Over the past several years I have noticed a trend with collection agencies and military members. As soon as they find out you are Active duty the threats escalate. Many creditors threaten to notify your chain of command, garnish your pay, take you to court, ect. I have even heard of creditors showing up at the soldiers units, threatening legal action. This is rediculous. Firstly, it is illegal for a collection agency to threaten suit if they are not truly going to follow through with their actions, according to the FDCPA. It is also illegal for them to come to your place of employment, or to even call your place of employment. All you have to do is notify them in writing and request they only correspond via mail.
If a creditor is threatening you, fight back. It is their job to prove you owe any debt. That means PAPERWORK!!!! Most of the time accounts are sold over and over and the collection agencies don't possess a single shred of evidence connecting you to the account they are holding. Surprised!
If you receive notification of debt collections, dispute and request validation. "SHOW ME THE MONEY" . Make them show their cards, it is your right to request this information and according to the FCRA they have to show it to you. Once again out of time. I will post another helpful tip soon. As a veteran myself, I love helping soldiers any way I can.
You can also visit my site at afs3cash1.com. We are making some changes so be patient.
Thursday, February 26, 2009
WHAT TO DO WHEN A CREDIT CARD COMPANY SUES YOU.
In some rare cases, although they are becoming more common as the financial sector continues melting down, a credit card company may not sell a defaulted debt to a collection agency. Instead, it may initiate a lawsuit against a borrower directly and attempt to get a default judgment and begin garnishing wages, attaching liens to property, or collecting on the debt in any other ways that the law allows.
Previously, this was an unheard of tactic for credit card companies to use against debtors. After all, the debt was unsecured and usually only for a few thousand dollars -- less than a drop in the bucket for many banks. Hiring local attorneys to sue borrowers would usually cost more than the company was ever going to collect on the debt, so credit card companies simply wrote off the loan on their taxes and sold it for pennies on the dollars to a collection agency to pursue.
In recent years, though, state legislatures have made it easier for borrowers to be sued, have their property stolen, and even be put in prison if they are unwilling to cooperate with the civil lawsuit. Debtors who miss a court date may have a "bench warrant" or a "writ of attachment" put out for their arrest. County sheriffs deputies are then able to invade the person's home or place of business and arrest them on site. They will either be held until the next court date or have to pay a cash bond of up to several thousand dollars.
Obviously, in many states, the banks' appointed officials have overpowered the peoples' elected officials. So, it is in the best interests of borrowers to defend against such tactics, legal and fascistic as they may be. Thankfully, this site and others can help prepare borrowers for what to do when they are served with a summons for a credit card lawsuit from an original creditor and how to answer the complaint. And even more promising is the fact that few lawsuits for unsecured debts are paid in full by borrowers, as long as they show up at the hearings.
Responding to the Summons
Responding to a complaint by a credit card company can be remarkable similar to responding to a foreclosure lawsuit. Debtors can immediately request more time by filing a Motion for Extension of Time, which will put the lawsuit on hold by an additional thirty days or so. This gives the borrowers more time to research the issues and prepare their answer.
But if the lender has violated certain laws or failed to follow the correct court procedures, debtors may be able to have the lawsuit dismissed without filing an answer. Especially depending on notice requirements for such a lawsuit and the bank's failure to attach the original contract to the complaint, it may be worth filing a Motion to Dismiss the case based on these procedural failures. Just as when homeowners in foreclosure request the bank to "produce the note," people being sued by credit card agencies can do the same.
Homeowners who have exhausted the possibilities on a Motion to Dismiss, though, will then have to file their answer to the summons and complaint. The best way to do this is to research the federal laws, beginning with the Fair Credit Reporting Act (FCRA). This act dictates how the bank can report negative information to the credit bureaus about accounts, and every violation of the Act can cost the bank $1,000. Borrowers have every incentive to research this law and pick out all of the relevant violations. Since these lending laws are almost impossible for creditors to follow, there will always be some violations.
Most of the time, simply by filing a Motion to Dismiss and then filing an answer to the complaint, borrowers can force the bank to accept kind of payment plan or settlement. Especially if there are enough violations of the FCRA or other laws that it would eliminate most of the lender's debt anyway, it is in their best interests to end the lawsuit and settle. It is especially costly for creditors to sue people in court for unsecured debts, because the longer the case goes on, the more it is costing in attorney fees and banks often collect very little from borrowers on such defaulted credit card debts. They can also be discharged in Chapter 7 bankruptcy quite easily.
