About the CCCSN
The Consumer Credit Counseling Service of Nebraska (CCCSN), founded in 1971, is the Nebraska’s longest serving national nonprofit credit counseling organization. The CCCSN’s mission is a service organization providing financially responsible behavior and to deliver the highest quality financial education and counseling services. CCCSN annually help over 8,000 consumers families through out the State of Nebraska and Western Iowa. For free and affordable confidential advice, call 1-877-494-2227, (en Español 1-877-881-2227) or visit www.cccsn.org.

Press Release
Contact: Ivonne Rivera
1-877-881-2227

Consumer Credit Counseling Service of NE, Inc.
Provides Foreclosure Intervention and Default Counseling

CCCSN is a HUD approved housing counseling agency. All of the branch offices (Omaha, Lincoln, Grand Island, North Platte and Norfolk) are full-service housing counseling offices. The 13 certified counselors can provide housing counseling services. Our counselors are certified through the National Foundation for Credit Counseling (NFCC) and most recently have completed the Foreclosure Intervention and Default Counseling Certification program offered thru Neighborworks Training Institute.

CCCSN has a combined experience of over 31 years of counseling. The counselors will work to resolve the problem by contacting the lender and will discuss with the client a possible solution or other options for their problem. We are ready to help you find a solution to the housing issue you face.

Consumer Credit Counseling offers these tips:

1. Arrange an appointment with CCCSN to explore your options. Call toll-free 1-877-881-2227.

2. Contact your mortgage lender immediately.

3. Stay in your home to ensure you qualify for assistance.

4. Cooperate with the counselor or lender trying to help you.

5. Explore every alternative to losing your home and damaging your credit.

6. Watch out for scams.

7. Don’t sign anything you don’t understand.

8. Signing over the deed to someone else does not necessarily relieve you of your loan obligation.

9. Don’t delay. If you do nothing, you will lose your home and your good credit rating.

CCCSN is a member of the National Foundation for Credit Counseling and licensed in Nebraska and Iowa. We are accredited by the Council on Accreditation of Services for Families and Children, Inc., and we are a U.S. Housing and Urban Development (HUD) agency.

For Immediate Release      
Contact: Sharon Taubert

IT’S TIME TO PAY THE PIPER, BUT WHAT IF I CAN’T PAY? 
NFCC and Consumer Credit Counseling Service of Nebraska
Remind Consumers of Fair Debt Collection Protections

Omaha, NE – The holiday hangover has begun, and it may take more than strong coffee to relieve it.  Estimates show that consumers spent close to $1,000 this holiday season, often adding those charges to an already burdensome debt load.

“Piling new debt on top of old is never smart, but in today’s economic environment, it’s downright dangerous to accumulate debt you cannot readily repay,” said Sharon Taubert.  “According to the National Foundation for Credit Counseling’s (NFCC) Financial Literacy Survey co-sponsored by MSN Money, roughly 15 million Americans are already receiving calls from collectors or considering filing for bankruptcy.  Therefore, any new debt may be the final nail in the financial coffin.”

Collectors also may become more aggressive in 2009.  Consumers who are delinquent on accounts are likely to receive calls or letters from creditors sooner than in the past.  Since money is tight, the creditors want to be first in line, thus enhancing their chance of being repaid.  

Realizing that holiday bills are arriving, and millions of consumers may have accounts in collections with a third-party collector, or headed there, the CCCSN wants to remind people of the protections afforded by the Fair Debt Collection Practices Act:

• When can they call? - A debt collector may contact you in person, by mail, telephone, telegram, or fax.  However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree to such times.  

• Can they call me at work? - You may not be contacted at work by a debt collector if the collector knows that your employer disapproves of such contacts.

• Can they harass me? – A collector may not use threats of violence or harm, use obscene or profane language, or repeatedly use the telephone to annoy you.  Further, they may not imply that you’ve committed a crime or will be arrested if you do not pay your debt, or pretend that they are an attorney or are a government representative if they are not.  

• Is there any way to get collection efforts to stop? - The consumer can stop all contact from the collector by writing a letter to the collector telling them to stop.  Once the collector receives the letter, they may not contact you again except to say there will be no further contact, or to notify you that the debt collector or the creditor intends to take some specific action.  

• Can they tell others about my debt? - A debt collector may contact other people, but only to find out where you live, what your phone number is, and where you work.  Typically, they may only contact a third party once, and in most cases, the collector may not tell anyone other than you and your attorney (if you have one) that you owe the debt.

• What if I don’t think I owe the debt? - You are entitled to a verification of the debt within five days of initial contact.  This confirmation must be sent to you in writing and must include the amount of money you owe, the name of the creditor to whom you owe the debt, and provide you with options to take if you do not owe the money.

• Can they continue to contact me after I dispute the debt? – Collection efforts may not continue if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe the money.  However, a collector can renew collection activities by providing you with proof of the debt.

Job loss and financial instability have forced many consumers into making tough choices when it comes to how they allocate their money.  Such decisions can result in accounts going into collections.  Even if this happens, the consumer deserves to be treated fairly, which is most often the case. 

