http://www.destroydebt.com/ Destroy Debt is an online community which provides regular articles showing practical ways to eliminate debt. www.destroydebt.com Sat, 07 Nov 2009 01:45:18 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/articles/midland-funding-collections.html http://www.destroydebt.com/articles/midland-funding-collections.html Tue, 27 Oct 2009 06:00:00 GMT Midland Funding, LLC is an incredibly popular search term. A recent search of Google for "Midland Funding, LLC" showed 2,270,000 results, the first several pages of which were accounts of problems with Midland Funding, LLC and results of court cases.

According to the Better Business Bureau, Midland Funding, LLC, is owned by Encore Capital Group, Inc. and operates in several locations, including San Diego, CA, Phoenix AZ, St. Cloud, MN and Gurgaon, India. The Better Business Bureau has another listing for Midland Funding, LLC in North Carolina, but it reports that location is out of business. 


Encore Capital Group, Inc. is a debt collection agency that purchases unpaid debts from credit originators and attempts to collect those debts from consumers. The umbrella company for Midland Funding, LLC, states on its website that it holds integrity, respect, fairness and collaboration as values. Looking through several pages of results for Midland Funding, LLC, however, suggests otherwise. 


While many people hold debt collection agencies in contempt, they do provide a legitimate business service by attempting to collect unpaid debt. However, debt collection agencies are required to act within the law, as spelled out in the Fair Debt Collection Practices Act, a federal law enforced by the Federal Trade Commission. Many states have their own debt collection laws, which can differ from the federal regulations, so whenever someone has questions regarding a debt collection agency, it is wise to consult the laws in your state. The Fair Debt Collection Practices Act does allow debt collection agencies to collect money owed to others, within the guidelines under the act. Debt collection agencies, including Midland Funding, LLC, may not harass, threaten or abuse consumers, nor may the use unfair or deceptive practices to collect a debt. 


The Encore Capital Group, which lists Midland Funding, LLC as one of its business names, has an A+ Rating from the BBB and is an accredited Business with the BBB since May 2000. This means the Encore Capital Group, Inc. and, presumably, its subsidiaries meet the standards set by the Better Business Bureau. There is no doubt, however, that Google Search Engine Results Pages show complaints against Midland Funding, LLC some 30+ pages deep. 


If you have dealings with Midland Funding, LLC, or any other debt collection agency, they must follow the guidelines set forth in The Fair Debt Collection Practices Act as well as in the state in which business is conducted.  
 ]]> http://www.destroydebt.com/articles/javitch-block-rathbone-collections.html http://www.destroydebt.com/articles/javitch-block-rathbone-collections.html Tue, 27 Oct 2009 06:00:00 GMT Javitch, Block and Rathbone, LLP is a predominant Ohio based law firm that specializes in collections.  They are the fourth largest collection law firm in the country.  Their offices are located in Cleveland, Cincinnati and Columbus Ohio and they service a three state radius including Ohio, Indiana and Kentucky.  Most often their clients include banks and credit unions, department stores, credit card companies, medical billing companies, insurance companies and rental companies.
According to their website, Javitch uses highly specialized and aggressive techniques to collect money for their clients.  They have a team of highly experienced personal that work diligently to get the job done.  Each team member specializes in a particular area of collections to allow for the most promising results.  They are trained to use highly effective collection techniques such as skip tracing.  One of the reasons the law firm is so popular, is that it allows its’ clients to skip the middle man.  Companies seeking to collect past due money from faulty clients can avoid fees and the time that bills are held up in traditional collection agencies. 

Once Javitch receives a collection case, they analyze the situation and take immediate action.  Each case in handled individually.  With knowledge and experience the Javitch team of attorneys, collection specialists and other personal are easily able to determine which collection technique will work best with each case.  They then go to work to locate, contact and collect the amount due. 

Javitch is active in, and belongs to a variety of professional organizations that add to its’ repertoire.  These include The National Association of Retail Collection Attorneys, Commercial Law League of America and The American Collectors Association. 

