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At least sometime in our lives we all run into a Debt problem. The question is what to do about it. This article offers practical and real solutions you may be totally unaware of. So I will get right to the point.
Number 1: You can stick your head in the sand and pretend that everything is fine and you do not owe anybody any money.
This solution usually winds up with a horrible credit score, non stop phone calls that seem to follow you wherever you go. That would be work, school, perhaps even church.
The bottom line is not good.
Number 2: Simply wait until one day you find that maybe a few thousand dollars is missing from your bank account or accounts. Trust me, I know what I am talking about. As long as your income is not made up of what is called exempt funds, then yes they can do it.
Number 3: Now, here comes the good news! Every harassing phone call is actually worth money to you. And potentially, a lot of it. Before you finish reading this article you will learn about something called cash for calls. Yes, exactly what it sounds like. Those harassing calls where Debt Collectors use the telephone to try to wear you down by calling you all times of the day or night, or calling you at your place of business, or many other things that they hope will squeeze a payment out of you.
If they are able to get a payment from you for any little amount of money, then they may restart the clock on the statute of limitations. E.g. That means if the SOL was about to run out in your state, lets say 4 years on unsecured debt, then they get another 4 years to legally try and collect the debt. If you do not give them any money, then the ballgame is over, in terms of the collector legally trying to collect the debt. Yikes!! No only that, but you can turn around and sue them and get rather large awards of money from them. We have firsthand knowledge of consumers who have been awarded as much as 90,000 dollars for FDCPA violations.
To do this you first , have to find someone who is familiar with how to teach you what you need to document collector calls, and then follow their instructions.
Here is what you may be losing if you do not follow through on this article:
"Receive $500 every time a creditor or collector makes your phone ring."
"Receive $1,000 every time a creditor or collector reports negatively on your credit reports."
"Receive up to $1,000 every time a creditor or collector sends you a billing statement that includes an error (email and mail)."
(You Can Rebuild Your Credit Score and Deal with Negative Debt By Visiting www.americandebtenders.com/debtdispute
Having bad credit can feel like getting a flat tire on your way toward a solid financial future. It can also make you feel like you’re the only one stranded on the side of the road with no help in sight. You could convince yourself that things may have been the same had you taken a different route. But even if your situation was unavoidable, it doesn’t make it ideal.
The good news is, you’re not the only one, and you have options for getting back on track. Choosing a bad credit loan can help to soften the blow of a tough financial season. And it could help you bridge the gap between a long-term plan and a practical step toward rebuilding credit.
Believe it or not, the majority of Americans have what’s considered to be a moderate to low credit score(580 to 620). Much of the stress that may come with having bad credit can be relieved once you have a clear understanding of what it means for you, what resources are available, and how to protect your credit score in the future.
Does having bad credit mean I’m being punished for bad financial habits?
It’s important to remember that having bad credit doesn’t always mean that someone was irresponsible. There are a myriad of life circumstances that can impact finances and set you back – such as unexpected medical bills, loss of employment, a natural disaster, etc. Having a low credit score can also mean that you’re simply just starting out, and have yet to build any credit. Bottom line: Many people find themselves having a low credit score through no fault of their own.
But regardless of the events that lead to it, there are some general side effects of having bad credit.
Higher interest rates
A lower credit rating could mean a higher risk for default. Lenders may compensate by setting interest rates higher to protect their investment. So, borrowing a large amount could mean paying a large amount of interest over time.
Difficulty getting approved altogether
If you have an unusually low credit score, you may see few lenders willing to take a chance on approving you for a loan or credit card.This is a realistic situation that many with no credit find themselves in – such as a student, applying for a loan. In this case, getting a cosigner is usually the route to take.
Difficulty renting a place of residence or getting a phone contract
Even if you’re trying to rent a place of residence or sign a phone contract – neither of which would call for a loan – having bad credit could still potentially slow things down. This comes as a surprise to some because they think agreeing to pay the bills in cash should nullify the credit risk. But landlords and phone companies could in fact check your credit before agreeing to do business with you.
