How to Handle Abusive Debt Collectors

The debt collection industry is one of the most complained-about industries to the Federal Trade Commission (FTC). From 1999 to 2001 ( the latest years available) the debt collection industry was the #1 complained about industry in the USA. This is because, despite the Fair Debt Collection Practices Act, which regulates debt collection activities and behavior, too many debt collectors are poorly trained and informed and work in an industry with a very high turn over rate.

Another reason debt collector’s use abusive and use illegal tactics against debtors is that most debt collectors know they will get away with their illegal tactics and behavior. These are some of the reasons why. (1) most consumers are uninformed about debt collections laws; (2) it’s hard to prove the behavior occurred and it’s hard to prosecute it; and (3) there is a legal loophole in the law that allows debt collection agencies who get into trouble to simply close their current operation and create a new company and identity, and thus avoid any existing injunctions and continue to operate in the same manner.

What should you do if a debt collector is intimidating or harassing you?

Achieve Security will try to help you in several ways that are effective. If you notify us, right away, who called and what number they called you from we will get the proper information over to them that should help slow the calls.

You can also program your phone to forward the calls to our creditor hot line at 630-536-5250. This will re-route all of the calls to us. If you do not have the call forwarding feature on your phone, call your local phone company to inquire about it. It normally is only a couple of dollars each month.

Ultimately you do have the power to make sure they do not tread upon your rights. If you want to follow through with making a complaint we will help you with that.

1) Find out if the collector is violating the FDCPA or your state’s laws. If so, send the collector a certified letter, return receipt requested, telling them that you believe they are in violation of the FDCPA or your state’s laws.
2) You can file a complaint online at http://www.ftc.gov/ The FTC is the body in charge or regulating debt collection agencies. They will sanction the collection agency if it receives enough complaints from consumers
3) You can also gather evidence by recording phone conversation with the debt collection agency. If you can prove the debt collector used illegal tactics you can sue for damages under the FDCPA
Achieve security provides you a copy of the FDCPA on our newsletter each month. You can also find other information on our blog each week at our home page http://www.achievesecurity.com/

Blog link is at the very bottom of the home page

Bankruptcy Vs Debt Settlement

Q. Is Debt Settlement like Bankruptcy?

A: There is a major difference between Debt Settlement and Bankruptcy in many areas. Chapter 7 Bankruptcy remains on your credit report for a minimum of 10 years, whereas your charged-off accounts (the derogatory accounts) may remain on your credit file for only 7 years. Sometimes, these may be removed by a competent credit repair firm earlier. But be advised that most credit repair companies will just take your money and not deliver the promised results.

Never enter a Debt Settlement program, under the assumption that you will get the negative accounts removed in less than 7 years. To be safe, base your decision on the 7 year rule, then, if you are successful in removing negative accounts earlier, it will just be frosting on the cake.

Bankruptcy reporting on your credit file may also affect other areas of your life. Bankruptcy is a PUBLIC RECORD. Most counties report recent bankruptcies in the newspaper every month or every quarter. The is also a publication that most lenders subscribe to the provide them all the recent filings. Bankruptcies filings can be found at the county registry as it is considered public information.

So its important to understand that a bankruptcy is not easy to hide from and is considered public information.Most employers pull credit files on potential candidates. It is likely that the candidate without bankruptcy will have a better chance at the position. Additionally, some employers will not hire an individual with a bankruptcy on their credit file, period. Lastly, some positions will absolutely exclude a candidate with a bankruptcy. This is especially true for security jobs, high level management jobs, jobs at banks and financial institution and many other types of positions.

Bankruptcy can also cause issues with renting. Many landlords will not rent to individuals with a bankruptcy file. While, landlords cannot discriminate, they may legally not rent to someone based on their credit profile.

Bankruptcy can also exclude you from loans in the future. While its true that some creditors will grant credit after a person files bankruptcy, (although there is typically a waiting period) some creditors will not grant a loan to anyone with a bankruptcy on their credit file. Most loan applications ask if you have filed bankruptcy in the past 10 years, and some actually ask if you have ever filed for bankruptcy. Although the question – have you ever filed for bankruptcy may not be a lawful question, nonetheless, if you do not answer it, it will raise a red flag and if you answer “no” you will not be truthful.

No matter how you cut it, bankruptcy can affect many areas of your life and should be avoided at all cost. It should be your last resort. You should not file bankruptcy until all your options have been exhausted or at the very least explored, unless you have come to the decision that you have no other viable options.

What is the difference between a Debt Settlement Program and Debt Management Plan

Q. What is the difference between a Debt Settlement Program and Debt Management Plan (DMP)?

A:Debt Management

In a debt consolidation programs, also known as a Debt Management Plan (DMP), you pay back 100% of your debt plus interest. Interest is commonly reduced to the 8% to 10% range. Additionally, Most Debt Management Companies have a monthly service fee tacked on to your monthly payment. Most people pay back about 130% of their debt over 5 to 6 year period. Debt Management has a moderate affect on a good credit file and will improve most poor credit files.

Debt Settlement

In a Debt Settlement program, most pay back an average of 40-50% of their total debt, including all agency fees as well as accruing fees and interest. This 40-50% figure is based on your starting balances.

In some cases, where a client has very challenging creditors combined with a good income, liquid assets, etc., Certified Debt Specialists may end up with what they consider to be a less than perfect result and pay back may be in the 60% range. This is still a substantial savings for most clients and proves to be an effective program.

Also, the contrary is true. Certified Debt Specialists often are able to obtain total settlements including fees in the 40% range when the factors are just right.

Most clients are able to liquidate their debt in 2 to 3 years vs. 5 to 6 years in the DMP and the monthly payment is commonly smaller than a Debt Management Payment for the same debt.

Debt Settlement has a major impact on good credit but will improve credit for people that are 6 months or more past due. This improvement in credit profile is caused by bringing outstanding balances down to a ZERO balance
From "International Association of Prefessional Debt Arbitrators"

Holiday Spending Habits

The holiday season is just around the corner and you may be thinking about all the holiday costs. We agree that Christmas should be a wonderful time of year and can be if you keep spending under control.

Many people sacrifice quite a bit to supply Christmas gifts for loved ones. A recent article on British news site “24/7” stated that the average Britain spends $351 dollars per family for holiday gifts. In contrast, American families spend an average $859 per holiday according to the American Research Group.

Are Americans too caught up in “keeping up with the Joneses”? It is a good question, especially when considering the credit card debt that builds after each Christmas season.

While many may make a point of saving for a car or for their child's education, few people plan ahead for their annual holiday spending. If you are paying down debt, it may be time to cut back on the Christmas spending. You don’t have to skip the holiday, just be more like the British and spend less. Or you could decide to make a gift or give a gift of your time to a family member rather than spending cash.

But we understand that holiday cash requirements can arise and times get a little tougher around the holidays. Therefore, Achieve Security has programs designed to help get you through the seasonal crunch.

Too often, we see clients drop out of their debt program entirely without discussing their options. We would be happy to discuss reducing your payments during November and December. But remember, any decrease in payments will increase the time necessary to free you from debt. Still, it is better to stay with your program through the holidays so that next year can truly be a happier New Year!

Please call our client services department at any time for more details.