… debtor’s 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 …

Category: Credit Counseling

Tags: Credit Counseling

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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 …

Category: Credit Counseling

Tags: bankruptcy lawsuit Credit Counseling

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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 …

Comment by Jacob Sparks: … exactly like a credit card (or bank) ompany’s …

Category: Credit Counseling , Fort Worth Attorney , Lawsuits

Permalink: /lawsuits/debtor-alert-credit-counseling-deception/

… for 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 …

Category: Credit Counseling

Permalink: /credit-counseling/credit-counseling-required-before-filing-bankruptcy/

As credit card companies increase interest rates and fees, many credit card consumers are looking for alternative sources of credit.  Even personal loans are given a second look due to their lower interest rates.  But what is a personal loan?  A personal loan is an “unsecured” credit line which is similar to “secured” loans in that there is a fixed amount of credit available and a finite …

Category: Credit Counseling

Tags: Credit card Interest rate Loan Personal Finance

Permalink: /credit-counseling/credit-cards-vs-personal-loans/

Most credit card companies will send a delinquent credit card account to a collection agency after 180 days of no payment.  These delinquent credit card accounts are usually sold for pennies on the dollar.

Debt collectors who hold your credit card account are regulated by the Fair Debt Collection Practices Act and can be liable for violating the rules of this law.  …

Category: Credit Counseling

Tags: credit cards Debt Collectors

Permalink: /credit-counseling/seven-things-you-need-to-know-about-delinquent-credit-cards/

… to an article in the Dallas Morning News, drivers and homeowners in North Texas with poor credit ratings pay an average of 35 percent more for insurance coverage than those with good credit – even when driving records and recent damage claims on homes are identical.

The article said:

“Rates submitted by the 35 largest auto insurers show that all but two use credit history to help decide whom to sell insurance to and how much to charge. Some companies double the rates for …

Category: Credit Counseling , Economy

Tags: Credit score Insurance North Texas

Permalink: /credit-counseling/could-your-credit-score-affect-your-insurance-rates/

Credit card companies are frantically taking drastic actions in their attempt to “work around” the new credit card legislation that will restrict their ability to randomly raise interest rates and hit credit card consumers with surprise fees.  Already credit card consumers are beginning to scream foul. An article in the NJ featured a distraught credit card consumer whose monthly minimum …

Comment by Jacob Decker: Credit cards companies employ unfair …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis

Tags: Credit card Debt Money Management Personal Finance

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As the school year begins, credit card companies are in a mad dash to rack up as many new and young customers as possible before the Credit Card Accountability Responsibility and Disclosure Act of 2009 becomes effective February 22, 2010, restricting access to youth under 21 years old. According to an article in DetNews, credit card companies are already swarming campuses with tempting credit card offers for college …

Comment by Reed Allmand: … the story of how credit cards companies lure new …

Category: Credit Counseling , Debt and Tax Relief , Economy

Permalink: /credit-counseling/college-students-and-parents-beware-of-credit-card-offers/

According to an article in the Star-Telegram, credit card companies slashed credit limits for an estimated 58 million credit cardholders within the past 12 months, many of those credit card consumers had high credit scores, no missed payments and in some cases no balance. FICO studied a group of 30 million credit card consumers to find out exactly who was being targeted by credit limit cuts.

The article said:

“About 73 percent of the …

Comment by Jacob Decker: The credit card companies also raised …

Category: Credit Counseling , Credit Crisis , Economy

Permalink: /credit-counseling/credit-card-companies-restrict-credit-access/

The new Credit Card Act which requires credit card companies to disclose how much a debtor needs to pay each month to pay off their balance clean within three years, and how long it would take them to be debt free if only minimum payments are made may not effectively reach debtors who bank online or pay their credit card bill through automatic electronic payment.  Debtors who bank online and forgo …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy , Managing Your Finances

Tags: Credit card Debt online banking

Permalink: /credit_card_negotiation/new-credit-card-disclosures-may-not-reach-debtors-who-bank-online/

After the passing of the Credit Card Act, which will restrict credit card companies’ ability to increase interest rates, amongst other things, the credit card industry took decisive action to soften the blow to their profits. Below are some of the changes you may see on your credit card in 2010:

An annual fee.  Since the Credit Card Act was passed, about 43 percent of new credit card offers contained annual fees, …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy

Tags: Credit card Credit Card Act fees repayment

Permalink: /credit_card_negotiation/what-to-expect-from-the-credit-card-industry-in-2010/