Free Credit Scores Are More Available To Consumers

January 18, 2011

FREE CREDIT SCORES ARE MORE AVAILABLE TO CONSUMERS

In the past, consumers had the right to get a free credit report, but not a free credit score.  The actual credit score had been kept hidden by the credit bureaus unless you were willing to pay up to $15.00 just to see your score.  The credit bureaus made millions of dollars from this hidden score over the year.  However, this has now changed (in some cases), because of a new law which took effect January 1, 2011.

The new law requires credit card issuers and other lenders to provide many applicants with the reason why they got the interest rate which was assigned by the creditor.  This rule applies to anyone who is assigned an interest rate higher than the best rate offered to other consumers. (So if you have A1 credit, the new law may not help you obtain a free score).

Most creditors will comply with this new law by providing fee access to your FICO scores.
The FICO score is the main indicator of your creditworthiness, and is principally utilized by lender’s to set your interest rate or deny you credit.

The new law is expected to result in millions of people receiving their FICO scores from creditors.  However it is important to note that you will NOT receive a free credit score if you are turned down entirely for a new credit card or other loan. Only if you are granted credit and provided with a higher interest rate, will you be entitled to the free score.

FICO scores range from 300 to 850.  It is critical to know your score and increase your score, because the higher your score, the lower your interest rate and the higher your ability to get offered credit at all.

The new law, which is related to the Fair and Accurate Credit Transaction Act of 2003, is in effect immediately.  So be sure to exercise your right to a free credit score from now on if you apply for credit and are charged an interest rate which is higher than anyone with A1 credit.  If any lender fails to provide you with your free report, you should immediately file a complaint with your State’s attorney general office or contact an experienced consumer protection attorney.  You can find one at www.naca.net

Michigan Stop Collection Attorney

December 28, 2010

Michigan Stop Collection Attorney

When you find yourself the victim of deceptive practices from a collection agency, you may need to hire the services of an experienced Michigan Stop Collection Attorney. Since many consumers are not aware of the laws regarding debt collection practices, they are often harassed and taken advantage of by unscrupulous debt collectors.  It doesn’t have to be this way, when you know the laws that debt collectors must follow, you can feel more in control of the debt you have.

Some of the laws regarding The Fair Debt Collection Practices Act, as they apply to a creditor when they are COMMUNICATING WITH A PERSON OTHER THAN THE DEBTOR, (like your relatives or neighbors), for purposes to discover where the debtor is located are:

1. The creditor must say who they are, and advise that they are attempting to correct or confirm that the person lives there. If requested, they must also tell who their employer is.

2. They cannot disclose to the third party that the person owes a debt.

3. They cannot talk to the person more than once, unless they believe that the information garnered earlier was incomplete, and that the person now has additional information regarding the debtor.

4. They cannot try to communicate via post card.

5. The cannot use symbols or language that would show that they are in the business of debt collection, or that the communication has to do with a debt collection.

6. When the debt collector is aware that the consumer is represented by an attorney concerning the debt, and knows how to contact the attorney, they cannot talk to anyone but the attorney, unless the creditor gets no response from the attorney.

A debt collector cannot communicate with a consumer in relation to the collection of a debt without using the magic words: “this a communication from a debt collector” and

“this is an attempt to collect a debt” .

A debt collector must also not try to communicate with a debtor when it is not convenient for the consumer. They also cannot call the consumers work place if they are notified or aware that the consumer cannot take calls at work.

If a consumer advises the debt collector in writing that they will not pay a debt, or that they want the collector to stop communication, the debt collector must do so unless they are either telling the consumer that they have stopped collection efforts, or that they are notifying the consumer that they are taking additional actions like filing a lawsuit. If they do not follow these laws, then you will need to hire a Michigan Stop Collection Attorney. They have the knowledge and experience required to make the harassment and abuse stop, and make the people who break the laws pay for what they have done.

There is no reason to allow yourself to be threatened and harassed by collection agencies, when there are laws in place to stop this sort of behavior. Consumers can often feel overwhelmed when they are called day and night by creditors, and may not know what they can do. It is at times like this, that a Michigan Stop Collection Attorney can fight for your rights, and stop the incessant harassment.

Michigan Debt Collection Laws

December 2, 2010

Michigan Debt Collection Laws

If you find yourself mired in debt, it helps when you know the Michigan Debt Collection Laws that exist to protect you. Many times, phone calls from debt collectors are more than simply aggravating. Debt collectors have resorted to sleazy tactics to try to collect money they are allegedly owed by consumers. Due to this problem, legislators know about these issues, and they created the federal Fair Debt Collection Practices Act.

Michigan also has statutes that relate to debt collection abuses. Federal Debt Collection laws are better known and used than the Michigan statutes are. There are several reasons for this. The first reason is that private right of action remedies aren’t as fruitful under state laws. Statutory damages under federal law are maxed out at of $1,000, whereas Michigan state collection laws are between $50 and $150 depending on whether the debt collector engaged in willful conduct. Another reason is that the federal laws are more detailed and are supported by extensive case law which interprets them. Moreover, federal judges are generally more knowledgeable about the debt collection laws than state judges, and may be more sympathetic to consumers.

