DO COLLEGE STUDENTS IGNORE THE REALITY OF DEBT AND VIEW THEIR COLLEGE CREDIT CARD SPENDING AS JUST PART OF THE EXPERIENCE? 

An online poll held by the National Association of Retail Collection Attorneys (NARCA), reveals what students think about their credit card spending during their college years.  NARCA’s findings show that a quarter of college students think it is realistic that they have to run up credit card debt in order to survive in college.  Credit card spending is characterized as  “enjoying the moment”.

“Our poll results show that too many young people are living for the moment and are not preparing for their financial future,” said Robert Markoff, president of NARCA. 

I believe this is  a true statement.  Should credit card companies share part of the blame?  Do credit card companies make it too easy for college students to apply and obtain credit cards?   Or should we solely blame college students for not taking responsibility for their own financial future?

Personally, I think credit card companies should put stricter boundaries on college students applying for credit cards.  The likelihood of this occurring is very small.  Credit card companies make money off of college students and isn’t that what it is all about?  Credit card compa

nies are able to charge higher interest rates and higher annual payments to college students with very little or no credit history and a small income as compared to a middle-aged business man with good credit history and a high earned income.  So OF COURSE, credit card companies like to “hand out” credit cards to college students.

Why do you think so many credit card companies set up shop on college campuses?

Yes, that’s right.  Credit card companies will pay universities big money to set up shop.  Some universities have done the right thing by refusing access to their campuses.  Credit card companies will lure college students into applying for a credit card by sitting out on campus giving away “free stuff” in exchange for completing an application.  Since college students love free stuff, they apply.  And….once that credit card comes in the mail, it is just too hard for a poor college student to turn away. 

I blame today’s society, for 2 main reasons.  First, if you think high school is a fashion show, then what is college?  Everyone is in competition.  We are slaves to the material things in life, such as clothes etc. Not to mention, all the parties a college student might throw to earn the respect and praise of their peers.  Being out of mom and dad’s house for the first time, it is easy for college students to take advantage of their “new free living lifestyle”.

College students, and adults for that matter, think they need to appear as if they “have money” in order to be respected.  We often lose sight of what is really important in life.  Credit card companies take advantage of this mentality.  They go after college students with a vengeance.  They want the college student to become “addicted” to credit, in the same way the drug dealer wants his/her customers to become addicted to the drug. 

Secondly, I blame the education or should I say “lack” of education of a young adult’s financial future.  Is there a reason high schools do not educate students of the reality of their future credit history?  Maybe high schools should start making a class like this mandatory.  Maybe, just maybe, if we educate our young minds about how important it is in today’s world not to get in over our heads with debt, things might change. 

Just food for thought.

Does your credit card debt die with you, or can it come back from the grave to haunt those you left behind?  There isn’t a straight yes or no answer to this question.  There are a number of factors, including where you live while obtaining the credit card.

Who the credit card belonged to is a factor.  If there are no other account holders, the debt is yours alone.  This could get tricky though, for instance, if there is an authorized user on the account.  Usually if there is a mere authorized user (one that can charge, but is not liable for the bill), then he or she would NOT be responsible for the debt after a loved one passes away.

A spouse, child, or other family member cannot just inherit a debt without being a “cardholder”.  The estate could also be responsible for paying the debt.  If the estate goes through probate, the executor (or administrator) could determine in what order the bills should be paid.  The remaining assets would then be distributed to the heirs.  If there is not enough money left over, the credit card companies would just have to deal with it and write it off. 

The question of who can inherit a debt can get very complicated.  Many states allow a house to go to a spouse after the other spouses’ death without letting creditors intervene.  Luckily, many states have laws to protect the family home from creditors.  However, if you have lost a loved one and are receiving collection calls from debt collectors, call Jeff.

Jeff can help you determine if the debt is valid, if it is within the statute of limitations, and if you would in anyway be held liable for the debt.

Bureau of Collection Recovery Inc. “BCR” is a debt collector.  BCR purchases old cellular phone debts.

A debt collector employed by BCR contacted a Pittsburgh consumer regarding an old cellular phone bill.  The consumer repeatedly told the debt collector he paid this bill and not to call him anymore.  Like many debt collectors, they didn’t take him off the calling list. 

