Credit Collection Statutes of Limitations in Indiana

Indiana law sets a deadline to collect debt called the statute of limitations. A creditor who does not file a collection lawsuit before expiration of the statute of limitations can be barred from using the court to collect the debt. Although Indiana law specifies different limitation periods depending on the basis of the debt, in most situations involving debt based on the extension of credit, the limitation period is six years.

Six-Year Statute of Limitations

Indiana Code 34-11-2 sets forth the specific statute of limitations for all types of lawsuits. For lawsuits to collect on accounts and contracts not in writing, such as debts incurred on credit card accounts, the limitation period is six years. In general a 10-year limitation period applies to written contracts; however, if the contract only involves the payment of money, such as a promissory note or installment agreement, the limitation period is only six years.

Asserting the Statute

The expiration of the statute of limitations on a debt is a good defense to a collection lawsuit, but the court will not be aware of the defense without the debtor responding to the lawsuit. After being served with a collection lawsuit, the debtor must file an appropriate response with the court asserting the statute of limitations as a defense. The court will dismiss a collection lawsuit in situations where the debtor properly asserts the defense. If the debtor ignores the lawsuit, the creditor can apply to the court for a judgment on the debt. After entering the judgment, the debtor can no longer use the statute of limitations as a defense to paying the debt.

Judgments

Indiana law also specifies a statute of limitations on judgments, which is 20 years. After that time, the judgment is considered satisfied. This means that the judgment creditor can no longer use the court process, such as levying on a bank account or garnishing wages, to enforce the judgment or otherwise collect the debt.

Fair Debt Collection

A debt that is expired under the statute of limitations does not automatically become void. The debt collector can still contact the debtor regarding payment of the debt, even though a lawsuit to enforce the debt is no longer viable. Federal and state law prohibit debt collectors from harassing debtors or engaging in any unfair conduct, but simply requesting payment on an expired debt is not harassment. To stop collection calls on an expired debt, the debtor will most likely need to set forth in writing that he refuses to pay the debt because it is expired and to request no further contact. If the debt collector persists, the debtor should consider seeking the advice of an attorney knowledgeable in the law about debt collection practices.

Read More

How to Make Money From Home

If you're tired of long commutes or if you want to spend more time at home with your family, finding ways to make money from home can solve your problems. Several options are available to people who want to earn money from home. Put your skills to use and begin marketing yourself as a virtual worker.

Instructions

1

Buy and re-sell items. Develop a routine of visiting flea markets and yard sales each week looking for items to sell. Paint or refurbish the items, and then re-sell them. You can auction off these items online, take them to a consignment shop, have your own yard or craft sale, or place classified ads in your newspaper.

2

Earn money with a home-based business. If you're self-motivated and have a skill, use this skill to own your own business and make money from home. Ideas for home-based businesses can include opening a home day care, private music lessons, tutoring, cleaning business or becoming a freelance writer.

3

Meet with your boss and propose telecommuting. If you don't want to start your own business, speak with your boss to see whether he will let you work from home -- if not everyday, see whether you can negotiate telecommuting a few days a week.

4

Market yourself as a virtual assistance. Update your resume with your most recent skills and experience level, and then leave your resume with companies in your area. Highlight that you're a virtual assistance capable of many jobs such as customer service, data entry, word processing and other chores.

Read More

What Is the Difference Between a Credit Card and Revolving Credit?

There are many types of consumer loans in the United States. One of the most common is the credit card. Credit card payments are calculated monthly based on outstanding balances. This type of credit is called revolving credit. Installment loans, on the other hand, are pre-calculated--the standard payment never changes. There are, however, some differences between revolving credit on credit cards and revolving credit on other loans.

Identification

A revolving line of credit can adjust dramatically. For example, if a credit card has a $5,000 credit limit but only a $100 balance, the payment required will be quite low. However, if that card is maxed out, the payment will likely be quite high. Credit card companies adjust payments each month by calculating the amount of interest based on the outstanding balance.

