Category: CREDIT BLOG

If You Use a Yahoo or AOL Email Address. Your Credit Score Probably Sucks

Posted on November 17, 2011 by - CREDIT BLOG

An interesting credit score data mining observation has emerged from our friends over at Credit Karma.
Apparently they took a look at the average credit scores of 20,000 people and placed those scores into bins based on the email address people use. They then calculated the average credit score.
Now your email domain is not an indication of credit worthiness and switching to a different email provider does not impact your score at all. It’s just an interesting observation of the credit scores of people that typically use a particular email provider.
If you use BellSouth as your email provider, your score is the highest in the survey results. Congratulations.
If you are using an email address from Yahoo or AOL, the average credit score of your fellow email users is, well, in the toilet.
Seems among the mainstream free email providers, Gmail users are the king of the credit score hill, followed by MSN, Hotmail, and Yahoo at the bottom. It looks like the average credit score of GMail users is 682 while Yahoo users are down at 640. That’s quite a difference.

Author: This article was contributed by GetOutOfDebt.org, a site that provides free help for people looking for debt consolidation advice.
Source: If You Use a Yahoo or AOL Email Address. Your Credit Score Probably Sucks
Source: Defendants Lose The Weight Of Their Assets In “Hoodia” Weight Loss Case

Defendants Lose The Weight Of Their Assets In "Hoodia" Weight Loss Case

Posted on November 14, 2011 by - CREDIT BLOG

In April of 2009 the Federal Trade Commission (FTC) charged makers of a “Hoodia” weight loss supplement with deceptive advertising. The companies, Nutraceuticals International, Stella Labs and key company players and controllers David Romeo, Deborah Vickery, Craig Payton, and Zoltan Klivinyi claimed that using their product would lead to weight loss and appetite suppression.
In its complaint, the FTC alleges that the defendants not only made false and deceptive claims about what hoodia could do, but also, on one or more occasions, claimed that their product was Hoodia gordonii, a plant native to southern Africa, when it was not. They claimed their product was scientifically proven to suppress appetite, resulting in weight loss; and was clinically proven to reduce caloric intake by 1,000 to 2,000 calories per day.
Last week the charges were settled against the aforementioned (sans Klivinyi who is no longer residing in the United States). Under the settlements:
David Romeo, controller of Nutraceuticals International and Stella Labs, are banned from making any weight-loss claims while marketing foods, drugs, and dietary supplements. The settlement imposes a $22.5 million judgment against Romeo and the two companies, which will be suspended when Romeo forfeits his vacation home in Vermont, and assigns to the FTC the right to collect on $635,000 in business loans owed to him. If it is later determined that the financial information Romeo gave the FTC was false, the full amount of the judgment will become due.
Nutraceuticals International principal Craig Payton is banned from marketing any foods, drugs, or dietary supplements. The order against Payton does not require him to forfeit any assets, as they were already seized in an unrelated federal drug case.
Nutraceuticals International marketing executive Deborah Vickery is required to pay a $4 million judgment, which has been suspended due to her inability to pay. If it is later determined that the financial information she gave the FTC was false, the full amount of the judgment will become due.
All five defendants (the three mentioned and the two companies) are prohibited from making any false or unsupported claims about foods, drugs, or dietary supplements, and from helping others to make these claims. They also are barred from misrepresenting the results of any scientific study – Source.
Consumers should be wary of any dietary supplement and/or weight loss diet ad. As with anything else in life, if it seems too good to be true, it usually is. Take caution folks. Talk to your doctor about any weight related questions or concerns.
Author: This article was contributed by GetOutOfDebt.org, a site that helps free help for people getting out of debt.
Source: Defendants Lose The Weight Of Their Assets In “Hoodia” Weight Loss Case

