Tag Archives: Help

Overhaul of Credit Reporting Act Proposed to Help Consumers, Says Strategic Consulting Services

New York, NY (PRWEB) October 06, 2014

Strategic Consulting Services (http://www.strategiccs.org), a New York firm providing financial consulting for consumers, announces a new bill in Congress could make a major impact on credit scores and lending calculations in the United States. The “Fair Credit Reporting Improvement Act of 2014” proposes changes aim to dramatically improve consumer credit scores, reduce interest rate payments, and provide financing to borrowers who would otherwise be denied. While it is far from being passed into law, the new Act reflects a groundswell of support for reform to financial policies that impact consumers.

The Chair of the House Financial Services Committee, Rep. Maxine Waters (D-Calif.), introduced the Fair Credit Reporting Improvement Act of 2014 with sweeping changes to how consumers’ credit reports are calculated, according to the Sept. 10 edition of the Wall Street Journal. An update to the 44-year-old Fair Credit Reporting Act (FCRA), the proposals would shorten the amount of time that black marks remain on credit reports, streamline how inquiries are treated and remove adverse debt from a report within 45 days of being paid or settled. The last amendment to the law was a decade ago, providing consumers the right to one free credit report annually and directing mortgage lenders to disclose credit scores to borrowers.

The proposed Act represents the largest changes to FCRA since it was passed in 1970. According to the CFPB Law Blog and other media reports, consumers would benefit from changes that include:

Late payments or adverse items would have to be removed from consumer credit reports after four years instead of seven years.
Collections and paid/released tax liens would be removed after four years instead of after seven years.
Bankruptcies would be removed seven years instead of after 10 years.
Mortgage, auto or student loan inquires that occur within 120 days would be treated as one inquiry.
Adverse real estate loans (foreclosure, short sale, or other derogatory items) would be removed if the FTC or CFPB deem the loan involved deceptive lending practices.
Adverse student loan information would be removed if the debtor makes nine consecutive payments on time.
Fannie Mae and Freddie Mac would be required to regularly validate that their scoring models are statistically sound and investigate “alternative or additional” credit score products.
Credit scores would be defined as a score to arrange loans and not for insurance, utilities or tenant scoring scores.
Credit bureaus would be required to maintain sufficient staff for investigations with the ability to directly correct errors identified in credit reports, following set policies with full transparency for consumers.

The proposed Act comes in the wake of reports from the CFPB advocating reform of credit scoring, lending practices and debt collection. Responding in August, Fair Isaac Corp. announced its FICO Score would reduce the impact of settled debt and treat medical debt differently than other forms of debt. The changes proposed by Rep. Waters would make FICO’s change federal law and have a dramatic impact for borrowers with credit problems. Critics may argue the changes are too sweeping, reducing the level of insight that lenders need to adequately underwrite loans and imposing unnecessary burdens on lenders and credit bureaus.

“The proposed Fair Credit Reporting Improvement Act of 2014 reflects an urgency to reform the financial system and lending processes in America. Most Americans over the last decade have experienced financial hardships, struggled to pay off credit cards, or lost sleep over their mortgages while banks have seen growing profits. While the Act could be divisive in Congress, it does provide needed reform and help to consumers in a period when banks have tightened lending, seen record profits, and foreclosed record numbers of homes. This Act would improve the average American’s credit score, while keeping safeguards in place for lenders, and carefully extend credit to those who would have been denied otherwise,” says Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. ”Anyone who is frustrated with their credit score or the lending process should contact their Member of Congress to have their voice heard. The proposed Act represents a big step in helping consumers, but it needs public support to pass Congress without being dramatically watered down.”

About Strategic Consulting Services

Strategic Consulting Services is a financial services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit http://www.strategiccs.org.

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National Debt Relief Applauds The Move To Help Military Personnel With High Interest Loans

Los Angeles-Long Beach, CA (PRWEB) October 07, 2014

The US military is the country’s line of defense from threats overseas and even in-country. They serve as a deterrent to global threats and are able to help provide military assistance and support to allies and countries that needs help. And this institution is made up of brave and courageous American citizens.

This brave group of people sacrifice their lives just to be able to serve and protect the country. They spend months away from the people they love just to be able to serve. And one thing the government is doing is looking after these service men and women by putting safeguards in their financial borrowings.

The WSJ.com is reporting that the present administration is putting in some legwork in order to protect the military personnel from unfair financial practices especially with the way interest rates are being assessed. There are scrupulous lenders where they jack up interest rates as high as 183% as what happened to a sailor who took out a $ 1,500 loan.

This move aims to put more teeth to the Military Lending Act passed in Congress in 2006. This was meant to closely monitor and safeguard the military from lenders putting in high interest loans and are actually putting up shops in the vicinity of military bases. The main objective of this new development is to cap the interest at 36% to more types of financial instruments offered to the military personnel.

National Debt Relief agrees that that there are some lenders who are able to find a loophole in the current set up meant to protect service men and women in getting mixed up with unmanageable loans. There are those offers repayment at an extended time or gives out amounts about $ 2,000 – both of which are not covered under the prevailing Military Lending Act.

