Credit and Debt Blog
A Service of Debtors Unite, Inc.
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LTD Financial Services agreed to a settlement with the Federal Trade Commission to resolve nearly 1,500 complaints of illegally threatening and misleading debtors. This settlement was announced without any acknowledgment of wrongdoing.
And so after this big settlement, you may be surprised that not a dime of it is going to the victims of harassment. Instead, it amounts to penalties owed to the federal government. It is still up to individual victims to sue for civil damages. (more…)
If you have ever settled a debt, you may have received an unwelcome surprise. Anytime you save $600 or more on a debt balance by negotiating a settlement, the debt collector is required to issue a 1099-C form and report the information to the Internal Revenue Service.
So what exactly is a 1099-C form? In short, it is a declaration that the debt collector provided you with income to pay your debt. And now Uncle Sam and possibly your own state revenue department expect you to pay taxes on that income. (more…)
The newest debt collection trend has a dangerous component. Uncollectible debts are being sought by aggressive debt buyers who pressure unsuspecting debtors into paying them off. Because these debts are no longer legally collectible, they can be bought by debt collectors for almost nothing.
Now some creditors are being accused of intentionally failing to update credit records in an attempt to pressure debtors to repay old accounts. Before you pay on that old account, make sure that you understand your rights, especially if the debt was discharged under bankruptcy. (more…)
It is a known fact that most debt collectors routinely violate federal laws when attempting to collect on a delinquent account. Their greatest ally is consumer ignorance. Most people just do not understand their rights.
One such right is listed in the most comprehensive law related to consumer debt collection. This right is what can stop an abusive debt collector in their tracks. Instead of going to court, you can threaten a more feasible option by saying two words. (more…)
If you have ever fallen behind on your credit cards, you have probably received a few courtesy phone calls as a reminder to make your minimum payment. If you have found yourself a month or more behind, then you may have realized that it is time to seek credit counseling.
Once all of your credit card accounts are turned over to debt collectors, you have likely realized that the collection calls are less pleasant. Some debt collectors are downright rude. Would you believe that almost all debt collectors routinely violate federal law? (more…)
