Posts Tagged ‘debt collection’
Ok so I don’t often rant. Especially in a blog post. But when someone sent me this article (now almost 9 months old) I was disgusted. I felt like I needed to share this with you right away!
An article by Heather Long at CNN Money dropped in January of 2016. The headline “ATM and overdraft fees top $6 billion at the big 3 banks” I will post the link to the article at the bottom of the post! So keep reading…
Now if you’re like me you are probably disgusted at this as well. ATM Fees are often refunded by smaller banks that you might be customers of so I don’t really want to focus on that right now. Even though charging you to access your own money is silly.
What I want to talk about is overdraft fees. The top three banks in the U.S. pulled in over $6 Billion. That’s $6,000,000,000+. But how does this happen? Well the faceless big banks, credit card companies, credit bureaus all spend millions (or more) on getting you the consumer to spend money. After all that is how they make money. Now if you are savvy and many of you are… This doesn’t really affect you all that much. But things can happen and some of us have been there.
If you have ever been in any credit card or other debt you know what I mean. Life becomes hard and it can even be embarrassing to have a ruined credit score, get calls from debt collectors, and to have the stress of debt on your shoulders. But to know that there are companies out there that are spending millions to keep you there and profiting BILLIONS off your pain and your family’s pain. That’s just infuriating. And it should be.
But just getting angry at the big banks is not going to help and its certainly not going to end the suffering. What will help is actually getting motivated, building great credit, and eliminating your debt. And thankfully there is a way to do that without having to sell an arm and a leg!
The Credit Repair Intelligence System and The Debt Free Bible work together to help you build great credit and to get rid of and stay out of debt! Not only that you actually spend less money when you have a great credit score.
Let’s do a quick math problem…
Let’s say you purchase a $200,000 home on a 30 year fixed mortgage at 6% interest instead of 4% (because of your credit score); that 2% is going to end up costing you a total of $88,000 over the term of the loan. Now think about how many “extra” years you’ll have to work to pay off $88,000 just because of an extra 2%. Now this is just one example. But think about everything that is based of your credit score. Car insurance premiums, some jobs you might be applying for, and so much more. You’re throwing money away with a low credit score.
So I’m not saying that you need the Credit Repair Intelligence System or even the Debt Free Bible. I get it they cost money and you might not be comfortable with that right at this moment. But at least get my free e-book! With it I will also periodically send some other reports about your credit and what it means to have a great credit score as well as some ways that you can start to develop better credit.
If you’re as outraged as I am at what banks and credit companies do to keep us in debt to them then you might want to check out our Starter’s Guide. I pay the shipping and handling for you but it’s a great first step to understanding how credit works and how it plays such a big role in your every-day life!
Feel free to shoot us an email email@example.com or give us a call at 1.800.450.1248 to talk with someone about building great credit! We would love to hear how we can help you build a better life, save money, and stick it to the faceless banks, credit bureaus, debt collectors, and credit companies!
Want to read the CNN Money Article?
Debt is not always your fault… But letting it take control of your life is.
That is why we want to help you get your independence from debt this summer! It is often it is hard to pinpoint one area of debt or credit repair to start. That is why when the Credit Repair Intelligence System was created it covered multiple topics. Its just the nature of the beast. Similarly, to building or repairing credit you can’t do just one thing. You often have to try multiple strategies at the same time.
The same goes for fixing debt! There is not one strategy that will fix everything. And experts would probably agree that you often have to use several and combine some strategies to be most effective.
That is why The Debt Free Bible combines 19 different strategies and secrets that are ready for you to discover right now. The Debt Free Bible is over 280 pages of knowledge that is ready to be absorbed.
But be aware…
This is not some fly by the night system. It actually took a little over 2 years and over $25,000 to create it. Our friends at Zodiac Publishing really created something special for the country here.
