It’s been a big topic in the news this year. The amount of student loan debt has surpassed credit

card debt in the United States. As the cost of higher education continues to rise, so will student

loan debt. CCCS of Rochester/RethinkingDebt has developed a new program to help students

and graduates with their debt. In the past, we have dealt mostly with unsecured debt, not includ-

ing student loan debt. More and more people come to us each year asking for help with their stu-

dent loan debt. CCCS/RethinkingDebt decided that it was time to develop a program to help

these consumers.

Take into consideration the following facts and you will understand how great and wide reaching

the need for this program is.

• Student Loan debt has surpassed the $1 trillion mark as estimated by the Consumer Financial

Protection Bureau.

• Two-thirds of the class of 2010 graduated with student loan debt.

• The average student has $25,250 in student loan debt when they graduate.

• One in three graduates indicates they are struggling with repayment of the student loans.

• Student Loan debt is not dischargeable in bankruptcy.

A student loan session with a certified credit advisor will take up to 2 hours and consists of locat-

ing all loans, creating a budget, reviewing eligibility for consolidation and deciding which repay-

ment option will work best for the consumer. There is a $60 charge for the student loan counsel-

ing session.

Contact CCCS of Rochester/RethinkingDebt for an appointment to evaluate your student loan

debt at 585-546-3440- or 888-724-2227 or visit one of our websites for more information-

www.cccsofrochester.org or www.rethinkingdebt.org.

Student Loan Program

CCCS of Rochester/RethinkingDebt Headquarters: 1000 University Ave, Rochester, NY 14607 Fall 2012

Inside this issue:

Student Loans 1

New Program! 2

Debt Settlement 2

Creditor Lawsuits 3

Housing Help 4

Identity Theft 4

Secure Your ID Day 5

New Workshop! 5

Stay Connected 6

By: Lynette Baker, Director of Outreach and Marketing

Page 2

New Program – Priority Pay

The Priority Pay program is a brand

new addition to the many other ser-

vices offered at Consumer Credit

Counseling Service of Rochester/

RethinkingDebt. This program is

available to clients who, due to finan-

cial restrictions, do not qualify for a

traditional debt management program.

At your appointment with CCCS/

RethinkingDebt, you will speak with a

certified credit advisor and create an in

depth budget based on income, living

expenses, creditors, and amounts owed

to each creditor in order to see your

financial situation as a whole. This

will allow the advisor to determine the

most beneficial way to pay off out-

standing debt. Priority Pay allows our

clients to start debt repayment while

still maintaining their everyday living

expenses. Our staff understands each

individual has a unique financial situa-

tion, and we try to assist each client in

determining the best option based

upon their own individual needs.

Unlike the debt management program,

when on Priority Pay, there is not a

minimum payment requirement for

each creditor. Once a creditor is paid

in full, the funds can be reassigned to

another creditor with an outstanding

balance until all debts are paid in

full. There is no time restriction for

paying off the debt. This program sim-

ply allows you to start the process to

obtaining financial health by paying

one, two, or a few accounts at a time

without disrupting your monthly

budget. Our certified advisors would

be glad to schedule an appointment in

person or over the phone to review

your current debt situation. Call us!

There are a lot of dangers involved

in working with a debt settlement

company of which most consumers

are unaware. Debt settlement compa-

nies are for-profit companies that

claim that they can eliminate con-

sumers’ debt by negotiating settle-

ments with creditors that are a mere

fraction of the consumer’s out-

standing debt. Many of these com-

panies accomplish little for consum-

ers and charge hefty fees.

These companies advise consum-

ers to stop paying their creditors.

This is dangerous as the interest

rate will increase and late fees will

continue to accumulate causing the

amount you owe to climb. The

creditors are under no obligation to

settle for less money and often re-

fuse to do so. Consumers who fol-

low the debt settlement company’s

advice to ignore collection efforts

or refer those efforts to the debt

settlement company usually con-

tinue to find themselves subject to

creditors collection efforts, includ-

ing lawsuits. In addition, con-

sumer’s credit histories are further

damaged when the consumers stop

paying debts. If the debts are suc-

cessfully settled for less, there will

be tax implications affecting the

consumer’s personal income taxes.

