| IMPORTANT FACTS YOU NEED TO KNOW ABOUT DEBT COLLECTIONS 
THAT MIGHT MAKE YOU REST BETTER AT NIGHT! 
DON'T BE BULLIED BECAUSE YOU DON'T KNOW THE LAW! 
KEEP READING TO KNOW WHEN ENOUGH IS ENOUGH LIVE LIFE IN THE HASSLE FREE ZONE KNOW YOUR RIGHTS! HOW FAR IS TOO FAR???? IF YOU ARE EXPERIENCING THESE CALLS THEY HAVE GONE TOO FAR ! WHO PROTECTS WHEN THE PREDITOR IS THE COLLECTOR FROM HELL? USING THE THINGS YOU DON'T KNOW ABOUT THE LAWS TO DRIVE YOU INSANE AND TO PICK YOU DRY? THIS IS SAD BUT THIS IS JUST HOW BAD IT'S GOTTEN AND NOBODY IS HOLDING THEM RESPONSIBLE, YOU CAN HOLD THEM ACCOUNTABLE New York Attorney General Cuomo Shuts Down Collection Agencies In Investigation Of Consumer Abuse Of Various Shell Companies And Fictitious Law Firms!  Buffalo Biz Journal
Attorney General Andrew Cuomo obtained a court order against Lamont Cooper and his two Buffalo-based debt collection companies — Emanee Development Inc. and Dial Tech LLC — under which the companies will shut down.
Also, in an announcement made Wednesday, Cooper will be forced to pay restitution to consumers statewide.
According to Cuomo’s office, employees at both companies unlawfully lied to consumers, threatened to arrest them and intimidated them into paying debts that they sometimes did not owe. They would call third parties including neighbors or employers to embarrass and harass consumers. According to the Attorney General’s Office, Cooper operated Emanee and Dial Tech, which did business under the names of various shell companies and fictitious law firms across the state, including: Claims Process Services, Claims America, CMC Recovery Services, Lomax & Barnes and Murray, Bradshaw & Associates. Collectors at the companies used various tactics to collect debts including falsely accusing customers of illegal activities, telling them they would be arrested within 24 hours if they did not pay their debt and threatened them with lawsuits, while posing as lawyers. Some consumers, intimidated by these unlawful practices, paid debts that they did not even owe, according to the AG’s ongoing probe into the conduct of collection agencies across the state. Read the Entire Article HERE. Update ~ ( HERE) Cuomo's office says it is sending subpoenas to at least 15 other collection agencies across the state as part of a broad probe of the industry.
COMMON QUESTIONS Q. If I pay a debt collection agency the full amount owed, how will my credit report be affected ? A. In this situation, your account will show a zero balance, but it will still have a notation that explains it was paid unsatisfactorily. Whether you pay the full balance or pay a lesser amount agreed upon by the debt collector, an adverse notation generally remains on your credit report for seven years from the date the account was charged off as uncollectible. If a debt collector tries to convince you that payment will remove all derogatory notations associated with that account from your credit report, have them send you that commitment in writing. Q. Is there a statute of limitations on debts in New York State ? A. Creditors are increasingly selling their old "charged off" accounts to collection agencies for pennies on the dollar. The collection agencies attempt to obtain payment on these accounts. This practice is legal. However, consumers should understand that in New York a creditor has six years to sue a debtor to collect on the amount owed. Although a creditor may attempt to sue a debtor after this period of time, the creditor may not be successful. If you are contacted about debt that is "older" than six years, you may advise the collection agency that you will pay them only if a court finds that you currently owe such amounts. Q. How long will my credit report be affected by not paying my bills on time ? A. The federal "Fair Credit Reporting Act" states that most negative information can stay on your credit report for seven years from the date of last activity. The date of last activity is usually the date that the creditor charged off your account as uncollectible, and it is usually noted on your credit report. Q. I am being harassed by debt collectors, but I’m sending them all I can. Is this legal ? A. Debt collectors are not required to accept anything less than full payment. However, in most cases, once a debt collector understands that you are paying all you can afford, he/ she usually will cooperate with you. Debt collectors cannot harass or abuse you, according to State and federal laws. Q. What should I do if I believe a debt collector has violated the law ? A. You may have legal rights. Problems with a debt collector should be reported to the Office of the New York State Attorney General or the Federal Trade Commission: EVERY STATE HAS ONE. IF YOU ARE NOT IN NY STATE, FIND THE INFORMATION FOR YOUR SPECIFIC STATE New York State Attorney General Federal Trade Commission Consumer Frauds & Protection Bureau Consumer Response Center 120 Broadway, New York, NY 10271 Washington, DC 20508 1-800-771-7755 1-877-382-4357 www.oag.state.ny.us www.ftc.gov February 2008 NEW YORK STATE CONSUMER PROTECTION BOARD ADVOCATING FOR AND EMPOWERING NY CONSUMERS 1-800-697-1220 WWW.NYSCONSUMER.GOV DAVID A. PATERSON MINDY A. BOCKSTEIN GOVERNOR CHAIRPERSON AND EXECUTIVE DIRECTOR IMPORTANT INFORMATION ABOUT CREDITORS AND THEIR ACTIONS A store, bank or other creditor may hire a debt collection company to recoup owed money. Some intimidating debt collectors have harassed people with threatening phone calls early in the morning or late at night. Other agencies have attempted to collect debts that never existed, while others have seized Social Security, Veterans benefits, alimony or child support, and/or other protected benefits from personal bank accounts. These actions are against the law. This brochure shows how you can spot illegal collection