(Toll Free) 888-420-4791
(Fax) 888-522-4669
(Email) info@aci-solutions.com
LATEST NEWS
Nov 03, 2011
Debt Settlement Firms Outfox the Regulators
Debt settlement companies—which promise to negotiate with creditors on behalf of strapped consumers—are switching tactics to skirt new consumer protection rules. The debt settlement business has boomed in recent years as more Americans find themselves unable to keep up with credit-card balances and other loans. The number of debt settlement firms grew tenfold, to about 1,000 in 2010, from 100 or so in 2007, according to estimates by Andrew Housser, an executive board member at the American Fair Credit Council, an industry lobbying group.
Oct 15, 2011
Margate debt relief business under investigation
Falling behind on credit cards and other bills, consumers across the country turned to a Margate debt relief business that offered a way out but they say took their money and failed to pay their creditors. United Financial Systems, Inc. has drawn more than 440 complaints to the Federal Trade Commission since the beginning of 2010, the most of any South Florida business. Florida's attorney general is investigating and gave the company until the end of August to issue refunds to its customers, but some are still waiting for their money. "I was promised a refund back in March,'' said Louis Schmuck, a sheriff's deputy in Hubbard, Ohio, who said he is owed more than $2,000. "I'm still sitting here with a lot of unpaid bills and a big mess.''
Oct 04, 2011
Debt Firms Play 'Whack-a-Mole' to Skirt Fee Ban
Debt-settlement companies that offer to negotiate with creditors on behalf of consumers are switching tactics to skirt rules banning up-front fees by working with lawyers and charging retainers. "It is like playing whack-a-mole", said Suzanne Martindale, a San Francisco-based staff attorney for Consumers Union. "We do expect we'll continue to see more businesses cropping up trying to exploit loopholes." The U.S. Federal Trade Commission in October 2010 barred debt-settlement companies that use telemarketing from accepting up-front fees. The rule stemmed from complaints about practices that included charging thousands of dollars in fees on promises to reduce consumer debt and never delivering, according to a 2010 report by the U.S. Government Accountability Office.
Sep 27, 2011
Debt Settlement Company Fined for Violating State Law
The name "Legal Helpers" should inspire confidence that a legal problem would be addressed in a professional manner. However, that is the opposite of what a Chicago-based debt settlement company offered clients with debt problems. According to a Chicago Tribune report, the Illinois Department of Financial and Debt Regulation (IDFDR) levied a $314,000 fine against the company for providing debt relief services through an attorney who was not licensed to practice law in the state of Illinois.
Aug 24, 2011
FTC Halts Credit-Card Debt Relief Business
The Federal Trade Commission halted the operations of Debt Relief USA Inc. in a proposed settlement of allegations that the credit-card-debt relief business lured consumers into paying thousands of dollars in upfront fees, but in most cases failed to lower their debts--and in many cases left them .
Aug 10, 2011
Debt settlement company fined, ordered to stop operating in Illinois
A Chicago-based debt settlement company, Legal Helpers Debt Resolution, has been fined $314,000 for what the state financial regulator described as “exploitation of financially vulnerable families.” The Illinois Department of Financial and Professional Regulation issued a cease and desist order saying Legal Helpers operated in the state without an appropriate license and failed to provide legal representation to consumers. The order said that Jeffrey Hyslip, who is not licensed to practice law in Illinois, improperly signed up at least 314 Illinois consumers for the Legal Helpers program.
Aug 10, 2011
Homeowner Mortgage Payment Debt Relief Options From Banks May See Expansion
There may be changes currently in the works that could benefit homeowners who are delinquent on their mortgage or suffering from financial distress as some of the top mortgage servicers in our nation who are being pursued by prosecutors regarding various foreclosure practices and questionable paperwork could reach a settlement where homeowners might benefit from further mortgage payment debt relief options. Currently, homeowners have a variety of foreclosure prevention assistance plans in place that may help their particular situation but not everyone has been able to benefit from these programs and, as a result, there are continued cries for further assistance programs to be made available. Yet, some prosecutors have suggested that if banks will be given the opportunity to forgo various fines that may arise if liability on the part of these institutions is found in these cases if they will provide further assistance to help distressed homeowners find debt relief on their mortgage. Early outlines of these options that may be offered as an alternative to further fines and costs to these banks may require that a homeowner who has their mortgage owned by one of these banks in question be in a position of financial distress but have a mortgage obligation that requires at least 25% of their mortgage income.
