How To Change Credit Score

Fair Isaac Corp., the people who bring you your FICO score, are now rolling out FICO 08. The new system will result in changed scores for many people. Some might go up, and some will go down.

According to Yahoo, "Fair Isaac predicts its new system will help lenders reduce default rates on their consumer credit by between 5% and 15%." That is a good thing. Lenders needs to watch who they give money to. Heck, for that matter, consumers need to watch who they borrow money from and how much money they borrow. This new system should help both.

Things When IRS may owe money

WOW! Debt collection practices are so bad that the IRS may owe people an apology - and $1,000. The Washington Post is reporting that the Taxpayer Advocate thinks the IRS should get rid of private debt collection.

According to the Post: In her annual report to Congress, Olson urged lawmakers to authorize up to $1 million a year for the National Taxpayer Advocate to make payments ranging from $100 to $1,000, adjusted for inflation, to people who experience some sort of "excessive expense or undue burden" because of IRS errors.

Imagine, if it is so bad that the IRS is causing undue burden, imagine what private debt collectors are doing. Spending thousands or hundreds of thousands of dollars trying to collect debts that may not be owed. Running up attorneys fees to collect small debts and then alleging an outrageous amount of money in attorneys fees that they may (or probably not) be entitled to collect. Harassing and abusive behavior.

The list could go on and on. This is why I tell people to contact an attorney when you get your first notice. Even when there are no debt collection violations, an attorney may be able to negotiate a payment for you and avoid the debt collector charging you expenses and attorneys fees that it may not be entitled to collect.

Housing Of Scam

Buyer beware, we all know. But, now it shoud be seller beware. And, on top of that, mortgagor beware. The FBI is reporting a significant increase in the number of housing scams.

The types of scams being reported involve false documentation and flipping. Basically, buyers purchase a low value home, then get a false appraisal, and sell the home for more money - and more money than the property is worth. The numbers are impressive: a 300% increase in cases from 2003 to 2007.

Consumer advocates say enough is not being done to investigate the companies that steer consumers to higher interest rate products. Kathleen Keest, senior policy counsel for the Center for Responsible Lending said "The business standards have really sunk across the board in the last few years. The federal regulators were just asleep at the wheel."

Especially as the housing market changes over the next 12 months, make sure you know who you are dealing with and what you are buying, in terms of your house and your mortgage.

Learn For Protect A Credit

Something from Clark Howard, a national radio host and consumer advocate, that I came across today. It is called a credit freeze. Basically, you freeze your credit report. This way, if someone steals your identity, they still cannot do anything with it. It costs you $10 per credit bureau ($30 total) to freeze it and $10 to "thaw" (Clark's word, not mine) your credit (another $30 total), but it seems well worth it.

You do not want someone to steal your identity. Obviously, that is step one. But, if someone does, you can still use this method to lock them out. An analogy, if I may: Someone steals your garage door opener. They go to your house, click the button, but it doesn't open. Why? Because you have locked it from the inside as well. Similar concept with this.

Must Quick, Updating your information

In California, if you have a creditor, you are required under the Rosenthal FDCPA to update your contact information with the creditor. This means that if you move, you need to call the creditor and give them your address.

There are no damages for not doing so. However, if the creditor, or a collection agency, sues you and they attempt to serve you at your old address, service may be valid. Don't take the chance and update your address with the creditors.

Always thing about Verfication

We all know that the 3 most important things in retail are location, location, location. Well, the three most things when you are contacted by a debt collection agency are verification, verification, verification. Many times, they do not have any verification. The debt collector bought a list of debtors and the amount of the debt. They send letters hoping people will pay or they will sue and get a default judgment. Then they never have to prove the debt.

However, you need to ask for verification. No, demand verification. And do it within 30 days. I even have a sample letter on here for you to use. You need to get verification of the debt. Make sure it is you, even if you have the most unusual name in the world. If they can't verify the debt, they may just go away.

Here some sample about Letter for Verification.

Good Luck!

All things can do if you cannot afford filing fees?

Let's face it. Most people who are being sued by a debt collector don't have the money to pay the court costs associated with defending a case. That is a difficult spot to be in. You are being sued, you may have a defense, you don't want to call an attorney, and you don't know what to do.

