I came accross this video today and my jaw hit the floor. Here at Debt Relief, we get calls every day from people who have been threatened by their creditors.  Unfortunately, fraudulent debt collection practices happen all of the time, but you DON'T have to take it!

The Fair Debt Collection Practices Act, FDCPA, dictates how debt collectors can act when collecting a debt from you. These are things a debt collector can't do.  Here is a list of 15 FDCPA Violations to watch out for:

1. Ask you to pay more than you owe - The collector cannot misrepresent the amount you owe.

2. Ask you to pay interest, fees, or expenses that are not allowed by law -The collector can't add on any extra fees that your original credit or loan agreement doesn't allow.

3. Call repeatedly or continuously - The FDCPA considers repeat calls as harassment.

4. Use obscene, profane, or abusive language - Using this kind of language is considered harassment.

5. Call before 8:00 am or after 9:00 pm - Calls during these times are considered harassment.

6. Call at times the collector knew or should know are inconvenient - Calls at these times are considered harassment.

7. Use or threaten to use violence if you don't pay the debt - Collectors can't threaten violence against you. 

8. Threaten action they cannot or will not take - Collectors can't threaten to sue or file charges against you, garnish wages, take property, cause job loss, or ruin your credit when the collector cannot or does not intend to take the action.

9. Illegally inform a third party about your alleged debt - Unless you have expressly given permision, collectors are not allowed to inform anyone about your debt except:

   • your attorney
   • the creditor
   • the creditor's attorney
   • a credit reporting agency
   • your spouse
   • your parent (if you are a minor)

10. Repeatedly call a third party to get your location information - The collector can only contact a third party once unless it has reason to believe the information previously provided is false. 

11. Contact you at work knowing your employer doesn't approve - A collector is not allowed to contact you at work if you’ve let them know your employer doesn’t approve of these calls.

12. Fail to send a written debt validation notice - Within five days of the collector's initial communication, it must send you a notice include the amount of the debt, name of the creditor, and notice of your right to dispute the debt within 30 days.

13. Ignore your written request to verify the debt and continue to collect - A collector can't continue to collect on a debt after you've made a written request to verify the debt as long as the request was made within 30 days of the collector's written notice.

14. Continue to collect on the debt before providing verification - After receiving your written dispute, the collector must stop collecting on the debt until you have receieved verification.

15. Continue collection attempts after receiving a cease communication notice - If you make a written request for the collector to cease communication, it can only contact you one more time, via mail to let you know one of the following: that further efforts to collect the debt are terminated, that certain actions may be taken by the collector, or that the collector is definitely going to take certain actions.

Steps to take if a debt collector violates FDCPA

If it is found that a debt collector has violated FDCPA norms, you have every right to legally penalize the debt collector in a state court or a federal court. You can sue a debt collector within one year from the time he violated FDCPA rules.

If you win the lawsuit, you can make claims for recovering damages you suffered due to debt collectors. In addition to this, you can also make claims amounting to USD$1,000.00. Attorney fees and court costs can also be recovered from the debt collectors if it is found that they have violated the FDCPA guidelines.

We get asked that question all the time, and for good reason!

To answer "What is included in my credit score?", let's look at what FICO says.  

Fair Isaac Corporation (FICO) calculates credit scores for the major credit reporting agencies like TransUnion, Experian and Equifax.

So how do they determine your score?

Basically, FICO uses 5 different categories by various weighted percentages:

PAYMENT HISTORY:   35%

Major categories:

• Past due accounts
• Bankruptcies
• Judgments
• Wage attachments
• Paid as agreed accounts

AMOUNTS OWED:   30%

• Amounts owing on all and specific types of accounts
• Number of accounts with balances
• Proportion of credit lines and installment loan amount used

LENGTH OF CREDIT HISTORY:  15% 

• Time since accounts opened
• Time since account activity

NEW CREDIT:   10%

• Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
• Number of recent inquiries
• Re-establishment of positive credit history following past payment problems

TYPES OF CREDIT USED:   10%

• FICO weighs different types of accounts and it is not very clear which type has more weight.
• Large accounts such as your home mortgage are not as adverse as say too many small credit cards with very high interest rates.

FICOtakes into consideration all of these categories, not just one or two.  In other words, no one piece of information or factor alone will determine your score.

A lender will look at other things when making a decision:

• including your income
• how long you have worked at your present job
• the kind of credit you are requesting.

Finally, your score considers both positive and negative information in your credit report.

