Consumer Protection

February 13 2024

Silent Safeguards: 5 Stealthy Ways to Resist Debt Collection Pressures

Team NLC Consumer Protection, Debt Collectors, Debt Resolution, Financial Education, Miscellaneous

Dealing with debt collectors can be a nerve-wracking experience, but there’s no reason to make it easy for them to make life difficult. There are several subtle steps you can take to defend yourself and your financial well-being.

In this article, we’ll share five subtle strategies to help you navigate the challenging waters of debt collection, from knowing your rights to clever tactics that can help you stay ahead of the game. By the time you’re done reading, you’ll be equipped to handle collections with a new confidence.

Let’s dive in and learn how to protect yourself from debt collectors.

1) Empower Yourself by Knowing Your Rights

Understanding the Fair Debt Collection Practices Act (FDCPA) is your first line of defense against aggressive debt collectors. The FDCPA is a federal law that sets the standard for how debt collectors should conduct themselves. By closely acquainting yourself with the provisions of the FDCPA you put yourself in a stronger position to challenge any unethical collection practices.

For example, this act outlines when and how collectors can engage with you, forbidding them from calling at odd hours or at places like your workplace if you’ve informed them it is unacceptable. Knowing that you have the right to demand all communication in writing is crucial, as it provides a paper trail for any potential legal action. If collectors persist in harassing you after you or your debt settlement attorney sent a cease and desist letter, they’re in violation of the FDCPA.

By being well-versed in your rights, you can proactively address and even prevent issues arising during debt collection efforts. Not only does this knowledge deter collectors from using intimidation tactics, but it also offers confidence to stand your ground and protect your financial well-being.

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2) Don’t Overshare on Social Media: Your Digital Footprint Exposes More Than You Think

Social media platforms like Facebook and LinkedIn can inadvertently become tools for debt collectors to gather information about your job your lifestyle and even locate assets. A former debt collector noted how such platforms are leveraged to collect data that could be used against you.

How debt collectors use social media:

Photos of Work Identifications or Uniforms: Debt collectors may use pictures you post that inadvertently display your work ID or uniform to determine your place of employment.
Updates on Job Changes or Promotions: Announcements about job changes, promotions, or other career milestones can give collectors insights into your financial status.
Family and Relationships: By looking at your relationships, collectors can identify potential contacts or co-debtors related to your financial liabilities.
Check-In Locations: Your check-in posts at various locations can reveal patterns in your lifestyle and potentially even your home or work address.
Celebratory Financial Posts: Posts that celebrate big purchases or financial milestones might suggest an improved ability to pay debts.
Fake Recruiter Profiles: Debt collectors may use fake LinkedIn recruiter accounts to connect with you, making it easier for you to lower your guard and share personal information.
Public Friend Lists and Networks: Collectors can peruse your friend lists and network connections to gather additional points of contact.
Consistent Use of Hashtags: Specific hashtags related to work or spending habits can help collectors build a profile of your financial behavior. #splurgespend #treatingmyself

Maintaining privacy online makes it more difficult for debt collectors to assess your financial standing or property ownership, which could otherwise lead to more aggressive collection strategies. By being mindful of your activities on social media, collectors are less likely to contact friends or family members, preserving your relationships and reputation.

By controlling what information is available about you, you keep the power in your interactions with debt collectors and reduce your visibility as a target for their actions.

3) Smart Banking Shields You From Unexpected Withdrawals and Levies

Debt collectors often try to continue drafting automatic payments directly from your bank accounts. But did you know you have the right to cancel automatic transactions that you no longer authorize to protect your money from automatic withdrawals?

Banking tips when you have debt in collections:

Set Up Separate Bank Accounts: Establishing a bank account that isn’t linked to any debts can safeguard your funds. A new bank account is especially important if you wish to revoke authorization from companies you temporarily granted permission to withdraw funds automatically.
Avoid Automatic Payment Plans: Opting out of automatic payment setups ensures you keep control over when and how much you pay, preventing any unwanted surprises from automatic debits.
Separate Protected Income: Some forms of income, such as SSI, SSDI, many pensions, and child support are exempt from debt collection. By depositing these funds into an account that’s separate from any other debts, you can protect that money should a collector attempt to garnish your bank accounts.
Direct Deposits to a Secure Account: Have your income directly deposited into an account that isn’t connected to your debts. This prevents debt collectors from claiming a portion of your income before you can allocate it as needed.
Inform Yourself About Wage Garnishment Laws: Understanding state and federal garnishment laws will help you know how much of your income is at risk and what part you can protect. If you’re unsure, National Legal Center’s legal professionals can help you assess your risk with a free debt consultation.

Debt Defense Pro tip:

Avoid using the same bank for new accounts that you used when the debts were in good standing. Doing so can shield your current funds from being easily levied.

Being intentional about where your money is held and who has access to it means you are actively managing your financial health. Creating buffers between you and debt collectors protects your assets and gives you peace of mind while you strategize the best way to tackle your debts. Remember, the key is to stay one step ahead of debt collectors, and oversight of your bank accounts is an essential strategic move.

4) Effective Communication Techniques to Handle Debt Collectors

Debt collectors are trained to extract payments using various psychological tactics. Being prepared with effective communication techniques to help you maintain the upper hand.

Strategies for communicating with debt collectors:

Record All Interactions: Keep a detailed log of all communications with debt collectors, including phone calls, emails, and any letters. Consider recording phone conversations if your state law permits.
Use Certified Mail: When sending important documents to collectors or disputing a debt, use certified mail with return receipt requested to ensure there is proof of delivery.
Stay Calm and Collected: Always keep conversations with debt collectors calm and assertive, regardless of the tone they might use. Your composure can deflect aggressive tactics and keep the conversation on topic.
Know When to Disengage: If a debt collector becomes overly aggressive or you feel the conversation is not productive, know that you have the right to end the conversation and only communicate in writing.
Trust the Pro’s: If you’re considering settling debt yourself, follow the tips from the negotiation experts at NLC.

Communication with debt collectors should be done in writing whenever possible to leave a paper trail and avoid any misunderstandings. Stay informed of your rights, and don’t be afraid to exercise them when necessary. With the right strategies and mindset, you can handle debt collectors effectively while working towards financial freedom.

5) Seek Legal Assistance

When dealing with persistent debt collectors, help from a legal professional can sometimes become necessary. Attorneys familiar with consumer debt protection can be your strongest allies in these situations. They understand the intricate laws and regulations governing debt collection and can provide effective strategies and legal representation.

Benefits of Legal Assistance in Debt Collection:

Cease and Desist Enforcement: A debt resolution lawyer can ensure that your cease and desist letters are respected, and can take swift legal action if collectors continue to contact you or violate your consumer rights.
Representation in Court: Should the case escalate to a lawsuit, having an attorney means you’ll have an experienced advocate who can help determine if it makes sense to negotiate a settlement or defend your rights in court.
Negotiation of Settlements: Skilled attorneys and legal professionals regularly negotiate debt settlements for less than what is owed without you having to directly communicate with collectors.
Guidance on Asset Protection: Legal counsel can also offer advice on how to protect your assets from seizure, minimize the likelihood of wage garnishment and guide you to an effective resolution of your debts.
Education on Your Rights: Perhaps most importantly, legal professionals can educate you about your rights and options, acting as your ally and empowering you with the knowledge to deal with collectors confidently and successfully.

