birthday parties ranging from $75,000 dollars, used a cash counting machine to literally count the massive amounts of cash he had lying around, and lived the life of a bachelor in luxury by purchasing a beautiful condo.
Before 2008, authorities believed a scam in which he hacked 40 million credit cards was history making, until they learned the truth of his 170 million credit card scheme. Currently, Albert Gonzalez it sitting in prison where he only gets to use a computer when his lawyer comes to visit, and only to update paperwork and evidence for trial.
Gonzalez’s story is an interesting one, winding from a lonely childhood where his computer was his best friend, to a “secret” job at a firm right out of high school, to a stint with the U.S. Secret Service. In 2003, Gonzalez was busted for a smalltime hacking job. The U.S. Secret Service saw some extreme talent in their suspect, and offered him a plea deal that included becoming an informant.
Gonzalez’ attorney claims that the government used him as a “machine” in order to find fellow hackers and bring them down. The attorney believes that Gonzalez’s computer addiction should have been treated by a therapist.
Now, this is where the story gets very interesting, and starts to remind me of the movie Hackers. It was sort-of a cult hit back in the day about a young man and his gang who have an affinity with computers and can basically hack into anything, anywhere, doing whatever they want. That was the life Gonzalez led from 2005 until he was busted.
Gonzalez reportedly threw himself birthday parties ranging from $75,000 dollars, used a cash counting machine to literally count the massive amounts of cash he had lying around, and lived the life of a bachelor in luxury by purchasing a beautiful condo.
Before 2008, authorities believed a scam in which he hacked 40 million credit cards was history making, until they learned the truth of his 170 million credit card scheme. Currently, Albert Gonzalez it sitting in prison where he only gets to use a computer when his lawyer comes to visit, and only to update paperwork and evidence for trial.
For information on credit card settlements, visit http://ping.fm/M88dq.
Credit Card Act 2009 Kicks In
Finally, some relief will be heading your way. If you’re in debt and trying to figure out which path to take, the federal government has attempted to relieve your stress. A few months back, President Obama singed the Credit Card Act, putting into legislation a strict attempt to alleviate the pressure that credit card companies place on consumers.
Starting Thursday, credit card companies must send out statements a full 21 days before payment is due. They must also send out notices 45 days in advance of rate increases, and give options for consumers who can’t afford the new rate hikes. In addition, credit card companies will no longer be able to raise rates or penalize consumers after late payments or exceeds a credit limit without giving notice.
An extremely positive new page in the Credit Card Act 2009 requires credit card companies to give consumers the option to remain at their current interest rate and slowly pay-off their balance when a rate hike is on the way. You may have noticed that during the past few weeks your credit card company has raised you rates a bit. This is because they’ve all been preparing for this day and for the Credit Card Act 2009 to kick in, because now you have the right to refuse to pay the new rates and choose to pay-off your balance with your old rate.
However, until February 2010 credit card companies can raise rates to whatever they like. There is not yet a cap on interest rates, which means either you pay-off your credit card at the old rate, and take option A, or you can tough it out and pay the new rates, option B. In February of next year, the part of the Credit Card Act 2009 that requires interest rate caps will kick in, limiting what credit card companies can charge you each month in interest.
The loophole to this legislation is that many credit card companies have switched their fixed rate customers to variable rate ones in order to go around the Credit Card Act. As of today, any fixed rate customers must get the rate hike warning, however, if you hold a variable rate card they are not required to warn you about hikes.
Credit card companies are doing whatever they can to make this process hurt everyone. They have already begun to lower credit limits, tighten approval requirements, and toss out certain card holder privileges and perks. They are also claiming that available credit will decrease, and the cost of borrowing will increase, since they will now have to be more careful about whom they approve.
Word to the wise; check your credit card statements closely. If you haven’t in the past month, you might see some new things on there. Give you credit card company a call and discuss the new changes with them. And if you’re in debt and looking to get out, check out http://ping.fm/QQqhK.
Starting Thursday, credit card companies must send out statements a full 21 days before payment is due. They must also send out notices 45 days in advance of rate increases, and give options for consumers who can’t afford the new rate hikes. In addition, credit card companies will no longer be able to raise rates or penalize consumers after late payments or exceeds a credit limit without giving notice.
