Total Debt Services

Financial Problems - The Downside to Payday Loans

2008-04-01T08:15:00.000-07:00

Written by jellybabys on Mar-29-08 9:05pm
From: www.jellybabys.co.uk

Financial Problems What to do When You are Having Financial Problems:

The Downside to Payday Loans

In the 21st century, many men and women find themselves facing financial difficulties. A great number of people find themselves living paycheck to paycheck. These people literally are not able to make ends meet. The sad fact is that many of these people facing financial problems, including parents with small or young children.

Unfortunately, many of these people end up facing an emergency situation. These people end up needing cash to deal with an emergency situation. And, because they are living paycheck to paycheck, they simply do not have money available to pay for what ever an emergency requires. While some students do set aside a student credit card for emergency purposes, these people are few and far between.

As a consequence, a great number of this strapped people end up using the services of a payday loan service. However, you need to understand that obtaining a payday loan is a course of action that can be far from ideal in many circumstances.

There are some significant problems to using the services of a payday loan provider. First of all, the interest rates associated with these loans are very high. A person, in some instances, can end up further in debt by using the services of a payday loan shop. You need to be absolutely make certain that you payoff a payday loan in a timely manner or you very likely will face ever rising interest rates.

In addition to high interest rates, there are significant fees associated with payday loans in many instances. If you are applying for a payday loan, you need to read closely all of the documents associated with the payday loan. If you have any questions, you need to seek advice and assistance from an informed individual that you trust who is independent of of the payday loan lender.

Finally, many people end up habitually using payday loans much to their detriment. These individuals end up using payday loans for situations that are not true financial emergencies. This is an absolutely horrible course of action to take. You must must never use a payday loan for anything beyond a true emergency.

In the end, you really might be best served by setting aside a student credit card or at least a portion of the open balance on a student credit card for emergency purposes only. This can be a far more ideal way of dealing with a financial emergency than having to go out and try to obtain a far more expensive payday loan.

NCO-OSI Deal Signed, Now it has to Get Done

2008-03-24T12:09:00.000-07:00

Now that the two collection giants have agreed on a price and made their intentions toward each other known, work begins on getting the deal approved and moved into the integration phase.

by Patrick Lunsford
insideARM.com
December 13, 2007

As soon as the ink dried on the agreement that will send Outsourcing Solutions, Inc. (OSI) to the NCO Group family for $325 million, the focus of top executives shifted to ensuring the deal is approved and closed by the end of the first quarter of next year.

The all-cash deal, announced yesterday (“NCO Group to Buy OSI for $325 Million,” Dec. 12), will combine the U.S.’s two largest collection agencies: Horsham, Pa.-based NCO Group and OSI, headquartered in St. Louis. But there is still a ways to go before the agreement is complete.

“A lot of things have to happen before this deal is done,” Brian Callahan, NCO’s vice president of financial reporting, told insideARM.com this morning.

For starters, government regulators must approve the deal which, while expected to not be a problem, could require scrutiny due to the size of the two firms and their combined market share. OSI shareholders will also have to give their blessing, a hurdle that is not as straight-forward as might be expected with a privately-held firm.

“We have over 200 shareholders,” said Kevin Keleghan, president and CEO of OSI. “Various hedge funds and private equity firms are left over from our 2003 restructuring. But they all are looking for value and so far the deal has been viewed very favorably on their part.”

Keleghan said that his focus for the next few months will be getting the deal done. After that, he said that he will do anything he could to help successfully integrate the two giants. But Keleghan conceded that his run with the company would likely soon end.

“I think after the deal is done, and an integration plan is in place, my job is done here and it will be on to the next mission,” Keleghan said, adding that he is not currently looking at other opportunities.

The combined company will employ some 29,000 people in about 140 offices in ten different countries. Both companies have been clear leaders -- even dominate players -- in the debt collection industry for years. And both have also recently expanded their offerings to include more business process outsourcing services.

To some observers, the commonality of the two firms could present several roadblocks to completing the deal. For one, deciding what operations to keep and what to jettison could mean headaches. Secondly, regulators could decide the combination of the two giants in the field presents antitrust problems.

But Keleghan noted that each company has its own focus, so fitting together the pieces may not be the Herculean task some might consider it to be. “The two companies are much more complimentary than most people think,” he said.