Just some of the methods can start helping immediately:
• Use the ”Method Matrix” to compare 19 get out of debt methods and pick the best one (page 222)
• Discover how to get one bank pay off another bank with the ”IR Method” (page 163)
• How to use the ”Overflow Method” pay off any debt faster (page 159)
• How to pay off your bills FASTER with no extra money using the ”RR Strategy” (page 167)
• Why the ”LBF Technique” gives you a psychological advantage to become debt free (page 169)
• Why the ”HIF Method” should be used FIRST on debts over 24% interest (page 171)
• How the ”Division Method” and a calculator can get you debt free 8 YEARS SOONER (page 173)
• Pay off your mortgage in only 6 YEARS with the ”AP Strategy”
But using just The Debt Free Bible or The Credit Repair Intelligence System is sometimes not enough. Luckily we are able to provide both for the ultimate debt fighting and credit building system.
Not only that but we are there every step of the way! Our Members-Only Forum, staffed by our Credit Expert Dan Sater (Check Out his Bio), is there for you to access and ask him questions! Having some guidance through the credit building or repair process is what separates us from the other guys. And now with The Debt Free Bible you can build the debt free life that you want and deserve for you and your family.
We are offering total independence from bad credit and debt at deeply discounted prices. Our flagship Credit Repair Intelligence System and Debt Free Bibles are available for you RIGHT NOW! Check Them Out Here! Remember Everything Comes With A 30-Day 100% Money Back Guarantee!
The FCBA is really a part of the more extensive Truth in Lending Act and it regulates how creditors are supposed to behave and allows you the right to request large amounts of information regarding your billing and payment history.
One provision of the FCBA is often not utilized because it can be confusing to understand from the general wording. This provision is actually the foundation of a great credit repair tactic.
The provision essentially states that an individual has 60 days to dispute an unauthorized charge. This seems pretty straight forward. However, in the summary of the tactic, we did not request a disputed charge. The tactic that we want to use here involves another provision of the law- the “Information Request”, and this is a broader term that is not restricted by a limited time period.
The FTC summarizes the statute’s prohibitions as: “unauthorized charges; charges that list the wrong date or amount; charges for goods and services you didn’t accept or weren’t delivered as agreed; math errors; failure to post payments and other credits, such as returns; failure to send bills to your current address — provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.”
As you read the list of requirements the FCBA, just imagine the credit repair possibilities. Consider something like this…
“In compliance with the Fair Credit Billing Act you are obligated to fulfill with my request for documentation to substantiate the reporting of my account to the major credit reporting agencies. Please provide documentation on how you charged my account, how you calculated the interest rate, as well the full accounting history of where you mailed each of my bills. If you are unable to comply, then please remove your reference to this account from every reporting agency you have reported to. Your expeditious compliance is expected.”
The above example from DisputeSuite.com is considered an “information request” and is something no creditor wants to mess with. Creditors are in the business of lending money and not dealing with credit reporting information. So instead of wasting their time with finding all the requested information, they will often simply remove the marking.
While FCBA was created to assist consumers with current account disputes, it is actually very effective with older derogatory marks. No company wants to be accused of breaking the law even if it was a few years in the past. This is especially true of creditors. Creditors are highly motivated to avoid even the hint of a lawsuit or some public embarrassment.
So this is something to keep in mind when disputing with creditors. You will want to ensure all the below stipulations are met, otherwise request they stop reporting the account to the credit bureaus.
• The account was created at your request.
• Every item billed to an account was billed correctly.
• Every statement was created in a timely manner.
• Every statement was sent to the correct address.
• The creditor never ignored change of address requests.
• The creditor never ignored disputed charges.
• Ignored change of address requests, or disputed charges which weren’t facilitated correctly didn’t contribute to negative credit reporting.
• Interest and late fees were computed in accordance with federal law.
• The creditor didn’t break their contract with their customers in any way.
Remember one of the FCBA’s main credit repair uses is to allow you to request broad amounts of information from the creditor on your account history. It is not asking for verification of the account or making a claim—it is asking for a boat load of information.
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Your credit score is usually based on five overall factors: 1) credit utilization, 2) payment history, 3) the age of your accounts, 4) the types or mix of credit and 5) credit inquires.
Credit Utilization Rate
Credit usage is, according to many sources, approximately 30% of your credit score1.
