James wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, I can not pay my credit cards,because of sickness. I have a auto loan with Capital One and a credit card with them as well. If I just pay only my auto loan on time each month and stop paying on the credit card, can they touch my car because I pay one and not the other. James” Dear James, You are in luck. I can’t think of any past case when Capital One would repo a car with a Cap One auto loan because of a failure to pay the Cap One credit card . This is primarily because it is two different loans that are not tied to each other. Now, I have seen this happen with credit union debt when someone has a credit card , bank account and savings account all with one credit union. What some credit unions have said in the past is if a member defaulted on a credit card account that they would not release the lien on the car loan once it was paid off until the credit card account was paid off. Even though Capital One is now providing banking services , I’ve still only heard about this car and credit card problem with the credit unions. Thanks for the question. Steve Source: James Wants to Know If Capital One Will Take His Car If He Stops Paying His Credit Card Other Related Articles to Read A 12-Step Plan to Get Out of Debt Fast! Jeff Asks About Trick To Boast Credit Score. “Will It Work?” More Bad News For Nordstrom and Target Credit Cards Dayna Can’t Afford to Keep Her Car Or Get Rid Of Her Car, Even By Repossession MJ - “I’m Ill, I’ve Got Bills, And I Don’t Know What To Do”

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All I’ve got to say is, Good ! The plan would have done more damage than good and while some people might have hoped that the government would accept the creditor based plan, it was shallow and not enough to make a real difference to help people avoid bankruptcy and get out of debt. Recently I wrote an article, New Concerns About 40% Credit Card Debt Reduction Proposal and Banks Agree to Wipe Out Up to 40 Percent of Credit Card Debt But Watch Out where I laid out my concerns over this plan. Well as of today, the proposed 40% debt elimination plan is dead. Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt. The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don’t qualify for existing repayment plans. An agency official said the government objects to allowing banks to defer losses for several years on the forgiven debt, as would occur in accounting by lenders under the special program. The agency “does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us,” Timothy Long, senior deputy comptroller for bank supervision policy, said in a letter to the two groups dated Monday and made public Wednesday. “The timely identification, reporting and management of credit losses, along with adequate loan-loss reserves and capital levels, provide the public with … confidence” in the banking system, Long wrote. The Financial Services Roundtable, which represents more than 100 large banks, brokerage firms and insurance companies, will “continue to look for ways to help consumers in these extraordinary times,” said the group’s senior vice president, Scott Talbott. Forgive me for being cynical but this plan was never designed to “help consumers”. The plan helped creditors by making the plan non-binding on all creditors, letting banks not report huge losses in a timely manner, and punish the consumer with huge tax bills for the debt forgiven. It was a stinker from the word go and I’m glad it’s dead. Maybe now we can get to work on putting together some real solutions that truly are designed to help consumers. Source: Government Kills Debt Write Off And 40% Debt Elimination Plan Other Related Articles to Read New Concerns About 40% Credit Card Debt Reduction Proposal Banks Agree to Wipe Out Up to 40 Percent of Credit Card Debt But Watch Out. Searching For a Debt Consolidation Loan or Credit Card Counseling Service Tanisha Wants to Cash Out 401K To Get Rid Of Debts. April Wants To Know “As A Single Mom, How Do I Get Out Of Debt?”

