Credit Associates Flat out lies in commercials a MUST READ

I had originally posted this in December 2017 and then my awesome computer skills somehow deleted it so i am re-posting it, read as see for yourself!

 

As we get older we seem to fall into certain patterns or habits, so for me every morning I wake up and as I get ready for work I have the morning news on. This somehow happened to me a few years ago, I think it’s automatic the moment you cross over the age of 40.

One of the consistent annoying commercials is one from the debt settlement company called “Credit Associates”. I always get amazed at how TV networks don’t get sued for airing what is flat out lie to the public.

They start almost from the beginning by saying “there is a secret the credit card companies don’t want you to know, if you have more than $5,000 worth of debt you have the right to settle that debt for a fraction of what you owe”.

NOTE/LIE # 1: there IS NO secret…..

NEWSFLASH for consumers reading this ANY book, commercial or Ad if you even see or hear the sales person saying they have a secret that banks don’t want you to know it is such a lie it’s crazy. Example, how can it be a secret if they are advertising to tell you?

It’s a gimmick trick to get you to call so they have a chance of selling you so don’t be a sucker.

Back to my point….

There is no law that says any debt over $5,000 gives you the right to settle on the debt based on what they say in their commercials.

$5,000.00 is probably their bottom line that they can charge before they can make any decent sort of profit that is worth their time and expense on the consumer while dragging out the process.

While I have no clue how they get away with lying like this what I can say is I actually got a solicitation call from them so I jumped up for joy and pressed “1” to talk to a representative.

My representative was named “John” he did not sound like anyone I know named John. I will point out and I said I was interested but I was super curious as is my nature and wanted to know what was “the secret” or law that allowed me to save thousands like their commercial said since I was never aware of or heard about.

Wouldn’t you know it but John didn’t seem to know what I was talking about and went into his script.

I kept interrupting him to say I want to know first what this law is first before seeing what his company can “do to help me”. He kept trying to read through the script and I said “ hey if this information is above your paygrade then that’s no big deal so put me on hold or transfer me to a supervisor so I can get the answer and then back to you to move forward”.

I was giving him EVERY option available to get me the answer (if there was one) and he would not or should I can could not answer the question. I then started saying “listen your company advertises this so why are you not prepared to answer this question which is in the first 10 seconds of your companies commercial or at least be able to transfer me to someone who can at least tell me the answer”?

As I had some time at the moment and justified however long I dragged this out for utilizing the time for this blog I must have been on the phone for at least 15-20 minutes.

Towards the end of him trying to push past my question and finishing his script and I said to “John” that if your incapable or unwilling to answer the simplest question on the 1st sentence of your companies commercial it’s obvious this company is a scam company so answer the question the next time you speak or I am hanging up the phone.

Shocking result of what happen next? I hung up the phone.

What most of these companies do is basically take advantage of your unwillingness to talk to your creditors. The collectors can be jerks and some are nice. Once a bill has gone past the 120 day mark creditors are open to ‘re-discuss” the original terms of the agreement. Now of course to get to that mark your credit score is destroyed and you may be a candidate for credit repair but maybe not as your credit report is file specific. Think of the term different strokes for different folks.

Without any knowledge whatsoever you should be able to get them to give you a minimum of 20-30% discount off of the current debt owed. An experienced person in this industry can go much lower, I have gotten an average when helping clients with this issue anywhere from a 70-90% savings.

Quick story to end this blog, had a client ask me to look at what their in-laws got themselves into and said sure will be happy to give my opinion. It was a debt settlement program, they had several credit cards and they were paying $375 a month into a “pot” so to speak and when the funds grew large enough they would go in , settle one account and so on.

The issue was in all of the fine print and there was a lot of it but on the page with the fees etc it was CLEARLY marked that this “company” was charging “$221.00 a month” to take their money as their fees that they have not performed and would not perform until these particular clients had at least $1,000 to settle debt # 1.

