A soft inquiry is an informal classification of a credit check. It includes any type of consumer credit pull in which the score is exempt from penalty. This is the opposite of a hard inquiry, in which the consumer would normally be penalized for the credit check. Continue reading
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What is a promotional inquiry?
A promotional inquiry is a credit check by a lender for the purpose of soliciting your business. It is normally a result of your name appearing on a marketing list that was sold by one of the three main credit bureaus. Continue reading
What is a hard inquiry?
A hard inquiry is any credit check that results in a penalty. It represents an attempt to obtain debt by applying for a credit account. It is distinguished in this way from soft inquiries, which include all other credit checks absent of an attempt to open new credit. Continue reading
New Credit Card Laws
The Credit CARD Act of 2009 was recently signed into law by Barack Obama. This law will come into effect February 22, 2010 and focuses on three main areas: consumer disclosure, consumer protection, and young consumer protection. Continue reading
Vehicle Extended Warranties Pricey, Yet Often Worthless
Extended warranties are popular among car buyers who maintain low reserves in their bank accounts. Many can afford an extra $35 a month, but a $2,000 repair bill would really set them back. Continue reading
Bank of America Ends Overdraft Fees on Debit Cards
Bank of America has taken the preemptive step of announcing an end to overdraft fees on debit card purchases. As is frequently the case when the feds are mulling new regulations, an industry giant moves to police itself. Continue reading
Debt Collector Convicted of Attempted Robbery
I know that the actions of Tobias Boyland are not funny, but I just could not help myself when looking at the irony of this case. Collection agencies tend to bend or break the law on a daily basis. This case however deserved a second look. Continue reading
Credit Bureau Collection Services Fined for Violating Federal Laws
Credit Bureau Collection Services and its officers, Brian Striker and Larry Ebert, have been charged with violating consumer protection laws through illegal debt collection tactics. As a result, the company will pay a $1.1 million civil fine to the Federal Trade Commission. Continue reading
Allegro Law Seized by Regulators
The Alabama Attorney General working with the Alabama Securities Commission has shut down what was one of the leading debt settlement providers in the nation. Allegro Law LLC and Allegro Financial Services LLC have been closed, with their assets seized by the court. Continue reading
Review of Briesch Debt Settlement Study
Dr. Richard A. Briesch, PhD authored a study into debt relief programs titled Economic Factors and the Debt Management Industry on August 6, 2009. His conclusion was only a vague assertion that debt settlement provided greater consumer welfare than debt management plans. However many of his findings contradict those of regulators and consumer protection advocates. This review of his white paper shows the source of this misinformation, an incomplete set of client data. The result is a cleverly crafted white paper that appears to provide academic support for debt settlement companies and the plans they administer.
Debt settlement companies have been very quick to refer prospective clients to this study, since it appears to provide academic support for their activities. See how the following review of Briesch’s study yielded a much bleaker picture about the state of debt settlement companies.
Download the Review of Briesch Debt Settlement Study: Economic Factors and the Debt Management Industry.
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