Priority Pay- A new program!

The Priority Pay program is a brand new addition to the many other services offered at RethinkingDebt. This program is available to clients who, due to financial restrictions, do not qualify for a traditional debt management program. At your appointment with RethinkingDebt, you will speak with a certified credit advisor and create an in depth budget based on income, living expenses, creditors, and amounts owed to each creditor in order to see your financial situation as a whole. This will allow the advisor to determine the most beneficial way to pay off outstanding debt. Priority Pay allows our clients to start debt repayment while still maintaining their everyday living expenses. Our staff understands each individual has a unique financial situation, and we try to assist each client in determining the best option based upon their own individual needs. Unlike the debt management program, when on Priority Pay, there is not a minimum payment requirement for each creditor. Once a creditor is paid in full, the funds can be reassigned to another creditor with an outstanding balance until all debts are paid in full. There is no time restriction for paying off the debt. This program simply allows you to start the process to obtaining financial health by paying one, two, or a few accounts at a time without disrupting your monthly budget. Our certified advisors would be glad to schedule an appointment in person or over the phone to review your current debt situation. Call us!

It's been a big topic in the news this year. The amount of student loan debt has surpassed credit card debt in the United States. As the cost of higher education continues to rise, so will student loan debt

 RethinkingDebt has developed a new program to help students and graduates with their debt. In the past, we have dealt mostly with unsecured debt, not including student loan debt. More and more people come to us each year asking for help with their student loan debt. RethinkingDebt decided that it was time to develop a program to help these consumers."

 Take into consideration the following facts and you will understand how great and wide reaching the need for this program is.

• Student Loan debt has surpassed the $1 trillion mark as estimated by the Consumer Financial Protection Bureau.
• Two-thirdsof the class of 2010 graduated with student loan debt.
• The average student has$25,250in student loan debt when they graduate.
• One in three graduatesindicates they are struggling with repayment of the student loans.
• Student Loan debt is not dischargeable in bankruptcy.

A student loan session with a certified credit advisor will run up to 2 hours and consist of locating all loans, creating a budget, reviewing eligibility for consolidation and seeing which repayment option will work best for the consumer. There is a $60 charge for the student loan counseling.

 Contact RethinkingDebt for an appointment to evaluate your student loan debt at 888-724-2227 or visit our websites for more information- www.rethinkingdebt.org.

Independant Foreclosure Review

"Were you in Foreclosure in 2009 or 2010?"
Have you been involved in a foreclosure? Even if your foreclosure has already been completed, there may be an opportunity to have your loan file reviewed. If the review finds errors in how your foreclosure was handled, you may be eligible to receive compensation.

Watch the following video for more information.

http://www.youtube.com/watch?v=Cd3skMm6NxU

 Owning your own home is one life's major milestones for most people. Unfortunately the upfront costs of purchasing your first home can deter many people from ever reaching that milestone.  It can be hard to save enough money for a down payment, closing costs, inspection, attorney's fees, and the list goes on and on. Luckily for you Consumer Credit Counseling Service of Rochester in cooperation with First Niagara Bank and HSBC offers a program that can help relieve some of that stress and anxiety. CCCS of Rochester's First Home Club is a program designed to help people looking to purchase their first home and people who haven't owned their own home in the past 3 years. Participants in the First Home Club are eligible for a $7,500 grant to be used towards a down payment and closing costs on their new home after completing a savings and education program. How the First Home Club works is very simple, participants agree to save their own money monthly on a plan ranging from 10 months to 24 months, during those months they attend 2 free workshops hosted by CCCS of Rochester, and at the end of the agreed time frame they get a $7,500 grant to use towards the down payment or closing costs on their new home.

The savings plan consists of committing to save at least $79.00 a month for 24 months, or if you can save more money a month the number of months you need to save is even less! At the end of the savings term you will have saved $1,875, which is a great start towards saving for your new home, but as a reward for your hard work and perseverance, the Federal Home Loan Bank of New York is going to add $7,500 to your own hard earned savings. This is money you will never have to pay back, as long as you stay in your new home for at least 3 years.

During this savings period you will also get to attend the free workshops provided by CCCS of Rochester, where you will learn about creating a spending plan, deciding how much home you can afford, and all there is to know about getting ready to purchase your new home including closing costs, realtors, mortgages, attorneys, inspections, etc. There will also be presentations by realtors and attorneys that have helped hundreds of others purchase the home of their dreams.

