How HELPS Worked for Ron M.

Transcript: "Yeah once you have this, man, it's like somebody come and lift a burden off you. I mean lets face it, you know? Then the bill collectors would keep after you after this started, but boy after HELPS sent out the letter and said "hey if you have anything coming up, don't talk to him you talk to us, we're his attorney." Boy I tell you after that got down to, aw maybe one or two. What would happen is they would change collection agencies. They would have ABC collection one week and ABC I guess would turn in back in to them and say "hey, we can't do anything." They turn it over to XYZ collection agency so they'd call you the next week and so then again you go to HELPS and they contact them and these people just go away. Because they know that they can't harass you because HELPS will sue them if they keep doing that you know? Because you're at a disadvantage when you owe them money and stuff because you don't know what to do, you're not an attorney, you don't know what your rights are. You just know I owe them money and I can't pay it. But these guys, the attorneys at HELPS boy they really take the burden off you. Life really becomes a lot different after, a lot better."

A big thank you to Ron M. for taking the time to talk to us!

A note about HELPS:
We do not sue collection agencies, if you continue to have trouble with an agency we will help refer you to an attorney who can help. For information on what HELPS can legally do please look at the FAQ on our website.

Online Payday Loans

An online payday loan is similar to one you would receive from a lending store: a short-term, unsecured loan that you pay off your next payday. Lenders profit from trapping you in a cycle of debt. You may pay the loan, but then need to renew it to deal with your other financial obligations.These loans provide quick money, but their high interest rate (we've dealt with some near 500%) makes them difficult or impossible to pay back. 

The Debt Cycle

Online payday loans present their own unique problems because it’s difficult to locate and regulate online lenders. Companies can anonymously create websites, and locate themselves where there are limited regulations on lenders. Some of these companies are located overseas, and often have no physical address making it challenging to contact them, resolve complaints, and enforce consumer rights. We have had some HELPS clients come to us with payday loans. Even when we have a physical address and can send notices to the payday loan lender they often ignore our contacts and harass the HELPS client. They do this because they know they cannot be sued because they move around too fast and are based overseas (even though it may appear they are in the U.S.).

Lenders hide not only their personal information, but facts about the loan, including the annual percentage rate (APR). It’s important to consider the APR instead of just the fee on the loan, because the creditor will attempt to force it to roll over. In fact many lenders will require you to decline to refinance or your loan renews automatically. They utilize the banks system of direct deposit/ withdrawal; the automatic renewing can go unhandled resulting in more debt.

There are ways to defend against predatory online lenders. The easiest is to find other borrowing options: legitimate overdraft protection, borrowing from credit unions who offer safer alternatives, or from friends, family, or a religious institution. If you are going to take out a payday loan find one without an interest rate in the triple digits, avoid very short term loans (e.g. two weeks). Avoid sharing personal information with unfamiliar companies; above all, do not give your banking information to internet lenders. If you do, it is possible you will have to change banks to stop them from withdrawing from your account.

We strongly advise everyone to avoid or discontinue any use of payday loans.

For our clients:
If you continue to be harassed by a payday loan company, please advise us. We will take every step available to stop them. Resist the temptation to answer their calls or engage them in conversation. They often make false threats that scare people; including arrest and jail. It is best not to even speak with them.

To learn more about HELPS visit our website: http://www.helpsishere.org/

By Reese Tozier

What Happens to my Assets When I Pass On if I Have Debt?

As a general rule, when you pass on, property that is owned jointly with a surviving spouse will become his or her property. What about when you are the survivor of the marriage or are single, what happens to your property when you pass?

When a person dies, their assets or "estate" first pays for the cost of their passing, funeral expenses and the like. Next, any outstanding debts are paid, and finally (if there is anything left) it will be distributed to the heirs. Often the person passing leaves little, if any, assets and nothing needs to be done. Family heirlooms and keepsakes have been gifted long before. For those that leave property, many states have a small estate proceeding to distribute property of minimal value. This process is simple and inexpensive, normally without attorney involvement.