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Terrance wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, First off I’m 20 years old and have debt problems worse than anyone I know. But besides that I have payday loans, banking accounts, cell phone, and one credit card. Some happened before I was even 18. But I talked to a friend of mine who said she repaired her credit herself by just writing letter and calling the companies and creditors that had her account and made offers and stuff. She also used the 7 year rule of having some of them remove. She said the only amount paid that was high was like $200.00. And also she in this program where they help you buy a house and rebuild your credit, they put like 4 thousand dollars down to the 2 thousand she put down. I just need help with getting my credit straight without bankruptcy. Please just give me some kind of advice Terrance” Dear Terrance, Thank you for writing to me for help. I know your money troubles feel like they are the worst, but you are not suffering alone. The most common question I am asked is if this is the worst case I’ve ever seen. And it does not take a high level of debt for it to make you feel bad. A relatively little amount of debt can make you feel hopeless and like you’ll never be able to get out of debt ever again. Any contract that you entered into before you were eighteen is potentially voidable since you were not of legal age to enter a contract. For those agreements I would suggest that you contact a local attorney for advice and assistance in approaching those creditors. Your combination of debt is what is troubling me. You’ve got the usual cast of high interest players in this mix. The payday loan , cell phone, bank accounts and credit card company can go after you hard to get their money back. From what you’ve said it sounds like your friend made offers to repay less than the total amount owed in order to show the account had been paid off. If these arrangements had been made with a collection agency, it is probable that these debts will resurface again. Collection companies are hired to collect money but can not contractually obligate their client, the original creditor. If you want to settle a debt for less than you owe, be sure to get the agreement in writing from the original creditor. If they don’t want to put it in writing then that should be a warning flag that it might not be a real promise on their part. What they may do is take your payment and then latter say that they never had an agreement with you and demand the rest of the money. I’ve seen it happen many times. If they do agree to put it in writing, be sure to keep that letter and proof that you made the payment in a safe place. You may need that evidence to show the creditor and credit bureaus that the account is now paid off. The seven year rule is a bit of a misleading trick. After seven years an old delinquent account will be removed from your credit report but that does not mean the debt has gone away or is no longer collectible. Waiting for a debt to be removed from the credit report and thinking that it has closed the door on that old debt, would be a mistake. The most effective way to put an old debt to rest is to pay it off or go bankrupt. Bankruptcy will legally eliminate debts for good and for all time. A debt discharged in bankruptcy is no longer collectible. The home purchase program your friend is in sounds very suspect. Unless this is a program run by a local government agency I would not trust anyone with what you’ve said. Anyone that is promising you to rebuild your credit and then makes you pay $2,000, even towards a house, makes bells and whistles go off in my head. I’d love to know more about that program and who is offering that. There is no way I would suggest that you participate in anything like that without giving me specific information so I can investigate it. You are just starting your financial life. You are still young and at your age, bankruptcy would not be the worst case scenario. If you did go bankrupt I would hope that you would learn from your financial mistakes and use that first-hand experience to be a better steward of your finances moving forward and for the rest of your life. Big hug. Steve Source: Terrance Says His Debt Problems Are Worse Than Anyone He Knows Other Related Articles to Read Debt is number-one problem for people in Wales Slowdown nails contractors: Dozens of Idaho small business owners The relative worth of one’s work Ed Is Scared But Courageous In The Face Of His Debt Teresa Writes In And Asks “What Should I Do Next?”

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Britain’s biggest banks will be offered £4 billion by Europe today to lend to small and medium-sized businesses, in a move that will restrict their ability to impose punitive interest rates. The banks, including Royal Bank of Scotland, HBOS, Lloyds TSB, HSBC and Barclays, will receive the money only if they agree to tight parameters set by the European Investment Bank (EIB) on how it is handed out. There is widespread political anger that banks are forcing businesses to renegotiate loans on harsher terms when they come up for renewal, despite large cash injections from government. Europe puts tight controls on £4bn bank offer Times Online, UK - 37 minutes ago At the same time the Prime Minister pledged to take action against companies that force people out of their homes for trivial amounts of credit card debt . … Click Here for totally free debt help, advice and answers . Read the rest here: Europe puts tight controls on £4bn bank offer Other Related Articles to Read Consumers Feel the Next Crisis: It’s Credit Cards Thrift Is the New Fashion Searching For a Debt Consolidation Loan or Credit Card Counseling Service Outrage Over Credit Cards with 222% APR Hardships Past Haunt Europe’s Search for Financial Safety

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Consumer groups have long complained that credit card issuers push cards onto people who don’t need them or can’t afford them. They say that rising credit card defaults - just like mortgage defaults - are largely the fault of banks who lent to risky borrowers. Innovest estimates that about 30 percent of Bank of America’s credit card loans are to subprime borrowers - second only to the failed Washington Mutual Inc., which had almost half of its credit card loans held by subprime borrowers. Innovest also estimates that more than half of Bank of America’s credit cards are high-limit cards - second only to American Express Co. (Innovest classifies high-limit cards as those with lines of more than $10,000.) Nishikawa says that combination could prove toxic for Bank of America, which may have “lent more than (borrowers) can be expected to pay back.” Bank of America’s charge-offs, or loans it doesn’t expect to collect on, increased to 6.14 percent of all credit card loans, or $1.24 billion, in the third quarter. That’s up from 4.61 percent the year before. Credit cards face bad debt SunJournal.com, ME - 1 hour ago Asked in a recent TV interview if credit card debt would be "the next shoe to drop" for the banking industry, Lewis replied: "It, in some ways, already is," … Click Here for totally free debt help, advice and answers . Read the rest here: Credit cards face bad debt Other Related Articles to Read The relative worth of one’s work As Economy Slows, Lenders Begin to Curb Credit Cards Hardships Past Haunt Europe’s Search for Financial Safety Humor: US Solves Credit Crisis, Credit Cards Slowdown nails contractors: Dozens of Idaho small business owners

