Do You Have the Credit Report Woes?

We previously blogged about the importance of reviewing one’s credit report to help protect against credit errors and identify theft.   In addition to reviewing credit reports at regular intervals, consumers who find themselves the subject of debt collection may want to check their credit reports more frequently to ensure accuracy.   Under certain circumstances, debt collectors are permitted to report consumer debs to credit reporting agencies.   However, because a debt collector can be a separate entity from the original creditor, the same debt may be listed several times on a consumer’s credit report.   This problem can be compounded by the fact that it is not uncommon for one debt collector to sell a consumer’s debt to another debt collector; in fact, some debts may even be sold multiple times.   If a new debt collector reports the same debt each time it is sold, a single debt may be reported multiple times on a consumer’s credit report.   This can cause the report to appear misleading, giving the implication that numerous debts are owed to different companies when in reality, the same debt is being reported over and over.   Thus, while it is important for all consumers to periodically review their credit reports, those who are the subject of debt collection may want to review their reports more often to ensure reporting accuracy.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

A Debt Collector Put a Debt on my Credit Report That I Don't Owe!

Dispute it!   Consumers can and should protect their credit reports by disputing incorrect information listed by a debt collector.   This can include a debt collector listing a debt the consumer does not owe at all, or simply listing a debt that the consumer disputes in whole or in part. Consumers can make oral dispute debts to a debt collector, but it is best to make a written dispute to the collector.   When making a dispute, consumers should provide as much information as possible, including any documents which support the dispute.   It would also be a good idea for consumers to use certified mail or request delivery confirmation when sending the dispute and to keep a copy of the dispute for their records.   An attorney can help consumers determine what rights they have if the debt collector refuses to investigate the debt or refuses to report it as “disputed.”   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

What Is Credit Reputation?

Your credit reputation is what others think about your habits surrounding borrowing and repayment. Whether you know it or not, agree to it or not or want or not, your credit reputation has been scored with a number called a credit score. Your credit score is determined and maintained by the three credit reporting agencies: Trans Union, Equifax and Experian. Each agency will assign you a different score. Because of the way credit scores are determined, however, the scores should be fairly close. You can think of your credit score just like the grades you received in school:

Credit Score     Grade   
Over 720           A Excellent Credit   
700 - 720          B Good Credit   
680 - 700          C+ Above Average Credit   
660 - 680          C Average Credit   
620 - 660          D Below Average Credit   
Below 620         F Poor Credit

Why should you care? Well, people with an “A” credit reputation pay lower interest rates, pay lower insurance premiums, have more credit opportunities and get hired more often. Also, people with an “A” credit reputation can finance a house with a low interest rate and little or no down payment. People with a “F” credit reputation cannot finance a house with a traditional lender.

Several things create and improve your credit reputation:

• Historically paying bills early
• Borrowing less than 25% of the credit available to you
• Having the same credit account for a long time
• Maintaining the right type of credit
• Having the right mix of new credit accounts

Several things that hurt your credit reputation:

• Late payments (the later the payment, the more harm)
• More than one account that has late payments
• Public filings such as bankruptcy, judgments and liens
• Borrowing more than 25% of the credit available to you

These factors impact credit reputation scoring generally. Credit reputation scoring is complex and it is difficult to show exactly how important any single factor is in determining your score. The level of importance for any one factor will be unique to you. What is important is the overall mixture of factors, which varies from person to person and for any one person over time. The two most important things to do to protect your credit score is to monitor it often and, when necessary, seek the help of a credit professional.  -Brandon L. Blankenship (205)912-8248
-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Are There Time Limits on My Debts?

http://youtu.be/YhGNiofkzaA

We recently blogged about the time limits consumers have to bring actions against harassing or abusive debt collectors.   Well, time limits similarly exist regarding how long debt collectors have to bring lawsuits against consumers for failure to pay a debt.   Unfortunately, many consumers are unaware of these time limits.   Although debt collectors may not be able to sue on a time-barred debt, they can still ask a consumer to pay it.   Further, there are several factors that might even extend the time limits on a particular debt.   The video by ABC news discusses how some debt collectors use time-barred debts, among other methods, to try to get money from consumers.   An attorney can help you determine whether you debts are time-barred or still available for collection.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Isn't Everyone Who Calls to Collect a Debt a "Debt Collector"?

The Fair Debt Collection Practices Act protects consumers from abusive collection conduct of debt collectors.   But, isn’t everyone who calls to collect a debt a "debt collector"?   Not necessarily.   The Fair Debt Collection Practices Act defines a debt collector as any person whose main business is collecting debts or who regularly collects debts owed to another person.   However, creditors who collect their own debts are exempted from the Act's definition of "debt collector" and therefore exempted from the prohibitions of the Act.   However, while they may have more leeway in collecting debts, creditors do not have free reign to abuse consumers.   Legal theories such as invasion of privacy may help protect consumers by requiring creditors’ debt collection conduct to be reasonable as well as reasonably related to legitimate collection efforts.   Conduct which includes threats, name-calling or harassment may not be considered “reasonable” and may therefore expose a creditor to liability.   An attorney can help you determine whether a creditor’s debt collection efforts are actionable or not.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

Understanding Your Credit Report

Creditors and debt collectors are allowed to report a consumer’s unpaid debts to their credit report under certain circumstances. However, a credit report may include several different debts and be confusing to understand. If you feel that your credit report includes debts that are listed in error or that the same debt is listed multiple times, an attorney can help you decipher your credit report and make sense of the confusion.  An attorney can also see if you have suffered credit reputation damage and are eligible for compensation.  Call us if we can help you.    -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

Debt Collection Calls from an Attorney

Debt Collection is often conducted by companies or agencies whose principal business is collecting debts for others. However, debt collectors can also come in the form of individuals—including attorneys. The FDCPA explains that a “debt collector” can be any “person” who regularly collects or attempts to collect debts for others or uses interstate commerce or mail in any business for which the principal purpose is collection of debts. FTC commentary on the FDCPA as well as various courts have explained that the FDCPA’s definition of debt collector may extend to attorneys whose business generally includes collecting debts for others. In these instances, attorneys would be subject to the same FDCPA prohibitions as debt collection companies. If an attorney has taken any prohibited action while attempting to collect a debt from you, you may be entitled to relief under the FDCPA.    -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP
www.bhattorneysllp.com

Keep Copies of Your Records

It may seem like a simple thing to do, but when dealing with creditors, debt collectors, etc., one of the most important thing consumers can do is keep records of phone calls, letters, and any transactions with these entities.   Keeping a copy of these types of records can keep consumers aware of their financial relationship with these entities and can help remedy errors which may occur in the future.    -Meredith Phillips  (205) 912-8244

-Blankenship Harrelson, LLP