Debt

What is a mechanic’s lien?

Mechanic’s Lien? Artisan’s lien? Laborer’s lien? All these terms fall under the broad category of mechanic’s lien. A mechanic’s lien is a legal process which guarantees payment for agreed-upon services completed on an improved piece of property. If the owner of the property does not pay for services within a certain amount of time, contractors, subcontractors, and suppliers can file a mechanic’s lien after the work has been completed. A mechanic’s lien extends to work completed or supplies purchased on both the structure and the land under it. Until the debt is paid, the landowner does not have sole claim to ownership of the property, and cannot sell it. A mechanic’s lien is a “hold” against the property that, if unpaid, allows foreclosure, forcing the sale of your home. It is recorded with the County Recorder’s office by the unpaid contractor, subcontractor or supplier. Continue reading

What is interest?

Anytime you borrow money from a lender an interest rate is applied. It is basically the fee to borrow money or assets from a lender. Many people choose to borrow money in order to buy products they need or a‘now’ instead of ‘later’. Therefore, interest is the price paid for the use of borrowed money. Interest is typically paid to the lender as a percentage of the amount owed. Thus, 10% interest on $100 is $10. The percentage of the principal that is paid as a fee over a certain period of time (typically one month or year) is called the interest rate. Continue reading

What is a debt settlement plan?

A debt settlement plan is a mostly ineffective solution to dealing with high interest debt. Debt settlement plans are administered by for-profit debt settlement companies that routinely violate federal laws regarding deceptive trade practices. While action by the Federal Trade Commission is still pending, many states’ Attorneys General have filed multiple lawsuits at some of the largest debt settlement providers. Continue reading

How to Sue Debt Collectors

Deciding to sue debt collectors can help you assert your rights against an overly-aggressive debt collector. Debt collectors routinely violate debtor rights that are protected by the Fair Debt Collection Practices Act (FDCPA). Sometimes suing them is the only way to enforce your rights, especially if you have been illegally harassed or threatened by a collection agency. Continue reading

Security Credit Services and Jacob Law Group pay restitution for illegal fees and threats

A buyer of distressed debt and its law firm must repay $799,958 to debtors who were charged $18.95. This mandatory fee was charged for telephone payments, even though other types of payments did not incur the fee. Continue reading