Debt Elimination Success Seminar
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Section 1
A Look at Debt
History of Debt
Credit Card History
Current State of Debt
How You Got Into Debt
Good Debt Bad Debt
Business vs. Personal Debt
Section 2 Dealing With Your Money
The Two Step Plan
Doing The Two-Step
Step One
Step Two
The Paths Out of Debt
1- Create a Debt Payment Plan
2- Neogtiate Better Rates & Terms
a.Consolidation Loans
b.Consumer Credit Counseling Services
3- Negotiate Lump-Sum Settlements
4- Bankruptcy
5- The Easy Way
6- Win $1,000,000
Living Debt-Free
Manage Your Money
Make More Money
Save Money
SameMoney-MoreFun
Stay Debt-Free
You as a Business
Section 3 Dealing With Your Creditors
Alerts/Scams
The Credit Industry
Credit Industry
The Fine Print
The Secondary Debt Market
The Debt Collection Process
Original Creditor
The Charge-Off
Collection Agency
Legal Problems
Dirty Creditor Tricks
Dealing with Debt Collectors
Dealing with Debt Collectors
Statute of Limitations
Cease and Desist Letter
Section 4
The Credit Report
The Credit Report
Credit Score
Credit Repair
Section 5
Dealing With Yourself
The Critical Factor
The Art of Prosperity
The End of Failure
Prosperity Coaching
Section 6
Kids and Money
Kids and Money
How to Pay for College
Section 7
Debt Information
Bookstore
Debt Facts
Radio Show
Resources
About Us
Privacy Policy
Site Map
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These third parties buy old bad debts in bulk for pennies on the dollar and then contact you trying to collect. Often these debts are several years old and the original credit has viewed this account as “uncollectable” and sold it to them for next to nothing.
Don’t think that these third parties aren’t going to try to make your pay and that they aren’t good at. They have some of the most aggressive debt collectors and they are also banking on that your financial situation has improved over the past few years and you just want to get this debt behind you. There is some big money in this industry. Assets Acceptance does nothing but buy old bad debts and them try to collection on them just reporting their Second Quarter net earning for 2004 at a whooping 11.6 million! All of those are bad debts banks gave up on that consumers paid. 11.6 million for one quarter is some serious money especially for debts that were “given up on”.
Now I understand that these are business and they are out to make money but here’s where is becomes illegal. Many of these third party companies are now going public and want their companies to appear to be more profitable than they really are. Asset Acceptance goes public on the NASDAQ on August 3, 2004.
Here’s why this affects the average consumer.
They want their companies to appear to have as much value a possible, as anyone selling something does. BUT they are reporting old bad debts to the Credit Bureaus with Brand New Dates of Last Activity (DLA’S). As if there has been recent consumer activity on the accounts, when in fact nothing has happened for years. Not only does this mean they can stay on another 7 years if a consumer does not contest this trade line. It also significantly drops the credit score, as much as 50 points and can prevent you from getting a loan and drive interest rates up on your existing credit cards.
Now I can say from things that have been coming across my desk that it does appear that they have first done with this Experian. With purchased debt it’s now 7 out 10 files with purchased debt have this new false dates of last activity. This is illegal and a violation under your rights. Experian is the worst one with the 7 out of 10. Transunion has about 50/50 and Equifax seems to be on the ball since they really don’t have as many. But its painfully clear this trend of illegal activity has stemmed from Experian.
If you review your credit reports and find you have been a victim of this there are some steps you need to immediately take.
- File an FTC (Federal Trade Commission) complaint against the third party debt purchasers and the credit bureau that has allowed them to report this. Also file the same complains with your State’s Attorney General’s office. Here's a link to file an FTC complaint.
- Send written correspondence to the purchasing company stating you have reviewed your report, discovered the false date of last activity, filed complaints against them with the FTC and your Attorney Generals Office for your state and know what they have done to you. Find a sample letter here.
- Contract the credit bureaus(s) in writing disputing this false DLA and requesting that this records is suppressed until the correct information can be given or the trade line removed.
However if the proper authorities are not aware of this and individuals alerting them then how can they help you. The FTC is really good about looking into these claims and doing something about it. Your states Attorney Generals office is as well. FTC regularly fines the credit bureaus and debt collectors. They also make sure that your rights are not being violated. The FTC website is a wonderful resource for the average consumer*. Your hard-earned tax dollars pay for this and they are set up to protect consumers so you should never hesitate to contact them over these types of issues
If you have been a victim or someone you know has its important that you take these steps to correct your credit report. No one is going to do this for you and you are going to have to take a stand for yourself and control of the situation. In the past you might have made mistakes or gone thru a difficult time period but it does not give these companies the right to violate your rights.
*Recent FTC claims and actions taken on behalf of the average consumer.
Performance Capital Management, Inc.
If you have been a victim of a collection agency that has changed the date of activity on one of your accounts or have had this activity threatened for should file a complaint with the FTC and use this letter to complain directly to the offender.
The Credit Report
Credit Score
Credit Repair
Your Free Credit Report
The History of the Credit Report
Credit Report Tips
Credit Repair Scams
Credit and Your Career
Consumer Alerts for D.C. Credit Services and Camco
Some collection agencies has started reporting old debt as new. Find out more here and here's a letter that you can use to file a complaint if this has happened to you.
Read the transcript of Andrea Villarreal from Better Scores Better Rates’ "I Hate Debt" radio show interview.
Improving Your Credit Score 1
Improving Your Credit Score 2
Listen to Andrea R. Villarreal from Better Scores Better Rates’ “I Hate Debt” radio show interview.
Segment 1
Segment 2
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