By Caroline Salas Gage

(Updates with mortgage originations in sixth paragraph.)

Feb. 27 (Bloomberg) — Household debt in the U.S. declined 1.1 percent during the fourth quarter as real-estate borrowing fell, according to a Federal Reserve Bank of New York survey.

Consumer indebtedness shrank $126 billion from the end of September to $11.53 trillion on Dec. 31, according to a quarterly report on household debt and credit released today by the district bank. Mortgages and home-equity lines of credit declined a combined $146 billion, and total delinquency rates dropped to 9.8 percent of outstanding debt “in some stage of delinquency,” from 10 percent at the end of September.

“While we continue to see improvements in the delinquent balances and delinquency transition rates this quarter, there has been a noticeable decrease in the rate of improvement compared to 2009-2010,” Andrew Haughwout, vice president and economist at the New York Fed, said in a statement. “Overall, it appears that delinquency rates are stabilizing at levels that remain significantly higher than pre-crisis levels.”

Three straight months of faster job growth coupled with a stock market rally since late 2011 are helping make Americans more optimistic about an economic recovery that Fed Chairman Ben S. Bernanke said has been slowed by weakness in the housing market. Policy makers last month said their benchmark interest rate is likely to stay “exceptionally low” through at least late 2014 to help the recovery gain traction, extending an earlier date of mid-2013.

New Foreclosures

About 289,000 consumers showed new foreclosures on their credit reports in the fourth quarter, up 9.5 percent from the third quarter, the New York Fed’s survey showed. There were 425,000 new bankruptcies, 14.9 percent less than in the last three months of 2010.

Mortgage originations for 2011 amounted to $1.55 trillion, the lowest since 2000 and down 3.1 percent from 2010, according to the New York Fed report. Bernanke and the policy-setting Federal Open Market Committee are debating a new round of mortgage-bond purchases to help boost the housing market and the economy.

Non-real estate borrowing climbed $20 billion, or 0.8 percent, to $2.635 trillion, according to the New York Fed survey.

The New York Fed report is based on data compiled by the district bank’s Consumer Credit Panel, a “nationally representative random sample” from Equifax Inc. credit-report data, the statement said. The Fed’s quarterly flow of funds report includes household debt, along with debt measures for non-financial businesses, state and local governments and the federal government.

Confidence among U.S. consumers rose more than forecast in February, reaching a one-year high as Americans grew more upbeat about the outlook for the economy.

The Thomson Reuters/University of Michigan final index of consumer sentiment increased to 75.3 this month from 75 in January. The median estimate in a Bloomberg News survey called for 73, after a preliminary reading of 72.5.

–Editors: James Tyson, Kevin Costelloe

To contact the reporter on this story: Caroline Salas Gage in New York at csalas1@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

Federal Reserve data for August 2011 is out and shows that revolving credit decreased at an annual rate of 3.5%, and non revolving credit decreased at an annual rate of 5.25%.

http://www.federalreserve.gov/releases/g19/Current/

Debt Collectors can be ruthless. Read this article below, this is against the law. You have rights, view them here http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm 

By STEPHANIE HOOPS Scripps Howard News Service | 0 comments

The Federal Trade Commission has halted operations and frozen assets of a Southern California debt collection firm accused of threatening to kill pets, dig up deceased relatives, and a long list of other harassment complaints from across the country.

The business operated under a variety of names including Joseph, Steven and Associates and Specialized Debt Recovery.

According to the FTC, the business is accused of telling a woman who was unable to pay the balance due on her daughter’s funeral that they “were going to dig her up and hang her from a tree if she did not pay the debt,” and would take her dog and “eat him.”

An Iowa woman said she told the company they had the wrong person after repeated phone calls and was told if she didn’t send a check “they would fart in my face.”

In another instance, the FTC alleges the defendants contacted a mother with two special needs children and told her she should “sell her retarded children.”

In Van Nuys, the company operated as Commercial Investigations Inc.; Rumson, Bolling and Associates; Forensic Case Management Services Inc.; and Commercial Receivables Acquisition Inc.

The owner was David M. Hynes Jr., who ran it with his wife, Lorena Quiroz-Hynes; in-house attorney Randy Chang; and four other people, James Hynes, Kevin Medley, Heather True and Frank E. Lindstrom Jr.

