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1. CHARGED OFF DEBT
WHAT IS CHARGED OFF DEBT ? I THOUGHT I DID NOT HAVE TO PAY FOR “CHARGED OFF” DEBT!
Charged off
is an accounting term which means, for you, the debtor, an account
which is no longer active or useable. Simply put, it is an account that
you quit paying some time ago and probably forgotten about. Then, six
months or so after you stopped paying on the account, your
non-performing credit account was “charged off”, or in other words,
deleted and no longer listed as an asset on the books of the original
credit provider. Now in the past, this debt, depending on the dollar
amount, would probably have been simply counted as un-collectible by
the credit grantor.
Now, however, all such debt is either referred to a standard collection agency to make attempts at recovery or, more often than not sold to a debt buyer. In the meantime, even though the obligation remains, debtors often mistakenly believe a charged off debt is no longer owed or no longer being collected upon. Not true. Nowadays, debt collectors are trying to collect on this kind of “charged off” debt even years after the original creditor has given up on collecting the debt. Therefore, if you are contacted regarding a charged off account, do not ignore it. Call us and we can deal with the collector and/or their attorneys. We know exactly what to do to defend you from these kinds of “charged offs”.
BUT MY DEBT IS CHARGED OFF ! HOW CAN THEY SUE ME FOR CHARGED OFF DEBT ?
DO NOT BE FOOLED….. collection attorneys can still collect on debt that you thought was “charged off” by a bank or credit card company because the institution took a credit for it on its tax return. This is baseless position. Just because the bank charged off your debt does not mean that nobody is going to come after than debt. After all, you still owe the money. The banks and credit card companies will sell the debt and you will get sued for the entire amount of the bill plus interest, costs as well attorneys' fees. Note that banks and credit card companies only charge off the debt because federal regulations do not allow banks to keep non collectible debts on the books in the collectible column. But, again, when they “charge off”, you are not absolved of the debt.
To make money they sell the debt off to “debt buyers” including collection agencies and their lawyers for pennies on the dollar. Then, these collectors come after you.
So, if you have recently been recently sued by a company you do not recognize, do not ignore the lawsuit. It is probably a debt buyer who is looking to seize your bank account, salary and any other assets to can find. In you are in this situation, call us now and we will gallop to your defense before things get worse. And we can do it at an unheard of fee for these types of defense cases, giving you every opportunity to at least defend yourself in these matters.
IS IT A GOOD IDEA TO TRANSFER MY BALANCE FROM HIGH-INTEREST CARDS TO LOWER-RATE CARDS WITH LOWER RIGHTS?
Yes,
if you can control yourself, by which we mean your spending habits. By
transferring a balance onto a card with a low introductory rate,
sometimes called “teaser rates”, you can potentially save money on
interest if you simply stop charging new purchases on the low interest
card and, instead, focus on paying off the balance before that
introductory rate expires and the rate goes through the proverbial
roof. But if you are tempted to continue to charge on the new card and,
give into to that temptation, you will, in the final analysis, wind up
with more debt that you initially transferred.. And, dangerously, new
purchases may be charged at an altogether different and certainly
higher interest rate than the beginning teaser rate. Therefore, only do
the balance transfer if you can control your spending and refrain from
continuing to charge on top of the balance you are already struggling
to pay off, balance transfers won't get you out of debt and will most
likely, engulf you in further debt.
WHAT IS PROPER VALIDATION ?
Generally speaking, proper validation of a debt depends on the specific nature of the dispute. At a minimum, the debt collector is required to confirm with the creditor that the amount being claimed is correct and that the person he is attempting to collect the debt from is the person who owes it. The most basic response to a validation/verification request would be for the collector to provide the name of the original creditor and some simple statement regarding the alleged amount owed.
SHOULD I REQUEST “VALIDATION”?
Yes, because requesting validation does two things. First, it buys you some time. Under the FDCPA, all collection activity must cease until the attorney puts that verification in the mail to you. The verification is usually a simple statement signed by the creditor, and it will not take the collection attorney long to obtain it or mail it, but it does "stay" collection activities, including law suits, until answered. Secondly, it sends a signal to the collection attorney that you are not going to be a rollover debtor. He knows you will be active in the defense of the suit.