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This weeks personal finance brain trust question was: Which U.S. presidential candidate will most likely do more to help debtors and/or reform current bankruptcy regulations? Feel free to elaborate. WC - A 27-year-old writer living in Chicago and writing about personal finance through The Writer’s Coin . This question seems like a veiled attempt at asking “who are you voting for?” But just in case it isn’t, here’s what I think: whoever winds up winning this election will have to—at some point—say something to the effect of “Things are a lot rougher than we thought, and everything I said during the campaign has become obsolete. Therefore, we can’t do everything we promised.” Unfortunately, candidates can’t really tell the truth about what they’re thinking when really bad things happen. Both candidates knew that they would have to compromise their plans due to the economic downturn we’re going through, but they can’t say that because the opponent would slam them, attack them, etc. Either way, whoever wins will have a lot more work to do and more restrictions to follow through on what they’ve promised. Patrick Bryan - Living in Northern Ireland, Patrick helps people in a very different environment and economy but yet, mush is universal and much is the same. Visit Patrick’s Northern Ireland blog on debt . As both an outsider to the US elections and a lifelong non-voter I am probably not qualified to give a response to this question however my instincts say that if one candidate is going to do something for debtors, it is Obama. Obama voted against the 2005 Bankruptcy Bill which was seen as removing some key rights for debtors and favouring the banks instead. McCain supported the Bill. Obama is a supporter of the Credit Card Bill of Rights and appears to place this issue high on his political agenda. McCain strikes me as being part of the establishment, conservative and change-resistant, and for that reason I believe that he will not want to rock the boat too much if he is voted into office. If Obama is elected however I would certainly expect his proposals on bankruptcy reform to become watered down; members of his own party for example helped pass the 2005 Bankruptcy Bill, and any legislation he proposes will almost certainly be opposed by lobbying from the banks and other large creditors (remember the government is a creditor too, i.e. the IRS). We are finding in the UK that there is a lot of inertia surrounding proposals to reform our bankruptcy system and we are still waiting on draft legislation to be enacted which were put forward by the current government back in 2005. Antisay - This blog is mainly about finance and self-improvement; I am in a constant race to become a better me and this blog is all about that sort of lifestyle. Visit this site . The truth is that no candidate will help debtors. We could spend hours hashing out the different tax policies of each candidate, debate over who has the better ideas, or ague whether smaller or bigger government would be better for us as a society right now…. When it boils down to it, however, the truth is that no candidate - no president - will ever fix a debtor’s life or financial situation. It seems a majority of US citizens hold the president or the government responsible for fixing their lives, when in reality that is the responsibility of the individual. Reforming bankruptcy regulations or changing lending laws will not solve many problems… they may ease some people along, but the fact remains that those in trouble will always be in trouble until they get themselves out. I have my opinions on who should win, but voting one way or another will never improve or lessen one’s chances of getting out of debt. With a lot of hard work, a budget, and a heck of a lot of patience, ANYONE can get out of debt. It doesn’t matter what your taxes are, what rights credit cardholders have, or if we have public healthcare or not. Work at it and you’ll get there. Gerri Detweiler - She has been helping consumers find solutions to their credit problems for more than twenty years. Her newest book is Stop Debt Collectors: How to Protect Your Rights and Resolve Your Debts . She serves as Credit Advisor for Credit.com. In my view, it is pretty clear which candidate would be more helpful to debtors: Barack Obama. He voted against the Bankruptcy Reform Act in 2005 (which took a lot of courage, as many from both parties voted for it), and he has spoken out numerous times in favor of bankruptcy reform to help alleviate the current housing crisis. John McCain appears to favor the type of reform we’ve seen implemented so far: measures that favor Wall Street but have yet to have a significant or direct impact on Main Street. Steve Rhode - A personal finance blogger and founder of the Myvesta Foundation, a global scoial enterprise that helps people find solutions for money troubles. You can ask Steve your debt related question through GetOutOfDebt.org and he’ll help you for free. Having lived through and closely watched the bankruptcy reform act of 2005 I will admit that I have no faith in the Bush administration to do what is best for people with financial troubles. I have also been very disappointed by the lack of effort of the current Republican ticket of McCain-Palin to speak specifically about reversing the senseless bankruptcy reform of 2005 which only hurts consumers. Just recently there was a great article about the farce that the bankruptcy reform created . The voting record for the Bankruptcy Reform Act of 2005 , bill number S 256, was: McCain: Yes Obama: No I was actually surprised to see the list of those that voted against the bill, all democrats. Akaka (D-HI) Boxer (D-CA) Cantwell (D-WA) Corzine (D-NJ) Dayton (D-MN) Dodd (D-CT) Dorgan (D-ND) Durbin (D-IL) Feingold (D-WI) Feinstein (D-CA) Harkin (D-IA) Kennedy (D-MA) Kerry (D-MA) Lautenberg (D-NJ) Leahy (D-VT) Levin (D-MI) Lieberman (D-CT) Mikulski (D-MD) Murray (D-WA) Obama (D-IL) Reed (D-RI) Rockefeller (D-WV) Sarbanes (D-MD) Schumer (D-NY) Wyden (D-OR) On the Obama-Biden side I am both encouraged and disappointed. I’m disappointed that Joe Biden represents Delaware, the home of some of the most offensive banks against consumers and that he voted to go along with the bankruptcy reform act debacle. However, Barack Obama has a long and clear record of standing up for consumers, speaking about about credit card company tactics and rocking the boat for positive change in consumer protection to defend consumers from abusive lending practices. As I said previously : With so little time before the next presidential election it is a good time to take a quick look at some important issues that are impacting the wallets and purses of the American consumer. Under the Bush administration consumers were significantly harmed by unreasonable and unfair bankruptcy reforms that clearly helped big business, hurt consumers and only made bankruptcy more expensive for the same people that still need to file for protection. A future administration for change and putting people first should strongly look at repealing or enacting legislation to turn back the hands of time to allow consumers in an ever-tightening economy, to have more reasonable access to bankruptcy. The Obama-Biden ticket has promoted a Credit Card Bill of Rights for some time now and it would be beneficial to see the McCain-Palin ticket pledge to work diligently to put similar protections in place. In my research for my article on John McCain’s Bad Credit Card Rates , I also found the following information: It appears that Barack Obama has a very good grasp on the problems faced by people in America today that are carrying credit card debt. An article in the Chicago Sun-Times reveled a number of comments that Senator Obama made regarding credit card debt. “For too long, credit card companies have been using unfair and deceptive practices to trick Americans into signing agreements they can’t afford,” Obama said. I agree. Obama said he knew only too well how easy it was to get caught by deceptive credit card deals: “In the interest of full disclosure, I’ve gone through this. I’ve had credit cards.” Wouldn’t it be nice to have a President that actually lived through credit card debt and cares about all the consumers in financial pain? According to the Bankruptcy Law Network : Senator McCain called the bill, “…an important step toward a fair and balanced approach to restoring personal responsibility to our federal banking system.” Senator Obama did state at a January, 2008 debate, in response to a question about the 2001 and 2005 bankruptcy bills, “I opposed them both. I think they were bad ideas, because they were pushed by the credit card companies, they were pushed by the mortgage companies, and they put the interests of those banks and financial institutions ahead of the interests of the American people. And this is typical.” So based on the previous record of Barack Obama, the hope for change, the reality of republican erosion of consumer rights on their watch, and the need for greater protections for consumers from unfair financial practices, I think any debtor looking for a positive change on consumer debt issues will find more chance of effective leadership on these issue from Barack Obama. Source: Which Presidential Candidate Is Better For Debtors? Other Related Articles to Read Would You Like More Credit Card Rights If It Means Credit Cards Are More Expensive? John McCain Has Bad Credit Card Rates The American Consumers Nuclear Winter The Personal Finance Brain Trust Tackles - Trying to Make Ends Meet But Still In Trouble Tithing, Saving and Getting Out Of Debt - The Personal Finance Bloggers Brain Trust