For example, said NCO’s Callahan, NCO counts traditional third-party contingency collection work as one of its largest business lines, while OSI’s first-party business is a huge contributor to its top and bottom lines. Also, the two firms’ debt purchasing units have been active in different markets, buying portfolios from completely different debt segments and at different stages in maturity.

This should help in the government approval process, said Callahan. “There’s just not as much overlap as is probably perceived,” he said.

When government regulators look at the deal, they will have to consider that the combined company will not dominate a business sector that both have been expanding into over the past few years: business process outsourcing services.

“While the new NCO will clearly be the largest ARM company in the world, it will be competing against much larger firms for BPO contracts,” said Mike Ginsberg, CEO of M&A advisory firm Kaulkin Ginsberg. “Also, you have to consider that the combined company will still make up only a small fraction of the overall ARM industry.”

Court Enters Final Order in FTC Action Against Florida Debt Collectors

2008-01-28T08:33:00.000-08:00

A federal court has entered a final order against a Florida debt collection agency, its principals, and its attorney, settling a Federal Trade Commission action that alleged that the defendants violated the FTC Act and the Fair Debt Collection Practices Act (FDCPA) while collecting consumers’ debts.

The FTC’s complaint alleged that the enterprise used misleading dunning letters and abusive telephone calls to falsely threaten that consumers would be sued, their property seized, and their wages garnished if they did not pay the money that the defendants said they owed. The complaint alleged that the collectors often shouted and used profanity and other abusive language to carry out their collections.

The stipulated final order, among other things, permanently bars the defendants from falsely representing the character, amount, or legal status of a consumer’s debt, that their collector is an attorney or represents an attorney, or that if the consumer does not pay, the defendants can or will file a lawsuit against the consumer. It also prohibits them from violating the FDCPA in any way, including by disclosing a consumer’s debts to any third parties, using profanity or other abusive language in collection calls, or by continuing to attempt to collect a debt before providing verification of the debt to consumers who properly request such verification. The settlement also requires the defendants to provide consumers with a toll-free number and mailing address to file complaints, promptly investigate each such complaint, and take steps to cease, resolve, and cure any violations of the court order or the FDCPA.

The defendants are Rawlins & Rivera, Inc. of Florida, Rawlins & Rivera, Inc. of Georgia, Ryan & Reed, Inc. of Florida, Ryan & Reed, Inc. of Georgia, RRI, Inc., the corporations’ officers, Janis Brust, Joe L. Hunt, Sr., Joe L. Hunt, Jr., and a Florida lawyer, Robert W. Bird, whose letterhead was used for many of their collection letters. The settlement contains a monetary judgment of $3.4 million, which represents the total amount the defendants took in through their allegedly improper debt collection activities. The settlement requires the defendants to sell property and transfer the proceeds of the sale to the FTC. The remainder of the $3.4 million will be suspended based upon the defendants’ inability to pay.

The Commission vote to authorize staff to file the stipulated final order was 5-0. The order was entered by the U.S. District Court for the Middle District of Florida, Orlando Division, on January 14, 2008, along with an order dismissing Shannon Hunt from the complaint.

NOTE: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

Angel Tree Giving

2007-12-21T12:38:00.000-08:00

'Tis the season for giving. Total Debt Services adopted an Angel from the tree at Shepard Elementary School in the Plano Independent School District this year to help provide a joyful Christmas for a deserving family in need.

Accounting Manager Sharon Mura and Litigation Support Michael Clark took donations from the staff that were matched by TDS.

Thank you to all of the staff and management at TDS for their donations, and a special thank you to Shepard Elementary in Plano for allowing us the opportunity to help.

TDS Launches New Website

2007-11-20T12:32:00.000-08:00

Total Debt Services website has undergone major facelift. Users can enjoy a more upbeat and user friendly site to get information regarding bankruptcy alternatives, credit card debt consolidation, debt settlement, negotiation and management programs.

www.totaldebtservices.com

Nationwide Debt Collector Will Pay $1.3 Million to Settle FTC Charges

2007-11-07T12:20:00.000-08:00

A Texas-based debt collection company will pay more than $1.3 million to settle Federal Trade Commission charges that it misled, threatened, and harassed consumers in violation of federal law.

“Debt collectors who get complaints from consumers should not only take notice, but also take action,” said Lydia B. Parnes, Director of the FTC’s Bureau of Consumer Protection. “The message from this case is clear: Either comply with the law or face stiff penalties.”