Javitch, Block and Rathbone, LLP also has many well known clients including Chase Manhattan Bank, Toyota Motor Credit and General Electric Capital Corporation.  Their clients have helped Javitch to be recognized and rewarded for their top notch performance. 

On the flip side, it is important to note that Javitch Collections is not accredited by the Better Business Bureau.  Not only are they not accredited, but their Better Business Bureau ranking is only a C-.  The BBB reports that over the last 36 months they have received 39 complaints with 35 of those complaints being of billing or collections issues.  In one such complaint the BBB shows that Javitch has refused to respond.  Keep in mind that these complaints could be coming from unhappy customers of the clients that Javitch represents, not their actual clients. ]]> http://www.destroydebt.com/articles/does-debt-management-cost-money-.html http://www.destroydebt.com/articles/does-debt-management-cost-money-.html Thu, 22 Oct 2009 06:00:00 GMT With today’s economy, debt management is at the forefront of almost everyone’s mind. However, many people may be confused about where to start managing their debt. They may believe they have to spend large amounts of money on debt management assistance.

Debt Management Doesn’t Have to Cost Money 


If you’re concerned about managing your debt, you are probably watching your money very closely and don’t want to spend it frivolously. The good thing is there are many free sources of debt management information available to you. 


Search the Internet for Debt Management Resources 


Thanks to the internet, access to debt management information is easy and convenient. Search for phrases such as “debt management tips” or “debt management advice” to get started. Watch out for sites that charge you a fee for these tips or require you to enter personal information – sites like this are often not legitimate. 


Reduce the Number of Your Debts 


Many people owe money to several places. If you can reduce the number of these creditors, you can manage your debt easier. For example, many people have several store credit cards or loans. If you are able to reduce the amount of store credit cards you have, or consolidate your loans, you can have a more manageable debt load. 


Create a Budget 


A budget is essential for debt management. This should include all income (such as salary, pension or child support) and expenses (such as car payments, groceries, entertainment and rent). If you aren’t sure about your expenses, start keeping all your receipts and store them in the same location for easy reference. Once you’ve created your budget, you should be able to judge where you can reduce your spending or increase your income. This will help you feel more in control of your finances. 


Negotiate With Credit Card Companies 


If you’re struggling to make credit card payments, there is hope. Credit card companies want to get paid as much as you want to pay them, so they are often open to discussing payment plans or a reduced interest rate. Even if your payment history isn’t stellar, your credit card companies may be able to work something out with you.  
 


Managing your debt may be a cause of concern for you. With these free sources of debt management, you can take steps towards reducing your worry and returning to financial health sooner.]]> http://www.destroydebt.com/articles/how-debt-collection-agencies-collect-fees.html http://www.destroydebt.com/articles/how-debt-collection-agencies-collect-fees.html Thu, 22 Oct 2009 06:00:00 GMT Debt settlement is the process in which a creditor agrees to accept less than the full amount owed, but considers the debt cleared.  The debt settlement companies we see advertised in print and on TV claim to negotiate reductions of up to 50 percent.  

Repayment plans can take between two and four years.  However, settlement companies charge fees for their services, usually through one of two approaches.  In one approach the company’s fee is a percentage of the total debt, typically between 18-30 percent. As a part of other approach the company bases their fees on the amount of debt reduction they can negotiate. The fees in this case be as high as 35 percent. 


Many debt settlement companies charge a monthly fee as a part of the program.  The fees range from $18-$89 a month. It’s unusual for settlement fees to total thousands of dollars. 


Some debt settlement companies collect their fees before your creditors see a dime. It could be months before your creditors secure payments. Beware! Sometimes debt collection agencies suggest you stop payments to credit card companies and begin making payments into a third party account.  They then attempt to negotiate a settlement for you with your creditors once enough money is in the account.  This may take several months, depending upon the amount of the debt.  In the meantime, your debt continues to grow, penalty and interest fees continue to accrue. Now you owe more than when you started out.  Worse yet, legal actions such as wage garnishment or judgment may be filed against you. 


