Protect yourself from online counterfeit goods and identity theft

Online shopping is increasingly popular for its convenience, variety and easy-to-compare prices. But Internet shoppers must be aware that the web is full of illegitimate sites that are selling pirated and counterfeit goods, as well as sites that are not secure and may expose you to identity theft.

There are many reasons to avoid these illegitimate sites. Pharmaceuticals from sham sites may be ineffective or even toxic. Counterfeit cosmetics have been found to contain chemicals such as antifreeze or harmful bacteria. Counterfeit toys may not meet the safety standards expected in the United States. Illegal music downloading sites may contain malwear that allows the scammer access to your personal and financial information.

And while some of these sites may look legitimate with corporate advertising, credit card acceptance and professional-looking graphic design, a careful shopper can spot warning signs that these are places to avoid.

So follow these tips to avoid illegitimate websites and make your shopping on line experience safe and rewarding:

1. If it's too good to be true . . . it probably is. Use your common sense. If you think something seems wrong with a site, it could be an illegitimate company. Watch out for sites with poor quality photos; spelling mistakes; logos that look similar, but not identical to corporate logos; and lack of terms. If you are purchasing from an auction site, see how many identical products they have available — for example, if they have too many of an expensive designer handbag, the handbags are probably fake. Avoid websites offering unlimited downloads of music or movies, or offering mixed versions of songs.
2. Use a credit card for online shopping. When shopping online, it is best to use credit cards with low or no balances. Shopping with a low balance credit card not only offers protection from the credit card company for fraudulent purchases should your information be used, but the balance also limits potential damage.
3. Only shop from reputable online businesses. Many online businesses offer substantial discounts on products to lure you into their site. Be careful dealing with a company that you have never heard of. Many of these companies are not authorized vendors for certain high-ticket items. For example if you buy a Canon camera from a retailer that is not an authorized vendor, you will not be able to get any relief from the manufacturer's warranty. Purchasing a high-ticket item from a well-known retailer is the way to go.
4. Read product reviews when shopping online. Many stores allow customers to leave feedback on various products and the service of the site.
5. Look for secure websites. Shop from online sites that display https:// rather than http:// in the address bar. Also look for a padlock image at the bottom of the browser. These indicate the website is secure, and has a safe encrypted connection. Sites that do not have secure connections are not storing customer data in a secure manner and could be a threat to steal your identity or financial information.
6. Use authorized retail sites. Many companies have lists on their websites or product packaging of sites where you can buy their goods. These are sites that are considered authorized online retail stores, and you are guaranteed to purchase a legitimate product. If you are uncertain that a site is selling genuine products, ask the retailer where they got the goods and for other verifiable information.
7. Watch out for fakes. Many illegitimate goods may look genuine. And online sites may advertise their quality. But when examining them closer, you may find products certainly aren't of the quality of the real thing. The key is that you won't find a $500 bag that is legitimate for sale for $10 or $20.
8. Take care on prescriptions. Always consult with your doctor, and only take medications prescribed by your doctor or another health care professional. Use a licensed pharmacy. The National Association of Boards of Pharmacy can tell you whether an online pharmacy is licensed and in good standing. Some sites carry a seal of approval from Verified Internet Pharmacy Practice sites. To gain this approval, sites must maintain state licenses and allow inspections by the National Association of Boards of Pharmacy. Do insist on access to a registered pharmacist. Reputable sites offer toll-free access to registered pharmacists to answer your questions. Some online pharmacies have traditional physical locations as well. Do read the privacy and security policies — before placing an order, be confident that your credit card number, personal health information and other personally identifiable information will be protected. Do compare prices — you may find great deals online, but there may not be any guarantees. Check your local drugstore price; it might beat the online price. Do be alert for counterfeits. In some cases, drugs ordered online turned out to contain no active ingredient or to contain the wrong medicine.

Also make sure to check your credit report and credit card balances regularly, in case you do have malware installed on your computer. Use antivirus and firewall software to protect you from viruses and malware software hidden in downloadable files.

If you find yourself looking at a website that looks suspicious, or have purchased goods from a website that are defective or pirated, report that information to the legitimate company they are copying from, and to the proper authorities, such as the Justice Department or the FBI.

http://ago.mo.gov/divisions/consumer_online_shopping.php

Getting Installment Loans with Bad Credit

I saw a statistic recently that said the vast majority of individual bankruptcies are an end result of healthcare bills. I wonder how many of these could be avoided if these people could have gotten installment loans?

Quick installment loans for bad credit.
Installment loans for bad credit are designed especially to provide temporary help to people who, in these times, are struggling to make ends meet – on bad credit. People in these times can wind up with bad credit, not because they are bad with money, but merely because they do not have enough. To add insult to injury, after your credit is harmed, it is even tougher to acquire additional money if you require it. Lenders only desire to lend to people who have a good credit score, normally over 650.