Not sure if your situation warrants bringing in an attorney? Here are 5 times to call a debt settlement attorney. If it’s time for you to stand up to debt, resolve debt affordably with National Legal Center. Request a free quote and consultation today.

By consulting with a legal expert, you are not only fortifying your position against debt collectors but are also taking proactive steps toward safeguarding your financial future. Remember, you don’t have to face your debts alone; help is available, and it’s within your right to use it.

Conclusion

Empower yourself and protect your peace of mind by taking these smart steps against debt collectors. Often, it’s the subtle tactics that prevent collection activity from disrupting your life.

Schedule a Free Consultation with National Legal Center

Complete this form to schedule your free consultation.

November 10 2023

Unmasking the Mirage: The Hidden Reality Behind Low Debt in Collections

Team NLC Consumer Protection, Debt Collectors, Debt Resolution, Financial Education, Miscellaneous

The Federal Reserve Bank of New York (NY Fed) shared data showing that the number of Americans with debt in collections is at an all-time low.
Medical debt previously made up 58% of collection tradelines, and credit bureaus have stopped reporting medical bills under $500. Furthermore, the temporary pause on student loan repayments has also contributed to the decline in collections.
The data regarding collections is not representative of the country’s economic health. The need for a comprehensive and accurate evaluation of economic markers that reflect the financial health of American households is paramount.

A Mirage of Economic Strength

The New York Fed shared data this week that shows the number of Americans with debt in collections is at an all-time low. At first glance, these numbers may imply a robust economy, but the reality is far more complex.

The drastic reduction in debt collections owes more to a systematic change in debt reporting rather than reflecting genuine financial stability among American households. Come along with us as we uncover the truth behind these seemingly positive numbers as we delve deeper into this data. Let’s peel back the layers of this financial- and perhaps political- economic illusion.

What Debt Goes to Collections?

First, it helps to know what causes a debt to go to collections. Accounts are generally reported as delinquent after 30 days of non-payment, charged off, and reported as an account in collections after 180 days. Nearly any type of debt can be sent to collections: medical bills, credit card balances, utility bills, and even student loans. Making occasional or regular payments on an account already in collections doesn’t remove it from collections. Accounts remain in collections until they are paid or settled for less than the full amount owed.

The Medical Debt Mirage

Medical debt, which was found to constitute 58% of all collections, is often the result of an unforeseen health crisis that comes with high medical costs.

In recent years, the credit bureaus initiated an unprecedented move- to stop reporting medical bills under $500. These smaller bills are estimated to make up roughly half of the medical debt in collections. This change clearly benefits the consumer and was made for good reason. With an obvious lead-lag effect, this move also drastcally reduced the reported collections debt.

Heralding the reduction of debt in collections as an economic indicator is a premature evaluation demonstrating no real financial improvement. We cannot claim an economic win when we remove half of the largest source of collections.

Changing the rules of credit reporting will always result in a change in how many debts are reported. It doesn’t mean people feel any less financial pressure- they don’t. They weren’t paying those bills in the first place.

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Impact of Student Loans Moratorium

The temporary pause on student loans also played a significant part in the reduced debt in collections. However, this is merely a deferral of debt repayment, not an elimination, and therefore does not genuinely represent economic improvement.

After a several-year pandemic-prompted pause, payments on federal student loans resumed in October. Time will tell how much of an economic impact this causes.

The Reality of the Decline in Debt Collections

The decline in debt collections reflects systematic changes in debt reporting; it should not be considered an indication of improved economic health. Therefore, these ‘encouraging signs’ are likely merely smoke and mirrors that portray an unrealistic image of our economy.

We must re-evaluate our economic markers and acknowledge that an economy cannot be gauged on such easily manipulated indicators. As we pivot towards a politically charged environment, we will inevitably see politicians play the role of the economic savior, but the need for truth and transparency is even higher. It’s time we recognize these moves for what they are. We need to peek behind the curtain, challenge the status quo, and unmask the actual state of our economy.

Conclusion

In conclusion, while the decline in debt collections may initially seem like a positive economic indicator, it is crucial to look beyond the surface. The changes in debt reporting and temporary moratoriums may have masked the true reality of America’s financial health.

We should consider a range of factors that accurately reflect the financial health of American households. Housing costs, income vs inflation, homelessness, and more. Only then can we truly understand and address people’s debt situation.

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October 8 2023

Understanding Identity Theft: What It Is and How to Prevent It

Team NLC Consumer Education, Consumer Protection, Credit Reporting, Financial Education, Miscellaneous

Identity theft is a real and growing problem. In 2022, the FTC received over 1.1 million reports of identity theft, with losses rising 30% from 2021.

These staggering numbers send a clear message— everyone must understand identity theft and how to protect themselves from becoming victims.

From spotting the scam, dealing with debt, and stopping the problem before it stops, read on to learn all there is to know about identity theft.

Definition of Identity Theft

Identity theft occurs when an individual illicitly obtains and uses someone else’s personally sensitive information. This data may include the victim’s full name, Social Security number, credit card details, or other crucial financial information.

The primary motive behind such an act is typically fraudulent, intending to deceive or mislead for the thief’s monetary gain. The aftermath of identity theft is far-reaching, adversely affecting the victim’s credit, finances, and personal reputation.

Different Types of Identity Theft

It’s unfortunate, but identity theft has become so broad and lucrative that there now exists a vast spectrum of identity theft, each type possessing its unique characteristics and potential impacts. We hope you take away that identity theft isn’t limited to stealing someone’s credit card information. Theft goes beyond just stealing your credit card, ranging from financial and medical identity theft to criminal and child identity theft.

As you’ll see, it’s not only smart to be careful with your own personal information but also to be mindful for your children and aging parents, too.

Financial Identity Theft

Financial identity theft is what most of us think of when the topic comes up. It refers to the unauthorized use of another person’s financial information for personal gain. This could involve the theft of credit card details, bank account information, or other forms of financial data. As a result, the victim may suffer significant financial loss and damage to their credit score.

Medical Identity Theft

In medical identity theft, the thief uses stolen personal information to obtain prescriptions, medical services or goods or to make fraudulent claims to insurance providers. This can have severe implications for the victim, including incorrect medical records, declined prescription fill-ups, and substantial financial liabilities.

Child Identity Theft

Child identity theft occurs when someone uses a child’s Social Security number to commit fraud. Since many children don’t use their Social Security numbers until they become adults, the theft can go undetected for years, leading to a myriad of financial and legal issues.

Synthetic Identity Theft

In synthetic identity theft, the thief creates a new identity using a combination of real and fabricated information, for instance, mixing a valid Social Security number with a fake name. It’s one of the fastest-growing types of identity theft and is often harder to detect as it doesn’t directly involve an individual victim but rather fictitious entities.