Be very careful when choosing a

company to help with your debt. Do

your homework and check things

like their BBB rating.

If you know anyone that is going

through financial difficulty and is

considering a debt settlement as an

option, please visit the following

sites for further information about

settlements:

www.irs.gov

www.ftc.gov

www.ag.ny.gov if you’re outside of

New York please contact your local

Attorney General’s Office

www.cccsof rochester.org

www.rethinkingdebt.org

By: Danielle Grasta, Client Support Specialist

Debt Settlement Dangers

By: Destiney Fraguada, Advisor

Page 3

Defending Creditor Lawsuits

By: Frank Borgese, Esq., Partner at Graham and Borgese, LLP

Default Judgments. Every month in

New York State there are tens of

thousands of lawsuits filed by alleged

creditors (“plaintiffs”) against con-

sumers (“defendants”). It is estimated

that upwards of 90% or more of these

lawsuits result in default judgments

for the plaintiffs (meaning the person

who was sued did not even appear to

defend the case). This is often due to

the fact that the defendant was either

unaware of the lawsuit, was given

notice but ignored the process, or

made a mistake in procedure that

opened the door for the plaintiff’s

attorneys to take advantage. Once a

judgment is entered (whether it is by

default or not), a plaintiff is empow-

ered to institute measures such as

wage garnishment, frozen bank ac-

counts and/or liens on property, to

force the defendant to pay.

To help make sure you do not have a

default judgment entered against you,

it is important to educate yourself

regarding the legal process and be

proactive in defending your case or

hiring an attorney to do so. With that

in mind, below is a brief explanation

of the process and issues that often

arise for people being sued by a pur-

ported creditor.

Service. In New York, a creditor has

120 days after a lawsuit is filed with

the court to serve the defendant with

a copy of the Summons & Complaint.

These documents inform the defen-

dant of the allegations being made

against them, the amount of money

being sought as “damages,” explain

how much time the defendant has to

file a response (i.e. an “Answer”),

and where to file this paperwork.

How much time a person has to re-

spond to the Complaint depends on

how he/she was served. Ultimately,

the deadline for filing an Answer can

vary from court to court, but is ex-

plained at the bottom of the Sum-

mons. The deadline is always set

from the date in which the defendant

was served (this means that the dates

on the paperwork really don’t affect

your deadline at all). It’s also impor-

tant to note that an Answer must be in

writing and should be served upon

the plaintiff and/or court to make sure

that a default is not entered. Tele-

phone calls with the plaintiff’s attor-

ney after service do not constitute an

Answer and do not stop the legal pro-

ceedings – even if you come to an

agreement regarding settlement by

phone. It is always a good idea to

have agreements in writing.

Ultimately, an Answer must set forth

all legal defenses that the defendant

believes should prevent a judgment

from being entered (i.e. the filing was

past the statute of limitations, it is not

a valid debt, etc.). Stating only that

you don’t have money to pay or that

you incurred the bill because of an

unexpected expense/event is not a

legal defense and will probably result

in the plaintiff obtaining a judgment

anyway. Thus, if you have any ques-

tions, you should probably consult

with a local attorney for further infor-

mation and guidance.

Note: If someone is not served with a

Summons & Complaint, and only

learns of the judgment from an out-

side source, then it is likely in that

person’s best interest to speak with

an attorney to determine whether the

judgment can be vacated (i.e. thrown

out).