An extremely positive new page in the Credit Card Act 2009 requires credit card companies to give consumers the option to remain at their current interest rate and slowly pay-off their balance when a rate hike is on the way. You may have noticed that during the past few weeks your credit card company has raised you rates a bit. This is because they’ve all been preparing for this day and for the Credit Card Act 2009 to kick in, because now you have the right to refuse to pay the new rates and choose to pay-off your balance with your old rate.
However, until February 2010 credit card companies can raise rates to whatever they like. There is not yet a cap on interest rates, which means either you pay-off your credit card at the old rate, and take option A, or you can tough it out and pay the new rates, option B. In February of next year, the part of the Credit Card Act 2009 that requires interest rate caps will kick in, limiting what credit card companies can charge you each month in interest.
The loophole to this legislation is that many credit card companies have switched their fixed rate customers to variable rate ones in order to go around the Credit Card Act. As of today, any fixed rate customers must get the rate hike warning, however, if you hold a variable rate card they are not required to warn you about hikes.
Credit card companies are doing whatever they can to make this process hurt everyone. They have already begun to lower credit limits, tighten approval requirements, and toss out certain card holder privileges and perks. They are also claiming that available credit will decrease, and the cost of borrowing will increase, since they will now have to be more careful about whom they approve.
Word to the wise; check your credit card statements closely. If you haven’t in the past month, you might see some new things on there. Give you credit card company a call and discuss the new changes with them. And if you’re in debt and looking to get out, check out http://ping.fm/QQqhK.
Monday, August 17, 2009
Grandparents and Credit Card Debt
Are your grandparents using their credit cards more than usual? According to a new study released by Demos details the chilling effects this economy has had on our senior citizens. While the college grads are struggling to find their first job in the real world, and parents are struggling to keep food on the table, our grandparents are using their credit cards more than any of us for the essentials.
Low- and middle-income consumers 65 and older carried $10,235 in average card debt last year, up 26% from 2005. Card debt for all borrowers surveyed rose 3% during that time, to $9,827. (USA Today)
And, to heat up this conversation, this health care crisis that we find ourselves in is to blame for most of the credit damage done to seniors. Our grandparents are using their credit cards for groceries, gas, and ridiculous medical bills that Medicare can’t cover.
While the cost of living is rising dramatically, Medicare and Social Security just isn’t able to keep up, and it’s our grandparents that are suffering. From 1997 to 2007, our grandparents were falling deeper into debt than any other demographic in the country, and that was before the recession hit. Today they are deep in debt and deep in trouble.
"You see a great increase in credit card debt for people right near retirement age," says Craig Copeland, a senior research associate at EBRI. "They're probably still working, but they're also the most likely to become disabled," which could force them to rely on credit cards. (USA Today)
There are two huge problems with this situation. First, who is going to be left to pay off this insurmountable debt when the grandparents are gone? Probably their remaining loved ones, which will only put more financial strain on the family.
Second, interest rates are at an all time high for credit cards right now, averaging near to 20%! These rates will continue to rise until the new legislation kicks in that gives debt holders more options when credit card companies want to raise their rates.
For more information on credit card debt, visit http://www.yourdebtnegotiator.com.
Low- and middle-income consumers 65 and older carried $10,235 in average card debt last year, up 26% from 2005. Card debt for all borrowers surveyed rose 3% during that time, to $9,827. (USA Today)
And, to heat up this conversation, this health care crisis that we find ourselves in is to blame for most of the credit damage done to seniors. Our grandparents are using their credit cards for groceries, gas, and ridiculous medical bills that Medicare can’t cover.
While the cost of living is rising dramatically, Medicare and Social Security just isn’t able to keep up, and it’s our grandparents that are suffering. From 1997 to 2007, our grandparents were falling deeper into debt than any other demographic in the country, and that was before the recession hit. Today they are deep in debt and deep in trouble.
"You see a great increase in credit card debt for people right near retirement age," says Craig Copeland, a senior research associate at EBRI. "They're probably still working, but they're also the most likely to become disabled," which could force them to rely on credit cards. (USA Today)
There are two huge problems with this situation. First, who is going to be left to pay off this insurmountable debt when the grandparents are gone? Probably their remaining loved ones, which will only put more financial strain on the family.