Note that a high percentage of collection suits simply proceed to default judgment without any response from the debtor. Default judgment is just what a collection attorney hopes for in every case.. Consumers who don't answer law suits make it far too easy for the collection attorneys.
However, by filing a validation request, you send a very strong message to the collection attorney that you aren't going to give up. He might actually have to go to court himself and you may force him to prove the debt. By filing the validation request, you actually stay the collection proceedings. Thus, if a collection attorney cannot move forward against you in a collection suit, the chance of your having a default judgment against you is greatly diminished.
HOW DO I FILE A VALIDATION NOTICE?
Validation of a debt is very simple and the response is also very simple. The statute requires the collector to give the debtor the name and address of the original creditor. Some courts have also required the collector to give a simple accounting of the debt, i.e. the principal, interest, and other added fees such as attorney's fees. Again, I have seen a lot of "on-line" verification/validation form letters asking for information and documentation the FDCPA doesn't require the collection attorney to give you. Such far reaching requests immediately tell the collection attorney you really have no idea what you are doing. The form letters also make threats which simply irritate the collection attorney. And perhaps simply enough, they are wrong.
For a complete review of the Fair Debt Collection Practices Act, visit fair-debt-collection.com
IS IT A GOOD IDEA TO TRANSFER MY BALANCE FROM HIGH-INTEREST CARDS TO LOWER-RATE CARDS WITH LOWER RIGHTS?
Yes,
if you can control yourself, by which we mean your spending habits. By
transferring a balance onto a card with a low introductory rate,
sometimes called “teaser rates”, you can potentially save money on
interest if you simply stop charging new purchases on the low interest
card and, instead, focus on paying off the balance before that
introductory rate expires and the rate goes through the proverbial
roof. But if you are tempted to continue to charge on the new card and,
give into to that temptation, you will, in the final analysis, wind up
with more debt that you initially transferred.. And, dangerously, new
purchases may be charged at an altogether different and certainly
higher interest rate than the beginning teaser rate. Therefore, only do
the balance transfer if you can control your spending and refrain from
continuing to charge on top of the balance you are already struggling
to pay off, balance transfers won't get you out of debt and will most
likely, engulf you in further debt.
REMEMBER: ALWAYS SEND LETTERS TO COLLECTION AGENTS VIA CERTIFIED MAIL.
3. OLD DEBT.
I AM BEING SUED FOR SOME REALLY OLD CREDIT CARD DEBT. WHAT IS MY BEST DEFENSE?
The statute of limitations may help you out here. In New York the Statute of Limits for this kind of debt is typically six years from the day of default. The Statute of Limits for a delinquent debt is the limited time frame within which a creditor like a credit card company must file a lawsuit against you. Generally, this period starts when you become delinquent on your account payments.
Now, just because the SOL has expired on a particular debt does not mean that you are totally immune from suit. Rather, if you are sued, the Statute of Limits can be used to defend the lawsuit. And it is a complete defense, which means that if you are correct in interposing this defense – and this can be tricky – especially when you a being sued for credit card debt - the lawsuit will be dismissed against you forever.
Now please note that if there has already been a lawsuit resulting in a judgment, that judgment has a separate Statute Of Limitations, which in New York is twenty years.
If you would like us to do a free evaluation of your circumstances to see if you can apply this defense contact us now and let us get creative on your behalf before your creditors cause more aggravation and pain to you and your family.
WHAT IS MY VERY BEST DEFENSE AGAINST THE COLLECTIONS AGENCIES & THEIR ATTORNEYS ?
In fact, the best, most complete and most absolute defense is the Statute of Limitations which is the time limit in which your creditor must file a lawsuit against you or lose the right to collect the money they claim you owe through the court system, although they may still attempt to get you to voluntarily pay after that deadline. And it is a drop dead deadline. Find out what your state's is and whether the creditor is beyond that date. If it is, you can demand that the court to dismiss the suit.
4. CREDIT REPORTS
CAN I GET A JUDGMENT REMOVED FROM MY CREDIT REPORT ?
Yes and no, depending on your particular circumstances. It depends on how you want to attack the problem. And it depends if the judgment was obtained against you by default or not. We have developed an almost sure-proof method of removing judgments that have been entered against you in New York State by default. This does not mean we can correct your credit report insofar as other negatives are concerned. But we can eliminate the "judgments", which means that, by definition, your Credit Score must increase as a result. Contact us and ask us the details about removing judgments from your credit report.