Chimney Sweep Scams Sweeping The Country

Posted on November 2, 2011 by - CREDIT BLOG

This year like many others I’ve found an early winter and cold autumn nights. In an attempt to boycott the cold weather I refused to turn the heat on in my house until absolutely necessary. I was determined to make it through the month of October without doing so, yet, on the 30th it became so cold here in North Carolina that I cracked.
One alternative I wished that I had at my frost bitten fingertips was a fireplace. A real fireplace (not the fake, smelly, gas powered crap I have).
It’s that time of year when those lucky enough to posses such amazing fireplaces are getting them ready for the cold winter nights. Unpacking fleece blankets, chopping or buying fire wood, cleaning chimneys: the usual winter preparations.
However, this winter the Better Business Bureau (BBB) is warning consumers to be extra careful when choosing a chimney cleaner as they have received more than 380 complaints this year alone already compared to the 342 complaints received in all of 2010.
The BBB states in a recent press release about this matter:
In some cases, consumers have reported calls stating the town fire department recommends the resident’s chimney be cleaned. The calls go on to recommend a particular chimney sweep and endorse their services on behalf of the fire department. Though town fire departments do recommend having chimneys cleaned on an annual basis, they do not endorse any particular company or inspect chimneys. Many scam artists are targeting the elderly, making vague, unclear phone calls claiming they have done business in the past and it is time for their annual sweep.
Scam artists are also advertising at a much lower price than legitimate businesses. Typically, a professional chimney sweep will charge between $150 and $200 for the cleaning of one chimney shaft, whereas scam artists are charging as little as $50. BBB advises that if a price sounds too good to be true, it usually is.
Many scam artists use a low price tactic to get in your door, at which point they recommend additional work be done immediately, bullying the consumer into a much more expensive bill. If the price you are quoted is significantly lower than that of other businesses, it should be viewed as a red flag.
BBB suggests consumers do their homework before hiring a chimney sweep and inviting them into the home. Additionally, check with your local fire department and with the Chimney Safety Institute of America (csia.org).
BBB recommends using these helpful tips when hiring a chimney sweep:
Check out a chimney sweeping business at bbb.org. Always check with BBB for a trusted chimney sweeping business in your area. Are they an Accredited Business? Do they have any outstanding complaints?
Find out how long they have been in business. How long have they operated in your area? Find out if they offer current references, or if you know anyone who has used their services in the past.
Ask if they have a valid business liability insurance policy. In the event of an accident, this policy keeps your home and belongings safe.
Find out if any employees are certified through CSIA. Though this is not law, it is recommended by the fire department, and speaks to the qualifications of the individual or business you hire. CSIA is a national nonprofit agency with a certification program for chimney sweeps and certification is required of members of the National Chimney Sweeping Guild
Author: This article was contributed by GetOutOfDebt.org, a site that helps people find good credit card relief solutions to deal with tough money troubles.
Source: Chimney Sweep Scams Sweeping The Country

This guy is stuck …

Posted on October 29, 2011 by - CREDIT BLOG

Here is his problem..

  • He has over $41,000 in credit card debt.
  • He has other unsecured loans totaling $12,000.
  • Although he hasn’t been late on his bills yet, he can’t seem to get caught up and doesn’t think he will ever dig himself out of this debt.
  • When he puts his debt into a debt reduction calculator, it says that it will take him 21.6 years to pay everything off at his current pace.

(Can you say …. STUCK?)
He emailed me and asked for my advice… I explained to him his three options:
Option #1 – Continue to pay the bills for 21.6 years.
Option #2 – File for Bankruptcy
Option #3 – Negotiate his debt with his creditors.
Let’s review…:
Option #1 – Continue to pay, which needs no explanation. This client did call the credit card company and got his interest rates lowered, however, by following their payment plan; he will be paying for 21.6 years.
That is like being held hostage by your credit card company for 21.6 years. I say “held hostage” because I believe that.
Yes, he took out the debt, but to pay on $41,000 in credit card debt for 21.6 years… is a crazy thought and in my opinion, other options need to be looked at.
Option #2 –Bankruptcy. If he qualifies for a Chapter 7 bankruptcy, he will have no more debt, however, the bankruptcy will be on his credit report for 10 years.
He can easily repair his credit (to 720+) after the bankruptcy, which can be done in 1 ½ to 2 years.
There are two downsides to this option;

  1. The bankruptcy on his credit report. That will impact his ability to borrow for the next 2-3 years.
  2. Does he qualify for a Chapter 7 Bankruptcy? Believe it or not, many people cannot qualify for a bankruptcy because their income is too high.

If this is the case, he will have to file a Chapter 13 Bankruptcy. That means he will have to repay all his debt plus have a bankruptcy on his credit report.
Let’s move on to Option #3.
Option #3 – Renegotiate his credit card debt with the credit card company.
Here is what I know for sure:

  1. Your credit card company will not negotiate with you unless you stop paying your bills. They may tell you differently, but this is what I know to be true.
  2. Your credit card company will lie to you so you continue to pay. I’m sure this is not their “policy,” but when you combine eager employees looking to get their bonus with vulnerable debtor – this happens.
  3. Once delinquent, they will put your phone number into an auto dialing systems. This means you will get up to 8 calls per day trying to collect payment. … Ouch!
  4. If you understand how to negotiate with your credit card company (and I don’t), I hear from numerous clients that they will offer you a settlement somewhere between 15-40%. Meaning, if this gentleman did it right, he would pay off his credit card debt for between $7,950 – $21,200. You read that correctly, he would pay off $53,000 in debt for between $7,950 and $21,200.
  5. After you pay off your debt, our clients are getting back to a 720+ credit score in approximately 18-24 months.

