Month: June 2016

Examples of Illegal Debt Collection Tactics

Getting a phone call from a debt collector can be scary and nerve wracking if you do not know your rights. It may seem that you are in the wrong, but you should know that in some cases debt collectors attempt to use illegal practices that can force you into making decisions and payments that you are not required to make on your behalf. Knowing what is restricted and illegal according to the federal government can easily make your debt dispute experience more favorable and help improve your credit score immensely.

Debt Collectors cannot speak to third party members about your debt collection so long as you send a letter requested the debt collectors to avoid contact. This includes family members, friends, your work, and any other person that is not you or a member of the debt. There are a few exceptions to the rule:

Power of Attorney: If you are represented by an attorney, the debt collector can only speak to your attorney regarding the matter unless you specifically give the debt collector the right to speak to you. Remember that nearly all calls are recorded by debt collectors so giving this right to the debt collector will be recorded.

Credit Reporting Agencies & The Original Creditor: These parties are privy to this information already meaning they are part of the actual debt dispute.

General Questions: Creditors can call many of those listed above to confirm information such as your name and current residence but cannot:

  • Cannot say you owe a debt collector.
  • Cannot identify their employer as a debt collector.
  • Cannot communicate via postcards
  • Mail cannot indicate the company (logos, addresses, etc).

Creditors cannot harass you during inconvenient hours, use violence, foul language, post your name owing a debt.

All of these are considered major violations of your rights. Work with a trusted debt dispute manager to guarantee the proper steps are followed and your rights protected. Contact Infinity Debt Services today!

Pros and Cons to Debt Management

Attaining financial security is a pivotal move for many in the United States today with such an unstable economy. More than ever, Americans are allocating debt and creating a mountain of stress for the family. Whether you have minimal debt or a large amount, getting your debt in control and having a plan to conquer debt is an absolute must. Often, people are turning to debt management plans to help control and beat debt obstacles. But what is a debt management plan and what are the pros and cons? Find out here!

What is Debt Management?

According to, “ A Debt Management Plan, also known as a DMP, is a debt relief option where a counseling agency works with your creditors to come up with a more suitable monthly payment for your situation. Debt management companies advise you as to your best options to reduce your debt and work towards improved financial success.

Infinity Consumer Services does not perform Debt Management services; we work closely with a company that specializes in Debt Management. They maintain the same high standards in morals and ethics as we do and feel comfortable with our working relationship.

We work with you to find the best option and fit for your situation. If Debt Management is the best way to go, we will introduce and transfer you over to a live agent at our partner company.

Pros of Debt Management Plans

Debt management plans help advise you the consumer on the best options to reduce your credit issues by creating the fastest and most sensible way to reduce your debt. Each situation is different, so it is good to have someone who has a strong background in finance to look at your particular scenario and see the way through the weeds that you may have not seen before. The debt manager can work on your behalf and reduce your debt in a reasonable time and help plan your financial future down to your monthly purchases.

If you maintain an on time monthly payment, you’ll have reduced interest rates and repay 100% of the debts owed. Consumers are typically out of debt in 5-7 years in most instances, which is better than the 15-30 years without a debt manager.

Cons of Debt Management Plans

Debt Management is often confusing for individuals and families based on what they’ve already heard on the TV or radio. Sadly, not every debt manager is out there to help you. Many are more concerned about their profit margins than your bottom line.

To complicate matters further, credit card companies will typically suggest clients use a debt management program. These programs are usually a state and credit card driven solution, meaning that the banks and the states are working together to come up with a plan to get you debt free. This may or may not be in your best interests as a consumer.

These plans require making a payment each month to a third party, and they will disburse your payment out to your specific accounts.  In most instances, the payments stay the same or might even go up to get you out of debt within the 4-5 year repayment window. Since the payment goes out to the company first, and they make your payment monthly, your credit report will reflect this type of relief program. Consumers will have a reduced interest rate with each lender,and one monthly payment, but in most instances the repayment terms make it difficult for individuals already struggling to afford this option.

Additionally, some debt managers have you sign contracts that have rate jumps after 6 months, 1 year and so on. This can be a major stress for someone already in debt. Be sure to read through each plan thoroughly and ask about costs up front before choosing a debt management company. Be sure to research the company online and be certain of their strong reputation.

Ready to tackle your debt issues today? Infinity Consumer Services is the leader in credit counseling and can help you take back control of your credit today!