Most consumers don’t know that that debts paid off through settlement show up as “paid off by settlement,”  on your credit report.  If you apply for loans or credit when reviewing your report the prospective lender will see the debt was paid through settlement.  This indicates that your repayment didn’t cover what was owed, and the creditor accepted lesser amount.  This will affect the decision to lend or grant credit, a fact not openly shared by a number of debt collection agencies. 


The debt settlement industry is new and largely unregulated.  There are a number of new and inexperienced companies who are unfamiliar or simply don’t care about the laws and regulations that should guide the industry.  It’s a recipe for disaster for the uninitiated, uninformed, in debt consumer.  If you decide to use a debt collection agency to clear your debt issues do your homework. Make sure your money gets put in a third party account and that no money is paid to your agency before payments to creditors are made. Set a reasonable time frame to pay off the debt. Make sure your agency answers all your questions before you agree to their terms. Only then will you feel confident that you’re on your way to recovery.]]> http://www.destroydebt.com/articles/eric-berman-pc.html http://www.destroydebt.com/articles/eric-berman-pc.html Wed, 07 Oct 2009 06:00:00 GMT Eric Berman, P.C. is a group of attorneys specializing in bankruptcy law, consolidating debt and legal services across the country.    On July 22,2009 New York Attorney General Andrew Cuomo filed suit against Berman, 34 other law firms and two debt collectors for failure to properly notify consumers of pending legal action regarding debt collection.
On July 22,2009 New York Attorney General Andrew Cuomo filed suit against Berman, 34 other law firms and two debt collectors for failure to properly notify consumers of pending legal action regarding debt collection.  

All of the companies named in the suit employed American Legal Process to notify New York consumers that they were being sued for failure to repay a debt.  American Legal Process did not follow proper protocol when serving the consumers.  This caused thousands of default judgments to be entered against New York consumers. None of those who had default judgments against them had a chance to respond or defend themselves against the charges. 

ALP was hired as a legal process server by high-volume debt collection law firms to serve summons or complaints notifying consumers that they are being sued and that they must respond. ALP did not notify them correctly thereby denying them the opportunity to respond in court or in writing.  For many New Yorkers the first inkling they had they were in any kind of trouble was when their bank accounts were frozen or their wages were garnished. According to the suit American Legal Process falsified sworn affidavits of service. The false affidavits of service were used to obtain defaults against the consumer. The law firms and debt collectors filed more than 100,000 suits across the state of New York. 

In most states the process server must be an impartial third party. Once the notice has been delivered the process server is expected to file an affidavit of service with the court verifying that the named defendant has been served properly and that in turn is added to the case file.  In the New York case, American Legal Process neglected their duties and falsified documents repeatedly. By seeking default judgments the law firms made use of the falsified documents that claimed the defendants had been given proper notice.  The case is meant to correct the large number of improperly obtained default judgments.  

The case seeks to: 

  Require the firms involved to inform New York State court system of each action in which they used ALP to serve legal process and in which cases a default judgment was granted. 

Notify all parties in those actions of the existence of the lawsuit and their right to be heard. 

Notify the court of amount of any default judgments taken in any relevant actions as well as whether the debtor paid any amount to satisfy the default judgment.]]> http://www.destroydebt.com/articles/allied-interstate.html http://www.destroydebt.com/articles/allied-interstate.html Wed, 07 Oct 2009 06:00:00 GMT Allied Interstate is headquartered in West Palm Beach Florida and has been in operation for some thirty years. It has received an F ranking the Better Business Bureau who states, ”We strongly question the company’s reliability for reasons such as:

• They have failed to respond to complaints
  

• Their advertising is grossly misleading
  

• They are not in compliance with the laws licensing or registration requirements.
  

