Friday, December 31, 2010

2010 - Year of the Ridiculous Airline Fee

DNS wishes everyone a happy and healthy New Year! This year may go down as one of the worst for ridiculous airline fees. Ranging from forcing travelers to pay for carry-on bags or coercing them to pay $39 extra for a seat in coach, domestic airlines went above and beyond where consumers thought they would go to hike up fees.

Charging for Carry-Ons - Fliers weren’t pleased when low-cost carrier Spirit Airlines revealed back in April that it would start charging fliers up to $45 for each piece of carry-on luggage that they couldn’t stow under a seat. Air travelers could save a cool $15 if they purchased their carry-on allowance online but even $30 is an outrage for a suitcase.

Toilet Toll - Leave it to the English! British based Budget airline Ryanair caused an uproar when it instructed Boeing to retrofit more than 150 of its planes with coin-operated lavatories. Boeing flatly refused, but that didn’t discourage Ryanair and they told Boeing to remove a few of the lavatories to make room for more seats.

Continental’s FareLock - Savvy travelers book their flight to freeze the fare and reserve the seat before it sells out, and then go shopping around for a better deal. Continental obviously knows this, since they are now charging fliers to hold their fares. The service, aptly dubbed FareLock, lets customers browse and save their seats as they always have online, except now they get hit with a $9-$19 fee to do it.

Paying Extra for Coach - In August, 2010 American Airlines decided to start charging passengers $19-$39 extra to book the first few rows in coach. The airline went so far as to name those rows “Express Seats,” and in its press release claimed it was “providing [passengers] the convenience of being among the first Coach passengers on and off the plane.”

Paying for Leg Room - As if paying for “choice” coach seats wasn’t enough, now you have to pay for leg room. Continental Airlines has raised the cost of exit row seats in coach. While prices vary, these seats cost $59 on one flight from Newark to Houston, and some airlines regularly charge for roomier seats. US Airways, for example, asks customers for $5-$30 extra to get a view of the friendly skies from a window seat.

Paying for Wiggle Room - It’s no big secret that America has a weight problem. But talk about adding insult to injury, United Airlines is collecting a “fat fee,” if your girth and/or weight exceeds their specifications and Southwest Airlines drew a lot of flak this year for booting Hollywood film director Kevin Smith off one of its flights for being too heavy.

Paying for Peanuts - Here’s a fee where you’re really paying for almost nothing. Delta, Alaska and United currently charge up to $7 for snacks, while US Airways grabs $2 from passengers for a simple bottle of water. You could satisfy your appetite with the carrier’s $6 snack box, but then you’d be paying 400% more than the supermarket price, and that’s just a “rip off”.

Baggage Fee Outrage - Baggage fees and other charges may be a profit engine for the airlines, but they have air travelers steamed. Luggage charges topped a list of travel annoyances in a recent Consumer Reports poll. Travelers have begun fighting back against hidden fees with an online petition and a push for legislation. These fees can run from $20-$25 for the first bag and another $25-$35 if you check a second. For a round trip with two checked bags, that’s another $100 or more to add to the final bill. No wonder people are so angry. To hear the controversy raging around baggage fees, you could be forgiven for thinking that paying to check your luggage had become an unavoidable fact of air travel.

Wednesday, December 15, 2010

An Overzealous Debt Collector

When you try to pay your debts to a company, the last thing you expect is to receive a death threat in return, but that’s what one customer said he recently got.

Al Burrows owed $308 to Verizon Wireless and had spoken with a bill collector at the company who set him up on a 90-day timetable to pay it off. However, shortly after, Mr. Burrows said that another bill collector called him and demanded that the debt be repaid immediately. The collector then allegedly threatened Mr. Burrows, saying, “I’m gonna blow your motherf%$^ing house up”.

According to ABC News Mr. Burrows was so frightened that he and his wife immediately changed their locks but then decided to leave their home in Las Cruces, New Mexico and move to an undisclosed location out of state. Now, Burrows is filing a lawsuit against Verizon. Verizon allegedly told Burrows that he was making up the story, but a company spokesman told ABC that “the alleged behavior is inappropriate” and the company “takes such allegations very seriously.”

To call this behavior “inappropriate” is certainly an understatement. As consumers, it’s easy to feel helpless when dealing with debt collectors, but it’s crucial that you know your rights. The Fair Debt Collection Practices Act contains a number of provisions restricting the conduct of debt collectors. For example, Debt collectors are only allowed to call you during certain hours of the day (usually between 8 a.m. and 9 p.m.) and you have the power to tell them not to call you at work. Yes, these collectors are permitted to raise their voice on the telephone but they cannot yell or scream in a frightening manner and they are absolutely not permitted to make any threats against you.