A different type of lenderLuckily, Emergent Funding has short-term installment loans for bad credit. Your credit score does not matter (the average score for our clients is 450), but how and to whom you pay your bills does matter.
Payday lenders do demand costs for their services, but with our installment loans, you can pay back your short-term bank loan with a affordable bi-weekly payments. Payday lenders normally require that borrowers pay back their loans and costs all at once, on their next payday. But, should you require more money than you can afford to pay back from your next paycheck, Emergent Funding is the answer.

Even with bad credit, you can get installment loans onlineYou utilize our website to apply for the installment loan. Just fill out a basic application and follow the instructions.  Our payment schedules are posted on the website.  Easy and affordable biweekly payments!
If you choose, you can request us to schedule your payments on certain dates. This is definitely an easy, risk-free method to make your payments with no NSFs. You will not have the hassle of writing and mailing checks. Your deposit is made directly into your bank account, and payments are debited from that same account.

Regardless of your credit score, you could possibly get an installment loan from Emergent Funding.

We encourage you to only use a short-term loan in an emergency, and do not borrow more than you can afford to pay back.

"FREE" Credit Reports That Aren't Free - Advice from the FTC

What is AnnualCreditReport.com?

AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that's yours by law. The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies — Experian, Equifax, and TransUnion — every 12 months. The Federal Trade Commission has received complaints from consumers who thought they were ordering their free annual credit report, and yet couldn't get it without paying fees or buying other services. TV ads, email offers, or online search results may tout "free" credit reports, but there is only one authorized source for a truly free credit report.

I’ve seen a box at the top of some websites saying:

"You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law."

What’s this about?

A new law requires commercial websites that say they offer free credit reports to include a box letting you know you can get a free credit report at http://www.annualcreditreport.com/. Click on the link to http://www.annualcreditreport.com/, the only place to get the free report that's yours by law.
Many companies claim to offer free credit reports – and some do. But others give you a report only if you buy other products or services. Still others say they’re giving you a “free” report and then bill you for services you have to cancel. If you go to http://www.annualcreditreport.com/ and follow the prompts for your free credit report, you can be sure the reports you get really are free.

How do I request my free credit report?

You can request your free report online, by phone or by mail. Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.  No matter how you request your report, you have the option to request all three reports at once or to order one report at a time.  By requesting the reports separately, you can monitor your credit more frequently throughout the year.  

Why should I request my credit report?

Because the information in your credit report is used to evaluate your applications for credit, insurance, employment, and renting a home, you should be sure the information is accurate and up-to-date.  In addition, monitoring your credit is one of the best ways to spot identity theft.  Check your credit report at least once a year to correct errors and detect unauthorized activity. 

What should I look for when I review my credit report?

If you see accounts you don’t recognize or information that is inaccurate, contact the credit reporting agency and the information provider.  For more information, read the FTC’s tips on how to dispute credit errors. 
If you suspect identity theft, you may need to place a fraud alert on your credit report, close compromised accounts, file a complaint with the FTC, or file a police report.  Start by visiting the FTC’s identity theft website.

Resources from the FTC

• Your Access to Free Credit Reports
• Building a Better Credit Report
• Credit & Loans

File a Complaint

The FTC wants to hear from you if you paid for what you thought was your free annual credit report.

SPAM

The FTC also wants you to forward us any unsolicited emails you've received offering you a free credit report. Send them to mailto:spam@uce.gov
AnnualCreditReport.com will NEVER send you an email solicitation for your free annual credit report or use pop up ads.

FTC Advice on Job Hunting / Job Scams

If you’re looking for a job, you may see ads for firms that promise results. Many of these firms may be legitimate and helpful, but others may misrepresent their services, promote out-dated or fictitious job offerings, or charge high fees in advance for services that may not lead to a job.

To Do

Before you spend money responding to placement firms or completing placement contracts:

• Reject any company that promises to get you a job.
• Be skeptical of any employment-service firm that charges first, even if it guarantees refunds.
• Get a copy of the firm’s contract and read it carefully before you pay any money. Understand the terms and conditions of the firm’s refund policy. Make sure you understand what services the firm will provide and what you’ll be responsible for doing. If oral promises are made, but don’t appear in the contract, think twice about doing business with the firm.
• Take your time reading the contract. Don’t be caught up in a rush to pay for services. Stay away from high-pressure sales pitches that require you to pay now or risk losing out on an opportunity.
• Be cautious about purchasing services or products from a firm that’s reluctant to answer your questions.
• Be aware that some listing services and “consultants” write their ads to sound like they are jobs when they’re selling general information about getting a job.
• Follow up with the offices of any company or organization mentioned in an ad or an interview by an employment service to find out if the company is really hiring.
• Be wary of firms promoting “previously undisclosed” federal government jobs. All federal positions are announced to the public on http://www.usajobs.gov/.
• Check with your local consumer protection agency, state Attorney General’s Office, and the Better Business Bureau to see if any complaints have been filed about a company with which you intend to do business. You also may contact these organizations if you have a problem with an employment-service firm.