The FTC called Lindstrom’s tactics particularly “devious.” They reported finding an email he sent that read: “Jesus paid his bills. Why don’t you? We have had this account for 4 months now. Not even $1. That is not what Jesus wants. That is why the Muslims are winning.”

Many of the employees working for the business were California Department of Corrections parolees. The defendants’ lawyer, Christopher Pitet, said they did a good thing by hiring them.

“My understanding is that they did it at the request of the state of California to help them find jobs so that they wouldn’t find their way back to the penal system,” he said.

Pitet said his clients deny the government’s allegations. The case is proceeding through the U.S. District Court in Los Angeles.

Pitet noted if employees did threaten things like digging up deceased relatives and eating pets it would have been unacceptable.

“If those specific things happened, they’re outrageous,” he said. “But if they did happen it was not the company’s policy.”

Former employee Edward Gonzales disagrees. He said employees were expected to do anything to secure funds, including using abusive and foul language.

“The leads on the floor left it up to you with suggestions on how to be forceful,” he said. “They loved confrontation because the longer you kept the debtor on the phone, the more likely they will offer some sort of monetary settlement to get you off the phone.”

The FTC halted the business’ operations on Sept. 30 and froze more than $800,000 held at bank accounts tied to the operation, after charging that its practices violated the Federal Trade Commission Act and Fair Debt Collection Practices Act.

A permanent receiver has been appointed to run the operation while the FTC moves forward with a federal case. After the FTC took over, the receiver wrote in his report that prohibited practices are ingrained in the defendants’ daily operations. Getting the business to comply with necessary changes “would require a sea change in the culture and all operational aspects of the business.”

What does Google give us as the top debt consolidation result? Dave Ramsey. Interesting article written by Dave on the misconception of Debt Consolidation. Here is an exert “Debt consolidation is nothing more than a “con” because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it – you just moved it! You can’t borrow your way out of debt. You can’t get out of a hole by digging out the bottom. True debt help is not quick or easy.”

We tend to agree.  While everyone’s situation is unique, we feel Debt Settlement is a great option for some and worth exploring.  Learn about Debt Settlement by clicking here

http://www.daveramsey.com/article/the-truth-about-debt-consolidation/

ClearOne Advantage is now on Facebook and Twitter. We realize that social media is a great medium to stay in contact with our clients, business partners and vendors. You can follow us on Facebook by clicking here

For more information on ClearOne’s Debt Settlement program click here

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Here is a quick look at some top settlements we received this month for customers enrolled in last 6 months

These are completed negotiations.  Negotiations from the same time period that have not been completed are not factored into the %.   We would like to stress that these settlements are being achieved by the company, and not inclusive of all consumers or predictive results for any specific consumer.  Fees are not included on this and would increase total payback by 25%.

This program is not available in all states, individual results may vary and are dependent on successful completion of program and ability to save funds. ClearOne Advantage does not assume or pay any debt, nor does it provide legal advice or offer credit repair. Read and understand the contract terms before enrolling.

There are NO upfront fees and you do NOT pay our fee until we get you a settlement.

Interesting article by Jack Gordon - WebRecon LLC- September 29, 2011

Consumer activists and attorneys hold a special place in their litigious hearts for credit card debt buyers and collectors, especially when the paper is older. As we all know, delinquent credit card paper is frequently bundled and sold off for a fraction of its original value. Many consumer activists reason that if the originating bank is not capable of collecting the debt themselves, then they certainly feel no particular obligation to pay a subsequent entity with whom they have no direct agreement — especially when the buyer paid pennies on the dollar for it.

Of course, we all know this tortured logic is easily refuted. But that doesn’t make the job of collecting old credit card paper any easier. Consumer activists have their own term of endearment for companies who buy credit card paper – “junk debt buyers” or JDBs. Many consumers like to compare themselves to the investors burned by Wall Street’s collapse. Of course, the comparison is not particularly adept, as the investors were the ones who paid and got burned, where credit card debtors avoided payment and, in many cases, are getting away with it.Beyond accusations of illegitimacy, many card paper buyers and collectors find themselves targeted by consumers and attorneys for filing a large number of lawsuits to collect judgments, and ultimately money. As if this wasn’t the whole point of debt collection! But I digress. If you spend any time on the consumer boards, you would see scores of consumers in a panic because they just got served and need advice on how to acquire that magic bullet that might extricate them from this pending lawsuit.

