The dropout rate for one of these programs, Making Home Affordable Program- designed to "modestly reward lenders for modifying mortgages", is very high. 96,000 of the trial modifications were cancelled by lenders in July of this year alone, bringing the total of cancelled trials to 616,000. Such high numbers have prompted housing experts to call the program a failure, but the administration insists that many households were helped, even if just temporarily.

“They were able to benefit from reduced mortgage payments each month at no cost to the taxpayers,” Herbert M. Allison, an assistant Treasury secretary, said during a briefing.

The high number of cancellations, according to the administration, is because of government's rush to set the program up. Lenders were told to enroll homeowners first and ask questions later. Because of this, many applicants didn't qualify for permanent modifications, whether it be because their paperwork was incomplete, they didn't live in the house, or because the "debt load was not heavy enough." Herbert Allison says that many of the homeowners who were turned away for permanent modification received other forms of aid.

About 422,000 mortgage modifications overseen by the government were considered permanent as of July, up from 389,000 in June. But the pool of candidates is shrinking rapidly. Only 17,000 trial modifications were started in July, down sharply from the 150,000 enrolled in September when the program was new.

The program will likely not offer any long term relief or solutions, as debtors are still in debt "up to their eyeballs," just with modifications instead of their original mortgage.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama, Wrongful Foreclosures In Alabama, The First Common Mistake Alabama Consumers Make When Sued For Ejectment, Should I Trust A Foreclosure Lawyer To Advise Me?, Overview Of Five Common Mistakes Alabama Consumers Make When Sued For Ejectment and What Do I Need To Bring To My Meeting With An Alabama Foreclosure Defense Lawyer?

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us.

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Mike Huddleston worked as a debt collector at a bank for 11 years where he was responsible for collecting on, and sometimes repossessing, car and boat loans. Needless to say, this didn't do much for his popularity and Huddleston says he was threatened with a gun, had 2 Dobermans sicced on him by a debtor. However, Huddleston says he never:

tried to scare people or take advantage of peoples' ignorance by threatening things like eviction even though we weren't allowed to evict someone. But it was still tough to deal with people who are struggling so much, and it was even harder knowing that a lot of people aren't telling you the truth.

The interview doesn't say why he left the debt collection industry, but Huddleston now works as a consumer credit counselor.

Ryan Neuweg was the founder an owner of a collection agency. He said he immediately realized the industry needed reform after he posted a job vacancy and received over 300 applications, but after telling applicants that drug and background checks were required, the pool dropped to about 100 people.

To assure no harassment or nothing illegal was being done, Neuweg says he:

had to put a lot of checks and balances in place and keep collector morale high to make sure no laws were violated and that standards were met. It's difficult to make 50 or 60 calls a day to people that don't want to hear from you -- so we had to try to keep the pressure off our collectors so that no one exploded over the phone with a debtor.

Neuweg had to do a lot of collecting himself and says he found it very rewarding to negotiate with debtors who felt "buried alive" by debt and come to an agreement. He now owns a matchmaking business that pairs debt collection companies with businesses.

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Bruce McClary spent 3 years as a debt collector and says the agency where he worked didn't tolerate collectors using bad language or other harassment tactics with debtors. He says that in his case, the debtors were the ones that "would tear us apart over the phone" with some of "the meanest, most randomly strewn together vulgarities," or threaten to actually come to his place of work and "beat the stuffing" out of him.

McClary says he learned not to take this personally and, overall, cites his experience as a debt collector as positive. He says the repetitiveness of constantly demanding money prompted him to leave the industry do something that helps people. He currently works as a credit counselor.

Jeffrey Deutsch worked as a debt collector for 2.5 years and says the position appealed to him because he enjoyed the challenge of tracking down debtors. He says:

I would take it as a personal triumph when I got debt paid off, and in my opinion, they owed the money, so as a representative of the creditor, I had the right to collect the money.

Deutsch says he really enjoyed the challenges the job presented, but was let go after getting the flu and failing to meet his quota.

