Consumer Education

Graphic Depicting Elders for Elder Abuse Awareness Day

June 14 2023

June is Elder Abuse Month. Here’s What to Know.

Team NLC Bankruptcy, Consumer Education, Consumer Protection, Debt Collectors, Debt Resolution, Elder Abuse

National Legal Center is committed to promoting senior wellness and preventing elder abuse. World Elder Abuse Awareness Day (WEAAD) on June 15th is a global event that sheds light on the problem of elder abuse and seeks to protect seniors from all forms of mistreatment.

Raising awareness around this issue can help prevent financial exploitation, physical violence, neglect, psychological abuse, and other forms of maltreatment faced by elderly individuals worldwide.

Older generations are already facing financial hardship due to age-related medical bills and other expenses. These harmed humans are why our mission includes advocating for seniors in financial distress. We assist with debt-related legal issues, homestead property rights, debt collection scams, and more.

NIA-ElderAbuse-infogrfx_v1-5.2.19_cm-01_0

Types of elder abuse

Financial exploitation
Domestic and sexual violence
Physical violence and neglect
Starvation and mistreatment
Psychological abuse

Know the signs of abuse.

It’s important to be aware of the signs of elder abuse, ranging from physical injuries, emotional distress, financial irregularities, and more.

For example, physical signs may include bruises or other marks on the body. Emotional signs might include fearfulness or withdrawal in the presence of certain people. Financial irregularity could manifest in sudden changes to an elder’s financial situation, such as large withdrawals from a bank account or suspicious changes in wills, power of attorney documents, and/or other legal documents.

Harm happens fast, so it’s important to watch for warning signs and act quickly if you suspect that your loved one is being abused in any way.

Hurdles preventing help

Older Americans or seniors in an abusive situation may be unable to ask for help because of fear, confusion, or embarrassment. Those around them may not be aware of the signs of abuse or might not realize that help is available. There may also be social and cultural barriers that prevent seniors from seeking assistance.

Unable to advocate for themselves

When older adults begin to lose their capacities, they may begin to lose awareness. It may be up to a family member or friend to help the person gain a better understanding of what they’re facing and how to prevent it.

Shamed into silence

Abusers may shame victims into silence, leaving older victims to fear the loss of shelter or other things that affect their safety and health. Fear is a powerful motivator, and someone who is threatened with losing their core physical or emotional needs met may be influenced to stay quiet.

6 out of 10 elder abusers are relatives… but that’s not the whole story.

Based on information compiled by the National Council on Aging, 6 of 10 elder abusers are relatives. However, they also reported that as few as 1 in 24 cases of elder abuse are ever reported, which makes these numbers difficult to make a real inference.

Since the numbers don’t paint a clear picture, what’s the whole story?

We must collectively watch over the elders of our community and older person in our family, whether they live with family, in a long-term facility, or on their own.

Limited access to technology

Not everyone uses cell phones or the internet. Not only do older people tend to be less likely to use new technology, the long-term care facility they live in may not provide access.

How does a person make an elder abuse report?

If you or someone else is in immediate danger, call 911.

If you suspect elder abuse, the first step is to contact the authorities. Depending on your location, you may need to contact Adult Protective Services (APS), local law enforcement, or a state elder abuse hotline.

If you suspect an elder is being financially exploited, you should contact your local police department and/or your state’s Department of Financial Regulation for assistance in filing a complaint.

You can also find state-specific resources from the NCEA.

Additional resources

The International Network for the Prevention of Elder Abuse and the World Health Organization launched World Elder Abuse Awareness Day to raise awareness about elder abuse and establish victim services. Here are additional resources that may support an elderly person facing an abusive situation.

National Domestic Violence Hotline 800-799-SAFE (7233)

National Council on Aging

Department of Health and Human Services

If financial abuse has left you or your loved one with debt trouble, National Legal Center provides affordable representation to navigate debt without filing for bankruptcy.

Schedule a Free Debt Consultation with National Legal Center

Complete this form to schedule your free consultation.

May 10 2023

Summer on the Cheap

Team NLC Consumer Education

Summer is right around the corner, and while the kids may jump for joy as it arrives, it can be a difficult time for parents when money is tight. There seems to be an endless marketing cycle of expensive camps and theme parks on your social media feed. Or you may feel pressured to “keep up” with other families that spend a fortune on the season. Yet there are endless opportunities during the summer to have fun, keep the kids busy, and save money. We can’t truly connect and have a great time if we are filled with anxiety over our budgets. Put the credit cards down and dig into these ideas for a more satisfying, economical summer.

Have a Garage Sale
Begin with the ultimate way to go in the opposite direction of running up more debt. Instead of spending money, MAKE money with a garage sale! Who said going big on cleaning up was just for Spring? Embark on a Summer de-clutter project and include the whole family. Throw in some real motivation and tell the kids what you intend on putting the garage sale money towards. Maybe a trip to the local water park! Let them help setup, take money and make change, and if they love to craft, let them try to sell their creations! You’ll earn instead of spending AND the kids will learn loads about organizing, budgeting, and pricing!

Hit the Library
Make it a point to get involved with your local public library. Almost all public libraries have summer reading programs for kids. Get them participating early in the summer and the library trip can become an entire FREE outing that you can count on each week!

Pick Your Own Fruit
Check out your lock U-Pick farm! Get the kids in touch with the earth by letting them enjoy picking their own healthy summer fruit. Localharvest.org is a great resource to find a farm close to you. Berries are a big hit during the summer. Why not grab your haul and….

Get in the Kitchen
Take the bounty of strawberries, raspberries, & blueberries and get to baking! Ingredients for pie crusts are very inexpensive and yield a ton of summer sweetness. Grab a recipe and let the kids help with each step. The process of picking and cooking your own food is an inexpensive yet priceless experience for young ones, and it takes care of dessert for a few days!

Volunteer
Giving back to your community is a rewarding experience. Introduce your children to spending some of their free time this summer volunteering. From visiting a nursing home to picking up trash at your local park or beach, there are several appropriate ways for children to volunteer their time. Aiming to do this regularly over the summer can help segue the giving mindset into a lifelong practice. These rich experiences offer a lot to talk about too, so don’t forget to take the time to ask your child how they felt about it and get feedback. Letting them help choose how where to give their time is a great way to keep them motivated to keep it up. A great resource for finding volunteering opportunities is https://www.justserve.org/.

Budgeting 101 – Kid Style
Summer brings a host of chores that there may not be time for during the school year. Monetize chores that go beyond your child’s baseline household responsibilities Washing the car, mowing the lawn, the list goes on and on. This is a great opportunity to start a formal saving and budgeting program with your child, as well as saving money yourself on these usually expensive services. Set an affordable but fair amount for each chore and get a jump on teaching your child the relationship between work and money. Help them store their earnings in separate, clear jars or piggy banks. Consider three: one for saving, one for spending, and one for sharing (charity). Let them choose an appropriate summer spend goal (things like movie tickets or ice cream shop trips are a good idea). When the spending jar reaches that amount, celebrate by taking them to their goal destination!

Involve the Neighbors
Have neighbors with similarly aged kids? Consider setting up a “kid swap”. Switch off once or twice a week. Parents all have different skills. Maybe your neighbor is awesome at arts and crafts, but you are better with fun science projects. Offer the kids mini “camp” experiences and pay in trade! It’s inexpensive and creates a sense of community. After all, it takes a village!

There are endless additional ways to have fun this summer without breaking the bank. Many towns have free summer movies in the park and museums offer free or reduced rate entrance during the week. From bike rides to slip-n-slides, remember to keep fun at the forefront of your family summer this year!

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Couple looking at computer - Senior Debt

December 27 2022

Cost of Living Adjustment 2023 (COLA)

Team NLC Consumer Education, Debt Resolution

If you receive social security benefits, you know inflation made things especially difficult this year. Fortunately, the Social Security Administration took note and announced the highest Cost-of-Living-Adjustment increase in 30 years.

What is the Cost of Living Adjustment in 2023?

Social Security recipients and Supplemental Security Income recipients will receive an 8.7% increase to their social security benefits in 2023.⁽¹⁾

How is the Cost of Living Adjustment Decided?