Credit Card Rates

Credit card rates are often variable or adjustable. In response to the 2008 credit crisis, credit card lenders cut back on offering fixed-rate credit cards in an attempt to remain profitable. Rates change most often when borrowers fail to make payments on time. The rates sometimes can be changed arbitrarily. Usury laws differ from state to state, but some states (like Delaware) have extremely loose usury regulation. Many credit card companies set up their headquarters in these states to take advantage of lax regulation.

Revolving Credit Rates

Not just credit cards are revolving. Personal lines of credit and even mortgages can be revolving accounts, too. However, these programs are often more beneficial to the customer. Revolving mortgages, for example, usually have fixed rates. Customers still only need to make minimum payments, but need not worry about their rates skyrocketing.

Additional Fees

Credit cards are known to have ample fees. Annual fees, processing fees, late fees and over-limit fees are all somewhat common. Customers who struggle with their credit card payments often find their balances remaining stagnant because of extra fees--especially if only monthly payments are made.

Similarities

All revolving lines of credit offer consumers the ability to re-access a credit line. This can be flexible. Revolving mortgages, especially, are helpful for consumers doing home repairs. Customers can take advances for supplies and labor, pay back the advance and re-borrow against the line if needed.

Read More

The Best Way to Dispute a Credit Report

In order to maintain good credit, you have to be in the habit of monitoring your credit report and disputing misinformation. You need to ensure that your credit report paints an accurate picture of who you are and your money management. Monitoring your credit report allows you to defend yourself against identity theft and making sure the credit bureaus have accurate information.

Ordering Credit Reports

Order your credit reports from Experian, Equifax and TransUnion and pay the fee to receive your credit scores. You can order your credit report for free, but the free report does not contain your credit score. You want the credit score so you are aware of your starting point prior to disputing information. Credit reports can be ordered online or you can write them and include your payment expressing that you want your credit score.

Locating Inaccurate Information

Once you received the credit reports, begin highlighting inaccurate and negative information. When disputing misinformation, it is important to provide a copy of the documentation that proves what you are saying is correct. You have to send a letter to each bureau disputing the misinformation if the dispute is on all three reports. If it is only on one, then send it to that specific one. The goal is to make sure your credit report is accurate.

File Your Dispute

Once you have written your letter, it is best to make copies of all the documentation you are sending. Also you want to mail it certified return receipt so that you are able to see when it was sent. If you send it regular mail without any type of return receipt you will not know for sure when they got it.

Tracking Credit Report Corrections

Once you have received the certified return receipt, create a chart that shows when you mailed the letter, the date you received the return, and also include a block that shows when you get the corrected credit report back. The credit bureaus are required to investigate the dispute within 30 days and contact the company you have the dispute against. Once the bureaus have completed their investigation, it is their responsibility to provide you with the results of their investigation and if appropriate, a corrected credit report.

Additional Requests

Consumers can make additional requests of the credit bureaus that can benefit their credit with another creditor. For example, the consumer can request that the credit bureau send the corrected credit report to anyone who received a copy of your report within the prior six months. Also, consumers can ask that corrections be provided to anyone who previously ordered the credit report for employment considerations up to two years prior.

Read More

How Does Bad Credit Happen?

How Bad Credit Can Ruin You

Millions of people in America suffer from bad credit. If you are about to get out on your own and begin building a positive credit score, you need to know the pitfalls to avoid. Here are the components that create bad credit.

Credit Cards: The Dangerous Game

Credit cards can be both a blessing and a curse. They are probably the number one way that bad credit happens. It occurs because people fail to pay their balances off in a timely manner, miss even their minimum payments, and wind up subjected to bad marks on their credit reports. It is very important to keep abreast of your credit cards and not to let them get out of control. Don't buy anything you can't conceivably pay off at the end of the month.

Keep Your Credit Report Clean and Simple

It looks bad to credit agencies when you have a multitude of open credit accounts. Even if you are staying on top of all of them, they can contribute to bringing your credit score down. Keep just a couple of credit cards. Having a different card for every department store, every bank and every gas station is a sure way to make your credit report look sloppy and rough.

