On Thursday May 7, 2009 New York Attorney General Andrew Cuomo issued subpoenas to 14 debt settlement companies and a law firm. Cuomo is part of a multistate effort to regulate debt settlement companies, which Cuomo says are “offering consumers false hope, charging tremendous fees and leaving them in a worse financial situation.” (more…)
Credit and Debt Blog
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Archive for the ‘Consumer Protection’ Category
Ask Ken Your Financial Questions
When you are looking for an answer to a very specific question, it may sometimes be difficult to find exactly what you are looking for. That is because your situation is unique, and most other situations that you read about are just not the same as yours. Now you can ask your questions directly. (more…)
Proposed Limits on Debt Settlement Companies Too Lenient
Debt settlement companies have thrived on rising defaults on all sorts of consumer debt, especially credit cards and unsecured personal loans. Their profits have been through the roof even though the vast majority of their clients never successfully settle their debts. Newly proposed legislative limits still allow sky-high fees and almost no accountability. (more…)
Debt Settlement Companies Booming
Debt settlement has become a big business as the number of credit card defaults continues to increase. Debt settlement companies prey on desperate consumers that are tired of harrassing phone calls and threatening letters. What debtors don’t realize is that they end up creating a whole new set of problems when they sign up for debt settlement instead of getting help from a reputable credit counseling organization. (more…)
Debt Settlement Scams Difficult to Avoid
The numbers of rogue debt settlement companies are growing, and it is becoming easy to see why. With inadequate regulation of debt settlement companies and the vulnerability of indebted customers, debt settlement companies are springing up just about everywhere. (more…)
Fair Debt Collection Practices Act (FDCPA)
This is a federal act enacted in 1977 with the goal of preventing abuses by third-party debt collection agencies. These abuses were believed to be one of the main causes of the increase in bankruptcies filed at the time. (more…)
Debt Settlement Claims Overstated
Debt settlement companies often state that they can settle your debts for pennies on the dollar or even up to less than half of what you owe. They also tend to overstate the actual amount of work that they do on your behalf. (more…)
Halts on Oil Speculation Could Cause Gasoline Prices to Plummet
Calls for members of Congress to limit oil speculation may cause the bubble to burst in oil markets. The reason is that it could shut out buyers of oil commodities that do not actually intend to receive delivery of oil. If Congress passes such a limit, it could cause price drops of $1 or more per gallon of gasoline. (more…)
Hundreds Arrested in Mortgage Fraud Probe
Hundreds of mortgage professionals have been arrested within the past week, with most arrests occurring Wednesday, June 18. According to the FBI, there may be as many as 1,400 additional investigations, which could lead to many more arrests for fraud. (more…)
LendingTree Consumer Files Hacked
Customers of LendingTree, a popular online mortgage lead service, have been informed that their personal information on file has been compromised. Customers use the LendingTree service to have several different banks compete and see who offers the best terms on a mortgage. Consumers provide personal information including their social security number, address, birthday, income and employment information to LendingTree. This information is normally passed on to authorized banks who use the information to determine whether the consumers qualify for a mortgate and, if so, under what terms. (more…)