The Social Security Administration conducts a review of the cost of living and the consumer price index in the third quarter of every year. The cost of living can be thought of as how much money the average person needs to meet a standard quality of life. The consumer price index is how much the price of goods fluctuates over time.

Because of the extreme inflation of 2022, social security beneficiaries will receive a significantly higher Cost of Living Adjustment in 2023 than usual.

2023 Cost of Living Adjustment (COLA)

How To Calculate your 2023 Social Security Benefits

To calculate your 2023 social security benefits, take your 2022 monthly benefit amount and multiply it by 8.7%. Next, add this number to the amount you were receiving in 2022. The resulting number is about how much you will receive monthly in 2023.

Example:

If your monthly payment in 2022 was $1,000:

$1,000 x 8.7% = $87

$1,000 + $87 = $1,087

In this case, your estimated monthly payment for 2023 will be around $1,087.

While this is the largest increase in 30 years, social security analysts and economists monitoring the cost of living agree that inflation hasn’t gone away. Continued inflation can quickly offset the COLA increase.

When Social Security Benefits Aren’t Enough

Although a COLA increase will help people receiving Social Security or Supplemental Security Income benefits, a high cost of living has made it increasingly difficult to survive on a fixed income.

If you can’t meet your expenses or are delaying buying medicine and other essentials, a historically high annual COLA benefit increase may not bring the relief you need.

When social security isn’t enough and you’re close to the earnings limit, there are special debt strategies only available for people on a fixed income.

Debt is Different on a Fixed Income

When you rely on SSI or SSDI and can’t meet your monthly payments and expenses, you can’t “just go and get a job.” Earning an income may cause you to hit the earnings limit and lose your social security benefits.

The Real Cost of Senior Debt

Approximately 1 in 4 adults over 65:⁽²⁾

withhold food, utilities, clothing, or medication
don’t have $500 in savings for emergencies
are on the verge of bankruptcy

What do seniors do when they can’t keep up with monthly payments and meet their expenses? Skip meals, cut pills, and feel helpless.

It is not acceptable for high credit card and debt payments to put seniors in such a situation.

How SSI Beneficiaries Can Get Out of Debt

Did you know that federal laws protect social security and other forms of fixed income?

Our attorneys use consumer protection laws to protect your fixed income and assets from creditors and debt collectors. The result? We safely and effectively lower your monthly debt payments.

If you’re on a fixed income, you don’t have to be burdened with unaffordable debt payments or an expensive and stressful bankruptcy. Those might be the right options for you, but they aren’t the only options. Explore options with a simple, direct conversation with our U.S. based legal team by calling 1-800-728-5285.

Schedule a Free Debt Consultation with National Legal Center

Rather talk another time? Complete this form to schedule your free consultation.

Social Security Administration Announced 2023 COLA

In the third quarter of 2022, the Social Security Administration announced the 2023 COLA increase of 8.7%. Additionally, they provided guidance on how to create an account with SSA.gov.

Sources

Social Security Administration. “Cost-of-Living-Adjustments” retrieved 12/19/2022 from https://www.ssa.gov/oact/cola/colaseries.html
National Council on Aging. “Get the Facts on Senior Debt” retrieved 12/19/2022 from https://www.ncoa.org/article/get-the-facts-on-senior-debt

December 1 2022

Be On Guard For These Common Holiday Scams

Team NLC Consumer Education, Consumer Protection

The holidays are a time for cheer, family, and friends. But, unfortunately, it’s also a time when criminals take advantage of people who are busier than usual. We’re enjoying the holiday season and might be paying a bit less attention to the world’s negative forces.

To raise awareness and give a gentle reminder to always be on the lookout, we’re outlining the most common holiday scams. Of course, scammers work year-round, and these scams aren’t limited to happening around the holidays, but since the number of scams increases by about 20% this time of year, it is important to be extra vigilant.

The Grandparent Scam

This scam usually targets seniors whom they believe to be easier targets. It starts with a call from someone saying they are a grandchild or other family member in some kind of trouble. Then, they will say they are out of the country and need you to wire them money right away.

These days, this scam can go beyond just phone calls. Criminals have been known to take advantage of social media, too, contacting people through Facebook Messenger pretending to be a relative in need after hacking their account.

If someone is calling you for money, it’s also a good idea to call them directly on your phone and ask them if they need you to send any funds.

The Fake Charity Scam

This scam is as old as the hills, but it’s still going strong. Criminals will create fake charity websites or send emails asking for donations. They may even go door-to-door asking for money. The best way to protect yourself from this scam is to research the charity first and make sure it is legitimate.

The Covid-19 Scam

We’re all still learning how scammers are taking advantage of the fears brought about by the covid-19 pandemic. We’ve heard of fake contact tracers seeking to obtain your Personal Identification Information, scammers charging a fee to conduct contact tracing or schedule a vaccine, and more. Review this resource from the FTC with a comprehensive list of covid-19 scams.

The Phishing Scam

This scam usually happens through email. Criminals will try to get you to click on a link or open an attachment that installs malware on your computer. The goal of this scam is to steal your personal information like passwords, bank account numbers, or social security numbers.

One way to protect yourself from this scam is to never open attachments or click on links in emails unless you are absolutely sure it is safe. Also, be suspicious of any emails that ask for personal information, even if they appear to be from a legitimate source.

The Prize Scam

This common holiday scam usually involves a letter or email informing you that you have won a prize. To claim it, you first have to pay a processing fee. Sometimes these fees can be quite small and seemingly harmless, but it sends the victim down a slippery slope where they just keep paying fees. The more a victim pays, the harder it is to stop, and they continue to lose more money.

The Fake Check Scam

In this scam, which usually occurs when buying and selling online, criminals send you a check for an amount higher than what is owed. They may even include a note saying something like, “You can keep the change!” Once you deposit the check, the bank will eventually realize it is fake, and you will be on the hook for the amount.

Protect yourself from this scam by avoiding accepting checks when selling items to individuals you don’t know personally.

The Shipping Scam

This scam targets people selling items online, particularly through sites like Craigslist or eBay. The criminal will agree to buy the item but then claim that they never received it and ask for a refund. Since it’s hard to track down where the package was sent, the victim is often out of luck. Then, they may threaten to leave a bad review hoping that the seller will just choose to refund the sale.

To protect yourself from this scam, always use a tracking number when shipping items and take pictures of the item before shipping it. Also, be sure to get a payment in full before shipping the item.

The Fake Debt Collector Scam

This one is tough to spot, especially if you have an unpaid debt.

This common scam involves phone calls demanding payment for a past-due debt, which is common for someone with delinquent debt. The scam lies in the caller not being a legitimate debt collector. They will often have a fraudulently obtained credit report or copy of collection letters that show how much is owed. Armed with all of that information, they can be very convincing.

How do you know if the call is legitimate? You can call them back using a phone number you obtain from their letter or directly from their website. Never agree to pay over the phone unless you are absolutely sure who is on the other end of that line. Contact your creditor directly using the number on their invoice or statement if in doubt.

Now that debt collection on social media has been made legal, we expect to see scams rising on those platforms.

If you’re facing debt and are worried about debt collection scams, let us help. Our debt settlement law firm can help resolve your debt and take action against debt collectors who are violating your rights.

The Tech Support Scam

This scam often begins on the computer and then happens over the phone. First, the scammer will install malware on your computer that wreaks havoc and prompts you to call a specific number for anti-virus support. Once you call, the criminal will pose as a tech support representative. Then, they will try to trick you into paying them to remove the malware they installed on your computer.

The IRS scam

This scam targets people already known to owe money to the IRS, such as those with unpaid tax bills. The fraudster will contact you claiming to be from the IRS and threaten to arrest you unless you pay immediately. They may even have your Social Security number or other personal information.

The best way to protect yourself from this scam is to never give any personal information over the phone unless you are absolutely sure it is a legitimate call. Also, the IRS will almost always send documentation via mail before attempting any other contact methods.

The Amazon Fraud Alert Scam

This one hits customers of Amazon.com.

The scammer will say they work for Amazon and tell you that your account has been suspended. They say that to keep it active, you must provide them with updated credit card information or a gift card number. You may also receive an email from “Amazon” asking you to click on a link to verify your information. However, the link will actually take you to a fake website designed to steal your personal information.

