Meanwhile the rich get richer....

Helped by a lightened debt load, Ford Motor Co. posted a surprise second-quarter profit of $2.3 billion Thursday, following the worst loss in company history a year earlier. Shares rose 8 percent in morning trading.

The net profit ends a string of four straight quarterly losses for the nation's second-largest automaker, which has gained U.S. market share at the expense of crosstown rivals Chrysler Group LLC and General Motors Co., both of which spent time under bankruptcy court supervision. Ford last went into the black in the first quarter of 2008, with net profit of $70 million.

However, excluding its debt reduction and other items, Dearborn, Mich.-based Ford would have reported a quarterly loss, though smaller than Wall Street expected.

Chief Financial Officer Lewis Booth said the improved second-quarter results are a sign that the company's cost cuts and emphasis on new products are paying off. He stuck to Ford's earlier prediction that it would return to annual profitability in 2011.

"We're 18 months away, I guess," he told reporters on Thursday, adding that a full year of profitability hinges on improved auto sales in the U.S. and Europe.

Unlike GM and Chrysler, Ford avoided bankruptcy and government loans, mainly by borrowing or setting up credit lines totaling $23.5 billion in 2006 and 2007 to prepare for an economic downturn. Since then the company has cut costs and rolled out new vehicles, mitigating its sales decline in the worst auto sales market in more than a quarter-century.




Ford reported second-quarter net income of 69 cents a share, compared with a loss of $8.7 billion, or $3.89 a share, for the same quarter a year ago.

The profit came from a $3.4 billion accounting gain due to debt reduction. Earlier this year the company swapped stock and cash to reduce its loan and bond debt by $10.1 billion, cutting its interest payments by more than $500 million.

Ford also raised $1.6 billion by selling 345 million more shares during the quarter, and said it is likely to take further steps this year to lower debt and raise cash.

The company made $1.8 billion in structural cost cuts for the quarter, including 1,000 blue-collar job cuts through buyout and early retirement offers. Ford now has 47,300 factory workers, which it says is about the correct level.

But excluding special items, including the debt reduction, Ford would have lost $424 million, or 21 cents a share. Still, the results beat analysts' expectations of a per share loss of 50 cents on revenue of $24.7 billion. Excluding special items, the company lost just over $1 billion in the second quarter of last year.

Revenue totaled $27.2 billion, 40 percent less than a year earlier as the worldwide auto sales slump continued.

Ford spent $1 billion more in cash than it earned in the quarter, compared to $1.4 billion in the first quarter of 2009.

In its main market of North America, Ford reported a much smaller pretax loss of $851 million, down from a loss of $1.3 billion in the year-ago quarter.

Ford is predicting a modest improvement in U.S. sales next year to about 12.2 million light vehicles. Sales so far this year have run below an annual rate of 10 million. In the U.S., the Ford, Lincoln and Mercury brands gained two percentage points of market share, ending the quarter at 16.4 percent.

Ford's shares rose 52 cents, or 8 percent, to $6.90 in morning trading after rising to a 52-week high of $6.99 earlier in the session.

The automaker also reached a new agreement with the United Auto Workers union to change how it will pay the $13.1 billion it owes to a health care trust. That trust will take over retiree medical costs starting in January.

Ford now will be able to pay up to $6.5 billion in company stock at market value, company spokesman Mark Truby said. An agreement reached earlier this year set the stock price at $2 to $2.20, but the share price has risen to $7.

He said the new deal would require the company to issue fewer shares, reducing dilution for existing shareholders.

The company and union are still talking about other aspects of the union contract, as the company seeks to be competitive with concessions the UAW granted GM and Chrysler.

email me at tjdangerfield@yahoo.com

Unemployment rises...ok Obama...

I say you click here and get your credit report if you have lost a job...


The number of newly laid-off workers seeking jobless benefits rose last week, though the government said its report again was distorted by the timing of auto plant shutdowns.

Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.

The Labor Department said Thursday that its tally of initial claims for unemployment insurance rose by 30,000 to a seasonally adjusted 554,000. That was above analysts' estimates of 550,000.

