Credit Archives - Page 34 of 82 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Florida Bar, Timothy Kingcade Posts

5 New Rules Can Protect You From Extreme Debt Collection Practices

Posted on August 4, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) has taken many steps to protect borrowers from illegal debt collection practices. However, debt collectors continue to use extreme measures to try to collect on debt. The Director of the CFPB, Richard Cordray said, “We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution or threats of physical harm to consumers and even their pets.”

As a result, the CFPB has proposed a new set of rules that will further monitor debt collectors’ practices and prohibit them from harassing and tricking consumers. Below are five of the new rules that will protect consumers from abusive debt collection practices.

According to the CFPB, approximately one-third of all consumers who are contacted by debt collectors said the attempt to collect was for the wrong amount. This occurs because debts are often sold to debt collectors with limited and inaccurate or incomplete information about the consumers and their debts. However, new proposed rules would force debt collectors to “scrub” their files and make sure they have the correct consumer and debt information before contacting the borrower.
The CFPB’s new proposal would also prohibit debt collectors from contacting consumers more than six times per week. Some debt collectors contact consumers multiple times per day, causing a major disruption to their daily lives. The new limits would also give consumers the right to tell collectors not to call on a particular phone line or at a particular time of the day, such as during work hours.
Another new rule would force debt collectors to disclose more information to consumers regarding their debt. This rule gives consumers the opportunity to defend themselves against illegal practices and enable them to spot a debt collection scam. The same rule would also force collectors to tell consumers if their debt is too old to initiate legal action.
Debt collectors would also be forced to provide consumers with a debt report if they disputed a debt via written notice. Until the debt report is provided to the consumer the collectors would not be permitted to actively pursue debt collection.
Finally, the new rules would also prevent debt collectors from transferring debt without responding to debt disputes. If the debt is transferred before the dispute, the next collector would not be able to pursue the debt until a response is submitted.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Debt Relief, Student Loans, Timothy Kingcade Posts

New Jersey Student Loan Agency Instructs Staff Not to Tell Borrowers About Help Unless They Ask

Posted on August 2, 2016by Admin

New Jersey has the largest state-based student loan program in the country. However, the terms of the loans offered through the program are particularly harsh and can lead to financial hardship.

Recently, internal emails from the staff at Higher Education Student Assistance Authority were released where employees were instructed not to tell families that they may qualify for loan forgiveness unless they ask.

The email sent to staff members in May 2016 from a supervisor said, “Families of deceased borrowers (or surviving cosigners) must inquire if HESAA has a policy on loan forgiveness. We should not be volunteering this information.”

The agency’s chief of staff, Marcia Karrow, released a statement that said the emails “do not accurately reflect the Authority’s policy or practice on loan forgiveness.” However, Karrow did not provide any proof that management had corrected the instructions that were sent out by email.

According to HESAA, they have helped 35 out of 50 cosigners or co-borrowers who have requested assistance after a borrower died or became disabled over the past four years.

The same company released a statement directly following Superstorm Sandy in 2012 stating that borrowers’ credit ratings would not be affected if they made a late payment. Instead, the agency only erased late payment reports if a borrower requested it.

Click here to read more on this story.

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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Foreclosure Improvement Still Lagging Behind the National Average

Posted on July 29, 2016by Admin

The nationwide foreclosure filings rate has shown signs of improvement in the first half of 2016. However, the improvement rate in Florida, New Jersey, Illinois, New York and Indiana is still significantly lower than the pre-recession rates and seem to be lagging behind the rest of the country. RealtyTrac released the data from the first two quarters of 2016 that reveal that foreclosure filings are were down 20 percent compared to the previous two quarters in 2015.

Although the foreclosure filings rate is still 21 percent higher than the normal rates, there were 15 states in the first half of 2016 with foreclosure rates that were significantly lower than “pre-housing bust” levels including: Arizona, California, Colorado, Nevada and Michigan.

