Collection Accounts

Author: The CreditLawGroup

A collection account is an account sent from a creditor to an outside agency or its own collection agency in order to collect an unpaid debt. After an account is charged off, it usually will go into collections, because they still want to receive the money for the debt. The account will no longer be reported as a charge off, but it will now be reported as a collection account.

Always pay your collection or it could mean no future credit!

It is always better to pay a charge off or collection account rather than to leave it as unpaid. On a credit report there are "paid collections" and "unpaid collections." When disputing information on your credit report, if you have documentation that you have paid a collection or charge off account, it should be stated on your credit report. Unfortunately, most lenders will reject people for having any type of charge off or collection account on their credit report. But, if the collection account is paid, creditors will see this and it can possibly lead to an increase in your credit score.

Do you have a paid account but it is being reported as a collection account?

Many times accounts are taken care of and paid, but the record is somehow lost or misreported. So what happens next? The account can be reported as unpaid and can go into collections. It could be a utility bill, medical bill, or a similar small balance bill. You have paid this balance but now it is showing on your credit report as a collection and significantly lowering your credit score! Now what? It is your legal right to dispute this inaccurate information. Credit reporting agencies report the information whether it is accurate or not, so it is your job to check your credit report and dispute the misleading information.

How can I dispute/conifrm accuracy of collection accounts on my credit report?

CreditLawGroup.com provides low cost legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax®, Experian® and TransUnion® and their affiliates. You can monitor your progress online, as well as speak to your Paralegal whenever needed by phone or email. We have excellent customer service, and are always there to meet your needs!

Article Source: http://www.articlesbase.com/credit-articles/collection-accounts-619350.html

About the Author

The CreditLawGroup.com website of Smith & Gromann, P.A. is a multistate law firm whose practice is limited to federal consumer and banking law under which the credit reporting system operates. The firm provides cost efficient legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax®, Experian® and TransUnion® and their affiliates. The firm also provides legal representation to victims of identity theft. Visit http://www.creditlawgroup.com for more information.

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Got Trouble? Why so Many Foreclosures?

Author: GotTrouble.com

Debt and foreclosure can be one of the most frightening and disruptive events you will ever face. Few situations in life are as stressful and humiliating. Your future is suddenly fraught with uncertainty and upheaval. Your relationships with family and friends can appear strained. If you're like most, you may not know where to turn or who to trust. Much will depend on your ability to stay calm and learn about your options.

Millions of Americans have gone through the foreclosure process. In fact some believe that 2007 will result in the highest foreclosure rate since the great depression. Much of it has been brought on by overzealous lenders who have lured borrowers into teaser loans containing low front-end payments that later adjust into much higher rates and higher monthly payments. For those that hoped on refinancing to offset the increase, the falling values of homes and the reduction of available equity in them have pushed many homeowners into foreclosure and even bankruptcy.

Debt and Depression –– keeping it together.

Financial trouble is rarely an isolated phenomena –it is often precipitated by the loss of a job, an injury or divorce. Keep in mind that money trouble is temporary – it almost always passes even though we feel it will last forever. In the meantime be sensitive to your own emotional state and that of those in your family – and if you find yourself depressed and feeling hopeless – don’t wait to get help. It may be time to contact a healthcare professional to help you through the crisis. Also, if you or your spouse is talking about ending your marriage, take a deep breath and consider the consequences of such an action. It is never a good idea to make life-changing decisions in a time of crisis; instead consider turning to an experienced marriage counselor, therapist or good friend to help you work through the marital stress caused by the threat of foreclosure.

Financial crisis is a time to reach out for professional help as well as emotional support from your friends and family. You might be surprised how many people understand and will be very supportive of your situation.

For this and more information on debt, bankruptcy and foreclosure visit www.gottrouble.com/legal/finance/index.html

Article Source: http://www.articlesbase.com/finance-articles/got-trouble-why-so-many-foreclosures-226783.html

About the Author

This trouble tip was brought to you by www.GotTrouble.com
Copyright - All Rights Reserved - 2007 GotTrouble.com Inc.

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Creditor Harassment: How To Get Rid Of Those Annoying Calls From Creditors

Author: Legal Helpers

Although most creditors are quite civil when demanding payments from their debtors, there are some creditors that tend to be too aggressive in collecting payments. Yes, this scenario is becoming very common in this country and when it happens, things can really become ugly.

When Can You Say That Your Creditor Is Harassing You?

Harassment comes in many forms. According to the law, the use of obscene language, threats and persistent calling even during odd hours to remind you of your obligations or calling your friend and relatives without your express permission can be considered as harassment. Note that just because you own someone some money that does not mean that that person or entity has the right to encroach into your private life or embarrass you in front of your friends and relatives.

Avoiding Creditor Harassment

The best way to avoid creditor harassment is to pay your obligations on time. If you cannot pay your financial obligations on time, it would be best to inform your creditors about your present financial difficulties and give your creditor some assurance that you will pay your debts within a reasonable period of time. You may also give your creditors some ideas as where you intend to get the money to pay your financial obligations so that they will not bother you while you are trying to get things back in their proper order.

In case you are no longer in the position to pay for your debts, file for bankruptcy immediately. Your creditor will have to stop calling you or sending you collection letters as soon as they receive a notice that you have filed for bankruptcy.

When a person gets really behind on their bill payments it may seem as though every five minutes someone is calling and asking for money. In many cases, explaining the circumstances and asking for suggestions on how to keep up on payments will be enough. Many debt settlement companies are willing to work with the debtor, but not all of them. Some bill collectors go to great lengths to live up to their reputation, in spite of consumer protection laws that are meant to protect people against hostile action.

