Medical Debt Collection Notice Rights

If you are faced with mounting medical bills, you may be concerned about dealing with debt collectors. Federal law gives you certain rights in how your debt is reported to credit bureaus, the manner in which a collection agency can contact you, and your right to dispute a debt. FDCPA The Fair Debt Collection Practices Act is a federal law that establishes the rights of individuals to information about their credit report and to dispute debts....

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How Long Do Debts Stay on Credit in Texas?

Nearly all debts, particularly those in default, will appear on the debtor's credit report. When a debt is paid off on time, it will generally do little damage to a person's credit score. However, an overdue debt, particularly one that the creditor has sent into collections, will pull down a person's score for a long time. In Texas, debts can remain on a credit report for up to seven years. Negative Information on Credit Reports According to federal law, most negative information can only appear on a credit report for a maximum of seven...

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What Are the Benefits of New Credit File?

New credit files are often referred to as CPNs, or Credit Profile Numbers. There is a huge amount of misunderstanding with regard to CPNs. Some unethical lenders and outright scammers have used CPNs as a method to defraud vulnerable consumers. In most cases, regular consumers cannot get a new credit file. However, highly visible consumers--such as celebrities and government officials--can get a second credit file. There are many advantages associated...

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How to Write a Cease and Desist Letter to a Collection Agency

Debt collectors may not harass you by phone or in person. By law, debt collectors may not call you repeatedly at your place of work, early in the morning or late at night, and they may not threaten you or make false statements regarding your debt. You may contact the debt collection company in writing and ask them to formally stop calling you over your debt. Even if you write this cease and desist letter, you are still obligated to pay your debts....

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Duties of a Collection Agency

A collection agency is responsible for collecting debts owed to various creditors. In their attempts to recoup money, collection agents may write to debtors or call them at their homes or workplaces. FDCPA Collection agencies must always abide by the rules and guidelines of the Fair Debt Collection Practices Act, (FDCPA), which is a law established by Congress. Among other things, the FDCPA states that debt collectors cannot harass or abuse debtors during their collection activities. They cannot misrepresent themselves by pretending to...

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Explain Surety

In the financial terminology of debt and lending, a surety is a third party guarantee to take on the repayment obligations of a debtor in the event that the debtor is unable to repay his debt obligations. A simple example of a surety is a parent co-signing on a lease agreement for a child renting a house or an apartment. Most landlords would be unwilling to rent to an 18-year-old college student if the student's parents were not contractually obligated to back up the rent obligations. There are, of course, more complicated surety relationships...

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What Does Making Extra Principal Payments on a Loan Do?

Interest expenses on debt can erase thousands of dollars away from your bottom line every year. As such, effective debt management is central to the success of any financial plan. With free cash flow, you can spend money to make extra principal payments, which will result in cost savings on your current and future loans. As part of your overall money management strategy, you must learn to properly evaluate interest rates on debt. Identification Loan principal describes the amount of money that you have yet to pay off on a particular debt....

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Questions About Credit Card Collection Accounts

If your delinquent credit card debt gets turned over to a collection agency, you have a collection account. Collection accounts can appear on your credit report and may influence your credit score. Having a collection account may also result in frequent phone calls from debt collectors. Many consumers have questions about how having a collection account affects them and what debt collectors can and cannot legally do to collect a debt. Collection...

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How to Receive Credit Card Offers

Compare credit card offers to see how your current cards stack up. There are many new programs to select from. Travel incentives, student offers and options for individuals with poor credit are available. The best way to receive credit card offers is to seek them out on the Internet. Instructions Opt-In for Credit Card Offers 1 Try opting-in for credit card offers. Go to the credit opt-out website listed in the Resources section. This...

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When Does the Minnesota Statute of Limitations Apply for a Debt?