What’s next? Once an Answer is

properly filed, both sides typically

engage in “Discovery.” This is a

process whereby each side tries to

gather information that can help their

case. Often times, discovery takes the

form of a list of questions that needs

to be answered and/or a written re-

quest that certain types of evidence

be produced. Everything must be an-

swered truthfully and by a deadline

(which will be set forth by the re-

quests). If, however, the plaintiff

feels as though they already have

enough proof to win the case without

engaging in discovery, they may file

a motion to try and have a judgment

entered. If such a motion is filed, then

a reply needs to be drafted that chal-

lenges the plaintiff’s assertions and it

again must be filed by a certain dead-

line, specified by the motion itself.

Ultimately, throughout this process

the parties can try to negotiate a set-

tlement, but if the sides are unable to

do so (and assuming the case hasn’t

been decided by a motion) then the

court will schedule a trial in which

both sides must present their argu-

ments/evidence.

Conclusion. It is easy to understand

why the legal process can be difficult

to understand and lead someone to

feel overwhelmed. However, infor-

mation empowers and it is extremely

important to know that you are not

alone and there are consumer law

attorneys available to represent your

interests and prevent injustices from

occurring if you desire. If you would

like to learn more about your rights,

protections and even procedure, visit

www.grahamborgese.com for more

information.

Page 4

CCCS of Rochester awarded Housing Grant

CCCS of Rochester has been

awarded a grant to help homeowners

stay in their homes. As part of NYS

Attorney General Schneiderman’s

Homeowner Protection Program,

CCCS of Rochester will provide

counseling services to homeowners

in danger of foreclosure.

Earlier this year, New York, along

with 48 other states and the federal

government, reached a landmark $25

billion agreement to reform the abu-

sive servicing and foreclosure prac-

tices of the nation's five largest mort-

gage servicing banks: Ally/GMAC,

Bank of America, Citibank, JPMor-

gan Chase, Wells Fargo.

This settlement represented the first

step, providing a down payment to

struggling homeowners, as well as to

some who have already been the vic-

tims of wrongful foreclosure.

The housing foreclosure crisis has

had a devastating impact not only on

families whose homes are subject to

foreclosure, but on surrounding com-

munities. Housing value losses can

create neighborhood blight, diminish

critical local tax revenues, and con-

tribute to neighborhood crime.

For these reasons, AG Schneiderman

is dedicating a substantial portion of

funds awarded to New York to sup-

port the work of direct service pro-

viders who specialize in delivery of

legal services and housing counsel-

ing to at-risk homeowners. This ef-

fort will minimize homeowner dis-

placement and foster the stabilization

of neighborhoods for the benefit of

the public and the State as a whole.

His office is committing $60 million

over three years to fund housing

counseling and legal services for

struggling New York homeowners.

CCCS of Rochester will help provide

the counseling part of this settlement

in Monroe County and the surround-

ing counties, including Livingston,

Ontario, Wayne, Orleans, Genesee,

and Wyoming.

By: Lynette Baker, Director of Outreach and Marketing

Don’t let the Grinch (or anyone else) steal your identity

National Foundation for Credit Counseling

While Identity Theft is a problem

any time of year, during the holiday

season there is much more shopping

online and in stores. Consumers are

focused on giving this time of year,

the crooks are focused on taking.

The NFCC offers the following tips

to help consumers protect them-

selves during the coming weeks:

Have a constant awareness of

your surroundings– crowded malls

and distracted shoppers are the per-

fect combination for a pick-pocket.

Don’t carry large sums of cash–

In place of credit or cash, use a debit

card for holiday purchases.

Guard your PIN at the ATM– If

you choose to pay with cash, you

might be making frequent trips to the

ATM. Be aware of anyone lurking

around and/or looking over your

shoulder.

Don’t let your credit (or debit)

card out of your sight- Make copies

of both sides of your cards, just in

case they are lost or stolen.

Keep track of all receipts and

open your credit statements as soon

as they arrive– Receipts are just as

valuable as your credit card to a

thief. Check your credit statements

as soon as possible to detect any

theft.

Order your credit report– Con-

sumers are allowed one free credit

report every 12 months from each of

the three credit bureaus. These give

you a snapshot of your current activ-

ity and alert you to anything unusual.