According to an FTC complaint, in many instances, collectors for LTD Financial Services, L.P., which collects on about 1.25 million consumer accounts per year, violated the FTC Act and the Fair Debt Collection Practices Act by falsely threatening or implying that LTD would garnish consumers’ wages, seize or attach their property, or initiate lawsuits or criminal actions against them if they failed to pay.

LTD collectors, who collect in English and Spanish, allegedly called consumers at their place of work despite knowing it was inconvenient for them to receive calls there, and disclosed the existence of debts to family members, employers, co-workers, and neighbors. They also allegedly harassed consumers and used abusive tactics such as immediately calling back after consumers hung up on them, and sometimes used racial slurs and profanity. According to the complaint, in some instances, front-line supervisors and mid-level managers either participated or were aware of such practices under their supervision but failed to impose sufficient discipline.

Hundreds of consumer complaints against LTD are filed with the FTC, the Houston Better Business Bureau (BBB), various state attorneys general, and the company itself, the FTC’s complaint states, noting that LTD’s response to complaints “is cavalier at best,” that complaints from attorneys general and the BBB alleging egregious law violations frequently are dismissed without significant investigation, and that collectors often go unpunished or merely receive a warning. The complaint also alleges that LTD’s internal compliance program regularly catches collectors violating federal law, but even multiple egregious violations often go without serious punishment, and that senior managers either turn a blind eye to the unlawful acts or fail to exercise the supervision necessary to recognize the problems.

Under the proposed settlement, LTD will pay a $1.375 million civil penalty. In addition, LTD and its owners, Timothy Feldman and Leonard Pruzansky, and its top managers, John Brewster and Derrek Davis, are permanently prohibited from misrepresenting to consumers that nonpayment of a debt will result in garnishment of wages, seizure or attachment of property, or lawsuits. They also are permanently barred from using false, deceptive, or misleading representations in connection with the collection of any debt, communicating with a consumer at any unusual time or place, including their place of employment, or harassing, oppressing, or abusing any person.

The settlement requires the defendants to clearly and conspicuously disclose to consumers that they may stop the company from contacting them about the debt, and to notify consumers that they may contact a special LTD physical address, e-mail address, or toll-free phone number if they have a complaint about the way the company is collecting the debt.

The Commission vote to refer the complaint and consent decree to the Department of Justice for filing was 5-0. On behalf of the FTC, the documents were filed by the Department of Justice in the U.S. District Court for the Southern District of Texas, Houston Division.

NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the defendants of a law violation. A consent decree is subject to court approval and has the force of law when signed by the judge.

Copies of the complaint and proposed consent decree are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Thomas B. Carter
FTC Southwest Region, Dallas
214-979-9372

Fair Debt Collection Practices Act (FDCPA)

2007-10-20T12:30:00.000-07:00

THE FAIR DEBT COLLECTION PRACTICES ACT

As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996)

To amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end thereof the following new title:

TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]

Sec.
801. Short Title
802. Congressional findings and declaration of purpose
803. Definitions
804. Acquisition of location information
805. Communication in connection with debt collection
806. Harassment or abuse
807. False or misleading representations
808. Unfair practice
809. Validation of debts
810. Multiple debts
811. Legal actions by debt collectors
812. Furnishing certain deceptive forms
813. Civil liability
814. Administrative enforcement
815. Reports to Congress by the Commission
816. Relation to State laws
817. Exemption for State regulation
818. Effective date

§ 801. Short Title [15 USC 1601 note]

This title may be cited as the "Fair Debt Collection Practices Act."

§ 802. Congressional findings and declarations of purpose [15 USC 1692]

(a) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.

(b) Existing laws and procedures for redressing these injuries are inadequate to protect consumers.

(c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.

(d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce.

(e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

§ 803. Definitions [15 USC 1692a]

As used in this title --

(1) The term "Commission" means the Federal Trade Commission.

(2) The term "communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium.

(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt.

(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

(5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.

(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(6), such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include --

(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;

(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;

(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;

(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;

(E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; and

(F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor.

(7) The term "location information" means a consumer's place of abode and his telephone number at such place, or his place of employment.

(8) The term "State" means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing.

§ 804. Acquisition of location information [15 USC 1692b]

Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --

(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer;

(2) not state that such consumer owes any debt;

(3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information;

(4) not communicate by post card;

(5) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and

(6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to the communication from the debt collector.