According to RealtyTrac Vice President Daren Blomquist, the obvious divide between states is largely due to the fact that some states require foreclosures to take place in court, such as Florida. He went on to say, “the root issue that created the dysfunctional foreclosures processes was sloppy and improper documentation on the part of the banks.” Blomquist said that in non-judicial states, “it wasn’t an issue because there wasn’t oversight.”

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Miami Ranked As One of the Worst Major U.S. Cities for Managing Money

Posted on July 28, 2016by Admin

CreditCards.com recently ranked the nation’s cities in terms of money management by comparing credit scores and an index of U.S. Census Bureau data including: average income, education level, unemployment rate and the population ages of the 25 largest cities. According to the report, Miami ranked as one of the worst major cities in the country for managing their money. In fact, Miami came in 22^nd. Tampa ranked 23^rd on the list with Washington, D.C. at 24^th and Baltimore at 25^th. Los Angeles was ranked as the best city in the nation at money management, followed by Minneapolis as second and New York as third.

In order to rank the cities, the report focused on which city residents were paying their bills on time, keeping low credit card balances and not “over-applying” for credit, according to CreditCards.com senior industry analyst Matt Schulz. The original theory was that the older, richer and more educated residents would have higher credit scores, however, the data proved that factors such as cost of living, divorce rate and mobility level greatly impacted scores.

For example, although the Washington D.C. residents brought home a larger annual income than most cities, they also carried significantly higher credit card balances than other cities.

Click here to read more on this story.

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

6 Things College Grads Should Be Doing About Their Student Loans

Posted on July 27, 2016by Admin

On average, college graduates have approximately $37,000 in student loan debt, according to Cappex.com. Most student loan companies allow students a grace period after graduation of six months to one year before they start requiring payments. However, it is important to get your student loans in order immediately after graduation so that you know what to expect down the road.

Below are six things recent grads should be doing to prepare for their student loan repayment.

Get organized. Most students graduate with anywhere between eight and ten separate student loans. As a result, many tend to lose track of their total loan amount by the time they graduate. If you have only taken out loans through the federal government, you can find everything you need to know on the National Student Loan Database System website. This site will simplify your loans in terms of breaking down exactly how much you owe and when you took out each loan. However, if you have also taken out private student loans, it is best to check your credit report. This will show you the status of each loan, the date you opened it and your remaining balances. Also, make sure you note the interest rates for each individual loan.
Determine the Best Monthly Payment for You. Now that you know how much you owe, it is time to determine how much you can afford to pay each month. If you do not select a repayment option, your lender will put you on a standard 10-year repayment plan. When deciding how much you can afford to pay each month, it is best to select highest payment you can afford. This will potentially save you thousands in interest. However, if it means you cannot afford to put money into a retirement fund or a savings account, opt for a lower payment.
Stay on Top of Your Payments. Although student loans take longer to default than other debts, it will negatively impact your credit store if you miss a few payments.
Be Strategic in Paying Off Your Loans. If you have extra money to put toward your student loans, put it toward the loan with the highest interest rate. Also, if you pay extra one month, contact the company to be sure they put the additional amount toward the principal balance. Otherwise, they may treat it as the next month’s payment.
Consider Consolidation. Before you consolidate your loans, make sure you take your interest rates into account. If you have some loans with higher interest rates than others, it might not be the best move to consolidate. If you combine your loans and pay extra some months, you can no longer put the additional amount toward the loan with the higher interest rate.
Educate Yourself on Deferment and Forbearance. Deferment refers to the period when your payments are placed on temporary hold. Sometimes interest does not accrue during the deferment period. Deferment is typically available to students who have enrolled in grad school, are unemployed or experiencing economic hardship. On the other hand, forbearance is what you apply for if you are ineligible for a deferment. This is a time period, typically 12 months, when interest is accrued and added to the principal balance.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Quickly Pay Off Credit Card Debt

Posted on July 26, 2016by Admin

In 2015, the average American had approximately $15,762 in consumer credit card debt and the United States as a whole had more than $733 billion. Credit card debt was the fourth largest type of debt in the country, following student loans, auto loans and mortgages. However, most consumers retain this debt for many years and end up racking up thousands of dollars in interest. This typically occurs because consumers prioritize other payments such as mortgage payments, student loan payments, hospital bills and car payments, and therefore only make the minimum credit card payments each month.