Paying more security deposits
Utility companies – similar to landlords and phone providers – can check your credit as well. You may be asked to pay a security deposit, or a higher security deposit, depending on your credit score and the company’s policy. Since you wouldn’t be paying interest on utilities, the one-time fee upfront works the same as insurance would for the provider.
Choosing a bad credit lender
Despite the difficulties, having a low credit score doesn’t mean getting a loan is impossible. What it does mean is you may need to utilize a little more strategy in selecting a lender. You can be approved through a short-term lender, online lender, bank, or credit union. You have plenty of options to choose from, and convenient ways of searching for them. But if you decide to do a little more digging on your own, it helps to know where to start.
Competitive interest rates are only one piece of the puzzle. Your goal is also to identify supportive resources that help you chip away at debt and ultimately get back to building your credit score. Here are a few things to think about when considering your options:
Types of bad credit personal loans
Installment loans: These loans don’t have any collateral attached, but do require you to pay through amortization, which are equal monthly installments over the predetermined loan term.
Payday Loans: Also don’t require collateral, but you must repay by your next payday. For this reason, they are usually short-term loans with high APR.
Cash advances: Similar to payday loans. Cash advance lenders most likely won’t check your credit, but these are most useful if you have a credit card or steady income. Not available in all states.
Bank Agreements: Per your bank’s policy, they may approve you for a short-term loan or minimal overdraft agreement. This is of course dependent on your banking history and ability to keep your account open.
What to look for in a lender
Questions to ask
Customer service/assistance
Do they have a full online/mobile service?
Is there a comprehensive pre-approval process?
Are there service agents ready to speak with me whenever needed?
Service reach
Are they licensed in all 50 states, and where are the branch locations?
What’s the minimum credit score to receive service?
How is underwriting handled, and will they consider alternative credit data?
Flexibility
Are there a variety of secured and co-signed loans options?
Do they offer zero and low down payment options?
Are they willing to waive lender fees?
3 life events that may call for bad credit loans
Consider some practical reasons why getting a bad credit loan could be a better choice than some of the more common ways of dealing with financial problems.
Building your Credit Post-Bankruptcy
Filing for bankruptcy is a decision that shouldn’t be taken lightly. While it can help to stem the tide of debt you find yourself in, it can certainly cause your credit score to take a major hit. However, many have bounced back from bankruptcy. The key is knowing when to take the first step.
Bankruptcy has a tendency to feel like the end, not a beginning. It’s natural to have doubts when you’re having financial problems, and the hardest part can be accepting the realities and feeling confident about the future. Or, you might be looking at things from the other side – relieved that so much debt has been lifted.
The truth is, filing for bankruptcy is more like taking a life raft than an escape hatch. There are still some debts that you’re responsible for repaying, even after filing. It’s important to know which debts bankruptcy can touch, and which debts it can’t.
Bankruptcy Eliminates
Bankruptcy Doesn’t Eliminate
Credit card debt
Medical expense debt
Any other unsecured debt
Child support
Auto loans
Mortgages
Student loans
Taxes
Any other secured debt
Chart your course
Bankruptcy doesn’t stay on your credit report forever. Once it’s discharged, you essentially have a clean slate to rebuild your credit score. However, the costs involved with filing shouldn’t be taken lightly either. Putting together a step-by-step action plan following bankruptcy is highly recommended, if only to avoid trying to do too much too quickly.
Developing good habits with credit and spending can help you bounce back from bankruptcy. Here are a few of the essential steps:
Make a budget – Track your expenses for three months and create a budget around your monthly income. When you can, establish an emergency fund.
Pay all bills on time – Even after filing for bankruptcy, your payment history is being tracked.
Beware of scams – Stay away from anyone offering to repair your credit post-bankruptcy for a fee. Only you can build your credit, and it’s free.
Stay positive
Your eligibility for a loan post-bankruptcy will most likely be scrutinized. Your employment status, income, and ability to manage repayments means everything when it comes to being approved. Your assets could also be a factor, as you’ll most likely be required to provide collateral. If you had to file for bankruptcy due to unemployment, you could start with a manageable cash advance or some other short-term agreement. The key is to keep chipping away at your debt until you can build a good foundation in its place. Keep in mind that bankruptcy, while initially damaging to your credit score, doesn’t have to undermine your financial future.
