Jun 24, 2020 | Credit Card Debt Relief Blog
1. Get Educated
There are various types of credit card consolidation, and the credibility of companies varies drastically. The decision to consolidate your debt will have very significant consequences and all cases affect your credit. Educate yourself and do your homework in advance.
2. Get References
A good company should be able to provide you with the history of the company’s success as well as positive references from satisfied clients. Check
with the Better Business Bureau and the Department of Consumer Protection before choosing any company to handle debt on your behalf.
3. Review The Numbers
Check the plan the company gives you carefully to be sure that all of the numbers add up. Review all monthly payments and any associated fees over
the length of the plan to be certain the totals are correct. Do NOT start a plan that simply does not look right. Do NOT be afraid to ask questions and get answers in advance.
4. Be Sure To Include All Your Accounts
Make sure you know exactly which accounts are not covered. Many credit card companies or collectors will not participate in certain plans. As a result the
creditors of accounts that are not included can send you to collections, or pursue other legal action against you. This often means additional fees, interest and costs of collections that you will have to pay. Be Aware. Consolidation can NOT help with student loans, tax debt, foreclosures, repossessions, or any debt where a lawsuit or arbitration has already begun. Credit consolidators are also often unsuccessful with medical bills, legal bills, and cosigner
accounts.
5. Consumer Beware!
Stay clear of companies that claim to be able to settle your debt at a later date but require the money immediately. NEVER use these companies. These are often the worst scams in an already dangerous industry. Be aware and very wary of internet companies. Don’t depend on a company you can’t meet in person.
6. Verify Your Budget
All plans depend on having enough surplus income to pay all your regular monthly bills and still leave extra. Be sure that the numbers in your monthly expense budget make sense and take into account one-time or “surprise” expenses. Leave a “cushion” of at least $100 – $200 extra each month – You will need it.
7. Payment Methods
Be careful of direct deductions from your bank account. All direct deductions give 3rd party direct access to your family’s checking account. This direct access by others should be avoided whenever possible.
8. Do Your Own Checking
Finally, check on your own that the arrangements have been agreed to by each individual creditor. Be sure ALL accounts are included. No amount of hard work and payments can protect you from a plan that is flawed at the start. Nothing is sadder than making months or even years of payments and then having a plan fail, often through no fault of your own.
Jun 24, 2020 | Bankruptcy Blog
Connecticut Consumer Protection Lawyers
There are a variety of laws that control the enforcement of debt obligations, collection methods, and the state court judicial process.
The Fair Debt Collection Practices Act (“FDCPA”) is intended to protect consumers from illegal acts by collection agencies seeking to collect on behalf of creditors. The rules are somewhat complicated, but they are enforceable through the State Court located in the county in which you reside. These laws provide for financial awards to consumers who can prove violations of the FDCPA. Collectors often violate these laws but are not often held accountable by consumers who don’t know the laws or how to enforce them. If you feel that your rights may have been violated, seek the opinion of an experienced attorney who knows how to stop abusive practices and win awards for you through the state court system.
Don’t be afraid to assert your legal rights.
Collection Actions start with the filing of a Complaint in the State of Connecticut Court system in the county in which the borrower resides. These suits can be very scary to the average person, and many people don’t respond or answer the Complaint. Failure to respond can have very bad results. The Court collection process is quick and even suits that are entirely incorrect can lead to judgments against you if you don’t respond. Very often, collection attorneys win default judgments even if the allegations and amounts are incorrect, simply because borrowers “freeze” and don’t respond. These default judgments can result in permanent orders against you within the additional amounts owed for legal fees, costs and continuing interest, even after the Court judgment.
Once a collection matter has gone to judgment, the creditors can levy your bank accounts, attach your pay, or lien your home. This can cause financial problems to become quickly uncontrollable. Don’t fail to respond! Lawsuits can be resolved and successfully defended if you take the time to give the matter proper attention and seek immediate legal advice. Judges rule to protect consumer borrowers who properly appear in Court and don’t allow creditors to win by default. Even if the debt and the amount are valid, properly represented borrowers are granted liberal payment plans by often sympathetic State Court judges.
A lawsuit is a final warning sign that you need to seek professional help. Don’t let a suit against you go unaddressed or ignored. Get experienced help to avoid the dangers that can result from losing Court judgments.
