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Tag Archives: Olympia Bankruptcy

Credit Report Nuts and Bolts, Part 5 of 6: Credit repair scams and overreacting to threats about damaging your credit rating

The National Consumer Law Center warns heartily against “credit repair” scams.

The NCLC debunks the “credit repair” claims:

– “We can erase bad credit” – The truth is that no one can erase bad credit information from your report if it is truthful and accurate.

– “Only we can remove old or inaccurate information” – this is untrue because you can correct any old or inaccurate information yourself. There is no reason to pay a huckster to do it for you.

-“We will erase even accurate poor credit history information, even if it is accurate” – Lying to a credit report agency is illegal.

If you have been hoodwinked into a “credit repair” scam, here is a few things you should know.

First, you may have some protections. Federal laws and some state laws require credit repair companies to provide mandatory disclosures before you sign up.

Second, the credit repair company is not allowed to provide any services to you until three days after you sign a written and dated contract.

Third, the credit repair scam is not allowed to charge you in advance under certain laws.

Fourth, you have a right to cancel the credit repair scam contract without giving any reason (do it in writing!) within three days of signing the written contract.

A collection agency pressuring you to pay under threat of making a negative credit report entry is a hollow threat. Under arrangements that the collection agency likely has with the credit reporting agency (or agencies) they are required to make a report every month anyway. So do not give away your last dollar to a threatening collection agency in order to “save” your credit report from “damage”. The negative credit history is likely to be reported to the credit reporting company anyway under the reciprocity requirements between the credit report company and the collection agency.

Hola! The Hispanicisation of America – a major demographic and economic shift.

In December 2005, I booked a United Airlines ticket to Antigua, Guatemala. I had enrolled in an intense course of Spanish instruction. The course was one-on-one. One teacher, one student (me) for six hours per day, six days per week.

I resided with a wonderful Guatemalan family in their large home, studying for about eleven days. I returned in June 2006 for three weeks of study and studied similarly in August 2006, February 2007 and March 2008. March 2006-May 2009 I studied almost weekly for two hours with a wonderful Guatemalan lady, meeting every Monday evening, at Borders Books in Lakewood, WA.

Why?

America is turning hispanic. One study I read indicated that by 2047, Spanish would be the dominant language in California.

An interesting September 11, 2010 article in The Economist magazine was further informative:

Over 40% of New Mexico’s population is of hispanic origin.

30% to 40% of Texans, Arizonians and California are of hispanic origin.

20% to 30% of Nevada’s, Florida’s and Colorado’s population is of hispanic origin.

Washington, Oregon, Idaho, Utah, Illinois, New Jersey, New York and Connecticut have populations estimated at 10% to 20% hispanic origin.

Nationally, 16% of the population is now hispanic/latino, numbering 48.4 million in 2009. The Economist reports that the Pew Research Centre estimates that by 2050, hispanics will comprise 29% of the population, with caucasians declining to 47% of the population, and falling into the minority.

Julian Castro, the young Latino and Democratic mayor of San Antonio, which is 60% Hispanic, says Democrats should not take Latinos for granted. Castro points out that hispanics tend to support better public education and health care, but are socially conservative and religious, according to The Economist.

The Economist points out that even if you don’t see a large number of hispanics today in your area, things will change….The Economist points out that many hispanic immigrants are bypassing traditional destinations of California and Texas and moving instead to states such as Arizona, Georgia and North Carolina, which dollectively had 10% of America’s undocumented aliens in 2009, up from 4% in 1990.

Arizona’s "backlash" against immigration (known as SB1070) now partially blocked by a Federal Judge may have grown out of a "fear" of the minoritization of caucasians. Over the past two decades, Arizona’s latino population has almost tripled, with the majority of caucasians dropping from 72% to 57%.

Unfortunately, a University of Arizona poll found that 81% of the state’s registered voters favor SB1070’s requirement that people produce documentation to show that they are in the US legally, and that 74% agree that police should be allowed to detain anyone unable to prove their status.