Credit Repair programs and Debt Settlement companies offer to improve your credit score and eliminate your debt. Many times these companies' offers are too good to be true. And they certainly are. We even have seen some of the companies falsely claiming that they can eliminate 100% of your debt no matter the circumstances. Unfortunately, this is not the reality and not something you should realistically count on, no matter how good it sounds. So, be very careful, circumspect and skeptical before you start giving your money to one of these outfits. Do not believe unrealistic promises of quick and easy credit repair and debt settlement scams.
WHY SHOULD I CHECK MY CREDIT REPORT ?
Periodically, it is a good idea to check your credit report for errors and to correct inaccuracies to get better interest rates and to protect yourself against identity theft. Dispute anything you think should not be there. The Fair Credit Reporting Act allows for the correction or deletion of inaccurate, outdated or unverifiable information, provided that a reinvestigation of the disputed information results in a finding that your dispute has validity.
IS IT A GOOD IDEA TO TRANSFER MY BALANCE FROM HIGH-INTEREST CARDS TO LOWER-RATE CARDS WITH LOWER RIGHTS?
Yes, if you can control yourself, by which we mean your spending habits. By transferring a balance onto a card with a low introductory rate, sometimes called “teaser rates”, you can potentially save money on interest if you simply stop charging new purchases on the low interest card and, instead, focus on paying off the balance before that introductory rate expires and the rate goes through the proverbial roof. But if you are tempted to continue to charge on the new card and, give into to that temptation, you will, in the final analysis, wind up with more debt that you initially transferred.. And, dangerously, new purchases may be charged at an altogether different and certainly higher interest rate than the beginning teaser rate. Therefore, only do the balance transfer if you can control your spending and refrain from continuing to charge on top of the balance you are already struggling to pay off, balance transfers won't get you out of debt and will most likely, engulf you in further debt.
10. WHAT IS SO BAD ABOUT "PAYDAY LOANS" ?
If you are into payday loans, you are in dangerous territory, as you probably already know. But did you also know that people who take use payday loans are seven times more likely to file for bankruptcy than those who don’t. In fact, according to one study, approved first-time payday loan applicants experience a 90 percent increase in bankruptcy filing rates. “Do Payday Loans Cause Bankruptcy?”, Paige Marta Skib, Vanderbilt Law School & Jeremy Tobacman, UPenn.
DON'T LET THE CREDITORS DRIVE YOU NUTS TOO!
CALL US TODAY AND WE WILL PUT A STOP TO THE HARASSMENT TODAY!
11. WHAT IS THE FAIR CREDIT REPORTING ACT?
The Fair Credit Reporting Act (FCRA) is the law passed by Congress defining your legal rights in regard to your Credit Report. Among other rights, the FCRA says:
* You must be told if information in your Credit Report has been used against you.
* You have the right to know what is in your Credit Report.
* You have the right to dispute incomplete or inaccurate information.
For more information, visit the Federal Trade Commission's webpage about the FCRA. (http://www.ftc.gov/os/statutes/fcrajump.shtm)
12. WHAT IS THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT ?
The Fair and Accurate Credit Transactions Act (FACTA) was signed into in 2003. FACTA was a revision to the Fair Credit Reporting Act (FCRA) and allows consumers to get one free Credit Report from each of the three national bureaus once a year from AnnualCreditReport.com.
Some other websites offer a "free credit report" for signing up with their services and use your free report from the government to provide that information to you. The free Credit Report you get during your trial with freecreditreport.com does not count toward your free report from the government. You can still get both.
For more information, visit the Federal Trade Commission's webpage about the FCRA. (http://www.ftc.gov/os/statutes/fcrajump.shtm)
13. WHAT IS THE CREDIT REPAIR ORGANIZATIONS ACT ?
The Credit Repair Organizations Act (CROA) was signed into law in 1996 and governs the business and advertising practices of companies claming to offer "credit repair" services. Prior to CROA, there were some companies that took advantage of consumers and profited on advice that actually hurt consumers instead of helping them.
Be very careful when dealing with any company that offers to "fix" or "clean" your credit for money. Many of the services these agencies offer are things you can do for yourself at no cost, such as filing disputes with the credit bureaus.