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Credit repair, or how to make your credit report lie, is not something you want to get involved with. It is much better for you to focus on dealing with a bad credit issue and resolve it, focus on rebuilding your credit report and credit score and just don’t waste one minute or one penny on paying for credit repair. Even now I still meet people that pay $49 a month for credit repair services and I see the signs along the local highways, still. I don’t know how more clearly I can say it, credit repair is a waste of time and money. Unfortunately, it still appears that most of the scam financial service business are located in Florida. Nice weather to scam people in I guess. Steve The Federal Trade Commission and 24 state agencies today announced a crackdown on 33 operations that deceptively claim they can remove negative information from consumers’ credit reports, even if that information is accurate and timely. In the seven FTC actions announced today the Commission seeks to halt the defendants’ allegedly unlawful business practices, prohibit further violations, and make them pay consumer redress and give up their ill-gotten gains. In addition, the FTC announced three related credit repair cases earlier this year. ‘Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying - plain and simple,’ said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. ‘Under federal law, accurate, negative information can be reported for up to seven years, and some bankruptcies can be reported for up to 10 years.’ In response to thousands of complaints from consumers throughout the nation, the FTC launched ‘Operation Clean Sweep’ with 24 state agencies in 22 states. In the cases announced today, the Commission charged seven operations with violating the FTC Act and the Credit Repair Organizations Act (CROA) by making false and misleading statements, such as claiming they can substantially improve consumers’ credit reports by removing accurate, negative information from their credit reports. The agency also alleged that the defendants violated the CROA by charging an advance fee for credit repair services. The 26 state actions include alleged violations of state laws and the CROA. According to complaints filed by the FTC: Nationwide Credit Services, Inc. and James R. Dooley , based in Florida, advertise their credit repair services on www.ehappyhour.com and in the Yellow Pages, stating, for example, that bankruptcies, judgments, slow pay history, repossessions, and collection accounts ‘CAN BE LEGALLY ERASED!’ The defendants charge from $300 to $1,000, including an advance fee ranging from $75 to $150, and a monthly fee that they often debit from consumers’ bank accounts. After paying the fees, consumers find that the defendants rarely, if ever, deliver the promised results. In many instances, they take consumers’ money without providing any services. Consumers often find their cancellation requests ignored, and their refund requests are almost always denied. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Middle District of Florida. Clean Credit Report Services, Inc., Ricardo A. Miranda, Daniel R. Miranda, and Ruthy Villabona , based in Florida, advertise on radio, television, and www.ccrstoday.com, which has testimonials, such as one purportedly from an Atlanta woman, stating, ‘. . . When I lost my job and simply didn’t pay my credit cards and when I needed to get my car loan they said I needed at least a 600 credit score but I had a 480. I got into the CCRS club and did what they told me to do . . . When I pulled my report online I realized that I had a 621. I couldn’t believe this really works.’ Consumers who responded to the defendants’ ads on syndicated radio talk shows were told that the defendants would help remove all the negative remarks that appear on their credit, and that even current debt could be removed. Once consumers pay $400 in advance for services, the defendants often debit the money from their bank accounts before receiving a signed contract, and then do little, if anything, to fulfill their promises. When consumers reach them to complain, they’re told a variety of excuses, and those who persist are sometimes hung up on, put on hold, or ignored. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Southern District of Florida, Miami Division. The FTC thanks the Better Business Bureau of Southeast Florida for its invaluable assistance. Successful Credit Service Corporation, also doing business as Success Credit Services, and Tracy Ballard, also known as Tracy Ballard-Straughn , based in California, promote their credit repair services primarily through appearances at seminars offering real estate investment or other business opportunities. They also promote themselves via audio podcasts on third-party Web sites and through their Web sites, www.successcreditservices.com and www.successfulcreditservices.org. They claim to have special relationships ‘with every creditor, collection company, public records provider and credit bureaus,’ and that because of this, they can perform ‘hard’ or permanent deletions of all kinds of derogatory information from consumer’s credit reports. Consumers typically must pay advance fees ranging from $3,000 to $4,000 per person. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Central District of California, Western Division. The FTC thanks the California Attorney General’s office for its invaluable assistance. Advantage Credit Repair LLC and Mark D. Solomon , based in Illinois, advertise on www.myadvantagecredit.com and Yellow Pages ads, stating, ‘We would never charge a large fee up front, or make you wait a long period of time to refund your money if we do not get results. You WILL see results in 60 days, or your money will be refunded in full . . .’ The defendants charge $495 per person and $665 for a couple, and they require $219 or $269, respectively, in advance. Refund requests are almost always denied. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division RCA Credit Services, LLC, Rick Lee Crosby, Jr., and Brady Wellington , based in Florida, advertise on www.RCACredit.com and www.RCAcreditservices.com. Their ads state, ‘Boost Your Credit Score Into The 700s’ in as little as 30 days’ and claim that RCA can remove ‘ANY or ALL Negative Accounts From Your Credit Report .’ They state that a credit expert will ‘coach you on ways to remove negative remarks and unpaid debts from your credit report while adding new positive reporting accounts to your credit file.’ The defendants charge from $500 to more than $3,000, and they require at least partial payment in advance of providing any services. In many instances, the defendants allegedly provided consumers no services at all. These defendants are also charged with violating the CROA by failing to provide, before contracts are signed, a written statement of ‘Consumer Credit File Rights Under State and Federal Law;’ failing to include in their consumer contracts conspicuous statements about consumers’ right to cancel without penalty or obligation within three business days; and failing to provide a written ‘Notice of Cancellation’ form. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Middle District of Florida. Latrese & Kevin Enterprises, Inc., also d/b/a Hargrave & Associates Financial Solutions, Latrese Hargrave, also known as Latrese V. Williams, and Kevin Hargrave, Sr. , based in Florida, advertise on www.hargraveandassociates.com and www.helpmycreditnow.com, and on radio stations with rhythm & blues, hip-hop, and gospel formats. They charge $250 to $270 per person and $450 per couple, half or all of which they require in advance. In a radio script, the defendants state, ‘They specialize in erasing bad credit! Hargrave & Associates covers all three major credit bureaus, slow pays, charge-offs, repossessions can be erased for two-hundred, fifty dollars.’ Also, on www.hargravecard.com and in radio ads, the defendants offer an advance-fee credit card , for $100 to $300, claiming that applicants will be approved for a guaranteed credit limit ranging from $500 to $10,000. These defendants are also charged with violating the Telemarketing Sales Rule by requesting or receiving a fee in advance of consumers obtaining a credit card when the defendants have guaranteed or represented a high likelihood of success in obtaining or arranging for the acquisition of a credit card . In addition, they are charged with violating the FTC Act by falsely representing that consumers will receive a credit card after paying a fee. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Middle District of Florida. ACE Group, Inc., also d/b/a as American Credit Experts, Inc., The Ace Group, Inc., The Ace Group, and ACE; Legal Credit Repair Center, Inc., also d/b/a LCRC, Michael Singer, Melvin Kessler, and Gerald Roth , based in Florida, advertise on www.aceintake.com, www.foryourcredit.com, http://www.helpformycredit.com, www.helpmycredit.com, and pop-up Internet ads. One ad states, ‘ . . . ACE has developed a methodology which starts to show results in as little as 60 days.’ In telephone calls responding to the ads, FTC investigators posing as consumers were told, ‘. . . everything surrounding your bankruptcy will be removed from your credit report . . .’ and late payments ‘are easy to remove.’ The defendants typically charge $39.95 to $59.95 initially, then $59.95 per month for their promised services, which they indicate may take up to six to eight months. They send the major credit reporting agencies repeated dispute letters on consumers’ behalf, with vague statements about each disputed debt or bankruptcy record, but with no further explanation or documentation. The defendants dispute items repeatedly, even after the credit bureaus have verified them. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Southern District of Florida. Operation Clean Sweep also includes three FTC cases announced earlier this year: Home Buyers Consulting Network, Inc. , Payneless Credit Repair, LLC , and the husband and wife credit team of Lee Harrison Credit Restoration (see press releases dated May 22, July 17, and September 10). State law enforcement efforts involved the attorney general offices in Arkansas, California, Colorado, Florida, Illinois, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, and West Virginia; the justice departments of North Carolina, Oregon, and Wisconsin; Idaho’s Department of Finance; Louisiana’s Office of Financial Institutions; Vermont’s Department of Banking, Insurance, Securities & Health Care Administration; and Wisconsin’s Department of Financial Institutions. Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law. Avoid any credit repair company that will not tell you your legal rights and what you can do, yourself, for free. Avoid any credit repair company that tells you not to contact a credit reporting company directly. Avoid any credit repair company that advises you to dispute all of the information in your credit report . Avoid any company that suggests creating a ‘new’ credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number. That is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution. The FTC advises that only time, a conscious effort, and a personal debt repayment plan can improve your credit report . The first step is to learn what information is in your credit report . If you find errors or mistakes, federal law gives you the right to have them corrected - free of charge. Federal law requires that the nationwide consumer reporting companies - Equifax, Experian, and TransUnion - provide you with a free copy of your credit report once every 12 months, if you ask for it. Other Related Articles to Read Christy Asks “Why Should I Even Bother With Getting Out of Debt?” The best way to get out of debt when you can’t stay current Robert Wrote “I Do Not Know Where To Start Other Than I Am in Debt” Despite What They Say This Is Not The End Of Subprime Loans Jennifer Says “We Have Accumulated So Much Debt And Bad Credit. What Do We Do?”