This is misleading, though, as hispanics tend to lag caucasians in voter registration and participation, according to The Economist.

I have really enjoyed improving my Spanish, and I welcome much of what the hispanic culture brings. Some of my best friends are Spanish speakers – and I have found them to be generous and caring people, almost to a fault.

Fences, wires, guard dogs and towers are unlikely to contain human migration along the US border.

If you are interested in improving your career and your long-term marketability, consider learning Spanish – perhaps we would all be better off embracing – as opposed to retaliating.

I will make a post on how to affordably prepare yourself (and your children) for this century – by embracing Spanish.

Credit Cards: Part 2 of 2 – Things to think about before getting a new credit card – Preventing trouble

This is part two of a two part series. Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are some additional things to keep in mind when trying to compare credit cards:

– BIG ONE! – Trick cards – A creditor who acquired a prior credit card lender may offer you a new card – and then trick you by putting the old credit card lender’s debt on the new card, perhaps at rates less advantageous than you were previously paying.

– Look carefully at the interest rate, but recognize that the interest rate can EASILY change. Note that after the teaser rate expires, there will likely be a new rate. Find out what that new rate will be.

– Penalty rates – Credit card contracts, including those that advertise low rates, provide in the small print that our interest rate increases if you make a late payment or go over your credit limit. There are two distinctions here. If you are 60 or fewer days rate, the new penalty rate can only apply to future cash advances and purchases. If you are more than 60 days late, the new higher penalty rate can apply to existing balances of purchases/cash advances AND ALSO it can apply to any new purchases.

-Fees – Find out how much you will be charged for all sorts of fees. Here are a few ideas. Late fees, over-the-limit fes, annual fees, membership fes, cash advance fees, balance transfer fees, even fees for buying lottery tickets.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.

Credit Cards: Part 1 of 2 – Things to think about before getting a new credit card – Preventing trouble

Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are things to keep in mind when trying to compare credit cards:

-Avoid accepting too many credit card offers – There is rarely any good reason to own and carry more than two credit cards.

-Avoid "store cards" like Good Guys Video, Bon/Macy’s, Nordstrom, Sears and JCPenny cards – why do you need these? Is there anything at Sears or Nordstroms that is essential to your present daily life?

-BIG ONE! – Avoid subprime credit cards – Avoid credit cards which advertise themselves as helping with "bad credit". Some of these credit cards are "fee harvesters" with low credit limits and so many fees that you couldn’t even charge any purchases to the card because the card was already maxed out when the account was opened.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.

Aprendalo! (Learn it!) How the Hispanicisation of America provides a road to your financial security.

In December 2005, I booked a United Airlines ticket to Antigua, Guatemala. I had enrolled in an intense course of Spanish instruction. The course was one-on-one. One teacher, one student (me) for six hours per day, six days per week.

I resided with a wonderful Guatemalan family in their large home, studying for about eleven days. I returned in June 2006 for three weeks of study and studied similarly in August 2006, February 2007 and March 2008. March 2006-May 2009 I studied almost weekly for two hours with a wonderful Guatemalan lady, meeting every Monday evening, at Borders Books in Lakewood, WA.

Why?

America is turning hispanic. One forecast I read indicated that by 2047, Spanish would be the dominant language in California.

An interesting September 11, 2010 article in The Economist magazine was further informative:

Over 40% of New Mexico’s population is of hispanic origin.

30% to 40% of Texans, Arizonians and California are of hispanic origin.

20% to 30% of Nevada’s, Florida’s and Colorado’s population is of hispanic origin.

Washington, Oregon, Idaho, Utah, Illinois, New Jersey, New York and Connecticut have populations estimated at 10% to 20% latino in origin.

These foreign room, board and lessons packages in Guatemala and Nicaragua are inexpensive and easy to access. You just call or email the school and ask them to pick you up at the airport. It is usually truly that simple. The total room, board and lessons package runs about $175-220 per week depending on whether u have a teacher for 20 or 30 hours per week.

