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Financial group agrees to judgment with Georgia in false telemarketing claim | State

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ATLANTA — Attorney General Chris Carr has announced that Burlington Financial Group LLC, Katherine Burnham, Sang Yi, and Richard Burnham (Burlington) have entered into a consent judgment with the state of Georgia and the Consumer Financial Protection Bureau to resolve allegations that they violated the Telemarketing Sales Rule, the Fair Business Practices Act, and the Debt Adjustment Act in connection with the marketing, sale, and provision of debt relief and credit repair services.

“Illegal debt adjustment practices exploit consumers who are already vulnerable, like older or at-risk adults, by hurting their credit and exposing them to legal consequences,” Carr said. “We will not tolerate this unfair conduct in Georgia.”

The attorney general and the CFPB allege that Burlington targeted financially vulnerable consumers — many of whom were elderly — through telemarketing solicitations in which the company falsely promised that its services would eliminate credit card debts and improve their credit scores. Burlington allegedly collected thousands of dollars in advance fees for its “debt validation” program, but ultimately misled consumers about the results its program would achieve, often leaving customers with increased debts, impaired credit scores, and, in some instances, exposed creditors to lawsuits and bankruptcy.

The company sent out mail solicitations to Georgia consumers on a monthly basis since at least 2015 to induce them into purchasing “Credit Card Relief Program” services, which it advertised would result in savings on credit card balances. The complaint alleges that those letters contain multiple deceptive statements misrepresenting the company’s name and location, and fabricating a debt “savings” for the consumers with no basis in fact.

The complaint further alleges that Burlington violated each of the three major provisions of Georgia’s Debt Adjustment Act. Debt adjustment companies cannot legally charge Georgia consumers more than 7.5 percent of the amount the consumer deposits with the debt adjustment company each month for distribution to his or her creditors. Georgia law also requires that all funds that debt adjustment companies accept from consumers (minus the authorized fees described above) must be provided to the consumer’s creditors within 30 days of receipt from the consumer.

Burlington, however, allegedly failed to distribute any of the money it collected to consumers’ creditors. Debt adjustment companies must also maintain a separate trust account for customer funds and specific insurance coverage to protect consumers. Copies of these audits and insurance policies must be filed annually with the Attorney General’s Consumer Protection Division. Burlington allegedly failed to comply with these provisions as well.

Finally, Burlington allegedly represented that it offers and provides “credit restoration” services to consumers. Credit repair services are prohibited by law in Georgia.

The consent judgment requires Burlington to permanently cease doing business in the state of Georgia and to pay $150,000 in civil penalties to the CFPB, $15,000 of which will go to the state. The affected consumers will receive restitution through the CFPB’s Consumer Restitution Fund. However, if the court determines that Burlington failed to disclose any material asset or that any of the financial statements contains any material misrepresentation or omission, Burlington will be required to pay $30 million in consumer restitution, and $8.1 million in civil penalties to the state of Georgia.

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Dave says: If you need a cosigner, you're not ready – Northeast Mississippi Daily Journal

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Dave says: If you need a cosigner, you’re not ready  Northeast Mississippi Daily Journal

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How to improve your credit score in 2021: Easy and effective tips

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If you’ve ever wondered “What is my credit score?” it’s probably time to find out. Having a good credit score can make life a lot more affordable. If you’re about to buy a house or car, for example, the higher your credit score is, the lower your interest rate (and therefore, monthly cost) will probably be.

Your number may also be the deciding factor for whether or not you can get a loan and ultimately determine if you are even able to buy something you want or need.

So, yes, the goal is to have the highest possible credit score you can, but increasing the number doesn’t just happen overnight. There are important steps to take if you want to increase your score, and the sooner you start working on it, the better.

“If you’re trying to increase (your credit score) substantially to accomplish a goal, you’re really going to have to have as much lead time as possible,” said Thomas Nitzsche, director of media and brand at Money Management International, a nonprofit financial counseling and education provider that advises people on how to legally and ethically improve their credit score on their own.

If you have fair credit and you’re trying to improve the number for a house purchase, for instance, you’ll want to start working on it at least a year in advance, he explained to TMRW.