Common suggestion: Get a secured credit card
Whether you file for Chapter 7 or Chapter 13 bankruptcy will determine the amount of time it will appear on your credit score (7-10 years). Some financial advisers suggest opening a secured credit card account will help you build credit quickly after the bankruptcy is lifted from your report. That’s true, but any interest rates and annual fees attached could also put you at risk of falling into more debt.
Why a bad credit loan could be a better choice
Most credit unions and banks want to see at least 12-24 months of solid payment history before approving you for any kind of secured method of building credit. Getting a bad credit loan can help you establish some consistent payment history without having to worry about annual fees plus interest. Be prepared for lenders to see you as high-risk. But if you can find an affordable loan and repay it, you can begin to get your credit score back on solid ground.
Funding for Disabled Veterans in need of Home Modifications
The U.S. Department of Veterans Affairs (VA) provides the most comprehensive economic and health-related assistance for vets and their families. However, there are some limitations. According to the U.S. Census Bureau, a total of 3.8 million veterans had a service-connected disability rating as of 2014.
Service-connected disabilities are wide-ranging, but consist of a disease or injury obtained during active military service. While not every individual faces the same problems after service, the top three economic challenges tend to be unemployment, poverty, and homelessness. Veterans with service-connected disabilities, who are in need of specific home modifications and medical treatment are among the most at risk of experiencing some kind of debt that can lead to bad credit.
Government assistance for veterans
There are various resources for veterans with debt. One example is called the VA Medical Care Hardship Program. In addition to receiving help with some copayments related to medical treatment, veterans can also benefit from existing debt waivers. While programs like these largely make approvals based on service rather than credit history, there are still some strict eligibility requirements attached – i.e. you need to submit a letter for review, outlining your financial hardship. And this mostly applies only if your gross household income has decreased.
Grant eligibility
For service members and veterans who are living with a family member, there are three VA housing grants that allow for home modifications to the family member’s home:
Specialty Adapted Housing Grant
Special Housing Adaptation Grant
Temporary Residence Assistance Grant
However, like the larger health benefits programs, the scope of eligibility can be narrow. Below are the specific details of each grant.
Specially Adapted Housing Grant
Eligibility
Loss of or loss of use of both legs, OR
Loss of or loss of use of both arms, OR
Blindness in both eyes having only light perception, plus loss of or loss of use of one leg, OR
The loss of or loss of use of one lower leg together with residuals of organic disease or injury, OR
The loss of or loss of use of one leg together with the loss of or loss of use of one arm, OR
Certain severe burns, OR
Certain severe respiratory injuries
Living situation
Permanent
Who owns the home?
An eligible individual
Grants you can use
Maximum of 3 grants, up to the maximum dollar amount allowable
Special Housing Adaptation (SHA) Grant
Eligibility
Blindness in both eyes with 5/200 visual acuity or less, OR
Loss of or loss of use of both hands, OR
Certain severe burn injuries, OR
Certain severe respiratory injuries
Living situation
Permanent
Who owns the home?
An eligible individual or family member
Grants you can use
Maximum of 3 grants, up to the maximum dollar amount allowable
Temporary Residence Assistance (TRA) Grant
Eligibility
Dependent on eligibility for SAH and SHA
Living situation
Temporary
Who owns the home?
An eligible individual's family member
Grants you can use
Maximum of 1 grant
What parts of the house qualify for renovations?
Bathrooms, kitchens, and bedrooms
Covered porches, ramps, and walkways
Garages, carports, and passageways
Doors, windows, and flooring materials
Security items
Concrete or asphalt walkways
Sliding doors, handrails, and grab bars
Common suggestion: Apply for a VA loan
A VA loan can certainly be a viable option for veterans and active service members, specifically when it comes to purchasing a home. Benefits such as no down payments or required mortgage insurance are attractive. However, other specific medical and physical needs of some veterans with disabilities may be tough to meet if they don’t match a specific criteria or time of active duty. There’s a chance many may not be approved.