tactics and how the law can protect you. The debt collection process officially begins when you are first contacted by a debt collector. The debt collector may also send a notice to the credit reporting bureaus. Within 5 days of being contacted by a debt collector, you must be mailed a letter detailing: 1) the debt amount; 2) the creditor’s name; 3) a statement that the debt is assumed to be valid unless the consumer disputes the validity of all or any part of the debt within 30 days after receiving the notice; and, 4) a statement that on written request, the debt collector will provide the consumer with the original creditor’s name and address. If you dispute owing part or all of the debt, or wish to know the name and address of the original creditor, write a letter to the debt collector within 30 days. (Send your response by certified mail to confirm that your letter is received.) The debt collector must cease all collection activity until it provides verification of the debt or the original creditor information. A debt collector could verify the debt by providing an account history, for example. CONSUMER SAFEGUARDS A debt collector CANNOT harass you by: • Threatening violence or harm or by using profane language; • Calling you repeatedly; • Reaching out to others, except to obtain your contact information. Debt collectors CANNOT make false statements: • Implying that he or she works for a law enforcement or government agency or credit-reporting bureau such as TransUnion, Equifax or Experian; • Using a false name; • Misrepresenting the amount of the debt; or • Misrepresenting the legal status of the debt. A debt collector CANNOT contact you: • At inconvenient times, such as before 8 a.m. or after 9 p.m., or at inappropriate places unless you otherwise agree to such contact; • At work if the debt collector knows that the employer disapproves of such contact; • If you are represented by an attorney. They must contact your lawyer instead; • If you indicate in writing that you do not wish to be contacted. (Note: The debt collector may resort to legal action to pursue its rights.) A debt collector or a bank CANNOT seize SSI; Social Security; welfare; alimony or child support; unemployment, disability, Workers’ Compensation or Veterans benefits; or public or private pensions. • By contacting your bank, you can try to make arrangements to recoup lost funds and to protect these monies in the future.
August 3, 2009
JHow to Get Out of Debt Part I Many times, when people are looking for ways to reduce their debt, they go looking to find someone else to help them with their problems. The truth of the matter is that every person is capable of figuring their way out of debt if they have a job and are bringing in some kind of money. Below are some tips to employ to help you gradually, or quickly, work your way out of debt. 1. Write down all your debts. This is always the first step, because, as Dr. Phil might say, you can’t address what you won’t acknowledge. Take one month’s worth of bills and write down what each is, as well as what the amount is that you’re expected to pay. As it pertains to credit cards, also write down the annual percentage rate. Also, write down how much you estimate you spend on things such as food, gas, entertainment, etc. 2. Calculate your monthly net income. Net income means how much you actually bring home, or have deposited into the bank. Hopefully, it’s the same amount every pay period; if not, then it’s going to be a total estimate. There’s a few ways of doing this. One, if it’s the same amount, multiply that by either 52 if you get paid weekly, 26 if you get paid bi-weekly, or 12 if you get paid monthly. After you’ve done the first two things, see what the difference is between what you’re bringing home and what your monthly bills come to is. Hopefully, you’re on the positive side as far as income goes. If you’re close either way, there’s still hope. If you’re in the ditch, and your expenses outweigh your income, you’re in trouble, but there’s still hope for you. 3. Take a look at the bills you’re paying to see what may be there that you either don’t really need, or can reduce. For instance, if you have cable and have all the premium channels, you could probably get rid of some of those to reduce your bill. Maybe with your cell phone you can eliminate the internet for awhile, or reduce your text message plan somewhat. These are luxuries, not necessities, and you might miss them, but your wallet will thank you. Most people will find that if they really take a good look at things like this, they can save anywhere from $100 to $300 a month, depending on how much they were spoiling themselves. 4. Take a better look at expenses that aren’t monthly bills. You’re probably not going to be able to reduce your gas consumption because you’re not really going to save all that much money taking the bus to work unless you drive long distances, in which case taking the bus might make a lot of sense. However, reducing your entertainment budget might be a big deal, especially if you’re eating out twice a week, or every day for lunch. It’s almost better to increase your food bill a little bit to get things so you can take a lunch with you, and maybe eat out once every two weeks, at a less expensive restaurant, instead of weekly. If you’re really in trouble, extra spending to make yourself feel better will only hurt you. See more:
How to Get Out of Debt Part II How to Get Out of Debt Part III Dr. Phil’s Tips to Eliminate DebtThe 12-step Get Out of Debt Program Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