A Minnesotan's last payment on a debt affects a state law that determines if residents can face a collection lawsuit filed by a creditor, lender or debt collector. In some cases, old credit card accounts and other debts that consumers have long forgotten about can legally be targeted for collection lawsuits. Minnesota Statute Creditors and lenders have a limited amount of time to file lawsuits to sue Minnesota residents to collect debts. The state statute of limitations outlines that time limit. The statute gives creditors and lenders six...

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Alabama Statute of Limitations on a Judgment

Judgments allow creditors to collect the money you owe. With a judgment a creditor can garnish your wages, tax returns and bank accounts. All 50 states have a statute of limitations that limit the time a judgment can be used to collect money owed. Definition When you obtain credit, you are obligated to repay the debt. If you fail to repay the debt, the creditor can pursue legal action to recover the money you owe. The creditor must have court...

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Problems That Personal Debt Could Cause

People usually consider extensive personal debt to be a financial problem. In fact, while the primary effect of personal debt is financial, its side effects are equally distressing. Often, the problems of debt can go well past having to skimp and save on various purchases, but can take a personal toll on the debtor and his family. Stress One of the main emotional effects of personal debt is stress. Debt weighs on the debtor like a burden, something that constantly follows him and presses down on him. The work that must go into making sure...

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Do Hardship Letters Work With Creditors?

A hardship letter to a creditor explains why you have fallen behind, or are about to fall behind, on your payments. The point of a hardship letter is to show the creditor that you want to, but are not able to, meet your financial obligation. It may also explain what the creditor can do to help you repay the debt to avoid charging off the account. There are no figures available to show how often hardship letters work, because no one agency or organization...

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What Does it Mean to Have a Credit Card Company Discharge a Debt?

Credit card companies are very good at pointing out your legal responsibility to pay your debt. This is not necessarily a bad thing, because it prevents people from abusing the credit card companies. However, people who are in serious financial trouble sometimes can get their credit card debt discharged, meaning they no longer have to pay. Discharge When a credit card company truly discharges your debt, it acknowledges that it is no longer...

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Is Debt Settlement a Good Way to Get Out of Debt?

If your debts become overwhelming, debt settlement programs may seem an attractive alternative to habitually making late payments. However, the negative impact of debt settlement on your credit record can be significant. The potential for lawsuits also exists as does the possibility that a debt settlement program will fail to renegotiate your debt with creditors. Although debt settlement may be an alternative to bankruptcy, it may not be your best option. Identification Debt settlement programs offer to negotiate with your creditors to...

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Who Can I Report Credit Card Harassment To?

Whether a collector is calling for a legitimate credit card debt or for one that a consumer does not owe, the collector must follow the rules set by the Fair Debt Collection Practices Act. Unfortunately, many collectors do not. To seek relief from harassing calls, understand the rules and where to report violations. Basic Rules Become familiar with some general guidelines to spot violations of the Fair Debt Collection Practices Act, which prohibits collectors from using abusive, unfair or deceptive practices in pursuit of debt repayment....

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Options for Credit Card Debt Payments

Help is available if your credit card debt has spiraled out of control. The website Bank Rate reports that, in 2009, nearly all the major credit card companies were offering programs to help people control debt. Other options are available as well, including programs that will allow you to pay less than what you owe on your cards. Hardship Plans So-called hardship programs allow credit card companies to reduce your monthly payment and slash...

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How to Make a Settlement With Creditors When Your Wages Are Being Garnished

Overwhelming consumer debt affects many Americans. The consumer culture that thrives in the U.S. also causes problems for those who struggle with fiscal discipline. There are various stages of debt collection. It starts with 30-, 60- and 90-day delinquencies with an original creditor. After an account is more than 120 days overdue, accounts are often transferred to collection agencies. If these companies cannot collect debts, they bring the debt...

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How to Get Relief From a Payday Loan

A payday loan is an advance that a private company provides to consumers on a short-term basis. These types of loans can be very dangerous as the charges and fees associated with them can compound over four times the amount in a matter of months. These types of loans are considered emergency cash loans to consumers, who should pay them back within a few weeks. However, for many consumers caught in the payday loan cycle, repayment in full can be a very difficult proposition. Instructions 1 Contact the payday loan lender and discuss repayment...