What are the Most Common Ways To Commit Identity Theft or Fraud?

Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. In public places, for example, criminals may engage in "shoulder surfing" ­ watching you from a nearby location as you punch in your telephone calling card number or credit card number ­ or listen in on your conversation if you give your credit-card number over the telephone to a hotel or rental car company.
Even the area near your home or office may not be secure. Some criminals engage in "dumpster diving" ­ going through your garbage cans or a communal dumpster or trash bin -- to obtain copies of your checks, credit card or bank statements, or other records that typically bear your name, address, and even your telephone number. These types of records make it easier for criminals to get control over accounts in your name and assume your identity.
If you receive applications for "preapproved" credit cards in the mail, but discard them without tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your knowledge. (Some credit card companies, when sending credit cards, have adopted security measures that allow a card recipient to activate the card only from his or her home telephone number but this is not yet a universal practice.) Also, if your mail is delivered to a place where others have ready access to it, criminals may simply intercept and redirect your mail to another location.
In recent years, the Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information. In their haste to explore the exciting features of the Internet, many people respond to "spam" ­ unsolicited E-mail ­ that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In some cases, criminals reportedly have used computer technology to obtain large amounts of personal data.
With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real name. If the criminal takes steps to ensure that bills for the falsely obtained credit cards, or bank statements showing the unauthorized withdrawals, are sent to an address other than the victim's, the victim may not become aware of what is happing until the criminal has already inflicted substantial damage on the victim's assets, credit, and reputation.
http://www.justice.gov/criminal/fraud/websites

FTC - The CAN-SPAM Act: Requirements for Commercial Emailers

This information is provided under a cooperative agreement between the Better Business Bureau and the U. S. Federal Trade Commission (FTC), which has prepared this information.

Facts for Business

The CAN-SPAM Act: Requirements for Commercial Emailers

The CAN-SPAM Act of 2003 (Controlling the Assault of Non-Solicited Pornography and Marketing Act) establishes requirements for those who send commercial email, spells out penalties for spammers and companies whose products are advertised in spam if they violate the law, and gives consumers the right to ask emailers to stop spamming them.

The law, which became effective January 1, 2004, covers email whose primary purpose is advertising or promoting a commercial product or service, including content on a Web site. A "transactional or relationship message" – email that facilitates an agreed-upon transaction or updates a customer in an existing business relationship – may not contain false or misleading routing information, but otherwise is exempt from most provisions of the CAN-SPAM Act.

The Federal Trade Commission (FTC), the nation's consumer protection agency, is authorized to enforce the CAN-SPAM Act. CAN-SPAM also gives the Department of Justice (DOJ) the authority to enforce its criminal sanctions. Other federal and state agencies can enforce the law against organizations under their jurisdiction, and companies that provide Internet access may sue violators, as well.

What the Law Requires
Here's a rundown of the law's main provisions:

It bans false or misleading header information. Your email's "From," "To," and routing information – including the originating domain name and email address – must be accurate and identify the person who initiated the email.

It prohibits deceptive subject lines. The subject line cannot mislead the recipient about the contents or subject matter of the message.

It requires that your email give recipients an opt-out method. You must provide a return email address or another Internet-based response mechanism that allows a recipient to ask you not to send future email messages to that email address, and you must honor the requests. You may create a "menu" of choices to allow a recipient to opt out of certain types of messages, but you must include the option to end any commercial messages from the sender.

Any opt-out mechanism you offer must be able to process opt-out requests for at least 30 days after you send your commercial email. When you receive an opt-out request, the law gives you 10 business days to stop sending email to the requestor's email address. You cannot help another entity send email to that address, or have another entity send email on your behalf to that address. Finally, it's illegal for you to sell or transfer the email addresses of people who choose not to receive your email, even in the form of a mailing list, unless you transfer the addresses so another entity can comply with the law.

It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address. Your message must contain clear and conspicuous notice that the message is an advertisement or solicitation and that the recipient can opt out of receiving more commercial email from you. It also must include your valid physical postal address.

Penalties
Each violation of the above provisions is subject to fines of up to $11,000. Deceptive commercial email also is subject to laws banning false or misleading advertising.

