According to an article in the Star-Telegram, American Corrective Counseling Services, a debt collection company has agreed to a $2.55 million judgment to settle a lawsuit brought by thousands of debtors who claimed they were wrongly led to believe they had to pay costly fees to avoid criminal charges for bouncing checks.

The article said:

“The company sent out letters as recently as last winter purporting to be from various …

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AmeriDebt Inc was the first credit counseling company to have a federal lawsuit filed against it.   It was the FTC’s largest case involving deceptive credit counseling and debt management.

In November 2003, the Federal Trade Commission (FTC) charged AmeriDebt, DebtWorks Inc and Andris Pukke, the founder of the two companies had deceived consumers with claims that AmeriDebt was a nonprofit organization and that it provided …

Category: Credit Counseling

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According to an article in the Dallas Morning News, American Airlines in implementing job losses as it attempts to avoid bankruptcy and dig itself out of a financial hole. Approximately, 921 flight attendants at American Airlines will face unemployment, while 228 other employees will be furloughed.  Already, 224 employees have taken two-month involuntary leaves in lieu of job losses. In June, American Airlines warned that it would probably …

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According to an article at KFoxTV, credit counseling /debt settlement companies are using deceptive practices to con credit card consumers by giving the impression that they are calling from a credit card company and offering “lower credit card interest rates.”

The article said:

“Vasquez has received a number of calls on his cell phone playing recordings that claimed to be from his credit card company. “Hi this is Kathy with …

Category: Credit Counseling , Fort Worth Attorney , Lawsuits

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… bankruptcy case because he failed to obtain and deliver to the court the prepetition credit counseling certificate required by bankruptcy law. The debtor claimed that he was unable to meet the credit counseling requirements because of his incarceration.

Here’s an excerpt from the case:

The debtor argued that his incarceration was like being disabled because he was physically unable to attend credit counseling, was denied access to the Internet, and pro­hibited from making …

Category: Credit Counseling

Tags: Credit Counseling

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… Chapter 7 or Chapter 13 bankruptcy are required to go through a government-approved credit counseling program within six months before they file for bankruptcy protection. Credit counseling can take place in person, over the phone, or online. The credit counseling session will last about 90 minutes and will include an analysis of their personal budget, including income, expenses and current debt. The credit counseling organization is allowed to charge a reasonable fee for services …

Category: Credit Counseling

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If there ever was a time when the average, hard-working American homeowner needed a little help, it’s now. The economy is a complete and total mess. The financial markets are near collapse! Unemployment is at a 5-year high, and foreclosures are at record levels. But right now those that claim to represent the best interests of the average American working stiff, the small mom and pop shops and the senior citizens who depend on the stability of our …

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According to an article in the Star-Telegram, American Airlines has cut its fleet from 900 planes to 600. Because it has fewer planes, the company announced 700 job losses and the closure of its Kansas City maintenance base. The job losses will affect mechanics, engineers, management as well as union and non-union workers. No job losses have been announced for the Fort Worth maintenance facility; but if the airline industry continues to …

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… to alleviate many of the problems with student loans.

According to an article in the Austin American Statesman, “A National Association for College Admission Counseling survey released this month showed 71 percent of high schools reported that more of their students are forgoing their “dream schools” than in previous years.”  More students are opting to stay at home (or closer to home) and attending cheaper, public universities for undergraduate studies.

Karen Copetas, the …

Tags: Education National Association for College Admission Counseling Student Undergraduate education United States

… In a stroke of misfortune, prior to contacting Debt Relief USA, Mr. Mayer had hired a credit counseling company to also help him resolve his debt situation.  The result, after thousands of dollars spent, he was utterly disappointed and found their services of no benefit.

To listen to the gripping interview between Mayer and Allmand & Lee,  please click here.

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Last year the Obama administration created the American Recovery Capital lending program which is providing $255 million in emergency loans until September for “viable” small businesses facing immediate financial hardship. Businesses facing financial problems could receive deferred payment loans of up to $35,000 interest-free for five years.  However the program has not worked out as many had hoped and it may not provide much relief for …

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… that they mistakenly believed would become immediate “cash cows.” The major problem facing American businesses is their overleveraged position, weak sales and the lack of credit available for expansion or investments. Many are married to expensive labor contracts and vendor agreements that are proving to be less than lucrative in the down market.  Companies such as GM and Chrysler have already used Chapter 11 bankruptcy to free themselves from these agreements and reorganize their …

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