The increase follows two straight weeks of sharp drops largely because automakers didn't lay off as many workers as expected in early July. General Motors and Chrysler temporarily shut down many of their plants earlier than usual this year, in May and June, after filing for bankruptcy protection and restructuring their companies.

A department analyst said the government's seasonal adjustment process expected claims to drop sharply last week, after the normal pattern of auto layoffs was complete. But that didn't happen, causing seasonally-adjusted claims to rise.

Still, some economists saw positive signs in the report. The four-week average of claims, which smooths out fluctuations, dropped to 566,000, its lowest level since January.

"The trend in jobless claims is still downward," Joseph Lavornga, chief U.S. economist at Deutsche Bank, wrote in a note to clients.

But Lavornga also said the unemployment rate likely will keep rising as long as initial claims remain above 400,000. He expects the jobless rate to increase to 9.6 percent this month, from a 26-year high of 9.5 percent in June.

The financial markets shrugged off the news. The Dow Jones industrial average added about 110 points in morning trading and broader indices also rose.

Still, weekly claims remain far above the 300,000 to 350,000 that analysts say is consistent with a healthy economy. New claims last fell below 300,000 in early 2007. The lowest level this year was 488,000 for the week ended Jan. 3.

The total jobless benefit rolls, meanwhile, fell by a more-than-expected 88,000 to 6.2 million, the lowest level since mid-April. And the four-week moving average of claims, which normally smooths out some volatility, fell by 19,000 to 566,000.

But the number of people on emergency extended state and federal programs continued to rise. Unemployment insurance recipients can receive up to 53 weeks of additional benefits from the emergency programs, on top of the 26 weeks typically provided by the states.

When the extended benefit rolls are included, more than 9.1 million people received jobless benefits for the week of July 4, the latest data available.

The recession, which started in December 2007 and is the longest since World War II, has eliminated a net total of 6.5 million jobs. The unemployment rate in June rose to 9.5 percent, a 26-year high.

More job cuts were announced this week, many by major airlines.

Houston-based Continental Airlines Inc. reported a quarterly loss of $213 million and said it would slash 1,700 more jobs on top of 1,200 already announced. Southwest Airlines Co., which has never laid off workers, announced that 1,400 employees — about 4 percent of its work force — took offers of cash and travel benefits to leave the Dallas-based company.

Among the states, New York reported the largest increase in initial claims, with 12,504, which it attributed to higher layoffs in the construction and transportation industries. The next largest increases were reported by North Carolina, Florida, Missouri and Tennessee. The state data lags initial claims by one week.

Michigan reported the largest decrease, with 6,648, which it attributed to fewer layoffs in most industries. Massachusetts, New Jersey, Indiana and California reported the next largest drops

This can save you money in debt settlement

I love arguing with friends...

So today.."Since I have nothing better to do" I spoke with a lobbyist friend of mine and an attorney..
We debated something that could have an impact on Debt Settlement companies wishing to do business in California. The Check Sellers, Bill Payers and Proraters Law. Personally I know some individuals and companies who wish this would just go away, but....It's not.

The definition of proraters, found in Financial Code section 12002.1, states: A prorater is a person who, for compensation, engages in whole or in part in the business of receiving money or evidences thereof for the purpose of distributing the money or evidences thereof among creditors in payment or partial payment of the obligations of the debtor.

Debt Settlement is also called debt consolidation or debt negotiation by consumers because it's what they type into the search engine when they feel the need to take action about overwhelming bills.

Debt Settlement companies argue that since they do not directly control the clients funds that they do not qualify as a prorater.

Both of my friends (Lobbyist & Attorney) agree that debt settlement companies are considered proraters due to the interpretation of the law by the Department Of Corporations.

The bill AB350 if passed will not take effect until 2012.

AB350 is the proposed Debt Settlement Service Act for the purpose of licensing debt settlement service providers.
this may bore some people but, if you want to avoid being scammed you should pay attention.