The consumer then sent a letter to the debt collector disputing this debt.

As for Bureau of Collection Recovery Inc.  (that name alone is intimidating), they of course took the road most debt collectors take and kept on contacting the consumer. 

BCR even went as far as calling the consumer a deadbeat and a liar.  The collector told the consumer he was going to ruin his credit if he did not pay this debt.  But why should he?  He already paid this debt, years ago.

The consumer contacted Jeff, who filed a lawsuit against BCR.    BCR stopped calling the consumer.   The case settled after BCR agreed to pay the consumer.

If you are contacted by a debt collector, do a little research.  The research can be as simple as “googling” the debt collector’s name. You will be surprised what you find.  Don’t be left in the dark.  Know who you are dealing with and what they are capable of doing.   And as always if you are having any problems with a debt collector, call Jeff.

Consumers with shaky credit can borrow money more easily than one would think, whether or not they are even in the position to repay the loan. According to Stephens, Inc., a Little Rock investment Bank, there are now some 24,200 pay-day loan storefronts, up from 18,000 only three years ago.

Here?s how a payday loan works ? the consumer writes a post-dated check against his or her next pay (usually the loan is good for two weeks). Sounds great, right? Wrong, the fees are outrageous. Sometimes up to 25% interest, just to borrow money for 14 days. When the loans are due if you can?t pay, there is another fee to renew the debt for another two weeks. Eventually, (and not very long after you take out the original loan), the interest rate could way exceed the amount of original loan. This will make it very difficult for the loan to be paid. Thus an ongoing vicious cycle of paying someone to pay someone to pay someone. Not very logical. But unfortunately, something that many consumers have had first hand experience with.

There are some payday loan companies that will also take the title of your car as collateral (with a duplicate car key as well, of course). These places have very high interest rates as well. If you don?t pay the loan back, you could lose your car, making a person unable to get to work.

Payday and car-title lenders can usually be found in low-income neighborhoods. Congress recently slapped a 36% interest rate cap on loans made out to the military members. However, everyone else is left to pay interest rates some can exceed 700%, says CFA?s Fox.

These loans are very predatory towards lower income families, and have caused a lot of pain and suffering. Many families have been cornered into using this ?fast cash? for other bills, and then find themselves unable to pay the ?fast cash? on time, making things even harder than they first started out with.

Mortgages with interest rates that sky-rocket after a few years, are probably the most toxic and make the most headlines. Typically, these types of home mortgages are given to consumers whose credit scores are below 620. However, those are the very people least able to handle monthly payments that suddenly double or triple.

When will the government stop these predatory lending practices???

I would like to share my own
personal story with you. Maybe it
will be helpful to someone.

I was a bit of an
irresponsible young adult. I
obtained some credit cards right out of high school as I began business school,
and shortly thereafter a vehicle loan for a sporty little Eagle Talon. (When I think about it, how crazy is it
that I was able to secure this much credit at such an early age!) Well, needless to say somewhere around
1998-1999 I began defaulting on my credit cards and my car was also repossessed. Not such a great credit start.

In 2000 I was married and had
two wonderful boys. I stopped
working to stay at home. Somehow,
I was smart enough to request a few forbearances and financial hardships to
keep my student loans out of default throughout the years. In 2002, my husband and I purchased a
home. My credit was horrible, and
his not much better. It was pretty
hard to find anyone to finance us.
However, we ended up getting
financed with 20% down on the house and an outrageously high interest rate (I
believe 9.5%).

Unfortunately my marriage
fell apart and I was divorced in 2004.
My house was foreclosed on in 2005. Hmmmm, at this point defaulted credit cards, repossessed car
and foreclosed on home.

Trust me this is not a sob
story! I just want someone out
there to realize they are not alone!

I obviously needed to get
back to work and also back to school.
I put my sons in daycare and began working for Jeff in 2004 and shortly
thereafter returned to school to finish my degree. I started working on his
personal injury and product liability cases. Soon I started to learn about his FDCPA (Fair Debt
Collection Practices Act) cases and FCRA (Fair Credit Reporting Act)
cases. How great was this, to be
involved with cases that I actually enjoyed! It was awesome to help consumers with similar problems and
to help Jeff go after sleazy debt collectors.

