Complaint resolution service publishes case studies, recall information and consumer news.

Ten payday lenders, defined as a company that lends money at usually high interest rates against an upcoming paycheck, are facing Federal Trade Commission (FTC) charges regarding advertising and collection tactics.

The Nevada government added to the federal charges, which allege that payday lenders did not disclose important information about the loans and that their collection tactics were “abusive”.  Potential customers were told that they could borrow several hundred dollars for a fee ranging from $35 to $80 provided that the amount was repaid in the next week.   Borrowers had to provide the companies, some of them based in the United Kingdom, with their bank and social security information.

During repayment, special clauses that the government contends were not disclosed to borrowers would cause the loan amount to increase by many times over.  If the borrower terminated the lender’s access to the account, they were subject to what the government called “abusive” collection tactics.  Borrowers were allegedly told they were subject to arrest or property seizure.

he corporate defendants are Cash Today, Ltd., The Heathmill Village, Ltd., Leads Global, Inc., Waterfront Investments, Inc., ACH Cash, Inc., HBS Services, Inc., Lotus Leads, Inc., First4Leads, Inc., Rovinge International, Inc., and The Harris Holdings, Ltd., each also doing business as Cash Today, Route 66 Funding, Global Financial Services International, Ltd., Interim Cash, Ltd., and BIG-INT, Ltd. The individual defendants are Aaron Gershfield, Ivor Gershfield, and Jim Harris.

Tough economic times can sometimes cause consumers to seek alternative income or lending sources.  As always, checking the lender’s reputation with your local consumer affairs office — at either the local or state level — is the best course of action before borrowing from any well-known lender.

Posted under Finance

The federal treasure trove from the FCIC — the folks you might hear on public service announcements as shipping from Pueblo, Colorado — have an amazing variety of books and information for no or little cost. One we especially like is a packet published with help from the Securities and Exchange Commission (SEC): Fraud Protection for Seniors.

The package includes helpful pamphlets about scams that sound too good to be and even tips on protecting your retirement savings. There are even hints on how to qualify marketing offers to ensure they are appropriate for you.

Ordering this free package of publications is easy:

• Send your name and address to Fraud Protection for Seniors, Pueblo, Colorado 81009
• Order Protecting Seniors From Fraud online
• Call toll-free 1 (888) 8 PUEBLO or  (888) 878-3256, weekdays 8 a.m. to 8 p.m. Eastern Time and ask for the Fraud Protection for Seniors package.

Posted under Finance

Great Tax Scam book for sale

A California man who the government accused of promoting an improper tax loan scheme has agreed to an injunction against completing future transactions. The man, Scott Catchart or California, did not admit wrongdoing, but agreed to stop the 90 Percent Stock Loan Program.

Government attornies allege that Cathcart misprepresented the progam to consumers by stating that they could avoid income tax on any gains because the transaction was a “loan”, not a sale.

“The public should beware of promoters who promise miraculous tax benefits,” said Nathan J. Hochman, Assistant Attorney General for the Justice Department’s Tax Division. “If it sounds too good to be true, it most likely is.”

Posted under Finance

Washington Attorney General Rob McKenna, someone we’ve often covered, has again come to the front of the consumer pack and accussed a company of wrongdoing.

McKenna says that United Home Savers, a Florida company, violated multiple Washington regulations and is now out of business.  McKenna charged that the company and owners Stephanie and Darin Dietschy promoted a foreclosure assistance service that

can rescue homeowners from foreclosure. The company charged $1,200 or more up front and promised a refund if their services weren’t successful.

Instead, Washington Assistant Attorney General Jack Zurlini reported that the company did not help consumers and routine failed to refund those who complained.  The U.S. Federal Trade Commission is also investigating the company and others accused of preying on homeowners in danger of foreclosure.

As part of Blog Action Day earlier this week, Consumer Help Web documented a series of pages at the US Department of Housing and Urban Development that provide official federal advice on home mortgages and foreclosures.

Posted under Complaints, Finance

The global economic crisis that first began impacting businesses continues to destroy consumers.  Nest eggs carefully nurtured over decades are significantly down, the percentage of consumer credit being used is up even though consumer spending is down and house prices continue their free fall.

Most alarming is the number of houses with a delinquent mortgage and the record number of houses in formal foreclosure processes.