The Two Big Credit Killers

Bankruptcy and foreclosure are the biggest ways in which credit can go down the tubes in one fell swoop. On the other hand, sometimes there is no alternative. Black marks on your credit report last for 7 years before being wiped clean. If you have to declare bankruptcy or submit to foreclosure, begin working immediately to repair the damage done. There is no hurrying of the process, but you can make sure you are ready to make changes when the 7 years are up.

Read More

Sources of Identity Theft

Identity theft is on the rise. According the Javelin Strategy and Research Center, in 2008, incidents of identity theft rose 22 percent over the prior year. Obtaining your personal data has real advantages for a criminal. He can manipulate employment applications, apply for a fake driver's license and make use of your credit ranking. Money becomes available from banks and credit-card companies. The sources of identity theft are vast. Finding information that enables perpetrators of this crime to stay in business is far easier than you may realize.

Stealing

Stealing a wallet offers a wide range of information about an individual. Once your wallet is in the hands of a criminal, he acquires access to your credit cards, driver's license and possibly your social security number. Other targets of theft include intact credit cards retrieved from trash dumpsters and mail pulled from mailboxes. Personal information is available from employment files. Someone watching you during an ATM transaction may note your PIN number. Prior to the development of the Internet, common theft was the primary means of procuring information.

Phishing

Phishing is a term that describes email messages sent to obtain your personal information. Emails that appear to come from banks, Web services, schools or even an employer will ask you to update your personal information. A link or form is provided that asks for your bank account numbers, social security number and passwords. Many phishing schemes are well planned and effective. They utilize official logos, provide accurate employee names and even feature links that appear to go to pages from official websites. As a policy, you should never answer an email requesting personal information. Legitimate companies will not ask you to provide information via email.

Data Breaches

Data breaches occur when a hacker infiltrates customer account records. Companies at risk for such invasions include credit-card services, banks and employers. Once procured, the information is disseminated among an underground network of parties interested in purchasing information in bulk. The data hacked may be sold en masse or as individual records. Most companies provide security features to prevent these breaches from happening, but the criminals' technology may be advancing faster than that of the security systems available.

Read More

The Best Credit Cards to Reestablish Credit

When you've suffered financial difficulties and have a bad credit score to boot, it can be very difficult to know where to begin to rebuild your credit worthiness. Though there is not a single best way to rebuild your credit, nor a single credit card that will help you to do this, you can improve your credit if you choose a credit card that matches your abilities and spending habits.

Rebuilding Credit

When you suffer financial problems that lower your credit rating, you will have to prove to creditors that you are a reliable borower before you can expect to get favorable credit offers. You don't need a credit card to do this, but a credit card can help. You have to show a lender that you can responsibly manage your debt. If you do, your credit rating will rise and you'll increase your score.

Secured Credit Cards

Many people with bad credit histories are excluded from regular unsecured credit cards, and can only get a secured card. If you get a secured card, you have to give the creditor a security, usually in the form of a cash security deposit. If you then fail to pay back the loan, the creditor can take this money to pay for the debt. Secured credit cards typically come with a very low spending limit, so use these cards sparingly and pay off the balance at the end of each month.

Unsecured Credit Cards

Some creditors with bad history can still get an unsecured credit card. However, if you have a low credit score, the unsecured credit card you get will likely have a much higher interest rate than those offered to consumers with good credit. According to Bankrate, as of March 2011, the best cards for people with bad credit had average interest rates of between 7.9 and 19.9 percent. People with bad credit will more likely have the 19.9 percent rate if they get approved for such cards.

Prepaid Credit Cards

Some consumers seek out prepaid credit or debit cards in an attempt to increase or rebuild their credit. While prepaid cards are a viable option for some consumers, they typically do very little to help build your credit. Because prepaid cards are not really a form of credit at all and are more like a gift card, their issuers do not usually report to the major credit bureaus, according to Bankrate. If the credit bureaus don't record it, it won't help your credit history.

Read More