In March of 2006 I was driving
a very old car and needed something more reliable. Since I worked with Jeff in connection with the FCRA, I realized
that some of my old debt hit the seven year mark and should have fallen off my
credit reports.

Therefore, I ordered my
credit reports and my credit scores from all 3 agencies. My FICO score was a whopping 492. Was it possible for a score to go below
500?????

I reviewed everything and
unfortunately it was accurate. I
went through my reports and documented when each and every debt should be taken
off my credit report. I also went
through and picked the most recent debt that went into collections and contacted
the original creditors to pay off a few recent debts. If the debt was over four years old, I closed my eyes and
pretended it wasn?t there.

I had managed to save some
money over the last 2 years (it was easy since I had to go live with my mother
again, lol.). I put money down and
purchased my car. Again, high
interest rate! But hey, you have
to start somewhere. I just made
sure that this time I bought something affordable to make sure I try to build
my credit back up instead of continuing to tear it down.

In September 2006, I rented
my apartment. Ahhhh, felt
good. Although, again ? the apartment
complex did a credit check. Since
I had not so great credit, I had to pay first and last months' rent for a security deposit. OUCH.

I am still working for Jeff ?
helping him go after debt collectors. I finished my degree, and am planning to
continue my education.

In June 2008, I ordered yet
another set of my credit reports.

Want to know what my credit
score is? ??Drum roll please ????It is an overall of 676.

Not exactly where I want it,
but my score jumped almost 200 points in two years.

I still have negative
accounts on my credit, but I also have a couple good ones. There are about 4 more collection
accounts that are due to disappear within the next 6 months. I will definitely have to keep a close
eye on that to make sure that is what happens.

I still get a debt collection
call once in awhile??.and if the FDCPA is ever violated I will make sure to
protect my rights. (Unfortunately, debt collectors can call me in regards to my
debt for as long as they like, 20 years even.)

But until then, I will sit
back and know that in a couple years, my credit history will finally have a
fresh start.

Thanks for listening! Please feel free to contact Jeff or
myself if you ever have any questions.

Tina.

Is a debt collection company
suing you over an old credit card debt?

If a debt collector is suing
you over an old credit card bill, you are probably wondering what to do. When a credit card company is unable to
collect money from you over a period of time, they often sell your debt for
pennies on the dollar to a debt collection company.

Often times the debt
collector will sue you and can do so if it is within the four (4) year statute
of limitations in Pennsylvania.

The first rule of thumb when
receiving a summons for Court over an old credit card debt:

DON?T IGNORE IT! This is
the worst thing you can do. If you
ignore the summons and do not show up, the Court will enter a judgment against
you. The judgment will show
up on your credit report for as long as seven (7) years. The collector can execute on the
judgment and could possibly freeze your bank account.

WHAT TO DO! After being served with the Summons ? make sure you
read all the legal documents carefully.
The debt collector should attach validation of the old credit card debt,
proving that you do in fact owe the debt and when that debt allegedly went into
default.

Basically, after the
complaint look for documents that would show an agreement between you and the
credit card company. Also, look
for documents that prove how much you allegedly owe the credit card company.

Most importantly, Contact
an attorney immediately! You only
have so much time to respond to the Complaint.

WHAT CAN I DO FOR YOU?
The debt collector is hoping you do not respond to the lawsuit so it can
get a default judgment. Also, quite often the debt collector fails to provide
accurate documentation when filing the lawsuit. Therefore, there is no need for you to ignore this.

Obtaining credit can be fairly simple for most Pennsylvania consumers. If you have a steady job, and no history of serious credit delinquency, you can obtain more credit than you'll probably ever need. But many in Pennsylvania face the flip side of this equation, and often through no fault of their own.

As fair and impartial as financial institutions purport the credit system to be, the fact is that mistakes in reporting credit information still occurs at alarming rates. These mistakes leave affected consumers financially disenfranchised from the rest of us, exposed to long-term financial problems that can limit life's possibilities and close them off from their shot at the American Dream.

Jeff will discuss identity theft prevention, fraud alerts, and security freezes,and help you to take steps to prevent yourself from identity theft and what to do if it happens to you.

