Archive for August, 2013

Debt collection complaints rise

Posted by Joel pate in Credit Repair. Tagged: , , , , , , , , ,

Published: Aug. 20, 2012 at 1:28 PM | UPI.com

WASHINGTON, Aug. 20 (UPI) — The U.S. Federal Trade Commission said complaints about aggressive debt collectors had jumped 73 percent since 2008, a symptom of a sluggish economy.

“We’ve seen a high level of complaints, and I think some of it is collectors realizing in hard times they may have to press that much harder to get someone to pay,” the agency’s chief debt collection lawyer Tom Pahl said.

“And a lot of them are pressing,” he said.

The agency handled 180,928 complaints about debt collection agencies in 2011, making it the No. 1 industry it terms of complaints filed, the Los Angeles Times reported Monday.

Roughly half of the complaints concern abusive phone calls. But complaints also involve legal tactics undertaken by debt collectors.

Many of those complains involve debt collection agencies not checking facts on cases they pursue.

“These folks are very aggressive,” said California state Sen. Jose Luis Correa, D-Santa Ana, who found his wages garnisheed over a debt of $4,329 allegedly owed to Sears.

Correa contends that the debt collection agency had targeted the wrong man. Furthermore, he says he was never served court papers concerning any lawsuit filed against him. The court, however, ruled in favor of the debt collection company out of default, which it is allowed to do if a defendant does not show up for the trial.

“I always pay my bills on time. Then to have somebody garnish my wages, I thought was pretty astounding,” said Correa, who had the garnishment stopped and also found the debt belonged to a different Luis Correa.

In another incident, Katie Brown of Piqua, Ohio, got a phone call from a man who said he was from a legal aid service she had called to get help regarding harassing phone calls.

But after freely divulging personal information, the man said, “‘Now let me tell you who I am,’” she said. He then revealed that he was the debt collector holding her debt.

She is suing the International Asset Group Inc. of Amherst, N.Y., accusing them of false representation and debt collection harassment.

PS: Join our weekly industry webinar series as we discuss the best practices to grow and increase the profit of your business. The Jump Start Business Building webinar is held each Thursday at 3 PM CST, so register now: https://www3.gotomeeting.com/register/249243630

PS: Many CROs have taken advantage of Score’s FDCPA department to earn up to an extra $150 per client as a lead referral source. To find out more, click here: http://www.scoreinc.com/fdcpa.php

It’s All About Relationships

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Do you embrace the concept of meeting real estate agents one on one? I hope so.

Over 70% of the homebuyers that are referred to a particular loan originator use that loan originator to obtain their loan.

That means that you must develop referral partners in the real estate industry, along with other referral partners of course, that control the selection of the originator on their files 70% of the time

If you don’t do that, you must develop another systematic approach (you’ll have to read about that from someone else). My expertise is in this space: Developing relationships with real estate agents and small builders is what I know and thus what I write about.

I can tell you this: It’s all about relationships. You must care about people in order for them to care about you. You must do an excellent job and deliver on time to nurture the relationship. You must develop the ability to have a reciprocal relationship so that you can send a few buyers their way from time to time also.

In today’s environment, besides working at the right company and knowing your products cold, you must become an expert in credit restoration or partner with a company that can help you with that service.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

Execution—The Key to Unlock Your Success

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Execution is the key to your success. Without the systematic rigorous process of tenaciously following through, while ensuring accountability, your business and personal life will be less rewarding than it could be.

Of course you need to plan, and you need to prepare. Many articles have been written on that subject. But without execution nothing happens. Without continuous execution, not enough continues to happen.

On a daily basis, I speak with mortgage companies and credit repair companies from all over the country. If I had a nickel for every time that I have heard “I’m about to do (you name it),” I would have a lot of nickels.

Every day I see business owners stuck in what I have deemed to be “work avoidance behavior.” Now these are good folks. Smart, well-educated but none the less stuck in some type of rut.

So if you are stuck in this type of rut, how to you break free?

Determine just like Microsoft has:

  • Good is good enough; there is always a 2.0 that you can roll out;
  • Make your list today but tackle first the one thing that you are avoiding;
  • Yes that’s right; don’t do everything else to “get it out of the way;”
  • Execute on the one thing that you know you need to do-do it now;
  • You will only change your behavior when you change it;

Getting ready to get ready is another way of saying work avoidance behavior. It’s time to execute your plan, roll out your website, purchase those online key words, schedule presentation meetings, etc. Do it today, you will be glad you did.

To your success

Joel

Joel S. Pate is a 28-year veteran of the real estate, mortgage and credit industries and has founded many successful ventures. He lives in Mobile Alabama with his wife Mitzi of 28 years, two daughters and their family. Joel and Mitzi are proud grandparents.  You can reach Joel at joel.pate@scoreinc.com. You can join Joel for his weekly Jump Start Training each Thursday at 3 PM CST:http://scoreinc.com/webinar/registration.html.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

The Profile of The Credit Repair Customer: Part 5

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Previously discussed:
COMPLIANCE CONVERSATION
REFUNDS
EXPECTATIONS
AUTOMATIC DISQUALIFICATIONS

This week:
CONSUMERS DO NOT WANT CREDIT REPAIR
This is the right time to understand that very few consumers want credit repair. Most credit repair customers want to purchase something and because of their past credit history they are not able to qualify. Thus, if you provide a service, even a great service, and are able to cause the Credit Reporting Agencies remove many, even all, of the incorrect and unverifiable items, because the accounts are not verified by the credit bureaus or data furnishers, the presence of even one recent 30 day late could disqualify most applicants from many loan types.If you have violated the principles of this document and have taken on the wrong customer, you will find, in too many cases, that this denial will result in the consumer blaming you for not delivering the “Service” regardless of the fact that you can demonstrate deletions or corrections. Why? People with bad credit seem to want to blame someone and in this case it will be you. The next step of course is a complaint to a regulator or the BBB. Remember the cost of responding to a regulator will far outweigh the income from ANY customer.A regulator’s job is to find fault with your business. Since even the best run organization has a flaw on some days, it is best to diminish the chance that it will be the day that the regulator shops you.