Of course, most never find it, and many who know they’re on the wrong end of the lawsuit don’t even bother showing up to defend themselves. But if there is a magic bullet for the few who choose to pursue one, it is found by filing their own lawsuit against the buyer/collector on FDCPA grounds. And here is an interesting twist: when suing the buyer/collector, many consumers are naming the original creditor in the suit as well.

A quick analysis of court data over the last twelve months shows that major card-issuing banks are being dragged into lawsuits filed against debt buyers (who currently own and work the paper) in as many as 30% of all lawsuits filed against the buyers. It is likely a tactic to increase pressure on the buyer/collector to settle quickly, and it probably works quite well. Unfortunately, consumer success in FDCPA litigation usually does a good job of breeding more lawsuits for the future.

It could also be argued this is a form of harassment against the collector, done for the purpose of humiliating or otherwise defaming the reputation of the collector in front of their major suppliers. Of course, I am not aware of any statutory protection granted to collectors against abusive or oppressive consumers.

We all know the number of lawsuits against debt buyers and collectors is rising along with suits against the entire industry. Another quick analysis of court data shows a surprising 55% or so increase in FDCPA lawsuits against major debt buyers in the last twelve months – a considerably more aggressive spike than the industry’s aggregated increase of about 11% over the same time period.

Listening to advocates for the recent ACA proposal to expunge asset buyers (which was rejected), this disparity is at the top of the list of their complaints. Of course, the dramatic increase in litigation against debt buyers is not all their fault. Blame prominent consumer attorneys for much of it – they have discovered great traction in demonizing the debt buying industry.  And like hungry lions, many have targeted what they perceive to be the most vulnerable members of the debt collection industry “herd” – the credit card debt buyers – and have been striking with increasingly annoying regularity.

Credit card paper buyers and collectors are out there fighting the good fight every day, despite attracting a higher level of consumer vitriol, more questions about their legitimacy, a much higher rate of FDCPA litigation and even threats of alienation from their own industry associations.

If you know any people who buy or collect credit card paper, give them a hug. They could probably really use it. Just try not to hurt yourself on any of the arrows sticking out of their backs. And remember, if we allow those arrows to do the job they were intended to do, your area of collections may just be the next target.

Jack Gordon is CEO of WebRecon LLC, a firm that tracks consumer litigation against collection agencies, debt buyers, law firms and creditors. WebRecon data helps those industries prevent predictable lawsuits from repeat litigants. Prior to WebRecon, Gordon ran a Michigan collection agency and a technology-oriented marketing firm.

http://www.insidearm.com/opinion/credit-card-collectors-on-the-front-lines-of-consumer-litigation/

Are you going?

AFCC Debt Resolution Leadership Conference coming up

http://www.2011debtresolution.com/

Read about our code of conduct here

New Federal Trade Commission (FTC) rules regulating the debt relief industry took effect one year ago – changes that included the well-known advance-fee ban, prohibiting debt relief companies from collecting any fees until after a result has been negotiated for and accepted by a customer. Because of these FTC rules, the entire industry has changed – and continues to evolve – dramatically. In fact, combined with an uncertain economy, fears of another recession, and rising consumer debt, the industry is experiencing the most rapidly changing business environment in its short history.

http://www.insidearm.com/daily/credit-card-accounts-receivable/credit-card-receivables/the-changing-debt-relief-industry-one-year-later/

We named our company ClearOne Advantage because we believe in giving our clients a superior advantage when taking on credit card debt. Finding the best way to get out of debt can be an overwhelming experience. We strive to help our clients over come those obstacles.

Advantage is defined as “Any state, circumstance, opportunity, or means specially favorable to success, interest, or any desired end”.

So what is our Advantage?  Above all else, we offer our clients the absolute best opportunity to successfully manage this debt process.  ClearOne is on the cutting edge in Technology, Negotiation systems and Negotiation strategy to help resolve our clients’ debt issues.   We have over 40 years of combined experience in the financial services industry, creating business systems for over 20 companies.  ClearOne has been getting people out of debt since 2007 and we have have successfully negotiated millions in credit card debt for thousands of clients.  We talk to them every day and understand their financial situation.  The bottom line is we know our customers, we know what they are going through and we know how to be successful in conquering their Debt.

Through our vast experience, industry leading concepts and strategies, ClearOne gives our customers the best opportunity for success.

Advantage:  YOU!

Call us today if you have any comments or questions  888-785-5376 or go here to find out more www.ClearOneAdvantage.com/apply