The best way to protect yourself from this scam is to never open links in unexpected emails or provide any personal or financial information unless it’s coming directly from Amazon.com.

Amazon will never ask you to provide your credit card information or password through email.

Getting Help

Here at National Legal Center, we see a spike in scams and fraudulent activity around the holidays year after year. If the matter involves a legitimate debt collector acting in an illegitimate way, contact our law firm for help.

With scam artists attempting to take advantage of people with these common holiday scams, it is important to be vigilant about protecting your personal information and finances. Do not respond if you suspect that someone is trying to trick you into giving up sensitive data over email, phone call, or text message.

Verify, verify, verify!

Make sure that the person is who they say they are and initiate the conversation from your side by calling a number you know to be legitimate. We hope these steps keep your holidays merry and bright!

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credit card lawsuit, debt collection lawsuit, unpaid credit card debt

November 19 2022

I’m Facing a Credit Card Lawsuit. Now What?

Team NLC Consumer Education, Consumer Protection, Debt Resolution

When you learn that you’re facing a credit card lawsuit, your next steps are crucial.

The debt settlement attorneys at National Legal Center are ready to help. First, you need to know what is happening and what your options are. In this article, we’ll review quite a bit of information related to debt collection lawsuits. These are usually filed by credit card companies and debt buyers who are attempting to recover unpaid debts.

Follow these quick-links to jump to a pertinent section. Or read through for a thorough understanding of the entire process.

Why Would a Credit Card Company Sue Someone?

You may be wondering why a credit card company would sue you. Creditors can file lawsuits for various reasons. However, we’ll be focusing on the most likely reason a credit card company would sue a consumer: unpaid credit card debt.

The credit card company could file a credit card lawsuit if you break the terms of the contract.

Lawsuits due to unpaid credit card payments are essentially the result of a breach of contract. Sometimes these claims are filed as an Account Stated action or an estopel claim, but at the root of it, these are the creditor suing for money over a debt.

Your contract with your credit card companies outlines a specific set of terms and conditions. You agree to follow these terms when you sign up for credit with the credit card company. You make charges on your credit card which means you now owe the debt. Breaching this contract means not following the terms outlined in the credit card agreement. Specifically, failing to make your monthly payment.

Now, you aren’t likely to be sued for missing one credit card payment. Sure, it’ll affect your credit score if it goes more than 30 days late, but creditors are not expected to file a lawsuit for unpaid debts after a short period. However, long-term credit card delinquency can lead a credit card company to file a case due to the breach of contract.

Steps in a Debt Collection Lawsuit

You miss several monthly payments on a credit card debt.
Your account goes through a charge-off process with the original creditor.
The current creditor places the account with a debt collection law firm (or sells it to a debt buyer, who does the same).
That creditor or collection firm files a debt collection lawsuit with the courts.
A sheriff or process server delivers a written notice, usually called a summons, to you in person, posted at your home, or notice is mailed to you.
The summons lists a timeframe of how long you have to respond, often 30 days or less.
If you were served and do not respond at all, a default judgment will likely be entered against you.
After service if you respond to the summons the court will likely schedule a hearing.
Once a judgment enters, the collector can pursue post-judgment collection. This may include potentially garnishing wages, putting a lien against real estate, or taking money from your bank account depending on your state and financial situation.

Let’s assume you do NOT want this lawsuit to lead to wage garnishment, liens against your home, and dealing with bank account levies. If this is the case, you don’t want to ignore the summons. There may be times when allowing a default judgment to enter IS your best strategy. A knowledgeable attorney who is familiar with your situation and state laws can help you understand when, and why, that might be appropriate.

Let’s take a look at the two preferred options: having your day in court to defend yourself or settling the debt.

Don’t Ignore a Credit Card Debt Summons Unless You Know Your Risks

The credit card company has filed a debt collection lawsuit, and you have received a court summons. Now it’s time to defend yourself against the suit. As soon as you receive the summons, act quickly! Your number one priority should be to retain an attorney.

Contact National Legal Center at 800-728-5285. Our Case Analysts are experienced in debt collection lawsuits and are glad to provide consumers with a free consultation. Our debt relief attorneys can help you understand your rights and assist you in any debt settlement negotiations you might have.

Legal Options For Handling a Credit Card Lawsuit

If you’ve received a summons, you have several options to deal with the matter. The best approach will always depend on your particular circumstances. Let’s look at several proven strategies to dealing with a debt collection lawsuit.

File an answer to the lawsuit

After speaking with a debt settlement attorney, you may decide it is appropriate to file an answer to the lawsuit. An answer is a formal written response that contests the suit.

You may be able to file an answer without retaining an attorney by completing forms available through the court or online and filing them yourself in court. Given that this is a serious legal matter, though, we do encourage retaining an attorney.

If you choose to file the answer, it is crucial to meet the deadlines as outlined by the court. Failing to do so can result in a default judgment against you.

Once you’ve filed your response, you will likely have a court hearing scheduled. In addition, this also buys you more time to work with the debt collector. You may be able to arrange a payment plan, settle credit card debt, or consider other legal advice your attorney may provide.

Negotiate a settlement with a debt collector

Whether you choose to file an answer to the lawsuit or not, you may have the option to negotiate a settlement. This is where you repay a portion of the debt owed.

It is best to consult with an attorney experienced in debt collection lawsuits. They can deal with the debt collectors and help ensure that any credit card debt settlement agreement you reach is fair and meets your needs.

A debt settlement plan with the law firm that has filed the lawsuit can help you pay the account without further legal action. The best deals are usually paid with a lump sum payment of money.

The good news is that our firm is very familiar with this process. We explore putting a payment plan in place if your attorney feels is your best option. Or, you may save money each month to work toward a settlement in the future while minimizing your risk along the way.

There are many options to deal with lawsuits for unpaid debt. Once you’ve retained our firm and established an attorney-client relationship, we’ll assess your situation to determine the best approach.

Minimize your risks

When you are facing a lawsuit, you may not have any spectacular options available.

You may not have enough money in your bank account to offer a reasonable settlement. You may be dealing with an overly aggressive credit card company or debt collector who won’t consider an affordable payment plan.

In situations like this, you may want to buy yourself some more time and minimize your risks.

When a judgment is entered, a credit card company or law firm may enforce the judgment in a few ways. Not all of these are available in all states. It helps to check with an attorney licensed to practice law in your state. The most common ways they’ll attempt to enforce the judgment are:

wage garnishment
bank account levy
the seizure of personal assets
liens against real estate

When you work with the legal team at National Legal Center, we’ll help you understand your risks. We want to protect you and your assets whenever possible.

By understanding your risks, you may be able to identify ways to minimize them.

File bankruptcy

Sometimes, credit card debt settlement or a payment plan is not possible, and you cannot minimize your risks to the point of feeling comfortable. When this is the case, you may want to consider filing bankruptcy.

Chapter 7 and 13 of the federal bankruptcy code are available for credit cards and other unsecured debts, like medical bills.

To file for protection, you will should work with an attorney to navigate the process of bankruptcy court.

There are complex court rules that you’ll need to follow. Once you’ve paid your legal fees, your attorney will notify the debt collector or law firm that filed the lawsuit that court rules protect you once you’ve filed bankruptcy. They’ll also inform any other debt collection agency or creditor that is in the picture as appropriate.

Know your rights

When you are facing legal action for unsecured debt, it’s essential to understand your rights. Suppose a debt collector violated federal law or the statute of limitations has passed. In that case, you may have a solid affirmative defense.

Let’s take a look at some of your rights as a consumer.

Fair Debt Collection Practices Act (FDCPA)

This federal law intendeds to protect consumers from harassment and abusive debt collection practices. The FDCPA requires debt collectors to adhere to a minimum standard of business practices.

There are many ways that collection agencies may have violated the FDCPA, including:

False statements: Debt collectors may not falsely represent the amount you owe. They cannot claim they can or will take actions that they are not able to take to collect from you.

Harassment: The FDCPA prohibits debt collection agencies from harassment, including using threats of violence or intimidation to get you to pay what you owe.

Unfair practices: Collection agencies are prohibited from engaging in unfair practices like contacting you at unreasonable times (before 8 AM or after 9 PM), or telling others that you have unpaid debt.

