Gottastopperping: Help Making Money

If you're having a problem with a business, Consumer Ally can help. Write us at HelpMe@WalletPop.com.

Q. I was charged $1,200 by Debt Solutions of America with the promise that they would lower my house payment. Well they did -- It was $823 a month. Now it's $817. And I'm out $1,200. Is there anything I can to do to recoup my money?

Pamela Staheli

A. Pamela, I really hate to hear about cases like yours. With all of the trouble in the housing market, companies like this are popping up more and more. They often call themselves foreclosure rescue or foreclosure relief services, and they promise big things: Lower your mortgage payments, cut them in half, save you thousands of dollars a year.

What they actually do is exactly what you could do on your own, or with the help of a good not-for-profit housing counselor: They help you gather and submit the paperwork needed to complete a loan modification as part of the Making Home Affordable program.

When we received your email, I did a search for the company so I could get in touch and see if we could recoup any of what you lost. What I found, unfortunately, is that this company is already out of business. I did manage to track down Chris Stover, the owner, and he was less than helpful. He said that in order to work with his company, you had to sign a contract that said, essentially, that there are no guarantees.

I know you've acknowledged that you did, in fact, sign this contract. Because the company is out of business -- Stover tells me it "just wasn't a profitable business to be in," although I'm sure you'd disagree -- going after a refund would probably be throwing good money after bad, according to Gerri Detweiler, a credit adviser for Credit.com.

Instead, she thinks you should file a complaint with your state attorney general's office and the Federal Trade Commission (you can do that here). I'd also file a complaint with the Better Business Bureau, which already has a file started on this company, with 10 complaints registered. You can add yours to the list here.

Now, if you're still struggling with your mortgage payments, and it sounds like you are, you should get in touch with a HUD-approved housing counselor. It's completely free, and they'll be able to outline what options are available to you at this point.

Finally, for others out there who are considering one of these services: It's not worth it. There are no quick fixes, and if someone asks you to pay for this kind of counseling service or help with a home modification or a delinquent mortgage, it's more than likely a scam. (As a side note, there are legitimate credit counseling services, which charge a small fee to help you pay down credit card and other debt. If that's what you're looking for, keep your search limited to members of the National Foundation for Credit Counseling.) Whenever you're considering paying for a service of any kind -- debt settlement, credit counseling, even a new cell phone or cable plan -- you should thoroughly research the company, including verifying its rating and accreditation with the BBB.

Consumer Ally problem-solver Jean Chatzky is the "Today Show" financial adviser, a longtime financial journalist and best-selling author.

This week, the president and the GOP announced a $900 billion deficit-financed package that includes, among other measures, an extension of tax cuts for millionaires and billionaires.

After the past decade, we knew that Republicans were never serious about deficit spending. They added trillions to the deficit with two wars and the original Bush tax cuts. Republicans made the tax cuts expire at the end of 2010 because they tried to hide the real long-term costs -- which is the reason we're in this mess today.

In 2008, with a Democratic President and Congress, the Republicans suddenly found religion on the deficit. They used the boogeyman of the deficit to justify their plans to privatize Social Security, turn Medicare into a voucher program, and cut programs that help working families. We still hear the arguments from Republicans every day:

"Extend aid for unemployed workers? We can't, because of the deficit!"

"Ensure seniors have access to their doctors in Medicare? We can't, because of the deficit!"

"More money to stimulate the economy? We can't, because of the deficit!"

Now these same people who have been screaming about the deficit for the past two years are scrambling to add hundreds of billions of dollars to the deficit to give tax cuts to those making over $250,000 a year -- the very last people who need help in this economy.

If Republicans want tax cuts for the wealthy, we should demand that they explain how to pay for them right now. We know how they will be paid for in the long run -- once Republicans are in the majority and flip-flop back to caring about the deficit, they will insist on "deficit reduction" legislation that slashes important programs that help working families -- all to pay down the deficit that this proposal creates.

There are concrete measures we can take to improve the economy and help working families. But the Republican Party held these measures hostage. They stood in lockstep to block middle class tax cuts, extensions of unemployment insurance, or any other issue, until Congress extended deficit-funded tax cuts for the wealthy.

Some of the proposals in this compromise are positive. Unemployment benefits are protected for the next 13 months -- helping an estimated 400,000 Californians this month alone. The earned income tax credit and the child tax credits will be extended, helping millions of working families with children. These are important provisions that I want to see make it into law, but I cannot support them when they are coupled with outrageous deficit spending to benefit the rich.

Republicans made it clear that they would rather have ALL the Bush tax cuts expire than give up tax cuts for the wealthy. Democrats need to stand up and show that we have the same level of conviction that protecting the middle class is the right thing to do.

bench craft company scam

Wednesday, December 8, 2010

Help Making Money

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