Below are some tips to help you quickly pay off $10,000 in credit card debt.

• Find out your total balance. The first thing you need to do is find out your total amount of debt, totaling all of your consumer credit cards.

• Stop the interest. The next thing you need to do is look for a card that is offering a long lasting “0% intro APR balance transfer” promotion. Next, transfer your balance to this card. If you have more than one card with a balance, try to consolidate all of your credit card balances to the same card offering 0% interest. In many cases, interest accounts for as much as 75% of your monthly payment! According to NerdWallet, the average household pays $6,658 in interest per year in various debts.

• Power through the balance. After you have transferred your balance, it is important to take advantage of the interest-free period of your new card. Continue to make the same payments you made before and your balance will start shrinking much faster.

Related Resources:

https://www.lendingtree.com/info/powerful-2-step-method-pay-off-credit-cards?esourceid=6164156&cchannel=bd&csource=cnn-money&siteid=CC-pay-off-10k-hp

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Chapter 7 Bankruptcy should be Your First Option and Not Your Last Resort

Posted on July 25, 2016by Admin

Many Americans turn to debt relief assistance options when they are struggling with medical, credit card or other types of unsecured debt. However, according to the Huffington Post, nearly half of all programs aimed at helping you with your debt problems, fail to achieve the results they promise. These programs include credit counseling services, debt settlement programs, etc. Even those who have success with such programs usually end up with extremely high, consolidated payments for many years and accrue thousands of dollars in interest.

Filing for bankruptcy can you save time and money when you are in financial distress. Here is an example that shows the money and time debtors can save if they choose to file for bankruptcy, rather than seek debt relief assistance. Imagine that you currently have $22,000 in unsecured debts, such as credit cards. You have recently lost your job and can no longer afford each of the individual payments; therefore you choose to consolidate your credit cards into one monthly payment with the help of a credit-counseling agency. Your monthly payment is now $418 per month for the next five years. Once you pay off your debt at the end of the five years, you have paid roughly $25,000 including interest. However, if you put the same payment of $418 per month into an IRA for five years with an average return of 9.74%, you would not only have saved yourself $3,000 in interest but you would also have approximately $32,000 saved for retirement.

Filling for Chapter 7 bankruptcy can eliminate years of extremely high monthly payments and ongoing stress. The process of filing bankruptcy can take as little as 90 days and the total cost is typically between $1,500 and $1,800.

Click here to read more on this story.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

FTC Shuts Down Multi-Million Dollar Mortgage Relief Scam

Posted on July 18, 2016by Admin

The Federal Trade Commission (FTC) shut down multiple mortgage relief schemes conducted by a string of California-based law firms that ultimately scammed struggling homeowners out of millions of dollars. The law firms were charging homeowners thousands of dollars and falsely promising that their services would allow them to stay in their homes.

Homeowners were told they could join a “mass joinder” lawsuit against their mortgage lenders, claiming mortgage fraud and void consumer’s mortgage notes. The attorneys, operating as Brookstone Law Group, Brookstone Law, Advantis Law and Advantis Law Group, promised homeowners they would discharge their mortgage entirely, provide monetary relief or both. However, the firms never followed through on their promises.

According to the FTC, the promise of a “mass joinder” lawsuit is a common mortgage relief scam. Mass joinder lawsuits are different from class action lawsuits because each individual defendant is required to prove his or her case in court. The FTC stated that although the attorneys did file lawsuits in this case, most were never pursued and ultimately dismissed.

The FTC’s report stated the attorneys mailed out materials including the homeowner’s name, loan amount and property identification number with statements such as, “Your home will be sold at Auction unless you take immediate action.”