If owning your own home is one of your dreams, even if it is a couple years down the road give CCCS of Rochester a call and talk to one of our certified counselors for more information and to see if the First Home Club is right for you!

If owning your own home is your DREAM, let CCCS of Rochester help make it a Reality!

Beware: Rent to Own and Payday Loans

by Phil Stratigis

Often, consumers feel the pinch of needing something immediately, whether it be money or a physical item. During these times, consumers need to be very wary, as many of the options available to them are sometimes well disguised traps meant to take advantage of their situation. Two of the biggest traps to avoid are Rent-To-Own stores and payday lenders.

Rent-To-Own stores prey on the consumer's desire to immediately have material possessions. These stores have become popular with people who have poor credit, and heavily target lower-income consumers.

Rent-To-Own stores lure in consumers with promises of providing high-end merchandise, such as flat screen TV's and furniture, at "affordable" payments drawn out over a long timeframe.

The problem with Rent-To-Own stores is that they are able to hide extremely high interest charges and fees over time. Interest charged at these stores can run as high as 50% and end up costing you far more than the item is actually worth.

Alternatives to these stores include making a savings plan to buy the item outright or shopping at second-hand stores like Goodwill for more affordable items.

Consumers who feel the need for a smaller amount of cash in a short timeframe sometimes turn to payday loans. These products are short-term loans that are meant to give people money until their next payday. Although this sounds like a noble, useful product, the interest rates and fees  can make it impossible for the borrower to repay the debt in the anticipated timeframe.

The interest rates are so high that these loan products are currently illegal in the state of New York due to usury laws. The annual percentage rate (APR) of a payday loan can reach into the hundreds, trapping the consumer in a cycle of being unable to repay the loan.

These loan products should be avoided at all cost. The best way to avoid feeling the need to take out a payday loan is to prepare an emergency fund into which you deposit a small amount each month in case of unexpected expenses.

PROTECT YOUR IDENTITY

By Lynette Baker, Director of Marketing

Identity Theft is quickly becoming one of the most organized and costly crimes of modern times. Identity Theft is a crime in which an imposter deceptively obtains identifying personal data and uses it for their own personal gain. Some of this data might include social security numbers, driver's license numbers, credit card numbers and bank account numbers. The process can start with a stolen wallet, pilfered email or an online data breach. Identity Theft can affect anyone of any age, including children!

Over 8 million people are victimized by identity theft each year, with identity theft remaining the top complaint to the FTC for 11 years running. Overall losses from identity theft were over $37 billion in 2010. The average consumer out of pocket cost was up to $631 per incident.

National Protect Your Identity Week is October 16-22, 2011. To mark this annual event, Consumer Credit Counseling Service of Rochester is offering tips to help consumers protect their identity. We will also be hosting an event at the Fairport, NY Tops at 6720 Pittsford Palmyra Rd on October 22^nd from 10am-2pm. Bring your documents and we'll shred them for you!

• Buy a shredder and use it! Shred everything including credit card receipts, old bank statements, medical statements, everyday bills and pre-approved credit card offers. If you don't have a shredder or can't buy one, look for shredding events in your area. There are many being held for Protect Your ID Week.
• Monitor your credit and bank accounts carefully, so you'll know if a bill is missing or if unauthorized purchases have been made.
• Protect your Social Security number. Only give out your Social Security number when absolutely necessary.
• Never give out your Social Security number, bank account number or credit card numbers to phone solicitors.
• When shopping online, make sure you see the Trust-e symbol or a Better Business Bureau online seal. These indicate that the seller has been independently audited and deemed trustworthy. Also make sure that online sites are secure or in an encrypted mode. The best way to do this is to look for a web address that begins with https instead of the usual http.
• Have a constant awareness of your surroundings when shopping or using ATM's. Unscrupulous people can pick pocket you or look over your shoulder to gain your pin number.
• Consider signing up for a credit monitoring service. Such services alert you via email anytime there is an inquiry or other activity to your credit report.
• Order your credit report regularly. Consumers are allowed one free credit report every 12 months from each of the three bureaus- Experian, Equifax and Transunion. Order a report now from one bureau and then from another in January. This will give you a look at your credit report every 4 months and is still free.

The best way to protect your identity is to be proactive and through prevention. It is much more difficult to recover from identity theft than to take steps to stop it before it happens.

Need help with your debt? You are Not Alone.

