Learn
do-it-yourself free debt settlement or let an expert debt settlement company
negotiate a huge chargeoff for you.
By
negotiating settlements, you pay less than what is owed and that can end collection agency harassment quickly.
You
should first review the pros and cons of negotiating settlements.
One
reason to let a settlement company negotiate on your behalf, is because a
professional debt settlement company is experienced in negotiating and may be
able to get you higher chargeoff amounts.
Free Debt
Settlement Tips and Debt Settlement Companies for Hire
Fair
Debt Collection Practices Act Overview
Debt collectors are infamous for some of their underhanded tactics used to
collect debts from consumers. Many collectors get away with these tricks because
consumers are not aware of the laws dictating how collectors can and how they
cannot deal with consumers when collecting a debt.
The
Fair Debt Collection Practices Act, better known as the FDCPA, is a federal law
that governs the actions of parties acting as debt collectors for personal
debts. Auto loans, home loans, medical bills, and credit card accounts are all
considered personal debts.
Whenever
one of your creditors uses a third-party to collect a debt, that third-party is
obligated to follow the rules of the FDCPA. There are several things that a debt
collector cannot do under the FDCPA. They cannot:
Call
you before 8am or after 9pm
Call
you at work, provided the debt collector is aware your employer doesn't
approve of these phone calls
Harass,
oppress, or abuse you
Lie
to you or falsely imply that you have committed a crime
Use
unfair practices in an attempt to collect a debt
Conceal
his or her identity on the phone
Disregard
a written request from you to cease further contact
The law
also dictates how the debt collector must act when communicating with a person
other than the debtor. The collector is prohibited from giving out information
pertaining to your debt to anyone but you or your spouse. In fact, they are not
allowed to tell anyone else that you owe a debt.
Debt
collectors are not allowed to communicate via post card or use any kind of
symbol or language on an envelope that indicates they are a debt collector. Once
the debt collector learns you are represented by an attorney and has the contact
information for the attorney, the debt collector can only communicate with the
attorney.
Debt
collectors are prohibited from using any form of harassment or abuse while
attempting to collect abuse. They cannot threaten violence against the debtor,
their reputation, or their property. In addition, debt collectors cannot use
obscene or profane language when communicating with the debtor via phone or
through mail. Collection agencies and their collectors cannot publish any kind
of listing of consumers that have not paid debt, except to a consumer reporting
agency.
If your
rights under the FDCPA have been violated, you have one year from the date of
the violation to file a lawsuit against the debt collector. You could receive up
to $1,000 in addition to actual damages and attorney fees.
Resolved Question: Has anyone used a debt settlement group? ...anyone has used a debt settlement company, if so, which company did you...you been paying off your debt with that company, and how is your...feedback would be GREAT! ~Let us be debt free in '08~
After I made a late payment on my credit card, the bank notified me that it intends to raise my interest rate. Can the bank do that?
It depends. If your payment is more than 60 days late, the bank can raise your rate as long as it gives you a notice in writing 45 days in advance of the increase. The increase can be applied to your existing balances and new transactions.
If your payment was less than 60 days late, whether the bank can raise your rate depends on when you opened your account.
If you opened your account on or after February 22, 2010, the bank cannot increase your rate for making a late payment during the first year after the account was opened. After the first year, it can increase your rate if it gives you a written notice 45 days in advance of the increase. The increase will only apply to transactions that occurred more than 14 days after the notice was provided.
If you opened your account before February 22, 2010, even if the account has been open less than a year, the bank can increase your rate for making a late payment, but it must give you a written notice 45 days in advance of the increase. The increase will only apply to transactions that occurred more than 14 days after the notice was provided.
The bank raised my interest rate because I made a late credit card payment on an account with another bank. Can the bank do this?
It depends on when you opened your account.
If you opened your account on or after February 22, 2010, the bank cannot increase your rate for making a late payment to another bank during the first year after the account was opened. After the first year, it can increase your rate if it gives you a written notice 45 days in advance of the increase. The increase will only apply to transactions that occurred more than 14 days after the notice was provided.
If you opened your account before February 22, 2010, even if the account has been open less than a year, the bank can increase your rate for making a late payment to another bank, but it must give you a written notice 45 days in advance of the increase. The increase will only apply to transactions that occurred more than 14 days after the notice was provided.
Be sure to review your account agreement, which is the contract governing your credit card account. It provides information on changes that may occur to your account.
Does the bank have to give me advance notice of changes to my line of credit?
Yes, in many cases. If you have a line of credit that is not secured by real estate, the bank must provide a written notice to each affected consumer when:
* there are changes to terms that are required to be disclosed up front (such as rates and many fees), or
* the required minimum payment is increased.
The notice must be mailed or delivered at least 45 days before the effective date of the change.
However, there are some cases when the advance notice requirement does not apply. If you agreed to the change, the bank does not have to provide advance notice, but it must provide notice before the change becomes effective.
Also, there are some cases when no notice is required. For example, if you have a variable rate that is tied to an index and the index goes up, the bank does not have to provide you a notice of the increased rate. The bank also does not have to provide you notice if your rate is increasing because a promotional rate no longer applies, and the bank already gave you information about the terms of the promotion. Additionally, the bank does not have to provide you notice if it closes your account, suspends your credit privileges, or reduces your credit line. The bank does have to provide you a 45-day notice before it imposes a fee or penalty because you exceeded a new, lower credit limit.
Be sure to review your account agreement, which is the contract governing your account. It provides information on changes that may occur to your account.
Can I reject a change to my line of credit? The Truth in Lending regulations do not require the bank to provide you with this option. However, the bank may give you this option for other reasons. If the bank tells you that you may opt out of a change, and you wish to do so, you should follow the instructions in the notice you receive.
Be sure to review your account agreement. It will provide information on changes to your account.
Does the credit card billing cycle have to be 30 days? No, but the payment due date for your credit card bill must be the same day of the month for each billing cycle.
For more information, review the account agreement you received when you opened the account or contact your credit card company.