Why a bad credit loan could be a better choice
Despite the idea that VA loans aren’t as stringent when it comes to credit scores, most lenders would actually like to see a score of 620 or higher for approval. With a bad credit personal loan, veterans with service-connected disabilities, debt, and credit scores below 620 won’t have to put all their eggs in one basket. It can also widen some of the eligibility lanes and provide some financial relief more quickly.
Dealing with Debt after Divorce
Divorcing your spouse can be an overlooked source of long-term financial strain. Some of the financial decisions made during marriage aren’t so easily navigated once you’ve decided to part ways. While a divorce doesn’t show up on your credit report, your score could suffer some residual effects depending on any debt incurred during the marriage, as well as attorney fees and other costs.
Apart but not alone
Divorce, like bad credit, can cause feelings of loneliness and anxiety. Much of it stems from regret, especially for those who weren’t financially independent during the marriage. The first thing you should know is that you’re definitely not alone. The process isn’t easy. Neither is finding a way to both educate yourself about your finances and re-establishing some healthy financial habits. It’s also important to note that while you might be divorced from your former spouse, keeping your financial partnership intact is ideal when tackling some combined debt.
You’re not alone.
After divorce:
Are worried about their finances after getting divorced
Say that divorce put them in financial ruin
Regret not being more financially independent in the marriage
What combining debt means during marriage and after divorce
It’s considered a myth that any debt you incur individually will automatically merge with your spouse’s debt after marriage – making both of you liable for all of it. It’s not so much a myth, but rather an overly generalized view of what can actually happen. If you or your spouse incur any debt during the marriage, joint liability will ultimately depend on where you live.
Most states will follow one of two rules when looking at debt within marriage:
Community Property – where income and most debts incurred by one spouse during marriage are owned by “the community” – both spouses.
Common Law – where most debts incurred by one spouse during marriage are owned by that spouse alone. (Exceptions to this rule are any debts that fall under “family necessity” – i.e food, shelter, medical expenses, and school tuition.)
This is important, because creditors in community property states can seize a couple’s assets to pay off debts, even if the debt was incurred by one spouse. While the rules vary by state, most will follow common law rather than community property. But a lot depends on how you and your spouse choose to handle the family finances.
Essentially, there is nothing that legally binds you to all of your spouse’s debt. However, many divorcees note that they had different expectations of their spouse’s spending habits than what occured in reality. Red flags that show up on things like joint bank accounts or joint credit card accounts can create problems that linger after the marriage ends.
Whether or not spending habits played a role in the divorce, you may find yourself struggling with unpaid bills and an ex-spouse who unfortunately isn’t carrying their weight to pay their share of the debt. As a result, your credit score takes a hit.
Even though the outcome is the same, not all divorces are created equal when it comes to the details. The ideal scenario would result in a quick, low-stress, and relatively painless process that keeps costs as low as possible. Unfortunately, that’s not always the case. Decisions such as renting your next place of residence vs. owning, hiring a divorce mediator vs. separate divorce lawyers, and moving out of state after the divorce vs. staying local can mean a difference of thousands of dollars in expenses. Putting these expenses on a credit card to avoid dipping into your savings might seem like a logical solution, but it could prove to be just a Band-Aid instead of an eraser.
A large piece of the cost will come down to whether the divorce is uncontested or contested. An uncontested divorce means both parties agree on the details of the separation, and can generally take care of everything for a few hundred dollars. A contested divorce means you can’t agree on all the issues to adequately move forward, and a neutral third party needs to be involved. Divorcing couples commonly hire a mediator if large assets or children are in the picture. Mediators tend to charge an average of $100 to $150 per hour, depending on the complexities of the situation.
Issues negotiated through mediation include:
Child custody/support
Taxes
Retirement
Assets
Liabilities
Mediation is certainly cheaper than litigation. And keeping your divorce out of the courts can spare all parties involved some emotional and mental stress. The bottom line is understanding all costs involved with divorce can help to shape your thinking about financing and the effects on your credit.