If you are in need of a consultation on how to best approach your debts, you can call National Debt Relief at 888-703-4948 and talk to a debt counselor. You can also visit http://www.nationaldebtrelief.com for more details.

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Rick Otton Offers A New Strategy To Help Residents Looking To Sell Or Rent Their Properties When They Retire

(PRWEB) September 24, 2014

New research reveals that 16 per cent of adults are planning either to sell or rent their real estate as a means to fund their retirement, the Mortgage Introducer reported on 23 September 2014.

In response to this statistic, Rick Otton, a respected property coach, explains that if people are looking to invest in property now to create cash flow for their their retirement, a practical strategy is to use seller finance.

“According to the report, the rate is an all-time high in comparison to the 7 per cent recorded last 2009. The study found that people living in the West Midlands are the most reliant on their property for their retirement fund,” he said.

“People today are finally realising that they can’t just rely on their pensions to pay their living expenses when they retire. For many of them, investing in property is the answer. The goal is to save money to own a home now. When retirement comes and the kids have moved out, they can downsize and have the option to either sell their property to cash in or have it rented for passive income.

However, with today’s soaring property prices, not everyone is able to afford the deposit or qualify for a new bank loan. Moreover, if you do get financing and are able to buy a houses, there’s no guarantee that by the time you retire, property values will keep on rising. What if the market suddenly turns and your property ends up in negative equity? You only need to look back to 2008 to see the effects of an unexpected downturn,” Mr. Otton mentioned.

“In order to side-step these risks, it’s very important to enter the property market without overcommitting to expensive mortgages. In addition, it’ very important to have an exit strategy to ensure cash flow. Seller finance is a practical strategy that can help you accomplish both,” he added.

Mr. Otton then said in a recent interview that flexibility is the biggest advantage of seller finance because it allows parties to adjust the terms depending on their specific needs.

“Suppose you want to invest in a property but don’t quite have the money to afford the deposit. Rather than apply for a new bank loan, you may negotiate to assume the existing loan and then pay the remaining equity in increments. In that way, you minimise upfront costs, and hence, minimise your risk coming in. When the time comes to sell, using flexible seller finance terms can attract more buyers because of how convenient it is. In addition, the set up can give you positive cash flow,” Mr. Otton explained.

“Because of the flexibility of seller finance, your options as an investor are limitless. Many of my students have used variations of this strategy to build a property portfolio efficiently and then create positive cash flow from different properties. Better still, they are able to create their cash flow now, not seven, 10 or 20 years from now,” he emphasised.

Visit http://www.rickotton.co.uk/ today to get more information about seller finance strategies and how these strategies can be applied in changing market conditions.

About Rick Otton

Rick Otton is a property investment professional who, over the last 23 years, has introduced innovative real estate strategies to the UK, Australian and the United States. His creative ‘low-risk, high-reward’ approach to buying and selling houses is exemplified in his own business, We Buy Houses.

This year marks the 10 year anniversary of Mr Otton introducing his strategies to the UK, and the 5 year anniversary of his innovative ‘Buy A House For A Pound’ process – one that attempted to be emulated by others. His constant process of strategy refinement, and adapting to the ever-changing real estate market, continues to place him at the forefront of property investment education.

In 2012 Rick Otton published his Australian book ‘How To Buy A House For A Dollar’ which was named in the list of Top 10 Most Popular Finance Titles for 2013. A UK version is on the drawing board for publication in 2014.

Mr Otton freely shares insights into his non-bank-loan strategies that have allowed everyday UK men and women to beat the rental cycle and have their own homes. He coaches others on how to build profitable businesses by facilitating transactions that focus on the needs of potential buyers and motivated sellers.

More Loan Rates Press Releases

Rick Otton Offers A New Way To Help Investors As The Property Market is Projected To Rise In Scotland

(PRWEB) September 23, 2014 Zoopla expects Scotland’s “No” vote to have an impact and further increase property prices in the area, The Move Channel reported on 19 September 2014. In light of these reports projecting increased property values, Rick Otton, a highly respected property coach and best-selling author, shares with UK residents how theyContinue Reading

Rick Otton Shares How Seller Finance Can Help Investors Build Their Portfolio When Interest Rates Rise

(PRWEB) September 15, 2014 A new survey conducted by Equifax confirmed that over half of UK homeowners believe that they would face financial struggles once interest rates increase, Moneyfacts.co.uk reported on 4 September 2014. In light of this property news, Rick Otton, a highly respected property coach, discusses how property investors can better copeContinue Reading

FICO Credit Score Change Will Help Average Americans, Says Strategic Consulting Services

New York (PRWEB) September 02, 2014 Strategic Consulting Services (http://www.strategiccs.org), a New York firm providing client-focused financial consulting for consumers, announces that consumers should soon feel financial help with a change in how credit scores are calculated. The average credit score has been declining since 2011, often due to growing health care debt, and theContinue Reading

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