There are alternatives to foreclosure, but homeowners must be proactive.   One of the most overlooked resources for people to find assistance is the U.S. Department of Housing and Urban Development.  You may know the agency’s name as “HUD”.    Of the many agencies battered by this unique crisis in our lifetimes, HUD has shown that it is one of the best in communicating to consumers about their options.

Consumer Help Web is honored to help HUD spread that message during Blog Action Day.

Among the services offered by HUD is a list of housing counseling agencies where consumers can get straight talk about their options.  There is also a great advisory on foreclosure scams everyone should read.  There is even a list and advice about alternatives when a housing lender won’t work with you.

Start at the main HUD Guide To Avoiding Foreclosure and become educated.  Knowledge is power, and seeing a U.S. agency step up timely and helpful information is a welcome sight.

Posted under Finance

Four “debt negotiation” companies have settled government charges that they acted improperly by promising consumers debt services they could not provide. The companies will cease operating and pay more than a quarter-million dollars in fines.

The companies involved are National Support Services LLC, Homeland Financial Services LLC, Financial Liberty Services LLC, and United Debt Recovery LLC.

The Federal Trade Commission (FTC) was the lead agency involved in reaching a resolution with the companies.  The settlement allows the companies and individuals to avoid trials or even an admission of guilt.  The government agency will also be permitted to monitor future actions from the accused.

We often warn consumers about aggressive “credit repair” specialists and others who claim to have more authority to help consumers with burdensome debt.  The federal government’s communications group, the FCIC, has great advice detailing your rights and suggestions for getting out of debt.

As consumers greet the continuing collapse of Wall Street and supposedly safe investments, in addition to bank failures, there is no shame and should be no fear in contacting your bank or other creditors.  The information at this site will show you how.

Posted under Finance

After every international disaster, we sadly have to convey warnings from government agencies.  The latest is from the Federal Trade Commission (FTC) related to companies soliciting funds for relief efforts following Hurricanes Gustav and Ike.

The agency publishes a Charity Checklist online fhat all consumers should read before contributing.   With the U.S. at war in two countries and in the midst of a major election season, natural disasters can find fertile ground for consumers who are looking to help others.

This is especially true given today’s CNN report that Galveston (TX) City Manager Steve LeBlanc is telling residents to leave, saying that the storm’s aftermath is worse than the storm.

Posted under Finance

Edward Jones & Co has agreed to pay $7.5 million to settle a suit filed by the state.  The suit accused the financial services company of not disclosing its relationship with mutual fund companies.  The relationship reportedly allowed Edward Jones to be paid when referring a consumer to those companies.

The financial services company had settled similar charges at the federal level in 2004 and paid $75 million in fines and penalties.  California’s suit was independent of the 2004 federal case.

Posted under Finance

Congratulations to Laura Lowell on her upcoming release of 42 Rules for Working Moms. There are some great rules in there about work-life balance and some good consumer information too.

We’re proud that our very own Joan was one of the moms selected. While raising three kids, she also managed to co-found Consumer Help Web and has been the company’s main point of contact regarding consumer complaints for five years. Sure, we’re small enough to all be happy, and I’m willing to admit to bias, but it was a great idea that Laura asked about online some time ago, and is a great read.

If you’re interested, the book is out this week on Amazon.  Click on the cover to head there.

New Book For Working Moms

Posted under Finance, Health

We’ve often written about the fortunes trapped in the wallets of consumers who carry around gift cards for months.  In many ways, this is almost as bad as getting large tax refunds every year.

What makes this practice especially dangerous is what happened Friday.  Home furnishings giant Linens ‘n Things announced they were filing for bankruptcy protection.   That filing is a danger sign, but not especially problematic. The true problem came in the details of the filing when the company said that it would close 120 of its less than 600 stores.  About 15% of those stores are in California.

What does that mean for you?  If you’re in a California community with a Linens ‘n Things store due for closing, you might find some amazing deals.  After all, it is cheaper to sell products at a deep discount than to pack and move them.

But don’t hesitate.  You may very well find that the store in your town and surrounding towns is closed before you know it.

Reminder:  The email function on this blog is in the top right corner.  Be sure to send this to anyone to whom you’ve given a Linens ‘n Things gift card or someone you know who has one.  Smart consumers stay aware of trends, and gift card holders need to know if and when their local store is closing.

Posted under Finance