Second, interest rates are at an all time high for credit cards right now, averaging near to 20%! These rates will continue to rise until the new legislation kicks in that gives debt holders more options when credit card companies want to raise their rates.
For more information on credit card debt, visit http://www.yourdebtnegotiator.com.
Thursday, August 13, 2009
Wednesday, August 12, 2009
Monday, August 10, 2009
Friday, August 7, 2009
Allegro Gets Busted
Allegro Law Gets Busted!!
We’ve been talking a lot lately about fraudulent debt settlement companies and how the Better Business Bureau and the Federal Trade Commission are cracking down on “phony” credit debt collectors and debt settlement programs. Well, here’s another story for you that is tearing up the internet.
According to one of our favorite sites, GetOutOfDebt.org, The Attorney General’s Office and the Alabama Securities Commission are suing a Prattville attorney and the companies he is operating in what is alleged to be one of the largest debt settlement schemes in the nation involving approximately 15,000 customers and millions of dollars nationwide.
According to the complaint, Allegro and Nelms have solicited and obtained clients from all 50 states, many of whom made their selection believing they would be represented by a law firm. However, because Nelms is not licensed to practice law in any state other than Alabama, these consumers were deceived. Furthermore, Alabama consumers who believed they were hiring a law firm to represent them were also deceived, because Nelms and Allegro were actually serving merely as a conduit to refer cases that were handled by a third party, Americorp, which is not a law firm. In addition to these deceptive practices, Nelms and Allegro were not licensed by the Securities Commission, as required to conduct debt payment services in Alabama.
The complaint alleges that defendants have violated the Deceptive Trade Practices Act and the Sale of Checks Act. The Alabama Deceptive Trade Practices Act is designed to protect consumers by prohibiting business from committing a variety of deceptive practices including engaging in any “unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce.” The complaint alleges that the defendants violated the Deceptive Trade Practices Act as a result of various deceptive business practices and various false, misleading, and deceptive representations made to consumers. Under the Sale of Checks Act, any person engaging in a business that receives money as agent for obligors for the purpose of paying such obligors’ bills, invoices, or accounts must obtain a license from the Commission prior to conducting business in Alabama. The complaint alleges that defendants have breached their statutory duty to obtain a license pursuant to the Sale of Checks Act prior to engaging in the debt payment services business from their office.
That’s a lot of legal lingo, but basically what Allegro did, of the many things that Allegro did, was to advertise themselves as debt lawyers around the country, when in fact they only had the right to advertise their credentials in Alabama. They also charged outrageous fees and continued to charge these fees throughout the “debt settlement” process while clients saw no return and no settlement. They weren’t saving to pay off their unsecured credit debt, and they weren’t contributing to anything constructive to get them out of debt. Allegro was simply charging them fees, and keeping the money as profit.
Currently, Allegro Law is one of the top ‘debt settlement’ searches on Google, probably because there are thousands of Allegro victims trying to figure out how to get their money back.
Finding reliable and accredited debt settlement companies is a difficult task, especially in such a fraudulent ridden industry. But if you know what to look for, and the questions to ask, you won’t be stuck in a situation like the clients of Allegro. The most important step that you must take when thinking about debt settlement is do your research. If you can look the company’s history and track record up, then you should be able to determine if they’re trust worthy or not.
A huge indicator of whether the company is fraudulent or not is to find out of the company is registered with USOBA (United States Organizations for Bankruptcy Alternatives), a highly trusted organization that only registers reliable debt settlement companies, or Dun & Bradstreet, another organization that keeps track of many business.
Finding the right debt settlement company might take a little hard work, but when you are living financially free, it’ll be worth it.
For more information on how to find the best debt settlement programs, visit http://www.thedebtsettlementprogram.com.
We’ve been talking a lot lately about fraudulent debt settlement companies and how the Better Business Bureau and the Federal Trade Commission are cracking down on “phony” credit debt collectors and debt settlement programs. Well, here’s another story for you that is tearing up the internet.
