Terrific Article on the Great Recession’s Impact on Consumer Credit

The fine folks at the National Consumer Law Center recently posted a great article concerning the impact of the mortgage crises of 08 and beyond on consumer credit reports. It’s well worth the read. I’ve included some excepts below that really leaped out at me: Credit reporting has become the determining factor for many essentials […]

U.S. Accused of Ruthless Debt Collection Practices

The Educational Credit Management Corporation is the main private entity hired by the Department of Education to fight student debtors who file for bankruptcy on federal loans. The ECM has been accused of overly aggressive tactics and other abuses. As reported by the New York Times: A panel of bankruptcy appeal judges in 2012 denounced what […]

Credit Score Dinged by Online Criticism

I’ve researched this, and still have trouble believing it. The website Kleargear.com fined a customer $3,500.00 for criticizing the company on the site RipoffoffReport.com. The fine was charged to the customer’s credit card. When she didn’t pay the charge, this negative info got reported to consumer reporting agencies. As a result, the customer’s credit score […]

Credit Reporting Agencies Now Identify "Revolvers"

Consumer Reporting Agencies recently changed the way it reports credit card payments in order to identify “revolvers,” card holders that routinely carry an outstanding balance on their accounts. As explained by Money Talks News:   “In the past, your credit file displayed your monthly balance, your credit limit and whether you failed to make at […]

The Downside of Improving your Credit Score

Raising your credit score has, well, scores of benefits, such as better access to credit, the ability to get more favorable rates, and an increased chance at employment and housing. For those with delinquent debt, there’s a downside. Your improved credit score makes you a target for collection activities. Consumer reporting agencies market services to […]

Reporting Negative Info is a Coercive Tool to Collect a Debt

Debt Collectors and Creditors Report Negative Information on Credit Reports in Order to Coerce Payment of Debts You all know this. But it’s comforting that courts and other authorities recognize it as well: “[R]eporting a debt to a credit reporting agency is ‘a powerful tool designed, in part, to wrench compliance with payment terms . […]

Credit Scores and the Affordable Care Act

Rumors seem to be swirling that your credit score will affect how much you will pay for health insurance under the Affordable Care Act, also known as Obama Care. These rumors seem to have started on Florida TV station with an interview health insurance navigator. According to Rawstory.com The broadcast prompted conservative sites like The Weekly […]

Another Article on Credit Reports and Jobs

Here’s another article from ABC News about the importance of credit reports and job applications. The article’s focus is on knowledge and preparation. One 2010 study from the Society of Human Resource Management estimates that 60% of companies checked some (or all) job applicants’ credit reports. This is a practice that many people understandably find objectionable – […]

Credit Scores and Mortgage Payments after Divorce

How debts are divided in divorce may not affect your obligations on secured debt as this article from www.bankrate.com makes clear. The lender wasn’t party to your divorce decree. Since your name remained on the note, you also remained responsible for the payment. Let’s face it, ex-husbands make mistakes. That’s what led many of them […]

Two Articles of Note Concerning Portfolio Recovery Associates, LLC

For those of you with issues with Portfolio Recovery Associates, LLC, here are two recent articles about PRA you might find interesting. Turnips can bleed: The Portfolio Recovery story http://hamptonroads.com/2013/09/turnips-can-bleed-portfolio-recovery-story A lawsuit filed in U.S. District Court in New York last year names PRA among more than a dozen debt collectors and says they pursued […]

You are not Alone

Bankruptcy is often just a misstep on the path to greater success. Some notable bankrupts are listed below: • Rembrandt Harmenszoon Van Rijn, 1606-1669, the famous Dutch painter, accumulated more debts than he could repay and filed for bankruptcy at the age of 50 in 1656. • Phineas Taylor Barnum, 1810-1891, the greatest American showman, […]

Surprising things that Lower your Credit Score

Here’s an interesting article about surprising things that can hurt your credit score. The article explains how the following can hurt your credit: Closing credit cards or account. Debt settlement. Payment plans. Inquiring about old debts. Having a credit limit lowering. Paying off an old collection account. Balance transfers. Neglecting old debts. Cancelling older credit […]

Fake Debt Collectors on the Rise

The Better Business Bureau issued a recent press release alerting the public to an increase in fake-debt-collector activity. According to the BBB records, fake debt collection scams are on the rise. From September 2011-2012, there were 782 complaints. From September 2012-2013, there were 926, an 18% increase from the previous year. While I have no […]

Say no to Credit Pulls

The below is general information only. The information is not legal advice, and should not be treated as such and is subject to the legal disclaimer. In some situations, you can contract away or limit someone’s right to pull your credit report.For example, in Scott v. Real Estate Fin. Grp., 183 F.3d 97, 100 (2d Cir. […]

The FTC Shuts Down Phony Payday Loan Debt Collection Scam

On September 10, 2013, the FTC shut down a Florida scam that bilked millions out of consumers in a phony payday loan collection scam. According to the FTC . . . .defendants Fisher, Andre Keith Sanders, Pro Credit Group, LLC, and Sanders Legal Group, P.A. set up U.S.-based financial accounts for a call center operation […]