Monday, November 22, 2010

Creating a New Identity - Worst Credit Scam Ever

“Get Rid Of Your Bad Credit History”, “We Can Show You How To Leave Your Bad Credit History In The Dust”, Get A New Start By Leaving Your Bad Credit History Behind You”. These Internet and Email offers look very appealing, but are they real. Here is the true story behind these so-called cure-alls for bad credit.

Consumers with bad credit histories are getting offers to wipe the slate clean by creating whole new identities -- complete with a new Federal Employer Identification Number to replace their existing Social Security number!!! This process is called "file segregation", which means that you segregate, or separate, your bad credit history from a new, more pristine identity which you create. It's a scam that is proving so popular with debt-burdened consumers or credit-impaired consumers anxious to repair their credit profiles that the Federal Trade Commission (FTC) has made the identity-change game one of its top new enforcement actions and has gone after the companies selling so-called “new identity kits”.

The method for creating your new identity is to get a Federal Employer Identification Number, which, like your Social Security number, is a 9 digit number that the Internal Revenue Service issues to an employer to identify their business. You apply for the Federal ID number in your own name and use this number as your Social Security Number. It sounds easy and it is, the only problem is that it’s a federal crime to misrepresent your Social Security number and obtain a Federal Employer Identification Number under false pretenses. You could even be charged with mail or wire fraud if you use the mail or telephone to apply for credit and provide false information.

The FTC believes that most of the consumers using these kits are victims and that people wouldn't buy this stuff if they knew they were subject to criminal prosecution for following the advice in these “new identity kits”. They agree that some consumers are victims of credit repair scams but they also believe that some people are looking for ways to skirt the law. If it is clear that a person really believed what they had been sold was legal, then they probably won't be prosecuted, but someone looking for a scam as a way to establish a phony identity for the purpose of getting credit is headed for big trouble with the law.

Thursday, October 28, 2010

Turn $1.00 a Day into $66,941!

The coins rattling around in your pocket can add up to big savings over time. Want a foolproof way to turn $1 a day into $66,941? It doesn't take a lot of money or time or personal sacrifice. There's no magic, no multilevel marketing and no salesman will call at your door. In fact, it's the simplest and most-proven way to get richer, and if you extend this concept to other parts of your life, you could end up with an enviable retirement nest egg.

To start, all you have to do is take your pocket change at the end of the day and drop it in a jar. If you can do that, and you put away about $1 a day, that's just $7 a week. At the end of the month, you'll have about $30. Since this is money in your pocket, you've already paid taxes on it in the form of withholding from your paycheck. Every month, deposit your savings in a Roth IRA account, where it can grow tax-free and -- more important -- be withdrawn tax-free in the future.

What's a paltry $30 a month going to do for you? Growing tax-free for 30 years, with a 10% annual return, your investment account will be worth $66,941. Not bad for pocket change, but that's just the beginning.

Here are some other ideas for saving a few bucks here and there that can add up to big dollars over time. Trim your expenses to save even more. Lets look at a few monthly activities and expenses to see what trimming them down will equate to in Monthly Savings and Annual Savings:
- Take-out vs. dining out once a month $45 = $540/year
- Manicure less often $15 = $180/year
- Fewer trips to car wash $12 = $144/year
- Video rental vs. movie monthly $11 = $132/year
- Drink Regular coffee instead of cappuccino on weekdays $40 = $480/year

Total $123 per month = $1,476/year.

If you can knock this $123 out of your monthly budget, at 10% it will grow to $278,040 in 30 years. You've made a big contribution to your retirement with just a few small sacrifices. You may not be able to accomplish all of the savings listed above but try putting your own list together. Once you begin to analyze how you can save money we bet that you can come up with one that is even better!

Friday, October 15, 2010

What is Debt Collector Harassment?

Any consumer who owes money is protected against many of the intimidating and harassing techniques employed by creditors and collection agencies.

Debtors are protected from harassment by the Fair Debt Collection Practices Act (the FDCPA). This is a Federal law that applies throughout the United States. The purpose of the FDCPA is to protect the consumer’s privacy and his or her relationships with third parties such as employers, co-workers or even people living in their neighborhood.
Under the FDCPA a debt collector may not communicate with a debtor at an unusual or inconvenient place or time. This means that a debt collector cannot call a debtor late at night and any call between 9 PM and 8 AM is automatically presumed to be inconvenient.

Your workplace may be an inconvenient place, especially if you have a job that should not be interrupted. If you notify the debt collector in writing that your employer prohibits calls at work, the collector cannot call your workplace again. The Client Services Department of Debt Negotiation Services can provide you with the form required to make such a notification.
A debt collector cannot contact other people about you and tell them that you either owe money or that the collector is trying to collect money from you for a debt.