Additional fines are provided for commercial emailers who not only violate the rules described above, but also:

"harvest" email addresses from Web sites or Web services that have published a notice prohibiting the transfer of email addresses for the purpose of sending email
Generate email addresses using a "dictionary attack" – combining names, letters, or numbers into multiple permutations
Use scripts or other automated ways to register for multiple email or user accounts to send commercial email
Relay emails through a computer or network without permission – for example, by taking advantage of open relays or open proxies without authorization.
The law allows the DOJ to seek criminal penalties, including imprisonment, for commercial emailers who do – or conspire to:

Use another computer without authorization and send commercial email from or through it
Use a computer to relay or retransmit multiple commercial email messages to deceive or mislead recipients or an Internet access service about the origin of the message
Falsify header information in multiple email messages and initiate the transmission of such messages
Register for multiple email accounts or domain names using information that falsifies the identity of the actual registrant
Falsely represent themselves as owners of multiple Internet Protocol addresses that are used to send commercial email messages.

Additional Rules
The FTC will issue additional rules under the CAN-SPAM Act involving the required labeling of sexually explicit commercial email and the criteria for determining "the primary purpose" of a commercial email. Look for the rule covering the labeling of sexually explicit material in April 2004; "the primary purpose" rulemaking will be complete by the end of 2004. The Act also instructs the FTC to report to Congress in summer 2004 on a National Do Not E-Mail Registry, and issue reports in the next two years on the labeling of all commercial email, the creation of a "bounty system" to promote enforcement of the law, and the effectiveness and enforcement of the CAN-SPAM Act.
See the FTC Web site at www.ftc.gov/spam for updates on implementation of the CAN-SPAM Act.

The FTC maintains a consumer complaint database of violations of the laws that the FTC enforces. Consumers can submit complaints online at www.ftc.gov and forward unwanted commercial email to the FTC at spam@uce.gov.

For More Information
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair practices in the marketplace and to provide information to businesses to help them comply with the law. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Your Opportunity to Comment
The National Small Business Ombudsman and 10 Regional Fairness Boards collect comments from small businesses about federal compliance and enforcement activities. Each year, the Ombudsman evaluates the conduct of these activities and rates each agency's responsiveness to small businesses. Small businesses can comment to the Ombudsman without fear of reprisal. To comment, call toll-free 1-888-REGFAIR (1-888-734-3247) or go to www.sba.gov/ombudsman.

April 2004






This information is provided under a cooperative agreement between the Better Business Bureau and the U. S. Federal Trade Commission (FTC), which has prepared this information. The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid these practices. To learn more about the FTC and its services, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

BBB Warns of Phishing Email Received from Epsilon Data Breach

Arlington, VA – Just days after millions of customers' email addresses were stolen in one of the largest data breaches in U.S. history, the Better Business Bureau is seeing one of the first Epsilon data breach phishing scams.

Phishing, a popular emailing scam, is a term coined by computer hackers who use email to fish the Internet hoping to hook you into giving them your logins, passwords and/or credit card information. If you are a customer of one of the companies that had email data stolen, BBB is warning you to be on the lookout for phishing emails.

Typical phishing scammers pose as reputable companies to fraudulently obtain your personal information. In this case, the BBB is now seeing emails being sent from a fake 'Chase Bank,' one of the companies whose data was compromised. Following suit, the email warns that ‘your account’ will be deactivated or deleted if you do not update your profile immediately. The email instructs you to update your account by clicking on the link provided.

“These hackers are looking for you to respond with vital information that can ultimately lead to identity theft,” said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus. “Consumers need to know the red flags in order to keep their identity protected.”

BBB advises consumers that there could be other phishing emails shooting through cyberspace and to do the following if they suspect they have fallen victim to a phishing scam.

Never reply to the email. If the message includes a link within it, never click it. Many schemers use this as way to spread a viral attack on your computer.

Do not give personal or financial information to anyone who contacts you via email. Even if they claim they are from your bank, the IRS or a law enforcement agency, these businesses will not contact you via email; they will send you a letter.

Spread the word. Discuss phishing scams with all the members of your family who have email addresses. Young people are very computer savvy, but may not be scam savvy, and older adults are specifically targeted by scammers because they are often very trusting.

Transmitted information should be encrypted. When sending personal information like addresses, credit card numbers and Social Security numbers over the Internet, make sure the website is fully encrypted and the network is secure. Look for https (the “s” stands for secure) at the beginning of the URL address to confirm its security.

Know the red flags. Watch out for grammatical mistakes in emails. Poor grammar or misspelled words are red flags that the email is probably a scam. Most importantly, never wire money based on instructions in one of these suspicious emails. Scammers prey on those who think they need to wire money to have a situation resolved.
Protect your computer. Keep your anti-virus software up-to-date and run it regularly.