Debtors can also request the courts offer some sort of negotiation or arbitration between them and the original creditors. A judge can order the parties try and work out a deal to avoid further legal battles, and if the terms are agreeable to both parties, the lawsuit will be put on hold. Borrowers will have an opportunity to pay back a portion of what they owe and creditors will not be able to continue pursuing the lawsuit in court.
Very few cases involving foreclosure, collection agencies, or credit card companies ever go all the way to trial. The banks and borrowers almost always work out an agreement for less than the total amount the bank is requesting in its lawsuit, and debtors are happy to pay off a little bit to get the lawsuit out of the way. But even if the case does go to trial, homeowners can be prepared to defend their side of the story by researching what laws and procedures the bank has violated that voids its claims against the borrowers or at least offsets them severely.
Did the Bank Even Lend Any Money
One defense to a lawsuit brought by the original credit card company is worth mentioning here. It involves the so-called Jerome Daly defense, which argues that, because the bank creates the money for every credit card transaction out of thin air, there is no valid contract. For a contract to be valid, each party much put up some sort of consideration. Banks creating money out of nothing to make borrowers incur a debt does not count. Including this argument in the answer to the complaint may not work, depending on the judge, but it can always be included in a Motion to Dismiss the case.
To find out more about the foreclosure process, visit the ForeclosureFish website, which provides services to borrowers trying to save their homes. Foreclosure loan, deed in lieu, mortgage modification, and bankruptcy assistance can be found, as well as information on stopping a foreclosure before the sheriff sale. You can read more about how to save your home while there is still time and find the site on the web at the following: http://www.foreclosurefish.net/
Article Source: http://EzineArticles.com/?expert=Nick_Adama
Previously, this was an unheard of tactic for credit card companies to use against debtors. After all, the debt was unsecured and usually only for a few thousand dollars -- less than a drop in the bucket for many banks. Hiring local attorneys to sue borrowers would usually cost more than the company was ever going to collect on the debt, so credit card companies simply wrote off the loan on their taxes and sold it for pennies on the dollars to a collection agency to pursue.
In recent years, though, state legislatures have made it easier for borrowers to be sued, have their property stolen, and even be put in prison if they are unwilling to cooperate with the civil lawsuit. Debtors who miss a court date may have a "bench warrant" or a "writ of attachment" put out for their arrest. County sheriffs deputies are then able to invade the person's home or place of business and arrest them on site. They will either be held until the next court date or have to pay a cash bond of up to several thousand dollars.
Obviously, in many states, the banks' appointed officials have overpowered the peoples' elected officials. So, it is in the best interests of borrowers to defend against such tactics, legal and fascistic as they may be. Thankfully, this site and others can help prepare borrowers for what to do when they are served with a summons for a credit card lawsuit from an original creditor and how to answer the complaint. And even more promising is the fact that few lawsuits for unsecured debts are paid in full by borrowers, as long as they show up at the hearings.
Responding to the Summons
Responding to a complaint by a credit card company can be remarkable similar to responding to a foreclosure lawsuit. Debtors can immediately request more time by filing a Motion for Extension of Time, which will put the lawsuit on hold by an additional thirty days or so. This gives the borrowers more time to research the issues and prepare their answer.
But if the lender has violated certain laws or failed to follow the correct court procedures, debtors may be able to have the lawsuit dismissed without filing an answer. Especially depending on notice requirements for such a lawsuit and the bank's failure to attach the original contract to the complaint, it may be worth filing a Motion to Dismiss the case based on these procedural failures. Just as when homeowners in foreclosure request the bank to "produce the note," people being sued by credit card agencies can do the same.
Homeowners who have exhausted the possibilities on a Motion to Dismiss, though, will then have to file their answer to the summons and complaint. The best way to do this is to research the federal laws, beginning with the Fair Credit Reporting Act (FCRA). This act dictates how the bank can report negative information to the credit bureaus about accounts, and every violation of the Act can cost the bank $1,000. Borrowers have every incentive to research this law and pick out all of the relevant violations. Since these lending laws are almost impossible for creditors to follow, there will always be some violations.