Common suggestion: Sign a prenuptial or postnuptial agreement
If a couple decides to divorce, the related costs are unavoidable. Though it’s difficult to really prepare because you can’t predict the future – and going into marriage with your mind on divorce could be a downer. But many do choose to go the prenup route to fend off any potentially ugly litigation. Postnuptial agreements are no different, other than the agreement is made after the couple is married. Couples tend to consider a postnup if divorce is on the horizon and they want to agree to keep costs as low as possible before proceeding.
Why a bad credit loan could be a better choice
Though a nuptial agreement can help with some divorce-related costs, it’s no guarantee that you won’t incur debt as a result of the divorce. It also has no bearing on any unpaid debt that’s incurred during the marriage. Your credit score could already be in the red by the time of your divorce, and a bad credit loan can help you to navigate the beginning stages of a challenging season.
Protecting your credit score after laying fresh ground
Building credit and protecting your credit score aren’t always synonymous, but they are related. Once you’ve regained some financial footing via a bad credit loan (and you will), you can then continue to practice good habits and set up protections around your credit score. Three quick tips:
Make automated payments: Start with setting up automatic payments for your bills through your bank. This will relieve the burden of having to remember due dates. And it will get you into a consistent a rhythm of repayment, which is music to a creditor’s ears.
Cash in, cash out: Be strategic with your credit cards and pay for more using cash. Your budget shouldn’t allow you to spend beyond what you earn. Using cash will help you keep track.
Keep an eye on your accounts: Even when you’re not overly active, continue to check your FICO score and credit card accounts regularly. This will help you maintain an ownership mentality and keep annual fees from sneaking up on you.
It’s about Beginning Again
Starting over financially most likely means starting over personally in some areas as well, and that’s nothing to be ashamed of. A lack of knowledge, adequate resources, or access to funds to pay off debt can have a swift impact on your credit score. But remember, bad credit doesn’t have to be final. You still have options toward building a functional financial life; and a bad credit loan could be a viable one.
For a Fee Credit Counseling Consultation visit or Call Below: 877-766-2465, Speak with any expert counselor
Well, I am going to start this article which will definitely educate you, by republishing the following excerpt The following article excerpt comes from Credit Shield: Discover Bank Sues On Debt it Does Not Own. Who has experience determining ownership of accounts? I'm still looking for info on who has seen proof of ownership from Discover, proof of untruth of their affidavits. See this article: Discover Bank Sues On Debt it Does Not Own February 16th, 2010 . by wcbensley, an Attorney. For a bank to sue someone to collect a debt, the bank must own the debt. Similarly, if I was going to sue you for stealing my car, I would have to prove that I owned the car. I would have to produce a copy of the Title. Seems like simple proposition. So simple, that it is often overlooked by debtors, their attorneys, and the Courts.
This cute little tactic goes on every day and is exactly why you the debtor does not have a chance against these large institutions when you default. Or, how about you simply get something placed on your credit report in error. Better still, who is even aware that this type of stuff goes on, on a regular basis, and many other violations of consumer law designed and put in place to protect you, the consumer.
Well, my friends, at last their is hope for you the beleaguered debt ridden consumer. Article after article I read on what to do about debt problems all start with contacting the creditor or lender. This assumes that they play nice. Well, whose kidding who. They do not play nice which is why you should never take them on alone if you get into trouble. Don't forget that these guys are collecting usually better than 20% interest in a 3% interest world. Do you really think that they are going to play nice?
So why the title. What comes after the ... are the words Credit Shield. What exactly is credit shield? It is a debt validation or forensic debt audit which was approved by the FTC about 5 years ago, and is designed to take on collectors and creditors who simply do not play by the rules. The Credit Shield system invokes the laws and statutes found in the Fair Debt Collection Practices Act, and 8 other laws to protect you from third party debt collectors, fraudulent debt collection practices, and violations of your rights. We work with a nationwide attorney firm for collecting money for you as well when debt collectors violate your rights by calling or continuing collection without verifying the debt. The amazing thing is that it is cheaper than even debt settlement and even more, if you can take it, it is done in about half the time of debt settlement and provides for credit restoration as the final step of the program, at no additional cost! Credit Shield is both the name of the debt relief program and the name of the company which handles the processing and holds the FTC approval. Many of the methods for invalidating a debt used by Credit Shield are proprietary. I can also tell you that this program comes with a 100% money back guarantee!