§ 805. Communication in connection with debt collection [15 USC 1692c]

(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt --

(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location;

(2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or

(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication.

(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post judgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt.

(d) For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator.

§ 806. Harassment or abuse [15 USC 1692d]

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.

(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.

(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act.

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.

§ 807. False or misleading representations [15 USC 1692e]

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to --

(A) lose any claim or defense to payment of the debt; or

(B) become subject to any practice prohibited by this title.

(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.

(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.

(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.

(13) The false representation or implication that documents are legal process.

(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.

(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.

(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.

§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.

(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.

(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.

(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --

(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;

(B) there is no present intention to take possession of the property; or

(C) the property is exempt by law from such dispossession or disablement.

(7) Communicating with a consumer regarding a debt by post card.

(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

§ 809. Validation of debts [15 USC 1692g]

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

§ 810. Multiple debts [15 USC 1692h]

If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions.

§ 811. Legal actions by debt collectors [15 USC 1692i]

(a) Any debt collector who brings any legal action on a debt against any consumer shall --

(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or

(2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --

(A) in which such consumer signed the contract sued upon; or

(B) in which such consumer resides at the commencement of the action.

(b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors.

§ 812. Furnishing certain deceptive forms [15 USC 1692j]

(a) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating.

(b) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 for failure to comply with a provision of this title.

§ 813. Civil liability [15 USC 1692k]

(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of --

(1) any actual damage sustained by such person as a result of such failure;

(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or

(B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and

(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs.

(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors --

(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or

(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional.

(c) A debt collector may not be held liable in any action brought under this title if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

(d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.

(e) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

§ 814. Administrative enforcement [15 USC 1692l]

(a) Compliance with this title shall be enforced by the Commission, except to the extend that enforcement of the requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act, a violation of this title shall be deemed an unfair or deceptive act or practice in violation of that Act. All of the functions and powers of the Commission under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.

(b) Compliance with any requirements imposed under this title shall be enforced under --

(1) section 8 of the Federal Deposit Insurance Act, in the case of --

(A) national banks, by the Comptroller of the Currency;

(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board; and

(C) banks the deposits or accounts of which are insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation;

(2) section 5(d) of the Home Owners Loan Act of 1933, section 407 of the National Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or through the Federal Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provisions;

(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union;

(4) subtitle IV of Title 49, by the Interstate Commerce Commission with respect to any common carrier subject to such subtitle;

(5) the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or any foreign air carrier subject to that Act; and

(6) the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act.

(c) For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any other authority conferred on it by law, except as provided in subsection (d).

(d) Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title.

§ 815. Reports to Congress by the Commission [15 USC 1692m]

(a) Not later than one year after the effective date of this title and at one-year intervals thereafter, the Commission shall make reports to the Congress concerning the administration of its functions under this title, including such recommendations as the Commission deems necessary or appropriate. In addition, each report of the Commission shall include its assessment of the extent to which compliance with this title is being achieved and a summary of the enforcement actions taken by the Commission under section 814 of this title.

(b) In the exercise of its functions under this title, the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title.

§ 816. Relation to State laws [15 USC 1692n]

This title does not annul, alter, or affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by this title.

§ 817. Exemption for State regulation [15 USC 1692o]

The Commission shall by regulation exempt from the requirements of this title any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title, and that there is adequate provision for enforcement.

§ 818. Effective date [15 USC 1692 note]

This title takes effect upon the expiration of six months after the date of its enactment, but section 809 shall apply only with respect to debts for which the initial attempt to collect occurs after such effective date.

Approved September 20, 1977

ENDNOTES

1. So in original; however, should read "604(a)(3)."

LEGISLATIVE HISTORY:

Public Law 95-109 [H.R. 5294]

HOUSE REPORT No. 95-131 (Comm. on Banking, Finance, and Urban Affairs).

SENATE REPORT No. 95-382 (Comm. on Banking, Housing, and Urban Affairs).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Apr. 4, considered and passed House.

Aug. 5, considered and passed Senate, amended.

Sept. 8, House agreed to Senate amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39:

Sept. 20, Presidential statement.