Most of the time, simply by filing a Motion to Dismiss and then filing an answer to the complaint, borrowers can force the bank to accept kind of payment plan or settlement. Especially if there are enough violations of the FCRA or other laws that it would eliminate most of the lender's debt anyway, it is in their best interests to end the lawsuit and settle. It is especially costly for creditors to sue people in court for unsecured debts, because the longer the case goes on, the more it is costing in attorney fees and banks often collect very little from borrowers on such defaulted credit card debts. They can also be discharged in Chapter 7 bankruptcy quite easily.
Debtors can also request the courts offer some sort of negotiation or arbitration between them and the original creditors. A judge can order the parties try and work out a deal to avoid further legal battles, and if the terms are agreeable to both parties, the lawsuit will be put on hold. Borrowers will have an opportunity to pay back a portion of what they owe and creditors will not be able to continue pursuing the lawsuit in court.
Very few cases involving foreclosure, collection agencies, or credit card companies ever go all the way to trial. The banks and borrowers almost always work out an agreement for less than the total amount the bank is requesting in its lawsuit, and debtors are happy to pay off a little bit to get the lawsuit out of the way. But even if the case does go to trial, homeowners can be prepared to defend their side of the story by researching what laws and procedures the bank has violated that voids its claims against the borrowers or at least offsets them severely.
Did the Bank Even Lend Any Money
One defense to a lawsuit brought by the original credit card company is worth mentioning here. It involves the so-called Jerome Daly defense, which argues that, because the bank creates the money for every credit card transaction out of thin air, there is no valid contract. For a contract to be valid, each party much put up some sort of consideration. Banks creating money out of nothing to make borrowers incur a debt does not count. Including this argument in the answer to the complaint may not work, depending on the judge, but it can always be included in a Motion to Dismiss the case.
To find out more about the foreclosure process, visit the ForeclosureFish website, which provides services to borrowers trying to save their homes. Foreclosure loan, deed in lieu, mortgage modification, and bankruptcy assistance can be found, as well as information on stopping a foreclosure before the sheriff sale. You can read more about how to save your home while there is still time and find the site on the web at the following: http://www.foreclosurefish.net/
Article Source: http://EzineArticles.com/?expert=Nick_Adama
HOW TO FIX YOUR CREDIT
Getting rid of bad credit is a process, one that can be accomplished with patience. The credit bureaus are responsible for inputting information on your credit report, information they receive from the hundreds of creditors out there.
The there are two important reasons you can get rid of bad credit
1. The dispute process- According to the Fair Credit Act you are allowed to dispute any information on your credit that you feel is misleading, inaccurate or unverifiable. Anytime a creditor inputs information into a credit report it is not verified. In other words, the credit bureau just takes the creditors word and slaps the info on your file.
The dispute process is what congress has created to help consumers make sure their reports are accurate and does not include any wrong information. Once you dispute an account entry with the credit bureaus they are supposed to investigate your dispute by contacting the creditor and looking at legal records showing that the account is indeed accurate. This is known as the verification process.
2. Length of time on credit report- Under the same law all accounts on your credit report have a lifespan or what I like to call an expiration date. Negative accounts are NOT to stay on your credit report forever. If there is an account that you stopped making payments on, it should be on your credit report for only seven years and six months after which time it needs to be deleted.
The problem is that these accounts are not deleted automatically, this is where you would need to take some sort of action to get the desired result of a restored credit rating. Also keep in mind that you need to also continue to make timely payments on credit accounts that you do have because the credit rating formula will take your most recent payments into account as well.
Visit do-it-yourself-credit repair or credit repair services to learn more on raising your credit score 200+ points to get approved for car, home and credit card loans.
Article Source: http://EzineArticles.com/?expert=Tony_Banks
The there are two important reasons you can get rid of bad credit
1. The dispute process- According to the Fair Credit Act you are allowed to dispute any information on your credit that you feel is misleading, inaccurate or unverifiable. Anytime a creditor inputs information into a credit report it is not verified. In other words, the credit bureau just takes the creditors word and slaps the info on your file.
The dispute process is what congress has created to help consumers make sure their reports are accurate and does not include any wrong information. Once you dispute an account entry with the credit bureaus they are supposed to investigate your dispute by contacting the creditor and looking at legal records showing that the account is indeed accurate. This is known as the verification process.
2. Length of time on credit report- Under the same law all accounts on your credit report have a lifespan or what I like to call an expiration date. Negative accounts are NOT to stay on your credit report forever. If there is an account that you stopped making payments on, it should be on your credit report for only seven years and six months after which time it needs to be deleted.