Homeowners who proceeded with the case were initially charged $895 to join the lawsuit and receive a “legal analysis.” Those whose legal analysis showed they had a good case were told they were “likely or certain” to win a lawsuit against their mortgage lenders and would recover at least $75,000. The firms would then charge homeowners thousands of dollars and monthly fees and failed to deposit the fees in client trust funds as required by law.

Most of the homeowners were never added as plaintiffs in a case and some were added months later. Their questions went unanswered and their requests for refunds were allegedly refused. According to the FTC’s report, the mortgage relief scheme netted at least $15 million.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Legislation for Big Banks Gains Momentum

Posted on July 14, 2016by Admin

Legislation to make the bankruptcy of a big bank more realistic is gaining momentum in Washington, a development that could help the largest U.S. financial firms counter criticism that they remain “too big to fail,” without a taxpayer bailout.

Changes to the bankruptcy code were included in a financial-services budget bill the House passed last week, along with other regulatory provisions such as congressional oversight of the Consumer Financial Protection Bureau’s budget. The bankruptcy legislation has broad support, giving it a greater chance to become law this year.

The Financial Institutions Bankruptcy Act would establish a section of the bankruptcy code specifically for large financial firms and is designed to prevent a repeat of 2008 Lehman Brothers downfall, when the investment bank’s bankruptcy filing caused widespread financial panic and economic consequences. Under the bill, regulators and bankruptcy judges would have more power and flexibility to sort out the liabilities of a failing firm and to stabilize its continuing operations.

Rep. David Trott (R., Mich.), the bill’s primary sponsor, “believes the inclusion of the language in the appropriations bill further builds momentum for this bipartisan plan to protect taxpayers and he hopes the Senate will take up the legislation soon,” a spokesman said last week.

The bankruptcy provisions are part of a number of changes instituted after 2008 to lessen the chances of a Lehman-like collapse and the bank bailouts that followed. The 2010 Dodd-Frank financial overhaul law required big banks to show they have credible plans for going through bankruptcy, known as “living wills.”

By making the bankruptcy code a more feasible option for large financial firms, the bill would help ease GOP concerns about future bailouts. That is part of the reason big banks have been in favor of it. The bill is also less controversial than some related proposals because it does not seek to repeal regulators’ new powers to “unwind financial firms outside bankruptcy.”

Changes to the bankruptcy code could also have a positive effect on big banks by bolstering their “living will” bankruptcy plans. Regulators told five of the eight U.S. banks considered critical to the global economy their plans to go through the existing bankruptcy code were not credible, and the banks face sanctions if they cannot address regulators’ concerns.

Click here to read more on this story.

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, Debt Relief, Timothy Kingcade Posts

Consumer Debt Increases in May on Student and Auto Loans

Posted on July 13, 2016by Admin

The Federal Reserve reported that borrowing increased by $18.6 billion in May, an increase from $13.4 billion in April. Borrowing in the auto and student loan category climbed 16.2 billion. Borrowing in the credit card category increased 2.4 billion.

This gain in May pushed total consumer credit to a record 3.62 trillion. Consumer spending, which accounts for 70 percent of economic activity, is expected to surge, helping boost the overall economy. Non-revolving debt, a category that includes auto loans, student loans, boats, and vacations accounts for $16.2 billion of the total increase.

Student loans and motor vehicle loans typically represent the bulk of non-revolving credit. Due to easy credit, subprime auto loans likely played a part in this.

Economists are forecasting that second quarter growth will accelerate to a rate of around 2.5 percent. The increase is due to the expected employment growth, which slowed this spring, but will continue to increase in the coming months. A recent report reveals employers added 287,000 jobs in June, a substantial improvement from the small gain of 11,000 jobs in May.

Related Resources:

http://www.newsmax.com/Finance/StreetTalk/consumer-debt-auto-student/2016/07/08/id/737822/

http://www.minyanville.com/business-news/markets/articles/2523economy/7/9/2016/id/57742