For example, late payments will lower your score, but re-establishing a good track record of timely payments will raise your FICO credit score!

If you feel overwhelmed with too much credit or would like to know how to improve your credit score, please request our FREE, FINANCIAL ANALYSIS.

We will help you determine the best course of action with no obligation!

Call 877-492-4109 TODAY

photo by: SMJP

Coping with financial stress is not only possible, but may help put you back on the path of financial stability!

Let's face it, we are living in one of the most financial challenging times of our history.

• Unemployment is at an all time high
• There never seems to be enough money at the end of the month
• Retirement savings at an all time low

Someone has said that FEAR is really:

• False
• Evidence that
• Appears
• Real

Here are 3 Tips on how to cope with Financial Stress:

FIRST: As bad as your financial situation seems, it is probably not as bad as you think!

There was an article from ABC News that really nails the problem:

Don't scare yourself with "what if" scenarios. Don't tell yourself panic-inducing stories about the future, because you'll begin living in this catastrophe that hasn't actually happened. Instead, look to the past, at the stories of how you've rebounded before. We're in a time of incredible uncertainty but the future is never certain -- remember the tough times you've made it through before.

You can probably recall tough times before and somehow, someway, you made it!  YOU CAN DO IT AGAIN!

SECOND: Determine exactly where you are financially.

If you haven't done so, you need a very complete budget.

I know, things may seem so bad that you may be thinking, What's the use?", but you have to know! 

Remember?  FEAR =  False Evidence that Appears Real

Once you know how much you have coming in (net take-home from all sources) and how much you have going out, you can start to deal with the problem or at least free up some outgo that you most likely can live without each month:

• Daily Starbucks ($3 for a cup of coffee x 5 days x 4 weeks = $60)
• All the extra channels on your Cable TV (you may save $25-$35)
• Going out for lunch each day ($10 x 5 days x 4 weeks = $200 !!!)

And there is probably more, but you get the idea. 

You could free up a coupld of hundred dollars without too much pain or sacrifice!

THIRD:  DON'T BE TEMPTED TO USE (OR KEEP USING) YOUR CREDIT CARDS!

I know the rational behind using credit cards to make up for lack of income, but in the long run, you are just charging your way into a black hole that you may never recover from.

But if you have serious credit card debt, what can you do?

There are several programs available and you should request a FREE CONSULTATION to determine if one would work for you.

Learning how to cope with financial stress is not impossible.

Remember these 3 tips:

1. Your financial situation is probably not as bad as you think.
2. Find out EXACTLY where you stand financially.
3. Don't be tempted to use those credit cards!

Fianlly, if you are being harrassed by collectors, click below for free information:

photo by: anitafrances

If I just make the minimum payments due on my credit cards, will I ever pay them off?

Not likely!

The credit card industry has successfully created an "easy pay plan" for consumers that almost guarantees that they will never pay off their credit cards.

How?

By charging a very high interest rate and only requiring a very low (too low) minimum payment.

Example:

• Let's say you have a credit card with a balance of $3,000.
• The Annual Percentage Rate is 21%.
• The minimum payment this card requires is 2.02% of the balance, or in this case, ($3,000 x .0202) = $60.60.
• You make a payment of $60.60 to XYZ Visa.

Next month, you get your bill and unlike most consumers, you take a closer look and discover:

Previous Balance                                           $3,000.00

Interest and fees (for this example, we won't add any late or over-the-limit fees)                                        $     51.78

You mailed in $60.60 as a minimum payment   -$     60.60

Only to discover that your NEW BALANCE is       $2,991.18

Your right! Your balance went down by only $8.82!

What happened?

You just fell prey to the credit card industry's "scam" of letting consumers think that if they just make the minimum payment on their credit cards, they'll be OK.

Let's take a closer look:

Most credit cards use a formula that calculates the Average Daily Balance (ADB) and Daily Periodic Interest (DPI) to determine how much of your payment goes to INTEREST and how much actually goes to the BALANCE. There are other methods, but this is normal.

To determine your ADB and DPI:

If your total balance was $3,000, to find the Average Daily Balance (ADB), divide the total balance by the number of days since your last payment was applied. In this case:

              $3,000 divided by 30 days = ADB of $100

Now determine the Daily Periodic Interest (DPI) they charged you:

Take the Annual Percentage Rate (APR) or .21 and divided by 365 (days in a year of course).  In our case:

               .21 divided by 365 = .0005753 = DPI

Now find the Average Daily Interest (ADI):

To find out how much interest you actually paid per day:

  DPI .0005753   X  ADB $100  X   30 days =  ADI or 1.7259

Finally, to determine how much interest you paid:

      ADI 1.7259  X  30 days = $51.78 

                      SHOCKED!           YOU SHOULD BE!

