Inflikt

Once upon a time, telemarketing was a relatively new thing. The idea of people calling you up at your home to try to sell you something was unheard of, but it quickly became very profitable. Suddenly, there were telemarketing companies popping up all over the place. It was no longer safe to answer your phone. People were starting to get annoyed, to put it mildly.

To the rescue came congress and the beginning of telemarketing laws as we know them today was just on the horizon.

Congress actually got into the act in 1991. What they did was pass an act that granted consumers certain rights to defend themselves against these annoying telemarketing calls, no offense to those in the industry. One of the things they did, which was actually a work of genius, was to write up what was called an anti telemarketing script for consumers to use when receiving a call they suspected was a telemarketer. In this script they would ask questions like, “Are you calling to sell me something?” “Can you tell me your full name?” “Can you tell me the company name?” “Do they have a do not call list?” “Can you put me on that list?” If they answer no to any of these questions then you can legally sue them.

Congress was finally going to take a proactive role against annoying telemarketing calls. In addition to the script, obviously there had to be laws put in place. Unfortunately, congress didn’t have control over the telephones. This was an FCC matter. So the best congress could do was to go to the FCC and ask them to solve this problem, giving the FCC their suggestion to set up a national database of telephone numbers of all consumers who wished not to be called by telemarketers.

However, the FCC had other ideas, which didn’t surprise anybody. After all, by reducing the number of calls made, this meant less money for the phone companies and certainly this was not in the FCC’s best interests as unhappy phone companies meant an unhappy FCC. Therefore, what the FCC proposed was, what they called a more “cost efficient” series of “company do not call lists”, which essentially put the burden of calling every company the consumer didn’t want to be bothered by, on the consumer himself. So either you had to call the company beforehand, which was pretty hard to do, or you had to wait for them to call you first. Yes, this was certainly a great solution that the FCC had, one that nobody but the telemarketers and the FCC liked.

However, it didn’t last long. Finally, ten years later, the FTC did what the FCC wouldn’t do. Because of the drop in long distance rates, calls from overseas from telemarketers started to become very common. Many of these were outright scams. This is when the FTC said, enough is enough and stepped in.

Basically, what the FTC did was make it so that some serious restrictions were put on calls coming in from automated machines. No longer could these machines be the whole call itself. At some point a real operator had to come on and if the consumer wished, he could ask the operator a number of questions and ultimately be put on a do not call list which would take care of calls for all companies, not just the one calling. If the company failed to do this, they were held accountable.

The law itself is pages long and there is no need to reprint it here. You can see this law online if you wish by going to the FTC web site. You can register there to be placed on the do not call list. Telemarketing companies have to pay a fee to get this list and if you are on it, they must not call you or be subject to heavy fines.

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Michael Russell
Your Independent guide to Telemarketing
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When rates start going up, you should look at locking in your rate.

One of the worst surprises can be getting to closing and finding that your interest rate has increased. In fact, many potential homeowners don’t have any room for increases in interest rates.

“Anytime rates go up, rate locks are an issue. If you don’t lock in your rate, then your rate is floating with the market,” explains Jack Guttnetag, finance professor emeritus at the University of Pennsylvania’s Wharton School.

Traditionally, locking in your rate is the lender’s guarantee that your mortgage carries a specific interest rate, points and other terms. Make sure that you get it in all in writing. Don’t just take the lender’s word that rates won’t go up.

The lock on the rate will be good for a specific amount of time. If you don’t close before the time is up, then you will be facing rising interest rates.

“This is mainly a problem with a home purchase because a home buyer has so much at stake and is at the mercy of the market price as defined by the loan officer. If you get to closing and find someone has been playing games and things are not what you agreed to and you don’t have a rate lock, you are in a vulnerable position. If you are refinancing, you have options. You don’t lose the house if you don’t close on the scheduled date,” said Guttnetag.

If interest rates fall during the lock period, you lose out on the decrease in rate. You may be able to rewrite your lock, but you should expect it to cost you extra.

Some lenders offer what is called a “float down” option that will grant you with a lower rate if rate fall. While most locks are designed for the borrower’s benefit, some may not, so make sure that you understand everything in the lock agreement before you sign.

The contract should include a lock on as many of the costs as possible, including the interest rate and points. It should include your name, the lender’s name, the effective date and rate, the lock cost, what rate and terms are locked, the expiration date and time and any post-lock options.

Check to make sure that the rate you are locking in is the rate that was quoted to you on your application.

The length of the lock should allow for the settlement, contingencies and potential delays. Most locks average 30 days, but you will find them from 15 to 60 days. Ask about the average time for processing your loan and get an estimate from your agent on how long closing should take.

Once you lock in the rate, you need to make sure that you are approved and closed before the contract expires. If you have a floating lock, make sure that you keep your eye on the market to see if it has gone down.

A lock will cost you money. Like a mortgage, shop around for the terms and the cost. Some lenders will charge you even if you don’t close on the mortgage with an up-front fee. Others charge a fee at settlement. It could be a flat fee, a percentage of the mortgage amount, a fraction of a percentage point or a higher interest rate. The cost could vary depending on the lock, the options you choose and the mortgage program.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.

Bankruptcy is seen as the last resort. Bankruptcy is perceived to be the only way to escape the ever-constant demands for payment by bill collectors and credit companies alike.

Bankruptcy is not something that should be rushed in to. Certainly there are times when it can be very useful, but there are other times when declaring bankruptcy would be a big mistake.

The purpose of bankruptcy is to convert your possessions, and any wages you receive, into lump sum and instalment payments for creditors. A debtors purpose to apply for their own bankruptcy is to form a moratorium (a group of creditors) to agree part repayment of all outstanding debts, and when the agreed repayment has been met, to have a ‘clean slate’.

The constraints which are put upon you once you are declared bankrupt make it only a viable option in the most extreme of cases. It is more likely that an Individual Voluntary Arrangement will be the answer to severe debt problems, since it provides much of the relief offered by bankruptcy but without the severe constraints which bankruptcy imposes.

Individual creditors cannot take action against you. They must make a claim through the ‘trustee’ (the name of the person who controls a bankruptcy) or write off their debt.

When appointed the trustee will advertise your demise in a number of newspapers to give all of your creditors a chance to make a claim against the bankruptcy.

It is also the responsibility of the bankrupt to make an honest list of all creditors: as a bankruptcy is also a chance to start again the bankrupt should ensure every creditor is notified. Not that a creditor could make a claim against you after a bankruptcy, but it will get all your creditors of your back.

A bankruptcy order takes precedence over all other forms of debt recovery. All creditors have the right to be included in the list of creditors, and benefit from any payment arrangement.

If you own your home you would be fortunate to keep it. You can keep household ‘essentials’ such as, bed, fridge, heating appliances but not, TV’s, video recorders, computers - unless used for work, or used to get work.

All ‘tools of trade’ are protected, but will be scrutinized.

A bankruptcy will normally last until the third anniversary of the bankruptcy order. During this time you are not allowed to hold a public office, become a company director (or in all but name run a business) and you must not apply for credit over £250 without notifying the lender of your bankruptcy.

Your credit file will show your bankruptcy for six years from the bankruptcy order.

You may freely reprint this article provided the author’s biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.