Credit Repair - Apex Credit Services Strategies

The below is credited to http://www.infinitecredit.com:

 For most of us, when we get a call or a letter from a collection agency we run away scared. We think that if we tear the letters and throw them in the trash bin that the problem will go away. Worst yet, we think that if we talk to them and explain the dire circumstances that prevented you to pay the bill; the collection agency will understand and walk away.

Unfortunately, life is not that simple and the problem will not go away. How do you deal with them you might ask? This short tutorial will teach you some basic but yet effective tools available in your arsenal.

First and foremost each case is different, so if you are not sure that this strategies are appropriate for you, feel free to ask questions in the forums. There are plenty of members eager to help. We are not attorneys, anything we say should not be construed as legal advice.

Lets begin, collection agencies make their money by collecting on a debt owed to one of their clients. In exchange for collecting the debt, the collection agency receives a percentage of the moneys recouped. So although you might think that if there is an error you can contact XYZ collection agency to correct it, he sad truth is that they do not care to correct any errors. The collection agency wants your money, whether you owe it or not!

They use various tactics to collect the alleged debt, their main tool is the telephone. They will call and harass you until they find a trigger that scares you and then they will use this against you to coerce a payment. Another tool in their arsenal is the collection letters, they will send you letters making threats in hopes that you get scared enough to pay them. Sad enough some of the threats are not really threats, but we understand them to be. A popular one is the following.

Quote:

If you do not pay we will take legal action.

Automatically we assume that by legal action they mean that they will sue us in the court of law. In reality, legal action is any action that it is not illegal.

How do you fight such a formidable foe? Glad you asked that question, before doing anything outlined on this crash course guide; you must keep in mind the statute of limitation on the alleged debt. That statute of limitation varies by state, with that said, if the alleged debt is within your states statute of limitations. That means that you need to decide if you are waking a sleeping giant by disputing and fighting back. Rule of thumb is, if the debt is small “under 1k” then there is no incentive for a OC to sue you and spend more in attorneys fees; than the amount of money they will attempt to collect. However if the amount owed is in the thousands, then poking them in the eyes might get them to turn around and sue you for the alleged debt.

Before you can fight you must learn your rights, the FDCPA outlines the do’s and don’ts for Collection Agencies;

http://www.infinitecredit.com/forums…3747#post13747

The FCRA outlines the way data is to be reported and the responsibilities of data furnishers as well as the responsibilities of Credit Reporting Agencies.

http://www.infinitecredit.com/forums…3745#post13745

I addition to those two, you might want to check your individual state version of the FDCPA. In some states this version of the FDCPA is more stringent than the FDCPA and you might want to file charges under your state guidelines if and when a CA violates your rights.

Now lets begin, you receive a collection call from XYZ collection agency. This is the first time you hear from them, from the first time they contact you, they have 5 days to send you a letter advising you of your rights. If they fail to do they are violating your rights. I will simulate a phone call and the ideal way it should go.

First time they call;

Quote:

Collector: May I speak with Paul SmithYou: This is Paul, how may I help you? Collector: I am calling from XYZ collection agency, calling in reference to a debt owed to ABC Store. You: Could you tell me your name, could you also tell me again what company you work for. “Start a log and write down the information they provide, along with the time and date of the call. Also include the phone number they called you from if available on your caller id.” Collector: “after providing the information requested” As I was saying, there is a balance on a debt do you want to make a payment arrangement? You: Thank you for the call, please send me anything you have in writing. “Immediately after hang up the phone”

Please note that by law they must provide the information requested! Make sure that every time a collection agency calls, you get their information and then tell them to send you anything they have on the account in writing. You want to build a paper trail, do not stay on the phone with them; all they are going to do is aggravate you and push your buttons.

