FAQ

You Have Questions, We Have Answers

Who are our clients?
They are people just like you.  Honorable people trying to make ends meet for their families and trying to meet expenses in a changing world of increased daily expenses.  To be qualified as a client, you must have at least $5000 owed to one or more creditors, and have decided to make a lifestyle change in your situation to reduce and eliminate the amount of debts. Many of our clients find it difficult to get ahead financially and, at times, cannot keep up with their monthly expenses. This is usually due to a major crisis or change in their lives, such as divorce, health problems, a cut in pay, or loss of job. Some have even tried other debt and credit repair programs which have failed them.

What is a debt consolidation plan exactly?
Debt consolidation plans involve combining your debts generally into one group creating one payment in order to pay off or resolve the majority of the debts.  Usually the most effective debt consolidation plans have qualified and reliable third parties, like us, make arrangements with your creditors to reduce your debt and make it easier to pay off. Money is not loaned in this case and creditors do not change, however, the terms and conditions under which the outstanding debt can be repaid usually changes a lot. By getting started in our debt consolidation program, two good things will happen: You'll have the chance to pay off your debts faster, and you'll be able to do so while making lower monthly payments. An added benefit to having us create a debt consolidation plan for you is that it may also improve your credit rating by reducing your debts. Payments made under this plan are usually reported by creditors as being 'paid in full, settled in full, resolved or paid as agreed', which helps to improve your credit report by reducing your total outstanding debt and thus increase your future ability to borrow money.

What types of debt can be handled by the firm?
We handle just about any type of credit card debt, medical bills, personal loans, cell phone bills, old utility bills, repossessed car debts, department store debts, charge offs, collection accounts, judgments, professional fees, or other types of 'unsecured debt'.

Why go with a Law Firm, isn’t it going to cost me more to use lawyers?
Not at all! The specialized debt services program is specifically designed to help people get out of debt, not put you further into debt.  There are NO large up front retainers required nor billing for the debt relief services so you have peace of mind that you don’t have to borrow to more to get out of debt.  By using our firm, you will benefit from top-notch negotiating skills, in-depth knowledge and experience in solving debt problems, and a higher level of professional responsibility. Combine that with our excellent reputation and our ability to gain the respect and cooperation of creditors, and you'll see why a law firm, such as The Law Offices of Leslie H. Tayne, P.C., will do the best job for you to get you the results you need and look out for your best interests.

How do I know if I am right for your help?
If you're way behind in your debts or if you're struggling to make ends meet, there's an excellent chance that our services will help you solve your financial problems. You simply need a desire to reduce the debt in your life and have the willingness to work with us to make it happen. In our first meeting (at no cost to you), we will explain your choices for lowering your debt and paying down your bills. If at any time we see that you would be better off with a different type of debt solution, we will immediately advise you of that. Our role is always to help you get on the right path, financially, and see you through to success.

Do I have to be behind on my bills for your help?
No, as a matter of fact, many of our clients are not actually behind on their bills, but are struggling to make their minimum monthly payments. Our debt and repair services not only help you pay your bills on time, but also make it easier to pay for the increased living expenses that are now burdening you. If you've been having a tough time just paying for the basics, such as rent or mortgage, grocery bills, childcare, and gas and electric bills, we can relieve your debt stress and make bill paying a whole lot easier.  You may find you actually have money left over after all the bills are paid.

How much does it cost?
There are no costs to talk to us and never a fee to talk to an attorney.  We do not bill on an hourly rate or bill you for the services.  There are no surprises and everything is written down for your protection.  Our fee comes from money you already owe to creditors, so you won't have to write out a separate check to pay for the debt services. Once you get started in our program, all legal fees and bill payments are included in one single monthly payment, the payment used towards the resolution of the debts. There is no large lump sum, upfront costs; our debt consultation is free, and there's no charge for the application process ever. We do get paid, after all resolving debts is no easy task but only after we get each of your debt accounts reduced. Simply put, you start making one low single monthly payment and that’s your only financial responsibility to us.