But even though that sounds like a long time away, you can (and should!) start doing things right now to bump that number up. Below, see seven things you should do — and not do — to help improve your credit score:

1. Review your credit report

Review your credit report and look for errors that might be hurting your score. Morsa Images / Getty Images

The first thing you’ll want to do is pull up a copy of your current report so you know where you stand. You can get free reports from all three agencies — TransUnion, Experian, and Equifax — at annualcreditreport.com. Nitzsche said it’s important to take a moment and understand the financial snapshot of where you are today and where you want to be.

You’ll also want to take some time and look for any errors on your report, which could negatively impact your score. “If your name is misspelled, that’s not going to hurt your score,” he explained. “But if you see a late payment or missed payment (that’s in error), or maybe you have an account that should be reporting but isn’t, then that’s a problem and that will impact your score.”

If there is an error, you should dispute it and try to provide as much proof as you can.

One other thing: You can also ask a creditor to remove an issue if it’s been corrected (i.e., if you paid off a collection debt). Nitzsche said it doesn’t hurt to ask and the worst thing they could say is no.

2. Have good financial habits

“The biggest part of your credit score is payment history, so the most critical thing is never missing a due date,” Nitzsche said. Set up a monthly autopay or add all due dates to your calendar so you never miss a bill.

You can also achieve a higher score when you mix different types of accounts on your credit report. It may seem counterintuitive to get extra points for having debt in the form of student loans, mortgages and auto loans, but as long as you’re paying them off responsibly, it shows that you’re reliable.

3. Aim to use 30% or less of your credit at any given time

Know your credit limit and aim to only use 30% or less of it for a better credit score.Tim Robberts / Getty Images

Know your credit card limit, and try not to use any more than 30% of that number each month, otherwise your score could lose points for too much credit utilization.

Another thing you can do is ask your bank to increase your limit. “That will give you more flexibility to spend more,” Nitzsche said. You could also pay it off twice a month to keep the balance low. But he does warn that you never know when the balance is going to be reported to the bureau. It can happen at any point during the month, so it might be the day after you make the payment or the day before. “You don’t necessarily want to use the card and pay it the next day because that doesn’t give the bureau the chance to know that you’re using it,” he said.

4. Avoid requests for new credit

If you’re looking to increase your score around the time you want to buy a house or car, you won’t want to open up a new line of credit, like a retail card, credit card or loan. That’s because “hard” credit inquiries like those can lower your score, and sometimes it comes down to a few points over whether you’re approved or what your rate will be, Nitzsche said.

“Soft” credit inquiries, like when an employer checks your credit or when you pull your own report, won’t affect your score.

5. Keep all accounts open, even ones you don’t use anymore

Even if you don’t use that credit card from college, it’s a good idea to just keep it open because closing it could hurt your score. Nitzsche explained that you’ll be dinged some points for each account that is closed. If you want or need to mentally break up with a card, just cut it up instead.

6. Build your credit if needed

If you haven’t established credit yet, you might not even exist … in the credit report space, that is! “If someone has never fallen in delinquency on any subscriptions or utilities or never had collections on anything and they have not utilized credit cards or loans in the past seven to 10 years, they may not have a credit profile at all,” Nitzsche said. “That presents a challenge when you want to buy a home.”

If this sounds familiar, you may have to get a secured credit card where you put down a deposit, he advised. “You still have to make payments and use it responsibly. Not all banks offer them but you can usually check with your local bank or credit union.”

7. Reach out for help

If you want personal guidance on boosting your credit score, make an appointment with a credit counselor.kate_sept2004 / Getty Images

There are many apps and credit-monitoring services that can help you stay on top of your credit score. You could also reach out to a professional credit counselor who can help you navigate your specific situation. (Here’s a good resource about finding a reputable service.)

One last thing: Nitzsche warned that everyone should beware of credit repair scams that claim to be able to increase credit scores for an advance fee to get accurate negative information removed (even temporarily) from credit reports.

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Lifestyle News | ⚡How J&G Credit Recreations Assists Individuals to Gain Financial Stability Through Credit and Homeownership – LatestLY

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Lifestyle News | ⚡How J&G Credit Recreations Assists Individuals to Gain Financial Stability Through Credit and Homeownership  LatestLY

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