RESOURCES THAT MAY HELP  How to Get Out of Debt Part II Continuing with our miniseries on getting yourself out of debt, we tackle the concept of payment plans. Click here to read How to Get Out of Debt Part I. 5. Set up a payment plan; yes, the dreaded “budget” word. Luckily, you’re already partially there because you’ve listed all your debts. If you have one and know how to use it, list everything in a spreadsheet program because this will make it easy to track, or at least set everything up. Here’s what you want to do. First, figure out which bills are due when. Base it off either your one week or two week payment schedule; if you get paid once a month, you can skip this part. Set up a schedule where you know when you’ll pay which bills for at least six months. You’re probably wondering why. Earlier we figured out what your net income was for 26 weeks. However, most people budget for twice a month payments, which means you actually get two extra weeks of payments a year. So, what you’ll find is that, if you extend your budget for six months, you’ll gain a pay period, and thus earn yourself a little benefit and boost which you’d have never known about if you hadn’t budgeted. Something else you’ll do with your payment plan concerns your credit card payments. There are three schools of thought on this one. The first says to tackle the card with the highest interest rate first. The second says to go after the cards with the highest balances first. The third says to go after the cards with the lowest balances first. Let’s take a look at each of these. The cards with the highest interest rates add more to your balances on average than other cards. Going after these balances saves money because it saves on the amount of interest you’re getting charged for. The cards with the highest balances are the ones that make you feel beaten up and overwhelmed. If you go after these balances first, as you see them coming down your stress level will decrease. My favorite, however, is going after cards with low balances first. The principle behind this is that everyone works best when they can see successes. The quicker you can pay off a balance, the better you’ll feel, and you’ll be ready to tackle the next card. Of course, the idea behind all three of these ideas is that, whichever one you select, you pay more than the minimum balance, at least 50% more if you can afford it, and stop using all of your cards except possibly one; we’ll come back to that concept. Then, when you pay off the low balance card, you take that payment and apply it to the next lowest card, and so forth. The thing is, if you have a low balance with a high interest rate, this is a win-win. If your highest balance is also your highest interest rate, you’re heading towards trouble quicker, and you just might have to go after that one first, bringing the balance down to a safer level before going after one of your other cards. Why do I recommend you keep one card going? The reality is that if you can use one of your credit cards for small purchases, what you’ll have to pay the next month is relatively low compared to having to pay cash for everything. You don’t use it for everything in a month, just a couple of things. If you put gas in your car weekly, maybe throw one of those weeks onto your credit card. Maybe one week in the month use your credit card for the purchases. This is extreme, but if you have the space on the card it might help for a quick fix, though we’re weaning you away from credit cards eventually. See more:
How to Get Out of Debt Part III 75 Painless Ways to Save Money 8 Simple Ways to Save Money 7 Days of Money Saving Tips IS BANKRUPTCY A GOOD OPTIONS? 
DOES BANKRUPTCY HELP??? IS BANKRUTCY AN END TO A MEANS? OR IS BANKRUPTCY A MEANS TO AN END? 
May 27, 2009IN WHICH DIRECTION DOES YOUR CASH FLOW? 
BANKRUPTCY DOES NOT NECESSARILY MEANS THE MONEY WILL BE FLYING OUT OF THE WINDOW In order to qualify for Chapter 7 Bankruptcy, you must pass the “means test.” That means that if your income is less than the median income in your county, you qualify to apply for bankruptcy protection. In order to find out if your income is above or below the median income for your area, please a bankruptcy lawyer for more information and one of our experienced bankruptcy attorneys can apprise you of where your income falls in the context of the “means test.” If, however, your income is above the median income for your county, you may still qualify, but additional information that you provide will have to be. When one files for Chapter 7 bankruptcy, the court appoints a trustee who will collect and sell (“liquidate”) all non-exempt property and distribute the proceeds to the appropriate creditors. Any remaining dischargable debts will be discharged at the end of the process. The definition of “exempt assets” varies from state to state, but in New York, the following assets are generally exempt from liquidation in Chapter 7 bankruptcy: - $2,500 in cash and $2,500 in clothing and household furniture, or $50,000 in equity in a home that is located in New York and is the principal residence of the debtor
- a car with up to $2,400 in equity,
- “qualified” retirement plans, such as 401ks and 403b plans,
- IRAs
- up to $600 in work tools
- personal injury compensatory recoveries to up to$7,500 (not including pain and suffering)
- security deposits
Any excess equity in your home or car, above the levels outlined above, must be “cashed out” in order to pay your creditors. It should be noted that certain debts are not dischargable in a bankruptcy proceeding. The following debts are among the most common that generally may not be discharged: - Child Support
- Spousal Support
- Back Taxes
- Most Student Loans
Contact our office for bankruptcy filing information and help.Other related posts: - Who Should File for Bankruptcy?
- Which Type of Bankruptcy Should I File?
- Chapter 13
- How Do I Rebuild My Credit After Bankruptcy?
Picture courtesy of NateBurnsteinlaw.com
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