Credit Archives - Page 25 of 82

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Phone Scam Targeting Student Loan Borrowers

Posted on February 9, 2017by Admin

A phone scam promising to forgive borrowers’ student loans is making the rounds, again. The scammer asks for an upfront fee to negotiate with the loan lender on your behalf, then takes the money and runs.

The best thing you can do if you are contacted, is to hang up the phone. Student loans can be forgiven, but only under certain circumstances. Here are some tips from the Consumer Financial Protection Bureau (CFPB) to help spot a student loan debt relief scam:

1.) Upfront fees. No upfront fees should ever be charged by a student loan debt relief company. In addition, you should not be required to sign a contract with the company. The CFPB notes that free assistance is available through your student loan servicer and advises that oftentimes taking upfront payment before debt relief services have been provided is illegal.

2.) Promises. Fraudulent student loan debt relief companies will promise borrowers loan forgiveness or even complete cancellation. The false promise of negotiating with your lender under federal student loan programs is a flat out lie.

3.) Signing documents. Student loan debt relief companies should not require that you sign a “third party authorization” or a “power of attorney.”

4.) Requests for your Federal Student Aid PIN: Borrowers should be extremely cautious of any student loan debt relief company that asks for this information. The CFPB states that, “honest companies will work with you to come up with a plan and will never use your PIN to access your student loan information.”

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

http://www.consumerfinancialserviceslawmonitor.com/2014/12/cfpb-issues-warning-to-consumers-and-springs-into-action-against-student-debt-relief-scams/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Improve your Credit Score

Posted on February 8, 2017by Admin

Having a low credit score can cost you. If you have a credit score of 620 or below, this is considered to be “bad credit.” Lenders or credit card issuers, if they are willing to extend you credit at all, are likely to charge you a higher interest rate. You may also have to pay a utility deposit when starting or renewing service, something people with good credit do not have to pay. Having a bad credit score can even effect how much you pay for car insurance.

Now onto the good news- there are things you can do to improve your credit score. Following these easy steps will help push your score in the right direction.

Watch your credit card balances. A major factor in your credit score is how much revolving credit you have versus how much you are using. The smaller the percentage, the better your credit rating. The ideal amount is 30 percent or lower.
Eliminate small credit card balances. When you have small balances on credit cards, pay them off. Charging $50 on one card and $100 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.
Leave “old debt” on your report. Some people believe that old debt on their credit report is a bad thing. Good debt- such as a home or car you recently paid off – is actually good for your credit. Do not close out old accounts where you have had a solid repayment history.
Use your calendar. If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short period of time. Every time you apply for new credit, it can cause a small dip in your credit score, which can last up to a year.
Pay your bills on time. If you are planning a major purchase (like a home or car), one of the biggest factors in having a good credit score is simply making on-time payments month after month. Saving up money for a major purchase is smart; just don’t neglect your bills. This can even extend to outstanding library books. If the original creditor, such as the library, does not report it to the bureaus, they may eventually call in a collections agency to recoup the unpaid bill.
Avoid risk. One of the best ways to improve your credit score it to avoid purchases that might lower it. This could include taking out cash advances, using cards at businesses that could cause future money stress, etc.
Do not obsess. If you are getting ready to make a big purchase, pull a copy of your credit report. You are entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for FREE every year through AnnualCreditReport.com. While the score you receive may not be the exact one the lender uses, it will grade you on many of the same criteria. If you are denied credit, the lender has to show you the credit score used in their decision making, thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

IRS Warns Consumers of Tax Refund Phone Scam

Posted on February 7, 2017by Admin

Tax time often brings with it a series of scams, and this year is no different. Thousands of consumers have already received phone calls from scammers trying to take their tax refund money.

“Before there is an arrest warrant issued, I want you or your attorney to give us a call back,” the scam caller says.

Since 2013, scams like this have conned more than 10,000 victims out of $54 million. Know that the IRS will never call and demand immediate payment using a specific payment method such as a prepaid debit card or wire transfer. The IRS will first mail you a bill if you owe any taxes. You will also be given the opportunity to question or appeal the amount they say you owe.

REMEMBER: The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. In addition, the IRS does not threaten taxpayers with lawsuits, imprisonment, calling the police or other enforcement action. Being able to recognize these signs of a phishing or tax scam could save you from becoming a victim.

Here is more information on Scams Targeting Taxpayers directly from the IRS website.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Provision for Big Banks Could be Trump’s Next Target

Posted on February 6, 2017by Admin

The special bankruptcy procedure for large financial institutions may be a Trump target, according to a recent article in the New York Times. The Dodd-Frank’s bankruptcy provision, originally enacted in 2010 as a response to the financial crisis, allowed the banks who were essentially “too big to fail,” do just that.