Jeff will discuss the responsibilities of debt collectors other furnishers to the consumer reporting agencies. Jeff can help you become aware of what debt collectors can and cannot report to the credit bureaus. Jeff will also help you better understand your credit report so you can spot inaccurate information.You will also learn the proper procedure to dispute inaccurate information.

Date: Tuesday, September 30th Time: 6:30 p.m.

Place: Single Step Strategies, 1738 N. Highland Road, Suite G103

Pittsburgh, PA 15241

Members $10 Non-members: $15.

To register EMAIL http://info@singlestepsstrategies.com

or Call 412-831-0183

On the Web: www.singlestepsstrategies.com

SEATING IS LIMITED!

Debt collectors abusive and harassing telephone calls are on the rise.

According to the FTC,consumer complaints about debt collection abuse were up significantly in 2007(PDF link). This is hardly surprising, as debt has been plentiful and cheap lately. Complaints will almost certainly go up in 2008, sincecredit card borrowing is way upalong with credit charge-offs.

If you are getting phone calls from a debt collector, you need to track the calls carefully. In Pennsylvania, you are legally not allowed to record a telephone call without permission of all parties on the telephone call. However, it is very important that you keep good handwritten notes!

Many consumers in Pittsburgh have been contacted by a bill collector or debt collector at some point in their lives. Being harassed by debt collectors is not fun and many of us may not know what to do. Read this article to find out ways to help stop debt collectors from harassing you.

Sleazy Debt collection tactics are merciless. Debt collectors keep coming up with new schemes and new ways to make you pay them. Remember, they only get paid if YOU pay them.

When you applied for your credit card, did
you read through the fine print under the terms and conditions? Do you know if your credit card
agreement contains the universal default clause?

Credit Card companies have recently added
universal default clauses to the terms of our credit card agreements. This could be very detrimental for
consumers with even one late payment.

How it works.

This provision allows credit card companies
to pull your credit report on a regular basis. If there are any changes that have negatively affected your
credit report, a higher interest rate can be applied to your credit card. This even includes any late payments on
your mortgage, car, or a late utility bill. Sadly, this could not only increase
the interest rate on future purchases, but also raise the interest rate on the
consumer?s entire balance. For
example: if you are late one time
on your car or mortgage payment, your credit card (if it has a universal
default clause) could rise from 9% to 27% instantly.

We are only human. We all make
mistakes. Is it fair, moral, or
decent for credit card companies to increase your APR up to 30% if you late on
ONE payment? How are consumers able to establish credit, keep credit, and pay
debt in ?good faith? if these are the sneaky games credit card companies?
play? But wow, think of all the
extra money the shareholders of the credit card companies make a year. Is THIS why the rich keep getting richer
and the poor getting poorer? Is
THIS why average working citizens cannot get ahead? One strike you?re out, and the credit card company is up to
bat.

Approximately 45% of credit card companies
have a universal default provision contained somewhere within their card member
agreements.

Credit Card companies did not mean to hurt
consumers when they established the universal default clause. (Yeah,
right!) Rather, it was established
to protect them against potential losses by charging higher interest rates to
consumers that are high risk with degrading credit ratings (By all means if you
are one day late on a car payment, you should be considered high risk to that
multi-million dollar bank, right?)
However, marketwatch.com describes the provision as a common practice
used by credit card issuers to increase consumers? annual percentage rate.

Chase has just joined Citibank, which no
longer increase rates for customers based on negative information on their credit
reports. However, they may review
your credit record when adjusting your credit limits and other terms.

Currently, there are only a handful of
states that have and are trying to pass a bill to ban these universal default
clauses.

What do we do?

Gain awareness; review your credit card
agreements. If you get an offer in the mail for a credit card that has a
universal default clause, run has fast as you can.

Did you know?

On February 7, 2008, Representatives Carolyn
Maloney and Barney Frank introduced a credit-card bill of rights that would
make it harder for issuers to add fees and hike rates.

Senator Carl Levin is also sponsoring a bill
that would cap rate increases, rein in fees and require clearer disclosures of
all costs! Wouldn?t that be nice?

Stop Debt Collection Harassment!

Come learn how the credit card industry works and find out YOUR rights regarding debt collection harassment.  

Location:  Dave & Busters in the Waterfront 

Date/Time:  Tuesday, Nov. 6th at 6:30 p.m.

Please join us for a fun, free, and informative event!