Harassing phone calls from creditors is a concern for many individuals facing unmanageable debt. The debt collection industry is big business. In fact, the Association of Credit and Collection Professionals (ACA) reported that roughly 6,500 collection agencies in the U.S. recovered more than $39 billion in debt in 2005 alone. Therefore it’s no wonder that these agencies often use aggressive tactics to get their share of the pie.

Strict federal and state regulations regarding debt collection practices, however, offer consumers protection from harassing collectors and have severe consequences for companies operating in an improper manner. By educating yourself on a few of the regulations binding these creditors and collectors, you can put an end to the harassment.

The Federal Trade Commission’s Fair Debt Collection Practices Act applies to third-party collection (not first party creditors) and was designed to protect consumers from devious and aggressive collection practices. Specifically, the Act states that collectors: 

1. May only contact you between 8 a.m. and 9 p.m.
2. Cannot use cell phone numbers for collection calls
3. May not contact you at work if you tell them your employer disapproves
4. May only contact you once per day
5. Must cease and desist future contact once you notify them in writing you do not want anymore calls (they may, however, send you one final notice regarding the next course of action)
6. Additionally, many collection agencies have been known to make subtle (or not so subtle) threats regarding garnishment of wages or even imprisonment for failure to pay debts. Section 807 of the Fair Debt Collection Practices Act “prohibits falsely representing or implying to the consumer that nonpayment 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”.

What does this mean for you? It means that you have rights too. If you are receiving harassing calls, begin by telling the caller you believe they are harassing you and that you are aware of your rights under the Fair Debt Collection Practices Act. Next, send a formal letter to the collector saying that you are aware of the debt, are working to resolve it, and do not want to receive any additional calls (keeping in mind that the collector is allowed to send one final notice regarding their next course of action). If the harassment continues, notify the Federal Trade Commission or your state’s Attorney General’s office.

While debt settlement professionals cannot reduce harassing phone calls, many firms encourage their clients to refer all calls and contact to them for resolution. In some cases, the client is encouraged to send the collector a change of address and phone number listing their debt settlement professional’s contact information. These firms will also work with the collectors to come up with a solution to settle your debt and end the harassment for good.

Now that you have the knowledge you need to fight back, you can enjoy your dinner in peace and stop screening your calls — unless of course it’s your mother in-law…

The Situation

In the aftermath of a divorce, Andrew A. from Florida found himself buried under a mountain of debt. His ex-wife had decided not to pay a series of debts agreed upon in the divorce settlement that were tied to Andrew’s name. By the time Andrew realized what was happening, his credit score had fallen almost 200 points and he was struggling to get caught up.

The Solution

Andrew searched the internet for a solution to his growing debt problems, and decided to contact DMB Financial for a free consultation. Andrew’s personal debt counselor recommended a strategy that would fit within Andrew’s budget and leave him debt free in as little as 36 months.

The Result

DMB Financial quickly began to correct Andrew’s debt problems by initially settling his largest account and negotiating a favorable agreement with another. At the completion of his debt resolution program, Andrew had saved more than $14,000 representing 49 percent of his total debt.*

*Individual results may vary based on ability to save funds, amount of debt, willingness of creditors to negotiate, and the successful completion of all program terms. Program does not assume or pay any debts, nor provide legal or tax advice. Prudence should always be taken by consumers when reviewing contracts and disclosure materials. DMB’s services not available in all states.

DMB Financial, a leading provider of consumer debt resolution services, announces the selection of Booway Balhaajav as Chief Executive Officer. Mr. Balhaajav brings nearly 20 years of international diplomacy and business leadership experience to DMB Financial, and will lead the company’s efforts to become the premier client-focused debt resolution company in the United States.

Balhaajav comes to DMB Financial with 13 years of experience in business leadership, entrepreneurship, and financial analysis in the management consulting and financial services industries, and 6 years experience in international diplomacy, Mr. Balhaajav is uniquely qualified to assist DMB Financial in servicing their broad portfolio of debt resolution clients.