Contact the Federal Trade Commission. The FTC works to legally prevent fraudulent business practices in the marketplace. File a complaint with the FTC by calling 1-877-FTC-HELP.


For more information about phishing scams, visit www.bbb.org.
Reporters: for more information or to schedule an interview with a BBB spokesperson, contact Kelsey Owen at 703-247-9376.


About the BBB
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 65 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visit www.bbb.org/us for more information.

The Growing American Consumer Debt Crisis

Consider the facts: there is over $852 billion in debt in the United States – and 98% of that debt is credit card debt. One out of every seven people uses 80% of their available credit. Most Americans carry at least three credit cards, with an average APR of 13.67%. 73% of Americans rely on credit cards to meet their needs, yet 81% of those same Americans are afraid to discuss their credit card debt.

Americans have a serious problem with credit card debt and it just keeps growing. In 2006, the average balance per open card was $1,033. By 2011, that amount had grown to over $3,752. Even in consumers over the age of 60, who typically live on a fixed income, credit card use has risen at a rate of 4% over every two years.

The problem of mounting consumer debt has unique roots to credit cards. For example, consider this: the average American household without credit cards has approximately $16,000 in debt. Households that carry credit cards have nearly $54,000 in debt. When it comes to late payments, 51% of African American households have made a late payment, while 26% of Caucasian households have made payments late – an annual total of $20.5 billion in late fees.

Regionally speaking, certain cities and states fare worse when it comes to consumer debt than others. Nevada has the most bankruptcy in the country, followed by Tennessee and Georgia. Miami residents owe approximately 22% of their income, while Tampa has the highest income to debt ratio in the country with 17.1%. Los Angeles, not surprisingly, carries the third-highest debt to income ratio in the nation.

So, will this nightmare ever end? Is there any good news on the horizon?

Well, there has been a 5% decrease each year since 2008 on both 30 day and 60 day delinquencies. Less than half of all credit cards are 30 days late; only three out of 10 are 60 days late, and 77% of loans that are 90 days past due have not been defaulted upon. However, 48% of Americans have less than $10,000 in credit card debt. That’s not too bad, considering how prevalent credit cards are in American society.

If you need help managing your credit card debt, you should consider contacting a non-profit consumer credit counseling service to get back on track.



Credit Loan: The Credit Blog http://www.creditloan.com/blog#ixzz1JGETtetG
http://www.creditloan.com/

BBB Warns Consumers Of Kansas Firm's Deceptive Debt Collection Tactics

St. Louis, Mo., April 5, 2011 – A Kansas business criticized for questionable debt collection practices is the focus of 220 Better Business Bureau (BBB) complaints across the U.S., including more than two dozen from the St. Louis area.

The BBB warns consumers to be extremely cautious when dealing with representatives of Regent Asset Management Solutions or Imperial Recovery Partners. Both have operated debt collection call centers in recent months out of the same address: 119th Street in Overland Park, Kan. Regent also had offices in Denver, Colo.

In December, a judge in Denver ruled that Regent Asset Management Solutions and its president, Michael A. Scata, were collecting debts from consumers illegally, in violation of the Colorado Fair Debt Collection Practices Act and the Colorado Consumer Protection Act. At that time, the Colorado attorney general’s office accused Scata and his firm of misleading and deceiving consumers nationwide. Two months later, the attorney general’s office returned to court, claiming that the company had ignored an order restraining its collection activities.

Regent and Imperial Recovery Partners are considered the same business by the Kansas City BBB, which has been handling complaints and working with the St. Louis BBB to investigate company operations. Regent has an “F” grade with the BBB, the lowest grade possible.

Michelle Corey, BBB president and CEO, said Regent ignored the law repeatedly and used threats and harassment to collect debts.

“Time and time again, this company has thumbed its nose at state and federal law,” Corey said. “In many cases, its collectors are refusing to supply even the most basic information about the debts to consumers. In other cases, it appears they are targeting people who already had settled their debts or who never owed the debts at all.”

A woman from Potosi, Mo., told the BBB that Regent representatives wrote and then phoned her numerous times about a $3,000 bank debt. Even after she confirmed with the bank that she owed no money, the calls continued. She said a representative told her, “Ma’m, we can either do this the easy way, or we can do it the hard way.”

In the past 15 months, consumers from 42 states have filed complaints against Regent. Most complaints came from California (36), Missouri and Ohio (29 each), Washington (14) and Kentucky and Oregon (13 each).

In its suit, the Colorado attorney general alleged a pattern of complaints, including consumer allegations that Regent had not supplied written disclosure of the debts or followed other requirements of the Colorado Fair Debt Protection Act.