Senior Identity Theft

Senior identity theft targets older adults, who are often more susceptible due to a lack of knowledge about the internet or less frequent monitoring of their financial accounts. It can range from stealing retirement benefits to Medicare fraud and beyond.

National Legal Center has a dedicated division focused on helping seniors and individuals living with disabilities who are dealing with troublesome debt. Call 1-800-728-5285 or request a free consultation online today!

Impact of Identity Theft

Identity theft isn’t just about financial loss. It can have a long-lasting effect on victims, who may be forced to undergo credit repair and spend countless hours contacting lenders and restoring their good name. Furthermore, victims of identity theft are also prone to feeling violated and exposed, as they may never know who was behind the theft or why they were targeted.

How Does Identity Theft Happen?

Identity thieves use a variety of tactics to obtain personal information, ranging from dumpster diving to sophisticated phishing scams. Let’s go over some common methods of identity theft.

Obtaining Personal Information from Public Records or Online Sources

Personal information can be found in public records, such as birth certificates or marriage licenses, or online through social media accounts, websites, and forums. Some of this we have no control over, but some we do. We can all do well to remember that what we put online stays online, so it’s essential to be mindful of what information we post online and who we share it with.

Dumpster Diving and Mailbox Fishing

Thieves often go through trash or look for mail containing financial or personal information. To avoid becoming a victim, shred documents that contain any sensitive information before disposing of them. Consider having packages delivered to your work address or picking them up from the post office.

Phishing Scams

Phishing scams look to obtain personal information by sending fake emails or messages that appear to come from legitimate sources. Be wary of email links and attachments, as they could be malicious and a gateway for identity thieves to access your data.

Skimming

This method involves using a small device installed on an ATM, gas pump, or other card reader. When you insert your card for payment, your credit card information is recorded for the thief to retrieve later. Always be aware of your surroundings when using an ATM, and if something looks strange or suspicious, it’s best to leave and use another machine.

Phone Scams

Phone scams involve the use of deception to obtain someone’s personal information. For example, a thief may call pretending to be from your bank or credit card company and ask for your account details. Another popular scam targets seniors, acting as a grandchild in an accident or jail needing money to solve an immediate crisis. Don’t provide any information over the phone unless you know who you’re talking to and why they need it.

How To Prevent Identity Theft

Protecting yourself from identity theft requires a combination of vigilance, smart habits, and the right tools to safeguard your data.

Freeze your Credit

One of the best ways to protect yourself is by placing a credit freeze with the three major credit bureaus: TransUnion, Experian, and Equifax. Placing a credit freeze prevents anyone from accessing your credit report without your explicit permission, effectively blocking any new loans or accounts in your name. A free credit freeze tends to be more robust and effective than a credit lock or fraud alert.

Use Strong Passwords and Don’t Reuse Them

Always use strong passwords that feature uppercase letters, lowercase letters, numbers, and special characters. Also, it’s best practice not to reuse passwords, as this makes it much easier for a hacker to enter your accounts. Consider using a password manager app to store all of your passwords securely.

Be Aware of their Tactics

As mentioned above, identity thieves use tactics such as phishing scams and phone scams to obtain personal information. Don’t click on links or open attachments from unknown senders, and be wary of any requests for personal information.

Monitor Your Accounts

Check your accounts regularly to ensure there are no suspicious transactions or other signs of identity theft. If you see something unusual, contact your bank immediately to take appropriate action.

Credit Monitoring and Identity Theft Protection

Credit monitoring and identity theft protection services can help you stay on top of the latest breaches, alerting you to suspicious activity in your accounts. Additionally, credit locks are available if you feel uncomfortable with a credit freeze. A credit lock is not usually free, but it is more flexible than a credit freeze as you won’t need to lift a credit freeze when applying for new services.

For a more in-depth analysis of how to protect your credit information from theft, refer to our articles on “how to freeze your credit,” “credit lock vs. credit freeze,” and “fraud alert vs. credit freeze.”

Taking these preventative measures can help you protect your credit and financial security from identity thieves.

Summing it Up

When it comes to protecting yourself from identity theft, knowledge is power. By understanding how identity theft works and taking the proper steps to safeguard your sensitive information, you can keep your data safe while still enjoying the conveniences of modern life.

If identity theft or other hardship has left you with unaffordable debt, we can help! Our law firm has helped thousands overcome unmanageable debt and regain financial freedom. Contact us today for a free consultation and learn how we can help you break free from debt.

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A woman sitting in a café is using her credit card to make online purchases.

September 22 2023

Fraud Alert vs. Credit Freeze: Which One is Right for You?

Team NLC Consumer Education, Consumer Protection, Credit Reporting, Financial Education, Miscellaneous

Given the growing risk of identity theft, it’s crucial to take precautions to safeguard yourself against scammers. Two potential solutions are fraud alerts and credit freezes. Although the terms may appear alike, there are a few important distinctions to consider when deciding which identity theft prevention method is right for you.

In this piece, we’ll delve into the definitions of fraud alerts and credit freezes, their benefits and drawbacks, and how to determine which one suits your circumstances.

What is a Fraud Alert?

A fraud alert is a warning message that you can place on your credit report if you suspect or have confirmed, that you are a victim of identity theft. Credit reporting agencies, such as Experian, TransUnion, and Equifax, receive and store information about your credit history, including your credit applications, loans, payment history, and collections.

You only need to place a fraud alert with one credit bureau. They notify the others to ensure you have all three credit bureaus place an alert on your credit reports. Once they place the remark on your credit reports, any lender that views your credit file knows to take extra precautions to be taken when processing any credit application in your name.

Fraud Alert Caution Defend Guard Notify Protect Concept

Fraud Alert: A Detailed Look

A fraud alert acts as a cautionary flag on your credit report when you suspect or have been a victim of identity theft. You alert credit reporting agencies like Experian, TransUnion, and Equifax, who then require lenders to exercise additional care when handling any credit application under your name.

Key Features of a Fraud Alert

Cost-effective: Placing a fraud alert on your credit is completely free.
Ease of Setup: You only need to notify one credit bureau; they will convey the message to the others. All three credit bureaus work together to have the alert placed on your credit file.
Duration: A fraud alert lasts for one year without evidence like a police report; having supporting evidence (like a police report or letter from a creditor) allows for an extended fraud alert lasting 7 years.

Limitations of a Fraud Alert

Not foolproof: An alert does not prevent identity thieves from trying. Lenders might not reject fraudulent requests, granting credit to fraudsters and leaving you to deal with bad debt.
Not comprehensive: A fraud alert is not as effective as a credit freeze in certain cases. We’ll discuss this more in the next section.
Short timeframe: Without evidence, the initial fraud alert lasts only one year. An extended fraud alert lasts much longer, but scammers don’t always leave a trail.

When to Place a Fraud Alert on Your Credit Report

A fraud alert is placed when you have become, or believe you may become, the victim of identity theft.

Place a Fraud Alert for Potential Identity Theft

Let’s consider a scenario where you receive an email that appears to originate from your bank, alleging suspicious activity on your account and asking for immediate verification of personal information.