Aug 09, 2011
AG reaches agreement with debt-settlement firm
AUGUSTA — The state Attorney General's Office has reached an agreement with a Texas-based debt-settlement company accused of violating the Maine Unfair Trade Practices Act through an advance fee debt settlement scheme. Credit Solutions of America and its owner, Douglas Van Arsdale, agreed to enter into a consent judgment to settle allegations of unfair trade practices. Since 2003, the company promised Maine consumers it would negotiate with their creditors to settle their credit card and other unsecured debts. The company claimed it could eliminate 40 to 60 percent of a consumer's debts. The company collected advance fees of up to 15 percent of the total debt to be negotiated. It held the consumers responsible for the enrollment fees regardless of whether all the debt was settled. Of the 561 Maine consumers who enrolled and paid advance fees, only six had 40 percent of their debt settled.
Aug 08, 2011
Personal Bankruptcy Filing Down 12.2% in Q2 2011
The number of people who engaged in bankruptcy filing in the second quarter of 2011 has reduced by 12.2 percent compared to the same period in 2010, according to the second quarter figures for 2011 released by the Insolvency Service. A total of 30,513 people went bust or entered into an Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO) between April and June 2011. On the other hand, a statistics released by accounting firm Johnston Carmichael revealed that the number of corporate bankruptcy filing in Scotland for the last two quarters hit 1365, the highest number of insolvencies ever recorded and amounting to four companies going bust every day.
Aug 08, 2011
Can't pay your debts? Why you should still care about your credit
First, a single 30-day late payment on your credit card account could drop your FICO credit score by anywhere from 60 to 110 points, depending on how high your credit score is before the late payment. For example, if you started with a FICO score of 780, the late payment could drop your score down to 670. But if your score was 680, it could lower it to 620. This may not mean much to you because you have decided you don't care about your credit rating, but others in your life may care a great deal about your lower credit score. The obvious persons of interest would be potential lenders. However, other less obvious people judge you by your credit history as well. Your insurance companies may consider you a greater risk with the negative change in your credit, and they may increase your home and car insurance premiums when your policies renew. You may also find it more difficult to secure a lease for housing if your credit is not so good. Lastly, you might be passed over for a new job or promotion if you have less-than-stellar credit.
Jul 29, 2011
Swipe it! When it's Smart to Pay with a Credit Card
Credit cards have gotten a bad rap recently and for good reason: if not used responsibly, they can lead quickly lead to burdensome financial debt. According to Creditcards.com, the average credit card debt per household with credit card debt in the U.S. stands at $14,687. The 2008 financial crisis unveiled our nation’s debt crisis and put credit card companies under the scrutinizing eye of federal regulators. The CARD Act, which was signed into law by President Obama in May 2009, was designed to protect consumers from unfair credit card practices and eliminate predatory credit card lending tactics. But experts say whipping out the plastic isn't always a bad idea. The key is keeping track of purchases, evaluating whether transactions make financial sense and paying them off on time.
Jul 27, 2011
Your debt's probably growing faster than government's
Individuals are living beyond their means at an even greater rate than the government is, based on recently released household-debt figures. U.S. household debt totaled $13.4 trillion at the end of 2010, or about 107 percent of the $12.5 trillion Americans earned in total household income last year, according to the Federal Reserve. The government's total debt of $13.8 trillion represented about 94 percent of the $14.7 trillion in national income, or gross domestic product (GDP), last year.
Jan 11, 2011
Debt settlement industry in flux as new rules start
More than two months after the start of new federal rules designed to curb abusive practices of shady debt settlement companies, advocates complain that consumers are still being duped into signing up for the services. Although the industry best known for late-night television commercials promising to help debtors settle outstanding credit card bills for pennies on the dollar has changed since the new rules took effect, consumer advocates say that change hasn't necessarily been for the best and hasn't come quickly enough.
