The Federal Trade Commission is giving debt collection agencies a dose of their own medicine in terms of harassment. The FTC is taking strong steps forward to hold these agencies responsible for harassing debtors. In 2010, a reported 140,036 claims of harassment were filed, which was not only the largest in history, but a 20,000 increase from the previous year. The collection agencies are not only in trouble with the FTC for harassment, but also for failure to notify the debtor of their outstanding debt in writing and also for “misinterpreting” the debt.
Many cases such as the one filed by an 85 year-old in Oregon are surfacing and becoming national news. Anne Sessions is suing Wells Fargo Bank for harassment after she was falsely turned in by a debt collector for being in danger of committing suicide. After Sessions was taken into custody by the police and sent to a mental health institute, she was observed and later released due to the fact she was found to be of no danger to herself or anyone else.
Sessions is now suing in hopes to receive compensation for her $1,055 medical bill from the mental health facility. She is also suing for $250,000 in punitive damages. Sessions claims that she made the remark to the debt collector that some people must want to commit suicide from the harassment of the company, and later was drilled with questions by the debt collector such as, “If you did commit suicide, how would you do it?”
To read more on this story visit: http://www.bankruptcyhome.com/bankruptcyblog/2012/02/13/harassment-goes-too-far-in-debt-collection-efforts/
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.
Tag: debt
Student Loans go Unpaid as Younger Workers Face Difficult Conditions in the Labor Market
According to data from the Federal Reserve Bank of New York, 11.2% of student loans were more than 90 days past due and the rate was 
steadily rising. Only credit cards had a higher rate of delinquency at 12.2%. Younger workers have continued to face the most difficult conditions in the labor market. Workers between 20 and 24 years old have a 14.6% unemployment rate, compared to the national average of 9.1% recorded in July.
Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year as more students go to college and a growing number borrow money to do so. According to reports, two-thirds of bachelor’s degree recipients graduated with debt in 2008, compared with less than half in 1993.
Education policy experts expect that the mounting debt may have extensive implications for the current student borrower. Individuals finishing or leaving school with a lot of debt, may find their choices to be different than the generation before them. Things like buying a home, starting a family, a business, and saving for their own children’s college education may have to be put on hold for those with insurmountable student loan debt.
Students who borrow to attend for-profit colleges are especially likely to default. They make up about 12% of those enrolled in higher education, but almost half of those defaulting on student loans. According to the Department of Education, about a quarter of students at for-profit institutions defaulted on their student loans within three years of starting to repay them.
To read more on this topic visit:
http://blogs.wsj.com/economics/2011/08/16/more-student-loans-are-past-due/?KEYWORDS=student+loans
http://www.nytimes.com/2011/04/12/education/12college.html?_r=1
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
Five Tips to Help you get out of Debt
Between the first quarters of 2009 and 2010, consumers made $72 billion more in payments on their credit cards than in purchases. Many individuals are picking up second and third jobs to pay off surmounting debt; others are relying on balance transfers on high interest credit cards, garage sales, and even selling unused household items on Craigslist. Reducing consumer credit-card debt is a surefire way to eventually stimulate the economy.
Here are four tips to help you get out of debt:
1.) Track your income and spending: To find cash to pay down your debt, you must know exactly what’s coming in and what’s going out. Write down everything you spend for 30 to 60 days with a pen and paper, an Excel spreadsheet or online software.
2.) Get the details: Determine the difference that an extra $100 or $200 a month can make in your progress. Then focus on saving small amounts that day, week or month.
3.) Call your lenders: List your cards in order of interest rate, from highest to lowest, along with the amount of the debt and phone number of the lender. Then call and ask if they would be willing to reduce your interest rate by 10 percentage points, indicating that you’ve received more competitive offers in the mail. (Make sure the representative who answers is authorized to reduce the rate. If not, ask speak to someone who is.)
4.) Snowball it down: As soon as the card with the highest-interest rate is paid off, direct that payment to the next card until that one is paid off, and work your way down the line. Although some pundits suggest that paying off the smallest balance first will motivate you to keep paying your cards off, studies have shown that method isn’t as effective as paying in order of interest rate. You’ll get out of debt faster by paying off the highest-interest-rate debts first.
5.) Build a cushion: Once you’ve snowballed your way through the credit card debt, steer that monthly amount into a savings account until you have at least three months’ of cash to cover living expenses. That will prevent emergencies from sending you back into the debt cycle.
To read more on this topic visit:
http://www.creditandcollectionnews.com/viewer.php?url=http%3A%2F%2Fwww.dailyfinance.com%2F2011%2F08%2F17%2Fu-s-credit-card-debt-declines%2F
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
What the U.S. Credit Rating Downgrade means for Consumers
The global rating agency Standards & Poor’s recently downgraded the United States esteemed “AAA” debt rating, a rating it has held since 1917. The nation’s credit rating has now been reduced to a less favorable “AA+,” after S & P said the compromise made by Congress and President Obama to cut spending and boost the debt ceiling fell short.