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A recent article in the Penn State newspaper disturbed me greatly. Surveys are indicating that students would rather go for a bigger paycheck over happiness, in order to deal with debts. It is one thing to seek a bigger paycheck over happiness but what these young students don’t realize is that dissatisfaction with your job easily leads you to excessive debt. When people don’t like their jobs they tend to treat themselves more with fancy toys, new shoes, or luxury trips to reenergize themselves. More self-medicating expenses lead to a lower quality of life if the job does not come with a seven figure paycheck. Student loans take years to pay back but the reality of remaining in a job that brings you no satisfaction and joy are unrealistic. Sooner or latter many people learn that slaving away at a job you hate just to pay the bills is not a good way to spend the life you’ve got. Michael Berkowitz is paving his own road to finding the perfect job: sacrifice happiness for a high salary. Berkowitz (junior-marketing management) said he is motivated by money, and to him, satisfaction isn’t the most important aspect of a job. Berkowitz said he has plans of becoming a lawyer and hopes to own his own law firm. He said being his own boss and making a huge salary would keep him happy, regardless of the job. Berkowitz isn’t alone. A study released last month by Experience, Inc., a Boston-based career services company, shows about 50 percent of students are dealing with school loans by seeking careers that offer large paychecks but maybe not pleasurable jobs. “In order to be successful in this world, you have to make money,” Berkowitz said. “Money characterizes the most powerful people in the world. Look at Donald Trump.” The study showed that 50 percent of students would accept jobs for money over self-fulfillment. Student loans influenced 27 percent of students to choose their career path based on post college debt, according to the study. “In our society, a lot of people are motivated by money,” Rayman said. “Students are predisposed to look for a career where they can make more money to pay loans off faster.” Rayman said jobs like banking and consulting, which are associated with luxurious lifestyles, are influential to students seeking money. He said engineering and technical jobs are in demand and have a strong influence because of the higher starting salaries. Dennis Chow (senior-business management) said he is not exactly sure what he wants to do after graduation, but said students mess up by going for nice cars and plasma TVs right after graduation instead of handling their post college debt. “Don’t engage in unnecessary spending,” Chow said. “Give up the fun time for now and do it later.” Chow also said he is scared of the current financial crisis and isn’t sure what the real world has to offer. Because “loans are a big thing,” he said he would accept a higher paying job he didn’t enjoy to get out of debt. “I’d be willing to put up with a short-term job I disliked to pay off my college debt,” he said. “Most of my day is going to be at this job,” he said. “So I don’t want to be there if its long term.” Source: The Daily Collegian Other Related Articles to Read “I Have Three Degrees But I’m Broke And Miserable” How Do I Get Out of Debt? Robert Says “Please help. I never knew financial burdens can cause so much stress.” Lowen Wants to Know “Can I Budget My Way Out Of Debt?” Richard Writes In “How Do I My Share Of Government Money To Get Out Of Debt?”