How fast will I see results?
Things can move very fast depending on the choices and options you make in the program.  Once you are set up in the program, we start right away and do not waste time getting things moving forward by contacting your creditors. Shortly after we hear back from them, we begin negotiating with your creditors to get your debts reduced. Agreements can often be reached within weeks of the first negotiation contact. Depending on your schedule and your creditor you may see an account resolved as early as 30-60 days later.

What is my payment based on?
Your monthly payment depends on the amount of money you decide to put into the program and how quickly you want to pay off your debts. We will provide you with payment choices and you decide what is best for your budget.  You are never locked in to a payment either and changes can easily be made, making this program the best in flexibility.

Where does the money I send go each month?
All of the funds for settlement are kept in a safe, secured FDIC insured bank account with additional safeguards and insurance from loss or theft being in an attorney trust account.  This is peace of mind that your money is safe and the added bonus of attorney ethical responsibilities to manage the trust funds.

When should I consider bankruptcy?
Bankruptcy should always be seen as a last resort in solving financial problems. Bankruptcy is a short term solution that could 'backfire' on you down the road. Please refer to our bankruptcy section on more information on how bankruptcy may hurt rather than help.  Our firm generally advises that bankruptcy be considered as a last resort when you can no longer afford basic necessities. We do not handle bankruptcy matters for clients but can always refer you to qualified reputable bankruptcy attorneys in your area as a last resort.

Filing for bankruptcy is more of a drastic choice than many people realize. Debt consolidation, the solution we recommend, creates a much stronger financial foundation for clients than bankruptcy ever could. However if at any time during the program you wish to learn more about the pros and cons of declaring bankruptcy, we can schedule for you (at no additional cost) a consultation with an attorney in our firm. We want you to be comfortable with and successful in resolving your debt problems. As you'll discover from working with us, our firm will do all it can to protect your best interests and provide you with helpful information, guidance, and support.

What does it mean to default on debt?
When people fail to make payments on time or don't follow other conditions of a loan, it may result in what's called a 'default'. There are two types of defaults: monetary and covenant. When a homeowner fails to make any payment that's due under a mortgage, for example, it's considered a 'monetary default'. When the owner fails to follow through on other terms of the loan, it's considered a 'covenant default.'

What debts are covered?
Personal, family, and household debts are covered. This includes money owed for the purchase of a now repossessed automobile, boat, ATV, for medical care, or for charge accounts.

Who is a debt collector?
A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. Debt collectors are not your friends and will try to bend the rules to get you to make a payment to them.  Many collectors have violated the law in their attempts to collect the debts owed but you may not even know this violation happened to you if you dealt with them on your own without help from experts from our firm.  

How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts. We will educate you on the rules that must be followed by collectors so you will be prepared to handle any contact from collectors.

Can you stop a debt collector from contacting you?
Yes, you can stop a debt collector from contacting you.  There are several effective methods that we use to get the calls and contact to stop.  Sometimes though, this is a difficult process since creditors now have many overseas call centers.  Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

What must the debt collector tell you about the debt?
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?
Harassment- Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, debt collectors may not:

· use threats of violence or harm;

· publish a list of consumers who refuse to pay their debts (except to a credit bureau);

· use obscene or profane language; or

· repeatedly use the telephone to annoy someone.

False statements- Debt collectors may not use any false or misleading statements when collecting a debt.
For example, debt collectors may not:

· falsely imply that they are attorneys or government representatives;

· falsely imply that you have committed a crime;

· falsely represent that they operate or work for a credit bureau;

· misrepresent the amount of your debt;

· indicate that papers being sent to you are legal forms when they are not; or

· indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

· you will be arrested if you do not pay your debt;

· they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or

· actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

Debt collectors may not:

· give false credit information about you to anyone, including a credit bureau;

· send you anything that looks like an official document from a court or government agency when it is not; or

· use a false name.

