New York Attorney General Andrew Cuomo successfully settled with a debt collector accused of abusing debtors. National Action Financial Services (NAFS) of Williamsville, NY has agreed to pay $85,000 in penalties and costs. (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
|
|
|
Archive for the ‘Eliminate Debt’ Category
Quickest Way Out of Debt
The quickest way out of credit card debt is to dramatically cut your interest rates. There is no other factor that matters as much as the rate in which your finance charges are compounded. So how do you eliminate credit card debt? Here’s how. (more…)
Credit Card Charge-offs Up 20 Percent
According to Collections & Credit Risk, credit card charge-offs rose 20% in the third quarter of 2007 over the same period in 2006. Bank of America, Chase, American Express and Citigroup set the pace with a combined $5.57 billion in charge-offs for the three months ending September, 2007.
This is less than the second quarter’s increase of 22%. Here is how the individual issuers fared. (more…)
Does Credit Counseling Affect Credit?
I hear some people say that credit counseling is just like bankruptcy. Others say that you cannot get a loan if you are on a debt management plan. There is so much incorrect information being discussed, and regrettably, it is often by professional mortgage loan officers and bankers.
Let’s bury the hatchet on those old urban legends. Here is the truth, from Fair Isaac Corporation, the Federal Housing Administration (FHA) and the US Department of Housing and Urban Development. (more…)
Debt Collector Hit with $1.375 Million Settlement for Harassment
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…)
What is a 1099-C?
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…)
Should You Invest When in Debt?
When trying to eliminate credit card debt, it seems counterproductive to invest money that will likely earn a lower return than what you are paying in credit card interest. In some situations, you may wish to temporarily put off your retirement plans.
However, many people mistakenly avoid taking advantage of incentives that exceed what they are saving in credit card interest. There are indeed many situations where you should invest even when in debt. (more…)
Lenders Violate Credit Laws for Discharged Debts
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…)
Emergency Ownership and Mortgage Equity Protection Act
Congress may soon vote on H.R. 3609, which is titled the Emergency Ownership and Mortgage Equity Protection Act. The idea is to provide bankruptcy judges the authority to modify mortgage loans to help families afford the payments.
The bill proposes allowing distressed homeowners to include their mortgage in a Chapter 13 bankruptcy filing. There are some other important proposed changes also. (more…)
Two Words to Stop Debt Collectors
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…)