According to one of our favorite sites, GetOutOfDebt.org, The Attorney General’s Office and the Alabama Securities Commission are suing a Prattville attorney and the companies he is operating in what is alleged to be one of the largest debt settlement schemes in the nation involving approximately 15,000 customers and millions of dollars nationwide.
According to the complaint, Allegro and Nelms have solicited and obtained clients from all 50 states, many of whom made their selection believing they would be represented by a law firm. However, because Nelms is not licensed to practice law in any state other than Alabama, these consumers were deceived. Furthermore, Alabama consumers who believed they were hiring a law firm to represent them were also deceived, because Nelms and Allegro were actually serving merely as a conduit to refer cases that were handled by a third party, Americorp, which is not a law firm. In addition to these deceptive practices, Nelms and Allegro were not licensed by the Securities Commission, as required to conduct debt payment services in Alabama.
The complaint alleges that defendants have violated the Deceptive Trade Practices Act and the Sale of Checks Act. The Alabama Deceptive Trade Practices Act is designed to protect consumers by prohibiting business from committing a variety of deceptive practices including engaging in any “unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce.” The complaint alleges that the defendants violated the Deceptive Trade Practices Act as a result of various deceptive business practices and various false, misleading, and deceptive representations made to consumers. Under the Sale of Checks Act, any person engaging in a business that receives money as agent for obligors for the purpose of paying such obligors’ bills, invoices, or accounts must obtain a license from the Commission prior to conducting business in Alabama. The complaint alleges that defendants have breached their statutory duty to obtain a license pursuant to the Sale of Checks Act prior to engaging in the debt payment services business from their office.
That’s a lot of legal lingo, but basically what Allegro did, of the many things that Allegro did, was to advertise themselves as debt lawyers around the country, when in fact they only had the right to advertise their credentials in Alabama. They also charged outrageous fees and continued to charge these fees throughout the “debt settlement” process while clients saw no return and no settlement. They weren’t saving to pay off their unsecured credit debt, and they weren’t contributing to anything constructive to get them out of debt. Allegro was simply charging them fees, and keeping the money as profit.
Currently, Allegro Law is one of the top ‘debt settlement’ searches on Google, probably because there are thousands of Allegro victims trying to figure out how to get their money back.
Finding reliable and accredited debt settlement companies is a difficult task, especially in such a fraudulent ridden industry. But if you know what to look for, and the questions to ask, you won’t be stuck in a situation like the clients of Allegro. The most important step that you must take when thinking about debt settlement is do your research. If you can look the company’s history and track record up, then you should be able to determine if they’re trust worthy or not.
A huge indicator of whether the company is fraudulent or not is to find out of the company is registered with USOBA (United States Organizations for Bankruptcy Alternatives), a highly trusted organization that only registers reliable debt settlement companies, or Dun & Bradstreet, another organization that keeps track of many business.
Finding the right debt settlement company might take a little hard work, but when you are living financially free, it’ll be worth it.
For more information on how to find the best debt settlement programs, visit http://www.thedebtsettlementprogram.com.
Thursday, August 6, 2009
BBB Warns of Fake Debt Collectors
Protect yourself from phony debt collectors. The Better Business Bureau has sent out a massive warning to Chicago and Northern Illinois, letting people know about the recent rise is fake debt collection attempts. Apparently some fraudulent companies have gotten ahold of some very personal consumer information and is using that information against them.
Phony debt collectors are aggressively harassing consumers who have used a payday advance service in the past. The debt collectors have obtained vital information such as Social Security Numbers, maiden names, addresses, and phone numbers and use these items to claim their intentions.
The phony debt collector will call you, tell you what you owe, when you must pay it and what kind of legal consequences await you should you chose not to pay. They seem legit in every aspect, and if you’re stuck on the phone with them, they will not take no for an answer. This is when you should start to get suspicious.
Knowing what to ask and what the answers should be is a great defense to have when dealing with debt collectors, especially when so many of them are phony. You should instantly be suspicious the moment a debt collector calls you, especially if you live in the affected areas and have used a payday advance service in the past.
According to the Chicago Sun Times, if you are suspicious of a debt collection phone call, do the following:
• • Ask the debt collector to provide official documentation in writing.