Sometimes people will put their children on their bank account or add names to a car title so when they pass on, the property automatically goes to the survivor. If someone is buying a home and there is no equity, the home can simply go back to the bank. The heirs will not be responsible for that debt – only assets of the deceased will be used to pay the debt.

If there is equity in a home, there might be a reason to file bankruptcy- to eliminate the debt so when the person passes, the equity can go to the heirs. Sometimes people will add children to the deed so it automatically goes to the children upon death. Others deed the property to their children reserving what is called a life estate, which allows them to live in the home while they are alive. Then when they pass, the property goes automatically to the children. There is no probate or estate.

For our clients:
HELPS does not engage in estate planning. However, if you don't know who to speak with, you can talk with us and we can try to help you find an expert for you in your local area, with whom you can speak with for no charge.

To learn more about HELPS visit our website: http://www.helpsishere.org/

What is Debt Consolidation and is it Worth it?

Last week I spoke with someone who told me something surprising. She had hired a debt consolidation company to settle her debts and it had actually settled one. But was it actually worth it for her to hire the debt consolidation company? Keep reading to find out. 

Debt consolidation companies use many tactics to snare their customers, most of which disregard the truth and target those most in need. An ad currently playing on the radio asserts that Congress has passed a stimulus bill which allows people to settle their credit card debt for pennies on the dollar. This is absolutely false. Congress passed no such bill. (Of course, people have always been free to try and negotiate with their credit card companies, so that is true.) 

The way the debt consolidation companies work is as follows:

 You sign a long contract with small print agreeing to have a certain amount of money drawn directly out of your checking account each month. The company takes this money. It also writes letters to your creditors telling them that they are interested in settling the debts. This causes the creditors to send future letters to the company, not you, giving you the sense that your debts are being handled.

However, these companies do NOT send any money to your creditors. After 6 months or so, the creditors have not been paid, your credit is ruined and creditors stop dealing with the consolidation company and again - look to you for payment.

These companies routinely get shut down by various state attorney general offices, but the same people behind the companies simply start new ones – doing the same rotten things, with a different name. They are not really interested in settling your debts but in collecting the money you pay them. Countless Americans have paid millions of dollars to these companies. It's unfortunate because these people have the best of intentions. 

The FTC is finally taking some action to help people avoid these companies. Hopefully, someday, laws will be passed to completely put them out of business. They are one of the most prevalent scams of our times and prey on people trying to survive in a tough economy.

 

Additionally, don't confuse debt consolidation companies with local consumer credit counseling or other nonprofit entities that help with debt issues. These entities can genuinely help people in need. 

Then there is HELPS nonprofit which is designed for seniors and disabled persons on Social Security, disability and protected pensions who do not have sufficient income to pay their debts. HELPS gives these persons peace from harassment and the freedom to use their income for their needs. 

By Rex Daines

Testimonial on HELPS from Ron B.

"They've done a wonderful job for me and I have no complaints" -Ron B.

Transcript: Other seniors should know what helps can do for them because it's a fairly new program and they're not aware of it. I certainly wasn't and that's one of the reasons that everybody should know about this! The constant harassment and some of the nasty people that are on the other line of that phone are eliminated completely. You have no more stress. And I can't press that enough--no more stress from creditors--it's all taken care of.

And a big thank you from the HELPS team to our client Ron for doing this interview with us!

Common Scams Targeted at Seniors

“Work at home and earn extra money!” Sounds good doesn’t it? Particularly when we could all use a little extra cash. Unfortunately, the vast majority of companies that offer “work at home” opportunities are simply trying to take your money. I recently discussed this topic with Patricia Swansick, an investigator with the Oregon Department of Justice. In a recent case, Mrs. Swansick had been able to recover a portion of what had once been one senior’s life savings. The senior had been talked into taking on significant credit card debt by telemarketers to help finance his new "Home Business".

All seniors need to be on the lookout for scam artists. Here are some commons signs that you might be getting scammed:

Sweepstake notices, free gift offers. 