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Well the September foreclosure figures are out from RealtyTrac . And while we can look at the big, really big number and compare it to foreclosures a year ago that does not give a real understanding of the fear and loss experienced by over 81,000 families that month. Maybe there is some hope headed down the road for homeowners that will soon be heading into trouble. The FDIC (Federal Deposit Insurance Corporation) is making grunting noises to the Senate Banking Committee and the Treasury Department that a way needs to be found to prevent avoidable foreclosures . Delinquent mortgages, like credit card defaults, do not have to turn into a financial train wreck if lenders would simply evaluate a consumers situation and modify the credit card balance or mortgage terms to fit within the new circumstances. RIght now homes are being foreclosed on and many are headed into bankruptcy and neither of those situations needed to come to that end with a little cooperation from lenders. Shelia Bair, the head of the FDIC recently said that “Loan guarantees could be used as an incentive for servicers to modify loans,” Bair said. “Specifically the government could establish standards for loan modifications and provide guarantees for loans meeting those standards.” That way, she said, “unaffordable loans could be converted into loans that are sustainable over the long term.” That is good news and I hope that it actually happens. Other Related Articles to Read If You Live In The Real America, Be Patriotic. Go Shopping And Run Up Credit Card Debt. I Couldn’t Help Myself, I Had to Look At The Local Foreclosures Clinton Wants to Know “Am I Doing The Right Thing By Repaying My Debt?” Josy Writes “My Real Estate Business Is Going Down The Drain” Karen Writes In “Ex-Husband Isn’t Paying The Bills and He’s Trashed My Credit. What Can I Do to Repair It?”