Alarmed by their message, you quickly follow the provided link and enter your private credentials. Two minutes later, you realize what happened and suspect the email might have been a phishing scheme.

Alarmed about the potential for fraudulent activity on your credit, this is the perfect time to contact the credit reporting agencies to place a fraud alert that lasts up to one year.

There’s no confirmation of fraudulent activity in this situation yet, but you place a fraud alert to implement preventative measures.

Place an Extended Fraud Alert for Known Fraud

Consider this second scenario. A month ago, you lost your wallet containing your social security card, credit cards, and other personal identification documents. Since then, you’ve been vigilant, frequently checking your credit reports and bank statements for any suspicious activity.

One day, you notice unfamiliar transactions on your credit card statement. You’re certain you haven’t made these purchases, and alarm bells start ringing. You contact your bank, who confirms that your credit card has been used fraudulently.

You immediately report the crime to the police and obtain an official police report, providing concrete evidence of fraud.

With the police report in hand, you contact the credit reporting agencies. This time, you can place an extended fraud alert. The police report allows you to extend the duration of the fraud alert from one year to seven years, providing you with long-term protection against additional bad debt and fraudulent activities on your credit report.

A Credit Freeze: Digging Deeper

A credit freeze, or a security freeze, serves as a robust shield for your credit information against fraudulent activities. It halts any access to your credit report, therefore, any lender trying to view it will be unable to do so unless you provide the go-ahead by unfreezing it. This is achieved using a unique Personal Identification Number (PIN) that you receive when you first place the initial freeze.

Advantages of a Credit Freeze

Robust Protection: A credit freeze offers stronger protection compared to a fraud alert as it completely restricts access to your credit report.
Control in Your Hands: You hold the power to allow or deny access to your credit report, providing you the ultimate control.
Unique PIN: A special PIN is provided when you activate a freeze, which is required when you wish to lift the freeze.
Proactive protection: Credit freezes are a proactive way of ensuring that your credit report remains secure.

Disadvantages of a Credit Freeze

Requires Effort: Unlike a fraud alert, you need to contact each credit bureau individually to place a freeze.
Potential Delays: Unfreezing your credit report when needed can cause delays in credit application approvals.
Dangerously Strict Identity Protection: If you lose your PIN or can’t answer the security questions, expect a tedious process to unfreeze your credit report.

When to Place a Credit Freeze

The best time to stop a problem is before it begins.

Placing a freeze on your credit prevents any fraudster from accessing it and using it to their benefit. A credit freeze offers more comprehensive protection than a fraud alert, as it prevents the credit from being accessed in the first place.

Place a Credit Freeze for Proactive Protection

You can place a credit freeze even if you don’t suspect any fraud or suspicious activity. Let’s say you’ve been a great money manager over the years; you’ve built up excellent credit, making you an attractive target for identity thieves. While you haven’t detected any suspicious activities, you understand the potential risk.

You decide to be proactive in protecting your financial health and reputation. You understand that a credit freeze can prevent unauthorized parties from accessing your credit report and opening new credit accounts in your name, effectively making it more difficult for identity thieves to exploit your good credit and harm your FICO score.

You contact each of the three major credit bureaus to place a credit freeze on your accounts. It may require a bit more effort, but you believe the enhanced protection is worth it. You securely store the unique PINs provided by each bureau, knowing they’re the keys to lifting the freeze should you need to apply for credit in the future.

By placing a credit freeze proactively, you take control of who has access to your credit report, thereby significantly reducing the chance of becoming a victim of identity theft.

Place a Credit Freeze After Identity Theft

Although a credit freeze is done as a preventative measure, anyone who has had to recover from a stolen identity knows they don’t want to go through it again.

Let’s go back to the unfortunate situation where you’ve had your wallet stolen. After gathering evidence of identity theft and filing a police report, you contact the credit bureaus and place an extended fraud alert to last seven years. On top of that, you immediately place a credit freeze with each credit bureau.

By doing both, you take advantage of the fraud alert’s heightened monitoring and the freeze’s strong protection. Armed with more than one layer of defense, you’re taking meaningful steps and your identity is much safer from being compromised again in the future.

Fraud Alert vs. Credit Freeze: Which option is right for you?

Fraud alerts and credit freezes are both useful tools in combating identity theft. Still, which one you should choose depends on your unique circumstances.

If you’ve been the victim of fraud, placing a fraud alert is a good first step to take. It will notify lenders to be cautious when processing credit applications in your name and give you some peace of mind.

If you have never had issues with someone taking out credit in your name or otherwise gaining access to your credit record, a fraud alert likely won’t make sense.

If, on the other hand, you want to prevent any unauthorized access to your credit report, a credit freeze is a more comprehensive option. It will completely restrict access to your credit report, providing you with more thorough protection.

Conclusion

Fraud alerts and credit freezes are valuable tools for protecting your finances and your identity. They have their advantages and disadvantages, and whether you choose one or the other depends on your situation. Consider the cost, convenience, and level of protection you need before deciding.

Protecting your credit is an essential step to safeguard your finances, so don’t wait until it’s too late!

Frequently Asked Questions

What does it mean to verify your identity with credit reporting agencies?

Verifying your identity with credit reporting agencies is a process that ensures your personal information is correctly associated with your credit history. This is often required when you request credit reports, place a freeze or alert on your credit, or dispute information on your credit report.

How can I protect myself from identity thieves?

One of the most robust protections against identity thieves is a credit freeze. A credit freeze restricts access to your credit report, halting any potential fraudulent attempts to open new credit accounts in your name. Fraud alerts also play a role by requiring creditors to verify your identity before extending credit.

How can active duty service members protect their credit?

Active duty service members can use tools like credit freezes and fraud alerts for protection. Additionally, they are entitled to free credit monitoring and can access their free credit reports more frequently than the general public.

Can I place a credit freeze online?

Yes. A credit freeze can be placed online with each of the three major credit bureaus. Remember, you need to contact each credit bureau separately to place a freeze.

What is an identity theft report?

An identity theft report or affidavid is an official statement that documents the evidence of identity theft. Filing this report with the credit bureaus can enable the placement of an extended fraud alert and aid in the removal of fraudulent information from your credit history.

How many free credit reports am I entitled to each year?

As a consumer, you’re entitled to one free credit report annually from each of the major credit bureaus. However, under certain circumstances like being a victim of identity theft or being on active duty service, you may be eligible for two free credit reports per year.

What’s the difference between a free credit report and free credit monitoring?

A free credit report is a snapshot of your credit history at a point in time, while free credit monitoring is a service that continuously tracks changes to your credit file and alerts you to any suspicious activities.

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September 7 2023

Credit Lock vs. Credit Freeze: What’s the Difference?

Team NLC Consumer Education, Consumer Protection, Credit Reporting, Financial Education, Miscellaneous

Your credit report is a treasure trove of information – if it falls into the wrong hands, it could lead to havoc.