Unfair practices- Debt collectors may not engage in unfair practices when they try to collect a debt.  For example, collectors may not:

· collect any amount greater than your debt, unless your state law permits such a charge;

· deposit a post-dated check prematurely;

· use deception to make you accept collect calls or pay for telegrams;

· take or threaten to take your property unless this can be done legally; or

· contact you by postcard.

What control do you have over payment of debts?
We always operate in the best interests of our clients and their individual financial and personal circumstances.  You can control the entire program from payment amount to payment date to creditor payment and settlement.  Most client trust our judgment and know that we will do what’s right for you so the negotiation and settlement of your debts are left to our professional staff and an attorney from within the office makes the final decision always on all settlements.  If you owe more than one debt, any payment you make must be applied to the debt you indicate.  A debt collector may not apply a payment to any debt you believe you do not owe so long as you have written to them disputing that debt.  This office will not dispute the debts on your behalf.  If you believe you do no owe the debt and the collection notice is invalid or incorrect you have the option to remove a debt to dispute the validity of that debt.

What can you do if you believe a debt collector violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less. There are also many ways to report the violation of your rights and the collection of a debt from you improperly by a collector.

Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General's office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General's office can help you determine your rights. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357)

Credit Score Information
What is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit.  Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report.  Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points - a credit score - helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due. Because your credit report is an important part of many credit scoring systems, it is very important to make sure it's accurate before you submit a credit application.

To get copies of your report, contact the three major credit reporting agencies:

· Equifax: 1-800-685-1111

· Experian: 1-888-EXPERIAN (397-3742)

· Trans Union: 1-800-916-8800

These agencies may charge you up for your credit report although you are now entitled to one free credit report a year.  Visit the three credit reporting bureaus online for more information. 

Why is credit scoring used?
Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.  In order to give credit to everyone a basic model is needed to determine credit reliability and credit worthiness by you, the consumer and debtor.

What can I do to improve my score?
Credit scoring models are complex and often vary among creditors and for different types of credit.  If one factor changes, your score may change - but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.  There are obvious ways though that you can improve your credit score.  Lower your monthly bills, pay the bills on time, eliminate unnecessary open revolving credit accounts, are just a few examples of credit score improvement suggestions.

Nevertheless, scoring models generally evaluate the following types of information in your credit report:

Have you paid your bills on time?
Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.  However you can still improve your credit if you have late or delinquent credit reporting in your history.  Contact us and let us explain more about credit and debt improvement.

What is your outstanding debt?
Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit that is likely to have a negative effect on your score.  So keep credit card balances low, try not to max out your credit cards in the future.

How long is your credit history?
Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments on certain debt and credit accounts and low balances.

Have you applied for new credit recently?
Many scoring models consider whether you have applied for credit recently by looking at "inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted.

How many and what types of credit accounts do you have?
Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.  Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.  To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It's likely to take some time to improve your score significantly.

How reliable is the credit scoring system?
Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics.  But to be statistically valid, credit scoring systems must be based on a big enough sample.  Remember that these systems generally vary from creditor to creditor.  Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed. And many creditors design their systems so that in marginal cases, applicants whose scores are not high enough to pass easily or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.

What happens if I am denied credit or don't get the terms I want?
If you are denied credit, the Equal Credit Opportunity Act requires that the creditor give you a notice that tells you the specific reasons your application was rejected or the fact that you have the right to learn the reasons if you ask within 60 days. Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific. Acceptable reasons include:   "Your income was low" or "You haven't been employed long enough." Unacceptable reasons include:  "You didn't meet our minimum standards" or "You didn't receive enough points on our credit scoring system."  If a creditor says you were denied credit because you are too near your credit limits on your charge cards or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.  Sometimes you can be denied credit because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down for credit. The credit reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.  If you've been denied credit, or didn't get the rate or credit terms you want, ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and the best ways to improve your application.  If you get credit, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information in your credit report.  This can be done easily by contacting the credit reporting agencies mentioned above.