Many States have laws that enlarge the protection of the FDCPA. For example, Florida law prohibits a debt collector from making threats of force, threatening to contact a debtor’s employer unless the debtor gives specific written permission, disclosing to persons outside of the debtor’s family that the debtor is not credit worthy, using vulgar or abusive language, pretending to be an attorney, refusing to adequately identify himself when asked for identification, and making collect calls to the debtor.
If you believe that a debt collector has harassed you and may have violated the FDCPA or the law of your State, you have the right to complain to the Federal Trade Commission and your State’s Attorney General; as well as to bring a lawsuit for damages. The Client Services Department can provide you with a reference to your State law and the addresses of the Federal Trade Commission and your State Attorney General.

Sunday, September 26, 2010

New bank fees implemented - Have you been impacted?

Do you open all of your letters from the bank? Many people ignore those letters that say "Updates to your Agreements" because they don't always tell you what the changes are, forcing you to hunt through a 20 page small-type pamphlet to see what has been updated. Be careful, these latest updates just might hit your wallet harder than you know.

With the recent CARD act limiting some credit cardholders' fees, banks are quickly coming up with new charges to replace them. Balance transfer fees have increased, some banks including Bank of America have increased their minimum monthly deposit limits. Some will start charging high premiums for people who receive paper statements.

What should you do?

1. Check your mail carefully - Lenders and banks are required to disclose all changes before they take effect.

2. Call customer service - A representative will discuss any changes to your account. Don't be afraid to ask if there are any promotions that you are entitled to such as lower interest rates and no-fee, low interest balance transfers (just be careful that the length of the transfer will give you enough time to pay off the balance).

3. Keep a record of your fees and rates - Put together a quick-reference sheet that contains your balances, interest rates, overdraft penalty fees, and any other fees associated with your accounts.

4. Be vigilant - Stay on top of your finances. In the long-run, it will save you both time and money!

Friday, April 2, 2010

Never ignore lawsuits - Your paycheck is at risk!

The Boston Globe published an article entitled Moves to Garnish Pay on Rise Nationwide - In it are stories of people who are sued by their Creditors / Collectors and do not take the time to defend themselves. Moral of the story is to be sure you are properly equipped to defend yourself if you are sued. Often, simply showing up in court will force a debt collector to drop its case because they frequently do not have the documentation necessary to back up their claim. They simply hope that the people they file suit against never show up and will automatically have a judgement placed against them.

For more information on how you can protect yourself, and how to get yourself out of debt and avoid these situations, contact us at 877-DEBT-DNS (877-332-8367)

Robert M. Sriberg
Debt Negotiation Services

Monday, March 8, 2010

Better Business Bureau Removes Ratings For All Debt Settlement Companies Without Notification

As of Friday afternoon March 5th, the Better Business Bureau has switched the ratings of all companies listed as Debt Settlement/Negotiation to an "NR" status (No Rating) and has temporarily suspended accreditation for everyone in that category. Below is the explanation we received by our local BBB contact when we inquired about this action:

Thank you for your recent submission of the requested documents regarding BBB criteria for companies offering debt settlement. Our BBB has discontinued the evaluations of these criteria in lieu of new standards soon to be issued by the FTC. Any company in our database that has submitted the criteria and offers only debt settlement will be issued an NR (no rating) pending the release of the FTC standards. If you are an Accredited Business, your accreditation has been removed until the FTC release. You can be reconsidered for accreditation at that time.

On behalf of legitimate Debt Settlement companies around the country, we are extremely disappointed in the BBB's handling of this situation and have appealed that they reconsider their thoughtless actions. In the meantime, DNS continues to operate at the same level of quality and customer care that we have been for over a decade.



Robert Sriberg
Debt Negotiation Services

Saturday, February 20, 2010

New Credit Card Laws In Effect Soon - Beware of Traps!

Refer to the excellent article at http://money.cnn.com/2010/02/17/news/companies/credit_card_rules/?hpt=P1 to learn about the new CARD laws coming into effect as well as potential traps.

Highlights:

1. Beware of new fees. Read your upcoming letters from your credit card issuers carefully so you understand the new fee structures.

2. Harder to get cards and higher limits. THis is not necessarily a bad thing since higher limits are what often can get people into trouble. Credit scores will become more important, so pay careful attention to yours! There are free sites like http://www.creditkarma.com that show you approximate scores and where you stand among other cardholders.

3. Rates likely to go higher. Good luck finding the 7.9% fixed rates. Virtually all cards are going to variable rates and average rates are pushing 12-13%.

This is a great time to become less dependent on your cards if possible. Small changes to your spending habits can lead to big saving over the long-run!

Pete Saiger
Debt Negotiation Services