financial scams

Why Debt Settlement Plans Usually Fail and Can Actually Hurt Consumers

master — Wed, 12 Nov 2014 14:23:15 +0000

Why Debt Settlement Plans Usually Fail and Can Actually Hurt Consumers master Wed, 11/12/2014 - 09:23

Ever see those commercials on TV promising to get you debt-free for less than you owe without filing bankruptcy? These money miracle ads are promoting debt settlement firms and while they sound great (who doesn't want to pay almost nothing on their debt?), they usually don't help with serious debt issues and even create bigger problems for the consumer to deal with. That's no deal at all. Today we'll take a look at why debt settlement plans usually fail, how they can hurt you and some better alternatives for meaningful debt relief.

Did you know just 10% of debt settlement plans work out?
The Better Business Bureau reports that just 10% of consumers actually benefit from debt settlement plans and emerge debt free, as promised. Debt settlement plans are risky for the consumer but 100% profitable for the firms that offer the services. The National Association of Consumer Bankruptcy Attorneys considers these plans one of the biggest threats to in-debt consumers.

Did you know debt settlement plans come with exorbitant fees?
In addition to not offering promised relief, debt settlement plans actually increase the amount of debt by tacking on outrageous charges to the debt settlement firm. These firms are not charities. They charge thousands of dollars for their services and pay themselves first. Whether you get out of debt or not, they profit greatly. Where is their incentive to help you?

Did you know debt settlement plans ruin your credit?
In order to use a debt settlement plan, you have to specifically default on your debt by not making payments. The debt settlement firm then tries to negotiate a lower settlement but by then, you face penalties, interest and a lower credit score. And if the creditor won't take a lower offer, you could actually owe more than when you started.

Did you know debt settlement plans increase your taxes?
When a creditor accepts a settlement for a lower amount than you owe, they usually issue a 1099-C for the amount you didn't pay. The IRS treats this amount as taxable income. Even if you do get a break on some of your bills, between the additional taxes this will cause plus the fees you'll pay to the debt settlement firm, you will likely be worse off than when you started.

Did you know bankruptcy is a much safer and cheaper option?
Bankruptcy is a scary concept to many consumers but, in fact, it usually offers much better results than debt settlement plans. True, you'll pay attorney fees, but these are usually less than what debt settlement firms charge and your results are much better. If you qualify for a Chapter 7 bankruptcy, you'll see most of your unsecured debts discharged including credit cards and medical bills and you won't be hit with a 1099-C. Debts discharged in bankruptcy do not trigger a tax impact.
If you're considering a debt settlement plan, before you sign anything, come into our offices for a free consultation and let us show you the difference between a questionable settlement plan and the verified results that Chapter 7 offers. Contact the law offices of John T Orcutt for a free appointment at one of our convenient North Carolina locations. Don't wait – get the debt relief you deserve now.

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financial scams

Protect Yourself at the ATM – 5 Tips to Keep Your Cash Safe

master — Fri, 07 Nov 2014 14:03:30 +0000

Protect Yourself at the ATM – 5 Tips to Keep Your Cash Safe master Fri, 11/07/2014 - 09:03

We've written recently about a number of data breaches that may have put your financial information at risk. Most noticeably, the Target and Home Depot breaches put tens of millions of consumers' credit card numbers at risk. To minimize consumer risks until the companies had their systems safe once again, it was recommended to spend cash rather than swipe. But using cash necessitates a trip to the bank or ATM and since ATMs are more convenient, they're the likely option. However, increasingly, even ATMs aren't safe.

You may think that as long as you're alone at the ATM, your financial data is safe, but that's not necessarily true. Thieves are now using high-tech tools to steal card information and PIN numbers that you may not even notice unless you're on the lookout. It's important that you are careful every time you use an ATM to make sure prying eyes or prying technology aren't trying to steal your info. Here are five tips to keep your money safe at ATMs.

#1 Protect your PIN – This involves several steps. First is selecting a PIN that can't be easily figured out. This eliminates birth dates, house numbers, social security number, phone numbers, etc. The best bet is to use the random number that your bank assigns to you when they send your card. Although it will be an adjustment to memorize it, it's worth the extra brain power. No one should be able to guess a totally random number. Also, don't write it down and don't tell it to anyone. If you have to have someone run an errand for you that requires a card, you're better off letting them use your credit card rather than your debit card.

#2 Check the ATM – Before you swipe your card at an ATM, check it out to make sure it looks okay. The photo above shows an ATM that has a card skimmer attached. This is a device that records the data on the magnetic strip of your card. Thieves also place either a false key pad (that looks authentic) or a pinhole camera to record your PIN number. With the magnetic data and PIN, scammers can create an identical card and use your PIN with it to drain your account. If you look at the photo, you'll see the scratches around the reader and the fact that it's not made of the same material is a clue. If the ATM looks suspicious, give it a pass.