The biggest problem with Option #3, is having the stomach to handle the negotiations… because it is very stressful and daunting. And, if you don’t know the proper way to negotiate, you will pay more than you should.
If this sounds like your situation, listen up.
I’m going to put together free information designed for those that have more than $20,000 in debt and would like to know and understand all their options.
If you want to be informed about this information, give me your name and email below!
Once I do the interviews or webinars, I’ll email them to you.
I know this is a long email… thanks for reading!
If you have debt over $20,000 and this post seems to be written for you, submit your name and email below. I’ll provide you additional free information that I hope will help you choose the right option for yourself.

Free Government Grants, Diet Pills and Credit, Oh My!

Posted on October 25, 2011 by - CREDIT BLOG

Looking for free government grants endorsed by President Obama and Vice President Biden? Dietary supplements supported by scientific research and endorsed by Oprah? How about exclusive credit offers? Keep looking.
The Federal Trade Commission (FTC) has halted an operation called, the “Grant Connect” program, that allegedly deceived and mislead consumers about bogus products and services with unsubstantiated claims.
The complaint lists Juliette Kimoto and Johnnie Smith, amongst others, behind the “Grant Connect” program. As part of an agreement with the FTC several defendants have agreed not to market products and serviced similar to those they sold and pitched to consumers previously. Settlements also impose an almost $30 million judgments against them.
Allegedly “Grant Connect” programs used pictures of political figures and celebrities to make it appear that they endorsed their products they were selling. They used pictures of President Obama, Vice President Biden, and the American flag to bolster claims that their bogus government grants service was affiliated with the U.S. government. They promoted their dietary supplement by falsely claiming that it was endorsed by Oprah Winfrey and supported by scientific research, and failed to adequately disclose that their credit offers were merely memberships to a costly shopping club.
The FTC claims that the defendants failed to disclose to consumers that purchased their products that they would be enrolled in continuity plans and charged high monthly fees for mostly unrelated products along with using fake testimonials to promote products.
The first settlement order announced October 17, bans defendant Johnnie Smith from marketing or selling grant-related products or services, credit-related products, work-at-home business opportunities, weight-loss related dietary supplements, and other products or services using a negative-option or continuity program in which consumers are billed automatically until they decide to cancel.
Smith also is banned from assisting anyone else selling these programs or products and from taking customer payments using pre-approved electronic fund transfers. Finally, Smith is banned from using testimonials to sell products or services, and is subject to the monetary judgment, under which he will pay $45,000.
The second settlement order bans Juliette Kimoto and four companies she owned from: selling grant-related products or services, credit-related products, or work-at-home business opportunities; selling products or services with a continuity or negative-option program; taking consumer payments by pre-authorized electronic funds transfer; assisting others engaged in these activities; and using testimonials.
The second settlement order also bans the four companies from marketing dietary supplements claimed to assist in weight loss or other specified outcomes, and prohibits Juliette Kimoto from making misleading health claims related to dietary supplements. The order also requires Juliette Kimoto to pay more than $90,000 and to turn over various personal assets, including jewelry, a piano, and a 1967 Chevy Camaro, along with all the cash and other assets held by the entities she owned. The total value of the cash and assets turned over by Juliette Kimoto and the companies she owned exceeds $220,000
Author: This article was contributed by GetOutOfDebt.org, a site that helps people find good debt relief solutions to deal with tough money troubles.
Source: Free Government Grants, Diet Pills and Credit, Oh My!

Divorce and Credit … Read this NOW!

Posted on October 10, 2011 by - CREDIT BLOG

The other week, I got an email that made me cringe.
The email was from a man had just been through a divorce. He explained that he lost 94 percent of everything when he and his wife divorced.
“She got the properties, and I got the mortgages.”
Per the terms of their divorce decree, his monthly spousal support check was to include the cost of the mortgages.
When I read that, I just knew what he was going to say next, and that’s when I cringed…
His ex-wife was cashing the checks, but she wasn’t paying the mortgages on time… the very same mortgages in his name.