However, if a consumer comes in contact with a collector who crosses the line, the problem should be reported to their state Attorney General’s office and the Federal Trade Commission.  Abuses can result in fines for the collection agency, but equally important, reporting such violations can save others from being taken advantage of. 

For help with any credit or debt problem, contact Sharon Taubert by calling 1-877-881-2227 or find the agency closest to you online at www.cccsn.org.

For Immediate Release  
January 9th, 2009
Contact: Sharon Taubert
(402) 333-8609 ext. 315                                                                                                                      

CREATE YOUR OWN STIMULUS PLAN
Regaining Control of Finances Should be Number One New Year’s Resolution 

Omaha, NE – Although the federal government and many household budgets have one thing in common, both are in the red, there is one critical difference:  consumers cannot print more money in order to make ends meet.  Further, they cannot operate in the negative year after year, or financial doom is a certainty.

“Many consumers have been renting their lifestyle by living off of credit, and it’s time they took ownership,” said Sharon Taubert, spokesperson for Consumer Credit Counseling Service of Nebraska (CCCSN).  “For some people, their financial situation has gotten so bad that they feel like even the light at the end of the tunnel has been turned off.  But there is an answer, and it lies in going back to the basics. Resuming control over their finances should be at the top of everyone’s New Year’s Resolutions list for 2009.”

The CCCS recommends these four basic steps that are essential to building a new level of financial stability: 

• Know where your money goes.  The National Foundation for Credit Counseling Financial Literacy Survey co-sponsored by MSN Money revealed that close to 40 million adults keep little or no track of where their hard-earned money goes.  Tracking your cash flow is essential to regaining control over your finances.  Commit to writing down every cent you spend for 30 days.  This can be a very eye-opening experience for many, as it often reveals spending patterns that need some serious adjustments.

• Build a budget.  Budget is not a four-letter word.  Call it a spending plan if you must.  Once you have tracked your spending, you can then categorize it starting with living expenses, followed by debt repayment.  At this point you may discover that you’ve got more month than money, but that’s ok because you’re now in control of your finances, thus you can take the necessary steps to resolve any deficit.  Do whatever it takes to reconcile your income and expenses.  This is easier said than done if you’ve created a lifestyle that your income won’t support, of if a job loss is involved.  Drastic changes may need to take place.  Just make sure every decision moves you closer to your goal of financial peace of mind.

• Attack debt as though it was the enemy, because it is.  You already knew it, but now it’s time to do something about it.  High interest credit card debt coupled with high debt loads can be toxic to any budget.  If you’ve dug a deep financial hole, stop digging.  Do not add new debt on top of old.  Put a freeze charging, with no exceptions allowed.  If the balance on any card exceeds 30 percent of the credit limit, devote all extra money to paying down that debt.  Creditors consider you a risk if you use too much of your available credit, and can then lower your limit and raise your Annual Percentage Rate making it even harder for you to repay what you owe.  

• Commit to saving.  Save for today and save for tomorrow.  Not only do consumers lack a rainy day fund, they’ve recently discovered that it’s raining and they can’t even afford the umbrella.  If this is you, do something about it.  Have 10 percent of each paycheck automatically deposited into an interest-bearing savings account.  You’ll never miss this money, and at the end of a year, you’ll have a little over one month’s income socked away for emergencies.  Plan for tomorrow by contributing to your company’s retirement plan.  If they match your contribution, deposit at least that amount or you’re missing out on free money.  

“Consumers have allowed their finances to operate on automatic pilot for too long.  They are now eager to move back into the driver’s seat and get their financial well-being on course.  The good news is that this is entirely possible, but it all starts with the basics.  Implementing the above four elements will lay the foundation upon which consumers can build their financial future, and January 2009 is the time to start,” continued Taubert.

For help turning these steps into action, reach out to Consumer Credit Counseling Service today.  You can contact us at 877.494.2227 or via our website www.cccsn.org
 

Consumer Credit Counseling Service of Nebraska, Inc. (CCCSN) is a non-profit community service organization, dedicated to delivering professional consumer credit education, confidential counseling and debt management to all segments of society regardless of their ability to pay. 

CCCSN was established in 1976 in Omaha, Nebraska and has served the State of Nebraska and Western Iowa with 6 branch offices and 3 satellite offices. 

CCCSN is a member of the National Foundation for Credit Counseling (NFCC).  The NFCC was founded in 1951. The NFCC is the nation’s oldest and largest nonprofit credit counseling organization with more than 110 member agencies and nearly 1,000 offices nationwide.  The NFCC sets the national standard for quality credit counseling, debt reduction services and bankruptcy counseling and education, and education financial literacy training.  

CCCSN is certified by the Council of Accreditation for Children and Families, based out of New York City, New York.  

“The accreditation process is designed to meet the needs of diverse organizations. An organization is evaluated against best-practice standards, which are developed using a consensus model with input from a wide range of service providers, funders, experts, policymakers and consumers.”

HUD Chief Calls Aid on Mortgages A Failure
Congress Blamed For Shortcomings

By Dina ElBoghdady
Washington Post Staff Writer
Wednesday, December 17, 2008; A01

Secretary of Housing and Urban Development Steve Preston said the centerpiece of the federal government's effort to help struggling homeowners has been a failure and he's blaming Congress. 