The Federal Court system can also provide answers for families in debt through the bankruptcy protection. These laws favor debtors seeking a financial fresh start. The bankruptcy system can protect your assets and your future source of income, even if creditors have already won State Court judgments against you.
Creditors and collectors seem to have become emboldened when trying to collect on debts. They are willing to collect through harassment and illegal practices. Numerous state and federal laws protect you from illegal creditor harassment, but it takes an aggressive and knowledgeable lawyer to enforce them on your behalf. We work hard to protect Connecticut residents under federal and state law.
We can protect you from creditors and other debt collectors today. Our law firm can put a stop to the harassing actions of collectors and even file lawsuits against those who violate the Fair Debt Collection Practices Act (FDCPA) and various other laws that entitle you to protection from illegal phone calls and creditor harassment. If your rights have been violated, you might have a case for strong legal action.
Creditor harassment often entitles you to bring suit and make a claim for monetary damages to you and other related parties.
Creditors routinely violate laws in place for your protection, but there is a way to prevent this illegal activity and fight back. If your rights have been violated, we can prevent the violations from recurring and take strong legal action to make creditors pay you for their illegal activities.
Take Legal Action Against Abusive Debt Collection Agency
Phone calls and demanding letters are one thing. Continual harassment at work, home and on your cellphone, calls to neighbors or family members, intimidation, threats, misrepresentation of information and many other common harassment actions are illegal. Through suit brought by experienced counsel, you may be entitled to payment for damages and abuse.
Federal Laws and State Laws for Your Protection:
- FDCPA: Fair Debt Collection Practices Act
- Telecommunications Act
- FCRA: Fair Credit Reporting Act
- RESPA: Real Estate Settlement Procedure Act
- CUTPA: Connecticut Unfair Trade Practices Act
At The Law Offices of Neil Crane, we know how to make these legal protections work for you, and we are immediately available by telephone or for a free consultation. Take action against illegal harassment and call us today at 203-230-2233.
Taking action against debt collectors who have violated the FDCPA and abused your rights requires an understanding of the applicable laws. Our experience and knowledge of the proper laws can guide your case with ease, end harassment and abuse, and even seek compensation for losses and hardship brought on by illegal debt collection practices.
A list of other actions debt collectors cannot take against you includes:
- Contacting your neighbors about your debt
- Contacting your family members about your debt
- Contacting your employer about your debt
- Calling you every day until debts are paid
- Leaving unlimited voicemail on your phone
- Contacting you at unreasonable hours of the day or night
- Threatening to garnish more wages than allowable under federal law or state law
- Threatening to garnish wages or levy a bank account without using proper legal channels
- Threatening lawsuits, where no suit is intended
- Selling your debt to another company to continue collection on a time-barred debt
- Failing to provide prompt written evidence of a valid debt
- Contacting the Department of Homeland Security (DHS) about your alien status
- Filing or threatening to file a criminal bad check charge on a post-dated check
State and Federal Laws Enacted for Your Consumer Protection
FDCPA: Fair Debt Collections Practice Act
This federal law protects the consumer from third-party collection agencies that employ harassing or abusive practices. Under this act, collectors are limited to what they can say, when and to whom they can say it. Collection agencies are not allowed to discuss your debt with anyone else and are not allowed to harass your family, friends or your employer. Collection agencies can be held liable for damages and attorney fees if they violate this law.
The Federal Trade Commission is a government agency responsible for “protecting America’s consumers.” This government agency is charged with overseeing enforcement of the Fair Debt Collection Practices Act (FDCPA), designed to “prohibit abusive practices by debt collectors.” Under this law, third-party collection agencies are very specifically disallowed from harassing consumers. This continuing improper behavior is often illegal and can entitle you to a lawsuit and award for damages.
What does this mean to you if you were illegally targeted by debt collectors in any of the following ways?
- They sought communication with you at “any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer.” In particular, the law specifies that debt collectors should not contact you before 8 a.m. or after 9 p.m.
- They have sought to communicate with you about a debt despite the fact that “the debt collector knows the consumer is represented by an attorney with respect to such debt.”
- They used threatening, obscene or profane language with you.
- They used illegal threats such as warrants, arrest, prison, liens against your house, pay, or bank account, embarrassment or other coercion.
- They discussed your debt with others.
- They harassed your family, friends or employer or discussed your debt with them.