If a debt collector violates the FDCPA, they could be liable for damages of up to $1,000, and attorney’s fees. In some cases, making a counter-claim against them under the FDCPA may prompt them to ask that the court dismisses the suit.

Even if this doesn’t prompt the debt collector to dismiss the suit, it may prompt them to accept a reasonable payment plan or a settlement on the account.

Statute of Limitations

Depending on how long it has been since the account fell behind, the plaintiff may not be allowed to bring a claim against you.

For some types of debt, there is a time limit the creditor has to file a lawsuit which is called the “statute of limitations.” This is often 4-6 years from when your account became overdue, depending on the state. If this timeframe has passed, you may have an affirmative defense stating that they can no longer pursue legal action against you in court for money owed under state law. It is best to speak with your attorney to determine the correct statute of limitation that applies in your state and the specific type of debt you have.

Talk to an attorney.

If you’ve been sued for credit card debt by Midland Credit Management, Portfolio Recovery Associates, or any other creditor or debt buyer, you may have many options. Knowing your credit card rights can help you deal with legal action by creditors and credit card collection agencies. If you’re not sure where to start or what to do next, it’s best to consult an attorney who specializes in credit card law as soon as possible.

That’s where the experienced professionals at National Legal Center come in.

What is National Legal Center?

When facing a debt collection lawsuit, you need an attorney who knows what you’re up against. National Legal Center is a multistate consumer rights law firm that has helped thousands of consumers deal with lawsuits by credit collection agencies and creditors.

Our knowledge and experience can guide you through debt collection lawsuits. If you would our assistance, call us today at 1-800-728-5285 for a free confidential consultation.

We’ll help you understand what a collection agency can and cannot do, how the lawsuit affects your credit report and credit score, what to expect from the credit card companies, and much more.

Why can you trust National Legal Center?

We are debt relief attorneys.

As debt relief attorneys, we have seen first-hand how credit cards can quickly spiral out of control. We know what it takes to help you find credit card debt relief. And most importantly, we know how to deal with credit card lawsuits brought by creditors against our clients.

National Legal Center is an accredited member of the Better Business Bureau. We presently maintain an A+ rating, and we welcome you to check out the reviews our clients have left for us with the BBB.

Here’s what our clients have to say about us:

You can be our next success story.

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October 16 2022

Debt Relief Scams Are Back. Financial Professionals Can Save the Day.

Team NLC Consumer Education, Debt Resolution

Key Highlights

Debt settlement and credit counseling companies have seen a 20% increase in organic web traffic in the past six months
For-profit debt relief sales representatives are incentivized to sell their solution… even if it doesn’t solve the consumer’s problem
Financial professionals can help their clients find real solutions for their financial troubles and spot dangerous debt relief scams

Recession Signals from The Debt Relief Industry

The industry has been relatively quiet since those regulations were imposed and the economy settled down…until now. From calls from figureheads like Jamie Dimon of Chase Bank to more tangible economic indicators, economic turmoil has people’s attention. And opportunity looms large for the debt relief industry.

Debt settlement companies and the businesses that support them are beginning to pop up again, just like they did during the last financial crisis. I’ve been in the debt relief space since 2008, and old names are popping up left and right- some with a grin, others with a cringe.

Not only are old players coming back into the mix, but data suggests the industry may be poised for a boom, too. Looking solely at direct website traffic (which does not come from pay-per-click ads) gathered from data analytics platform SEMRush, some major debt settlement and credit counseling companies appear to have seen a 15-20% increase in their organic web traffic in the past six months.

Also, Google search volume for several key phrases related to our industry-phrases such as debt relief, debt relief services, debt relief attorney, and debt settlement attorney- is up 900% since last year.

A Lull In Demand

It’s important to note that consumer need for the help of debt settlement companies and bankruptcy has been at a historic low. The lull of demand over the past few years contributes greatly to the dramatic spike in demand suggested above.

Due to many economic factors way more complex than I can properly convey, consumers haven’t had a real need for debt relief companies in the past few years. Stimulus programs, bank-offered hardship relief, lifestyle adjustments, debt forgiveness, and more have all allowed people to “be okay.” Now, it seems the swings of inflation, deflation, and everything in between have become unmanageable for some again.

Credit Card Delinquency Rates Moving into 2023

One strong economic indicator that drives the debt relief industry is the credit card delinquency rate. This statistic does not consider payments that are just a few days late, as delinquency technically only happens 30 days after nonpayment. Here’s a look at the credit card delinquency rate from 2000 to the present.

The spike in delinquency rates in 2008 is no surprise. That’s when the financial world came tumbling down. We saw a major correction as banks faced pressure to rein in the delinquencies (that actually made them a tremendous amount of profit) with the implementation of the CARD Act of 2009, but the damage was already done.

Even after those corrections lowered the delinquency rate, the pandemic brought unexpected forms of relief, putting the credit card delinquency rate at a historical low from 2020 through 2022 as indicated in the chart above.

Credit card delinquency rates are still at a historic low, but the curve has turned, and all the external signs seem to indicate it will continue to rise. The debt relief industry really settled down once delinquency rates dropped below 3% in 2012. If the credit card delinquency rate is as tied to consumer demand for debt relief services as one might imagine, it makes sense to see increased web traffic as delinquency rates are rising.

Between keeping our ear to the ground and the data we’re seeing, the internet and the debt relief industry clearly expect a significant uptick in demand for our services in the very near future.

Why This Matters to Financial Professionals

As a financial professional, it’s important to know how to guide your clients to help they can count on and how to spot a debt relief scam. You are the person and people who will be on the front lines when things start to go south for your clients. They will come to you for help.

Last time, the best anyone could really do was offer a generic suggestion to find a debt relief company without direction. Consumers without direction will succumb to marketing. They’ll call a number from a radio ad, tv commercial, or internet ad. Then, they’re sold on a solution that wasn’t really right for them in the first place. For-profit companies have one goal, to make money.

The moment a for-profit debt relief company has someone on the phone, the sales representative is trained to sell that person their solution. Even if it might not be the best solution for the consumer, or if it could damage their financial future, a sales representative that is commissioned to enroll people for the shortest term possible could make bad suggestions. It’s not uncommon to hear that people were encouraged to withdraw funds from their 401k to pay off debt. We know this is almost always a bad idea. But when a blissfully ignorant young sales agent wants to earn a paycheck and please their equally ignorant manager, bad things happen to good people.

This is a big problem, and it’s one that is difficult to overcome, but it is solvable.

The debt relief industry doesn’t have to be a shadow industry. It can do a tremendous amount of good if the right people get connected with the right solutions.

The Need-to-Know About Debt Relief Programs

Here are three things you can do to prepare for the blast of manipulative debt relief marketing we’ll all experience:

1) Get a quick understanding of the solutions provided by the debt relief industry (debt resolution, credit counseling, debt settlement, bankruptcy, etc.)

2) Know when to refer someone to a debt relief attorney or other debt relief program for help.

3) Educate your clients about how to avoid debt relief scams and find the help they actually need.

We’ll be breaking down all three of these topics in future articles, but for now, we’ll share a high-level overview of what really matters.

Understanding the National Debt Relief Industry

If you ever had a call where a client says they’ll be chatting with their auto insurance agent about opening a new bank account, you’d quickly point out the flaw in their plan. Likewise, you don’t want to let someone who is facing a debt collection lawsuit call a credit repair company. They’re just not the pros for the job.

Let’s begin with an overview of the types of companies involved. There are four main types of companies in the space, and a fifth that is more or less just a scam.

Debt Relief Attorneys

That’s us. We help people understand and evaluate their legal risks when it comes to debt and credit. We help them consider the risks involved with any decision they might make, whether that be our strategies to help them resolve debt without bankruptcy, filing for bankruptcy, or dealing with a debt collector that’s harassing them, all while working to protect their wages and assets from aggressive collection tactics.

Our law firm provides the debt negotiation services offered by debt settlement companies (whom you’ll learn about below), except our state-licensed attorneys can offer legal advice on legal matters, all for a similar cost to a for-profit debt settlement company. We also use other legal strategies to protect the client and help them obtain the best possible outcome to reach their goals.

Law firms are subject to ethics rules under the American BAR Association, which discourage law firms from suggesting our legal service if we think there’s a better one available. So, while most people are able to get back on track without needing our services, we’re an excellent starting point for a consumer in debt. National Legal Center is a consumer rights law firm helping people in 36 states and growing.