Your credit utilization rate, also known as your balance-to-limit ratio compares your total balances to your total credit limits. Generally, the higher your credit utilization (the more you owe vs. the amount of credit available), the lower your credit score will be.
So two key ways to raise your credit score are to pay off your debt as quickly as possible, or shift your balances to a low interest rate card (provided you don’t already have too any cards).
Transferring a balance from one credit card to a new card may add an inquiry to your file, which could cause a temporary but usually small decrease.
However, you if you aren’t taking on new debt and you are increasing your available credit, this should decrease your total balance-to-limit ratio, which may increase your credit score.
Age of Your Credit Accounts
Your credit history accounts for 15% of your credit score1.
Generally, the longer your credit history the higher your score. That’s why it’s important to establish credit early and to make it a habit of paying ON TIME>.
Your credit history is calculated by taking the average the length of your credit accounts and the age of your oldest account.
Balance transfers between existing credit accounts typically won’t impact your score in terms of your credit history. However, when you apply for a new credit card your age of credit will decrease.
Also, if you close a credit account after transferring its balance that can impact your score because it will reduce the overall age of your credit accounts.
Credit Inquires and Why They Matter
New credit inquires make up 10% of your credit score1.
Each time you apply for a new credit card, a “hard inquiry” is placed on your credit report. Hard inquiries from credit card issuers remain on your credit report for 2 years1.
According to FICO, inquires generally only drop a credit score five points or less depending on the other information in your credit report. Too many applications for credit cards can harm your credit score and reduce your chances of approval because it often indicates you pose a higher lending risk.
It’s important to remember that any change in your credit use can affect your score, but over time this could be a positive change. Credit scores frequently move up and down frequently to reflect the information changes within your credit file. Checking your credit score is a good way to keep track of changes to your credit and monitor the impact of positive or negative events.
When considering a balance transfer it’s important to look at the big picture and read the fine print carefully. Understand all the costs involved and think about the cost of the balance transfer versus the long-term cost of carrying high interest debt.
Legal Disclaimer: CR Publishing provides quality and actionable do it yourself products and information to consumers who want to improve credit and/or to get rid of debt.The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.
Its almost inevitable that you will encounter at least some form of correspondence from a creditor or collection agency. Luckily there is an important piece of legislation that protects you from vicious collectors. The Fair Debt Collection Practices Act or the FDCPA was first approved in the late 70’s and there are some very specific clauses that protect you the consumer from third party debt collectors.
Read on to find out about some tactics debt collectors might use but are actually illegal…
Many debt collectors will actually resort to threatening a lawsuit against you.
Really this is a “scare tactic” if nothing else. If you’ve ever been threatened with a lawsuit it can be frightening. But did you know that it is actually unlawful under the FDCPA to threaten suit if no such action is actually intended. Under the FDCPA, the attorney cannot sue you in a state that is not your home state. Therefore, the threat is an empty one. And lucky for us these empty threats are actually punishable under the FDCPA!
Even if they are in the same state and do intend to sue you it is unlawful for such a suit letter to be sent unless the lawyer reviews the letter first. Its almost impossible for a lawyer to review the thousands of letters the debt collectors send out. So when the correspondence is not reviewed by counsel, the correspondence violates the FDCPA.
If you have ever received a collection letter threatening legal action you should go back and look at the letters. Were they signed by hand? If not, perhaps they were not reviewed by a lawyer. You may have a case under the FDCPA.
The collector’s threat to “make this go legal” or to “turn the matter over to the legal department” may also violate the FDCPA. If the collector has no designated legal department.
Do you think that the collector may be a collection operation only? If so, perhaps they have no legal department, i.e., the legal aspect is handled outside of the company. In this scenario they would be committing another violation of the FDCPA. This is easy to look into and can help build a case using the regulations found in the FDCPA.
It is also a violation to send a letter stating that the collector will “recommend litigation” or “advise the creditor to sue.” Such correspondences have been found to violate the FDCPA because it, in essence purports to give legal advice to the creditor.
The collector is not permitted to give legal advice, unless, the collector is an attorney.
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