• • Not provide or confirm bank account or credit card numbers or other personal information over the phone until the legitimacy of the call is confirmed.
• • File a complaint with the BBB and the Federal Trade Commission if they suspect they're being scammed or the caller is abusive.
For more information on phony debt collectors and debt negotiation visit http://www.yourdebtnegotiator.com.
Phony debt collectors are aggressively harassing consumers who have used a payday advance service in the past. The debt collectors have obtained vital information such as Social Security Numbers, maiden names, addresses, and phone numbers and use these items to claim their intentions.
The phony debt collector will call you, tell you what you owe, when you must pay it and what kind of legal consequences await you should you chose not to pay. They seem legit in every aspect, and if you’re stuck on the phone with them, they will not take no for an answer. This is when you should start to get suspicious.
Knowing what to ask and what the answers should be is a great defense to have when dealing with debt collectors, especially when so many of them are phony. You should instantly be suspicious the moment a debt collector calls you, especially if you live in the affected areas and have used a payday advance service in the past.
According to the Chicago Sun Times, if you are suspicious of a debt collection phone call, do the following:
• • Ask the debt collector to provide official documentation in writing.
• • Not provide or confirm bank account or credit card numbers or other personal information over the phone until the legitimacy of the call is confirmed.
• • File a complaint with the BBB and the Federal Trade Commission if they suspect they're being scammed or the caller is abusive.
For more information on phony debt collectors and debt negotiation visit http://www.yourdebtnegotiator.com.
Tuesday, August 4, 2009
The FTC Is Getting Serious About Fraudulent Debt Negotiation Companies
A new set of regulations is about to hit the fan, and credit debt negotiation companies are starting to get nervous. The Federal Trade Commission is looking into legislation to keep credit debt negotiation companies in line.
Many debt negotiation companies are extremely nervous about the new proposed regulations, fearing that it will hurt their businesses and limit their negotiation services.
''Our goal is to try to get people out of debt, but in a sense this would make us a creditor as well,'' said Wesley Young, the legislative director for The Association of Settlement Companies, a trade group for the industry. He noted debt settlement can take two or three years, leaving companies providing lengthy services without taking in any revenue, and possibly then being left holding a bill if the consumer doesn't pay.
A case involving numerous creditors and substantial debt could require numerous phone calls for settlements to be arranged, Young said. ''We think this will hurt the service we provide to the consumer and they'll be less successful in the programs.''
The proposed regulations would require debt negotiation companies to be completely transparent, sharing with clients the estimated time it would take to reach a settlement, the affects on their credit score, and the fact that a settlement might never be reached. (Check, check, and check). The debt negotiation company would also have to make clients aware of the fact that creditors will still call and will still harass the consumer. (Check).
The proposed regulations would also prohibit debt negotiation companies from charging any fees before services have been performed (check), and would not allow them to make unreasonable debt settlement estimates just to obtain clients (check).
These seem like realistic guidelines for any respectable and reliable debt negotiation company to follow, and a few of them currently are already adhering to similar guidelines, but many in the industry foresee serious challenges.
The intent of the rule may be well meaning, said Gerri Detweiler, a credit adviser for Credit.com and an expert on debt collection. But she is concerned that the rules might be ''so overreaching that nobody who provides a legitimate service would get into that business,” according to the New York Times.
The new debt negotiation regulations were initially spurred by the amount of complaints filed against companies charging upfront fees for services not yet complete. According to the Consumer Federation, who did the most recent study on consumer complaints, upfront fees were the greatest debt settlement complaint.
Many companies, like The Debt Settlement Program and Your Debt Negotiator, already offer programs that charge no upfront fees. Unlike most debt negotiation services, these companies are prepared for the changing industry and have stepped up their efforts to be ahead of the game.
Many debt negotiation companies are extremely nervous about the new proposed regulations, fearing that it will hurt their businesses and limit their negotiation services.
''Our goal is to try to get people out of debt, but in a sense this would make us a creditor as well,'' said Wesley Young, the legislative director for The Association of Settlement Companies, a trade group for the industry. He noted debt settlement can take two or three years, leaving companies providing lengthy services without taking in any revenue, and possibly then being left holding a bill if the consumer doesn't pay.