Who do we help in a nutshell? People who are overwhelmed with unsecured debt. People on a fixed income who are choosing between eating and paying their debts. We can keep it that broad for now, or you can learn more about our legal services.

Want to connect people to us? Have them call 800-728-5285, or they can visit us at nationallegal.com. Want to connect people to us regularly? Line up a chat about how we can help your people.

Credit Counseling Agencies

These are typically non-profit companies that help people develop a budget and work with their creditors to set up a debt management plan which is a roundabout way of debt consolidation. They can also help people find the appropriate solutions for them.

So long as you’re connected with a reputable credit counseling agency (we do have our favorites) which you can find through the US Justice Department, you can be relatively sure you’re connecting them with the good guys.

Debt Settlement Companies

With fewer rules on their marketing than law firms or non-profit organizations, for-profit debt settlement companies are probably the loudest of advertisers.

These companies are best for straightforward situations where a consumer is unable to avoid charge-off, which happens after around six months of delinquency on unsecured debt. The goal is to settle the debt for less than what’s owed. Trouble looms here when consumers receive a wink-wink nudge-nudge to default on their debt when they really didn’t need to. The new rules are supposed to prevent that, but scripts are easily designed to convey messages without saying them.

Credit Repair Organizations

These companies claim to help people improve their credit scores by disputing negative items on a credit report. This is good if there are truly incorrect items and the consumer doesn’t have the interest or know how to mail off a letter and follow up with it. It’s a perfectly fine process, but it has been made to seem incredibly complex when truly it isn’t.

Credit repair is not a financial solution. It is a solution to credit scores which are a surface-level problem. It does not eliminate debt, lower payments, or make anything go away from anywhere other than a credit report.

Also, and this is important when a valid delinquent debt is challenged by a credit repair company, the creditor has just been forced to gather up all the information they need to file a debt collection lawsuit. The companies that people pay to improve their credit are doing exactly what people hire them to do, but the flaw is that it creates a greater risk for the underlying problem, which is the debt.

Debt Validation Companies

Another entity that is very much in the shadows is debt validation or debt elimination companies. These are horribly risky and are essentially outright scams.

Debt validation may have some proper use case somewhere that is valid for consumers, but it’s sure hard to find, and very few consumers will be capable of determining if that is actually a valid approach for them. These companies use the most egregious of business tactics, using tricky language and claiming straw man legal theories to say a debt isn’t valid and therefore does not need to be repaid.

The consumer has to pay them a big fee that is much more manageable than their monthly credit card payment, and in return, the company will convince them that all their problems don’t really exist because the debt isn’t valid. Then the consumer gets sued, a judge says the debt was valid all along, wages are garnished, and the debt validation company disappears after pointing to something in their contract that is meant to think the consumer is prevented from taking action against them.

There are some situations where debts really aren’t valid. Some really can’t be enforced due to state and federal laws. But these situations are rarely the reality for a consumer who calls us. Yes, it may happen over time and with intentional and ethical strategy, but it’s certainly the exception rather than the rule, and companies who claim otherwise are using incredibly misleading and downright unethical business practices.

2022 Brings A New Era for Debt Settlement Programs

While I am presenting my experience as a legal marketer with an understanding of the debt relief space, there are others within the firm who can share a different, deeper perspective, too.

An Emphasis on Risk and Risk Management

For an update on some of the challenges debt settlement companies may face as the credit card default rate rises, I turned to our law firm’s Director, David Gelinas. Gelinas shared that “assessing a consumer’s legal risk during the initial consultations is central to providing sound debt relief advice.

Just as a licensed investment consultant should assess an individual’s comfort level of risk when considering an investment, a consumer considering debt relief should be made aware of their potential legal risks so they can make an informed decision if debt settlement is right for them. A risk assessment should not only include the consumer’s individual situation (i.e., Assets at risk and source of income, etc.) but should also include an assessment of the laws of the state in which the consumer resides.”

Further, Gelinas says, “debt collection lawsuits are far more common during the debt settlement process than people are led to believe. Potential clients should be aware of what legal assistance will be available should a lawsuit ensue. Non-attorney debt relief consultants typically downplay the legal risks associated with the debt settlement process.”

Gelinas says that only licensed attorneys should provide consumers with a legal review of their potential legal risks. However, he also acknowledges that debt settlement companies are in a difficult spot when it comes to discussing potential legal risk because doing so may be considered the unauthorized practice of law (UPL). While it’s often standard practice for debt settlement consultants to tell potential clients not to worry about lawsuits or that they have an attorney network they can be referred to if a lawsuit occurs, the time to assess a potential client’s legal risk and develop a legal strategy should be done at the beginning of a debt relief plan, not later.”

Debt Buyers are Faster to File

I also spoke with our Practice Administrator, Attorney Michelle Creeden, who recently shared something interesting in a meeting. I reached out to ask her to expand on what she had shared.

“We have been seeing a push lately for debt buyers to send their accounts out to law firms right away. In the past, the accounts would have been sent to debt collectors first to see if money can be recovered without the added pressure and expense of litigation. Now debt buyers are hiring law firms and heading straight into court to secure a judgment against consumers.”

This is just another step in the long-growing trend of debt collectors over-leveraging the court system to put heavy pressure on debtors.

The Solution Lies In the Problem

Just as debt buyers are going straight to law firms, so too should the people who owe them money.

As Director Gelinas shared, debt settlement companies cannot offer legal advice or assist a consumer with a lawsuit. They may tap into attorney networks, which can have excellent value but are detached and limited by being a reactive approach rather than a proactive one.

Debt settlement companies do still have their place, but consumers are more likely to be sued if they stop paying their credit cards than they used to. It’s a real hurdle the industry will face this time around. If they don’t do it proactively, consumers can get hurt.

Again, the solution is that people who need help with debt should speak with an attorney who is familiar with the laws of their state when it comes to debt and debt collection. This way, their risk can be assessed from the very beginning, and their approach to resolving debt is based on risk and goals rather than a shallow consideration of their actual financial needs.

Here’s Where Financial Professionals Come In

Debt is a very real and difficult thing for people. When debt becomes overwhelming, people need help, clarity, and understanding of their options.

The debt relief industry has changed a lot in the past few years and will continue to do so. New companies are forming all the time to help people with their debt. But you can’t just recommend any company that comes along. You need to do your research and know where you’re sending someone.

On that note, financial professionals do need to be familiar enough with debt relief companies to make recommendations when someone asks. Otherwise, the people who trust you for their financial, insurance, and investment needs could land in the wrong place and be taken advantage of.

To best serve the people who come to you for help with debt, you’ll want to know who to send them to.

How to Vet a Debt Relief Company

How long has the company been in business?

If they’ve not been in business for more than five years, they haven’t had a chance to prove their debt relief solution. Remember, these solutions take years.

Are they accredited by the BBB?

Some arguments against the BBB are valid, but the company should at least be around long enough and well-established enough for the BBB to recognize them. If the BBB doesn’t know who they are, they haven’t earned enough credibility to earn a confident referral.

Are they a member of AFCC, IAPDA, BAR, or other (real) associations?

Much like the BBB, this is subjective. Sometimes an association is little more than a fee for a stamp, but real ones will provide oversight and regulation of their members. Again, what we’re looking to do is establish credibility.

Do they have good (legit) reviews online?

It’s okay if they don’t have a ton of reviews. People don’t really like to speak publicly about being in debt, and there are big privacy concerns with companies sharing clients’ names. Nevertheless, debt relief customer reviews indicate how the company operates. Take some time to read them and remember that real businesses aren’t perfect. The humans that operate the businesses make mistakes, and it’s okay to see 3 and 4 stars now and then.

How do they treat customers?

You can call with general questions or complete an online quote request to see how they treat a potential customer. If your intent is to vet them to send them referrals, most businesses would appreciate that effort rather than condemn it.

If they’ve passed all that, your next step is to take a gut-level “sneak peek behind the scenes” look at their messaging and their business practices. Both are very easy to find if you know what to look for.

Will they turn someone away if they aren’t the right fit?

