Debt

Woman Sues Debt Collector for Stalking Her on Facebook

Linda Doell Nov 19th 2010 @ 7:00PM EST Filed Under: Debt, Consumer Ally

Melanie Beacham had received letters, phone calls and a courier from the auto loan debt collector, but when an agent contacted her family and friends through Facebook, she decided to fight back.

Beacham sued MarkOne Financial LLC of Tampa, Fla. for harassment and inflicting emotional distress and has asked a Florida court to bar the agency from contacting her loved ones through the social media site in what the lawsuit said is "a campaign to embarrass, intimidate and harass her into paying an alleged debt." The lawsuit seeks $15,000 in damages and also seeks punitive damages.

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Feds Issue Rule to Protect Homeowners from Mortgage Relief Scams

Jorgen Wouters Nov 19th 2010 @ 1:45PM EST Filed Under: Borrowing, Debt, Family Money, Fraud, Consumer Ally, Mortgages

Homeowners struggling to make mortgage payments will soon be protected by a new Federal Trade Commission rule banning providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners receive a satisfactory written offer from their lender or loan servicer.

The Mortgage Assistance Relief Services (MARS) Rule was issued in response to
the mortgage relief scams that have mushroomed during the ongoing mortgage crisis.

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Feds Disconnect Robocall Ring that Took Millions

Jorgen Wouters Nov 15th 2010 @ 3:00PM EST Filed Under: Debt, Fraud, Consumer Ally, Credit Cards

An international robocall ring that allegedly fleeced almost 13,000 consumers out of $995 apiece with empty promises to reduce their credit card rates has been shut down by a federal court at the request of the Federal Trade Commission.

The case is part of the FTC's continuing crackdown against fraudsters taking advantage of financially-troubled consumers, which in the past year has included action against marketers of worthless credit card interest rate reduction services.

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Payday Loans: Other Places to Turn to for Fast Cash

Geoff Williams Nov 12th 2010 @ 2:00PM EST Filed Under: Banks, Debt, Personal Loans

Payday loans can wreak havoc on a person's financial life. These loans carry sky-high APRs and the penalties for late or missed payments can be extreme. Many consumers, who turned to payday lenders in a time of need, later find themselves worse off than when they started. In this series, WalletPop takes a look at the payday lending industry and some of its players: those who dole out the loans, the regulators who try to rein them in and the people who desperately take out these loans hoping for some relief. This is the third installment of our payday lending series. You can read the first part of this series here.

For people with bad credit, it often seems as if a payday lender is the only place to turn to for fast access to cash. In the past, if you truly wanted or needed a few hundred dollars in a hurry, and didn't have the credit record to convince a bank or credit union that you deserved a loan, there were few alternatives.

Luckily, things are starting to change. Here are some of the alternatives to payday loans that don't require you to shake down your grandmother in order to afford paying them off. Just keep in mind that because there is an alternative doesn't mean it's a good alternative. Be sure to read the fine print in any lending agreement before you sign.

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Is the Personal Loan Making a Comeback?

Geoff Williams Nov 12th 2010 @ 12:00PM EST Filed Under: Banks, Borrowing, Debt

Once upon a time, if somebody needed money, they didn't turn to a credit card or opt for a home equity loan. And because payday lending stores didn't exist, they didn't go there, either. Instead, for much of the 20th century, if you needed extra money you went to the bank and asked for a loan -- and you often got one.

Then a not-so-funny thing happened: During the 1990s, banks started discovering that home-equity loans were a much more profitable venture for them. So they stopped advertising personal loans, and the public largely stopped asking for them, happy to feed on their diet of the more flexible home-equity loans and credit cards, the use of which rapidly grew throughout the 1990s and 2000s.

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How Do I Handle a Bankruptcy Discharge: Help Me, WalletPop!

Jean Chatzky Nov 12th 2010 @ 8:00AM EST Filed Under: Credit, Debt, Bankruptcy, Consumer Ally

If you're having a problem with a business, Consumer Ally can help. Write us at HelpMe@WalletPop.com.

Q. I'm trying to get some consumer information and thought you might be able to help me. Long story short: I have a personal bankruptcy that was discharged on Jan. 8, 2001. I know it has been on my credit record all this time and should, as I understand, drop off the credit records after 10 years ... which would be January 8, 2011. My question is this: Should I send a certified letter with a copy of the discharge to all three reporting agencies explaining what I've just told you and not just rely on their "alertness" to see that it drops off?
Ron Chappell

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Do credit card hardship programs really work?

Martha C. White Nov 10th 2010 @ 4:00PM EST Filed Under: Debt, Recession, Credit Cards

If you're struggling to pay your credit card bills each month, getting help from a credit card hardship program may sound like the perfect solution. But getting into one and reaping the benefits are easier for some cardholders than others, and there are myriad factors that come into play. Still, it's an option many are turning to in these tough economic times: A Bank of America modified $10 billion in consumer credit last year alone.

WalletPop investigated these programs and found that while most of the major card issuers offer hardship programs, the terms and conditions can vary greatly. We also spoke with people who've been through the system like Kira Botkin (pictured right), to find out just how helpful -- or unhelpful -- these programs were for them.

What we found: Credit card hardship programs can be a lifesaver, but you need to know what you're getting into before you say "sign me up." Here's how these programs worked for Botkin and others.

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Feds propose new rules on debt collection from the deceased

Jorgen Wouters Nov 10th 2010 @ 3:20PM EST Filed Under: Debt, Consumer Ally

The Federal Trade Commission wants to update the rules on how debts from the deceased are collected, after some states allowed other people besides spouses to pay creditors.

The amended policy statement is designed to clarify circumstances under which the FTC will take action under the Fair Debt Collection Practices Act (FDCPA) and the FTC Act against companies trying to collect debts from deceased consumers.

The proposed policy statement explains how the FTC will enforce federal law regarding:

Whom debt collectors are allowed to contact to discuss a decedent's debt.
How collectors can contact and identify the right party to discuss a decedent's debt.
How collectors should avoid giving relatives the misleading impression they are personally obligated to pay the debt from their own assets, rather than from the decedent's estate.

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Cash is king — again

Martha C. White Nov 10th 2010 @ 8:00AM EST Filed Under: Debt, Credit Cards

The numbers are rolling in, and by all accounts, Americans have finally bucked up and told their credit cards, "It's not me, it's you." While consumer spending has inched up a bit, it's not the big credit card networks that are benefiting, which means we're opting more often to spend the money that's already in our pockets. According to this article, credit card usage this year is down for Visa, MasterCard and Discover, while it's flat for American Express.

We're still using our debit cards -- 15% more this year than last -- but we're not financing everything from breakfast to bedroom sets anymore. While this may hurt us in terms of our short-term recovery, since consumer spending is estimated to make up around 70% of our total economy, in the long run it will make us stronger, says Richard Barrington, personal finance expert for MoneyRates.com.

"It's indicative of the fact that consumers are spending less," Barrington tells WalletPop. "They're paying down debt and household debt service ratios are coming down. What that means is some debts are being written off, but to a large extent, people are trying to live within their means," he says.

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