It doesn't take a rocket scientist to understand that at this rate, it may take a lifetime to pay of this debt if all you do is make the minimum payment!

For FREE information about how to pay off your credit cards in a fraction of the time and save thousands of dollars in interest and fees, please click here.

If you are delinquent on paying your credit cards, you no doubt have learned how ruthless collectors can be.

Is there anything you can do about it?

YES!

The Fair Debt Collection Practices Act (FDCPA) was created to supposedly protect consumers from the actions of collectors.

According to the FDCPA:

• A collector may contact you in person (rare), by phone, mail, fax, or email (rare). 
• They are not to call before 8 am or after 9 pm. 
• They may contact someone else (friend, family member, neighbor), but again, according to the FDCPA, only to find out where you live, what your phone number is, or where you work.  They are prohibited from telling anyone else that you own money, but the phone call speaks for itself.
• They are not to call you at work, but we know they do.
• They are not to harass you by calling many times a day, over and over.  But, they do so by using a computer dialer, which although is annoying, is not illegal as they have a “business” relationship with you.

Do they, the collectors, abide by the FDCPA?  Rarely.

If you feel your rights have been violated, you can:

• Report your problem to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). 
• You have a right to sue a collector in a state or federal court within one year from the date you believe the law was violated.  Although this may be a lengthy and costly option, if you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages, employment or medical bills.  It may be in your best interest to seek the advice of an attorney if you decide to sue the collector.

One of the best things you can do to put an end to the harassment of collectors is to send them a cease and desist calling letter.

For a FREE REPORT on HOW TO STOP COLLECTION CALLS, click here.

If you would like more information about the FDCPA, click here.

It is one thing to "love thy neighbor", but it is quite another thing to share financial information with the folks next door.  However, we get calls from people all the time looking for help because their creditors have started calling their neighbors, parents, siblings etcetera. 

Can a debt collector legally call your neighbors?

Surprisinglygly, yes.  In some cases this practice is actually legal.  This is just another example of how collectors are getting more resourceful as more and more consumers become buried in debt. 

Federal law regulates only third-party bill collectors.  Calls to someone other than the debtor, such as a neighbor or family member, are allowed as long as collectors only verify the debtor's address, phone number or place of employment. 

What CAN'T debt collectors do?

Debt collection laws vary from state to state, but here are the basic rules that all collectors must follow.  These laws prohibit debt collectors from:

• Calling outside the hours of 8am and 9pm, threatening violence or using profane language
• Refusing to identify themselves, misrepresenting what is owed or falsely implying legal action has been taken
• Contacting debtors at work if it is possible to reach them at home in the evening
• calling more than once weekly at work or continuing to call the workplace if the debtor has told them not to

Are you being harrased by collection calls. If so, you may need the services of a professional debt relief agency.  Their solutions specialist can help you to determine whether you would benefit from a Debt Consolidation or Debt Settlement program.   

If you need help immediately, CALL NOW for assistance!

1-877-492-4109

With all the terminology that is being thrown around today, it is easy to understand how you might become confused with the difference between a Debt Consolidation Program and a Debt Consolidation Loan.  

Are they the same thing? NO

Debt Conoslidation Loan

• In general terms, a Debt Consolidation Loan refers to the action of combining several smaller debts into one larger debt. This usually creates a lower interest rate and a fixed monthly payment. However, it is important to fully understand the implications of choosing a debt consolidation loan to pay down your debts. Do you have equity in your home? In today’s market, housing values are falling. Is it wise to put your home on the line to pay off credit cards? Consider this, credit card debt is considered unsecured. This means that the only collateral underwriting your credit card balance is your signature. By using your home equity to pay off your usecured credit card debt you are turning it into secured debt.  If you get behind, you could lose your home.

• Second mortgages and home equity lines of credit usually carry long terms, so while your interest rate may be lower, you pay it over a long period of time. You may end up paying more over time.