So, if you find yourself struggling with debt and a low credit score, why not get a free Credit Shield quote and have the program further explained to you. Considering the 100% money back guarantee, you have absolutely nothing to lose.
In keeping with its primary vision and purpose American Debt Enders is bringing Debt Relief to the future of Credit Counseling by getting ready to offer Click To Calldebt relief and free credit counseling to mobile users. So what is click to call? We have found that people calling for counseling just don't know where to begin. Already hurting from being oppressed by debt, of course they are seeking relief, but where to begin. Often they are faced with the dilemma of do I fill out the intake form, or do I call? If I call what do I say? Exactly what is credit counseling? is it for me?
The answer is that anyone who is feeling the effects of carrying to much unsecured debt can benefit from credit counseling. Click to call is simply a better way to connect consumers to a qualified counselor. One who is capable of analyzing their situation and then explaining the options which are not only available to them but also suitable to them. Lets be real, not every program is for everyone in debt. Or, stated another way, when it comes to debt one size definitely does not fit all.
While many debt relief companies offer only one program, this is really the equivalent of being sick and going to an emergency room which only handles broken legs. To many companies offer only one program. American Debt Enders had enjoyed great success offering a wide variety of relief programs to consumers. This is done by having counselors available who understand a wide variety of debt relief programs and then can place the consumer in the hands of a debt specialist who understands the program they are explaining fully and is capable of truly helping the individual.
By utilizing the click to call feature a consumer is immediately put in touch with a counselor who can guide them to what they need and even qualify them for a particular debt relief program. At the current time American Debt Enders offers debt consolidation, federal student loan help, private student loan help, payday loan help, a word here regarding payday loans, this program is a non profit program with very low fees and is also non-adversarial which means the consumer will not be flooded by phone calls. Additionally ADE offers debt invalidation with complete credit restoration at no additional charge, we also offer debt settlement with debt invalidation which is an extremely powerful combination, we can also help with tax problems and chapter 7 bankruptcy free consultations to see if you qualify.
Inside
Arm the newsletter for the debt collection industry recently reported that a
revision to the Fair Debt Collection Practices Act was introduced into
congress. Introduced by North CarolinaRepublicanWalter Jones, Jr. a
republican no less, as H.R.6706 — the Fair Debt Collection
Practices Technical Correction Act of 2012 –was introduced on December 27,
2012. Since Mr. Jones was just reelected, and it is too late to vote on he bill
for the outgoing congress of 2012, no doubt he has plenty of time to re
introduce it in 2013.
This
bill, in my humble opinion, is really bad news for consumers. Here is why in a
nutshell. It completely re defines use of the word debt collector. Previously,
only original creditors were exempted from the consumer protective provisions
of this act. Meaning, they could freely call you, and harass you, and were also
exempt from all its other provisions. This bill however, will treat Attorneys
and their firms when acting as debt collectors to be treated just like the
original creditor. That means the
tactics of debt validation, constant calls are now on there side, and would no
longer offer protections to the consumer.
Here
is the exact redefining language:
The term (debt collector) does not
include –
(F) any law firm or licensed attorney–
(i) serving, filing, or conveying
formal legal pleadings, discovery requests, or other documents pursuant to the
applicable rules of civil procedure; or
(ii) communicating in, or at the
direction of, a court of law or in depositions or settlement conferences, in
connection with a pending legal action to collect a debt on behalf of a client;
and…
So,
if you are dealing with a debt problem, and going forward think you can slow
things down by asking for debt validation, ad filing suits for creditor
harassment, let this be a word to the wise.
According
to Inside Arm, which is a publication by and for the Debt Collection Industry.Brad Pitt is developing a true story in series form about an ex felon who is trying to turn his life
around by working as a debt collector in the debt collection industry and finds
it fraught with perils and not so dissimilar from the world he is trying to
leave.
The
series will be called “Paper,” and is based on an essay published in the New Yorker in 2010 titled “Pay
Up.”
That story took a critical look at the life of an ex-con who owns a debt
collection agency in Buffalo
that works older payday loans.