Many of the proposals to create a new part of the bankruptcy code for banks have not offered any real solutions. The proposals provide no real way to deal with anything beyond a very specific form of bank failure.

If the bank fails in any way other than as predicted, the proposed legislation would be useless. This will in turn lead to a plea from Wall Street for bailouts. If that happens during a Trump administration, it will be interesting to see what happens next.

Who could have predicted the failure of Lehman Brothers or the near collapse of insurance giant, AIG? The financial panics caused by these collapses result in mass financial destruction- even when some degree of bailout is extended.

There is no doubt that without government assistance to both the banks and the automakers, the effects of 2008-09 would have been far worse.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Tackle Long Term Credit Card Debt

Posted on February 2, 2017by Admin

It takes 13 years to pay off a $5,000 credit card bill, if you only pay the minimum each month. Florida is in the top 5 states with the highest credit card burden, according to a recent study from CreditCards.com. The study also sheds light on the effects high credit card debt has on U.S. household finances.

By allocating at least 15% of gross monthly income toward credit card debt, the typical Florida consumer’s payoff time drops to just 18 months and costs $678 in interest, in the above scenario.

Here are some other proven ways to help tackle long-term credit card debt.

Be careful how you spend that bonus check. Seasonal commissions and bonus checks can provide an added sense of confidence when it comes to spending. Not a good thing, if you are struggling to pay down credit card debt. Break this extra income up into three parts: debt reduction, major purchase and savings. Remember: paying off a large portion of credit card debt can save you thousands in interest.

Consolidate. If you have multiple unsecured loans that you would like to have lumped into one payment, debt consolidation may benefit you. This option gives you the opportunity to save hundreds of dollars with a lower interest rate and you can combine all of your payments into a single monthly payment.

Cut your budget. One of the best ways to pay down your debt is to find savings elsewhere. Cut down on your grocery bill, cancel monthly membership fees you may not be using as much as you thought you would, etc.

Define your goals. Do you want to reduce your debt or be completely debt-free? Set timelines for yourself and how much you need to pay to meet those goals each month.

Prioritize. Focus on paying off the highest-interest debt, first. This is your biggest financial drain. Another idea is the “snowball method,” which essentially means paying off the debt with the smallest balance first, continuing to the debt with the next lowest balance, etc. This strategy allows you to see immediate results in paying down debt, and builds confidence and momentum to keep you on track to pay down the rest of the debt.

Click here to read more on this story.

Related Resources:

https://www.thestreet.com/story/13937063/1/how-to-tackle-the-high-costs-of-long-term-credit-card-debt.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

FTC Cracks Down on Dishonest Payday Lenders

Posted on January 30, 2017by Admin

The FTC has been targeting fraudulent payday lending companies, headquartered in Missouri and Kansas, with consumer settlements reaching as high as $1.266 billion. The FTC recently announced charges against Joel Jerome Tucker, and his companies, SQ Capital LLC, JT Holding Inc., and HPD LLC, for selling portfolios made up of phony payday loans.

The loans listed in the portfolios named fake lenders and debtors, including their social security and bank account numbers, and led to collection activities against consumers who had not taken out loans, according to the FTC.

In another case, a settlement was reached between the FTC and payday lenders, Tim Coppinger and Ted Rowland, and their companies.

Under the terms of the agreement, the lenders paid nearly $1 million with the threat of substantially greater judgments (up to $32 million) should they fail to abide by the terms of the settlement agreement. The fraudulent activity included debiting money from the accounts of people who never requested loans, but for whom the payday lender had obtained personal information. They would then charge interest and fees on the unauthorized loans.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens to Tax Debt in Bankruptcy?

Posted on January 26, 2017by Admin

If you are considering filing for bankruptcy, you may be wondering if your tax debts can be discharged in bankruptcy court. Although the automatic stay will delay the IRS from contacting you about your debts, there are some taxes that cannot be eliminated in bankruptcy court. Here are three basic rules that will tell you if your tax debts are eligible for discharge.

The Three Year Rule. Your tax debts must be three years old from the date they were due, not from the date that you filed. Tax returns are due on April 15^th each year. This means that your 2010 taxes are not eligible for discharge until April 15^th of 2014. This is because your 2010 taxes were technically due in April 2011. Calculate three years from the time the taxes were due.
Your Tax Returns Must Have Been Filed for Two Years Before Bankruptcy. Taxes must be filed for two years prior to the bankruptcy filing to prevent delinquent taxpayers from filing late returns one day and bankruptcy the next.
The Taxes Must Have Been Assessed More Than 240 Days Ago. The IRS must formally determine that you owe the taxes you are trying to eliminate in bankruptcy more than 240 days before you file the paperwork with the court. Note that an offer in compromise will delay the 240-day rule while it is pending plus an additional 30 days.

