Month: October 2011

The definition of debt collector under the  Fair Debt Collection Practices Act does not include original creditors or servicers of an account for a creditor.  There are certain exceptions to the rule, but for the most part, the statute only applies to third party debt collectors.  Therefore, your creditors  are not held responsible for following […]

Be careful. An ex-spouse can ruin your credit long after the divorce.  We hear it all the time.  There is a divorce decree that states that one spouse is liable for certain old credit card bills.  Years later, that spouse discontinues making payments for whatever reason.  The spouse that was not supposed to be liable […]

The virtual credit card has been around for some time. Remarkably, few consumers use them. American Express discontinued virtual credit card service in 2004 and Discover followed in September, but Bank of America and Citi still offer it. Virtual credit card numbers were created to avoid giving out your credit card information. They are used when the credit […]

Minnesota’s Department of Commerce is clamping down on the abusive tactics of debt collection firms. Eight firms are facing severe financial penalties ranging from $40,000 to as high as $300,000.  These firms are being accused of harassing consumers, stealing personal financial information and hiring felons as collectors. The firms that are being penalized include Allied Interstate, […]

Over the years I have dealt with numerous cases of identity theft so I sat down and thought about what I would do if my identity had been stolen.  Given my knowledge of credit reporting, creditors, bill collectors, and my experience with the laws that govern these companies, I put together what I would do […]

The Federal Trade Commission shut down a Southern California debt collection business accusing them of harassing consumers and small business owners with obscene language and threats. They are being charged with violating the Federal Trade Commission Act and Fair Debt Collection Practices Act. On Sept 30, the FTC froze the business operations and seized the […]

The General Rule of Thumb Collectors cannot talk to third parties without your permission. A debt collection agency cannot discuss your debt with third parties (friends, family, neighbors, co-workers, acquaintances, etc.) unless they have your express permission. Quite simply that means the debtor themselves must tell the collector that they have permission to speak with […]

First, call the collector.  The credit report should have the contact information for any creditor reporting on your credit report. If not, a simple internet search of the name of the company reporting on your credit file will lead you to them. Call them and find out about it; they will be more than willing […]

Debit cards have become the new normal. But did you know that debit cards are your least-friendly piece of plastic in your wallet?  The costs of using debit cards are rising.  Bank of America now charges a $5 monthly fee for making debit-card purchases. Chase, PNC and TD Bank charges $5 for each ATM usage. […]