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Here's an example of someone affected by this method of wrongful foreclosure:

Charles Smith says he is irate and at his wits end. He says he has never missed a mortgage payment yet he fears he could also lose his home because of delinquent taxes. Even though Smith has written proof from the county tax office that his taxes have been paid in full, he says his mortgage servicer set up an escrow account to cover the taxes. Then, the company nearly doubled his monthly payment. But he kept making his regular monthly payments.

Wrongful foreclosures and other illegal practices, like fabricated documents, are on the rise and the numbers won't go down until mortgage companies are held criminally accountable for these crimes against homeowners.

Here is a video from a Fox 4 investigative report on this:

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us.

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To make up for loss in revenue the Card Act has caused, some of the biggest credit card companies in the US have started to go around the new rules to slap customers with other types of fees. It's estimated that the Card Act will eliminate about $390 million in fee revenue per year. Banks are having to get more aggressive to combat such a huge loss.

According to a July 22 report from Pew Charitable Trusts, a nonpartisan research group, the industry's median annual fee on bank credit cards jumped 18% to $59 between July 2009 and March 2010. At credit unions, annual fees soared 67% to $25. During the same period, the median cash-advance and balance-transfer fees jumped by 33%.

All of these increases are perfectly legal, of course. Banks and other issuers would have a difficult time extending credit to consumers, even at high interest rates, if they couldn't augment those revenues with fee income. "We're coming out of a deep recession that issuers are still working through," says Peter Garuccio, a spokesman for the American Bankers Association.

There have been quite a few "potential violations of the Credit Card Act." For example, some credit card companies are marketing something new called "professional cards." Professional cards are like company cards but still carry the same terms as a typical consumer card. Professional cards aren't covered under the new law and companies are using this as an easy way to get around the Card Act.

In the first quarter of this year, issuers sent out 47 million professional-card offers to U.S. households, up from 13.2 million in the corresponding period last year, according to research firm Synovate.

Because of the Card Act, companies are also becoming more particular about when payments are technically considered late.

Card Act stipulates that late-payment fees shouldn't be triggered on a Sunday or holiday, when there is no mail delivery.

The rule "is clearly meant to offer cardholders some semblance of relief so that they don't get saddled with late fees for making a reasonable payment on the next business day," says Chi Chi Wu, a consumer credit lawyer at the National Consumer Law Center.

Some billing cycles are being altered, also. The Card Act dictates that the actual payment isn't due until at least 21 days after the bill is sent, however, some people have reported a shortened billing cycle.

Basic fees are also being raised. Many companies are drastically increasing their balance-transfer fee . Inactivity fees will be illegal after August 22, so companies are making alterations, as well. Some companies, like Citigroup, have started to charge an annual fee that the consumer can be exempted from if their balance exceeds a certain amount.

The Card Act says a card's total annual fees can't exceed 25% of a borrower's credit line. But some issuers may be evading the fee restrictions by charging an upfront processing fee that doesn't fall under the 25% cap.

While the credit card industry is certainly shifting to bend the rules, there are things you can do to avoid some of the worst of it. For example, the most important thing you can do is to make your payments on time. Should a dispute arise about a fee, you should discuss it directly with the card issuer.

"While the Credit Card Act did make great strides in protecting consumers, it in no way closed all avenues for cardholders to get hit with fees," says Ms. Wu, from the National Consumer Law Center. "It's a first step."

If you have had problems with unlawful credit card fees or other credit related problems and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Michelle Dunn worked as a debt collector for 18 years and shows us a different take on it. She says she initially took the job because she was good at it and it was easy for her. At first she felt like she was doing a good thing by helping companies get the money they were owed. Based on this interview, she says the main reason she left the industry was because of the abuse she received as a debt collector. Consumers being harassed by creditors is common and inexcusable, but it's different to hear about a debt collector being the harassed party.