The three-year program was supposed to help 400,000 borrowers avoid foreclosure. But it has attracted only 312 applications since its October launch because it is too expensive and onerous for lenders and borrowers alike, Preston said in an interview. 

"What most people don't understand is that this program was designed to the detail by Congress," Preston said. "Congress dotted the i's and crossed the t's for us, and unfortunately it has made this program tough to use." 

The criticism comes as Congress prepares to weigh in with further plans to help distressed borrowers facing foreclosures, which are at the root of the financial meltdown. This week, House Speaker Nancy Pelosi (D-Calif.) demanded that the Treasury Department use some of the money from the $700 billion emergency rescue package to help at-risk homeowners.

One of several federal and state foreclosure prevention initiatives facing difficulties, HUD's Hope for Homeowners program has been especially hamstrung. For instance, a program launched by the Federal Deposit Insurance Corp. on behalf of IndyMac Bank customers has modified more than 3,500 mortgages in two months of operation.

Rep. Barney Frank (D-Mass.), who helped steer the HUD program through Congress, said some of the federal bailout money should be used to revamp it. Frank acknowledged the initiative has its problems, but he blamed them on the Bush administration.

"That's partly their fault," said Frank, chairman of the House Financial Services Committee. "The administration was critical of the program and kept putting pressure on us to make it cheaper and more restrictive. . . . If it hadn't been for the Bush administration's opposition, we would have written it in a better way in the first place."

The goal of the program, run by the Federal Housing Administration, was to allow borrowers who owe more than their homes are worth to refinance into more affordable 30-year fixed-rate mortgages insured by the government.

But part of the problem is that the program's success hinges on the lenders' willingness to participate. 

Congress originally allowed the FHA to insure new loans for only 90 percent of a home's value. With home prices plunging, borrowers who have little or no equity in their homes and cannot otherwise come up with the remaining 10 percent qualify only if the lender forgives this balance. Lenders balked. 

Late last month, Congress granted HUD permission to increase the amount that's insured and the department decided to guarantee up to 96.5 percent of the value of new loans. Preston in the interview praised that change. But its impact remains unclear. 

"Getting the lenders to agree . . . has been our biggest challenge," said Peyton Herbert, director of foreclosure services at HomeFree USA, a housing counseling firm in Hyattsville. "They want dollar for dollar what's owed on that loan or something close to it. That's the fly in the ointment." 

The list of impediments goes on. Borrowers who participate in the program must pay hefty fees and high interest rates, and they must split any increased value with the federal government when the home is sold. 

"You're paying a premium to borrow the money already, and that ought to be enough," said John Taylor, chief executive of the National Community Reinvestment Coalition. "To me this falls into the category of, we want your firstborn."

A further hindrance: The mortgage payment must exceed 31 percent of a borrower's income as of March, which does not help people who have since fallen into trouble. 

Add to that the fact that borrowers must also provide two-years of financial records and sign a statement that they did not give false or misleading information on their original loan application and the bar gets even higher. It becomes even more difficult to attract borrowers who took out loans without verifying their income. 

"How do you do that?" Preston said. "That was legislated." 

For all those reasons, FHA Commissioner Brian Montgomery said he got an earful from agitated lenders, housing counselors and real estate agents at a seminar last month in Atlanta designed to educate housing professionals about the Hope for Homeowners program.

"What we thought would be a civil and cordial exchange with the several hundred people gathered turned into an almost rock-throwing episode," Montgomery said. 

He said Capitol Hill lawmakers were hampered by a philosophical divide within their ranks when they cobbled the program together and that led to a compromise that made little sense.

"There were two philosophies on the Hill: Let's throw the barn door open and help as many people as we can regardless of the reasons. Or we need to make them pay because they should have known what they were doing," Montgomery said. "They found some middle philosophical ground, but that philosophical middle ground made [the program] unworkable." 

Montgomery complained that any minor adjustment to the program must be passed through an oversight board, which further slows the FHA's response time. 

Frank called Montgomery's assessment of Congress's handling of the legislation "dishonest." 

As for oversight, he said the board is made up of Bush appointees. "Shame on them if that's the problem." 

Frank acknowledged, however, that concessions had to be made to make the program palatable to the American public. This is why borrowers who take part in it must share any gains from appreciation in home values with the government. 

"You're not going to get a program approved that helps people refinance loans on their homes and then allows them to turn around the following year and make a profit on that home," Frank said. 

Frank provided a letter he wrote to Treasury Secretary Henry M. Paulson Jr. in late November urging him to use the bailout money Congress approved for rescuing the financial markets to reduce the upfront and annual fees, because these are reducing use of the Hope for Homeowners program.

In another letter to Paulson, Preston, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila C. Bair, Frank made a few more suggestions and praised HUD's decision to increase the proportion of loans that the FHA can insure to 96.5 percent from 90 percent.

But yesterday, he said the FHA's leadership in these trying times has been a "disappointment." 

Montgomery said Frank's ire at his agency is misdirected. "Barney Frank may have a beef with some of the Republicans," he said, "but he shouldn't have a beef with us."