The Federal Trade Commission announced that EdebitPay will pay $2,258,258 to compensate consumers affected by unauthorized debits. The FTC also alleged that EdebitPay was guilty of deceptive marketing practices. 
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Republicans and Democrats hailed the newly announced income tax rebates as a preventative measure to ward off recession. The rebates amounting to $600 for individual taxpayers and $1,200 for joint tax filers are supposed to ratchet up consumer spending. Even those earning $3,000 or more would get $300 back, even though they do not pay income taxes.
The goal of this is to provide a boost to an ailing economy that is by some accounts already falling into recession. However, these rebates will not have the intended effects.
A foreclosure rescue operation was sued in Broward County Circuit Court on allegations of fraud. National Foreclosure Management Inc., which also does business as American Home Rescue Inc. was charged with violating Florida’s deceptive and unfair trade laws.
About 80 homeowners were affected, representing approximately $1.7 million in equity. Most of these homeowners had substantial equity in their homes, yet were facing foreclosure. It is believed that they were targeted specifically because of the higher equity they held.
Homeowners thought that they were getting a deal. They were allowed to remain in the homes while the rescue company held the property titles for a year. Homeowners were expecting to refinance as part of the deal.
Instead, many homes were sold to investors that would in turn rent the homes back at an inflated rental rate. Homeowners lost their equity and ownership interests.
The legislature has proposed House Bill 643 and Senate Bill 992 which are expected to make mortgage rescue scams harder to operate. These bills would require a 5 day cancellation period, additional disclosures and limitations on payments received prior to service.
23
Jan 2008
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
23
Jan 2008
ARM Holders Should Refinance
Holders of adjustable rate mortgages (ARMs) that are facing a reset (dramatic increase) in their rates and monthly payments should consider refinancing with a fixed rate mortgage loan. Actions by the Fed to cut short-term interest rates should hold mortgage rates low for the next several months.
22
Jan 2008
Fed Slashes Rates to Resist Recession
The Federal Reserve Board voted to reduce both the federal funds rate and the discount rate by three quarters of a percent. In an emergency move, the Fed acted ahead of next week’s scheduled meeting.
Huge sell-offs in Asian and European markets were expected to be matched by a similarly drastic fall in US stock prices. The holiday kept US stock exchanges closed, which allowed for two days of losses overseas.
21
Jan 2008
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!
18
Jan 2008
RBC Centura Becoming RBC Bank
In a change announced Thursday, RBC Centura announced that they would be simplifying their name. Considered by some to be a mouthful, RBC Centura will become RBC Bank.
The change is expected to finalize in April, when the bank will officially become RBC Bank.
It will take some time for the changes to be fully implemented. In fact, many of the old signs may still say RBC Centura for the next couple of years.
15
Jan 2008
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.
11
Jan 2008
Cleveland Sues 21 Banks
In a rare move, the City of Cleveland filed a lawsuit in Cuyahoga County Common Pleas Court, suing 21 banks over the foreclosure crisis. As some consumer advocates applaud the move, we know that it is too little too late.