Consumers in several states have filed federal lawsuits alleging violations of the Federal Trade Commission Fair Debt Collection Practices Act.

Last October, a U.S. District Court judge in St. Louis awarded a woman $3,600 when no one from Regent appeared at a court hearing to respond to allegations it had violated the law. The woman, from St. Louis, alleged that the company had constantly and continuously placed calls trying to collect on an automobile loan that already had been paid. Another federal judge in St. Louis awarded a second St. Louis woman more than $9,000 last year after she alleged a Regent representative made at least nine calls to her home, trying to collect on a debt she did not owe.

A St. Louis woman who said she offered to work with Regent to pay off a $500 debt told the BBB a collector told her she would be put in jail unless she paid.

Federal court cases also have been filed against Imperial Recovery Partners.

Of the 220 complaints filed against Regent and Imperial Recovery Partners, 215 have gone unanswered.

The BBB offers the following advice to consumers contacted by a debt collection firm:


Know your rights. Under federal and state law, debt collectors are prohibited from using threats of violence or harm against a person, property or reputation. They cannot threaten to garnish your wages unless they intend to do so, and cannot use phone calls to repeatedly harass you.
Ask for written proof of your debt. By law, a debt collection agency must provide you with a validation notice within five days of contacting you about the debt.
Tell the collector in writing to stop contacting you. Under federal law, a debt collector cannot continue to contact you – at work or home – once you have told them in writing to stop.
If you have a complaint, you can file with your state’s attorney general, the Federal Trade Commission (www.ftc.gov) or the BBB.
Check out a company’s BBB Business Review by going to www.bbb.org or by calling 314-645-3300.
Contacts: Chris Thetford, Vice President-Communications, 314-645-3300, communications@stlouisbbb.org, or Bill Smith, Trade Practice Investigator, 314-645-3300, tpc1@stlouisbbb.org

The BBB is a nonprofit organization that sets and upholds high standards for fair and honest business behavior. The BBB provides objective advice, free BBB Business Reviews, dispute resolution service, charity wise-giving reports, alerts and educational information on topics affecting marketplace trust. Please visit www.bbb.org for more information.

Company Promised To Help Consumers Reduce Their Mortgage Payments

March 17, 2011
Consumers Say Capital Debt Management Took Their Money, Gave No Help
Company Promised To Help Consumers Reduce Their Mortgage Payments


By Bill Smith
BBBTrade Practice Investigator

A St. Charles County, Mo., marketing company with a troubled history in the mortgage modification business is the focus of new complaints that it convinced customers to pay thousands of dollars to help lower their home loan payments, but then did little or nothing to help them.

The Better Business Bureau (BBB) urges caution when dealing with Capital Debt Management, 3829 Veterans Memorial Parkway, St. Peters. In September 2010, the companys owner, John Jacob Ehlinger, told the BBB that his company was an innocent victim in the failure last year of Home Safe Financial Assistance, a mortgage modification company based in west St. Louis County.

Ehlinger said at that time that his company had done national marketing and sales work for Home Safe. He estimated that as many as 300 homeowners may have lost money to Home Safe when they paid for loan modification services, but got no help in modifying their loans.

Michelle Corey, BBB president and CEO, said the newest round of complaints involving Capital Debt Management raises serious concerns about the firm. "For this company to be in the middle of two separate and questionable mortgage modification campaigns in less than a year is disturbing, to say the least, Corey said. The newest complaints appear strikingly similar to those received during the Home Safe debacle."

Complaints about Capital Debt Management have come from several states, including Virginia, Florida, New Jersey, Ohio and Pennsylvania. Capital Debt Management has an F grade with the BBB, the lowest grade possible.Consumers say they signed up for mortgage modification services after receiving official-looking notices in the mail offering to help them cut their interest rates and house payments. Several said it appeared the notices had come from banks and other institutions where they had their loans. Some said the mailings appeared to be tied to a federal government program.

Several of the complainants said they phoned a toll-free number included in the mailing and spoke with a representative of Capital Debt Management. They said the representative offered to help them reduce their mortgage payments in return for paying up to $3,000. Some said they notified the company within hours or days that they wanted to cancel the contract; others said they filed complaints with the BBB when they decided that they were not getting the services they had been promised. While some of the complainants ultimately received a refund, others say they did not.

"Every time I think about it, I feel like crying," said a consumer from Elkins Park, Pa., who said he lost $2,990.

A notice received by a Bayonne, N.J., couple in December says that their home may be eligible for special modification program guidelines created in conjunction with the 2009 Home Owner Affordability and Stability Plan. It suggested that they could reduce their mortgage to a fixed rate of 2 percent from a variable rate of 6.1 percent and cut their monthly mortgage payment to $1,062 from $1,741.The husband said he phoned a Capital Debt Management representative at a toll-free number and the next thing I knew I was giving him my checking account number and they were taking out payments.