AMENDMENTS:

SECTION 621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were amended to transfer certain administrative enforcement responsibilities, pursuant to Pub. L. 95-473, § 3(b), Oct. 17, 1978. 92 Stat. 166; Pub. L. 95-630, Title V. § 501, November 10, 1978, 92 Stat. 3680; Pub. L. 98-443, § 9(h), Oct. 4, 1984, 98 Stat. 708.

SECTION 803, SUBSECTION (6), defining "debt collector," was amended to repeal the attorney at law exemption at former Section (6)(F) and to redesignate Section 803(6)(G) pursuant to Pub. L. 99-361, July 9, 1986, 100 Stat. 768. For legislative history, see H.R. 237, HOUSE REPORT No. 99-405 (Comm. on Banking, Finance and Urban Affairs). CONGRESSIONAL RECORD: Vol. 131 (1985): Dec. 2, considered and passed House. Vol. 132 (1986): June 26, considered and passed Senate.
SECTION 807, SUBSECTION (11), was amended to affect when debt collectors must state (a) that they are attempting to collect a debt and (b) that information obtained will be used for that purpose, pursuant to Pub. L. 104-208 § 2305, 110 Stat. 3009 (Sept. 30, 1996).

Example Debt settlements by TDS

2007-06-11T12:12:00.000-07:00

Washington Mutual 40% one payment

Citi Financial 58% over 42 months

American Express 35% two Payments

American Express with NCO Financial 21% one payment

Bank Of America 30% one payment

Bank Of America 30% one payment

Chase account with Associated Recovery Systems 37% one payment

Direct Merchant Bank with The Law Office of Gerald Moore 36% one payment

Juniper with Barclay Bank 25% one payment

Capital One with NCO Financial 35% three payments

CW 33 DFW Closeup With Total Debt Services

2007-05-09T15:18:00.000-07:00

Launch in external player

Home Foreclosure Crisis Underscores Need for Debt Settlement Programs

2007-04-03T06:17:00.000-07:00

News Release

Contact
Ciri Haugh
972-480-8383 x 301
Ciri_Haugh@mccom.com

Home Foreclosure Crisis Underscores Need
for Debt-Settlement Programs

Debt-Settlement programs can eliminate debt, curb rising foreclosure rates

Dallas, Texas – APRIL 03, 2007 – The home foreclosure crisis generated by subprime lending continues to get worse by the day. The trouble started a few years ago when mortgage interest rates dropped to staggering lows and low-income buyers could purchase a home with the help of a subprime loan – despite their lower credit scores. Today, those rates have skyrocketed up to 12-13 percent, leaving those buyers, and often, first-time home owners, few options. As a result, foreclosure numbers continue to climb.

“If you do the math on a $130,000 house, a $900 per month payment suddenly increases to $1,300 per month,” Jim Ross, president of Total Debt Services (TDS) said. “Most people are living day-to-day, trying to pay higher heating bills or higher gasoline bills, and they simply cannot pay the extra $400 each month. People often stop paying credit card bills and car notes just to save their homes – essentially putting them in even more trouble.”

And because the housing market is in a downturn and the high loan to values allowed on these loans, selling the house isn’t an option either since they aren’t going to get what the house is worth and closing costs alone can be in the thousands of dollars. Hardest hit are borrowers in states like Texas and Michigan, which led the country in the number of new foreclosures in 2006. National and state lawmakers are currently drafting bills in an attempt to stop the bleeding, but Sandra Braustein, director of the Federal Reserve’s division of consumer and community affairs said problems with subprime mortgages could last for another two years.

This disturbing trend has highlighted the importance of debt-settlement programs in the United States. With the help of one of these programs, people can often pay about one-half of the minimums on their credit cards, freeing up additional money to put toward the mortgage and keeping them out of bankruptcy.

“The natural reaction is to let your credit card and other payments slip in order to keep your home,” Ross said, “but all that does is put you into even more financial troubles. If you enlist the help of a debt-settlement program and address your credit problems, there’s a good possibility, depending on a number of variables, that you could save your house and eliminate your debt at the same time.”

About Total Debt Services

Total Debt Services (TDS) is a consumer debt settlement company located in Dallas, Texas. TDS is committed to helping clients free themselves from the anxiety of overwhelming credit card debt. The company offers consumers guaranteed debt-relief programs for eliminating or reducing their unsecured credit card or loan debt. Our debt Negotiation and debt Settlement programs provide credit card debt relief as an alternative to traditional bankruptcy, consumer credit counseling, debt management and debt consolidation loans, including credit card debt consolidation programs.