• Their complaints contain especially serious allegations or the company’s industry is known for is fraudulent business practices.

Allied runs large call centers in the U.K, India, U.S, Philippines  and Canada for purposes of debt collection. They are also known as IRMC or Intellirisk Management. Services include debt collection, accounts receivable management, financial services for government agencies and utilities. The debt collection arm of the company has netted Allied hundred of millions from consumers who are unaware of their rights regarding Allied ‘s collection practices. 

Allied has had numerous complaints filed against them stating that even when the amount demanded was paid consumers failed to receive credit for the payment or were charged again. They also have received complaints for trying to collect debts that had already been paid off years ago and the account was never closed. Other complaints range from unprofessional behavior on the phone to the use of inappropriate language in an effort to collect a debt.  

In several states Allied has attempted to collect debt from the wrong person. They initiate debt collection over the phone without sending a letter to the consumer first. When the consumer disputes the debt over the phone they are informed that in order for Allied to consider the consumer’s claim valid they must have proof in writing. They must prove the debt has been paid or they are not the person from whom the debt should be collected, in effect that they are innocent.  

When the request is made by the consumer over the phone to have the bill sent(as is their right) in order to see it in writing it has been refused or ignored.  It has taken the intervention of the Minneapolis Attorney General’s office in one case to settled Allied’s hash. 

The Better Business Bureau is rife with cases of Allied employees harassing friends and family of their targets trying to collect debt, though this a clear violation of the Fair Debt Collection Practices Act. Article 806 states,” A debt collector may not engage in  any conduct the natural consequence of which is to, harass, oppress, or abuse any person in connection with the collection of a debt.” It seems that anyone dealing with Allied should be aware of their rights and be prepared to document the whole ordeal.]]> http://www.destroydebt.com/articles/debt-collection-laws.html http://www.destroydebt.com/articles/debt-collection-laws.html Thu, 01 Oct 2009 06:00:00 GMT If you are behind in payments and the debt collectors are beginning to call, you might want to educate yourself on what actions bill collectors legally can and cannot perform. Before outlining the do’s and don’ts, it is important to recognize most debts expire at some period of time. Check your state’s statute of limitation for details specific to you.
In addition to your state’s debt collection laws, there is a federal act that protects consumers from harassment and unfair practices. The Fair Debt Collection Practices Act (FDCPA) outlines the rules bill collectors and collection attorneys must follow when attempting to recover debt. Rules from the act you should know:

Harassment is not allowed. Bill collectors can be very persistent. At some point, you may wonder if their persistency has become harassment. According to the FDCPA, bill collectors can not threaten you or a third party such as a family member or friend with violence or harm. Obscene or profane language is illegal as is repeatedly using the telephone for the purpose of annoying you.  Collectors also cannot embarrass you by publishing a list of those who owe money.

Making false statements is not allowed. Bill collectors can be very inventive when trying to recover a debt; however, making false statements to try to get you to pay is a no-no. Bill collectors can not lie when trying to collect from you.

Your wages or bank account can be garnished. If you have failed to pay a debt you owe, a lawsuit was filed and the court ordered your bank account or wages to be garnished, this is totally legal.

Contacting you at inconvenient hours is a violation. Calling before 8:00a.m. or after 9:00p.m. is considered inconvenient unless you have agreed to it.

Contacting you at work may be allowed. Unless you have told the bill collector (verbally or in writing) that you cannot accept personal telephone calls at work, bill collectors can continue to contact you at work.

Your friends and family can be contacted. While your debt can not be discussed, bill collectors can legally contact your family and friends (also known as a third party) in order to obtain information about your location. In particular, they are seeking information on your address, telephone number and place of work. Unless the third party gave false or incorrect information, they can only be contacted once by the bill collector. 

