Debt Consolidation Articles

Why is an entire town in Vermont having trouble borrowing money? Apparently TRW accidentally gave everyone in the town of Norwich, Vermont, a bad credit report. An anomaly, says TRW. The problem began with Margaret Herr, a Vermont housewife who works part-time for a Georgia company that gathers information for TRW on delinquent property taxes, among other things. In the course of her duties, Ms. Herr came to Norwich to acqu...

There are two kinds of credit reports; consumer credit reports and investigative consumer reports. Consumer credit reports list credit history, place of employment, social security number, and marital status. This is the most common kind of credit report and it is used primarily by potential creditors. The second kind of credit report, the investigative consumer report, provides much more detailed information. It is usually...

Three agencies virtually monopolize the credit reporting industry:

lRW, Trans Union, and CBl/Equifax. Equifax's reach is not limited to the United States; it is also a primary credit information supplier in Canada. These three agencies pro...

In their quest to become more competitive, credit bureaus have become more resourceful in their methods of data collection. In some cases they may even cross the boundaries of legality. In general, however, they use several legal sources of information.

• Current and previous creditors.
• Public records.
• Internal analysis.
• Credit applications.

Current ...

The Fair Credit Collection Act protects consumers from unreasonable collection action. Although the federal act only applies to outside collection agencies and to legal firms doing collection work, some states, as has been said, have passed state acts that have authority over in-house collection agencies. The acts prohibit the following practices:

• Using profane or obscene language.
• Threatening to harm...

The debt collection process begins when you first miss a payment A friendly reminder is usually sent letting you know that your payment is late. Mortgage and car payment reminders are often more demanding, since these debts are secured. If the payment isn't made, a series of letters usually follows, each increasing in severity. After anywhere from thirty days to six months, a creditor will usually turn the account over to c...

They cannot garnish your wages or take your property without a lawsuit (except in the case of automobiles, houses, and income taxes). You must be served and must have a trial before this can happen.

They cannot call you if you do not want them to. If a collection agency begins harassing you illegally, send the agency a certified letter requesting that it cease all contact. Inform the original creditor of the violati...

"No Recession in the Debt Collection" proclaims an article in a recent issue of an industry trade magazine. The article goes on to explain that collection agencies are making record profits as the recession causes more and more people to fall behind in their debts. Brokerage firms are recommending collection agency stocks as "hot" investments as we slip deeper into economic stagnation. Most collection agencies portray thems...

All collectors, whether in-house or outside, use a variety of interesting techniques. Some are perfectly legal, most are unethical, and too many are illegal but are practiced anyway.

The more information a collector can gather about you, the more likely he is to collect the debt or at least ascertain whether or not it is collectible. When he first contacts a debtor, he will try to get as much data as he can. First h...

As the economy worsens, many credit-worthy individuals are having difficulty paying their bills. Perhaps they were laid off, or their employer went bankrupt. Payments slowly get mailed later and later, until one day the creditor who was recently anxious for business begins to harass the borrower: Pay up or else! Some creditors are more enlightened than others, but to most a person is simply a number, his or her worth based ...