Dunn says that people would call her every five minutes and harass her since she was harassing them. She received verbal threats, was faxed pages of profanity and even had to be walked to her car by security because of debtors threatening to hurt her as she left work. She says she ended up leaving debt collecting because she "couldn't take the screaming and name calling anymore. That and the sob stories from people who are down and out, don't have the money you're asking for and are so unhappy to hear from you each time you call. It isn't fun for anyone. "

Lisa Parker was a debt collector for five years and says there was a lot of pressure to collect debts, by any means necessary, to keep the job. She says:

"I felt that I had to say whatever I needed to in order to collect the money, and there were times when I was more aggressive and more assertive than I would have chosen to be. "

Parker says she also illegally called debtors' neighbors and family members because she learned that was one of the best ways to intimidate people into calling her back. She says the long hours, pressure, and lack of self satisfaction in her work finally got to her and she left the collection agency.

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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One reason college students are more vulnerable to identity theft is because of the number of times they are asked to give out personal information. Some universities even use students' SSNs for student identification numbers, which is then sometimes shown on a student ID card. It's estimated that over a million students, alumni and faculty have been affected by a data loss or breach that exposed their personal information.

Personal information can be illegally accessed several different ways, such as outside hackers or even unhappy university employees who obtain the information to sell to identity thieves.

LifeLock recommends individuals who have been informed of a potential breach of personally identifiable information should;

* Do your research - find out what information has been compromised. This will help you identify the risks associated and the best next steps

* Consider utilizing an ID theft protection service - Services such as the advanced LifeLock Command Center protection suite offers members LifeLock Personal Breach Detection service, which actively monitors unregulated global networks for your identity information. If they find you are at risk, they will alert you by e-mail and help protect you against accidental personal information disclosures, not just from your personal computer, but many other computers that may store your personal information and participate in peer-to-peer file-sharing

* Place a fraud alert - Contact one of the three credit bureaus to place a fraud alert on your credit. You will only need to contact one, and then that bureau will contact the other two on your behalf. With a fraud alert in place, creditors should be notified that you are concerned about identity theft when they receive a new application, helping to stop the extension of credit in your name to a thief

* Repeat as needed - You can renew your fraud alert every 90 days. It is important to note that you will need to renew in order for it to stay in effect. (You may also remove a fraud alert at any time.)

* Request your free credit report - Do this as soon as possible so that you are able to see evidence of an identity theft appear on your credit report, should one exist.

The fastest growing group of identity theft victims is young adults age 18-29. Colleges and universities are working with LifeLock's educational programs to teach students and faculty on how to avoid having their personal information taken in the event of a breach.

If you have had problems with identity theft and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Bob Cook was a debt collector for 16 years and says he quit due to the high stress; he says he would even sometimes become physically sick at the thought of going into work. He also was dealing with things like people chasing him in the street and finding a pit bull tied to the motorcycle he was sent to repossess.

Another time, Cook says he was speaking to a man who was 6 months behind on payments on his mobile home, was recently divorced and also had lost his job. Cook says he was being "perfectly reasonable" and reminded the man that he couldn't live there for free. He also told the man to enjoy the upcoming Christmas holidays and not stress about finding a place to live until January. The man ended up going home and shooting himself; Cook quit the collection agency afterwards.

An anonymous interviewee spent 16 years as a debt collector and witnessed many different methods of consumer harassment in that time. This person says that a fellow collector in a nearby cubicle would call debtors and claim to be a legal counselor and then ask several personal questions, all the while reminding the debtor constantly that they were, allegedly, under oath. This person also says that collectors called people with the "intent of harassing and intimidating them." If someone hung up on the collector, they would call back immediately. If a debtor asked to speak to a supervisor or manager, the higher-up would also be just as obnoxious and "abrasive."

Our friend Anonymous says that collectors can get away with harassing people because consumers "just don't know their rights." This person was dismissed from the collection agency for not being "aggressive enough."

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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"With this rule we'll be taking a major step towards cleaning up the Wild West of debt settlement," FTC Chairman Jon Leibowitz says.

The rule will crack down on marketing companies that earn big commissions for signing up as many customers for debt settlement as they can, says Gerri Detweiler, personal finance expert for Credit.com. These businesses have no interest in determining whether consumers are good candidates for debt settlement, she says.

