Recently released data suggests that more than 120,000 jobs were added in November, which lowered the unemployment rate to 8.6 percent, CNNMoney reports.

This is certainly encouraging news. Our Chicago bankruptcy lawyers hope that many of the seasonal workers who were hired in retail and by companies producing consumer goods can hang on to those jobs as we get into 2012.

But for many others, jobs have been scarce. Many people have spent months or even years attempting to get a steady income. For millions of Americans, unemployment benefits have been what they live on. But whether a person is newly employed or still struggling to find work, it’s likely that credit has been a crutch that is close to breaking.

Without steady income, people have relied on loans and credit cards to get by. This is a disaster waiting to happen. If the consumer has no income, they are likely getting bombarded with calls, e-mails and letters harassing them and making threats against them. If people happen to have a job, they may be in the process of having their wages garnished.

One initial benefit of filing for bankruptcy is that it stops creditors from hounding consumers.

Read more…

• 0 Comments

This Europol criminal threat assessment (pdf document OCTA 2011: EU ORGANISED CRIME THREAT ASSESSMENT) is fascinating. It covers everything including drugs, smuggling, human trafficking and weapons.

But the financial section is what caught my eye. I have been vocal for years that it is time for banks to offer payment cards with only a chip and with no magnetic stripe. The detainment of the stripe is a classic case of building a compromise product based on the needs of the minority.

The EU is the world’s largest market for payment card transactions. In 2009 organised crime groups derived more than 1.5 billion euros from payment card fraud in the EU.

Now that we are almost in 2012, and 3 years later it is a safe bet that number will be higher. In my view it is unconscionable that banks permitted this to occur while the solution to a large percentage of that crime lies in their hands, while they hide behind regulations created by the card companies (ie themselves). That cost is a net cost and loss to society in some way, and it has to be covered by consumer and social costs at some point.

Some more statistics that are astounding but not at all surprising. (

Read more…

• 0 Comments

Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can’t find what you’re looking for, please fill out the form, being as specific as possible.

Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.

Does it hurt my credit score if I settle my account?

Yes.

The term “settled” means the lender has agreed to accept a final repayment amount that is less than full repayment of the debt. The account will be shown in your credit report with a status of “settled,” indicating the debt was not paid in full, as originally agreed.

Anytime you do not repay an account in full or as agreed in the original contract it will have a negative effect on credit scores.

Thanks for asking.

• 0 Comments

Our Rubidoux foreclosure defense attorneys were interested to see yet another challenge to a bank’s right to foreclose reach the federal appeals courts. In Stein v. Chase Home Finance, Minnesotan Kenath Stein challenged the right of Chase to foreclose, arguing that it did not have both the note and the mortgage for the home in its possession when it started the foreclosure. Stein also challenged the validity of a redemption of the home by a junior lienholder, National City Bank. After removal to federal court, the two lenders successfully moved to dismiss, finding both actions valid. Stein appealed to the Eighth U.S. Circuit Court of Appeals, but it upheld the district court.

Stein refinanced in October 2006 with a $484,000 loan from Chase, and took out a second loan from National City in January of 2007. Unfortunately, he started missing payments in March of 2008 and could never cure the default entirely. Chase notified him in September of that year that it would start foreclosure proceedings; a few weeks later, Chase Bank assigned the mortgage to its Chase Home Finance arm. Chase later sold the home to itself at the foreclosure sale, and National City exercised its right to redeem the property by buying it within six months.

Read more…

• 0 Comments

Brits are risking financial shock when they hit retirement, as research reveals that many people are not planning for the future sufficiently.

International research carried out by Bupa found that Brits are amongst the worst in the world when it comes to planning for retirement.

The international Bupa Health Pulse study surveyed over 13,000 people in 12 countries around the world. It found that under a third of Brits think they need to put money aside to fund care in later life – the lowest of all countries polled.

Even more shockingly, only a third of those aged over 65 said they had saved money for their old age in general.

“We know that on average, someone over 65 is likely to need around £50,000 to cover care costs such as home adaptations, meals on wheels and care home fees, but one in 10 will need double that,” said Oliver Thomas, UK Director, Bupa Care Homes.

“Most people assume all care in old age is covered by the NHS, but it’s not, so paying for care can come as a shock.”

Despite living longer on average, the research found that women were significantly less likely to have saved for retirement than men.

Experts warn that more women need to start saving, as 70% of those in Bupa Care Homes  in the UK are women.

“The majority of enquiries to Carers UK’s helpline come from women, either women seeking advice about their spouse who needs care, or sisters, daughters or nieces who look after a family member,” said Baroness Pitkeathley, Vice President of Carers UK.

“We’d urge people to talk more about what care they might want for themselves in old age so if and when the time comes, their family know their preferences for care.”

There are a number of savings and bank accounts that offer a good rate of interest. These include S

Read more…

• 0 Comments