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  • Debtmerica Authors & Editorial Team

    Debtmerica is known as an authority in the debt services industry and as a part of our commitment to this we publish a news journal covering topics in and around consumer spending, debt management, and other debt related news topics.

    Writers

    Harry Langenberg – “Chief Editor and Orchestrator”

    Harry is a Managing Partner at Debtmerica and a leading advocate of the debt settlement industry. When not running operations at the Company, he is editing new content for the site and ensuring that the editorial team covers the most relevant topics in the news. Harry is a graduate of the Wharton School at the University of Pennsylvania and hails from St. Louis, MO.

    hlangenberg@debtmerica.com

    Christine Bui – “Conductor of the Content and Company Curator”

    Chrissy is Debtmerica’s Production Manger. While she is a little more reserved in the workplace, when it comes to communicating her thoughts and views in writing, she is a rainmaker. Chrissy has been connecting with Debtmerica fans for over two years with her articles, press releases and helpful site resources. When not planning her next scribbling creations, Chrissy can often be found enjoying some of Orange County’s hot social spots with her numerous friends. Chrissy is a graduate of UC Fullerton and has spent all her fine years in the Southern California area.

    cbui@debtmerica.com

    Jesse Stockwell – “Master of FAQs & Budgeting Maestro”

    Jesse is Debtmerica’s CEO, and in addition to having all the answers for our staff and clients, he loves to enrich the public’s knowledge with financially savvy content and articles. Jesse’s pen anchored most of the rich content on the Debtmerica site, and he keeps our client-friendly FAQ’s up to date, while responding to questions and topics that are on the minds of consumers. Jesse is a graduate of the Wharton School at the University of Pennsylvania and is a big fan of the Boson Red Sox, having grown up outside of Boston in the Cape Cod area.

    jtorres@debtmerica.com

    Kristen Bemis – “Guardian of Compliance and Protector of Objectivity”

    Kristen is Debtmerica’s General Counsel, and she always enjoys a good challenge. Her strong ability to thoroughly analyze the issues and provide an objective perspective is deeply appreciated by staff. Kristen has the job of making sure Debtmerica’s communications are kosher, which means reviewing gobs of content. Kristen is also an industry leader, currently serving The Association of Settlement Companies, our industry Association. When she can find time, her articles on industry regulation and consumer advocacy are very insightful. Kristen holds a Bachelor of Arts in Political Science and minors in Business and History from the University of San Diego and is also is a graduate of the University of the Pacific, McGeorge School of Law.

    kbemis@debtmerica.com

    To contact any of our writers, please send us a note using our contact us page.

  • FTC wins injunction, shutting down phony credit card debt consolidation operations

    Court shuts down bogus credit counselors Three companies offering U.S. consumers assistance in consolidating their debt were effectively closed down Thursday by a federal court order enjoining them from practicing their deceptive telemarketing.

    The Federal Trade Commission said that the FBI, IRS, and Secret Service were also interested in the three companies, and while a criminal complaint has not yet been filed against them, those three agencies are working together to find any evidence pointing to violations of criminal law.

    The firms, according to the FTC, bilked already debt-saddled Americans out of up-front fees for ostensibly guaranteed debt reduction services and then doing nothing except for resisting attempts to gain a refund. The FTC said that "consumers who complained and demanded refunds allegedly were denied outright, got the run-around, or had a $199 ‘nonrefundable fee’ deducted from their refund."

    Consumers looking for help in pulling themselves out of debt should be careful of offers that seem too good to be true, and be particularly cautious of anyone demanding money up front or promising reduced principals.

  • Defense Department announces new initiative to provide debt counseling for service members

    DoD helping soldiers stay afloat financially Military personnel in financial trouble could find it difficult to concentrate on their critically important duties, so the Defense Department recently announced several new programs to help service members consolidate debt and stay out of fiscal minefields.

    A program analyst for the Pentagon’s military community and family policy office, Marcus Beauregard, said that "anything that will help a service member to do their job better and feel more prepared for their duty in taking care of their finances is certainly beneficial. The most important thing we can do is to educate service members and their families, make them aware of things that may be a problem, [and] make them aware of how to deal with transactions."

    Beauregard urged military personnel to view businesses and organizations that claim to have the service member’s best interests at heart, as some of these can offer genuine services to them, while others are scam artists looking for a quick buck.

    Other studies have shown that many veterans benefit from job skills training and career placement programs, which can help them stay out of debt after their service.

  • Need for debt counseling could increase as U.S. credit card customers lose some caution

    Credit card delinquencies could rise The demand for credit among American consumers is heading upwards, according to a FICO study released on Wednesday, but this could cause an uptick in credit card delinquencies going forward.

    Bankers surveyed by the research firm generally agreed that the combination of the slowly improvingeconomy and the effect of soon-to-be-implemented federal regulations would cause them to place a higher priority on risk management in the future. They also expect interest rates to either stay the same or increase.

    Additionally, well over half of bankers expected to see delinquencies rise in the near future across most categories of consumer loan. Fewer than 60 percent said that credit card delinquencies would move upward soon, and even more were pessimistic about the future return rates of small business loans.