If you think a bill collector or collection attorney has violated the rules of the Fair Debt Collection Practices Act, you do have recourse. You can sue the bill collector; however you must file suit within one year from the date the law was violated. Be sure to safely secure all evidence of violation of the law. If the bill collector’s actions were verbal, journal the entire conversation for use in court. ]]> http://www.destroydebt.com/articles/consolidating-credit-card-bills.html http://www.destroydebt.com/articles/consolidating-credit-card-bills.html Thu, 01 Oct 2009 06:00:00 GMT Americans love credit cards. About 14% of us carry 10 or more. That's nuts. On average, we carry about $4,000 in revolving credit per person, or around a trillion dollars for the whole country. This trend has been steadily increasing for the last decade. We like our credit cards.

Credit Card Trends

Americans love credit cards. About 14% of us carry 10 or more. That's nuts.

On average, we carry about $4,000 in revolving credit per person, or around a trillion dollars for the whole country. This trend has been steadily increasing for the last decade. We like our credit cards.

What we don't like is the new approach credit card companies are taking to make money on that outstanding debt. New credit card legislation came into effect August 20th, 2009. The act changes the way credit card companies can make money from us by reducing the interest rate jumps and penalties for missed payments.

Under the new law, some of the old ways credit card companies extracted money from their customers have disappeared. They are left to make money in other ways -- higher initial interest rates and introducing annual fees. This means the money you have outstanding may suddenly cost you more, even if you don't miss any payments.

• Consolidation

This is where consolidation comes in. Why pay 5, 6 or more different cards, all with different interest rates (and new annual fees) when you can combine all the debt into one package, maybe with a lower overall interest rate?

The math makes sense. The problems come in when you start looking over the options.

• Teaser Card -- The old way was to sign up for a 'teaser card', one with an introductory, artificially low rate, no annual fee and a higher enough balance to transfer all your debt to the new card. This is one way we got those 10 different cards in our wallets! It doesn't work anymore. Every credit card company is raising interest rates and considering annual fees. Most are also reducing credit limits. The days of card-hopping are largely over.
• Personal Loan -- The second popular way is to take out a loan (usually a credit union) with a fixed rate and simply pay off cards. This is still viable, but leads to a real danger of treating this new loan as something other than credit card debt and slowly building up your balances on the very same cards you just paid off.
• Home Equity Loan -- Those lucky enough to have equity in their homes in the current down market can take out a second mortgage to kill off major credit card debt. This is usually a low-to-medium interest fixed loan. The advantages are a small tax deduction and the possibility of paying off large debt. The downside is a loan that stretches out current obligations for years (possibly decades).
• Debt Relief Company -- With the downturn in the economy and the rise in credit problems for average consumers, debt consolidation companies have sprouted up to fill the need. These companies will negotiate on your behalf with credit card companies and act as a sort of escrow -- you pay them and they disburse the funds. You may still need to take out a loan of some type, but the advantage is one company to pay and usually a reduced penalty/interest rate agreement with your lenders.

 
The bottom line is that consolidation makes sense on one condition. The trap is that the sudden relief of getting out from under burdensome credit card debt will lead to a repeat of the free and easy spending that caused the debt to accumulate in the first place. Some of us love our credit cards so much we will simply forgive and forget. And a year or two later, we will be saddled with the same debt as before -- along with the original debt we consolidated.]]> http://www.destroydebt.com/articles/consolidate-debt-without-a-loan-.html http://www.destroydebt.com/articles/consolidate-debt-without-a-loan-.html Thu, 24 Sep 2009 06:00:00 GMT The world is full of those who have fallen unfortunate prisoners of debt.  Debt is an equal opportunity employer and does not discriminate in reference to race, color, sex or creed.  Debt will attach itself to anyone, the young and the old, the rich and the poor.  Debt is the universal medium that we all share and can certainly relate too.  Everyone eventually accumulates debt.  Let’s face it our world revolves around it.  When you buy a home you go in debt.   When you buy a car you go in debt. The Not So Wonderful World of Debt 

