Debt settlement sure sounds good when you are getting collection calls. Imagine, you can make much smaller payments to a debt settlement company and they will help you pay cents on the dollar and avoid judgments. This is the pitch, but if you fall for it, you will really feel the sting! (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Archive for the ‘Eliminate Debt’ Category
Consumer Bankruptcies Down But Rising
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was implemented to reduce consumer bankruptcy filings. Apparently, it worked. (more…)
Stimulus Payments Trigger Debt Settlements
The economic stimulus payments received by households in 2008 is intended to increase consumer spending. It was designed to soften the recessionary pressures caused by the credit crunch.
Many consumers, however are using it to catch up on late bills. Debt collectors are finding that many consumers are receiving substantial stimulus payments, which could be used as a lump sum payment to settle an old debt. (more…)
Ellis Crosby Loses $1.3 Million Judgment
On April 7, 2008 Florida Attorney General Bill McCollum announced a judgment of $1.3 million to be paid by a debt collector that violated collection laws. Ellis Crosby & Associates, including the owner Ted Ellis Crosby himself, engaged in willful violations of Florida’s Consumer Collections Practices Act and Deceptive and Unfair Business Practices Act. (more…)
Debt Settlement Companies Do Not Stop Legal Action
Many unsuspecting debtors flock to debt settlement companies because they offer the lowest payment available for a debt relief program (excluding bankruptcy). However, a high number of debt settlement company clients find that the settlement company offers very little benefit at a very high cost. Worst yet, there are no protections from legal action. (more…)
The Consumer Law Center Blocked in North Carolina
Wake Superior Court Judge Donald Stephens signed the order to block The Consumer Law Center and Hess-Kennedy Chartered LLC from providing debt settlement services in North Carolina. According to Attorney General Roy Cooper, clients were often left in worse shape than when they first sought help. (more…)
How to Select a Debt Settlement Company
DON’T!
That should just about sum it up. Debt settlement companies:
- Cannot reduce the debt lower than you can negotiate
- Cannot help you avoid legal action such as judgment and garnishment
- Charge you monthly fees of $35 or more
- Charge you a percentage of the savings
- Fail to disclose potential taxes on forgiven debt that you will owe
- Have a dismal success rate
- Have horrible ratings with the Better Business Bureau, with only a few exceptions
- Are mostly for-profit corporations
Debt Collectors: Know What They Pay
Have you ever wondered how much debt collectors paid for your debt? Knowing their investment in the debt can help you know what they might be willing to settle for. The answer might surprise you! (more…)
Choosing a Credit Counselor
Choosing a reputable credit counseling agency is about to get easier. Consider these tips when deciding which credit counseling agency will best be able to help you improve your financial situation. (more…)
IRS Revokes Charity Status of Hawaii Credit Counseling Service
Hawaii residents searching for debt relief find they have few options when it comes to credit counseling. That list got even smaller when the Internal Revenue Service revoked the tax-exempt status of Hawaii Credit Counseling Service in early 2007. (more…)