Once a senior takes the bait for one scam, thieves sell the person's name, address and telephone number, and the fake mailings proliferate. These mail scam are of two types, the "pay to play" scheme or the "You've won! Here's your check" scam. The first ploy entices seniors to buy inexpensive trinkets or magazine subscriptions (which they really do receive) in order to have their name entered in the contest. In the second case, the elderly person receives an authentic-looking check, with notification they've already won the Jamaican (or another foreign country) lottery. What the senior should do: shred both offers. It's illegal for companies to require you to buy anything to enter a sweepstakes. If they do, they're scammers. It's also illegal for Americans to enter a foreign country's lottery. These scams require the "winner" to wire back a share of their "winnings" (which will initially clear the bank but later prove counterfeit) for taxes or administrative fees. The advice from HELPS is to simply tear these up without even opening them in the first place.

Telephone Sales Calls 

“Scammers know senior citizens answer their phone, and are reluctant to hang up on anyone‖, says Jean Mathisen, director of AARP's Fraud Fighter Call Center. And as with junk mail, rip-off artists sell names and phone numbers of seniors who prove to be phone-receptive. HELPS advises you to simply say no thanks and hang up the phone. Resist the temptation to engage in a conversation.

Identity Theft 

Be wary of any calls or emails requesting personal information. One ruse the thieves use: They tell the senior they need a bank account number so they can deposit big prize money in the account.

The grandparents scheme 

The senior answers his phone and a young voice says, "Hey, Grandpa, it's your favorite grandson, and I'm in trouble." Senior says, "John, is that you?" The caller responds, "yes, it's John," he's calling from a friend's cell phone and he's been in an accident. He's out of state and needs his grandpa to wire some money right away.

The discount prescription scam 

Callers offer seniors prescription drugs at 50 percent off. The catch: it requires a $200 "membership fee" to join a discount club, along with seniors' credit card numbers. Or the drugs never arrive as promised, or the "medicine" is actually a generic herbal replacement.

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Other common scams that target seniors include ―Mystery Shopper, solicitations for donations, Medicare enrollment, mortgage foreclosure relief, and home or auto repair scams. We want our clients to know that there are more scam artists operating than ever before. If it sounds too good to be true it’s because it isn’t true. 

The Basics of Housing Assistance

Housing assistance includes programs such as Subsidized Housing, HUD Public Housing Program and Section 8 Housing.

Public housing was established to provide low cost safe rental housing to low income families including the elderly. What this means is that you can rent good housing, often for very little money. Sometimes the rent could be, for example, as low as $25 per month or 10% of your income and the government pays the difference. Many HELPS clients are eligible for subsidized housing and might consider this option to help stretch their budgets. These housing programs must meet certain standards and are often very attractive and safe. Here is how it works...

You will need to call your local Housing Authority to determine if you qualify. You can call one of the following numbers to find out who is your local Housing Authority:

Portland, OR—971-222-2600

Seattle, WA—206-220-5101

Spokane, WA—509-368-3200

Phoenix, AZ—602-379-7100

Tucson, AZ—520-308-3007

Boise, ID—208-334-1990

Salt Lake City, UT—801-524-6070

New Orleans, LA—504-671-3000

Denver, CO—303-672-5440

San Francisco, CA—415-589-6400

Los Angeles, CA—213-894-8000

Sacramento, CA—916-498-5220

San Diego, CA—619-557-5305

Dallas, TX—214-767-8300

Houston, TX—713-718-3199

San Antonio, TX—210-475-6806

Don’t see your local number? You can easily look it up here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/pha/contacts or feel free to send us an email at info@helpsishere.org and we'll add it to the list!

The application process is simple. They will ask some questions and require some information. They may even visit you to help if it is needed. Remember, they are there to help you. They will ask some questions at first to see if you qualify. There is usually a waiting list so the sooner you apply the better. You can stay in this housing indefinitely as long as you comply with your lease. Preference is normally given to the elderly.

HELPS encourages you to look into these options if housing is a problem.