The moral of the story is to tell a customer under current financial strain that now is not the time to repair their credit. Keep this consumer on a drip campaign and approach in six months.

Part 6 coming next week.

PS: Join our weekly industry webinar series as we discuss the best practices to grow and increase the profit of your business. The Jump Start Business Building webinar is held each Thursday at 3 PM CST, so register now: https://www3.gotomeeting.com/register/249243630

America Is Strengthened Through Successful Homeownership

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

The desire to responsibly and successfully own a home is growing again within the hearts of families. And that’s good news not only for the continued rebirth of America’s housing economy but it is also great news for the fabric of the American Family and society.

I believe that America is strengthened through successful homeownership.

The days of subprime loans are gone and I hope forever this time. Low doc loans have their place with 20% to 50% down products for business owners and retirees for example-borrowers with lots of assets, years of experience, and great credit scores. It’s pretty ridiculous to require overreaching requirements to finance a 50% loan to a guy with a million dollars in the bank. But for the average consumer, they were and always will be a bad idea.

There are only two proven drivers to lowering foreclosures:

  • Homebuyer education
  • 20% down payment

I guess that proves that political call for “skin in the game?” But it doesn’t. Why? The only time a borrower will put down 20% is when they have additional assets that will serve as a bridge over the troubled waters of job loss or other financial setbacks. But at the same time, it’s pretty hard to think that allowing a FHA borrower to walk into closing with his last two pennies he has to his name and walk out a homeowner is an acceptable idea. That policy may need to be reconsidered as well.

Job loss continues to be the major driver of default in the housing market along with its twins: divorce and a major medical event.

Job loss alone is responsible for 70% of the defaults according to job loss protection insurance company Mortgage Payment Protection Inc. That will never change. That’s why every mortgage loan should include a job loss protection insurance policy especially for first time homebuyers or to home buyers with very few assets to fall back on when they have to weather the inevitable financial storm.

Another factor that continues to plague the homebuyer, and for that matter the marketplace, are the systemic problems with the credit report and thus credit score markets. I stop short of blaming it on the credit reporting agencies because it is simply not that simple. Sure, they have problems as demonstrated again recently by the jury verdict in Julie Miller vs. Equifax Information Systems, LLC, but the data furnisher’s have their own problems.

The Consumer Finance Protection Bureau now regulates both the CRA’s and the larger data furnishers. The verdict is out on this agency, but its definitely an initial win for the consumer; that is until the CFPB goes to far, as they already have in some cases, and actually make it more expensive and difficult for lenders to provide low cost loans to consumers.

From my perspective, if a consumers credit report is 100% accurate, he deserves the credit and credit score that he or she has. Period. But, I’ve never seen a completely accurate credit report.

As evidenced by every tri-merge mortgage credit report provider’s rush to market and profit from rapid rescoring products, errors are apparently rampant on consumers credit report and the CRA’s have developed yet another way to profit from that fact. Perhaps the system should be reversed.  If I find an error on my credit report, it should cost the CRA and data furnisher $75 per bureau. Perhaps the fine could go towards a job loss protection program for all homebuyers?

With only a small fraction of U.S. consumers checking their credit annually, errors are bound to exist and delays and denials occur when the consumer needs his credit to purchase a home, car, insurance, or for a job. So the consumer needs to get their act together too.

As a recent study by the Federal Trade Commission proves “the number of errors are eye opening,” according to Howard Shelanski, director of the FTC’s Bureau of Economics. He went on to say, “The results of this first of its kind study make it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk.”

So, who’s to blame? Wrong question. That question reminds me of the mess we have in Congress and the White House these days. It’s everyone’s fault and more importantly its everyone’s problem. But let’s concentrate on the future and to solving the problem. To do that, will require that we all work together.

At the end of the day, it is the consumer that must first take appropriate action to manage his financial house. Starting with education and professional advice, the consumer can obtain the information that he needs to become credit worthy and to verify the information on his credit report is indeed accurate. Since it is always the individual persons problem, it is ultimately the individual consumers job one to resolve it.

To do that, the industry participants must stop presuming that the consumer is guilty until proven innocent. And should stop placing barriers in the way of the consumer’s attempt to correct errors on their credit report. There must be a reconciliation among all industry participants, including the sullied credit repair industry, to find effective and economical ways to work together to obtain the often overlooked goal: a 100% accurate consumer credit report that is factual, accurate, and timely. Nothing else is OK with me, or legal.

In the coming articles, it will be my pleasure to present to you documented and substantiated evidence that errors, that are ultimately corrected, are rampant, causing denials of mortgage loans. We will also document the efforts taken by consumers and their paid professionals to obtain what the federal law has provided to them as their expected legal right: The right to have a 100% accurate credit report and thus score. Each of these documented initial denials resulted in a home closing.

Remember, if America is indeed strengthened through successful homeownership, it is everyone’s job to establish and maintain a clear path forward to that end.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution
For more details please visit Scoreinc.com