By Lynette Baker- Director of Marketing at CCCS of Rochester

If you are struggling each month to pay your bills, and you don't seem to be making any progress, maybe it's time to consider getting some help. A Debt Management Plan (DMP) is a great option if you need professional advice. The goal of any DMP is to help you decrease your debt and allow you to take back your financial future.

A DMP can help with your unsecured debt. Unsecured debt is debt that is not secured by an underlying asset or lien. Examples of unsecured debt are credit cards, personal loans, and attorney or medical bills. A DMP will take all of your unsecured debt and combine it into one affordable monthly payment. It is not a debt consolidation loan though and unlike debt settlement services, there are no upfront fees. A credit counseling agency will provide you with practical budget counseling services and work with you and your creditors to build a budget you can live with. A DMP will help you pay off your debt and improve your credit rating. An agency that offers DMP's can offer helpful suggestions and assist you with:

                •lower interest rates

                •lower payments

                •reduction or removal of late or over limit fees

                •relief from collection calls and letters

Regardless of your specific need, choosing a good credit counselor is extremely important. Some organizations, including some non-profit credit counseling agencies, may be more interested in their bottom line than in helping their clients. A 2005 Senate committee, though, lauded the National Foundation for Credit Counseling (NFCC) for its commitment to ethical credit counseling that is provided at low or even no cost to consumers. The NFCC has member agencies all over the US including Consumer Credit Counseling Service of Rochester. There are some important criteria to keep in mind when choosing an agency to work with.

•Find out if the agency belongs to a national organization such as the NFCC to ensure it meets quality and ethical standards

                •Ask the Better Business Bureau and other third parties about the agency

                •Watch out for large upfront or monthly fees

                •Be skeptical of BIG promises

                •Make sure the agency will work with all your creditors

                •Be wary of "fly by night" agencies- make sure the agency you choose has many years of experience

Keep in mind that a DMP is not a "quick fix". No one can get rid of your debt overnight. A DMP will get you back on track though and improve your finances for the future. You must be committed though. A credit counseling agency can help you lower payments but you still have to be disciplined to make those payments and not incur any further debt while you are on the DMP. Your patience and hard work will be rewarded with a brighter financial future!

What To Do If Your Information Gets Leaked

By Destiney Fraguada, Counselor

Occasionally, hackers are able to breach the security precautions of companies and access protected consumer information.

However, there are some proactive steps you can take as a consumer to safeguard your personal information.

Monitor your credit report closely.

The best method of monitoring your credit report would be to pull all 3 credit reports annually, ideally spreading them out over a course of a year.

You can acquire your credit report for free through annualcreditreport.com; this site is a free, government-sponsored site with no fees or temporary membership requirements.

Place a "fraud alert" on your credit report.

If you feel that your identity has been compromised, you can place a personal statement on your credit reports.

It is important to place instructions for a creditor to follow if they are trying to issue you credit, including a method for them to contact you.

Change and/or update passwords on accounts that have been compromised.

Make sure to update your passwords and contact the bank or lender immediately.

Request the bank or lender to issue out a new card, and change any PIN‟s associated with the accounts.

Become empowered and take control.

Contact companies that have recently solicited you and ask to be removed from their mailing list.

To avoid e-mail solicitations, you can direct them to the junk or spam folder. Then, each time you‟re sent a solicitation from any company you sent to junk or spam, it will automatically go there.

Supt. Lawsky Announces Agreement with Goldman, Ocwan, Litton on Groundbreaking New Mortgage Practices

Sale of Goldman's Subsidiary, Litton, Conditioned on New Servicing Practices

An article by the New York State Department of Financial Services

NEW YORK, NY (09/01/2011)(readMedia)-- Superintendent of Financial Services Benjamin M. Lawsky today announced that New York's Department of Financial Services and Banking Department have entered into an agreement with Goldman Sachs Bank, Ocwen Financial Corp. and Litton Loan Servicing LP to adhere to landmark new Mortgage Servicing Practices. The agreement was required by the Superintendent as a condition to allowing Ocwen's acquisition today of Goldman Sachs' mortgage servicing subsidiary, Litton. With the Litton acquisition, Ocwen's mortgage servicing entity, Ocwen Loan Servicing, LLC, will become the 12th largest servicer in the nation, handling a very large number of customers in foreclosure or facing possible foreclosure.