Accordingly, most consumers who have Fair Debt Collection Practices cases, and who are represented by attorneys, litigate their cases in federal court. Fair Debt Collection Practices cases may be brought by consumer or by a lawyer. FDCPA cases may be brought as a counter claim in a creditor or debt collector suit against a consumer, or by themselves. Creditors and debt collectors often seek to obtain a “set off” in the lawsuit, which is a reduction in the amount of the damages available to the consumer. This reduction may be valid where the debt collector or creditor can show that the amount owed was valid and owing. However, no matter where the suit is filed and by whom, the vast majority of debt collection cases are resolved with an out-of-court settlement.

The Michigan Debt Collection Laws, however, contain some protection which is not afforded under the FDCPA. The Michigan debt collection laws allow actions against creditors in some cases. Under the federal statutes, there is no relief for actions by creditors, regardless of how deceptive, unfair, or crazy they are. The few exceptions are if the creditor tried to collect on debts using a different name, or if a debt was already in default when the creditor was assigned the debt.

People that are regulated under the Michigan Collection Practices Act are people/companies such as a bank that is state or federally chartered when collecting its own claim, a trust company collecting its own claim, a business licensed by the state under a regulatory act, by which collection activity is regulated, and many others.

Generally, a debt collector cannot commit one or more of the following acts:

1. They cannot call before 8 a.m. or after 9 p.m.

2. They can contact neighbors or relatives ONLY to get your address or location information

3. They cannot call to your place of employment if they know or have been advised you cannot receive calls at work

4. They cannot communicate with you in a deceptive or misleading manner, like using attorney stationary or credit bureau if the person
is not an attorney or a credit bureau, and if they are, they must tell you that they work for the collection department of a credit
bureau.

5. They cannot use forms that make them appear to look like the judicial process.

6. They cannot use printed forms or seals of a government agency or instrumentality.

7. The cannot use forms that can make debtors believe they have official or judicial sanction.

8. They cannot make misleading, inaccurate, false, or deceptive statements or claims when communicating with a debtor, or hiding or not
revealing why they are communicating with them, when it has to do with a debt.

9. They cannot threaten legal action if they do not intent to take legal action.

10. They cannot lie about your legal rights.

In sum, this is a partial list of potential violations. There are also other regulations that must be adhered to in order for the creditors to be on the right side of the law in regards to Michigan Debt Collection Laws.

Sue Debt Collectors Michigan

November 2, 2010

If you find yourself continually being called and harassed, and you are a resident of the state of Michigan, you may find yourself needing to sue debt collectors in Michigan. You have rights under the Fair Debt Collection Practices Act, and if you are being harassed, you need to be aware of these rights.

Many times, consumers are oblivious to the fact that there are laws out there that are designed to shelter them from debt collectors who do not follow the laws, as well as unscrupulous creditors who prey on the naïve, ruining consumer’s credit reports in the process. These types of things go on more often than people think, and you do not have to stand by and allow it to happen to you. By getting an attorney with expert knowledge about debt collection practices, and the vast experience necessary to use these laws that protect you from people that break the law, your good credit and reputation can be upheld.

When you find yourself immersed in debt, and receiving never-ending, threatening phone calls, your life can feel as if it is out of your control. You may feel like you have no options, and that your credit will be forever ruined. When you know the laws regarding fair debt collection practices, you will realize that you are in control of your financial situation.

Debts that are covered under the Fair Debt Collection Practices Act are debts that are personal, and household debts. This can be debts owed for medical expenses, purchasing a car, or for credit cards.

A person who is collecting money may only get in touch with you via mail, telephone, or in person. They cannot contact you at a place or time that is not reasonable. If the debt collector knows that cannot receive phone calls at work, they cannot call you there. If they do call your place of employment under these circumstances, this is harassment, and you may need to sue debt collectors Michigan.

If you send a written letter to the collection agency, advising them to stop contacting you, by law they have to oblige. When they get the letter, they can only talk to you to insure you that they will no longer be in contact. They can also contact you if they have decided to take a certain action in regards to your alleged debt.

The only time a debt collector can tell third parties about your debt, is if they are attempting to discover where you live or work. If you have hired the services of an attorney, they can contact them as well. Most of the time, it is unacceptable for a debt collector to tell others anything about your account or the alleged debt..

When a debt collector contacts you, they must identify themselves as a debt collector. They also must provide you with a statement that says that they are collecting a debt. After their initial contact with you, they have to send you a notice about the amount of the debt owed, and provide information about the original creditor within five days.

If you send the debt collector a letter within 30 days of first contact, telling the collection agency that you dispute the debt, they can no longer attempt to collect the debt. However, if you are sent proof that you owe a debt, (this is called validation), like a bill or invoice, they can begin collection attempts again. In sum, if you feel that a debt collector has violated your rights, you may need to hire an experienced attorney to sue debt collectors in Michigan.