CHECK SELLERS, BILL PAYERS AND PRORATERS LAW

The Check Sellers, Bill Payers and Proraters Law (the Law) is contained in Division 3 of the California Financial Code, commencing with Section 12000. The regulations are contained in Subchapter 10 of Chapter 3, Title 10 of the California Code of Regulations, commencing with Section 1770 (10 C.C.R. § 1770, et seq.).

The Law, originally named the Check Sellers and Cashers Law, was enacted in 1947. As enacted, it provided for the licensing and regulatory review of companies and individuals who sold checks, cashed checks, or paid bills on behalf of others. In 1983, the law was amended to no longer require the licensure of check cashers by the Department. Now check cashers are required by law to obtain a permit from the Department of Justice.

Currently, there are four different types of businesses licensed under the Check Sellers, Bill Payers and Proraters Law.

1. Check Sellers.

   A check seller sells checks, money orders, or drafts to be used by others for the payment of obligations and the transfer of money. Most checks and money orders are sold by agents who split the check fee with the licensee. The checks are sold through a network of agents such as small markets and check cashing businesses. A check or money order is usually purchased to pay rent, utilities, or some other obligation that must be sent through the mail. In addition, checks are purchased to send money back to a foreign country.

2. Bill Payers.

   A bill payer receives money as an agent of an obligor to pay bills. For this service, it receives a fee from the obligor.

3. General Proraters.

   A general prorater contracts with delinquent debtors and intercedes with creditors to settle debts on behalf of the debtor.

4. Special Proraters.

   A special prorater pays its customers' bills as part of its management of its customers' affairs, and is generally a business agent or a manager.

The license requirements are set forth in Section 12000, et seq. of the law. The law requires that applicants for Check Sellers licenses maintain a minimum net worth of $500,000 and a $500,000 license bond.

Bill Payers and General Proraters must maintain a minimum of $10,000 net worth and a surety bond of $25,000. For those licensees who use agents, the requirements are considerably higher.

In addition to the financial and bonding requirements, applicants must demonstrate that they have experience in this type of business, and that they do not have a criminal history or a history of noncompliance with regulatory requirements.

If you need help with your credit, click here or e-mail me at tjdangerfield@yahoo.com

Will this bill really pass?

I've been following this for along time and we will see what really happens.

A state bill to regulate the burgeoning debt-settlement industry in California is moving closer to passage.

Sponsored by Assemblyman Ted Lieu, D-Torrance (Los Angeles County), AB350 is supported by the industry's two main trade groups, who say they want to weed out unscrupulous firms giving the business a bad name.

Two prominent consumer groups oppose the bill. "We think it's too soft," says Gail Hillebrand, a senior attorney with Consumers Union.

Unlike credit counseling services, which help consumers pay off their entire debt, settlement companies try to help them settle for less than the amount owed.

While some such companies do help disciplined consumers, critics say many collect steep up-front fees from cash-strapped people who get little or nothing in return because they or the companies don't uphold their end of the bargain.

Although programs vary, consumers typically enter a multiyear agreement. They stop making payments on their unsecured debt and start contributing to a savings account they control. When there is enough money in the account, the settlement company tries to talk creditors into settling accounts for a lump sum that is less than the amount owed.

Consumers usually pay firms a fee based on their debt going into the contract, not the amount extinguished. It is often 15 or 20 percent of the debt but can be higher. It is usually paid at the beginning or in the early months of the contract.

Typically, the process takes three years although some people finish it sooner. About half don't finish at all.

The consumer's credit rating often suffers from late payments and debts settled for less than the full amount. Also, canceled debt can be taxed as income.

The industry is enjoying robust growth. The explosion in unsecured debt, followed by the recession, has left a growing number of Americans unable to repay their obligations. Meanwhile, the Bankruptcy Act of 2005 has made it harder for consumers to file to discharge their debts in court.

Few regulations

Yet the business is largely unregulated. Only about a dozen states have laws governing debt settlement, although more states have bills pending.

Lieu, who is running for state attorney general, has been trying to regulate the industry in California for more than two years. His bill would require firms to be licensed and regulated by the Department of Corporations, provide extensive disclosures and cap fees at 5 percent of the consumer's debts up front and a total of 20 percent during the first half of the contract.

