Do you know your rights?

The Fair Credit Reporting Actwas passed in the United States originally in 1970 to regulate collection, distribution, and use of consumer credit information. It is enforced by the US Federal Trade Commission.






Under this act, credit bureaus, such as Experian, Equifax and Transunion, have certain responsibilities:






1. They must provide a consumer with the information about him or her in their files and verify the accuracy of that info.




2. Negative info that has been disputed and removed may not be reinserted without notifying the consumer in writing within five days.




3. The Credit Bureaus may not keep negative info for an excessive period, such as more than seven years for late payments, collections or judgments. The only exceptions are bankruptcies (10 years) and tax liens (seven years from when they were paid).




Also under this act, information furnishers, such as credit card companies, collection agencies, auto financers or mortgage lenders, may only report to a consumer's credit as long as:




1. They provide complete and accurate information.




2. They must investigate disputed info and must respond within 30 days of notice of a dispute.




3. They must inform consumers of negative info that has been or is about to be placed on their credit report within 30 days.






It's important to be proactive in your own life and credit. Let United Credit Source educate you in the restoration process on how credit works as well as gaining a better understanding of your rights. We want to help you regain control of your finances, so that you can live the best quality life there is to offer.

More Bad news About Americans' Debt

Posted originally at Walletpop.com

Jan 5th 2010 by Martha C. White

For a while, it looked as if Americans were getting a better grip on their out-of-control credit card habits. Unfortunately, new data shows that we seem to be falling off the wagon once again.

According to this article in the Wall Street Journal, the rate of credit card charge-offs rose in November from 10% to 10.6% after declining for the past two months, and delinquencies continued a four-month rise, hitting 6.2% in November. Delinquencies are payments that are 30 days or more past due. Charge-offs are balances that the card company writes off as a loss and gives up on (generally, they sell the debt for pennies on the dollar to a third-party debt collector).

Moody's predicts that the charge-off rate will continue rising and eventually peak in the middle of this year. In other words, it's going to get worse before it gets better.

Even more worrisome is data that shows Americans are paying down less of their collective principal than they were just recently. The payment rate fell nearly a full percentage point in November to 16.42%.

This is bad news for delinquent cardholders individually; it's also bad for the economy as a whole. While experts have recently mentioned some encouraging signs like lower unemployment claim filings and small growth in the manufacturing sector, this recovery still has a long way to go.

High rates of unpaid credit card debt affect both consumer spending ability and consumer confidence. Both of these, in turn, directly affect the unemployment rate, since companies won't hire people to make goods or staff stores if they perceive that spending is under siege.

If this sounds like a vicious cycle, it is. While we here at Walletpop hear on a regular basis from readers who have sworn off credit card balances and stick to buying only what they can pay for at the time, there are obviously many Americans still stuck in a downward spiral of debt. Until enough people can get out from under those crushing bills, this debt is going to drag on the nation's economic recovery.

The Ins and Outs of Debt Collection

Do you know your rights?

The Fair Debt Collection Practices Act of 1977 regulates debt collection companies and how they can contact you about unpaid debts and your rights in the process.

Debt collectors cannot contact consumers at inconvenient times, such as before 8am or after 9pm, unless you give them permission.

If debt collectors contact you about a bill you don't think is yours, you can send them a letter asking for written verification that debt is yours. You have 30 days from the time you are contacted to write them.

If you ignore a debt, it you could ultimately find yourself in litigation to enforce collection should the debt be sizable . In Texas, although there is no wage garnishment, your credit scores can lower and you can be denied new credit. That's the whole point of the credit rating system is to give lenders a risk assessment and let them know how you've handled previous credit.

Some states have laws that license and govern debt collection practices. You can check your state attorney general's office to find out the laws in your state.

The Fair Debt Collection Practices Act prohibits harassing, abusive or profane telephone calls. Under this federal law, no one is allowed to threaten to take your home or have you arrested for not paying a bill. They cannot leave voice mail messages on your home phone with details about your debt or call your job and/or relatives and friends about unpaid bills.

You have every right to negotiate a settlement on a debt you owe. You can do this yourself, but be smart about it, getting everything in writing first. It's a good idea to go through a professional, trustworthy, debt settlement company, such as Elite Debt Management, to protect your interests. Your credit report can still report negatively, and there can be federal tax issues to deal with, so find out all you can before doing this on your own.

Filing for bankruptcy does cease all further collection calls and letters, but it's a major step that will negatively impact your credit report for seven to ten years or longer.

Knowing your rights enables you to handle your debts in the best possible manner. United Credit Source has a Credit Specialist Team on hand to answer your questions and give you advice. We want to help you obtain a better financial lifestyle.

United Credit Source

FINANCIAL PRIMER FOR 2010

Let's face the hard facts. 2009 has not been a banner year. In many respects, it has been the year that should not have been. One of the better aspects of 2009 is the wake-up call we all received: It can happen to any of us at any time. None of are immune unless we are prepared. Now that we're awake, let's pay attention. Some of the lessons gleaned from 2009 can provide our outlook into 2010 and beyond. Our maxim should be the same as the Boy Scout motto: "BE PREPARED." Will it be easy? I very much doubt it. But it could be the only thing to save us when the next hammer falls. How do we prepare, you ask? Let's look at some time tested methods that really work. Here they are:

Examine your goals -
What do you want to accomplish and in what timeframe? Financial issues are, at root, decisions about what is important to us and what is not. How we choose to spend our money should reflect matters which are important to our well being and our future, not whim, or fancy, or things to boost our ego. It's always better to be safe than sorry.