So they were only saving approx. $154 a month towards settling their bills. They were in shock but I said I didn’t understand why they were as this was clearly printed and they said the person didn’t tell them that and they didn’t look at the paperwork and only signed where he said they needed to sign.

I then said, you mean the “Sales person”??

They got silent really quick, and I gave them advice on what to do but said they have no recourse as they signed the papers and the fees were clearly marked.

You can do this yourself and save some money if you want to or if you choose to hire someone make sure you get some solid numbers and make sure you’re getting some good savings. I had a guy who owe $127,000 in unsecured debt and got everything settled for less than $40,000 which included my fees so he saved over $80,000.

That was one heck of a job and time consuming but normally do not deal with something that large typically.

Moral of this story, READ what you sign and NEVER make an impulse buy/decision. If your being constantly called about your decision then it seems they NEED your money, go with the person who makes you feel comfortable, has a background that can be validated by outside parties and follows up with you when YOU ASK THEM TOO.

 

 

 

* Want to learn more about how the credit system works?

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Have questions about your credit where you may need my help?

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Buy my book for easy to understand concepts of how the credit system works and how lenders look at you.

 

email me today at: wayne@waynethecreditguy.com

If you email me, to make it easier as i am getting a lot of emails and i respond to all of them please provide me a summary of your situation. Include are you paying the bills on-time, have you not paid them in 3 months, how much you owe and what are the total monthly credit card bills you are paying.

MOSt of the people contacting me i am directing to places i have already vetted that i have identified as places that will do what is best for you and your family and not some company.

 

 

 

Doing nothing doesn’t make your credit better over time

While technically the above statement is not true not many people want to wait 7 years for all their negative information to fall off their credit report based on the Fair Credit Reporting Act.

Its human nature to bury our heads in the sand and ignore the problem. Hoping it just “goes away”. If you have 7 years to spare then sure it’s not a problem….Or is it?

If you have a tax lien (state or federal) or if you were sued and had a judgment placed against you that judgment can be refreshed every ten years to make sure it remains in the system due to its age and not fall between the cracks.

Banks do not expect you to have perfect credit. If you do then the rates will obviously be better as it means you are a good risk and worth a low interest rate. Having collection accounts, charge offs, car repossessions and medical bills are not deal breakers but it depends on numerous factors, too many actually to list here.

What you need to understand is these problems cannot have happened last month or in the last few months.  Every file is different and specific recent problems, late payments or collections make banks nervous when someone is asking them for tens of thousands of dollars or even several hundreds of thousands of dollars for a home.

I had one executive of a finance company come to me who was originally from England, she had a bad divorce and left the country not expecting to come back but as life has it she returned about 6 years later and needed to buy a home. However, a collection account ballooned up to approximately $50,000 so we had to implement a plan after I gave her the options that were available to her. She said after the divorce she didn’t plan on coming back for a long time until plans changed business wise but she was forced to return and confront the problems of her past.

So the moral of this story is, sticking your heard in the sand for 90% of the time if not more, does not help. We all need to be proactive. Whether that means doing something now or speaking to some professional to gather advice on what to do in the future.

Hope this little blog helps and if you need to speak to me just send me an email to wayne@waynethecreditguy.com and we can set a time to speak!

 

About Wayne the Credit Guy:

Wayne Sanford, also known as “Wayne the Credit Guy“, is the owner of New Start Financial Corporation. With nearly a decade of experience working in the credit industry, Sanford has personally reviewed more than 13,000 consumer credit files for mortgage professionals, investment groups and consumers. – See more at: http://waynethecreditguy.com/waynes-bio

When NOT to “fix” your credit

It seems like a silly statement but, when should you not “fix” your credit? So the statement may not be WHEN to not fix your credit but when NOT to hire someone to fix your credit.

I recently had two possible clients come to me a few weeks ago referred by a real estate agent and a loan officer. They told me they really wanted to get their credit fixed and buy a home. I asked to get a copy of their credit reports to review their files first before we speak further as I want to assess the credit situation they are in first.