The problem is that these accounts are not deleted automatically, this is where you would need to take some sort of action to get the desired result of a restored credit rating. Also keep in mind that you need to also continue to make timely payments on credit accounts that you do have because the credit rating formula will take your most recent payments into account as well.
Visit do-it-yourself-credit repair or credit repair services to learn more on raising your credit score 200+ points to get approved for car, home and credit card loans.
Article Source: http://EzineArticles.com/?expert=Tony_Banks
LATE PAYS HURT YOUR SCORE
Your credit report is a breakdown of your credit habits both good and bad. Unfortunately the bad habits like late payments have more influencing power then the good habits. Late payments on your credit report are one of the worst items that you can have. Even just one 30 day late mark has the potential to know your score down 100 points, and it gets worse as the lates go past 60,90 or 120 days.
How To Remove a Late Payment From My Credit Report
The absolute easiest way is to wait, unfortunately most people cannot afford to do that and need a quicker way to get their fico score up. The next best method is if it is an old collection account is to negotiate with the collection company. Never pay the full amount and always try to negotiate a reduced amount because if you do not pay the collection company does not get paid!
You can also try some self help credit repair and attempt to get the late payments off your credit score report. To do this you must first have the old account numbers and the name of the creditor. To get this information you must have a copy of your credit score report.
Next draft a credit dispute letter and send it off to each individual credit bureaus that is reporting late pays on your account. Once they receive the credit dispute letters they will require the original creditor to provide proof that the account was in fact late.
If the creditor does not do this within 30 days then the account must be removed from your report, you will get a letter in the mail letting you know the outcome of your dispute. If you have multiple late accounts spread the disputes out over time or the reporting agencies will assume you are doing self credit repair and block your requests.
To learn more about Self Credit Repair and how to boost your scores with a proven method that helped me boost my credit score 135 points in 37 days log onto http://www.diycredithelper.com
Article Source: http://EzineArticles.com/?expert=Darin_Sewell
How To Remove a Late Payment From My Credit Report
The absolute easiest way is to wait, unfortunately most people cannot afford to do that and need a quicker way to get their fico score up. The next best method is if it is an old collection account is to negotiate with the collection company. Never pay the full amount and always try to negotiate a reduced amount because if you do not pay the collection company does not get paid!
You can also try some self help credit repair and attempt to get the late payments off your credit score report. To do this you must first have the old account numbers and the name of the creditor. To get this information you must have a copy of your credit score report.
Next draft a credit dispute letter and send it off to each individual credit bureaus that is reporting late pays on your account. Once they receive the credit dispute letters they will require the original creditor to provide proof that the account was in fact late.
If the creditor does not do this within 30 days then the account must be removed from your report, you will get a letter in the mail letting you know the outcome of your dispute. If you have multiple late accounts spread the disputes out over time or the reporting agencies will assume you are doing self credit repair and block your requests.
To learn more about Self Credit Repair and how to boost your scores with a proven method that helped me boost my credit score 135 points in 37 days log onto http://www.diycredithelper.com
Article Source: http://EzineArticles.com/?expert=Darin_Sewell
CREDIT REPAIR FOR MILITARY
I have been helping soldiers for over 10 years repair their credit. It amazes me how very little they really know about the credit reporting process. Even after speaking with the ACS office, which is the Army's answer for Financial assistance and advice, I noticed they also know very little. For example, they are still navigating military members through online disputes. What a joke. The basic online dispute is never seen by a real person. It is done electronically. The dispute is catagorized and sent to the creditor through their E-Oscar system, the Bureaus use this to transfer information.
There are state laws which govern collection agencies. These are a must to know. I can't count the times I have backed a collection agency off a soldier and literally erased a debt because of these laws.
Look up your State collection laws.
Never dispute online, it is a waste of time.
Always send your letters Certified Return receipt.
There are so many other secrets, I can't begin to list them today. I will post more helpful ideas soon.
afs3cash1.com
There are state laws which govern collection agencies. These are a must to know. I can't count the times I have backed a collection agency off a soldier and literally erased a debt because of these laws.
Look up your State collection laws.
Never dispute online, it is a waste of time.
Always send your letters Certified Return receipt.
There are so many other secrets, I can't begin to list them today. I will post more helpful ideas soon.
afs3cash1.com
Subscribe to:
Posts (Atom)