Prior to joining DMB Financial, Mr. Balhaajav served as the Founder and Managing Director of Triumph Partners, and Principal Consultant at Cayenne Consulting. He holds a Masters degree in Linguistics from Moscow State University as well as an MBA from Harvard Business School.

“I am thrilled to be joining DMB, particularly at this time, as the debt resolution industry is just beginning to take a defined shape.” says Mr. Balhaajav. “We have an opportunity to set new standards for the industry, and ethical debt settlement practices are greatly needed in today’s economic climate to maximize benefits for debt settlement clients.” 

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About DMB Financial

DMB Financial negotiates debt with credit card companies for significant savings to the consumer. They’ve saved 11,000 clients over $87 million in credit card debt and counting. DMB Financial is the industry champion of a “success fee” based business model, where the company only gains when and if it delivers real savings to the consumer.

View the Full Press Release here:

• File Attachment: DMB Names New CEO PR 052109.pdf (32 KB)

 

 

Odd to post an announcement of myself onto our corporate website, but it’s appropriate. I am thrilled to join this team, especially at this point in time. As one of only two major success fee based debt settlement companies in the industry, DMB Financial is poised to do great things over the next two years.

I’ve also been very fortunate in my first few weeks to engage directly with the New York Attorney General’s investigation into debt settlement companies. Having helped compile the DMB Financial performance statistics, I am incredibly proud of the very real savings percentages, graduation rates, and successes that DMB Financial has had in New York. This exercise really has been a blessing in disguise.

Please see the press release below or in the attached file:

• File Attachment: DMB New VP of Marketing PR 052109.pdf (32 KB)

 

 

A recent survey revealed that 70 percent of Americans consider themselves good to excellent at managing their money, yet only 25 percent scored above a “C” when it came to actually doing it.

The good news is that you CAN successfully manage your finances and it doesn’t’ t have to take a great deal of time, especially if you get into the habit of taking care of a few money matters on a regular basis. We hope that you’ll find the following suggestions helpful as you continue on your journey to a more financially secure and manageable life style.

Credit Cards

• To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates on other cards.
• You can avoid interest charges, which may be considerable, by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.
• Be advised that credit cards with rebates, cash back, travel awards, and other such perks may carry higher rates or fees.

Checking Accounts and Debit Cards

• You can save more than $100 a year in fees by selecting a free checking account or an account with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.
• See if you can get Free or Lower Cost Checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.

Life Insurance

• If you want life insurance protection only, and not a savings or investment product, buy a Term-Life insurance policy.
• If you want to buy a Whole-Life, Universal-Life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance premiums/costs.
• Check the National Association of Insurance Commissioners website (www.naic.org/cis ) or your local library for information on the financial soundness of insurance companies.

Auto Loans

• To save as much as several thousand dollars in finance charges, pay for your car in cash (if possible) or make a large down payment, which will help to shorten the term of the loan. A large down payment may also result in a lower interest rate.
• Make certain to get a rate quote (or pre-approved loan) from your bank or credit union before seeking dealer financing. You can realize significant savings in finance charges by shopping for the cheapest loan.
• Make certain to compare the dollar difference (monthly payments) between low-rate financing and a lower sale price. Remember that getting zero or low-rate financing from a dealer may prevent you from becoming eligible for the rebate.

Auto Insurance

• You can easily save several hundred dollars a year by purchasing auto insurance from a licensed, low-price insurer or independent agent. Call your state insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
• Consider raising your deductibles on collision and comprehensive coverage to at least $500. Or, if you have an older car, consider dropping this coverage altogether. This can save you hundreds of dollars on insurance premiums. Your agent or insurer can explain the pros and cons.
• If you do change policies or insurers/agents, make certain that your new policy is in effect before dropping your old one.

Prescription Drugs

• Since brand name drugs are usually much more expensive than their generic equivalents, ask your physician and pharmacist if a less expensive generic or an over the counter alternative is available.
• Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for extended periods, also consider calling mail-order pharmacies, which often charge lower prices. (Check your Yellow Pages or search the web for Mail Order Pharmacies)