"This agreement provides important consumer protections for homeowners who have found themselves in dire straits due to the financial crisis," Superintendent Lawsky said. "Our agreement sets a new higher standard for the residential mortgage servicing industry, whose troubling foreclosure and servicing practices we have been investigating along with other regulators across the country. Goldman Sachs, Ocwen and Litton have now all agreed to put the rights of homeowners ahead of their profit margins by implementing these changes."

As a further condition to his issuance of a "No Objection" letter on the Litton acquisition, Lawsky obtained a commitment from Goldman Sachs to assist affected homeowners by writing down approximately $53 million in unpaid principal. Goldman's commitment will forgive 25 percent of the principal balance all 60-day delinquent home loans in New York serviced by Litton and owned by Goldman Sachs as of August 1.

Importantly, the agreement today is a condition of the acquisition and does not preclude any future investigations of past practices or release any future claims or actions whatsoever.

The new Agreement on Mortgage Servicing Practices that Goldman, Ocwen and Litton have signed makes important changes in the mortgage servicing industry which, as a whole, has been plagued by troublesome and unlawful practices. Those practices include: "Robo-signing," referring to affidavits in foreclosure proceedings that were falsely executed by servicer staff without personal review of the borrower's loan documents and were not notarized in accordance with state law; weak internal controls and oversight that compromised the accuracy of foreclosure documents; unfair and improper practices in connection with eligible borrowers' attempts to obtain modifications of their mortgages or other loss mitigation, including improper denials of loan modifications; and imposition of improper fees by servicers.

The Agreement makes the following changes:

1. Ends Robo-signing and imposes staffing and training requirements that will prevent Robo-signing.

2. Requires servicers to withdraw any pending foreclosure actions in which filed affidavits were Robo-signed or otherwise not accurate.

3. Requires servicers to provide a dedicated Single Point of Contact representative for all borrowers seeking loss mitigation or in foreclosure, preventing borrowers from getting the runaround by being passed from one person to another. It also restricts referral of borrowers to foreclosure when they are engaged in pursuing loan modifications or loss mitigation.

4. Requires servicers to ensure that any force-placed insurance be reasonably priced in relation to claims incurred, and prohibits force-placing insurance with an affiliated insurer.

5. Imposes more rigorous pleading requirements in foreclosure actions to ensure that only parties and entities possessing the legal right to foreclose can sue borrowers.

6. For borrowers found to have been wrongfully foreclosed, requires servicers to ensure that their equity in the property is returned, or, if the property was sold, compensate the borrower.

7. Imposes new standards on servicers for application of borrowers' mortgage payments to prevent layering of late fees and other servicer fees and use of suspense accounts in ways that compounded borrower delinquencies and defaults.

8. Requires servicers to strengthen oversight of foreclosure counsel and other third party vendors, and imposes new obligations on servicers to conduct regular reviews of foreclosure documents prepared by counsel and to terminate foreclosure attorneys whose document practices are problematic or who are sanctioned by a court.

Ocwen and Litton are immediately taking steps to implement these servicing practices. Goldman, which is exiting the mortgage servicing business with the sale of Litton, has agreed to adopt these servicing practices if it should ever reenter the servicing industry.

Guarding Yourself Against Credit Card Skimming

By: Rachel Douglas, NFCC certified Credit Counselor

Card skimming is a method used by thieves to steal credit or debit card information. Skimmers place counterfeit devices on ATMs which record your information when cards are inserted into them.

This practices illustrates that credit and debit card accounts are vulnerable even if the cards themselves are never lost.

In part, that is because credit and debit card numbers are usually stored unencrypted on a magnetic stripe on the reverse of each card, which thieves can easily copy at low cost.

Summer is the highest-risk season for scams and thefts, so make sure you know how to properly protect yourself to avoid becoming an easy target.

To protect yourself from card skimming scams, practice the following:

Avoid ATMs that you do not normally use.
Thieves commonly put out-of-order signs on legitimate ATMs and set up nearby counterfeit ones that skim information from your card. ATMs positioned inside banks within view of watch cameras aren't risk free, but they create more challenges for the thieves who install skimming equipment.

Cover your code.
When entering your PIN into an ATM or card reader, cover the keypad from the observation of hidden cameras or anyone in close proximity.

Use the "credit" option with your debit card.
If you must use a debit card, choose the option to have the purchase processed as a credit transaction rather than entering in your PIN.

This option is available at many point-of sale terminals, and functions the same exact way as using the debit option. This way, your debit PIN is more secure.

Card skimmers particularly target gas stations, especially in vacation areas. Make sure to be extra careful while filling up your gas tank!