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Now that banks have stopped their rampant lending to consumers what should we expect next? Well let’s not be surprised if we see an increase in payday loan or title loan activity. A payday loan is an unsecured, short-term cash advance until your payday. Payday loans are typically hyped with payday lenders saying things like: Personal Cash Advance is the fastest way to obtain secure, online cash advance and payday loans. Signing up and qualifying for a payday loan is quick and easy, and in many cases there are no documents to fax depending on the lender that accepts your loan data. Once a lender approves you for a cash advance, they’ll electronically deposit the payday loan amount directly into your checking or savings account. Our service providers offer flexible payment options and a discreet service that gets you the cash you need right now. It’s that easy, so why wait to get that cash advance? So why will payday loan activity increase? Well just because banks stop or slow down lending it does not mean that the obligations of consumers stops. And in the absence of first level lenders, consumers in need will turn to Back Street lenders like payday loan shops, pawnshops, and check cashing joints. These financial service companies are typically maligned by Main Street lenders but no matter what you think a payday loan outfit does serve a purpose. Granted, that purpose might be to be there to lend when others won’t, that does not mean that the need does not exist for the consumer to borrow funds for a short period of time. One thing that you’ll never see in the payday loan world are collateralized debt obligations (CDO), special investment vehicles (SIV) or a subprime meltdown. It could easily be argued in light of recent banking and investment house failures that payday lenders behave in a more prudent fashion. Some states and localities are trying to shut down payday loan providers. If they are successful the only thing that will happen is that the subprime segment of the population that typically uses payday loan shops will not have them to turn to when their banks have forsaken them. Payday loan providers would not exist unless there was a need, a desire and a customer base that was not otherwise served. Granted that customer base is closer to the poverty line than Main Street lenders would touch but just because the clientele is less credit proper does not eliminate their need for quick access to cash. Can payday loans be abused, yes. Can mortgages be abused, yes. Can a payday loan be expensive, yes. Can a credit card charge high fees and interest, you bet. Eliminating the payday loan does not eliminate the underlying reasons why a segment of the population uses payday loans . In fact, the elimination of payday lenders may simply lead that same group of consumers to use criminally based lenders, and I’m not talking Bear Stearns. Other Related Articles to Read Teresa Writes In And Asks “What Should I Do Next?” Samantha Says “My Husband And I Are Young And Don’t Want to File Bankruptcy. What Do We Do?”

