February 8th, 2010
Credit bureaus and banks try to convince you that having bad credit is black and white, a myth that is complete fantasy.
The reality is that your credit report and what’s on it, is often a mountain of “gray area.” There are so many times when a negative entry is not really your fault. This is especially true when it comes to credit and married couples. Stuff like this happens all the time:
I am pursuing my credit dispute thru experian. The majority of the accounts were assumed/assigned to my ex-husband legally thru a divorce. Because he neglected that legal responsibility, it is negatively affecting my credit. I am trying to alert the credit bureaus of this.
E.
E –
Good luck with dealing with Experian. If they fail to make the proper updates you may want to consider a simple three-step process to deleting bad credit:
Step One: File a dispute letter
Step Two: Wait for the results
Step Three: If they fail to remove the errors, consider speaking with a professional credit repair expert. (This company has helped thousands of other people improve their credit - 1-877-208-1966)
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December 21st, 2009
One subscriber asked me how she should handle an old credit card account which she needs to settle before buying a new home.
The account is being handled by the Arrow Financial collection agency who claims she owes around $1,250 – or at least she thinks. The original creditor charged off the account long ago and it was bought and sold by several different collection agencies. The debt is 4-5 years old.
My first response was to look into the statute of limitations. If the statute of limitations has expired, and the creditor did not seek a legal judgement, she likely is no longer obligated to pay the debt.
Statute of Limitations laws vary by state and also by the type of debt. For instance, the statute of limitations for credit card debt in the state of Texas is 4 years.
So long as she has not offered to pay the arrow financial collection agency within the statute of limitations, she may not be obligation to pay the debt.
Tags: statute of limitations
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December 15th, 2009
Ever wonder just how big the NCO Group is? According to the Fort Wayne Indiana Journal, NCO Financial owns between 13-15 Billion (that’s BILLION) dollars in repacked charge offs and consumer debt!
Here is the quote from the CEO who admits that the debt collection is surely an “opportunistic” market:
NCO Group, a Horsham, Pa.-based firm that is the world’s largest debt-collection company, owns $13 billion to $15 billion in repackaged debt, though CEO Michael Barrist says it hasn’t aggressively pursued the market. This year, NCO will spend $60 million to buy at least $2 billion in new debt.
If NCO collectors are able to persuade these new debtors to pay 10 cents on every dollar they owe, NCO could bring in $200 million in additional revenue.
“It is a business that we are in opportunistically,” Barrist said.
http://www.journalgazette.net/article/20091213/BIZ/312139962/1031/BIZ
Tags: buying debt
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November 23rd, 2009
How to FIGHT BACK! Your Consumer Rights Under the FDCPA
By: Jesse Smith
There is help to deal with debt collection agencies. In fact, the Federal Government created a whole “cocktail” of consumer rights. Most of them are lumped together in the Fair Debt Collection Practices Act (FDCPA).
This is like the collection agencies ten commandments. It keeps aggressive bill collectors in line and gives you a way to fight back and protect yourself.
First, it states guidelines for collectors to follow as to how they contact you. According to the Fair Debt Collection Practices Act, a collection agent is allowed to contact you by mail, telephone, telegram, or fax.
They can also contact you in person, but that basically doesn’t happen except in the rarest circumstances. Collectors aren’t allowed to contact you at certain times, including in the morning or late at night. Calls generally cannot be placed to your work although you should be proactive and tell the collectors NOT to call you at work.
The only other reasons you would hear from them again would be if the collection agency decides to take legal action which is when they file a lawsuit in court.
Read More about collections and charge offs
Tags: dealing with collection agencies, fdcpa
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