Clarkhoward.com - Clark's Credit Freeze Guide

Clark has taken about 8 calls over the last several months that he thought were UFO questions with no connection to each other. People have been telling Clark they're getting harassed by collectors over debts that were wiped away when they filed for bankruptcy, or that debts that had been thrown out in bankruptcy court are showing up on credit reports as outstanding. Then Clark read Business Week's recent cover story "Prisoners of Debt" and it all made sense: Certain banks, collection agencies and credit bureaus are working together to undermine existing bankruptcy laws. When you file for Chapter 7, you get a bad mark on your record for 10 years. The tradeoff is that you also get to wipe out any credit card debts clean and clear. You usually first go through an evaluation process to see if you should pay a portion of your debts back under Chapter 13. Today you can only do Chapter 7 if your situation is hopeless.

Business Week discovered that Capital One, Bank of America, Chase and Discover are ignoring these bankruptcy laws -- by accident or on purpose -- and illegally selling debts to collection agencies so they can go after you. This flouts the law of the land, whether you agree with it or not. When a Chase lawyer was questioned by a judge about why they've sold bankrupt debts, the lawyer replied that it happens all the time. The Business Week article says the banks claim this is all an unintentional mistake. But there's a clear pattern here: First the lenders fail to wipe out the debt when you file for bankruptcy. Then they sell it off to collectors and score some cash. Next the collectors try to illegally collect the money. Finally, the credit bureaus act as co-conspirators by listing debts on your report that aren't valid. So if you've filed for bankruptcy and are caught in this vicious circle, contact the banks and bureaus by phone and in writing. Try getting them to update the status of your legally expired debts. If that doesn't work, go back to the bankruptcy court where you filed and talk to the judge.

Clark recently had the odd experience of a salesperson at an electronics store coming up to him and thanking him for telling people to get warranties on HDTVs. Mind you, Clark is known for his opposition to extended warranties on electronics and computers. So what gives? The only think Clark can think is that people got confused about four or five years ago when he stated that Consumer Reports was neutral on the question of extended warranties for some electronics. But now the December '07 issue of Consumer Reports says that HDTVs are extraordinarily reliable and you can forego the warranty. In fact, the article is even titled "More reasons to skip an extended warranty." The latest finding is that there's only a 3 percent chance that an HDTV will need any repair during the first three years.

Consumer Reports also discovered that the most reliable LCD and Plasma TV brand is Panasonic. Dell, meanwhile, is 6 times more likely to break down. But even Dells are still reliable when compared with old-fashioned TVs. The No. 1 selling brand of HDTVs is now California-based manufacturer Vizio. Yet Vizio is not in the reliability ratings because they weren't around just a few years ago! The same thing holds true for newcomer Olevia. Together Vizio and Olevia hold three of the top five spots in the 32-inch and 37-inch categories. The best 46-inch buy is a Sony Bravia at $1,800, while the best 42-inch is a Toshiba for $1,100. But you can get a smaller, much cheaper set and still get good picture and sound. Finally, Clark has some words of advice for you when you're facing those high-pressure extended warranty sales pitches: NO, NO, NO! You'll probably need to give three objections before they leave you alone. One disgruntled salesperson even told Clark that if customers are too emphatic about not wanting the warranty, the salespeople are told by management to lie and say the product is out of stock. That way they'll have the inventory to sell to someone else who will buy the warranty. That stinks!

The Consumer Product Safety Commission and its current head, Nancy Nord, have emerged as villains for Clark in recent weeks. The job of a safety regulator is to ensure that safe products are on the market, right? So do you think it's a good idea for regulators to be wined and dined by the very people they're supposed to be monitoring? "No way not any day," as Clark says. But Nord has been taking all kinds of freebies from the companies she regulates. Clark issued a recent call for Nord to appear on the show and defend herself, but so far her press people haven't been receptive to the idea.

Now the White House is stepping in with new initiatives to keep kids and adults safe in the wake of some highly publicized food and product recalls. Most capitalists would not want to knowingly harm another human being through their business practices. But we still need a cop on the beat to ensure safety. Clark thinks Nord has such resentment toward government that now that she's in power she's trying to curtail government at every step. That's why Clark thinks she's been so lax in her duties. Once again, Clark wants to reiterate that he doesn't think Nord gets up in the morning and says, "How can I harm people today?" But wouldn't you want to know that toys you buy for your child are safe? Of course you would -- and the same goes for the food you give to your family. These are only reasonable expectations.