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FTC bars upfront fees for debt-settlement customers
Posted: August 18th, 2010
Companies that promise to reduce or eliminate credit
card balances and other debt for customers (Debt-Settlement
Companies) will no longer be allowed to charge an upfront fee
for their services effective October 27, 2010. Debt-Settlement
companies will now only be able to charge a fee to customer's
one the debt has been reduced, settled or renegotiated.
The Federal Trade Commission said Thursday that the new
restrictions are a crackdown on the debt-settlement industry,
which flourished during the economic downturn as borrowers
struggled to pay bills. (read
more)
USAToday.com
Old Debts That Won't Die
Posted: August 10th, 2010
The debt collection industry has undergone a
transformation in the last decade. Credit card issuers, health
care providers and cellphone companies now routinely sell debt
that they deem uncollectible to debt buyers, who then either try
to collect it themselves, turn it over to a collections law firm
or sell it again. The statute of limitations for debt varies
from state to state, generally from three to 10 years. In many
states, collectors can restart the clock if they can persuade
the consumer to make even the smallest payment. Making a payment
of any amount will revive the debt so it can be legally pursued
in court. (read
more)
NYTimes.com
VT Attorney General alleges debt "relief" firms often make
things worse
Posted: August 1st, 2010
These companies – often called credit consolidators –
make big promises to Americans struggling with mounting personal
debt in a bad economy. They promise to get creditors off
people's backs, to reduce their debt by up to 75 percent and get
them back on “the road to financial freedom.”
But many of these companies, according to legal experts, are
nothing more than big rip-offs. The Vermont attorney general's
office in February reached a settlement with one credit
consolidator and this month sued another, alleging it bilked
Vermonters of more than $130,000.
(read
more)
TimesArgus.com
Bankruptcy can save your house from foreclosure
Posted: August 1st, 2010
Slick TV commercials and online ads tell delinquent
borrowers that they can save their homes by filing for personal
bankruptcy. But is it true -- or just too good to be true?
...True!
Bankruptcy can bring foreclosure proceedings to a halt, end
harassment from debt collectors, and give borrowers time to make
up missed payments and reorganize their finances. In some cases,
bankruptcy can also help mortgage borrowers save their homes
permanently. It's not, however, going to help every troubled
homeowner. (read
more)
CnnMoney.com
America's new debtor prison: Jail time being given to those who
owe
Posted: July 19th, 2010
Debtor's Prison has been abolished since the 1800's,
however, did you know that there are loop-holes in the legal
system that allow some people to wind up in jail for a debt they
may or may not owe? Debt
collectors are increasingly using the court system as a way to
collect debts from people, often the ones that are least able to
repay. Its important to understand your rights and protect
yourself from agressive debt collectors who are out to collect a
debt at any cost, even if that cost is your freedom. (read
more)
WalletPop.com
Debt Collectors Get Nasty
Posted: July 19th, 2010
Complaints of harassment by debt collectors surged
50% to 67,550 in 2009, according to the Federal Trade
Commission. Harassing phone calls, abusive language and physical
violence are becoming a bigger part of business as debt
collectors struggle to round up money from people who don't have
it. (read
more)
CNN Money.com
Peddling Relief, Firms Put Debtors
in Deeper Hold
Posted: June 22nd, 2010
The long recession has delivered an abundance of potential
customers to Debt-Relief companies promising debt relief
assistance. However, consumers rarely emerge from debt
settlement programs with their credit card balances eliminated,
critics say, and may wind up worse off with severely damaged
credit, ceaseless threats from collection agencies and lawsuits
from creditors. New York State Attorney General alleged
that no more than 1 percent of customers gained services
promised by marketers with Colorado coming to the same
conclusion. The New York Times takes a look at Debt
Settlement companies and things you should know if you're
considering one in your future. (read
more)
NYTIMES.COM
Complaints to BBB Against Debt Settlement Companies On The Rise
Posted: May 14th, 2010
Better Business Bureau is warning financially troubled
families to beware of misleading debt settlement companies that
claim they can easily reduce or eliminate credit card debt.
Since the start of the recession, BBB has received more than
3,500 complaints from individuals, including many who paid
hundreds of dollars in upfront fees to debt settlement companies
but only fell deeper into debt. (read
more)
BBB.org
> MORE
BANKRUPTCY NEWS
*Bankruptcy information contained in this
section may not necessarily be written or provided by Bond and
Botes directly.
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