Okay, start by going back and calling an attorney. You should at least get a consultation and I give free consultations. I know many other consumer attorneys do this as well. After that, you may still decide to represent yourself.

Now, what do you do if you cannot afford the filing fee? You may qualify for a fee wavier. How do you know? Read this from the Judicial Council of California. If you qualify, the court will waive the filing fee and you can defend yourself.

Tutorial For get a new social security number?

Q: My social security number was stolen. Can I get a new one?

A: Maybe. The Social Security Administration may give you a new one. From their website:

If you have done all you can to fix the problem and someone still is using your number, we may assign you a new number. We can help you complete an application, but we cannot guarantee that a new number will solve your problem.

You cannot get a new Social Security number if:

• You filed for bankruptcy;
• You intend to avoid the law or your legal responsibility; or
• Your Social Security card is lost or stolen, but there is no evidence that someone is using your number.

Thing About The Statute of Limitations

I have written before about the statute of limitations. It is generally four years on a written contract. Simple enough, right?

Well, maybe. It is four years from the date of the last payment or the date the last payment was due. But, in calculating the statute of limitations, what is the end date? In other words, what do they have to do before the statute of limitations expires?

Simple. They just have to file a lawsuit. And once it is filed, they can then serve you, get a judgment, and collect on the judgment. The judgment is good for 10 years. However, even if they miss the statute of limitations, if you do not respond, they can win.

This why you should not ignore legal papers once you get them. Let a professional look at them and make sure they did not miss the statute of limitations.

How To Repot Credit Problem

As you know, I believe you should pull your credit report at least once a year, maybe even twice a year. You can get a free one from this website (this is the official one, not one of those that make you buy something first). But, what do you do if you find wrong information on your credit report? Send this letter:

Dear Sir or Madam:

I am writing to dispute the following information in my file. I have circled the items I dispute on the attached copy of the report I received.

This item (name of source and identity of item) is (inaccurate or incomplete) because (state specific reason here). I am requesting that the item be removed (or changed) to correct the information.

Enclosed are copies of (any supporting documentation) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,

Mr. And Mrs. Consumer

This letter should help you dispute wrong items. This could help you increase your credit score just by fixing problems.

Thing About Short Term Loans

Far be it for me to pick on anyone, but....................these short term or "payday" loans are a disaster. Have you ever read the terms?

Here is a sample. 99% interest. 99%? Seriously? You are paying back almost double what you borrowed. That is absolutely ridiculous.

If you need a loan, and you have no other options, I understand the need for this. However, try to get money through almost any other way before you take out one of these loans. You will fall behind quickly.

Sample Debt Verification letter

Yesterday, I gave you a sample cease and desist letter. Today, I am giving you a sample verification letter. Just send this to the debt collector when you want verification of the debt. Make sure you send it within 30 days of receipt of the original notification from the collection agency.

ABC Collection
1234 Main St.
Anytown, USA 12345

Re: Account:

Dear ABC Collection:

I dispute the above-referenced debt. Please verify this debt as required by the Fair Debt Collection Practices Act.

While this debt is being disputed, you cannot report this debt to the credit reporting agencies. If you have already reported it the credit reporting agencies, please contact the credit reporting agencies, inform them that the debt is disputed, and ask them to delete it from my credit report. Reporting information that you know to be inaccurate, or failing to report information correctly, is a violation of the Fair Credit Reporting Act and other applicable laws.

Sincerely,

Mr. (or Mrs.) Consumer

Upon receiving this, the debt collector should send you verification of the debt in a timely manner.

Insurance and Cancer 3 day walk

I am a big believer in attorneys giving back to the community. It is why I am so active in groups like the law school consortium project. It is also why I blog. I could keep my knowledge to myself. After all, more of you would need to hire me and I would make more money! But, I share it because there is plenty you can do yourself without hiring an attorney.

Well, now I am asking for something back. Odd, I know. Probably a faux pais according to some people. But, I know my readers well enough, I think, that I can take this chance. I trust that you appreciate what I give and you will indulge me for once.