Michael Bovee, founder and president of Consumer Recovery Network, a debt-settlement firm that doesn't charge upfront fees, agrees. Many consumers who have signed up for debt settlement in recent years should have filed for Chapter 7 bankruptcy, he says.

But Detweiler contends that debt settlement remains a viable option for some consumers who have large credit card debts but aren't good candidates for bankruptcy. A 2005 bankruptcy-reform law created a "means test" that has made it more difficult for some individuals to file for Chapter 7 bankruptcy. And a bankruptcy filing will stay on your credit report for 10 years, which could make it difficult for you to get a job, particularly one that requires a security clearance.

The FTC has provided a handy guide that prompts consumers to ask the following questions before signing up with any debt settlement company or agency.

-What's your success rate, and what percentage of people drop out of your program?

The rule prohibits companies from cherry-picking examples of successful customers to inflate their results. If a debt-settlement company claims it can reduce your debt by a certain percentage — 40% to 60%, for example — ask for objective evidence to support that claim.

•How much will it cost, and how long will it take to settle my debts? The biggest misconception consumers have about debt settlement is they'll get a service in exchange for an advance payment, Leibowitz says. "Most of them do not do that."

The FTC rule bars debt-settlement firms from collecting any money until they've settled or reduced your debt. But you should still make sure you understand how much the service is going to cost and how long you'll have to wait before you see results. Under the FTC rule, if the company bases its fees on a percentage of the amount it estimates you'll save, it must provide both the percentage and the estimated dollar amount that represents.

•How much will I need to save? Debt-settlement companies typically ask you to make regular payments to a dedicated account. When a certain amount has been saved, they'll go to your creditors and offer to pay off a percentage of the debt. The rule requires debt-settlement firms to provide a reasonable estimate of the amount you'll need to save before they'll make an offer.

•Where will the dedicated account be held? The FTC rule establishes several conditions for this account: It must be held at a financial institution that's not affiliated with the debt-settlement company; it must belong to you; and you must have the right to withdraw your money at any time.

Before signing on with a debt settlement group, it's a good idea to call your creditors and explain the situation.

If you have had problems with debt collection or debt settlement companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Mel Harsh, the first debt collector, admits that he was "absolutely ruthless" when he first started out as a debt collector and would even resort to using blind threats to intimidate people. He says that he thought being aggressive was the only way to succeed in that industry, and then he began to enjoy being so authoritative. He says he later realized that if someone owes his collection agency money, then they probably also owe several other companies money and he chose to soften his approach to be nicer, but will still sue people because "it's part of the job."

At the time of this interview, Harsh had one week left as a debt collector. He said he was leaving the industry because, although the money was excellent, "I'm sick of all the agony I put people through."

Alexis Moore, another former collector, says that collectors in the agency where she worked were asked to break the law everyday and if you didn't, "you were asked what was wrong with you." She engaged in law-breaking practices such as calling late at night and faxing a person's workplace regarding their debt. If someone didn't take their calls, she would call their neighbors and ask them to stick notices on the debtor's door telling them to contact the agency immediately.

She says they were encouraged to harass people, because while it was illegal, it got results. Moore says that there were contests to see which collector could make the most people cry during the workday, and she overheard one collector threaten someone over the phone in Spanish that they were going to send someone to his house to beat him with a tire iron.

Moore was a debt collector for ten years and is currently the founder and President of a non-profit advocacy group for people who have been victims of crimes such as cyber-stalking and identity theft.

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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This scheme is a new threat to the nation's credit system because it falls in a legal gray area in that federal investigators have not yet figured out how to prosecute those involved.

"If people are obtaining enough credit by fraud, we're back to another financial collapse," said Linda Marshall, an assistant U.S. attorney in Kansas City. "We tend to talk about it as the next wave."

A Kansas City FBI agent accidentally uncovered the scheme while investigating a mortgage fraud case. The sellers avoid dealing with the law by not referring to them as social security numbers. Instead they call them CPNs, which can stand for credit profile, credit protection, or credit privacy numbers. Because of this, this form of identity theft is difficult to detect and it remains unclear exactly how much damage is being done.