For more information, visit the Federal Trade Commission's webpage about CROA. (http://www.ftc.gov/os/statutes/croa/croa.shtm)
DISPUTES
When you dispute a credit report entry the CRA's have 30 days to look into your complaint and act on it pursuant to the Fair Credit Reporting Act and must show in your report that an item is being disputed or is under investigation.
Here is a Sample Dispute Letter For Your Use:
Date
Your name
Your address
Your city, state, zip code
Name of CRA [Equifax, Experian, Trans Union]
Address
City, state, zip code
Dear Sir or Madam:
After reviewing my credit report, I am writing to dispute the following inaccurate information. I am listing each item along with the way it should be corrected:
[Account name] [Account number] [How it should report / Why it's inaccurate*]
[Account name] [Account number] [How it should report / Why it's inaccurate*]
[Account name] [Account number] [How it should report / Why it's inaccurate*]
Supporting documents have been enclosed. Pursuant to the FCRA, please forward them to the credit furnishers. If you are not going to forward them, please inform me so I may do so myself.
Sincerely,
(sign here)
Your name
Your Social Security Number
Your Date of Birth
Enclosures: (list what you are enclosing - examples: police report, fraud affidavit, proof of payment, etc)
*Note: The more detailed and specific information you can give to describe the reason it's inaccurate, the better. You should also list any/all inaccurate personal information and inquiries.
You may send a dispute letter to each CRA from whom you have ordered, received, and reviewed, a copy of your report if you think there are errors or wrong information. The addresses for dispute letters to the big 3 CRA's are:
TransUnion LLC
Consumer Discosure Center
P.O. Box 2000
Chester, PA 19022-2000
(800) 916-8800
Equifax Information Services, LLC
Complaint Department
P.O. Box 740256
Atlanta, GA 30374
(888) 873-5420
Experian
NCAC
701 Experian Parkway
Allen, TX 75013
(800) 583-4080
FAIR DEBT COLLECTIONS PRACTICES ACTI
What types of debts are covered by the Fair debt Collection Pracices Act ?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.
What types of debts are covered by the Fair debt Collection Pracices Act ?
The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn't cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they're told (orally or in writing) that you're not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter - even if you don't think you owe the debt, can't repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don't want the collector to contact you again, tell the collector - in writing - to stop contacting you. Here's how to do that:
Make a copy of your letter. Send the original by certified mail, and pay for a "return receipt" so you'll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don't have an attorney, a collector may contact other people - but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written "validation notice" telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don't think you owe the money.
Can a debt collector keep contacting me if I don't think I owe any money?
If you send the debt collector a letter stating that you don't owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
* use threats of violence or harm;
* publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
* use obscene or profane language; or
* repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
* falsely claim that they are attorneys or government representatives;
* falsely claim that you have committed a crime;
* falsely represent that they operate or work for a credit reporting company;
* misrepresent the amount you owe;
* indicate that papers they send you are legal forms if they aren't; or
* indicate that papers they send to you aren't legal forms if they are.
Debt collectors also are prohibited from saying that:
* you will be arrested if you don't pay your debt;
* they'll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
* legal action will be taken against you, if doing so would be illegal or if they don't intend to take the action.
Debt collectors may not:
* give false credit information about you to anyone, including a credit reporting company;
* send you anything that looks like an official document from a court or government agency if it isn't; or
* use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
* try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt - or your state law - allows the charge;
* deposit a post-dated check early;
* take or threaten to take your property unless it can be done legally; or
* contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don't think you owe.
Can a debt collector garnish my bank account or my wages?
If you don't pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.
Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don't ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Can federal benefits be garnished?
Many federal benefits are exempt from garnishment, including:
* Social Security Benefits
* Supplemental Security Income (SSI) Benefits
* Veterans' Benefits
* Civil Service and Federal Retirement and Disability Benefits
* Service Members' Pay
* Military Annuities and Survivors' Benefits
* Student Assistance
* Railroad Retirement Benefits
* Merchant Seamen Wages
* Longshoremen's and Harbor Workers' Death and Disability Benefits
* Foreign Service Retirement and Disability Benefits
* Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
* Federal Emergency Management Agency Federal Disaster Assistance
But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can't prove that you suffered actual damages. You also can be reimbursed for your
