FTC: Debt Collection Aggression

West Asset Management has agreed to pay $2.8 million to settle FTC charges that its aggressive debt collection techniques violated federal law. That's the biggest civil penalty the FTC has ever gotten in a debt collection case. The FTC alleged that the company's debt collectors called people many times a day — often regarding accounts that didn't belong to them — and sometimes used rude and abusive language; illegally disclosed debts to third parties; and ignored people's written requests to stop calling. The settlement permanently prohibits West Asset from using false, deceptive, or unfair debt collection tactics. 

We have stated in previous posts that debt collectors sometimes use unfair practices. Know your rights as a consumer. If you are being harassed by debt collectors make sure you document and report. The above article excerpt proves that there are consequences for debt collectors that use false, deceptive, or unfair practices to collect debt.

Sources: Federal Trade Commission

Fresh Start Consumer Care, LLC www.freshstartconsumercare.com
 

Government Shutdown: The Impact On You

The possibility of a government shutdown has been in the news daily. The "possibility" should be changed to "definite". By the House's own rule all bills must be on the floor 72 hours before they can be considered. With the 8th of April being the deadline, simple math says "time is up". Not passing a budget will affect many areas, but here are a couple of them. It is estimated that 800,000 government workers will be furloughed, which means they will not receive a paycheck until a budget is passed and they are back to work. They may receive back pay, but Congress will have to authorize it. The other area of concern is that paper IRS filings will not be processed. Electronic filings will continue to be processed. If you were expecting a refund it is possible that it will be delayed. With these two thoughts remember there are other areas that will be in jeopardy. Make sure you have a solid plan for your household. Keep some money on hand and reevaluate your savings plan. While this is not great news, remember few things are constant.

Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com

Is your current bank account statement accurate?

A funny thing happened to me. Well it wasn't that funny. I was reviewing my bank statement and saw a current charge from an eatery I hadn't visited in seven months. I know because my wife has a mind like a steel trap. I went to the bank to discuss the charge. While researching the charge we discovered that the eatery had not charged us while we were there seven months ago. The banker informed us that businesses can reconcile their credit receipts at later times. Seven months is a long time for a business to have the ability to charge your account if you are not under contract. Now I don't agree with this and will pursue it further, but it tells me that we should always check our statements monthly if not more.



Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com

Banks Circling the Wagons on the Heels Credit Card Reform

If you have followed the latest banking news, you may have noticed that Chase bank is exploring placing a $50 or $100 cap on your debit card. This restriction may also apply even if you use your card as credit. This means that shopping may become a bit difficult for people relying on debit cards. Imagine going grocery shopping and your card is declined because you surpassed the spending limit for that transaction. As stated in a previous blog, banks are finding ways to recoup their lost revenue due to the Credit Card Reform Act of 2009. Banks can currently charge businesses 44 cents per debit/credit card transaction. This fee will be reduced to 12 cents in July. This is a huge loss for banks that inevitably will be passed on to the consumer by possibly reducing your spending limit.  You may want to contact your bank and ask what changes may be coming to you. The next time you go shopping you may want to have your checkbook handy or as the old saying goes, "Cash is King."

Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com

Home Loan Modification On The Chopping Block

While the Home Affordable Modification Program has not saved as many Americans from home foreclosure as the projected, there have been some victories. The program was enacted shortly after President Obama took office. It was to be a tool to help many Americans remain in their homes; however banks still had the option of rejecting new loan terms.  While I can see both sides, Republican and Democrat, I believe we still need to keep this program in place. The program in its current state is not producing the desired results; however there may be other means to enhance the program. Helping some homeowners recover is better than helping none at all. The new legislation to terminate the program will probably pass in the House controlled by Republicans; however it is expected that the White House will block it.

Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com

Debt Collectors and Social Media

Debt collectors have found new ways to reach out to consumers. With the rise of social media outlets, collectors can target individuals and contact them. Many people are not as cautious with sharing information about their personal life using social media. Sometimes we have gotten too comfortable updating statues on the internet.  Now this still does not mean that debt collectors can harass individuals. They are still held to the same standards imposed by the Federal Trade Commission. Now, I am not saying that you should run from your debt. I am saying that we should take a little more caution in updating statuses and the latest items we have acquired recently. If you have someone attempting to "friend" you, make sure you really know the person. If you find yourself being harassed contact the FTC to report the company. If you feel you cannot organize your finances and need help, there are companies out there that specialize in these matters.

Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com