I recommend Roger Ramirez’s One-on-One Tutoring in Granada, Nicaragua or Ixchel Spanish School in Antigua, Guatemala. Google them for contact information.

70/70 Radio – Hispanic demographic changes alter media formats – La Kalle from S.F. California

My wife’s uncle is a fine fellow – he is an Iranian immigrant who lost nearly everything when the Shah of Iran’s regime fell in the late 1970s with the Islamic Revolution.

Nevertheless, he has hacked out a place here in America with the hard work of his wife, a registered nurse.

They are profoundly interesting people for whom I have the deepest respect.

This Iranian immigrant has purchased 11 acres of Chardonnay grapes in one of the best locales of Napa Valley, California, and he farms the vines with his heart, sweat and soul, aided by his sons and wife. He does side jobs as an architect to make extra money.

But this blog post is not about Iranian immigrants….it is about the immigration and melding of latino and caucasian culture here in the United States.

Every year my wife and I (and now our three children) go down to visit her uncle at his vineyard. We usually fly into Oakland, California and rent a car for a drive north of some hour and thirty minutes.

As a radio "dial flipper", on this ride I bumped into something odd about three years ago. I began listening to SF Bay station with a heavy DJ presence, and what was odd is that the DJs would deliver the spoken content in about 70% Spanish and 70% English, so the DJs were frequently repeating much (but not all) of their content.

"Muy buenos dias caballeros y ladies, hace mucho calor hoy mismo, today it is going to be hot, por eso no olviden tomar algo muy refresco y remember to turn up the air conditioner while you enjoy that cold drink."

I found it disorienting to try to imitate this manner of speaking…and I wondered how it came to exist?

I was listening to La Kalle, a station that mixed Spanish and English language and also Spanish and English pop music.

Over the past three years, I have noticed that the station La Kalle seems to be shifting a bit more towards devoting a significant share of the play time (but still less than 50%) to English language pop/rock music, with an emphasis on current top 40 hits. In prior years, the English language music seemed to be just an occassional garnish, so obviously, La Kalle is trying to figure out its market and fine tune something new.

Here are some reviews for San Francisco Bay Area station La Kalle (a funny word play on "La Calle" which means "The Street" – see how they used the letter "K"? The letter "k" is common in English, but is extremely rare in Spanish, so it uses a mix of English and Spanish spelling for a Spanish word, using "K" as the first letter in the radio station’s call moniker. ) Below is a link to some reviews of this station posted by English speakers:

http://www.yelp.com/biz/la-kalle-radio-100-7-and-105-7-fm-san-francisco

In June 2009, I obtained satellite radio for the first time – and I noticed that even in top 40 current music (Sirius channels 20-24) there is quite a bit of Spanish language creeping into pop music, and I am hearing reggeaton sounding beats from time to time.

Why am I talking about a San Francisco Bay area radio station on a bankruptcy lawyer’s blog?

It is because I am telling you of a change that is coming. You can get ahead of that change and secure your employment future with a burst of concentrated and focused energy. You need to learn Spanish. You can do it in 18 months if you work hard.

On my last two visits to Maui, Hawai’i, (June 2010 and December 2010) again and again, I bumped into many people speaking Spanish. It was odd for me to be in Hawai’i, speaking Spanish.

There is a Central American diaspora going on as we speak. It ebbs and flows according to comparative economic conditions, but it never goes away. There is net migratory inflow to the US from our Southern neighbors…and there has been for years. Many of these new immigrants are concentrating in communities where they no no longer need to learn English well in order to survive.

Businesses, the government and employers will need to serve these people who end up not learning English very well as they concentrate in communities that are Spanish speaking.

If you are worried about the future, learn Spanish, and you will worry about it much less about the future than you used to. I doubt that a Spanish speaking Anglo will ever be unemployed for long as this centry progresses.

If I am overstating my case for Spanish education, then I will stand corrected, as time will tell. Note that if worse comes to worse, you can apply for a DJ job at La Kalle, or some other online and broadcast radio station that are sure to follow this format.

Other posts in my blog give ideas about how to study Spanish – use our Google sitesearch function (the little Google box up in the right-hand corner) to search for the posts.