Take control - Set up a spending plan or budget -
Develop a plan. Housing, utilities, food and clothing, transportation, medical expense, and monthly bills, should take the priority positions. Discretionary spending should be at the bottom on the list. It is extremely important to make sure our bills get paid on time.

Increase Savings -
Spend less than you earn and put money aside for the rainy day that will eventually come. Wow, what a concept. I can still my mom and dad's voices reverberating around the inside of my head on this one. This is a great place to put your discretionary spending allowance until you have three (3) to six (6) months living expenses set aside as your reserve.

Pay down debt -
With the credit card rules and the banking industry rush to make as many changes to interest rates it is imperative to reduce debt is all areas of your life. Credit card issuers are raising rates, instituting fees, and reducing credit limits. You cannot afford to max out your credit. It will have a serious impact on your credit score and could leave you without the credit line you thought you had. Credit cards can provide an element of security in bad times, but debt itself is inherently destructive. You will never know true freedom without calling a halt to deficit spending. The more debt you have the less options and leverage you have in case of emergencies.

Develop an emergency plan -
Jobs, and income, can end at any time. Plan for how you will eliminate expenses that allow you to continue to make payment on the basic necessities of life while acquiring your next income opportunity.

Be honest with yourself and family -
If you have been impacted by the recession, admit it and quite trying to live like it passed you by, because you will continue to add debt and considerable stress to your lives. Financial matters are the mumber one (1) cause of family strife.

Focus on the long term -
Don't be short sighted. People can get caught up in the hype and react instead of responding to changing conditions. If you have a long term plan, it should serve you well in good times as well difficult times when they come.

United Credit Source

The Big Bad Wolf of Credit Cards

In The World of Credit There Are Many Predators… And Then There Is "FIRST PREMIER BANKCARD"

First Premier Bank in South Dakota has come out of the closet with a big-time credit card offer for anyone crazy enough to take it - a whopping 79.9% APR (annual percentage [interest] rate. The October, 2009 story unfolded in California when resident Gordon Hageman received an unsolicited credit card offer from First Premier Bank. When he discovered the 79.9% interest rate he quite naturally thought it was a mistake, a misprint. So he called the bank. He was shocked to find out the 79.9 % interest rate was indeed correct. It seems the state of South Dakota repealed the states usury law in 1981 in order to attract Citicorp to their state. Here is the South Dakota State Law on interest charges:

§ 54-3-1.1. Rate of interest set by written agreement--No maximum or usury restriction. Unless a maximum interest rate or charge is specifically established elsewhere in the code, there is no maximum interest rate or charge, or usury rate restriction between or among persons, corporations, limited liability companies, estates, fiduciaries, associations, or any other entities if they establish the interest rate or charge by written agreement. A written agreement includes the contract created by § 54-11-9.

Well, it certainly seems to have worked for First Premier Bank. Instead of taking things to the next level, they chose to go right off the chart. One has to ask the question "why would they do this?" And the answer is obviously "because we can." Greed, apparently has a new king.

I have said this many times before, and it bears repeating, especially now: Credit card companies are not in the business to help consumers; they are in the business to enslave the consumer while enriching themselves. In the world we live in we may need credit from time to time, but we really don't need credit cards. The borrower is slave to the lender and they have made it very easy to enter into servitude. If we refused to use credit cards and operate on cash only, then the credit card industry would either crash and burn or they would be kissing our feet and begging for our business with consumer friendly interest rates, maybe even interest rate wars. Personally , I don't see the latter ever happening, so I vote for crash and burn.

Read Mr. Hageman's entertaining story here:

http://www.americanbankingnews.com/2009/10/15/first-premier-bankcard-offers-customer-79-9-apr-credit-card/

United Credit Source

Tom Johnson

Consumer Wins Home in Foreclosure Proceeding

It may not happen every day but when it does it is a GREAT DAY. Just ask Diane Yano-Horoski and her husband, Greg Horoski. Instead of being kicked out on the street by their mortgage servicing company the judge awarded their home to them free and clear.

Morale of the story: it pays to fight for right. Read the entire story here: http://www.nypost.com/p/news/local/judge_kos_mortgage_to_slap_bank_28ZS1oW8Y58z6gu1AQbWMI#

United Credit Source

CitiBank To The "Rescue"

CitiBank Strikes Again

Most consumers are aware that the credit card vendors are raising their rates, lowering limits, enacting fees, and just outright closing accounts of their card holders before the new law comes into effect in Feb. 2010. Credit card holders must always remember that the credit card vendor will never look out for your interests; only their own. You are their meal ticket and they want you fattened up. This is all about making money off of (or taking from) the consumer and enriching the banks.

Now comes CitiBank with their latest attempt to appear as the white hat good guys riding in on their white horses to offer the card holder a way to reduce their interest rates. By using circular logic they offer you a reduction of the interest rate (that they just jacked up) if you regularly spend more. (I smell a trap at the pass awaiting all who enter there.)

Please read the linked article below and be aware that this is probably just the first of many more schemes and gimmick offerings by the credit card industry to get deeper into your pocket and keep their hand in there longer.

I don't know if I should recommend you take aspirin or oxygen as you read this. But I will say this: BEWARE - THE CONTENT OF THIS ARTICLE COULD BE VERY HARMFUL TO YOUR FINANCIAL HEALTH.

http://www.thestreet.com/story/10630251/1/citigroup-gets-creative-to-boost-cards.html

United Credit Source