One of the most important indicators is to try to see how hard they’ll try to put a round peg into a square hole. Companies that have holistic approaches to refer consumers to their needed solution without a referral fee are setting the gold standard for the debt relief industry. Those that do it with a referral fee (if it’s even legal in the situation) should disclose it to the consumer.

Do they present their service as a helpful solution to an existing problem, or are they attempting to manufacture need?

If you go on their website (and if they don’t have a website, there’s little reason to look any further, by the way. That’s a low bar to fail.) and it feels like they’re trying to convince or even subtly trick the visitor that they need their debt relief service, you know that conversions are more important to the company than the client’s actual needs. It’s that simple.

Help Them Get Help and Avoid Scams

When a client shares their desperation with you about their financial situation, it’s easy to want to do something. But, if you’re not careful, that can lead to doing the wrong thing. Here are some basic tips for you to help your clients get the help they need without getting scammed:

1. Listen to their story

More than ever, people need to be heard. You may not offer the solution that they need, but there’s a good chance they’re going to share something valuable that helps you learn where to send them so they can get the help they do need. In doing that, you build a long-lasting relationship with the person, building deep customer loyalty.

2. See if you can right-fit them

Can you determine which company they’re best to speak with? If they have a lawsuit or a complex situation, it’s good to speak with a debt relief law firm like ours. The consultation is free, and if we can’t help or see a better fit, we’ll say it. If the person is current on their accounts and is feeling the pressure, a credit counseling agency is a way to go.

Since both law firms and non-profit credit counseling agencies are required to consider all available options, both of those should be spoken with before going the route of a credit repair or debt settlement company.

3. Encourage the vetting tips

As we shared earlier, it’s important to only work with established, reputable companies. If the consumer seems able to go through that vetting process on their own, wonderful. If not, it might be good to have a company or two lined up in advance so you can give a confident suggestion.

4. Educate your clients about the process

With just a little knowledge of each business type, you’ll be able to share enough information for a consumer to make an educated decision. In almost all cases, a credit counseling agency is a great, safe first place to start.

Calling Financial Professionals To Action

Debt relief companies get their customers from marketing channels just like every other business and financial professional. The difference is that people don’t talk about debt, and the industry has intentionally lived in the shadows so that they have control over the messaging and how customers reach them.

If financial professionals can become informed, then consumers will become informed.

We should be able to trust that companies aren’t going to mislead people when they’re struggling. But we know that isn’t the reality. Scams are coming. It’s time to do your homework so you’re ready to help by sending people to the right places.

Debt Relief Scams Are Back. Financial Professionals Can Save the Day.

My current aim right is to get the word out about how people can avoid debt relief scams. I’m doing that by speaking to those of you on the front lines of personal finance.

Press and media: josh.richner@nationallegal.com
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The debt relief industry was in full swing during the 2008 financial crisis. Radio ads promising to “settle your debt for pennies on the dollar” blared across radio waves and infomercials. People in debt, desperate for help, responded. Unfortunately, while many of these companies attempted to provide a legitimate service, they were overshadowed by hordes of scams that preyed on desperate consumers.

Much-needed regulations came about in 2010 with the Federal Trade Commission’s amendments to the Telemarketing Sales Rule (TSR). The new rules effectively ended many of the more egregious practices in the industry. The players behind the scenes, and their ill-gotten profits, quickly disappeared.

A handful of people stayed and adapted. They learned how to operate a compliant organization in a post-TSR world, changed directions, reevaluated business models, and started helping people in broader, often more holistic ways.

As someone who stayed, I can say it feels like history is about to repeat itself.

And that needs a serious discussion.

September 25 2022

Break Free from the Minimum Payment Mindset

Team NLC Consumer Education, Financial Education, Miscellaneous

One of the worst traps you can fall into when you’re dealing with debt is the minimum payment mindset. This is when you convince yourself that as long as you’re making your minimum payments, you’re doing OK.

You might even tell yourself that you’re being responsible by not missing a payment. Sometimes, that’s the best you can do. If that’s the case, it might be time to speak with a debt settlement attorney.

Breaking free from the minimum payment mindset is one of the best things you can do for your overall #FinancialWellness. Here’s why:

Minimum Payments Keep You Stuck in Debt

In fact, that’s the plan.

Credit card companies and financial institutions make money by keeping you in debt. The longer it takes you to pay off your balance, the more interest you’ll pay.

And, if you only make your minimum payment, it will take a very long time to get out of debt. Just look at the numbers:

If you have a $5,000 balance on a credit card with an 18% APR and your minimum payment is $80. it will take you about 15 years to pay off the debt. And, you’ll end up paying about $9,900 in interest on top of your principal of $5,000. Yes, you’ll be paying almost twice as much as what you borrowed.

Now, let’s say you increase your payment to $100 per month. A simple $20 increase each month can lower the repayment period from 15 years to just under 8 years, and lowers your interest cost from $9,900 to $4,311.

The more you can add to your monthly payment, the better. But, even a small increase can have a big impact on how quickly you get out of debt and how much money you save in interest charges.

Minimum Payments Hurt Your Credit Score

Your credit score is one of the most important numbers in your financial life. It’s used to determine whether you’ll be approved for loans and lines of credit, and it can impact the interest rates you’re offered.

Credit card companies report your payment information to the credit bureaus every month, including the amount of the payment and whether it was made on time.

But does only making the minimum payment hurt your score?

It definitely can, especially if you are still using your cards.

While you’re doing a good job at keeping your payment history intact by making timely payments, your debt-to-credit ratio can be taking a hit. This is the amount of debt you’re carrying compared to your credit limits, and it’s one of the biggest factors in your credit score.

If you’re only making your minimum payments, you may be hurting your debt-to-credit ratio, especially if you’re still increasing the balances by using the cards.

Struggling with debt? There ARE options. Request a free consultation today!

Concept of business growth and financial investment, executives

September 8 2022

How to Know if You’re Being Crushed by Interest

Team NLC Consumer Education, Financial Education, Miscellaneous

A Mindful Money Test to Tell If You’re Being Crushed by Interest

You’ve been diligently paying off your debt, but it seems like you’re barely making a dent. Your balance is the same as it was last month, and you’re getting frustrated. Before you give up, it’s important to understand the role that interest plays in your debt.

Interest is the price you pay for borrowing money, and it can have a major impact on your ability to pay down an account. When you’re trying to pay off debt, you’re essentially in a race against time. The longer it takes you to pay off your debt, the more interest you will accrue, and the higher your balance will become.

Taking a Mindful Approach to Money

This is all simple in theory, but in actual practice we rarely think of what we’re paying in interest. It isn’t because we don’t think it’s important. It’s because credit card companies creatively set the information out-of-the-way so it rarely comes to mind.

But, with just a few moments of mindfulness, you can get a whole new perspective on the interest you’re paying every month. This 10 minute mindful money test will tell you if you’re being crushed by interest.

Gather Your Recent Billing Statements

For this exercise, you’ll need to have at least one recent credit card statement on hand. If you can, grab two or three months’ worth of statements, but only do the exercise with one month at a time.

If you don’t have physical statements, you can usually log onto your credit card issuer’s website and view them electronically.

Add Up the Interest You Paid

The first step is to add up all of the interest you paid over the course of the month. This should be listed as a single line item on your statement. If you’re looking online, you can use the FIND function on your computer to search for the terms “interest” or “finance charges.”

Jot down the interest charge on a piece of paper, and tally up how much you paid in interest.

Check Your Gut

Once you’ve arrived at your final number, take a few minutes to sit with the information you’ve jut learned. Jot down some thoughts if it seems helpful.

Take into account your immediate gut reaction. Did the number of digits to the left of the decimal point shock you, or were you relieved that it wasn’t more?

Next, (and this part is really important) think about what you got for that money. Do you feel like the ability to use the credit card was worth the price of the interest you’re paying?

We can’t provide a formula or calculator for this part, because it’s different for everyone.

Maybe you’re totally okay with the interest because of the convenience and rewards you get from using the credit card. Or, maybe you feel like the interest is totally unreasonable, and it’s time to focus on getting rid of the debt as quickly as possible.

There’s no shame in either reaction. The goal of this exercise is to get you thinking about your debt in a new way, and to help you make decisions about how to best take control of your financial future.

If you decide you don’t like the way interest is impacting your ability to pay off debt, give us a call. Our debt relief attorneys and their legal team will present clear options so you can find a solution that works for you.