‘Omm’ for the unemployed – Jobless get another benefit – free yoga (from the AP as reported in The Maui News)

Jeannie Nuss of The Associated Press (as reported in The Maui News, December 22, 2010) notes that a handful of Yoga studios accross the country have began to offer free or reduced priced classes to the unemployed in order to learn how to deal with the stress of unemployment.

"It helps to quiet the mind and helps people realize that this is a temporary situation," says Jo Sgammato, general manager at Integral oga Institute in New York.

Practicing yoga is believed to reduce stress and improve concentration. Some studios also offer special classes to help vetrans work through traumatic experiences and women cope with pregnancies, according to Ms. Nuss of the Associated Press.

Surviving Debt: Eight Credit Card Tips from the National Consumer Law Center

I have mentioned it before – but you really need to buy this book, "Guide to Surviving Debt" 2010 edition, available from the National Consumer Law Center at www.consumerlaw.org for about $20 bucks.

From the "Guide’s" chapter 5 – "Credit Cards", here are eight tips:

(1) Do not use credit cards to finance an unaffordable lifestyle.

(2) Try to avoid making financial trouble worse – avoid the trap to use credit cards to make ends meet.

(3) Don’t get hooked on minimum paymnents (sometimes set at only 2.0% or 4.0% of the balance) – it could take 25 years to pay off the card at that rate, and nothing requires the credit card company to keep that advertised minimum payment AND it could be raised at any time

(4) Temporary teaser’s – don’t run up the balance in reliance on a temporary promotional interest rate.

(5) Make all credit card payments on time.

(6) AVOID the "special services", programs, and goods taht credit card lenders offer to bill to their cards, such as credit card fraud protection plans, credit record protection, travel clubs, life insurance, and other similar offers – most are bad deals and if you reall want that stuff, you can buy it much cheaper elsewhere in the economy.

(7) Beware of unsolicited allowable balance increases. Don’t be fooled into thinking that you can really afford more credit.

(8) Don’t max out credit cards – it’s then easy to get socked and soaked with high over-limit fees. You can also then get hit with a "penalty rate" because having when having maxed out credit cards leads to a drop in your credit score.

HAMP modifications 7 of 7: HAMP Modifications – Documents and info normally including in your HAMP request.

How do I apply for a modification under HAMP?

If you meet the general eligibility criteria for a modification under HAMP, you should gather the financial documentation that your servicer will need to determine if you qualify (See “What information and forms will I need in order to be considered for HAMP?”). Once you have this information, you should contact your servicer and ask to be considered for a modification under HAMP. The servicer’s phone number and email address is on your monthly mortgage bill or coupon book. Please be patient yet persistent. Your servicer may be handling a large volume of inquiries about the program and it may take some time before your servicer is able to process your application.

If you would like to speak to a housing counselor, call 888-995-HOPE (4673). HUD-approved housing counselors can help you evaluate your income and expenses and understand your options, and apply to your servicer for HAMP. This counseling is FREE.

If you have already missed one or more mortgage payments and have not yet spoken to your servicer, call your servicer immediately.

What information and forms will I need in order to be considered for HAMP?

Recently, Treasury announced a more streamlined homeowner evaluation process. Now, in order to apply for a Home Affordable Modification, homeowners can submit proof of income (See “What proof of income will I be required to provide with my HAMP application?”) plus the following two forms:

The MHA Request for Modification and Affidavit Form (RMA). This Form captures information on borrower income, expenses, subordinate liens on the property, and liquid assets. It includes a Hardship Affidavit, fraud notice, and information about the Trial Period Plan.

The Internal Revenue Service (IRS) Form 4506T-EZ (Short Form Request for Individual Tax Return Transcript). This form gives permission for your mortgage servicer to request a copy of the most recent tax return you have filed with the IRS. After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer.

Visit the “Request a Modification” section of MakingHomeAfordable.gov for more detailed information.

What proof of income will I be required to provide with my HAMP application?