He said that after talking with his wife, he called the company back within a few days and notified it he was canceling the agreement. Still, he said, the company took out a second payment of $996. Later, he was told that unless he supplied certain financial documents your file immediately will be canceled. Even though he did not supply the documents, the company eventually took a third $996 payment from his account.

"I feel foolish," he said.

The fiance of a Navy veteran said he thought his notification was somehow connected to his pending bankruptcy. He called the toll-free number and gave his bank account number to a representative of Capital Debt Management. When he looked at the contract and learned it was not from his bank, he immediately tried to cancel. Still, a $996 payment was taken from his account. The fiance said the company refunded his money only after he filed a complaint with the BBB.

Tom Ratz, who said he was acting chief financial officer of Capital Debt Management, said his company has been working with a company called USLMP of Huntington Beach, Calif., which does mortgage modification work. USLMP, which he says also uses the names Alliance or the Alliance Group, also has an F grade with the BBB, with more than 20 unanswered complaints.

He said that USLMPs role was to handle the actual modification for the homeowners, but said USLMP "kind of dropped the ball." He said Capital Debt Management has ended its relationship with USLMP, much like it did with Home Safe Financial Assistance, and is looking to take over servicing of the accounts itself. He said about 100 homeowners are affected.

"We got them signed up, but they are not getting the service they expected," Ratz said. "We feel bad about what happened."

He said Capital Debt Management is no longer marketing to new customers.

Earlier this year, new Federal Trade Commission rules went into effect barring businesses from taking advance fees for home loan modification work.

On its website, Capital Debt Management says it offers forensic mortgage loan audits to help homeowners determine whether there were any violations of state or federal laws, overcharges or other problems associated with their loans. The audit then can be used by borrowers as leverage to obtain a loan modification from the lender, the site says.

In 2010, the FTC issued a consumer alert addressing what it called forensic mortgage loan audit scams. The FTC said: "There is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief even if theyre conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer."

The BBB offers the following tips for homeowners hoping to modify the terms of their home loans:

Beware of any company that promises to help you modify your mortgage in return for an advance fee. As of Jan. 31, such business practice is illegal.
Beware of any company asking you to pay for a forensic loan audit. These audits may not help you reduce your loan rates or mortgage payments.
Try to work with the bank or other institution that holds your loan before going to a third party.
Check BBB Business Reviews at www.bbb.org or call 314-645-3300.

Published by Better Business Bureau
Copyright © 2011 BBB Serving Eastern Missouri and Southern Illinois. All rights reserved.

Dealing with Debt - from the Fair Trade Commission

Debt Collection

If you are behind in paying your bills, you can expect to hear from a debt collector. A debt collector is someone, other than the creditor, who regularly collects debts owed to someone else. Lawyers who collect debts on a regular basis are considered debt collectors, too.

Debt Relief Services

If you’ve maxed out your credit cards and don’t know how you’re going to pay off your debts, you may think that a company that promises to erase the debt for pennies on the dollar is the answer to your prayers. Not true! Debt negotiation can be risky, and it can have serious, long-term consequences for your credit report and your ability to get credit in the future.

Credit Repair

Everyday, companies target people who have poor credit histories with promises to clean up their credit reports so they can get a car loan, a home mortgage, insurance, or even a job – after paying a fee for the service. The truth is that no one can remove accurate negative information from your credit report. It's illegal.

Advance Fee Loans

If you’re looking for a loan or credit card but don’t think you’ll qualify – or if you’ve been turned down by a bank because of your credit history – you may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. Should you apply, you’ll likely find out that you have to pay a fee just for the promise of the loan. Best to ignore these ads or sites. If you have to pay a fee for the promise of a loan or credit card, you’re dealing with a scam artist. More than likely, you’ll get just an application for a credit card, a stored value or debit card, or a card that has so many strings attached, it’s practically worthless.

Vehicle Repossession

If you’re like most people, you rely on your vehicle to get you where you need to go – and when you need to go – whether it’s to work, school, the grocery store, or the soccer field. But if you’re late with your car payments, or in some states, if you don’t have adequate auto insurance, your vehicle could be taken away from you.

Identity Theft Information

What is identity theft?

Identity theft occurs when someone uses your personal information to commit fraud or other crimes. The thief takes your Social Security number, bank account number or other information and causes problems, like taking out loans in your name or charging money to your bank account or credit card.