Dec 23, 2010
Debt Settlement Companies Are Still Skirting New FTC Rules
Back in September, we told you about new Federal Trade Commission (FTC) rules aimed at debt consolidation companies. The rules were designed to clamp down on scam artists who dominate the debt consolidation industry. Well, it seems some of those so-called debt relief scoundrels have figured out a way around the rules. The FTC imposed new rules on September 27, 2010 that banned debt-fixers from engaging in telemarketing that misrepresented their services, such as promising to cut your debt in half or charging fees before services are delivered.
Oct 27, 2010
FTC bans upfront fees for debt settlement firms
For-profit debt settlement companies that promise to negotiate lower credit card debts can't charge consumers fees until they actually settle their debts under Federal Trade Commission rules that took effect in 2010. The rules were developed in response to complaints from debt-ridden consumers and legitimate consumer credit counseling agencies who said shady debt negotiators often didn't deliver on ads promising to reduce debt. Instead, the services advised consumers to stop paying their credit card and other bills while paying debt settlement companies hefty monthly fees.
Jul 29, 2010
FTC Issues Final Rule to Protect Consumers in Credit Card Debt
Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.
May 31, 2010
Your request is being processed... Bank Of America To Start Reducing Principal On 'Underwater' Mortgages
The bank, the largest mortgage servicer in the country, said Wednesday it will forgive up to 30 percent of some customers' total mortgage balances. The homeowners must have missed at least two months of mortgage payments and owe at least 20 percent more than their home is currently worth. The plan is the newest provision of an agreement the Charlotte, N.C.-based bank reached 18 months ago with state attorneys general to settle charges over high-risk loans made by Countrywide Financial Corp.
Apr 30, 2010
Debt settlement companies could face tighter rules
NEW YORK - Debt settlement companies that charge high fees and mislead consumers would be more tightly regulated under new legislation introduced Wednesday. The proposed law, put forward by Sens. Charles E. Schumer, D-N.Y., and Claire McCaskill, D-Mo., comes as complaints about the debt settlement industry have soared amid the economic downturn. Under the legislation, companies wouldn't be able to collect fees until a settlement was reached. Consumers also would get clearer upfront disclosures, including a detailed list of all costs and promised services. Typically, the settlement firms promise to negotiate with credit card companies to reduce the amount that consumers owe. Costs vary, but a company might charge up to 20 percent of the total debt. Fees are usually demanded upfront, even though a settlement may never be secured. Hiring a debt settlement company doesn't stop the collection calls either. Interest and financing charges continue racking up too, and lenders may even decide to sue in the meantime. Consumer groups note that individuals can negotiate directly with lenders, and that credit card companies often refuse to negotiate with debt settlement companies. Even if a settlement is reached - either independently or through a third party - it can severely hurt the consumer's credit score. Under the Schumer-McCaskill bill, consumers would have the right to cancel a debt settlement contract and get a full refund. The legislation would provide for enforcement through state attorneys general and the Federal Trade Commission. The federal agency also would be given authority to regulate the industry's advertising and marketing practices.
Apr 05, 2010
How the Credit CARD Act will affect types of credit cards
How will the CARD act affect you? That depends in part on which type of credit card you've got in your wallet. The combined impact of the economic downturn and the restrictions placed on credit card companies by the Credit CARD Act mean card issuers will be changing how they do business in ways that will affect every credit card -- but the impact will vary depending on the type.
Mar 26, 2010
Program Will Pay Homeowners to Sell at a Loss
In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave. This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration's most aggressive attempts to grapple with a problem that has defied solutions...
Mar 02, 2010
New Credit Card Laws
A new set of credit card rules takes effect February 22, 2010 and you should be aware of the new rules. The new credit card laws are positive for consumers and offer consumers a new set of protections. The credit card rules include new rules on what credit card companies have to tell you, new rules on credit card rates, credit card fees and credit card limits. Some of the most helpful rules for consumers is that credit card companies have to tell you how long it will take to pay off a credit card if you only make the minimum credit card payments. In addition, if you make more than the minimum credit card payment any month, your credit card company must apply the excess amount to the balance with the highest credit card interest rate.