This is a bit more close to home. My wife will be participating in the Susan G. Komen 3 day walk in San Diego in November. (Yes, I am married. You can see a picture of my family on my website.) My mom is a breast cancer survivor, having beaten twice, but it came back last year for a 3rd time. The prognosis on the 3rd time is not as good. My mom is still with us, thankfully.

I know how many people read this blog every day. I know how many people were coming here even when I was not posting. If everyone gave $10, the goal of $2,200 would be blown away. Think about the good that could do and the lives that may be able to be saved one day when we get a cure for this horrible cancer.

Thank you for reading this.

Sample Letter For Request Debt

Since I get so many requests for it, I am going to give you a sample letter that you can send to a debt collector that tells them to leave you alone:

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

ABC Debt Collection
1234 Main St
Anytown, USA 12345

Re: Account #:

Dear ABC Debt Collection:

This is my notice to under the Fair Debt Collection Practices Act to stop communicating with me in regards to the alleged debt stated above.

If I receive any communication from you, by phone or mail, I will file a complaint with the Federal Trade Commission, my state Attorney General, the American Collectors Association and the State Bar.

I do not want to deal with you. I will contact the original creditor to resolve this matter, if that is warranted.

If, as a result of this letter, you place a negative mark on my credit, I will take any and all legal action available to me.

Sincerely,

Mr. (or Mrs.) Consumer

Simple enough. Just send that letter and the debt collector must stop talking to you. If they do, you have damages under the FDCPA. By the way, in California, you can add "and the Rosenthal Act" to the first sentence.

About Spuse Debt

A: Maybe. The question is why was there a judgment against him? The issue really is a family law issue about community property and separate property. If it is considered community property, then they could come to you. If it is separate property, the debt would go with him.

Make sure that the divorce decree assigns the debt to him.

Q: I am getting divorced. My spouse has a judgment against him. It is only against him. Will I be responsible for this after the divorce?

A Question, Can they take a joint account holder's money?

Q: I have a judgment against me. I just received notice of a bank levy on my account. I have a join account holder, who is not my spouse, on the account. Can they take this other person's money?

A: He or she could be affected in that the judgment holder could take money in the account. The account holder would have to prove that the money is his or hers and not yours. If it is just your money, he or she should not have any problems.

Tips For Get Your Money

Yes, I am going to tell you how to get your money back from the banks or other people who owe you money. It is called the Bureau of Unclaimed Property. Cool, huh?

The Bureau has a UCP website that lets you find out if the State of California is holding money that someone owes you. Basically, if someone owes you money and can't find you, the money goes to the State Controllers Office. They Bureau holds the money and you can search it to see if you are owed money.

Alas, they are not holding any money for me, but a few other Jonathan Stein's need to check to see if they can get their money.

A Complaints From Debt Collector on the Rise

Its not just the attorneys out there telling you that debt collectors are problems. Of course, I am going to keep telling it to you until they clean up, which I am guessing will happen shortly after they are either banned completely or the end of the earth comes. Hey, they are not all bad. Some are nice people. But, the bad ones dominate. I would be more than happy to have them clean up their act and make me find a practice area. I just don't see that happening.

The Register Citizen has a story about debt collectors and how you can keep them in check. The paper notes an increase in complaints registered with the FTC. "(Debt collection complaints) are extraordinarily common," said Dan Blinn, Connecticut coordinator of the National Association of Consumer Advocates and managing attorney of Consumer Law Group in Rocky Hill. "The (Federal Trade Commission), which logs complaints against collectors, issued a report in the last several months that confirmed what I've been noticing in my practice: a very significant increase in the number of complaints."

The article also talks about common debt collection violations, a topic I have written on before. After you read the article, email me for my free report on the 9 most common debt collection violations.

About Debt Insurance Blog

I am a personal injury and insurance attorney in Elk Grove, CA. My practice consists mainly of helping injured victims of automobile accidents, slip and falls, and other injury causing events. I also handle insurance disputes and insurance bad faith cases. My experience comes from over 8 years as an insurance adjuster. Please visit my website at wwweducationloan.info for more info about education loan and Student loan for my brother journal for private finance and student loan.

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Regards,

~Thomas