Preventing identity theft

Follow the good habits below to prevent identity theft:

• Don't give out your Social Security or account numbers unless you initiate the contact.
• Leave your Social Security number off checks and driver's license.
• Shred trash with sensitive information. Include convenience checks and credit-card offers you get in the mail.
• Send sensitive mail using a Post Office drop box, rather than your mailbox at home.
• Carry only the credit cards and documents you need on a daily basis. Don't carry your Social Security card.
• Opt out of pre-approved credit card offers and get fewer solicitations at home: http://www.optoutprescreen.com/ or 888-567-8688.
• Use virus protection, a firewall and spyware detection on your computer.
• Freeze your credit report (see below).

How do I detect identity theft?

• Check bank statements at least monthly - watch for unauthorized withdrawals and debits.
• Check credit card statements at least monthly - watch for unauthorized charges.
• Check your free credit report three times a year - watch for unrecognized entries (see below).

Free credit report

http://www.annualcreditreport.com/ or 1-877-322-8228
Before you start: Watch for confusing sites requiring a purchase of another product. For example, at the Experian site, you may see a "free credit report" promoted. However, to get this report you will first have to enroll in a service with a monthly fee of $13.
There is only one place to get a free credit report: http://www.annualcreditreport.com/ or 1-877-322-8228. Three credit bureaus participate: Trans Union, Experian and Equifax. Choose which company's report you want to see - the law allows you one free report per year from each company.

Freeze a credit report

By placing a security freeze on your credit report, you make your personal information useless to a thief. When a lender or creditor tries to access your credit report, they will not be able to see it. Thus, they won’t issue new credit in your name. If you freeze your credit report, you can temporarily lift it when you need to apply for credit.
Each credit bureau charges $5 for this service, and you can find instructions at:

• Experian
• Equifax
• TransUnion

What should I do now that theft has happened?

Contact Us

You also can e-mail the Attorney General's Consumer Protection Division if you have questions.

• Act quickly
• File an Identity Theft Complaint with the Attorney General's Office. You can fill out the form on your computer but remember to make a copy for yourself before closing it.
• Contact your bank or credit card company and report it: State and federal laws may protect you against unauthorized charges and withdrawals.
• File an identity theft incident report with police and keep a copy. Many banks and creditors will ask for it. Also, prosecutors can seek restitution from the thief.
• Close the accounts you know the thief has accessed. Use new account numbers and passwords.

- taken from Missouri Attorney General's office website

About Responsible Consumer Loans

We look at how the personal installment loan industry began and how these loan products continue to serve consumers today.

The traditional small-dollar personal installment loan has been the responsible, affordable, and safe lending option for consumer’s borrowing needs for the past 100 years.  We are a licensed and regulated industry that was created over 100 years ago to provide responsible, affordable, and safe small-dollar personal loans. Our loans are given one-on-one.  With the traditional personal installment loan, debt is reduced on a timely schedule that helps to both minimize interest costs and avoid situations that lead to financial distress. Personal installment loans have no balloon payments that people can’t afford, or minimum payments which allow people to borrow more than they should or keeps them in debt much longer than they need to.

Small-dollar installment credit has always been in demand for unexpected personal expenses and important household purchases. This is true today as it was over 100 years ago, when the licensed and regulated small-dollar installment industry was created. The recent FDIC Small Loan study stated that there is, and always has been, a significant need for small-dollar personal loans.

- Responsible Consumer Loans

3 Top Scam Warnings With Debt Consolidation Settlement Services

1.) If a debt settlement company approves you on the first phone call with out even seeing your creditor account information.
These companies are just telling you what you want to hear. You have to qualify and that requires proof, not just you telling them about your debt.
Make sure the debt settlement you choose has you proof your debts and your situation to qualify for debt relief hardship programs. Only certain types of debts qualify and will even settle, others will not. The debt relief service you choose should have a large network of creditors that they already work with, to provide the best service. That way they know they can help you and actually settle the account the way they claim to.
If your company just approves you and doesn't know all about your account and the creditor it is with, then how do they know they can settle the account for you.
2.) A debt negotiation company has you pay all their fees upfront.
This is a big issue, and happens a lot, companies will require you to pay upfront all fees, and even sometimes in the first phone call when you first talk to them. These companies can end up just taking your money and not providing you quality service.
Make sure the company you choose spreads out it's fees, to work with you and show that they back up their services.
3.) A company has you deposit money into your own savings account that you have or set-up on your own.
Watch out, because it is much easier for a company to walk away and they write you a letter after 6 months or so saying: "sorry we weren't able to settle your debts" and they keep your fees.
Make sure your debt settlement service uses a safe, secure, FDIC insured bank, for a special purpose account to keep you money in trust, to protect yourself.

Article Source: http://ezinearticles.com/?expert=Jeff_T_Forman

Article Source: http://EzineArticles.com/922455