Given the potential chaos that can come from having a fraudster rack up a bunch of bad debt in your name, putting you deep in debt and even the subject of debt collection lawsuits. It’s hard enough to solve your own debt, let alone someone else’s, so you’d be wise to proactively protect yourself from identity theft.

You have options to protect your credit, such as placing a credit freeze or a credit lock on your credit report, but which one is right for you? Both can be valuable tools in combating identity theft, but how do they differ? Let’s compare the key features of each so you can make an informed decision about which is right for your situation.

The Power of a Credit Lock

The three main credit bureaus, Equifax, Experian, and TransUnion, offer a credit lock as a flexible shield guarding your credit report. Its ease of use is its claim to fame – with a simple click or swipe on the bureaus’ free mobile apps, you effectively lock down your credit.

However, it’s important to note that a credit lock is not something the bureaus are required to offer and does not have oversight or cohesion from one bureau to the next. Without that oversight, the bureaus aren’t required to play by the same set of rules as a freeze; hence, its features may vary across bureaus. Moreover, a credit lock works like a virtual guardian and may not protect you from offline identity theft, such as someone opening an account in your name through non-digital avenues.

Advantages of a Credit Lock

Easily accessible through free mobile apps
It can be quickly locked or unlocked with a click or swipe
It may come with additional features, such as alerts about changes to your credit report

Drawbacks of a Credit Lock

Not legally mandated
It may not provide the same level of protection as a freeze
It may come with extra fees and unwanted offers for unrelated services

Exploring the Credit Freeze

A credit freeze is a preventative measure restricting access to your credit report from lenders, banks, and other creditors. Federal law mandates and oversees the credit freeze. It must be offered for free by the credit bureaus, and it provides a higher level of protection than a lock.

Learn all about how to place a credit freeze to prevent identity theft.

Like a lock, initiating and lifting the freeze is done online or by phone. However, suppose you want to lift it temporarily for specific purposes, such as applying for a loan. In that case, when initiating the freeze, you may be asked to provide additional information like your address, date of birth, Social Security number, and PIN number.

Advantages of a Credit Freeze

Provides a higher level of protection than a lock
Regulated by federal law, so it must be offered for free
Prevents all credit applications from being considered while frozen

Drawbacks of a Credit Freeze

It may take up to three days to lift the freeze
May require additional information for the temporary lift
Must place a separate freeze with each bureau to be fully effective

Making a choice: Credit Lock vs. Credit Freeze

When deciding which tool is right for you, consider how you plan to use it and if you’re willing to pay for convenience. A credit freeze is free and can provide more protection than a lock, but it comes with the trade-off of more time and effort to initiate or remove. On the other hand, a credit lock is quicker and easier to control but may come with a cost and may not provide the same level of protection or be legally mandated.

The good news? You can always change your mind and switch from one protective tool to another, or even use both! Regardless of which method you choose, taking proactive steps to protect your credit report can save you time, money, and headaches down the road.

What to Do if You’re Already a Victim of Identity Theft

If you’ve already fallen victim to identity theft, it’s important to take immediate action. Act quickly by notifying the proper authorities and credit bureaus and filing a police report, if necessary. You’ll also want to consider placing a fraud alert on your credit reports or a security freeze for added protection.

A fraud alert is similar to a lock because it warns creditors that you may be the victim of identity theft. It lasts for one year without proof of identity theft, or you can place an extended fraud alert for seven years with an identity theft report, an official statement that documents the evidence of identity theft.

Seek Professional Help to Deal with Identity Theft Debt

Some cases of identity theft may leave you with unresolved debt. Navigating the aftermath of identity theft can be overwhelming, especially when fraudulent debts are involved. When that’s the case, seeking professional assistance is essential to ensure your rights are protected so you can manage the situation efficiently.

Our law firm has a dedicated team of attorneys familiar with identity theft and dealing with the debt left in its wake. With our expert guidance, we’ll help you dispute fraudulent debts, liaise with creditors, and take necessary legal steps to restore your reputation.

Don’t let identity theft take control of your financial health. Contact us today, and let’s begin the journey to reclaim your financial standing. You’re not alone in this fight – we’re here to help you every step of the way.

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Woman sitting at the desk with loan agreement form

August 17 2023

Do This Before Hiring an Attorney to Fight an LVNV Lawsuit

Team NLC Consumer Education, Consumer Protection, Financial Education

When LVNV Funding, LLC files a debt collection lawsuit against you, your top priority has to become understanding your options and deciding what action to take. You’re wise to seek legal advice from an experienced attorney who understands the complexities of these cases, but before you do, you can take some smart actions to help your case.

Who Is LVNV Funding?

LVNV Funding, LLC is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. Once LVNV Funding, LLC has purchased a debt, they (or their collecting arm, Resurgent Capital Services) try to collect on the debt owed by sending letters, making phone calls, and filing a debt lawsuit. Their goal is to collect on those debts to earn a profit.

Read up on Your Rights

If you’re facing a lawsuit from LVNV Funding, you’ll want to become informed about your rights and the state’s laws governing debt collection, as each state may have state-level debt collection regulations. As you dig into consumer protection laws, you may discover ways to defend against debt buyer lawsuits. Our law firm offers various ways to defend an LVNV Funding lawsuit.

Begin by reading the article Settling Debt with LVNV Funding to better understand the company’s debt collection practices, and then look at the Credit Card Lawsuit page to learn about your rights in debt collection.

By arming yourself with knowledge, you can know where to focus your efforts and make the best decisions for defending a lawsuit from LVNV.

Laws to Know- Fair Debt Collections Practices Act (FDCPA)

The Fair Debt Collections Practices Act (FDCPA) is a federal law that protects your rights from debt collectors. The FDCPA states that all creditors must follow specific rules when collecting a debt, and LVNV Funding is no exception.

For example, the FDCPA prohibits debt collectors from harassing or abusing you and requires them to provide accurate information about your debt. The law also states that creditors cannot make false statements or threaten legal action if they do not intend to sue.

FDCPA Fair Debt Collection Practices Act - Inscription on Green Keyboard Key.

FDCPA Example #1: What Debt Collectors Can’t Say

Debt collectors are not allowed to use profane language or make threats about things like wage garnishment or property seizure that they can’t do or don’t intend to do. They also cannot represent themselves as attorneys if they are not an attorney. They cannot misrepresent that they plan to take legal action unless they have the capacity and intention to do so.

FDCPA Example #2: What Debt Collection Agencies Must Do

Debt collection agencies must provide you with a written notice that identifies the creditor, the amount of money owed, and instructions on how to dispute the debt. The FDCPA also requires that all debt collectors provide written verification of the debt if it is requested shortly after making initial contact with the debtor.

Laws to Know- Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that helps protect consumers’ credit. This law states that creditors must report accurate and up-to-date information to the credit bureaus, and debt buyers are no exception.

For example, under the FCRA, if you dispute an account or item on your credit report, the debt buyer must investigate your dispute and provide the credit bureaus with updated information if there was a mistake.

FCRA Example #1: What a Debt Collector Must Report

A debt collector if they report anything to the credit bureaus, must list the correct balance of the debt, and indicate whether payments are being made on the account. All information reported must be accurate and verifiable.