Struggling with debt? There ARE options. Request a free consultation today!

April 3 2022

A State-Specific Fourth Stimulus Check Is Coming – Will You Get One?

Team NLC Consumer Education, News

A State-Specific 4th Stimulus Check Is Coming – Will You Get One?

Throughout the COVID-19 pandemic, we’ve seen significant assistance and relief offered by federal, state, and local governments. Some stimulus checks have been delivered broadly and to large groups of people, while others were issued based on income or need. So, we’ve all been wondering – will there be a fourth stimulus check?

The federal government has issued several stimulus checks to help citizens throughout the pandemic. With the current inflation rate in the United States at its highest since the 1980s, it’s only natural that everyone is curiously awaiting the fourth stimulus check release date.

While there won’t likely be federal stimulus payments in 2022, we can all use some extra money. If you live in specific states, a fourth stimulus check is coming. This time, economic impact payments will hit bank accounts thanks to state and city stimulus payments.

Read on to find out which cities and states are issuing stimulus checks and if you are eligible for one.

A Look at the First Three Rounds of Stimulus Payments

To help low and medium-income citizens through this crisis, the federal government has distributed large swaths of stimulus checks to eligible adults three times to date.

On March 11, 2021, the American Rescue Plan passed. $195 billion was given to 50 states, i.e., approximately $500 million for each state. The states have until 2024 to decide what they want to do with the money and until 2026 to spend it.

To provide direct assistance, the federal government distributed the first stimulus check of $1,200 in April 2020 for individuals, $2,400 for married couples, and an additional $500 per child under 17.

The second stimulus check of $600—plus an additional $600 for each dependent aged 16 and under—was distributed in December 2020.

Finally, the third stimulus check was sent in March 2021 as an advance payment of the tax year 2021 Recovery Rebate Credit. Along with this, many Americans received a child tax credit—and an advanced child tax credit— which allowed the IRS to deliver money to millions of bank accounts for filers who claimed a dependent. Those who opted out of the advance payments would be able to claim the child tax credit and receive a higher refund when filing their tax return.

There Will Be a Fourth Stimulus Payment – Here’s the Deal

So, now that we have established that there will be another stimulus check (just not from the federal government or the federal reserve bank), here’s what to expect.

Who Will Get the 4th Stimulus Check?

Who gets the 4th stimulus check will be largely determined on a state-by-state basis. Even then, most of them are hardship-based or limited to specific professions, so eligibility criteria also comes into play.

States offering some version of a fourth stimulus check generally allocate funds to help the unemployed, front-line workers, families with young children, and other subsets of the state population.

Colorful USA map with states. Vector illustration

These States Will Issue State-Specific Stimulus Checks

Some states using the allocated funds in the American Rescue Plan decided to use it to give stimulus checks to specific groups of people. Every state has different criteria. However, the common theme is that people from a particular income group or who experienced specific economic loss, such as unemployment, are eligible for the next stimulus checks or other pandemic assistance.

overwhelmed with debt? our law firm can help. Schedule your free consultation today.

These U.S. states are distributing state and occupation-specific stimulus checks to their residents:

Arizona: Benefits of up to $2,000 under Arizona’s Back to Work Program.
California: Checks are issued under the Golden State Stimulus program based on pre-pandemic income levels.
Colorado: Focused on assisting unemployed individuals and benefiting them up to $375.
Florida: Occupation-specific relief.
Georgia: Occupation-specific relief.
Maine: Occupation-specific relief.
Maryland: Up to $500 provided by the RELIEF Act for those who filed Earned Income Tax Credit in 2019.
Michigan: Occupation-specific relief.
Missouri: Occupation-specific relief.
New Mexico: Relief and resources for a variety of situations.
New York: Unemployment benefits under Excluded Workers Fund.
Vermont: Relief is provided under the Vermont Economic Recovery and Relief Package.
Tennessee: Emergency cash assistance for low-income residents and families that lost employment due to the pandemic.
Texas: Mortgage and rental assistance for Texas residents in need.

These Cities Will Issue the City-Specific Stimulus Payment

Many cities have decided to step up and distribute fourth stimulus checks. The common trend in these cities is an aim to help those hardest hit by the pandemic.

These are the United States cities that are distributing city-specific stimulus checks to their residents:

Chicago, Illinois: Monthly assistance to low-income individuals throughout 2022.
Los Angeles, California: A variety of programs and assistance to encourage food security and housing for low-income households.
Pittsburgh, Pennsylvania: Support programs and resources for unemployed individuals, artists, service workers, and more.
Seattle, Washington: Food, rent, and financial support for individuals significantly impacted by the pandemic.
Santa Ana, California: Emergency rental assistance through March 31, 2022.

These Professionals Will Receive Another Stimulus Check

The states and cities referenced above are issuing fourth stimulus checks to help in the pandemic. Some regions are also offering relief to specific professions.

Teachers: Florida, Georgia, Michigan, Tennessee, and Texas are issuing stimulus checks to contribute to teachers in their state. Each state has its own criteria to aid their teachers and funds will either go directly to the teacher or to the school to support teachers and education.
Front-Line Workers: Maine and Vermont are issuing stimulus checks to the personnel that worked in the pandemic.
Healthcare Personnel: Missouri is aiding the people working in mental health facilities, nursing homes, and correctional facilities.

What if You Won’t Receive the Next Stimulus Check, but Need Financial Help?

A fourth stimulus check can be a relief for people who’ve struggled during the pandemic and need a fresh start. However, if you aren’t in a state or occupation that is eligible for help but need financial support, there are alternatives.

Alternative Forms of Pandemic Relief Continuing in 2022

America has an active COVID-19 Economic Relief program. There are many plans and relief options provided to help people get back on their feet if they’re financially impacted by the pandemic. While most of the benefits are offered through government entities and non-profit organizations, it is worth reviewing the different efforts being taken to help.

In addition to the government relief programs, companies and services are available to help if you’re struggling financially. We’ll review several options worth considering based on your unique needs.

Debt Consolidation

If you have credit card debts piling up, it can get stressful. Consolidating your debts into one monthly payment can help you get organized and make it easier to pay off your balances.

Often, consolidation has the benefit of lowering your average interest rate, too. With rising inflation, it’s more important than ever to save extra money wherever possible.

Many financial institutions offer debt consolidation loans, or you can consider a balance transfer credit card. This approach is best when you are current on your debts and can continue to stay current, but can use a bit of a helping hand.

Debt Settlement

If you have a significant amount of debt on your shoulders and are behind or are likely to fall behind, debt settlement might make sense. You can take a DIY approach to settlement, work with a for-profit debt settlement company, or get the help of a debt settlement attorney. Many consumers may not realize that a debt relief attorney can help navigate debt without necessarily resorting to bankruptcy, but many legal strategies can be considered based on your needs.

Want to know a secret that debt settlement companies don’t want you to know? You can usually get legal representation from a state licensed attorney for the around same cost (or less!) than what is charged by debt settlement companies. Get a free consultation today!

The debt relief attorneys at National Legal Center can walk you through the entire debt resolution process on all your accounts. As with all options, negotiating settlements has pros and cons, so make sure you have a thorough understanding before getting started.

National Legal Center is a consumer rights law firm committed to helping good people overcome bad debt. Our team has worked with tens of thousands of consumers over the years. If you’re one of the American households struggling with debt, complete the form below to see if a debt settlement attorney can help you put your debt behind you once and for all.

Filing Bankruptcy

If you’re overwhelmed with debt and can’t afford the monthly payment needed for consolidation or settlement, you might consider Chapter 7 or Chapter 13 bankruptcy. Filing bankruptcy may feel like a last resort because of the drawbacks, but it can be an appropriate way to solve your debt struggles. We recommend you speak with a bankruptcy attorney to fully understand the option.

Not all attorneys at National Legal Center practice bankruptcy, but some do. Give us a call to discuss your situation. If we can’t help you, we’ll do our best to point you in the right direction.

Conclusion

Another stimulus check can be a breath of fresh air for people struggling during this pandemic. However, it’s not something you want to depend on. Even if you are likely to receive another stimulus check, it may not be clear exactly when you’ll receive it, and amounts can vary. Your best bet is to consider any pandemic relief funds to be a bonus. Build your budget and personal financial plan around your current income.

