Collections and Telephone Calls

Collections and Telephone Calls

How to Stop Collection Calls Consumers have multiple laws at their disposal regarding their credit reports and debt collection. One of the most important laws regarding collection agencies and the collection of debt is the Fair Debt Collection Practices Act (FDCPA). This law provides behavioral standards for acceptable third-party collections. According to this law, at all times, debt collection agencies must treat the consumer with courtesy, respect and fairness. The FDCPA prevents bill collectors from using profanity, making threats, falsely inflating the amounts owed, bullying the consumer or engaging in other abusive tactics. Moreover, this consumer protection statute requires collectors to provide full account history and proof of account ownership before being able to collect a debt or even to report information about it to credit bureaus. Unfortunately, there are collectors out there that don’t abide by the rules. So you benefit by knowing your rights. The except above is from the Lexington Law Blog to view entire post please visit their site by clicking...

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How Do Events Impact Your Credit Score?

How Do Events Impact Your Credit Score?

So how does foreclosure impact your credit score?  What about other damaging item like Bankruptcy? Until recently the credit agencies have been very secretive about what will happen to your FICO score after you start to fall behind on your payments. Just recently Fair Isaac, which is the company that developed FICO scores, has come out with some estimates (averages) on how your credit score will be impacted based upon mortgage delinquency. Here are their numbers… 30 days late: 40 – 110 points 90 days late: 70 – 135 points Foreclosure, Short sale, or Deed-in-Lieu: 85 – 160 points Bankruptcy: 130 – 240 points   Fair Isaac came up with these numbers based upon averages of different types of people, some of which had multiple (7-10) creditors and some with much less (1-4). They also factored in length of credit history, number of past missed payments and previous damaged accounts. As you can see the credit penalty to your FICO score becomes much more dramatic once you get 90 days or more behind on payments. This is due to the likelihood of full payment decreasing after this time. Also these point losses affect someone with a higher score much more dramatically than someone with a sub-par score to start with. So how do these FICO scores affect your personal finances? Well the average savings for someone with a good vs. mediocre credit score for auto insurance is about $115 a year. I’m not sure what type of car you drive but I’m sure that is at least a couple extra tanks of gas per year or a nice dinner on a birthday or anniversary. Point being everyone could use an extra $115 dollars. Now if auto insurance was the only thing affected by FICO scores… How about home owners insurance, car loans, home loans, renting an apartment, or getting a new job. Credit scores affect your personal life in so many different ways. When you apply for a loan or job, remember that every point counts!...

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