FCRA Example #2: What Debt Collectors Can’t Do

Debt collection agencies cannot report false or inaccurate information about your debt, such as an incorrect date when the debt was incurred. They also cannot report on medical bills with balances under $500.

Gather Documents and Evidence of the Debt

If LVNV Funding has filed a lawsuit against you, the first step should be to gather all documents relating to the debt. Look for any notices or correspondence from them, credit reports that mention the debt, evidence of payments you may have made, and any debt collection letters you have received on the account. If you’ve received a debt collection summons or subpoena, make sure that you keep these documents in a safe place. You should also ensure you have all your financial statements, original contracts for the debts in question, and/or proof of payment.

Even though you may have stopped making payments some time ago, there may still be a valid counter-defense or argument to defend the lawsuit. For instance, A debt collection letter you received six months ago from Resurgent Capital Services might not seem helpful, but it could potentially contain violations of the Fair Debt Collection Practices Act (FDCPA).

Debt buyers and collectors, including LVNV Funding, are bound by specific legal requirements when communicating with debtors. Beyond that, LVNV may be held responsible for the actions of Resurgent Capital Services, too. If either company has failed to comply with these rules, it opens up the opportunity for you to explore bringing a counterclaim against them when defending the debt collection lawsuit.

For instance, if the letter failed to disclose that it was a communication from a debt collector or didn’t include a necessary mini-Miranda warning, these could be seen as FDCPA violations. If you still have this letter, consulting with a legal professional to review it for potential violations might be worthwhile. A seemingly standard collection letter could dramatically alter the dynamics of your case, turning what seems like a helpless LVNV debt collection lawsuit into a scenario where you can present a valid counterclaim, seek a dismissal of the lawsuit, or turn the table all the way around by making a demand for money damages for their violations.

Keep Records of Debt Collection Agency Communications

Once a lawsuit has been filed, maintaining records of all communication between you and the debt collector or creditor should be a top priority.

Documents to Gather

As you put your paperwork together, consider putting all written correspondence in an organized file with receipts of payments you may have made. Top-notch organization will be essential in providing evidence to back up your case and form your defense against an LVNV Funding lawsuit.

Call Logs

It’s a wise idea to document all phone conversations or other forms of communication with LVNV Funding or the law firm handling the account throughout the lawsuit process, including any discussions related to mediation or settlement negotiations.

Keep a log of dates, details of conversations, names of company representatives, and any other pertinent information. As you build your case, this detailed account of communication could be beneficial in forming your defense against LVNV Funding.

Consider Seeking Representation

A debt collection lawsuit is a serious legal matter. A summons can quickly become a judgment, leaving you vulnerable to wage garnishment, bank levy, real estate liens, and more in many states, sometimes for decades to come.

Once a lawsuit is filed, acting quickly and decisively is critical. Consider hiring an attorney experienced in defending LVNV Funding debt collection lawsuits before the case progresses to judgment. The legal professionals at National Legal Center can help you understand your legal rights and provide critical insight into the best way to proceed with your defense.

Timing is Important

Once you receive notice that LVNV Funding is suing you, you’ve got limited time to respond to the lawsuit. If you wish to avoid a default judgment, timing is crucial. Timeframes vary by state, but you’ll usually only have 21-30 days after the initial summons is served to file your answer and defend yourself against the lawsuit or reach a settlement agreement. If you don’t respond promptly, you could end up with a default judgment, making it more costly and challenging to resolve the debt. On the other hand, a knowledgeable attorney might determine that your best bet is to negotiate a settlement out of court, encouraging that the time and expense of defending the lawsuit be put toward the resolution of the debt instead of defending the suit.

Work with a Law Firm Focusing on Debt Collection Defense & Resolution

It’s essential to seek the guidance of an experienced attorney specializing in debt collection defense. A good lawyer can advise you on all aspects of the case, including your options and how best to proceed.

At National Legal, we have extensive experience dealing with LVNV Funding lawsuits. Our knowledgeable attorneys and legal professionals can help you explore the best options to defend an LVNV lawsuit.

Financial situations are often complex and unpredictable, so we work hard to create customized solutions for each one of our clients. We also provide a variety of services designed to help protect your rights, challenge creditors, and negotiate a reasonable settlement agreement in your best interests.

Contact National Legal Center for a:

Free consultation;
Free review of your credit report;
Free plan of action for any collections account.

No matter what stage of the debt collection process you’re in, we want to help. Contact us today to begin building a defense for your LVNV Funding lawsuit.

Schedule a Free Debt Consultation with National Legal Center

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July 30 2023

How to Freeze Your Credit to Prevent Identity Theft

Team NLC Consumer Education, Consumer Protection, Credit Reporting, Miscellaneous

In our digital age, your personal information is more exposed than ever and, unfortunately, identity theft is no longer just a plot point in Hollywood movies—it’s a very real and sobering threat. The FTC identity theft report placed the cost of identity theft to consumers at nearly $8 billion in 2022.⁽¹⁾

Imagine waking up one day to find your credit score plummeting due to fraudulent transactions you didn’t authorize. Scary, right?

But here’s the good news: There’s a simple but powerful tool at your disposal to protect yourself—a credit freeze. This under-utilized preventive measure serves as a first line of defense, safeguarding your financial future from the prying eyes of scammers.

Want to know more? Stay with us as we delve into the nitty-gritty of credit freezing and its role in combating identity theft.

Credit freeze on your credit reports is represented by this illustration of a snow capped credit card with icicles

What is a Credit Freeze?

A credit freeze, also referred to as a credit lock or a credit file security freeze, is a preventative measure that limits access to your credit reports.

A credit freeze prevents anyone—potential creditors, lenders, marketers, and especially identity thieves—from viewing the information in your credit files. By doing so, you stop fraudsters from opening new accounts or applying for loans using your personal information.

Unauthorized credit activities can have a negative impact on your credit score and financial standing. It’s worth noting that a credit or security freeze does not affect your credit score or prevent you from getting your free annual credit report. You can also still access your scores with credit monitoring services, so you won’t be totally left in the dark.

One in every 3 people is likely to be the victim of identity theft.⁽²⁾ A credit freeze is a no-cost, low-risk first line of defense against becoming one of those three people.

How a Credit Security Freeze Prevents Identity Theft

Identity theft occurs when fraudsters use your personal information, such as your social security number and date of birth, to commit financial fraud. Scammers could open new credit card accounts, do credit checks, take out loans, open accounts, or perform other transactions that require credit achievable through your good name. The financial liability of these fraudulent activities can wrongfully fall on your shoulders, leading to potential legal issues and a damaged credit reputation.

A credit freeze is an effective barrier against this kind of identity theft.

When your credit is frozen, credit bureaus cannot release your credit reports without your express permission. You must manually lift the freeze, or ‘thaw your credit’ so that new lines of credit can be accessed.

This means that even if fraudsters manage to get hold of your personal details, they can’t easily use them to open new credit accounts, because a credit check is usually required to view your credit report before approving a credit-based application.