Yes,
many debt collection companies are small firms as the article points out, many
sub contracting for larger companies. There is no question that while the debt
collection industry has cleaned up somewhat, it never ceases to amaze me the
stories that I hear from consumers and prospective clients of the abuse that
still exists. Just prior to the writing of this article I heard a story about a
debt collector call center threatening to call the consumer every hour between
8am and 9pm.
This
is outrageous. If
you are in debt and need help to get out, just visit: American
Debt Enders, and one important point, we do not run a call center. All of our
counseling is free, and very personalized to help you deal with your debt
issues, and become self empowered.
Recently
I was asked by a friend to accompany her to a court hearing involving a credit
card debt. As a side note, that is what tends to happen when you’re a credit
counselor. Anyway, the debt amount was 1800.00 dollars, not a very large amount
by some standards, but when you do not have it, perhaps a fortune. Anyway,
prior to being served she had followed my advice and requested a debt
validation. This act, stopped the phone calls, and after about 60 days, my
friend received a pile of papers supposedly validating the debt, and about 8
months later a subpoena. So now you should be asking, what happens since the
validation was not responded to in the 30 day period as required by the FDCPA?
Secondly, what was in the pile of papers?
The
papers produced were copies of the credit card paperwork with my friends
signature showing each individual charge. The only way to dispute this would be
to say that the signatures were not hers. She was not about to perpetrate a
fraud. Secondly, the mediator went right past the fact that the requested
validation was not produced in 30 days, and
looked at my friend and asked her if she was denying that
any part of the debt was hers. Again, she had to answer no. As an important
point of note, while this was a hearing in the mediators office, one thing to
understand is you take your que in this situation by what you see happening.
Neither the mediator or the opposing counsel were out for blood, but simply
wanted to resolve the matter fairly.
To
make a long story short, the debt was settled that day for 40% of what was
owed, with no legal fees or interest added on. Furthermore, my friend was given
a 60 day grace period to start her very low monthly payments.
The
above real life example of how an actual case was resolved should help drive
home the point that even if you know nothing about the law, know one thing,
that is, if you do not respond to the subpoena you lose by default. My friend
had me to guide her through the process, a credit counselor familiar with the
system, but not Perry Mason, and had a very favorable outcome.
Allow
me to provide some words of advice.
If
served a notice from a creditor advising you that you have 30 days to respond
to the validity of the debt, by all means do so. You can visit the americandebtenders creditor lawsuit resource page to get a sample letter, very simple. This
will at least, put the ball in play and slow things down.
Next,
monitor your phone calls. The creditor is not permitted to contact you or put
more negatives on your credit report when the validation is under way. This is
a big point, and may allow you to counter sue.
Next,
if you are subpoenaed, and sometimes the validation request makes the whole
thing just go away, make sure you respond to it.
These
simple rules will go a very long way to keeping judgments and wage garnishments
from ever happening to you.
Thanks
for reading. If you need advice, or what I believe to be the best debt
settlement program in the country, please do not hesitate to call me or email
me.
Here is the truth about
who needs a formal program to help resolve your debt problem, and who does not.
The focus of this article is to provide honest guidance from someone who has
been in the industry for 10 years. And is a committed expert and consumer
advocate. While I will focus on debt settlement let me start by saying if you
have high credit card debt and can make the payments, but also have very high
interest rates, you are crazy if you do not explore a debt management program
and get your interest rates lowered and pay off the debt in 5 years, and here
is the good part—save tons of money in interest. It is a simple program to set
up, and will not wreck your credit. Few people have the discipline to set up
their own debt snowball program, a phrase made famous by Dave Ramsey.
If
you are drowning in debt now, it will only get worse without an intervention. If
you are missing payments, robbing from Peter to pay Paul, then it’s time to seek
free credit counseling and see about what a program to settle your debt for less is really
all about.
First,
lets take a look at this article from the insidearm.com newsletter. This is a
newsletter from the debt collection industry, that trains debt collectors on
their craft. This one was titled “Secrets Of Defeating FDCPA Claims”. FDCPA
stands for the fair debt collection practices act. It is what consumers who
insist on dealing with their own debt problems use to try to defeat debt
collectors in court. usually after running up large debt loads that they know
they really owe. ( I did not mean to offend anyone with that statement).