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Now that banks have stopped their rampant lending to consumers what should we expect next? Well let’s not be surprised if we see an increase in payday loan or title loan activity. A payday loan is an unsecured, short-term cash advance until your payday. Payday loans are typically hyped with payday lenders saying things like: Personal Cash Advance is the fastest way to obtain secure, online cash advance and payday loans. Signing up and qualifying for a payday loan is quick and easy, and in many cases there are no documents to fax depending on the lender that accepts your loan data. Once a lender approves you for a cash advance, they’ll electronically deposit the payday loan amount directly into your checking or savings account. Our service providers offer flexible payment options and a discreet service that gets you the cash you need right now. It’s that easy, so why wait to get that cash advance? So why will payday loan activity increase? Well just because banks stop or slow down lending it does not mean that the obligations of consumers stops. And in the absence of first level lenders, consumers in need will turn to Back Street lenders like payday loan shops, pawnshops, and check cashing joints. These financial service companies are typically maligned by Main Street lenders but no matter what you think a payday loan outfit does serve a purpose. Granted, that purpose might be to be there to lend when others won’t, that does not mean that the need does not exist for the consumer to borrow funds for a short period of time. One thing that you’ll never see in the payday loan world are collateralized debt obligations (CDO), special investment vehicles (SIV) or a subprime meltdown. It could easily be argued in light of recent banking and investment house failures that payday lenders behave in a more prudent fashion. Some states and localities are trying to shut down payday loan providers. If they are successful the only thing that will happen is that the subprime segment of the population that typically uses payday loan shops will not have them to turn to when their banks have forsaken them. Payday loan providers would not exist unless there was a need, a desire and a customer base that was not otherwise served. Granted that customer base is closer to the poverty line than Main Street lenders would touch but just because the clientele is less credit proper does not eliminate their need for quick access to cash. Can payday loans be abused, yes. Can mortgages be abused, yes. Can a payday loan be expensive, yes. Can a credit card charge high fees and interest, you bet. Eliminating the payday loan does not eliminate the underlying reasons why a segment of the population uses payday loans . In fact, the elimination of payday lenders may simply lead that same group of consumers to use criminally based lenders, and I’m not talking Bear Stearns. Other Related Articles to Read Teresa Writes In And Asks “What Should I Do Next?” Samantha Says “My Husband And I Are Young And Don’t Want to File Bankruptcy. What Do We Do?”

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If you're new here, you may want to subscribe to my RSS feed right now, before you forget, to get the latest posts. Thanks for visiting! I came across an article by Ann Woolner, “Buy a Beach House for Shelter When Going Bankrupt” that was absolutely spot on. Ann does an awesome job ...[Read More]

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The is no doubt that payday lenders have a bad name, they probably rank right around used car sales people when it comes to trustworthiness and believability but don’t strike me with lightning when I say, there is a place for payday lenders. I admit I was a payday lender at one time. Back ...[Read More]

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In an article Capital Feels Its Way on Huge Rescue Plan, Eyes on Nov. 4 one paragraph jumped off the page at me. And voters might well wonder why perhaps a half-trillion dollars — about the same amount spent so far in Iraq — is suddenly available to help Wall Street when promises to address ...[Read More]

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With so much uncertainty about the stability of banks these days in the United States it is important to know that FDIC insurance does protect you up to certain amounts. Deposits up to this amounts are protected and guaranteed. Pay attention to that the deposit insurance limits are so you ...[Read More]

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