Jun 26, 2009
Chase to Increase Minimum Payment On Credit Card Balances
Effective August 2009, many Chase credit cardholders will see their monthly minimum payment more than doubled. Chase recently made the announcement via mail that minimum payments would increase from 2% to 5% of the current balance. That means if your current minimum payment is $250, your new payment would be $625. It seems that the minimum payment increase is targeted at cardholders with low interest rate balance transfers. Chase couldn't raise interest rates on these balances because it previously promised cardholders low rates for the life of their loans. So Chase found another way to make money off these cardholders, in the short run at least. Assuming customers were actually able to afford the payment increase, Chase would only have an increased cashflow for the few years or so until these balance transfers are repaid. In the end, they lose out on a lot of interest that would have been paid under the lower minimum payment.
May 22, 2009
Obama signs credit card reforms into law
President Barack Obama signed new credit card rules into law Friday, starting the clock ticking on the advent of a host of consumer protections slated to start as early as August. Consumer protections will be phased in over the next 15 months with the earliest starting Aug. 20, 2009. By that date, all card issuers must begin giving 45-day advance notice of significant changes in card terms. That is also the deadline for giving consumers at least 21 days (instead of the current 14) to pay their monthly credit card bills. (See an interactive timeline of how the bill became law and when its provisions take effect.) The bulk of the consumer protections -- limiting when interest rates can be increased, banning universal default and double-cycle billing, and restricting credit cards for minors, among others -- take effect Feb. 22, 2010. The timing of the law was a major point of contention during Congressional debate on the bill. Consumer advocates argued families struggling in the recession needed help sooner while banking lobbyists pushed for more time to implement changes in billing, operations and computer systems required by the law. Provisions for restoring interest rates to previous levels if cardholders show six months of good behavior do not start until Aug. 22, 2010. Making gift cards valid for at least five years and requiring that fees are reasonable also take effect by August 2010.
Apr 30, 2009
Mortgage Bankruptcy Bill fails in the Senate
WASHINGTON - The Democratic-controlled Senate on Thursday defeated a plan to spare hundreds of thousands of homeowners from foreclosure through bankruptcy, a bill President Barack Obama embraced but did little to see it through. A dozen Democrats joined Republicans in the 45-51 vote to scuttle the bill, which Obama had said was important to saving the economy and promised to push through Congress. But facing stiff opposition from banks, Obama did little to pressure lawmakers who worried it would encourage Bankruptcy filings and spike interest rates. “The vote today was a bipartisan rejection of an interest-rate hike, which is exactly the wrong solution for jobs, homeowners and the economy,” said Senate Republican Leader Mitch McConnell of Kentucky.
Apr 20, 2005
President Bush signs 2005 Bankruptcy Reform Bill
So, experts say, if you were thinking about filing for bankruptcy, you might think twice -- or act twice as quickly, since major provisions of the law will go into effect six months from the day the law is signed. Individuals filing for bankruptcy usually do so either under Chapter 7 or under Chapter 13. In a Chapter 7 bankruptcy, your assets (minus those exempted by your state) are liquidated and given to creditors, and many of your remaining debts are cancelled, giving you what's known as a "fresh start." In 2004, over 1.1 million people filed for Chapter 7, accounting for roughly 72 percent of non-business bankruptcies. Since many Chapter 7 filers don't have assets that qualify for liquidation, credit card companies and other creditors sometimes get nothing. In a Chapter 13 bankruptcy, you're put on a repayment plan of up to five years. Any debts not addressed by the repayment plan don't have to be paid. Last year, there were 445,574 Chapter 13 filings. Under the new law, fewer people will be allowed to file under Chapter 7; more will be forced to file under Chapter 13.
- New York
- Los Angeles
- Chicago
- Miami
- San Francisco
- Boston
- Houston
- Arizona
- California
- District of Columbia
- Florida
- Illinois
- Indiana
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Missouri
- Nebraska
- New Mexico
- New York
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- Texas
Designed & Developed By: imicreation