Debt Consolidation Program

• Debt Consolidation Program Counselors negotiate with your creditors to accept a smaller monthly payment over 48-60 months. Most major creditors have pre-set agreements with Debt Consolidation Programs as to what percent of a balance they will accept at what interest rate. This payment and lower interest rate can save some you hundreds of dollars per month. Not only that, but with a level payment plan (paying the same payment each month) you can be debt free in four to five years You can always pay more if your circumstances change which will get you out of debt even sooner!

• Through a Debt Consolidation Program, your credit card accounts will be re-aged.  This simply means that your accounts are brought back to current status, so you are no longer behind. This will put a stop to the accumulation of late fees and will STOP COLLECTION CALLS! 

• Your Debt Consolidation Program Counselors will also arrange for one monthly payment to be withdrawn from your bank account automatically. At that time a pre-arranged payment is dispersed to each of the creditors in your Debt Consolidation Program. As you pay off your creditors, and work towards being debt free, the remaining credtiors get a larger payment, while your monthly payment remains the same.

Although these two options appear similar on the surface. There are some very key differences that you need to understand before making your final decion.  If you still need some assistance in deciding which is the right choice for you, our Debt Consolidation Counselors are happy to discuss your current situation and point you in the right direction.

It seems as if debt collectors can get away with about anything.

The Fair Debt Collection Practices Act is supposed to protect consumers, yet few people know anything about it.

Most collectors are trained professionals who will:

• call you several times a day
• call at early, late or even at work
• berate you for the debt you owe
• make false statements about their intention to bring legal action
• call family or neighbors about your situation

And these are just a few of the unlawful, yes, UNLAWFUL tactics used by most collection agents.

The Fair Debt Collection Practices Act (FDCPA) spells out what a collector may or may not do, and even though you do have rights and it may be possible to bring a lawsuit against the collector for violating those rights, most people just don't have the time or money to proceed.

So, what can you do? Here's some tips that will help:

1.  Stopping collection calls at you home

The FDCPA states that if a collector receives a letter requesting that all calls stop concerning the collection of your account, they must STOP!

To get more information on how or what to do, click here.

2.  Stopping collection calls work

Not only is getting collection calls at your place of employment embarrassing, it may also get you in real trouble with the boss!

You may be able to stop the calls at work by simply telling the agent that your employer does not permit calls to the employees.

Although this may work, you should also state in your letter (above) that this request also includes your place of employment.

HOWEVER, if you have not receive calls at work yet, then don't request it in your letter (above) as it tells the agency that you hav a job!  You don't really want them to know that for as long as possible.

3.  Most of the letters you receive from a collector state something like:

"unless you dispute the validity of this debt in the next 30 days, the debt will be deemed valid".

Even if you think the debt is valid, it doesn't hurt to request validation.

WHY?  Because the FDCPA states that if you send a written request for validation, the collector must cease all contact until the debt is validated by a statement or some other form of validation.

If you owd much more that you can repay, it may be time to seek professional help. 

Programs such as Debt Management, Debt Settlement, or even Bankruptcy may provide you with a way to finally put an end to the harassment from collectors and get completely out of debt once for all.

For a FREE, Financial Analysis, click here.

Need help putting a stop to collection calls?  Try this:

Although it is OK and may be advisable to speak with the collector at least once, don't forget that these are trained professionals whose only job is to get money out of you!

Briefly explain your circumstances, but don't be surprised when they seem like they don't care...THEY DON'T!

Ask the collector for a mailing address or fax number.  You probably won't get it as they know you are going to mail or fax a written request for them to stop calling.

According to the FDCPA, once you have mailed or faxed such a letter, they collector may only contact you one more time or they are in violation of Federal laws from the FTC.

In the letter, simply state that at this time, financial circumstances beyond your control make it impossible to pay anything on this debt.

It is also a good idea to state that if things do not improve, you are going to seek bankruptcy protection from creditors.

Make a copy of the letter for your records and mail or fax. 

Although it will cost a little, it is better to send the letter by registered mail so that you have proof that it was received.

As long as your account is still with the original creditor (Visa, Master Card, Citi, etc.) it may take a few weeks for the creditor to process and as a result, you may still get calls.

The best advice is to ignore the calls. 

If you have caller ID (and if you don't, you need to get it), don't answer any calls from callers you don't know.

If you can turn your ringer off and let all calls go to voice mail, then you can screen your calls. DO NOT RETURN ANY CALLS TO A COLLCECTOR, REGARDLESS OF WHAT THEY SAY!

If you would like more information on how to stop collector calls, request  the FREE GUIDE.