The lending trade is full of tricks that are legal and that are wrong. It is legal at this time for credit card companies to raise interest rates 20% to 30% if you default on a payment to them or any other creditor.
Consumer safety and protection from the unrestrained greed of lenders has been a topic of President Obama's discussions on Late Night with Jay Leno and in town hall meetings he attended while in California this past week. Federal credit card regulations are set to go into effect in July 1, 2010 but until then things are likely to get worse.
So, in the meantime, it is wise for consumers to carefully read notices received from the companies that they have a credit card with and keep a sharp eye on the interest rate on their statements each month. Traditional fees are going up and new ones are being created, like Chase's $10 month charge for accounts that carry a high balance but have little new activity. The credit card companies collected $19 billion in penalty fees last year and are expected to exceed $20.5 billion in penalty income in 2009.
Be Aware – Foreclosure Scams Increasing
The Federal Reserve Board has put out several warnings concerning the rise in offers that guarantee to stop foreclosure. Reputable counselors will not make statements of that nature. They will also be found on the Department of Housing and Urban Development's(HUD) list of approved agencies. The HUD website has a searchable list of HUD-approved housing counseling agencies; their information contact number is 877-483-1515.
Know that hundreds or thousands of dollars are not normal fees when working with a housing counselor. Requests for fees prior to providing services or accepting payment only by cashiers check or wire transfers are red flags of a scam. Don't sign anything before reading it carefully, or better yet before having an attorney look it over especially if it involves transferring the title of your home to someone else.
The mail, phone, or face-to-face offers made to take care of your foreclosure issues that sound to good to be true usually are exactly that. Foreclosure rescue firms are preying on homeowners while they are under extreme pressure. They find distressed homeowners through public foreclosure announcements or government offices and send what seem to be personalized correspondence. Others spend money advertising on TV, the internet, billboards, etc. This is big business, they can afford it.
Fraudulent professionals use partial truths and lies to get quick up front fees or mortgage payments from the homeowner, that they do not pass on to the lender. Some assume ownership of the property by having the homeowner sign it over to them and siphon off the equity or take the property outright.
The Federal Trade Commission, the national consumer protection agency, provides information about legitimate options for homeowners facing foreclosures, on their website. There are free counseling services in some areas and many low-cost legitimate housing counseling firms. Homeowners want to be certain they are working with one of them.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
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please contact Coastal News Contributor at news@coastalcreditsolutions.com |
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