- Their communications with you included false representations — for example, falsely claiming to be affiliated with the U.S. government.
- They engaged in unfair debt collection practices such as asking you for a postdated check and then depositing that check before the date in question.
- They failed to confirm with you, within five days of contacting you, all key details of a debt.
- They entrapped you with deceptive collection forms.
For one thing, collection agencies can be held liable for damages and attorney fees if they violate this law. The Law Offices of Neil Crane, LLC, fights creditor harassment. We recommend that you take advantage of our offer of a free initial consultation if you suspect that a debt collector has broken the law in dealings with you.
Telecommunication Act
This federal law protects consumers from automated collection calls or “auto-dialers” and limits your creditors’ ability to contact you on your cellphone without permission. If you are receiving calls on your cellphone and have not provided your cellphone number to the creditor, it is likely that your creditor is violating the Telecommunication Act. Under this law, you may be awarded up to $500 per call as damages for violation of the Telecommunications Act.
FCRA: Fair Credit Reporting Act
This federal law protects consumers from unfair credit reporting. Under this law, the three major credit bureaus (Experian, Transunion and Equifax) are required to take affirmative steps to correct all disputes or allegations of misinformation on your credit report. FCRA mandates that the credit bureaus must ensure the accuracy of your account. The bureaus can be held liable for damages and attorney fees if they misrepresent information on your credit report.
The Fair Credit Reporting Act (FCRA) was enacted in 1970 “to promote accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs)” (Source: Epic.org). This law provides consumers and their lawyers with a wealth of significant legal precedents that experienced attorneys can use to enforce your rights. In addition, numerous court cases involving enforcement of this law have provided consumers and their attorneys with a significant amount of legal precedents that can be very useful in new court cases.
Specifically, consumer-protecting provisions of the FCRA include the following:
- The three major credit bureaus (Experian, TransUnion and Equifax) are required to take affirmative steps to correct all disputes or allegations of misinformation on your credit report.
- They must ensure the accuracy of your account.
Were You Harmed By Violations Of The Fair Credit Reporting Act (FCRA)?
The lawyers at The Law Offices of Neil Crane have the experience necessary to protect your rights under the FCRA. If you have been mistreated — and harmed — by violations of the FCRA by a credit bureau, you should know that your rights include the right to sue. The credit bureaus may be held liable for damages and attorney fees if they misrepresent information on your credit report. If you think your rights have been violated, email us or call us and speak directly with an experienced attorney today.
RESPA: Real Estate Settlement Procedure Act
This federal law protects homebuyers from unscrupulous brokers and mortgage companies. Banks must follow the guidelines set out under this federal law with respect to all mortgages and accountings of the debt. It makes for full disclosure of all fees and costs. If improper disclosure and mishandling of the homeowner’s debt occur, the homeowner may be awarded damages and attorney fees. Banks may also be held responsible for punitive damages.
CUTPA: Connecticut Unfair Trade Practices Act
This statute provides state remedies for individuals who have been the victim of unfair and/or deceptive practices by any company conducting business in the state of Connecticut. Under this state statute, the courts have the authority to hand down both punitive and injunctive relief, along with all reasonable attorneys fees.
The Connecticut Unfair Trade Practices Act (CUTPA) “allows the Commissioner of Consumer Protection to legally pursue persons or businesses who have used unfair or deceptive trade practices with consumers,” in the words of the Department of Consumer Protection of the State of Connecticut.
A core tenet of this law is found in Section 42-110b: “No person shall engage in unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” Examples of unfair methods, acts and practices that have emerged through past cases have included:
- Sale of consumer goods at an unconscionable purchase price to a consumer having unequal bargaining power
- Refusal to sell and install goods at price originally quoted, causing “ascertainable loss” to the consumer
- Representing that work will be performed by an expert subcontractor while knowing that the work will be performed by a different subcontractor not of the same quality
- Failing to disclose to a customer that the customer will be required to pay undisclosed or additional fees
This state law awards for actual damages, monetary penalties and attorney’s fees.
These laws were enacted for your protection and you should seek our knowledge in using them for your protection from creditor harassment and telephone calls, and improper credit reporting.
Our founding attorney, Neil Crane, is a renowned Connecticut bankruptcy lawyer. He often takes clients on referrals from advocacy groups and attorneys who recommend him as a Hartford bankruptcy attorney with the in-depth knowledge and experience necessary to help people get the best possible results in difficult financial situations.