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How to Fix Damaged Credit

A consistent pattern of on-time payments on all your accounts may be the best remedy for fixing your damaged credit. Not missing a payment for 12 to 24 months will likely boost your credit scores, albeit gradually. Eventually you will find it easier to qualify for mortgages, auto loans and other credit. There are other moves you can make as well---but don't expect a quick fix. The Federal Trade Commission says honest credit repair takes time, and...

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How to Use IRA to Pay Off Credit Card Debt

An IRA is an individual retirement account that you can open to help you manage assets such as mutual funds, stocks, bonds and 401k rollovers. The money contained in your IRA is intended to be used during retirement. For individuals with high credit card debts, however, funds contained in an IRA can have another useful purpose: paying down balances. Because an IRA will usually allow you to offer a lump sum payment to your creditors, you may be able to actually save money by cashing in the IRA, paying your debts and reinvesting any remaining...

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California Statute of Limitations for Credit Card Collection

California's statute of limitations on debt doesn't prevent legitimate collection efforts to recoup unpaid credit card debts. The statute only limits the legal action that collection companies may take against residents to collect delinquent debts. Still, Californians should understand the law or consult with an attorney to protect their rights. California Statute The statute of limitations on debt is the amount of time that a creditor or debt collector has to file a lawsuit against consumers to collect unpaid debts. The statute varies...

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How to Increase Your Credit Score by 30 Points

Buying a house, a car or another big-ticket item requires good credit. The problem is, improving your credit score can take up to a year if you employ traditional methods. If you want to improve your standing in the short term, here are a few quick fixes that will help increase your credit score by as much as 30 points. Instructions Assess Your Current Credit Report 1 Look for duplicate entries on your credit report. Removing a duplicate account can increase your score by as much as 14 points. 2 Request the removal of negative credit...

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What Can I Do to Fix My Really Bad Credit?

All types of debt and credit missteps can get you in trouble. Some people fall victim to charging up credit cards, while others conveniently forget to put the check in the mail and go past due on bills. Regardless of the reason, a not-so-good or downright bad credit file often results from poor financial management. No matter how bad the situation seems, you can take steps toward improvement. Get Your Credit Report You need to know where you stand to properly begin the task of fixing your dismal credit report. Secure a free copy of your...

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Can My Credit Affect Someone Else in My Household?

You understandably have a deep desire to work out your credit problems and financial situation privately, but if you live with other people, the matter can become complicated. Under most circumstances, your credit history is your personal business and part of an exclusive, confidential relationship between you and your creditors. The credit of your household members won't be affected by your credit, that is, unless your poor payment habits extend...

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Who Is Responsible for Credit Cards If a Parent Dies?

After the tragic loss of a parent, money is often the furthest thing from your mind. But if your parent had active credit card accounts at the time of her death, you may be worried that you are responsible for any debt. Fortunately, in most cases you aren't responsible for credit cards after a parent dies. Joint Debt Some credit cards allow two people to use the card at the same time with both names on the account. Although these joint accounts...

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How Long Does a Satisfied Judgment Stay on Your Credit Report?

A credit judgment on your credit report can negatively impact your ability to get loans and various other types of financing. Derogatory items on a credit report have long-term consequences. But if you receive a judgment on your personal credit file, you have the option of paying the judgment and satisfying the debt. Even after you pay a judgment, the information can remain on your credit report. Definition of Judgment If a creditor or lender files a suit, you can appear in court to dispute the lawsuit. But if a judge determines that you...

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What Are the Effects of Debt Consolidation on Credit?

Debt consolidation is a common way for many consumers to lower the impact of monthly bills, yet many people are concerned about the effect such consolidation will have on their credit score. While there are legitimate questions and some negative effects, consolidating debt can also have a positive impact on your score. Before beginning on a debt consolidation program, you'll need to understand the implications. Paying Off Credit One of the...