Success in Minnesota

2007-03-26T09:02:00.000-07:00

It is always stressed by both our Debt Analysts and CSR's that the client can make their quest to be debt free more successful by being determined.

Congratulations to SK in Minnesota. This client came into the program with 76k in debt November of 2006 and has now completed the program.

Determination and availability of funds have aided in her success. Five accounts were settled averaging 45.2%. The total payout to settle was around 31 thousand with a client savings of 45 thousand.

Congratulations again SK for reaching your goal of being debt free.

Citi Takes steps To Ease Consumer Burden.

2007-03-02T09:29:00.000-08:00

Citi is taking a step in the right direction for consumer assistance.

Citi is eliminating the industry practice of increasing interest rates for
individual cardholders due to their defaults on financial commitments with
other parties, sometimes known as "universal default". Until now, Citi has
given customers the right to opt out of any such increase. But with this
announcement, Citi is going even further, abandoning the practice altogether
for all customers.

Citi is also eliminating "any time for any reason" increases to the rates and fees of its customers' accounts. Traditionally, credit card issuers have taken the position that they can increase the rates and fees of a cardholder's account at any time for any reason; for example, to respond to general conditions in the financial markets. As a result of the new policy, Citi will not voluntarily increase the rates and fees of the
account until the card expires and a new card is issued (typically two years). Now, the only reason the rates and fees will increase before the card expires is if a customer pays Citi late, exceeds the credit limit or pays with a check that bounces. When the interest rate on the card is linked to the prime rate, the rate would change only as the prime rate moves up or down.

Vik Atal, Chairman and CEO, Citi Cards NA, said: "We believe that making changes to what have been - until now - basic credit card practices is proof of our ongoing commitment to put our customers first. "We at Citi are committed to creating a positive experience for our customers. We do this by providing flexibility on payment dates, issuing email or text message alerts when bills are coming due or when a credit limit is approaching, protecting their personal information, and by constantly looking for ways to make our billing statements easier to read and understand."

John Taylor, President and CEO of National Community Reinvestment
Coalition, said: "We applaud Citi's move to eliminate 'universal default'
and 'any time for any reason'. Clearly this raises the bar for the industry
and protects consumers in a way that other credit card issuers do not."

The universal default elimination announced today is effective immediately. The "any time for any reason" changes are effective immediately for new customers, will be implemented for existing bankcard customers by April and will be reflected in Citi's customer communications by summer.

This is a big turning point in the debt settlement industry. Citi is making appropriate steps to address consumer needs and burdens. Thank you to Morgen Trafton of The Association of Settlement Companies (TASC) for relaying the article.

TDS to Visit Thirtieth District of Texas.

2007-03-01T14:05:00.000-08:00

With U.S. Consumer debt reaching over 800 billion dollars the Debt settlement industry is in full swing. Many companies are bracing for their growth and procuring residency in the Dallas hot spots of Frisco, Las Colinas and Plano while public officials for the Dallas area are wondering how to draw it back.

TDS today welcomed Rod Givens, District Director for the Thirtieth District of Texas to discuss the industry as it stands and projections for future growth. TDS moved from a small office in Addison to an office 4 times larger not six months ago and the house is packed. Mr Givens has extended an invitation to the TDS Board to evaluate the opportunities in the Thirtieth District.

Coming from Jim Ross, President of TDS, "The growth we have experienced is tremendous. There are so many consumers out there looking for just the slightest relief that they are really researching their options, and debt settlement is at the forefront. The program we have developed is aggressive and very beneficial to the clients in the long run. We have not only helped them by reducing the monthly expenses and burdens they have, but even helped them to get into the homes of their dreams"

Eddie Bernice Johnson to visit Total Debt Services.

2007-02-28T12:30:00.000-08:00

Total Debt Services welcomes Congresswoman Eddie Bernice Johnson of the 30th District of Texas. Congresswoman Johnson will be visiting TDS executives to discuss the importance and ongoing growth of the debt settlement industry and it's benefits to the American consumers and constituents of her district.

Total Debt Services is a leader in the regulation of the Debt Settlement industry for the benefit of consumers. TDS strives to put the customer first and build an ongoing financial relationship through it's parent company Lady Belvedere Enterprises whose current holdings include Belvedere Mortgage and Jim Ross Insurance.