In spite of all your efforts, if you are

a victim of ID Theft, reach out to

CCCS of Rochester/RethinkingDebt

as soon as possible. Our certified

credit advisors can assist you

through the steps to recovery from

ID Theft. Call us at 585-546-3440 or

1-888-724-2227 or visit our websites

at www.cccsofrochester.org or

www.rethinkingdebt.org.

Page 5

Secure Your ID Day 2012

Identity Theft struck the lives of over

12 million Americans in 2011 despite

the fact that it can be easily avoided.

To raise awareness about how this

crime occurs and how to prevent it,

CCCS of Rochester and the Better

Business Bureau held their third an-

nual “Secure Your ID Day” at the

Tops Market on Mt Read Blvd on Oc-

tober 20th. This free event allowed

consumers to have their personal docu-

ments shredded onsite and to receive

valuable literature that will assist them

in keeping their personal information

secure. Event sponsor Shred-It re-

ported 3,300 pounds of personal docu-

ments were shredded and destroyed.

This year’s event marked the first time

that our agency partnered with Sunnk-

ing Recycling to provide free elec-

tronic recycling. With the constant

advancement in cell phone and com-

puter technology, we fielded many

questions about what to do to ensure

personal information isn’t stolen when

it’s time to get rid of a device. By

bringing old electronics, consumers

ensured that their device would be

disposed of responsibly and that their

personal information would be com-

pletely removed before recycling.

CCCS offers these tips to keep your

personal information safe:

Shred all documents with personal

information.

Do not give out your Social Security

number, don’t carry it with you, or put

your number on checks.

Never click on links sent in unsolicited

emails.

Install reputable antivirus or anti-

spyware programs onto your computer

and keep them up to date.

Review your bank, financial or credit

statements monthly to ensure there is

no questionable activity. Report all

suspicious items immediately to your

institution.

Monitor your credit report at least

twice a year. (If you are unsure on how

to read contact CCCS Rochester to

schedule a time to meet with a certi-

fied counselor.)

Register with the National Do Not Call

Registry (1-888-382-1222 or

www.donotcall.gov)

Dispose of all personal electronic de-

vices by giving them to a reputable

recycling company.

Never leave ATM or credit card re-

ceipts behind.

New Workshop

By: Andrea Colline, Outreach Coordinator

At CCCS of Rochester, we under-

stand you might not know what to

do when you fall behind on your

mortgage payments. This can hap-

pen for a number of reasons. Fortu-

nately, we can offer some assis-

tance. We use HUD guidelines to

provide you with foreclosure pre-

vention counseling and assistance.

We also are supported in this work

by the National Foreclosure Mitiga-

tion Counseling Program. The time

we spend with you is free of charge.

If your mortgage is delinquent, do

not delay, take action now!

To help consumers with this proc-

ess, CCCS of Rochester recently

added a new workshop to our calen-

dar of events. The title of the work-

shop is “Preserving Homeowner-

ship Through Foreclosure Preven-

tion”. The purpose of this work-

shop is to:

Walk people through the fore-

closure process and understand

the application process.

Establish a budget.

Set priorities.

Determine and select the best

available options.

Take action if your mortgage is

already delinquent

Communicate with your lender

and identify the best course of

action

The date of the next class is

12/17/2012 from 6-7pm and will be

held in our office at 1000 Univer-

sity Avenue. Check the calendar on

our website for future dates.

Non-Profit Org

US Postage

PAID

Rochester, NY

Permit NO. 986

Toll Free Phone: 1-888-724-2227

Email: RTD.info@rethinkingdebt.org

Headquarters:

1000 University Ave., Suite 900

Rochester, NY 14607

Phone: (585) 546-3440

Fax: (585) 546-5693

Toll Free- (888) 724-2227

This newsletter is a publication of CCCS of Rochester/ RethinkingDebt.org, a Not-for-Profit agency. It is a source of information for clients, sponsors, representatives of the credit industry, and the service networks supportive of our mission and vision.

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