Call for a Free Consultation With a Connecticut Debt Relief Professional
At The Law Offices of Neil Crane, LLC, we protect the rights of individuals, families and businesses throughout the state of Connecticut. Debt collectors do not have the freedom to take any action they want to get you to pay debts. Through our knowledge of consumer protection laws and the Chapter 7, 11 or 13 bankruptcy filing process, we can stop creditor harassment and stop levies, attachments, wage garnishments and lawsuits. But we will take your case even further if we find evidence that a debt collector broke the law trying to collect debt from you.
We have helped thousands of Connecticut families put an end to aggressive bill collection actions. We are ready to help you find a plan to suit your needs. Contact our Connecticut creditor harassment professionals online or call at 203-230-2233 to schedule a free initial consultation at any of our five Connecticut locations.
Jun 23, 2020 | Bankruptcy Blog, General Blog
Despite common myths to the contrary, obtaining a good credit score after bankruptcy is incredibly easy. Your debt is reduced or eliminated, your credit score begins to climb. Credit scores climb after bankruptcies because you have no debt.
After going through bankruptcy, consumers learn a powerful lesson and understand how to build credit and avoid debt. It’s the key to keeping their new-found financial freedom. They’ve gained the financial IQ that it takes to discern credit from debt, what is good for their financial future and what is not. They take advantage of their fresh start to improve credit after bankruptcy.
Bankruptcy Helps Thousands of Connecticut Residents Each Year
The overall economy and current job market in Connecticut makes bankruptcy relief the best option for many hardworking Connecticut residents who can’t make ends meet and need help under the Bankruptcy Code.
Important questions must be addressed before deciding if bankruptcy is the appropriate answer. These questions include what might happen to the family home, which debt is eligible to be discharged, as well as how bankruptcy might affect my credit down the road.
Proper Lending and Affordable Borrowing After Bankruptcy
High Credit Scores and affordable borrowing depends on three factors:
- Your Debt-to-Income Ratio – What do you make and what have you already committed to spending on interest payments?
- Credit Score – Your FICO score which is 35% based on utilization, a marker of your debt-to-income ratio above
- Your Savings Account Balance – What have you saved? What’s your reserve? What’s your cushion? This determines how badly you need to borrow. Savings should be your cushion, not available credit.
Follow these recommendations after bankruptcy or even before:
- Understand that credit cards are a barrier for your financial future. With high interest rates, they are the number one roadblock to your family’s financial future.
- Use cash, and if not, use plastic like cash. Use it and pay it off in full each month. Never carry a balance.
- Understand that the financial lending industry does not have the hardworking middle class’ best interest at heart. Understand that they lend you money because it benefits them and not you.
- Secured credit cards are the best credit cards because they report to all three credit bureaus and you can’t spend beyond your savings.
- Don’t use store cards, they hurt your score.
- Keep available credit balance high.
- Never take a rescue loan.
- Never use private internet lenders.
- If it’s too good to be true, it is.
- Never be embarrassed – The bravest, strongest, best people we’ve ever met have been our bankruptcy clients. They have a desire to work, to pay and do the right thing.
- Try credit unions – They’re local, they’re human, they’re not for members only and they have good rates. If they approve you, you can probably afford it.
This list is not exhaustive, but following these recommendations can jump start even a recent bankruptcy filer on the road to a sound financial future. Bankruptcy is designed to give debtors a fresh start, as people emerge from bankruptcy with a positive outlook for the future.
Anyone who is considering bankruptcy or wondering how they can rebuild their credit should speak with a qualified attorney immediately. The experience bankruptcy attorneys provide is invaluable before, during and after the bankruptcy process.
Never has Debt Relief been more helpful and never has great credit after bankruptcy been so easy to attain.
To learn more about bankruptcy debt relief or your credit score after bankruptcy, call Attorney Neil Crane at 203-230-2233 and speak to him directly about your individual questions. Get educated for free.
Jun 23, 2020 | Credit Card Debt Relief Blog
So what’s the answer to those of us who ask: How do I really enhance my credit score today if simply paying on time isn’t the best approach?
Reducing Debt Load
The best means to enhancing your credit score is reducing utilization and a healthy debt-to-income ratio. High utilization indicates a poor debt-to-income ratio and no amount of perfectly timed payments will overcome this element to avoid a tanking credit score or an overwhelming burden on your day-to-day financial life.
