Ch.6 Credit Bureaus and Collection Practices
What should your Pro-Rata plan include?
as much prompt repayment of debt as possible, but you must set your priorities of repayment.
What are Cease-and-desist letters?
lawsuit proceedings.
What lawsuits are filed in General Sessions Court (or small claims court)
lawsuits for under $10,000
To counteract the technique or telemarketers you must always pay what first?
necessities, and then you set the order of payments.
Trained salespeople or telemarketers
Collectors
What only information can legally be removed from a credit report?
Inaccurate information
The National Association of State public Interest Research Groups did a survey of 200 adults in 30 states who checked their credit report for accuracy. What percent had the same mortgage or loan twice?
22%
The National Association of State public Interest Research Groups did a survey of 200 adults in 30 states who checked their credit report for accuracy. What percent of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open.
30%
How long does it take fore your information to be removed from your credit report?
7 years after the last activity on the account.
What is the Credit Bureau?
An agency which collects the credit history of consumers so that creditors can make decisions about granting loans.
Passed in 1977 to protect you from unfair collectors:
FFDCPA
How long does a ch.7 bankruptcy stay on?
10 years.
The National Association of State public Interest Research Groups did a survey of 200 adults in 30 states who checked their credit report for accuracy. How many of those credit reports contained mistakes and errors serious enough to result in denial of credit?
79% contained mistakes and 25% contained errors.
What is Chapter 7 Bankruptcy?
A chapter of Bankruptcy Code that provides for liquidation (sell for cash) of the debtors assets or aggregate value of assets that the debtor may be exempt (they don't have to sell) at the state law.
What is the Federal Fair Debt Collection Practices Act?
A consumer law passed to protect you from unfair collectors; sets up restrictions creditors must follow.
What is Garnishment?
A court order that requires an employer to take money owed directly from the employee's paycheck and pay it directly to one of the employee's creditors until the debt is resolved (repaid).
What is Bankruptcy?
A legal process to get out of debt when you have failed financially (when you can no longer make all your required payments). .
What are the three credit Bureaus?
Experian, TranUnion, and Equifax
Is it true that you need to take out a credit card or car loan to build up your credit score (give truth if false)?
False: The FICO score is an "I love debt" score and is not a measure of winning financially.
What are the Four Walls?
Food, Shelter, Loincloth, and Transportation.
Using another person's information to obtain goods or services
Identity Theft
What is the fastest growing white collar crime in America today?
Identity Theft
What are the five steps to take after becoming a victim of Identity Theft?
Place a fraud victim alert on your credit Bureau report, get a police report, remember that is is theft; you owe nothing and should pay nothing, contact the fraud victim division of each creditor and furnish documentation, be persistent.
What is Pro-Rata?
The fair share, or percent of your total debt each creditor represents. This will determine how much you spend them when you cannot make the minimum payments.
When do you use the Pro-Rata Plan?
When you are unable to pay minimum payments.
What are the three steps to clean your credit report of inaccurate information?
Write a separate letter for each inaccuracy, staple a copy of your credit report to each letter, and circle the account number.
What is a credit report?
a report showing your payment history
What is the FICO?
stands for Fair Isaac corporation, which developed a score-based rating system that many companies use to measure an individual's credit.