If debt has you down, we’re here to help you up. Complete the form below to #standuptodebt with National Legal Center!

Need a lifeline to help with debt? We can’t issue stimulus checks like the government, but our debt relief law firm can explore options with you. Request a free consultation today!

February 27 2022

4 Money Lessons to Help Your Children Avoid Debt

Team NLC Consumer Education, Financial Education

Too many people today are facing financial hardships because of their debt. Recent studies show that more than a third of Americans feel their financial situations have worsened over the past year.

If you’re among the multitude of people struggling to make ends meet due to debt, the debt relief attorneys at National Legal Center are here to help. We don’t just want to help you, though. We want to help your children, too! Here are four money lessons to help your children avoid debt.

1. Teach your children to envision financial success.

4 Money Lessons to Help Your Children Avoid Debt

Every parent wants their child to be successful. Success, of course, can be defined in a multitude of ways. For now, though, let’s focus on financial success.

Many people were raised to equate wealth with greed or that well-off people must have done something morally questionable along their path. Money doesn’t have to be vilified, though. There’s nothing wrong with encouraging your children to envision themselves as being financially successful in the future.

Ask your child to envision their future financial success. Ask them what it looks like. Allow them to imagine and let them bring you into that world with them. Having conversations like this will help them define financial success and adopt a mindset that creates a healthy relationship with money.

2. Teach your children the difference between debit and credit.

Recent surveys show that 79% of the national population embraces credit cards. However, while credit cards are very convenient, you can easily overlook that credit is just debt in disguise and can be harmful when not handled responsibly.

When discussing money with your children, you should explain the difference between debit cards and credit cards. Begin by explaining how using a credit card allows someone to buy something now and pay for it later, whereas a debit card directly pays for the transaction with funds in the bank.

You might also consider explaining the security benefits that come with credit cards over debit cards. Specifically, they limit the direct line of access to your bank account. Of course, as with many financial decisions, your child will want to understand how to weigh the pros and cons as they decide whether to use debit or credit.

3. Instill financial values intended to help your children avoid debt.

There’s a lot of buzz about bringing financial education into public schooling curriculums. National Legal Center Principal Attorney, Arthur Kohler, emphatically embraces the initiative and believes it can benefit our next generation tremendously.

In addition to bringing financial education into schools, we need to instill financial values, which starts at home.

There are a few financial values that can help your children avoid debt.

First, your child should know the importance of saving. If you teach them about money from an early age, it shouldn’t be challenging to guide them to understand that saving is essential to avoiding debt and securing their financial future.

Second, make sure your children understand the importance of living within their means. They need to know that debt is not a way of life, and they must always make an effort to spend and save responsibly.

Next, instill in your child that credit can be helpful, but it can also be dangerous. Make sure they know that credit is a tool they should use responsibly. Credit cards are heavily marketed and can seem exciting, but your child should understand how credit leads to debt if not used correctly.

Finally, we come to gratitude. It is so easy to fall into the trap of comparing ourselves to others and aligning our worth or success to others’ material belongings. Helping your child find gratitude for the things they have—especially the non-tangibles—will make it easier for them to ignore that yearning that we all experience.

4. Encourage your child to be open about finances (by being open yourself).

Studies show that children learn lessons more quickly than adults. We know this to be especially true when it comes to learning languages—the more they hear it, the easier it is for them to learn.

So, let’s apply this same concept to money matters.

The younger your child is when they begin to learn about money—and the more they encounter discussions about it in their home—the easier it will be for them to understand the concepts. Parents can encourage their children to be open about finances by being open about their own finances.

You can further your child’s understanding of finances by talking with them about how you manage your money. Specifically, share the struggles you have faced, those you’ve overcome, and those you’re still working through.

Most of us face financial insecurity at some point in our lives.

Teach your child that this is normal and that even the direst of debt can be resolved by being willing to speak with others and get help when needed. You have the opportunity to show them how to put this into practice by ‘walking the walk.’ This is the rare situation where that actually happens by ‘talking-the-talk’!

Be honest and open with your children about the power of getting the right advice and how it can change lives for the better.

Perspective: Ellen Rogin

Financial education is a passionate topic for many of us here at National Legal. Admittedly, though, it’s not our pure focus. We are a law firm. We help people #standuptodebt, assert their rights as a debtor, and use legal strategies to solve their debt difficulties.

Ellen Rogin, though, is an expert in financial education.

Here is her TedTalk, where she offers actionable suggestions to help your kids avoid debt.

In Conclusion

By instilling these financial values early on, your children will have a much easier time avoiding debt as they get older. They will know not to fall for the credit card hype, and they’ll come to understand that overspending (and the debt that comes with it) doesn’t need to be a way of life. Instead, encourage them! Be open with them and lead by example, even when it’s tough.

If you’re overwhelmed by debt and need a helping hand, let us lead the way. The compassionate legal team at National Legal Center is ready to guide you to a debt-free future, one step at a time.

Struggling with debt? There ARE options. Request a free consultation today!

Consumer Education

Types of elder abuse

Financial exploitationDomestic and sexual violencePhysical violence and neglectStarvation and mistreatmentPsychological abuse

Know the signs of abuse.

Hurdles preventing help

Unable to advocate for themselves

Shamed into silence

6 out of 10 elder abusers are relatives… but that’s not the whole story.

Limited access to technology

How does a person make an elder abuse report?

Additional resources

Schedule a Free Debt Consultation with National Legal Center

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What is the Cost of Living Adjustment in 2023?

How is the Cost of Living Adjustment Decided?

2023 Cost of Living Adjustment (COLA)

How To Calculate your 2023 Social Security Benefits

Example:

Debt is Different on a Fixed Income

The Real Cost of Senior Debt

How SSI Beneficiaries Can Get Out of Debt

Schedule a Free Debt Consultation with National Legal Center

Social Security Administration Announced 2023 COLA

Sources

The Grandparent Scam

The Fake Charity Scam

The Covid-19 Scam

The Phishing Scam

The Prize Scam

The Fake Check Scam

The Shipping Scam

The Fake Debt Collector Scam

The Tech Support Scam

The IRS scam

The Amazon Fraud Alert Scam

Getting Help

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Why Would a Credit Card Company Sue Someone?

Steps in a Debt Collection Lawsuit

Don’t Ignore a Credit Card Debt Summons Unless You Know Your Risks

Legal Options For Handling a Credit Card Lawsuit

File an answer to the lawsuit

Negotiate a settlement with a debt collector

Minimize your risks

File bankruptcy

Know your rights

Fair Debt Collection Practices Act (FDCPA)

Statute of Limitations

Talk to an attorney.

What is National Legal Center?

Why can you trust National Legal Center?

You can be our next success story.

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Key Highlights

Discover how financial pro's are teaming up with NLC to help consumers overcome investment-stopping debt

Recession Signals from The Debt Relief Industry

A Lull In Demand

Credit Card Delinquency Rates Moving into 2023

Why This Matters to Financial Professionals

The Need-to-Know About Debt Relief Programs

Understanding the National Debt Relief Industry

Debt Relief Attorneys

Credit Counseling Agencies

Debt Settlement Companies

Credit Repair Organizations

Debt Validation Companies

2022 Brings A New Era for Debt Settlement Programs

The Solution Lies In the Problem

Here’s Where Financial Professionals Come In

How to Vet a Debt Relief Company

How long has the company been in business?

Are they accredited by the BBB?

Are they a member of AFCC, IAPDA, BAR, or other (real) associations?

Do they have good (legit) reviews online?

How do they treat customers?

Will they turn someone away if they aren’t the right fit?

Do they present their service as a helpful solution to an existing problem, or are they attempting to manufacture need?

Help Them Get Help and Avoid Scams

1. Listen to their story

2. See if you can right-fit them

Financial exploitation
Domestic and sexual violence
Physical violence and neglect
Starvation and mistreatment
Psychological abuse

Struggling with debt? Use the form below to get in touch with us.

Name *
First
Last
Email *
Phone
State *
Message

Struggling with debt? Use the form below to get in touch with us.

Name *
First
Last
Email *
Phone
State *
Message

Complete this form to get started today.

Name *
First
Last
Email *
Phone
State *
Message