“I don’t need credit.”  It seems like I hear this at least once a week on average.  The people I get this from typically know what they’re talking about—they’ve been living with bad credit so long that it’s become a way of life.  And while it’s true that it is possible to exist without credit (or live with bad credit), it’s difficult at best.  Believe me, I know—I once had horrible credit after having great credit for most of my life.

During the time I had bad credit, it seemed as if I had a dark cloud hanging over my head.  I was unable to do most of the things that folks with good credit take for granted.  Things like financing vehicles for my kids, taking out a home improvement loan so that we could do some much-needed repairs and updates to our home, getting better insurance rates, applying for student loans for my kids, and utilizing a credit card as a tool to help build my credit scores (and for emergencies!).

Having had good credit in the past, I wanted good credit again.  Never once did I say—or believe—that I didn’t need credit. I knew the benefits that come with a good credit rating.

If you are telling yourself that you don’t need credit, do you really believe that—or have you simply given up on ever having good credit again?  Overcoming bad credit and having good credit is a process that requires effort on your part; however, the benefits will far outweigh the costs.  One thing is for sure:  you need good, open trade lines in order to have a good credit score.  This means that it’s time to begin using credit the proper way—as a tool to build credit scores, as opposed to a means to purchase goods and services you can’t afford!

Do you have goals and dreams in life that require you to have good credit?  Would you like to buy a house or a vehicle?  Or do you need good credit in order to get your dream job or a promotion?  Then why not take the first step in the process?  Give me a call at 214 504-7101 or email me at creditguy@ncs700.com and let’s discuss your situation.

Regards,

Brad Boruk
The Credit Guy
FCRA-Certified Credit Analyst
National Credit Solutions

214 504-7101

It’s a new world out there, to say the least.  With the current downturn in our economy, consumers who have never had even one derogatory mark on their credit file are now experiencing something new:  accounts in collection.  Along with this, we are seeing a dramatic increase, not only in debt collector activity, but also in some debt collectors exceeding the boundaries of the law.  If you are contacted by a debt collector, you do have rights as a consumer.  Let’s begin by taking a look at what debt collectors cannot do according to the Fair Debt Collection Practices Act.

Under provisions of The Fair Debt Collections Practices Act,  it is illegal for Debt Collectors to:

• Call you before 8 a.m. or after 9 p.m. without your permission.
• Use the phone to harass you, such as making repeated calls.
• Call at work after being told your employer doesn’t allow personal calls.
• Tell your employer or anyone else that you owe money.
• Call again after you’ve sent a letter asking the collector not to do so. The only exception is to tell you the collection agency is taking legal action against you.
• Use obscene language or threaten to harm you.
• Send you documents that appear to be legal papers when they’re not, or state that forms sent to you are not legal documents when they are.
• Imply that he is a lawyer, private detective, or credit bureau representative.
• Imply that you have committed a crime or will be arrested if you do not pay your debt.
• Threaten to sue if the collection agency does not actually plan to do so.

Required conduct

The FDCPA requires debt collectors to do the following (among other requirements):

• Identify themselves and notify the consumer: In every communication, that the communication is from a debt collector, and in the initial communication that any information obtained will be used to effect collection of the debt.
• Give the name and address of the original creditor (company to which the debt was originally payable):  Upon the consumer’s written request made within 30 days of receipt of the §1692g notice;
• Notify the consumer of their right to dispute the debt (Section 805):  In part or in full, with the debt collector. The 30-day “§1692g” notice is required to be sent by debt collectors within five days of the initial communication with the consumer, though in 2006 the definition of “initial communication” was amended to exclude “a formal pleading in a civil action” for purposes of triggering the §1692g notice, complicating the matter where the debt collector is an attorney or law firm. The consumer’s receipt of this notice starts the clock running on the 30-day right to demand verification of the debt from the debt collector.
• Provide verification of the debt: If a consumer sends a written dispute or request for verification within 30 days of receiving the §1692g notice, then the debt collector must either mail the consumer the requested verification information or cease collection efforts altogether. Such asserted disputes must also be reported by the creditor to any credit bureau that reports the debt. Consumers may still dispute a debt verbally or after the thirty-day period has elapsed, but doing so waives the right to compel the debt collector to produce verification of the debt. Verification should include at a minimum the amount owed and the name and address of the original creditor.
• File a lawsuit in a proper venue:  If a debt collector chooses to file a lawsuit, it may only be in a place where the consumer lives or signed the contract.  Note, however, that this does not prevent the debt collector from being sued in other venues for violating the FDCPA, such as when the consumer moves outside the venue and a letter demanding payment is forwarded to the new address, even if the debt collector is unaware of such a change in residence.

Along with your rights, there are also some things you should be aware of if and when you communicate with a debt collector:

NEVER:

• Give a debt collector your bank account information or credit card information.  The collector may take more than you have authorized.
• Do “checks by phone” as debt collectors could empty your bank account and you would have very little recourse.
• Send money to a debt collector by Western Union or other wire services.
• Do anything based on a phone call.  A legitimate collector should be willing to put agreements in writing BEFORE any payment is made by the consumer.

ALWAYS RECORD:

• Every conversation (where legal to do so) with collectors so they can be held accountable if they break the law.

Keep in mind that states may have additional laws that protect its citizens.  If you are being sued, we advise that you contact an attorney who specializes in this particular field.  If you are a client of National Credit Solutions, you may be entitled to a free investigation of the collection to see if there are any violations under the FDCPA.

If you have any questions, please feel free to contact me personally or post your question here.

Regards,

Thanks,

Brad Boruk
The Credit Guy
214 504-7101