I
cannot tell you how widely read my article entitled "debt validation not answered" is. The debt collection industry has become
increasingly sophisticated as has the settlement industry. So unless you have
assets that cannot be touched, otherwise known as exempt assets, then you are
foolish to take on the debt collection industry alone. Listen to this recording
from a debt collection industry training program. this will give you an idea of how sophisticated they are: http://traffic.libsyn.com/thedrill/TDCD_ep20.mp3)
Yes,
I know there are numerous articles that tell you just settle your debts for
pennies on the dollar. But, the truth is, if you have money or assets to
protect then rest assured that a collector will eventually get to them. Which
is exactly why you need professionals to help you. The collectors would rather
deal with your hired experts than deal with you, but if you insist on taking
them on yourself, you better be very smart, because the best you can hope for
is to slow them down.
Yes,
I know that this article cannot begin to cover every circumstance regarding
debt settlement and debt collection issues, so if you are reading it and would
like more information, please do not hesitate to call or email us, using the
information below.
OK, so the question is why do consumers wait until they are up against it to seek out absolutely free counseling regarding debt issues or any other issue? I am not saying that I have the answer. I really think that it is just human nature that makes us all seek help only when the pain gets to be to much. Myself included. So it’s just a part of the human condition. I always like to share my motivations for my articles. This one was inspired by an article I read on Linked in written by Lori Regenstreich, who discovered an original article from the New York Times written by Jessica Silver Greenberg entitled “In Prosecutors, Debt Collectors Find A Partner”.
Essentially, the article reveals a rather nefarious partnership, and I use the word partnership loosely, in which Prosecutors allow private debt collectors to send out letters on their letterhead threatening prosecutorial action unless the consumer makes good on the debt, usually a bounced check. Not only do the debt collectors ask the consumer to make good, but they are also adding on usurious fees. Just imagine if you had a business and were able to collect your accounts receivable this way.
Quoted from the article “Prosecutors say that the partnerships allow them to focus on more serious crimes, and that the letters are sent only to check writers who ignore merchants’ demands for payment.”
Does this remind you of the Southern sheriff from the movies, or what?
So here is the moral of this article. Can a credit counselor help you with every debt situation? No. But a credit counselor probably can help you if your situation is the result of to much debt and not enough money, which often causes a snowball effect because of the denal problem spoken about earlier.
A good debt settlement program or consolidation program, not to mention an online budgeting course can go a very long way to easing the debt burden early on, before the legal issues begin.
If you would like to subscribe to this newsleter simply visit: Free Credit Counseling Newsletter and leave your email address. We never share information
Hope you enjoyed this article, feel free to comment, or contact me:
In the early stages of the debt problem
you simply hope it will go away. Yes, the collector
phone calls are annoying, but soon you learn to screen them,
the drop in your credit score is not yet significant enough
to be a bother as you have no big expenditures planned.
Soon enough just like ignoring the symptoms of any disease
it begins to worsen, until finally it is disturbing enough to
address. Usually by the time it is addressed, the process server has
showed up with a subpoena in hand. Once a subpoena
is served on a debt, that particular debt is no longer eligible to
be placed in an FTC compliant
debt settlement program.,
Lets see why The FTC has mandated that fees only be
charged to consumers upon completion of a settlement Once the collector has served you with a subpoena it is much more difficult to settle with them and no attorney wants to spend time in court and not be sure they are getting paid. I cannot tell you the number of times I have received phone calls from concerned consumers, who not only want me to explain to them how to answer the subpoena, but are still not ready to do the right thing, and get the debts settled even if they are in financial position to do so, further extending their own dysfunction.
If you see your debts going into collection don't be
embarrassed just find out how to get into a good settlement program,
and start living real life again.
If you need FREE Credit Counseling
please for your own sake contact us. There is never any charge for the advice.
This information is not intended to be a sales pitch but
we can help you with, unsecured debt, bankruptcy, student loan debt,
and credit restoration., all without you even leaving your house.
Yours Truly
Steven Ciantro Consumer Advocate American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club
877-766-2465
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