Steps to Freeze Your Credit Reports

Freezing your credit involves a series of steps that require careful attention. The procedure, though repetitive, is straightforward as long as you have all the necessary information on hand and can dedicate approximately an hour or two. Remember that any error, particularly about your personal identification card or information, can lock you out, halting the process.

You might like to know in advance that it can be frustrating to navigate the websites of the three major credit bureaus. Each requires a series of verification questions and highly unique passwords. Given the sensitivity of the data we’re working with, though, it makes sense that they really want to make sure it is you who is requesting the freeze. Misentering your personal information may prompt a fraud alert and potentially lock you out of your own credit report.

We’ll break each step down in more detail, but here are the steps to freeze your credit:

Contact Credit Reporting Agencies to Place Security Freeze: You must contact the three major credit bureaus – Equifax, Experian, and TransUnion. These agencies are responsible for collecting and reporting your credit information, and they are the ones who can implement a security freeze on your credit.
Provide Personal Information: Expect to provide several pieces of information to verify your identity. You will likely be asked for your name, Social Security number, date of birth, address, phone number, email address, and, in some cases, a picture of your driver’s license or other government-issued ID.
Request a Freeze: After verifying your identity, you must request a credit freeze be placed. This can be done online from each of their individual web platforms, or if you prefer, each bureau also offers the option to place a freeze by phone.

Contact Credit Reporting Agencies to Place Security Freeze

The first step will be to go online to create an account with the bureaus so you can access and manage your credit report and, ultimately, place a security freeze on your credit report.

Information to have ready

In order to place a credit freeze effectively, there are several pieces of information you need to have ready to make the credit freeze process smoother and quicker. Plan to have the following information on hand to place the credit lock and limit access to your credit:

Your name
Your Social Security number
Your date of birth
Your current address
Your phone number
Your email address
A copy of your driver’s license or other government-issued ID

Having the right information ready when freezing your credit is critical, not only for a smooth process but also to avoid unnecessary delays.

Create an Account with the Three Major Credit Bureaus

Before initiating a credit freeze, you’ll need to establish accounts with each of the three credit bureaus. Each credit bureau has a distinct procedure for credit account creation and credit freezing.

Equifax: To create an account with Equifax, you can visit their website and follow the account creation process, or alternatively, you can reach out to their customer service at 800-349-9960. After your account has been established, you can place a credit freeze online through your account or by calling Equifax at 800-349-9960.
Experian: For Experian, you can set up an account by visiting their website or by calling their customer service at 888‑397‑3742. Once your account is ready, you can request a credit freeze either online via your account or contact Experian by phone at 888‑397‑3742.
TransUnion: Finally, you can create an account with TransUnion by visiting their website or calling their customer service line at 888-909-8872. Similar to the other bureaus, you have the option to initiate a credit freeze through your online account or you can call TransUnion at 888-909-8872.

Credit Lock, Credit Freeze, and Fraud Alert- What’s the Difference?

Reading a credit report is confusing enough, let alone navigating the differences between a credit lock, credit freeze, and fraud alert. Let’s take a look at these three terms so you make it to the right place and don’t spend time or money on the wrong thing.

A credit freeze is the most powerful tool you have to prevent identity theft. The federal government requires that each major credit bureau make this option available to consumers for free. A credit freeze restricts access to your credit report and requires that any lender or creditor who tries to view it must first obtain your consent.

A credit lock is similar to a credit freeze, but it is less powerful and comes at a cost. Odd, right? Per federal law, credit bureaus are not allowed to charge for a credit freeze. As a way to offer additional products and services to their customers (and to monetize what the government forced them to give away for free) some credit bureaus created products similar to a credit freeze that they can charge for. National Legal Center does not see a significant benefit to consumers in choosing to place a less robust credit lock compared to a free and comprehensive government-mandated option of a credit freeze.

A fraud alert is also an effective way of deterring scammers from opening fraudulent accounts in your name, but it’s not as strong as a credit freeze. Fraud alerts notify lenders and creditors that you have been the victim of identity theft. Upon receiving this alert with a request for credit, the lender is prompted to spend extra time verifying the applicant’s identity before extending a line of credit. A fraud alert is a smart idea for anyone who has been a victim of identity theft in the past, and it can be used in combination with a credit freeze or credit lock. A fraud alert lasts for one year, or a long-term fraud alert can be requested, which lasts for 7 years.

Freeze your Credit

After successfully setting up your accounts, you’ll move to the critical step of formally initiating a credit freeze request with each credit bureau. This can be accomplished either online through access to your credit and accounts or over the phone.

Equifax: To request a freeze on your Equifax credit report, visit their freeze page online or contact their customer service at 800-349-9960.
Experian: For Experian, the process is similar. To enact a freeze on your Experian credit report, go to their freeze center online or call them at 888‑397‑3742.
TransUnion: Likewise, to place a freeze on your TransUnion credit report, access their freeze portal online or make a call to 888-909-8872.

Remember, it’s crucial to go through this process with each of the three credit bureaus. Initiating a freeze with only one credit bureau is like closing your front door while leaving the back and side entrance open. It will not result in a comprehensive freeze across credit scores with all three, leaving gaps in your protection against potential identity theft.

Try to access your credit report to confirm

Once you have requested the freeze with all three major credit reporting agencies and bureaus, you’ll want to ensure that the freeze has been effectively applied.

You can confirm your credit profile and credit reports are frozen by attempting to access your credit reports on your own. If the freeze is in effect, then you should not be able to view or access your credit report without first unfreezing it.

This is an important step in verifying that the security freeze has been placed on all three of your credit reports correctly. While it may not seem necessary to take this extra step, it is a crucial one, and can save you from any potential issues that may arise in the future.

By freezing your credit with the three major bureaus, you can rest assured that you are taking the essential steps to protect yourself and your financial information. With an effective security freeze, you lower your risk of becoming the one out of three who falls victim to identity theft.

How to Lift a Credit Freeze

The ability to lift or “thaw” a credit freeze lets you temporarily or permanently remove the credit freeze when you need to apply for credit.

Like placing the credit freeze, lifting a credit freeze requires contacting each credit bureau individually. When you begin they will ask if you are temporarily thawing your credit freeze or if you are permanently lifting the freeze.

A temporary lift, or “thaw,” has specific start and end dates, so plan accordingly when applying for new credit. The permanent removal process is equally straightforward, you simply do not place a date to resume the freeze.

You will need to repeat the steps to lift a credit freeze with all credit reporting agencies.

Maintain Regular Monitoring and Security Measures

While a credit freeze can effectively lock your existing account and prevent new accounts from being opened in your name, it doesn’t prevent fraud on your existing accounts. While a credit freeze locks just about everyone else out, you still have access to review your own credit reports. Be sure to monitor your financial accounts and credit reports to spot any suspicious activities.

Additionally, consider setting up fraud alerts and using credit monitoring services. Many of us can also become much more selective about sharing personal information. The less information we put out there, the less likely a fraudster will encounter it.