While creditors have the right to attempt contact on past due bills, they cannot harass anyone for non-payment. According to the law, using foul language or calling constantly with the intent to annoy the debtor into making payments is considered harassment. Calling at odd hours or calling work, after they have been advised not to do so or calling friends and family members without permission is also considered harassment.

If attempting to work things out with debt settlement companies fail and bankruptcy is filed, all collection efforts by the creditor or their agents must stop, in accordance to the Fair Debt Collection Practices Act. Continuing to make contact after being informed of a bankruptcy filing, they may face fines and penalties. Informing them that an attorney is representing a debtor requires all contact to go through the attorney.

Harassing phone calls, especially those containing threats of violence do not have to be accepted. If the only way out of the financial mess is bankruptcy, then the calls will come to an end.

Article Source: http://www.articlesbase.com/finance-articles/creditor-harassment-how-to-get-rid-of-those-annoying-calls-from-creditors-315786.html

About the Author
Bankruptcy Attorneys

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Why Consolidate Debt?

Author: David Peters

People consolidate debt in order to reduce their monthly payments. With a consolidated loan, financial institutions such as banks and credit unions pay off all of a consumers loans and replace them with a single "consolidated" loan of all the combined debt, usually at a lower, fixed interest rate. Consumers can use consolidated loans to pay of debt on automobiles, credit cards, student loans, medical bills, etc.

If you can't meet your minimum monthly payments, if your loan or loans still have a lot of life left to them, or if you can get a lower, fixed rate, then it may be worth it to consolidate. But there are some questions to ask yourself first: Are you willing to extend the life of your loan in exchange for lower payments? This is typically how financial organizations are able to offer consolidated loans at such lower rates.

Are you ready for a new 20 or 30 year commitment? And most importantly, are you aware that when you consolidate your debt and extend the repayment term, while it reduces your monthly payments, it will actually increase the total dollar amount of interest youÕll pay over the long haul?So ask yourself, how close are you to paying your loans off? It may be more trouble than itÕs worth, and way more costly, to consolidate for a lower rate if you only have a few more years of payments under you existing loans.One of the most common ways to consolidate loans is to use the equity in your home. This can be as risky a venture as it is convenient. To consolidate this way, you would be turning unsecured debt into secured debt. You now have even more to lose than before if you should default on your new consolidated loan. At least with your current loans you donÕt have the items you purchased on your credit card taken away from you. But with a home equity consolidated lender will not hesitate to take your house if you fail to make your payments.

Another type of consolidated loan to beware of is the consolidated loan that offers you an unbelievably cheap interest rate even if your credit is lousy. The catch with this type of consolidated loan is the exorbitant application fee. If you can afford the application fee, you're better off applying that same amount to paying off your debt. Plus, there are so many wolves in sheep's clothing offering these types of consolidated deals, you may never actually see you consolidated loan when all is said and done.With those warnings in mind, it may still be well worth your while to consolidate debt, and to do it sooner than later. For one, the opportunity to consolidate debt may not be around for very much longer. Both congress and the President are considering legislation that could turn fixed interest consolidated loans into variable rate loans, or get rid of consolidated loans altogether.

If you chose not to consolidate your loans, or are unable to for any reason to consolidate, you could also consider having payments automatically deducted from your bank account on a regular basis. While it doesn't lower your expenses like a consolidated loan, it does ensure that your payments are made on time, and it will help you improve your credit score.

Article Source: http://www.articlesbase.com/advice-articles/why-consolidate-debt-40077.html

About the Author

Robert Michael is a writer for Y Consolidate which is an excellent place to find consolidate links, resources and articles. For more information go to: http://www.yconsolidate.com

Popularity: unranked [?]

Debt Consolidation Vs. Bankruptcy

Author: Jason

Although many people explore both these options when seeking solutions to their debt problems, the two are very different things. Further, since the passing of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which established a means test that has to be taken into account before a bankruptcy court will accept a petition, most people that can afford debt consolidation are not qualified to file for Chapter 7 bankruptcy relief. In so many words, if debt consolidation is an option for you, then bankruptcy Chapter 7 bankruptcy probably is not, although this may not be the case with Chapter 13 bankruptcy.

Debt consolidation usually takes one of two forms: a hard money loan or balance transfers. A hard money loan is essentially a new loan that you take out that is enough to cover all of your existing debts that you then repay back to the lender through agreed upon terms. A debt consolidation loan can make life much easier, can lead to lower interest rates, and may include some debt settlement done by the lender. However, in order to qualify you have to be in pretty good financial shape and usually you have to substantial capital, like home equity as well. This option simply is not available to most in an extremely back financial situation.

Balance transfers, where you shift all your credit card balances over to yet another card for a temporary reduction in interest rates or lower monthly minimum payments has long been recognized as slippery slope that usually does not actually fix anything. Further, now that the era of “easy credit” is over, the chances are pretty good that if you are already drowning in debt you would not qualify for a new line of credit large enough to consolidate all of your existing credit card debt.

Chapter 7 bankruptcy, on the other hand, is a measure taken more or less as a last resort. In order to even file your petition for Chapter 7 you have to have already gone through credit counseling which should have explored all the other options available to you. If all else fails and Chapter 7 bankruptcy is the right path to take then chance are you would not have qualified for any sort of debt consolidation solution anyway.

Article Source: http://www.articlesbase.com/bankruptcy-articles/debt-consolidation-vs-bankruptcy-1917196.html

About the Author

Bankruptcy and debt consolidation can get very complicated. Speaking to a bankruptcy attorney can really make sense to explore your options. Learn more and get Long Beach Bankruptcy Help at http://www.consumerbankruptcyattorney.com.

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