The scheme works like this:

Online companies use computers and publicly available information to find random Social Security numbers. The numbers are run through public databases to determine whether anyone is using them to obtain credit. If not, they are offered for sale for a few hundred to several thousand dollars.

Because the numbers often come from young children who have no money of their own, they carry no spending history and offer a chance to open a new, unblemished line of credit. People who buy the numbers can then quickly build their credit rating in a process called "piggybacking," which involves linking to someone else's credit file.

The businesses also instruct customers to provide false information when using the number to apply for credit. Customers are told to use their real name and date of birth, but to avoid listing any addresses or phone numbers they've used in the past. They're also told to avoid any other information that connects the new, clean credit profile with the old, damaged one.

Children's social security numbers are more in demand than other unused numbers, such as a deceased person's. Children's numbers offer the identity thief a "clean" chance of acquiring fake credit from a number no one else is using and that won't be detected until several years later when the child applies for a loan or seeks credit for the first time. Credit bureaus can quickly identify a deceased person's social security number being used fraudulently by consulting the Social Security Administration's death index. There is no such index for dormant/ unused numbers.

If you have had problems with identity theft and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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In a new article we explain how the FDCPA is designed to protect honorable . . . law abiding debt collectors from those debt collectors that are abusive and dishonorable.

You can learn more about the FDCPA and how it applies to consumers here and you can also request our free book on Stopping Abusive Debt Collectors.

If you live in Alabama, pick up the phone and call us at 205-879-2447 or fill out our website contact form and we'll get right back with you.

Taking effect in the fall of this year, the new restrictions will prohibit debt collection companies from charging a fee before they reduce a customer's unsecured debt or credit card debt. Companies will also be required to set up accounts that will be dedicated for debt relief payments and fully disclose tell how long debt-reduction negotiations will take, how much it will cost and if there will be any negative consequences.

“Too many of these companies pick the last dollar out of consumers’ pocket and, far from leaving them better off, push them deeper into debt, even bankruptcy,” Jon Leibowitz, chairman of the F.T.C., said in a statement announcing the regulations.

“This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, upfront fees,” he said.

Debt collection programs became very popular because of the recession, high unemployment and the collapse of the housing market. Unfortunately, with the growth comes more unfair debt reduction practices that take advantage of consumers.

Attorneys general in more than 20 states have brought enforcement actions against debt-relief companies since 2004. According to comments filed with the F.T.C., the number of consumer complaints against companies in the industry more than doubled from 2007 to 2009.

The leader of a trade group representing the debt-settlement industry said he believed the rules were unfair and would put a lot of companies out of business.

“I think this is a victory for the big banks and a loss for consumers,” said David Leuthold, the executive director of the Association of Settlement Companies.

Credit card companies often will not settle a debt for less than is owed until a consumer has deposited the entire negotiated repayment in an independent account, Mr. Leuthold said. If the companies are not allowed to collect any fees before settlement, that leaves them providing services for months without compensation.

“Most companies will go out of business because of this,” he said.

If you have had issues with debt collection companies and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Identity theft continues to be a growing problem, whether it's medical, criminal, employment, reputation or financial. Once your information is compromised and/or stolen, you can't predict or control what the consequences will be. A recent study by Ponemon Institute has shown that organizations are being bombarded by at least one successful data attack per week, which carries a cost of anywhere between $1million to $53 million annually.

This study found that among the 2,807 publicly disclosed data breaches worldwide during the past five years, the cost to the victim firms as well as those whose information was exposed came to whopping $139 billion. Another stunning figure.

The study found that social security numbers were the most commonly compromised, followed by credit card numbers. "Remember, once that SSN lands in the wrong hands -it's irretrievable."

No one is immune to data breach or an identity theft -no one should minimize the risk or the many effects either. Identity theft is serious business, and I'm worried that if those who continue to write about identity theft in a manner that minimizes the effects it carries and in a way that doesn't take identity theft seriously, then the public won't take it seriously, either. And that's not good for business or consumers.

If you have had issues with identity theft and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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