The world is full of those who have fallen unfortunate prisoners of debt.  Debt is an equal opportunity employer and does not discriminate in reference to race, color, sex or creed.  Debt will attach itself to anyone, the young and the old, the rich and the poor.  Debt is the universal medium that we all share and can certainly relate too.  Everyone eventually accumulates debt.  Let’s face it our world revolves around it.  When you buy a home you go in debt.   When you buy a car you go in debt.  When we obtain a credit card we go in debt.  Some tend to control their debt better than others.  Often circumstances beyond our control navigate our path.  The snowball affect of debt can be a nightmare.  Quite often people take out loans that place them deeper in debt to pay off old debt and the vicious cycle goes on and on.  It should be known that there is an alternative to this illusion of debt relief. 
 

No Loan Needed For Debt Relief Consolidation 

Loaning more money from financial institutions is not the answer to debt consolidation.  It is a cycle of madness that tends to benefit the lender or breakdown the system in the long run if you cannot repay the loan.  This cycle was one of the many problems that led to the global economic downturn over the last several years.  Financial institutions when on a loaning spree and too many people took on more debt that they could not afford.  The best way to confront debt is too cut off its growth potential.  By going through a debt relief company you can consolidate your debts into one single payment.  These professionals will contact your creditors and negotiate for you.  Often times they can acquire a reduction in your debt.  The benefits can be numerous. Your debt can be reduced and you only have one payment to make.  The interest rates are lowered and you no longer have to cringe when you answer the phone wondering if it is another bill collector.   
 

Summing Up Debt Consolidation without a Loan 

The ultimate goal is to always avoid bankruptcy.  This financially unhealthy alternative will leave scars on your credit that will endure the ages.  Just as damaging is the continuous cycle of loaning more money to repay off debt.  It is better to stop and regroup, circle the wagons so to speak, and take a more controlled and focused approach to debt consolidation.  If you find yourself drowning in an endless cycle of debt, contact a debt relief professional online.  You can achieve debt consolidation without a loan and obtain the financial peace of mind that you deserve.]]> http://www.destroydebt.com/articles/debt-consolidation-service.html http://www.destroydebt.com/articles/debt-consolidation-service.html Thu, 24 Sep 2009 06:00:00 GMT Many people today are finding themselves overwhelmed by the high cost of credit, which may include late fees and other penalties in addition to already hard to manage interest. To try to mitigate the high cost of credit, it might be wise to consider consolidating credit card.
A debt consolidation loan will allow you to pay off some or all of your other creditors at one time. If the debt consolidation loan offers a lower interest rate than your current creditors, that could be a huge monetary savings.

In addition to saving on interest, there could be other savings associated with paying off your creditors with one terminal payment. If you have a debt that has already been placed with a collections agency, you may be able to negotiate a one-time payoff amount that is lower than the total amount owed to the agency.  You could save 10, 20 or even as much as 50 percent of the total amount owed to collection agencies. In general, the older the debt is, the more willing these agencies are to negotiate a reduced payoff.

The downside of debt consolidation loans is that they often require you to put up your home as collateral either through a second mortgage or a home equity line of credit. If you still can’t pay your monthly bills, even after lowering your total monthly payments through the debt consolidation, you could lose your home or other assets you have put up as collateral.

It is also important to remember that the cost of the loan may include points that you pay separate from the stated interest rate. One point equals one percent of the total amount borrowed. You should calculate this cost in when determining how much money you will be saving by going forward with a debt consolidation loan.

Beware of telemarketers that claim to guarantee you a debt consolidation loan if you pay a fee in advance. Telemarketers are not allowed to guarantee that a consumer will get a loan or even that there is a high likelihood that you will receive a loan. That information is not available until a full application has been made and the loan agency has reviewed all of your financial information.

It is important to do your homework before accepting any offer of a debt consolidation loan. Calculate the real cost of all your debts. How much money are you currently paying in interest and penalties. Find out if any reduced payoffs are available. When comparing loan options, make sure to include all closing costs and ask how many points are being charged.]]>