In Conclusion

Protecting your credit from identity theft requires diligence and smart security measures like credit freezes. While these steps might seem burdensome, they provide a strong line of defense against identity theft and can save you from the financial headaches that come from fraud. If you have delinquent debt or have been harmed by misreporting of information by a debt collector, our law firm can help you.

Get help with debt and stand up to unfair debt collection tactics with National Legal Center.

FTC Press Release, February 2023; Accessed 07/26/2023 from FTC.gov
Identity Theft Statistics; Accessed 07/26/2023 from identitytheft.org

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New house concept, happy senior couple holding small home model

July 1 2023

A Call For Affordable Senior Living Solutions

Team NLC Consumer Education, Consumer Protection, Elder Abuse, Senior Focus

June was Elder Abuse Awareness Month, and we’d like to continue in the spirit of standing up for our seniors by calling for safe and affordable senior and assisted living community solutions. Between the impact of inflation and rising assisted living facility costs, finding affordable housing and personal care options for our elderly population is an increasingly challenging task for seniors and their families.

Mature couple using a laptop while relaxing at home

Introduction

Everyone deserves access to safe living arrangements that support their well-being and dignity at every phase of life. Wonderful housing options exist for older adults, however they are often not accessible to those older adults who are living on a low income. Affordable housing for older adults is a pressing issue that needs immediate attention.

To highlight the need for change, we’re investigating the heavy burden of assisted living costs for older adults. We’ll look at the impact of the 2023 Cost of Living Adjustment, factors driving cost increases in skilled nursing care, and recommendations for addressing the issue of affordable housing options for seniors. Additionally, we will explore urban development and alternative senior living options and their potential to provide safe and affordable environments for our elderly population.

The Burden of Assisted Living Costs

The burden of inflation is felt by individuals across various aspects of life. However, seniors, who rely on a fixed income without the capacity to increase their earnings, experience the impact of rising costs in an especially challenging way.

Assisted living facilities, memory care, and recreational services for seniors have all seen significant cost increases in recent years. According to senior housing statistics and data compiled by Genworth Financial, the average cost of an assisted living facility per person in America was approximately $4,500 per person per month in 2020⁽¹⁾. Given that 1 in 3 seniors are low-income or very low-income⁽²⁾, these high costs place a significant financial strain on seniors and their families, making it increasingly difficult for them to secure affordable housing options.

The 2023 Cost of Living Adjustment

The Social Security Administration conducts an annual review to determine the cost of living adjustment- or COLA- for social security recipients. The COLA adjustment aims to ensure that older adults and individuals living with disabilities receive adequate health care coverage and can afford basic personal care services, ultimately improving their quality of health and life.

In 2023, social security recipients received an 8.7% increase in their social security checks, the largest increase in history.

While this adjustment was intended to provide relief, it fell short of providing substantial tangible benefits to most senior citizens The rising cost of daily living expenses, including the average monthly cost of assisted living (or even affordable apartments), continues to create financial pressure for low-income seniors relying on Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).

Elderly woman with figure of house and coins at table, closeup.

Factors Driving Cost Increases

Several factors have contributed to the rising cost of housing options for older adults. It is important to understand these factors to develop effective solutions for addressing the challenge of affordabe housing for seniors. The following factors contribute to the current lack of low-income housing:

Increased Demand for Affordable Senior Housing

The number of individuals over the age of 65 grew by 34.2% from 2010-2020, according to census data⁽³⁾, leading to increased demand for senior housing. Seniors continue to be the largest growing sector of our population, so the increased need for low-income housing is unlikely to slow.

Rising Costs of Operating Assisted Living Facilities

The costs of operating assisted living facilities is on the rise, just as it is across industries. From maintenance, staffing, and healthcare services provided to residents, the cost of operations have significantly increased. These increased costs are often passed on to the customers, who happen to be low-income or very low-income seniors, making it harder for them to afford these facilities.

Inaccessible Healthcare Services

Quality, affordable health care services are a struggle across the board. Our country continues to face a healthcare crisis in a post-pandemic environment. Covid wrecked havoc on our healthcare system, affecting everything from home healthcare, emergency transportation assistance, and social engagement and social activities in every hospital and senior living community in our country. These services are crucial for seniors’ well-being, but they continue to be inaccessible in many communities.

Confusing Senior Living Community Options

Senior living communities, independent living, assisted living, and nursing homes all provide varying levels of care and support. Understanding the options available and their associated costs is essential to make an appropriate decision for an older adults long term living decisions.

Impact of Housing Costs on Seniors

The rising cost of senior housing has significant implications for older adults. Many people are being forced to make challenging decisions about their living arrangements. Increasingly, people are opting to move in with family members, while others downsize to smaller homes.

Independent living communities have also become a popular home sharing choice for older adults, as they often offer a more affordable cost of living compared to assisted living or nursing homes. However, these alternatives may not always provide the level of full healthcare services and support that are often required, creating a gap in accessible healthcare with affordable senior living options.

Recommendations for Addressing the Issue

Addressing the rising cost of affordable senior housing that requires a multi-faceted approach. Next, we’ll explore some potential solutions worth advocating for.

Increase Government Funding for Affordable Housing

The federal government can allocate more funding to senior housing programs, reducing housing costs and making it more affordable for seniors. By investing in affordable housing initiatives, policymakers can help alleviate the financial burden of subsidized housing that is faced by seniors residents and their families.

Embracing Multi-generational Living as a Society

Cultural and societal norms run deep in our decision-making processes, often unbeknownst to us. One example is that of multigenerational housing. Fortunately, we are bucking that trend and becoming more welcoming of living with, and caring for, our older family members. The number of multigenerational families in America has quadrupled since the 1970’s, with finances being the most common reason⁽⁴⁾. Living with family members isn’t always an option, but when it is possible it can be mutually beneficial both to the finances and overall wellbeing of the household.

Offer Tax Breaks and Supportive Services

While plenty of government programs exist to support many groups of people, additional tax breaks for SSI and SSDI recipients can go a long way for a struggling population. Perhaps a reduction of property taxes or supportive services to locate affordable apartment units. Any government programs that contribute to making housing for older adults more affordable can allow them to allocate their limited income resources toward other essential needs.

Advocacy

As the cost of living continues to rise, National Legal Center will continue to call for affordable senior living solutions. Advocating for efforts like expanding government and community-based support services can create affordable housing. Exploring alternative living arrangement options can also contribute to addressing the affordability challenges faced by seniors. Together, we can ensure that our seniors have access to safe and affordable living arrangements that promote their well-being and dignity.

References:

(1) Genworth Financial.Cost of Care Survey. Retrieved from https://www.genworth.com/aging-and-you/finances/cost-of-care.html on 6/30/2023

(2) National Council on Aging. Retrieved from https://ncoa.org/article/get-the-facts-on-economic-security-for-seniors on 6/30/2023

(3) Census.gov Retrieved from https://www.census.gov/newsroom/press-releases/2020/65-older-population-grows.html on 6/30/2023

(4) https://www.npr.org/2022/11/23/1138864943/the-joys-and-pains-of-multigenerational-households on 6/30/2023

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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.

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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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