If consumers complete the program, and the amount they pay in settlements plus fees exceeds the debt brought into the program, the company must refund the difference. Consumers who don't complete the program are not eligible for any refund.

Consumers Union and the Center for Responsible Lending object mainly to the bill's fee structure and consumer-suitability requirements. They would like fees to be based on the debt waived, not the total. Lieu says that approach would discourage companies from working with smaller debtors.

Industry concerns

The industry objects because "this is a 36-month program. It's very labor intensive. For us not to get paid until the program is complete, that's a long time," says Wesley Young, legislative director for the Association of Settlement Companies. Moreover, he adds, "We don't want to be in the position where we become a creditor (of the client.) It's very difficult to get paid."

Caryn Becker, policy counsel with the Center for Responsible Lending, says her group would settle for a fee based on the debt brought into the program if it was 4 percent spread over the first six months and 18 percent (including the 4 percent) spread over the first three-quarters of the program.

Qualifying for program

The bill requires companies to make sure clients are "qualified" for the program by enrolling them. "We think that is too weak of a standard," Hillebrand says. "It could be like saying if you have a pulse you are qualified." Her group wants companies to make sure a consumer is "suitable," or able to benefit from the program.

Lieu's bill passed the Assembly 56-22. It passed the Senate banking committee 10-1 on Thursday and moves this week to the Senate judiciary committee. The full Senate could vote in August or September. If passed, the bill would not take effect until January 2012, although Lieu says he would consider moving that up to help today's stressed borrowers.

If you need help with your credit contact me at tjdangerfield@yahoo.com

Who do you trust?

Being Broke does suck. I know. As a consumer you really don't know which way to turn. There are so many debt consolidation companies (Most which happen to rip off consumers by advertising things that will never happen.)
The average person doesn't really know or understanding credit scoring and as Americans we have been trained to believe that we are our credit score. It's understandable. take the time and get your credit report here

It's time to take charge of what you want to do. Are you happy where you are financially right now?

If not, do you want to do something about it?

Take the step

e-mail me at tjdangerfield@yahoo.com and I will help you get where you want to go.

Being Broke Sucks: Now that California has reached a deal..When can I cash my IOU??

Being Broke Sucks: Now that California has reached a deal..When can I cash my IOU??

Now that California has reached a deal..When can I cash my IOU??

California Governor Arnold Schwarzenegger and top lawmakers agreed on Monday to close a $26.3 billion deficit in the state's budget in a deal that includes $15.5 billion in spending cuts, they said.

The government of the most populous U.S. state, also the world's eighth-largest economy, began its fiscal year on July 1 facing the massive shortfall due to a plunge in revenues caused by the recession and rising unemployment.

Schwarzenegger,AKA The Governator.. a Republican, said during a news conference the budget would be balanced through deep spending cuts and borrowing and shifting of state funds but without raising taxes.

I just want to know when they are going to pay me what they owe. When you owe the IRS they put interest on the money owed...I WANT THE SAME!!

Click here to manage your credit report

If you have problems there, Contact me at tjdangerfield@yahoo.com and I'll help you fix it!!

This is gonna cost us all money...again

CIT Group Inc's board approved a deal with bondholders for $3 billion in rescue financing to the lender late on Sunday, a source close to the situation said, helping it stave off bankruptcy.

CIT is expected to announce the deal before markets open Monday, according to the source, who did not want to be identified because talks are private.

I'm sure this is going to cost us all money in helping yet another lender whom has taken advantage of it's consumers...
I say get your credit report from here and see what has been done...

Contact me and I'll show you the steps to get your credit report fixed!!

Get Equifax Credit Watch Gold 3-in-1 Now!

How does credit scoring work?

Did you know that your credit score can be lowered without ever running late on your credit cards?

Fico will lower your credit score the more you owe compared to your credit limit.
Example, If you have 4 credit cards of 500 dollar limits and on 3 of them the balances are over 300 dollars and you are making the minimum payment,your credit score could be lowered. I recommend clicking here
and getting your credit report and monitoring and contacting me to help improve your scores