Be prepared to submit a copy of your two most recent pay stubs that show year-to-date earnings. If you are self-employed, you must provide your most recent quarterly or year-to-date profit/loss statement. Visit the “Request a Modification” section of MakingHomeAfordable.gov for more detailed information. If you cannot find the required documentation, or have questions about the paperwork required, please call 888-995 HOPE (4673) and ask for “MHA HELP.”

I’m self-employed. How do I get a copy of my most recent quarterly or year-to-date Profit and Loss Statement?

Contact your CPA (Certified Public Accountant) or the licensed tax professional who assisted you in completing your tax documentation.

What types of documentation would be considered reliable enough to validate “Other Earned Income” for HAMP?

148B

Other earned income (bonus, commission, fee, housing allowances, tips, overtime) must be documented by your employer in either your paystubs or other employment paperwork/contracts. Homeowners are encouraged to work with their employers to gather this information to describe the nature of the income and the continuity of the income.

51.

57BHow do I get evidence of benefit income (e.g., social security, disability, death benefits, pension, public assistance, adoption assistance)?

149B

You can provide a copy of benefit letters/statements, disability policy, or receipt of payments such as copies of two most recent bank statements showing electronic deposit of benefits. For additional information regarding social security, disability or death benefit income, contact Social Security directly toll-free at 1-800-772-1213 or visit their website at www.socialsecurity.gov. For all other benefits, you must contact the provider directly for additional information.

52. How do I get evidence of unemployment benefits?

Evidence of unemployment income may currently be obtained through the Department of Labor UI benefit tool, which is available at http://www.ows.doleta.gov/unemploy/ben_entitle.asp. After the Home Affordable Unemployment Program (UP) becomes effective on July 1, 2010, unemployment benefits and severance pay will no longer be acceptable sources of income for HAMP consideration. (See “Home Affordable Unemployment Program (UP)” for more information about help for unemployed homeowners.)

My rental income was not reported on last year’s tax returns because the property was vacant. What documentation do I need to validate rental income?

In such cases where a property has recently been rented, a signed Rental Agreement contract must be provided to show: the property address, date of contract, lessees name and address, rental amount and rental period. The contract must be signed by all parties (lessor, lessee, rental agents etc.)

How do I get a copy of my Divorce Decree, Separation Agreement or other legal written agreements filed with a court (e.g., alimony or child support)?

Gather the information listed below and contact the Office of Vital Statistics in the state where your divorce occurred. The homepage of the state’s website will provide a link/information on how to contact the office of Vital Statistics. Generally, the documentation needed may include, but is not limited to, the following:

Date of your divorce

Full name of spouse

Your driver’s license number

Purpose for which record is needed

Your name and address, together with a self-addressed, stamped envelope

See the June 8, 2010, government publication re: info relevant to this post: http://makinghomeaffordable.gov/docs/BORROWER%20FAQs_6-8-10.pdf

Harrisburg is broke! Chapter 9 Bankruptcy looming for the city of Harrisburg, PA. The capital of Pennsylvania goes bust!

Special thanks to the American Bankruptcy Institute (of which I am honored to be a member) for this news flash; The city of Harrisburg, Pennsylvania makes an emergency Sunday 9/12/10 appeal for $3.6 million to avoid going bust.

"The State of Pennsylvania is speeding payments of $3.6 million to its debt-laden capital, Harrisburg, to prevent the city from defaulting on a general obligation bond, Gov. Edward G. Rendell said on Sunday, the New York Times reported today. To help the city with its cash flow, the state is fast-tracking payments, which were already in progress, of $1 million for fire protection and $2.6 million for an annual pension fund payment. This month, Harrisburg said that it did not have the money to make a scheduled bond payment of $3.3 million on Sept. 15. City Council members met in early September to discuss a possible chapter 9 filing. Governor Rendell, however, said that bankruptcy should be a last resort for Harrisburg and that missing a bond payment was not an option because a default could have repercussions for other municipalities in the state." American Bankruptcy Institute, September 12, 2010 news-flash.