    Experts say that this pending spike in consumers facing financial trouble could provide the consumer credit counseling industry with a corresponding leap in potential customers, as Americans look to consolidate debt and escape the worst effects of the economic downturn.

  • Slashed credit card fees could hurt issuers, but help with bill consolidation

    Fees could drop for credit use as well In the wake of a successful amendment to the Senate’s financial reform bill that would cap debit card processing fees for issuers, Bloomberg News reports that credit card processing fees could be next.

    The news agency cites a client note from Stifel, Nicolaus and Co. analyst Chris Brendler, which asserted that credit card interchange fees would be "inevitably next" on the list of card issues tackled by U.S. lawmakers.

    Bloomberg News also says that Visa and MasterCard had previously been successful in derailing legislative attempts to regulate swipe fees, which are charged to merchants each time consumers use their cards to pay for goods or services.

    Experts say that the cap on debit card swipe fees – and a possible similar limitation on those for credit cards – could help merchants reduce prices across the board, easing the financial burden on Americans whose finances took a turn for the worse during the recent recession. It could also allow those in particularly dire straits to afford debt counseling, should they need it.

  • New rules for NYC collections agencies could let consumers consolidate debt in peace

    Collections agents under new rules in NYC While debt collectors are an important part of the consumer financial ecosystem, some agencies have been accused of threatening, harassing, and lying to consumers in pursuit of unpaid debts. The mayor of New York, Michael Bloomberg, recently announced tough new restrictions on those companies.

    Bloomberg said that "the measures we are announcing today will help stop this rising tide of wrongful and financially harmful collection tactics, and protect New Yorkers from their often damaging consequences."

    The mayor and consumer affairs commissioner Jonathan Mintz assert that some collection agencies routinely harass people who have the same names as their targeted debtors, making little to no effort to ascertain whether the person actually owes them any money.

    Experts say that consumers should make every effort to repair their financial troubles before collection agents are brought in, however. Reputable credit counseling services can help stop a slide into debt that might otherwise cause creditors to take drastic action against a consumer. A consumer’s credit rating is also endangered by a referral to a collections agency.

  • The Pros and Cons of Settling Debt Yourself

    It’s possible for a consumer to imitate the methods of professional debt settlement companies and many people report success in negotiating a debt settlement for themselves. Initiation of negotiations can begin by calling the customer service department of the credit card company. In general, the credit card company will only deal with a consumer when the consumer is behind on payments but capable of making a lump sum payment.

    (more…)

  • Interchange fee legislation could deal blow to credit card companies

    Visa, MasterCard could take a hit from new regulation An amendment to an omnibus financial regulation bill currently being considered in the U.S. Senate – which was recently approved by that chamber with 64 votes – will place strict caps on so-called interchange fees that credit card issuers charge merchants for processing payments made with debit or credit cards.

    According to financial news and analysis website The Motley Fool, the caps on interchange fees will not directly harm the bottom lines of companies like Visa and MasterCard. However, the website quotes Visa’s annual report as saying that "if we cannot successfully defend our ability to set default interchange rates to maximize system volume, our payments system may become unattractive to issuers and/or acquirers."

    Proponents of the amendment say that it will shift the burden of these interchange fees off of merchants, who say that the fees can seriously harm their profits on low-margin sales.

    However, consumers could see a reduction in the number of establishments able to accept debit cards, and experts say that the effect on an already-stretched U.S. consumer base might not be universally positive, making for increased demand for consumer debt counseling.

  • Credit card companies say indicators pointing to bright future

    Credit markets looking up While the U.S. credit card market is still plagued by heightened levels of delinquency and above-average amounts of consumer debt, the major card issuers say that the trends are moving in a broadly positive direction, according to the Wall Street Journal.

    Keefe, Bruyette, and Woods analyst Sanjay Sakhrani told the Journal that "we are definitely past the peak in charge-offs. From an investor’s standpoint, this data begs the question whether we can see a pick-up in growth or at least a stemming of the decline in credit-card balances."

    Annualized charge-off numbers declined across the board in March, the Wall Street Journal reported, with the amount of money written off as bad debts by the major card issuers slowly but steadily decreasing.

    While this is hardly conclusive proof of a burgeoning economic recovery, it could still be a positive sign that the financial position of the average U.S. consumer is beginning to improve toward the point where consumer spending might begin to recover. Experts say that this development would be one of the signs that the crisis is well and truly past.

  • Report: Generational spending habits may have changed thanks to recent recession

    Millennials changing spending habits Americans born in the early 1980s – also known as the "millennial" generation – have seen their spending habits drastically reshaped by the recent recession, spurring a need for debt consolidation, according to Northwestern University’s Medill Reports.

    FD International’s senior vice president of Americas, Brent McGoldrick, told the publication that "the early evidence is that it [spending habits] have changed and it will continue to change. They understand that things might not get better." The Medill Reports story also cites a recent poll showing that Millennial’s confidence in their ability to earn a living is quite low.

    Americans of this age group are much more focused than previous generations on keeping themselves out of debt and managing what debt they are forced to take on with skill and responsibility, the Medill Reports story said.

    For free-spending young people who were caught off-guard by the sudden economic downturn and found themselves in a surprise economic hole, debt consolidation and counseling could be a necessary step on the road back to financial stability.