I have been asked by so many victims of debt settlement company to help them find refunds that I have lost count. In a few cases, I have been able to direct them to the trustee responsible for paying partial refunds. Most clients are not that fortunate. (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Archive for the ‘Consumer Protection’ Category
Should I hire a debt settlement company?
(Barbara from New Jersey) I have about $10,000 in credit card debt. I have seen commercials for Morgan Drexen and other debt settlement companies. Is this a good idea? Should I hire a debt settlement company? (more…)
Is Lincoln Drexel Legit?
Several of our visitors have complaints about a debt settlement company called Lincoln Drexel. Who are they and are they legit? (more…)
Credit Solutions Telephone Numbers have been Disconnected
(Question submitted online) I signed up with Credit Solutions a few years ago to settle 2 accounts. I paid off one account and haven’t received anything to say it has been fulfilled. I have been trying to contact Credit Solutions for months with no luck. All of their numbers have been disconnected and the new # on their website doesn’t work. I called the firm where my debt was to confirm I have paid in full and they said they couldn’t give me any information because I signed a Power of Attorney with Credit Solutions. I am trying to settle my 2nd account and I am running into the same problem with this firm and they won’t give me any information because of the POA. I just want to take care of my debt and rebuild my credit. What do I do now? (more…)
Can you Trust a Debt Settlement Lawyer?
The advertisements claim that you can settle your debts for far less than you owe. While that notion may in some ways be true, you might be in for a very bumpy ride if you think that one of these nationally advertised debt settlement companies can actually help you. They can sure seem helpful, until you pay them. (more…)
Western Sky Scam is More than Just Usury
Western Sky Financial has been one of the most prominent and most successful lenders over the past couple of years. Desperate consumers continue to flock to the high-interest lender to obtain loans that they believe will somehow alleviate their financial situation.
Skeptical consumers often ask, “is Western Sky Financial legal?” Of course they are referring to the usurious interest rates charged that often exceed state usury limits where the consumer lives. While the rate itself is often actually illegal, what is really interesting is the illegal steps taken by the lender to obtain a judgment against those who fail to repay the nearly impossible to repay loans. (more…)
I was just late on one credit card, will the universal default clause raise all my rates?
(Mark from California) I was just late on one credit card, will the universal default clause raise all my rates? (more…)
Debt Settlement Companies Use Rent a Lawyer Scheme to Avoid Regulation
Recent legislation bans the long abused practice of debt settlement companies charging huge upfront fees to clients who mostly never received the services promised to them. Instead of complying, many debt settlement companies are exploiting a loophole that allows them to continue cheating customers.
The ban on upfront fees does not apply to lawyers. A law firm who represents a debtor may charge an upfront fee for debt settlement services. Debt settlement companies are exploiting this exception by “partnering” with law firms to get around the advance fee ban. (more…)
I heard that rates were going up, but mine went from 14% to 25%. Why did this happen?
(John from South Carolina) My interest rate just went up on my credit card even though I keep making the minimum payment. I heard that rates were going up, but mine went from 14% to 25%. Why did this happen? (more…)
When a debt is sold can the new company get an additional 7 years to report on my credit report?
(Barbara from South Carolina) I have old accounts that have been transferred to or sold to other lenders. The date of last activity exceeds the 7 year FTC law. Does the new company get an additional 7 years to report on my credit report? If not, what do I do to resolve this? (more…)