#3 Be aware when using the ATM – You should also be aware of old fashioned thievery including bystanders peeking to see your PIN, physically taking your card from you or criminals that will lurk and simply steal your cash after you get it from the ATM. Avoid any ATM that isn't properly lit, has anyone shady lurking around it or is in an unsavory location. Also, use your free hand to obscure your PIN as you enter it in case prying eyes are looking or there's a camera trained on your hand movements. If you're in a drive-up ATM, make sure your doors are locked and roll up your window ASAP after you get your cash. You just never know who's looking to steal from you, ATM cash grabs are prevalent and skimmers are growing even more common.

#4 Consider getting cash back – Also realize that there are other options to the ATM for getting cash. Cash back at the grocery store or WalMart is cost-free and may be more secure than finding an ATM. Plus, if you use an out-of-network ATM, you'll pay hefty fees to get your money. Also, swiping your card at the store (most of the time) carries less of a risk than at the ATM. Would-be thieves can't tamper with card readers at cash registers without being noticed and there's no good place for crooks to hide a camera. Most stores will allow you to get at least $50-$100 back. You can also just go into your bank to get cash where there should be no risk at all.

#5 Report card loss/theft immediately – If you ever mislay your ATM card or if it is stolen, report the loss immediately. Here's why. While credit card issuers allow you more leeway in reporting a card lost or stolen and generally won't hold you liable for unauthorized charges, bank-issued ATM and debit cards do not carry such generous provisions. If you report the theft/loss within two business days, your liability won't exceed $50. After two days but before 60 days, you can be liable for up to $500 of illicit charges or withdrawals. Past 60 days, whatever damage is done is your problem. This is nothing to mess around with. If you even suspect that your card may have gone missing, you're better safe than sorry – so report it. Also, check your activity frequently – most banks now offer an app so you can monitor your account and notify the bank if you see any illegitimate ATM or debit activity.

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financial scams

financial security

Beware a Computer Scam in Garner That Can Cost You Money and Your PC or Laptop

master — Fri, 05 Sep 2014 18:35:36 +0000

Beware a Computer Scam in Garner That Can Cost You Money and Your PC or Laptop master Fri, 09/05/2014 - 14:35

We like to keep our readers and clients informed of any scams that can cost them money, their personal information, mess up their credit rating or get them deeper into debt. Today we bring you a scam that's hitting consumers in Garner and other nearby areas including Raleigh, Apex and Fuquay-Varina. Attorney General Roy Cooper announced in May that his office has obtained a court order to stop a local computer shop from taking advantage of customers. The business to avoid (according to Cooper) is Raleigh Geeks – also known as Caveman Computers, ProTech Computers and Fuquay Computer Center.

What Raleigh Geeks in Garner (and other locations) has been accused of:
North Carolina AG Cooper filed a lawsuit against Raleigh Geeks (and all its other names) after 24 consumer complaints had reached his office accusing the computer repair biz of misleading customers about repairs and failing to give customers back their computers after repairs were made. The lawsuit seeks a permanent ban against the Garner firm for deceptive practices engaged in by the owners and managers, refunds for scammed consumers, return of computers to all clients and any applicable civil penalties.

What the State Attorney General has done to protect consumers:
Cooper's office has obtained a court order against Raleigh Geeks and its other businesses to stop collecting money from customers or entering into any contracts for computer repairs. Cooper announced in a North Carolina Department of Justice release, “Taking money upfront, keeping someone's computer for months and then giving it back still broken is no way to do business. Customers who paid for repairs that never happened deserve their money and their computers back.”

What has happened to consumers in Garner, Raleigh and other local areas:
Owners and managers including Steven Leo, Garret Foster and Timothy Staie were specifically accused by Cooper of taking upfront payments, then not completing work or not completing it in the promised time frame. Consumer complaints to Raleigh Geeks were either ignored or they were stalled and the work was still not performed. Many consumers found that their computers were worse after the computer shop “repaired” them and some were even given back different computers than they had turned in for repair and the company lied to customers and insisted it was the original computer.

What you should do if you were a victim of one of these companies:
If you are a Garner or Raleigh area consumer that had a less-than-satisfactory experience with Raleigh Geeks, Caveman Computers, ProTech Computers or Fuquay Computer Center, contact the North Carolina Department of Justice online to file a complaint or call Cooper's office at 877-5-NO-SCAM. Cooper says, “When you pay someone for repair work, you expect to get your property back on time and in working order.”

How to prevent being taken advantage of for repair services:
If you need a repair on your computer, car or any other type of service work done, there are steps you should take to minimize the chances of being ripped off. First, check out the provider before you contract with them. Check them out on the local Better Business Bureau website and also on Yelp to check for unsatisfactory customer reviews – Raleigh Geeks is poorly rated on both reviews. Also, don't prepay. You should only pay once you are sure the promised repairs have been made.
If you drop off an item for repair – like your laptop or desktop – turn it on at the shop before paying to check it out and make sure it is working properly and the repairs are complete. If it's your car, crank it and insist that you get a test drive with the mechanic before you pay. If it's an item at your home – A/C unit, dishwasher, etc – give it a try before you pay and the repair person leaves. Also, it's best to pay by credit card rather than cash or check because if the repairs aren't done properly, you can dispute the transaction with your card issuer.

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financial scams