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Debt Consolidation Techniques

Individuals who want to simplify their debts and reduce their balances more quickly often consider a debt consolidation. Consolidations lump all your debts into one loan, wherein you decrease your number of monthly payments. Those who consolidate their debts aim to receive a lower interest rate to pay less interest a month and reduce the principal on debts faster. Consolidation methods vary, and there are options to suit everyone. Home Equity Taking out a home equity loan with your mortgage lender lets you borrow cash from your equity....

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What Happens After a Leased Car Is Repossessed?

Leasing a vehicle can be an effective way to drive a nicer vehicle than you could afford through a loan. Your payments are based on the depreciation of the car over the time you drive it, rather than on the entire sale price of the car. However, if you fail to make your lease payments, the lessor may repossess the vehicle. Several events typically occur following the repossession of a leased vehicle. Right of Redemption Period After the repossession company takes your vehicle on behalf of the lender, it will typically transport the vehicle...

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Does a Spouse Have to Claim a Cancellation of Debt of the Deceased?

It can be easy to be overcome after a loved one's death, but neglect of important financial details of the decedent's estate may leave the survivors paying more than they should. In many cases, debts incurred by the deceased individual during his lifetime are canceled upon death and do not become the debt of the surviving spouse. Surviving spouses should follow the probate process properly to satisfy or cancel debts. Debts of the Deceased People often die with outstanding credit card bills, loan payments or other forms of outstanding debt....

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Can Pension Income Be Garnished in Virginia?

If you owe money to a creditor, he may be able to obtain a judgment against you, which he can use to garnish your wages and other income. However, if you receive certain types of pension income, it may be exempt from garnishment in most states, including Virginia. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act protects most federal benefits from garnishment. Under this law, Social Security retirement benefits, federal...

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How to Remove Negative Credit Older Than 7 Years

The FCRA (Fair Credit Reporting Act) gives you the right, as a consumer, to ensure that the information on your credit report is correct and not outdated. There is a portion of the FCRA that is referred to as the Statue Of Limitations. Under the Statue Of Limitations, any accounts on your credit report that has been charged off or sent to collections and has been inactive for more than seven years has to be removed. The credit reporting bureau does...

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How to Tell If an Attorney & Consolidate Debt Program Is Legitimate

Credit service organizations promising to erase bad credit, judgments and bankruptcies from credit reports may be making incomplete or inaccurate claims to attract your business. Rarely can a credit service organization erase a consumer's credit history without first completing a variety of steps, which still does not guarantee a clean credit report. Combat credit service companies making false claims by learning the ways in which you can check if an attorney and consolidate debt program is legitimate. Instructions 1 Obtain proof of licensure....

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Debt Consolidation Options for Non-Homeowners

The facts are crystal clear: a lot of Americans are struggling financially. The recession has affected millions of consumers. Many consumers find themselves either underemployed or unemployed while facing a mountain of debt. With high prices for essentials, is it any wonder that many people are falling behind on their monthly obligations? And not all of those struggling debtors are homeowners. So, what's a conscientious, non-homeowner supposed to do when he's drowning in debt? Unscrupulous Debt Consolidation Companies To fill the void since...

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Statute of Limitation on Credit Cards

Creditors cannot collect credit card debt after the time to do so under the statute of limitations has expired. The U.S. Federal Trade Commission also refers to this type of debt limitation as time-barred debt. The downside for debtors is that the statute of limitations on credit card debt is not a silver bullet and comes with several caveats and potential negative consequences such as poor credit. Time Frame Time and debt collection are...

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How to Find a Number Before a Percentage Markup Has Been Added

Retail shops and other merchants will sell merchandise after it has been marked up by a certain percentage. Merchandise is usually purchased at one price and then marked up and sold at another price. This process allows the retail outlet to make a profit. Profit is represented by the difference between the selling price and the purchase price. To find an amount before a percentage markup has been added, you will need to put together a formula using...

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