Related Resources:

http://www.natlbankruptcy.com/bankruptcy-and-tax-debt-what-happens-to-tax-debt-in-bankruptcy/

http://www.thebankruptcysite.org/resources/bankruptcy/stop-irs-collecting-tax-debts.htm#

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Government Sues America’s Largest Student Loan Company

Posted on January 20, 2017by Admin

The Washington state Attorney General filed a lawsuit against student loan company, Navient on Wednesday. Navient is formerly part of the private student loan company, Sallie Mae. In a separate lawsuit, Illinois Attorneys General named both Navient and Sallie Mae.

According to Richard Cordray, the director of the Consumer Financial Protection Bureau (CFPB), “At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs.”

Navient separated from Sallie Mae in 2014 and is currently the largest student loan servicer in the country. The company reportedly handles more than 12 million student loan accounts. Approximately half of the borrowers have federal loans and the other half are private. According to the CFPB, one in four student loan borrowers have Navient as their servicer.

The CFPB’s allegations claim that Navient steered struggling borrowers toward paying more than they had to, and misallocated borrowers’ payments when they were made across multiple loans. It also alleges that in some cases, Navient erroneously reported borrowers had defaulted on their loans, damaging their credit score.

In the lawsuit, the government claims that Navient also made it more difficult for borrowers to enroll in an income-driven repayment plan, which can be used to lower their monthly payment if they’re struggling to make payments.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

How Trump Policies Could Affect the Elderly and Disabled

Posted on January 19, 2017by Admin

President-elect Donald Trump is set to take office tomorrow, January 20^th at 12:00 PM. During his presidency, economists anticipate several policy changes that will significantly affect the elderly population, those who are disabled and those with special needs. Here are a few ways those changes might affect you.

Social Security and Medicare

Although President-elect Trump has consistently stated that the Social Security and Medicare programs will remain intact, both face an impending insolvency. As one of their proposals to keep those programs solvent, Trump and Congressman Paul Ryan are promoting an approach that will include some form of Social Security and Medicare privatization.

The Cost of Health Care

There is a mounting fear among Americans about the cost of health care and long-term care. Restrictions on benefits and legislative changes that restrict or limit access to government programs, such as Medicaid, can only heighten such fears.

Block Grant Proposal

Medicaid is currently administered at the federal level by the Center for Medicare and Medicaid Services. Each state has its own state Medicaid Plan, however, there are mandates and constraints. The proposed grants would issue each state a certain number of Medicaid dollars and the state would in turn, decide how to use and spend those dollars. In some states, little would change, however in other states the changes could be profound for those who rely heavily on Medicaid.

Trump has also stated that there are a few policies from Obama’s Affordable Care Act that he intends to keep, including:

Allowing young adults to remain on parental coverage;
Protecting people with pre-existing medical conditions;
Closing the Medicare prescription drug coverage gap.

Related Resources:

http://www.wealthmanagement.com/estate-planning/how-trump-policies-could-affect-elderly-and-those-special-needs

https://www.yahoo.com/news/pointed-questions-await-trumps-pick-health-secretary-085931872–politics.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Debt Collection Dispute Headed to the Supreme Court

Posted on January 18, 2017by Admin

The U.S. Supreme Court will decide whether firms collecting on a debt they bought for pennies on the dollar can be held liable in lawsuits brought by consumers. The justices agreed to review a lower court’s decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act– a debt collection law enacted in 1977 that prohibits collectors from using abusive, unfair or deceptive practices to collect a debt.

The current case hinges on the definition of “creditor” and “debt collector” and whether a company that purchases debt should be treated as a creditor and therefore not subject to the law.

The case (Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349) involves four Maryland residents who defaulted on their auto loans, and filed a proposed class action lawsuit against Santander in 2012 in federal court alleging violations of the Fair Debt Collection Practices Act, such as misrepresenting the debt amount and bypassing debtors’ attorneys.

The debts had been sold to Santander, a Dallas-based vehicle-financing and lending company owned in part by a subsidiary of Banco Santander. Santander then tried to collect on the loans.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia threw out the lawsuit last March, saying the law applied only to debt collectors, and Santander became a creditor when it purchased the loans.

The Maryland residents told the Supreme Court the 4th Circuit’s reasoning would “hamper both government and private efforts to combat abusive debt-collection practices.” The appeal to the Supreme Court comes as the Consumer Financial Protection Bureau is considering proposals to toughen regulation of the industry.

Click here to read more on this story.