A case involving numerous creditors and substantial debt could require numerous phone calls for settlements to be arranged, Young said. ''We think this will hurt the service we provide to the consumer and they'll be less successful in the programs.''
The proposed regulations would require debt negotiation companies to be completely transparent, sharing with clients the estimated time it would take to reach a settlement, the affects on their credit score, and the fact that a settlement might never be reached. (Check, check, and check). The debt negotiation company would also have to make clients aware of the fact that creditors will still call and will still harass the consumer. (Check).
The proposed regulations would also prohibit debt negotiation companies from charging any fees before services have been performed (check), and would not allow them to make unreasonable debt settlement estimates just to obtain clients (check).
These seem like realistic guidelines for any respectable and reliable debt negotiation company to follow, and a few of them currently are already adhering to similar guidelines, but many in the industry foresee serious challenges.
The intent of the rule may be well meaning, said Gerri Detweiler, a credit adviser for Credit.com and an expert on debt collection. But she is concerned that the rules might be ''so overreaching that nobody who provides a legitimate service would get into that business,” according to the New York Times.
The new debt negotiation regulations were initially spurred by the amount of complaints filed against companies charging upfront fees for services not yet complete. According to the Consumer Federation, who did the most recent study on consumer complaints, upfront fees were the greatest debt settlement complaint.
Many companies, like The Debt Settlement Program and Your Debt Negotiator, already offer programs that charge no upfront fees. Unlike most debt negotiation services, these companies are prepared for the changing industry and have stepped up their efforts to be ahead of the game.
Monday, August 3, 2009
Consumer Complaints On The Rise
While the recession is technically over, or coming to an end, consumers are doing whatever they can to get every penny they are owed. Not only are people finally understanding the value of money, they are fighting to keep creditors off their backs. Consumer reports has found that complaints aimed towards debt collections has risen dramatically.
According to the NYTimes, consumer complaints is rising while the funds for the customer service staff that deals with all of those calls and complaints is falling. Staff cuts have led to the loss of the investigative tools used to keep customers happy and solve complaints.
The cuts led to staff reductions, program eliminations, fewer consumer education materials being produced and distributed and loss of investigative tools and outside experts. Agencies said budget and staffing issues remain their biggest challenge.—NYTimes
Complaints about home mortgage companies, foreclosure scams, and debt collection services are at the top of the list of consumer complaints. Harassment from debt collectors is number three on the list. It is first on the list of the type of complaint, mostly extreme harassment. One report tells of a store owner harassing the young child of a debt holder, even telling the child his father would be arrested if he didn’t pay his debt.
Consumers are taking a stand against harassing creditors now more than ever. If you are feeling harassed by creditors and are struggling to get out of debt and stay out of debt, give us a visit at http://www.thedebtsettlementprogram.com. We are literally breaking records with our new program, The Simple Plan. It’s a get out of debt program that charges absolutely no upfront fees!
After you report your creditor and take a stand against harassing collections agencies, give us a call and settle your debt!
According to the NYTimes, consumer complaints is rising while the funds for the customer service staff that deals with all of those calls and complaints is falling. Staff cuts have led to the loss of the investigative tools used to keep customers happy and solve complaints.
The cuts led to staff reductions, program eliminations, fewer consumer education materials being produced and distributed and loss of investigative tools and outside experts. Agencies said budget and staffing issues remain their biggest challenge.—NYTimes
Complaints about home mortgage companies, foreclosure scams, and debt collection services are at the top of the list of consumer complaints. Harassment from debt collectors is number three on the list. It is first on the list of the type of complaint, mostly extreme harassment. One report tells of a store owner harassing the young child of a debt holder, even telling the child his father would be arrested if he didn’t pay his debt.
Consumers are taking a stand against harassing creditors now more than ever. If you are feeling harassed by creditors and are struggling to get out of debt and stay out of debt, give us a visit at http://www.thedebtsettlementprogram.com. We are literally breaking records with our new program, The Simple Plan. It’s a get out of debt program that charges absolutely no upfront fees!
After you report your creditor and take a stand against harassing collections agencies, give us a call and settle your debt!
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