S&P repeatedly warned the U.S. rating was at risk if Washington did not agree to reduce deficit spending by $4 trillion over 10 years. This week’s agreement would cut spending by about $900 billion and create a joint congressional committee to find $1.5 trillion more by Thanksgiving.
The downgrade comes at a treacherous time for financial markets, which are already unnerved not only by mounting concerns about government debt and the economy in the U.S., but also in Europe. The move could undermine confidence in our country and has the potential to pull the rug from under investors who are already on the edge. Financial experts say American consumers will most likely see higher interest rates in adjustable rate mortgages, car loans, student loans, and credit cards.
To read more on this topic visit:
• http://www.wgrz.com/news/article/130177/13/What-the-US-Credit-Rating-Downgrade-Really-Means
• http://www.usatoday.com/money/economy/2011-08-05-s-and-p-downgrades-credit_n.htm
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.
Decline in Foreclosure Filings Pushes Florida Court System into Deficit
Florida’s court system is facing a $72.3 million deficit as a result of a decline in foreclosure filings. The State Courts Revenue Trust Fund, established in 2009, is currently incurring the debt. Of the $462 million court system budget, about $370 million is currently funded by the trust fund.
Recently released data suggest that foreclosure filings may not increase any time soon. Although Florida holds the largest shadow inventory in the U.S. at more than 441,000 properties, the average home sits delinquent for 638 days, according to the National Association of Realtors.
It’s been recommended that an emergency plan be created to provide funding to the Florida court system. A temporary transfer of $28.5 million to the State Courts Revenue Trust Fund from the court’s Mediation Arbitration Trust Fund and Court Education Trust Fund is being scheduled to help alleviate the deficit.
To read more on this story, visit: http://www.housingwire.com/2011/03/23/decline-in-foreclosure-filings-pushes-florida-court-system-into-budget-deficit
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, P.A. website at www.miamibankruptcy.com.
Florida consumers carry 3rd highest debt in country
Over the past few months, we have heard a lot about Americans tightening their financial belts and using extra income to pay down debts. And for some, the post-holiday period is about paying off those Christmas bills. However, new numbers released by Equifax show that many consumers, especially those in Florida, are still carrying high credit card balances.
Equifax monitors credit throughout the country. The group’s recently released numbers indicate that consumers in Florida, California and Texas are maintaining higher credit card debt levels and people in other parts of the country. While these states face some of the toughest budget issues in the nation, so do their individual residents.
According to Equifax, Florida residents have $47.6 billion of collective credit card debt. This is the third highest total in the country. California ranks highest with $90.6 billion in debt, and Texas is number two with $48.8 billion in credit card debt. These states still have “a lot of debt to tackle,” as one senior vice president at Equifax put it.
Many individuals would like to pay down their credit card debt, but it seems that each month brings new financial challenges that stand in the day of reducing debt. When credit card debt becomes overwhelming, chapter 7 bankruptcy may be a good debt relief option. In this form of debt, consumers who cannot meet their financial obligations have an opportunity to discharge unsecured debt such as credit card bills.
CreditNet, “Many Americans still face serious credit card debt problems,” Thomas Astery, 28 Jan 2011
Tips for Dealing with Debt Collectors from Consumer Ally
As a consumer, it is important to know your rights if you are receiving harassing calls from collection agencies. Even if you do owe money, you still have rights. Thanks to federal laws such as the Fair Debt Collection Practices Act consumers are protected from unscrupulous means of debt collection.
Below are some tips for dealing with debt collection calls and understanding the rules:
1.) Debt collection calls have limits. Collectors cannot call you before 8 AM or after 9 PM, or at your work.
2.) Do not ignore a debt collector, even if you do not believe you are responsible for the debt. The Federal Trade Commission advises that you send a letter by certified mail with a return receipt. After that, they cannot contact you again except under very specific circumstances, such as filing a lawsuit against you.
3.) Debt collectors cannot discuss your debt with just anyone. They can contact others about your debt, but only to find ways to contact you. They may not discuss your debt with anyone but the person who owes the money, their spouse or their lawyer.
4.) Notification must be in writing. After you have been called by a collector, they are required to notify you within 5 days in writing with a statement of what you owe and a means to object if you dispute the debt.
5.) Abusive debt collection practices are prohibited. Debt collectors are forbidden from harassment or abuse, including threats, obscenities and repeated phone calls.
6.) Debt collectors must identify themselves. Debt collectors are forbidden from misrepresenting who they are what you owe and that owing money is a crime.
7.) Interest rates capped. Collectors cannot charge interest above what is permitted by state law.
8.) Garnishment is restricted. Garnishment is allowed only if you are sued and lose and the court orders that action.
9.) As a consumer, you can sue. You can sue a debt collector for violating the Federal Debt Collection Practices Act for both damages suffered by their acts and for simply violating the rules. You can recover actual damages and up to $1,000, plus court costs and attorney fees if you win, even if you didn’t suffer a specific loss due to the collection activity.
To read more on this story you can visit…
http://www.walletpop.com/blog/2010/11/05/10-tips-for-dealing-with-debt-collectors/
If you have any questions on this topic please feel free to contact bankruptcy attorney, Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