Why There’s No Better Savior Than Debt Reduction
While it’s important for you to pay your bills on time (since our FICO score is determined in part by our payment history) focusing solely on making payments on time as an exclusive strategy to boost your score isn’t wise.
Debt reduction is the answer. An unhealthy debt-to-income ratio is essential to a solid credit score and financial health. Too much debt makes it impossible to obtain good lending rates or a balanced monthly budget.
However, simply making payments on a $30k credit card balance is a bit easier said than done. In many cases, credit cards come with high interest rates, making it virtually impossible in some instances to pay off the principal in an acceptable amount of time.
Many of us may think about reaching into our 401k savings to pay off the debt. After all, it would give us an immediate clean slate, right?
This is a drastic and often improper alternative made by individuals and families in trouble. There are often better options and none should be overlooked or disregarded without experienced legal advice on better avenues for debt relief.
Why You Should Consider All Avenues For Debt Reduction And High Credit Scores
There are various proven legal options for debt reduction, including debt settlement and debt relief. And, an experienced debt relief attorney will know the best option under your specific circumstances, including Chapter 7 and Chapter 13 bankruptcy.
In our society, bankruptcy is often regarded as a last resort, a decision that will crush your creditworthiness in perpetuity. But this simply isn’t true.
Paradoxically, your FICO scores may in fact go up post-bankruptcy because of the reduction in your utilization. Credit card offers and car loans are actually available within weeks or months of a bankruptcy discharge and getting approved for a mortgage no longer takes years.
Bankruptcy is an important legal decision that is used by many people, but only with the benefit of experienced legal counsel. In certain circumstances, it is the appropriate method to a lasting financial future within increased credit scores and a healthy reduction in your overall household debt burden-all while preserving your savings and retirement portfolios that took decades of work to build and grow.
In today’s economy, everyone needs to take the time to become educated about their particular financial circumstances with the help of an experienced legal professional.
To learn the best options for you and your family, meet with a specialized debt relief attorney.
The Law Offices of Neil Crane, LLC, is a debt relief agency with 30+ years of experience helping individuals, families, and businesses find lasting solutions to their credit card debt and other loan obligations.
Jun 2, 2020 | Foreclosure Blog
As federal banks are mandated to allow for a moratorium of mortgage payments and private banks offer or decline individual moratorium requests based on cause, what is going to happen when these mortgage payments are due? The answer is unclear for government-mandated moratoriums and even less clear for moratorium requests granted by private banks.
All homeowners obviously need to know when they are going to be required to make up payments that they have been unable to make during the COVID-19 pandemic. Many homeowners and foreclosure defense lawyers do not see a clear and consistent directive to how these unpaid monthly obligations are going to be reorganized and incorporated to avoid a new wave of foreclosures. Having witnessed the disaster of the 2008 mortgage meltdown and bank bailouts, housebound homeowners both employed and unemployed wonder if they will be the next victim of a half-baked plan to assist homeowners that is, at best, uncoordinated and likely to lead to continued confusion with borrowers begging banks for merciful repayment terms. Good luck with that.
Not dissimilar to the national pandemic, homeowners do not feel there is clear guidance and are worried about their families’ homes. While there are no guarantees, there are suggestions.
- Do not accept the moratorium unless you absolutely need it. Stay safe and stay out of the morass.
- Any promise from a bank to a homeowner has been proven by the 2008 meltdown to be unenforceable against the bank.
- Banks have proven by the past economic meltdown to be often unconcerned and almost always unreliable. American homeowners have no true client relations with their banks. (Do you know who your banker is?)
- Document everything. Get names, get emails, send letters. Paper your file. In America, if it is not in writing, it does not exist.
- Save, save, save. Any portion of any amount you cannot pay and you can save can be the greatest means to save your home when payments recommence.
- Keep an eye on everything you receive. What does the statement look like? What is the promise from your bank? Finances go down like a stone when you are out of work. When you return, will your recovery meet with your bank’s requirements and prevent it from heading towards foreclosure?
If you are struggling to make mortgage payments, contact the Law Offices of Neil Crane, LLC and find long-lasting solutions. We offer a free initial consultation. Please do not hesitate to call us today at 203-230-2233, or complete our online contact form to discuss your questions and concerns with an experienced bankruptcy attorney.