When I reviewed the credit files, one file had 3 credit cards all maxed out and had late payments for 2 of them up to 60 days late. This means they have not paid these credit cards for the last 60 days and are coming close to 90 days of nonpayment.

The other credit report had almost the same issue, only just 30 days-three months in a row, BUT also had what we call “rolling 60’s” for the last several months on their mortgage.

I started explaining to each of them a little bit of how the credit system works in relationship to their immediate issues and then addressed numerous collection accounts getting some more detail on each account.

For the couple without the mortgage late payments I told them the best thing they can do is not pay a credit company like me at the moment but catch up on all of their bills. Surprisingly the response they gave me was unexpected. Even after I explained to them how the credit system worked, they still actually expected me to just charge them a fee and “fix everything”.

That is part of the problem with our industry, most of the people consumers talk to are the sales people, who get paid either commission only or a very small base pay and then a good commission when they close a deal. These people; whom I understand the situation; just don’t provide a benefit to the consumer as they have no clue what’s going on but only refer you to an actual “expert” once you have paid their fee.

For example, what is the use for that couple to pay me, when every month their current bills are not getting paid? It’s not going to happen. Lenders look specifically at how you pay your bills today as does the credit scoring system.

It seemed this couple wanted to be told everything will be alright and if they could just pay someone to make things “go away”.

Folks, it just does not work that way. It’s one of the many reasons why the credit industry has such a bad reputation. I told them why pay someone when you still have the same problem that will be occurring every month? It’s like putting a small band aid on a huge gash. Yes we can get the negative accounts eliminated based on several things, but you still would have the accounts that are not being paid today and tomorrow.

The couple with the mortgage late payments didn’t seem to understand that’s why a bank doesn’t want your business if you’re late on current mortgage and maxed out on credit cards with recent late payments.

And I said all of this a lot nice, but what I want you to understand is, I was telling them to not pay someone or let them talk you into thinking about paying them to “make it go away”, because that is a flat out lie.

Life always hits us with speed bumps and knocks us down, but we just get back up like we have to. I told them there is no way I’d take their money and tell them what they want to hear and then come up with excuses later.

So here is the game plan. I have been around for 10 years so I am not going anywhere. Use the money you were going to pay a credit company and catch up on ALL of your bills.

After that, make all of your payments on time for one year. Try to keep the credit card balances low when you start to catch up, then come back to us and let’s have your credit report pulled again and see what has changed.

Once you are out of the immediate danger zone is when a plan can be established to help you get what you want financially. If this isn’t the course of action you take then all you’re doing is looking at delaying the immediate issues as well as always looking over one shoulder.

*REMEMBER*— Paying a company does not mean all your problems or issues go away. You need to get with someone who can give you a plan, stick to that plan, and help you see that glowing light at the end of the tunnel for you and your family.

About Wayne the Credit Guy:

Wayne Sanford, also known as “Wayne the Credit Guy“, is the owner of New Start Financial Corporation. With nearly a decade of experience working in the credit industry, Sanford has personally reviewed more than 13,000 consumer credit files for mortgage professionals, investment groups and consumers. – See more at: http://waynethecreditguy.com/waynes-bio

The ABCs of Establishing Good Credit

Wayne the Credit Guy discusses the keys to establishing good credit in this new article on FreeCreditScore.com.

“The credit game has become a business, and in order to make money that business must keep consumers in debt,” says Wayne Sanford, aka “The Credit Guy.” “Not knowing the rules of the game and having no knowledge of the fine print keeps the consumer tied to the system.”

Read the full article here.

Clean Up Credit Before Finding New Apartment

Clean Up Credit Before Finding New Apartment

Wayne the Credit Guy discusses the impact an eviction can have on your credit report in this article on FoxBusiness.com.

Excerpt:

Credit reports do not show records of evictions. According to Wayne Sanford, president of the credit consulting company New Start Financial, “If you are evicted, then it will show up as a collection as any apartment debt a consumer owes, such as cleaning fees or lease breaking.”