This Happens All the Time
This situation is common, so if you ever go through a divorce, make sure you protect your credit.
In short, here’s my advice:
1. Refinance the mortgage in your ex’s name only. In the case of the man who emailed me, he should keep paying spousal support. If his ex fails to pay the mortgage, she will be the only one who suffers. He cannot do anything about the past, but in the future, refinancing in her name will protect his credit.
2. If she cannot qualify for a refinance, he should renegotiate the terms of his spousal support so that he pays the mortgage directly, sending his ex a spousal support check for the remainder.
Click here to read a longer article about divorce and credit.

Credit Score = Your Financial Reputation, How Much Are You Losing?

Posted on October 6, 2011 by - CREDIT BLOG

Whenever I was in basic training, each recruit, each private was assigned their own roster number. That roster number was our identifier. We had to put it on all our gear. I had to have it strapped across a tape on my Kevlar, which is our helmet. It dictated as far as when we would eat chow and what order we would fall in. It also would designate when we would draw our weapon from the arms room when we had to go to the different ranges. Our roster number was our second name. First name was Private, and the second name was our roster number. Every time you heard your roster number yelled by a drill sergeant or a captain, you always knew either you were called to do something, or you got caught doing something you shouldn’t have been doing.

Your Identity Theft Stories….

Posted on October 4, 2011 by - CREDIT BLOG

Please post them here… so we can all learn from each other!
Include as much information as possible:
1) What happened?
2) How did you find out you were a victim?
3) What did you do?
4) How did it all work out?
5) Was your credit impacted?
Thank you.
– Philip Tirone

Debt Settlement Scams- 10 Stupid and Simple Ways to Get Burned

Posted on September 26, 2011 by - CREDIT BLOG

Over the past few years I have heard non-stop stories from consumers who were taken for costly rides by debt settlement scams. While it is true that there are a few good and well intentioned programs available that provide real debt solutions, my experience shows that a vast majority of these outfits are simply money grubbing nightmares for cash strapped consumers.
The debt relief world can be a very confusing place, especially when people are in a seemingly desperate financial situation. With that in mind I would like to shed a little light on this industry and present:

Royalty Resource Network Named in Advanced Fee Loan Deception

Posted on September 26, 2011 by - CREDIT BLOG

Consumers in West Virginia are being warned, by their Attorney General Darrell McGraw, about a scam that offers the promise of fast and easy loans. These promises are coming from advertisements produced by the “Royalty Resource Network” (RRN), a Canadian based scam operation, that is appearing in local West Virginia publications.
Attorney General McGraw stated: “Consumers should use extra caution when responding to any sort of advertisement regarding lending and finance. Thieves will use newspapers, websites, e-mails, telephone calls, any medium at their disposal to help you part with your hard-earned money. No legitimate company or organization will require you to wire money in advance using a wire transfer service in order to qualify for a loan, grant or any other financial aid.”
RNN’s advertisements claim you can obtain a loan ranging from $2,500.00 up to $1 million, with no consulting, application or processing fees. Too good to be true? What actually happens is, the consumer sends an advance portion of the money they intend to borrow through a reputable wire service where a fake RNN loan offers collects the money and disappears.
Many scans of this type surface frequently on the internet. It appears that this particular instance the company in question is using smaller newspapers and publications to reach consumers. In this instance a large ad was ordered and placed in The Ad Bulletin. Not only were consumers scammed, The Ad Bulletin was too. RRN’s scammers used a stolen credit card to pay for the advertisement.
Scammers are able to quickly open and close a scam in a matter of days, by using disposable cell phones, free e-mail accounts and remotely routed toll-free numbers. In this case if you call the toll-free number given by RRN it rings as a fast busy signal. Other companies related to this scam are the Vintage Consumer Network and Forum Family Services. The names were possibly choose for their friendly connotations.
Attorney General McGraw’s Consumer Protection Division has referred the complaints against these three companies as well as other across-the-border advance-fee loan scams, to the Canadian Anti-Fraud Centre. The Centre is a joint task force of the Ontario Provincial Police, the Royal Canadian Mounted Police and the Competition Bureau Canada.
These advance fee loan scams unfortunately attract a number of people who are desperate to get loans and sadly pay money, never to see it again.
This guest post is by Steve Rhode. Steve is a consumer debt expert that helps people for free to learn and avoid scams. Feel free to report a scam if you know of one.