Now a week goes by and you receive the collection notice from XYZ collection agency. DO NOT throw the letter away, save every piece of mail that they send you. First thing you might want to do is to verify if the letter complies with requirements set by the FDCPA “if you are not sure what this is, we can touch on it later”. Afterwards you want to submit a validation request, note that time is of the essence. You can dispute any debt at any time, however under the FDCPA if you dispute the debt within thirty days from first contact; the collection agency must cease collection, until they validate the debt.

So as soon as you get the collection notice, send them a validation request. There are some samples on the board, but if you are not sure what is a validation request, fell free to ask. On your validation request you should submit a limited cease and desist. Basically you will request validation and tell them not to call you at home or at work and anything they want to say. They must put it in writing and send it to you via mail.

The cease and desist is a power tool, but if you are within the statue of limitation it can back fire. Essentially when you send a full cease and decease, the collection agency is not allowed to contact you at all, by any means except to advise you that they are going to sue you. So if you are within SOL, be careful with the cease and desist. However with a limited ceases and desist you are still allowing them to contact you via us mail.

Now tower rat in the AOC archives explains what constitutes proper validation;

TowerRat; Validation and Verification

After this letter the collection agency should not call you anymore, if they do; write the date time and the identifiying information from the collection agency. Every time they call you they are violating your rights. You can use this down the road, make sure that you send the validation request with Return Receipt Requested.

I am planning on doing a series of credit repair tips and guides, visit the site frequently. Also as information and laws change all the time, I might update this guide from time to time. So it does not hurt to check the guide occasionally. This is a work in progress…

Ways to Establish Credit . . .

Bad credit can keep you from buying a home, financing your education, and even from getting a job. This is why it’s so important to build a good credit history.

Starting with your first credit card, everything you do that involves credit becomes part of your credit history. To have a good credit history, you have to use credit responsibly. But what counts as using credit responsibly?

1. Charge only what you can afford to payWhen you get into the habit of charging only what you can afford, it lets future lenders and creditors know that you are a responsible borrower. You’ll find it easier to borrow money and get new credit when you show that you know how to only borrow what you can pay back. Not only that, only charging what you can afford helps you avoid excessive debt.

2. Use only a small amount of the credit you have
Maxing out your credit cards – or even coming close – is one of the most irresponsible ways of using credit. Chances are that you can’t afford to pay off a maxed out credit card balance. Lenders know that borrowers who max out their cards often have difficulty repaying what they’ve borrowed. Staying below 50% of your credit limit is wise, below 30% is best.

3. Start with only one credit card
Many first-time credit card users accumulate a collection of credit cards within their first few years of using credit. Don’t do this. The more credit you have, the more you’ll end up using. Learn how to be responsible with credit before you apply for additional credit cards.

4. Pay your balance in full and on time
If you’re only charging what you can afford to pay, this won’t be a problem. Paying off your balance each month shows that you’re capable of paying bills, something creditors and lenders want to see. Since a large part of your credit score includes timeliness of your payments, paying your balances on time improves your credit.

5. Carry a balance the right way
Having a credit card balance isn’t bad as long as you do it the right way. Make more than the minimum payment each month to pay off your balance as quickly as possible. Avoid making late credit card payments and continue to keep your balance at a reasonable level. If you follow these principles, carrying a balance won’t hurt your credit.

Of course, another thing worth mentioning is our “seasoned tradelines.” This is a fail-safe way of quicky establishing your scores and at a much higher level than via any method mentioned above. In order to consider this further, please contact us at http://www.apexcreditservices.com or 888-727-4818.

Credit Repair - Reject Arbitration

HELP INVESTIGATE THE NATIONAL ARBITRATION FORUM (NAF)
pbland@publicjustice.net

Have you had an award issued against you by the National Arbitration Forum, on a debt you never owed to begin with, after objecting to the arbitration to no avail? Or did you experience NAF favoritism toward credit card companies, against debtors? Your experience could play an important role in an ongoing investigation into the practices of the NAF.

This office is assisting the GIVE ME BACK MY RIGHTS Campaign (www. givemebackmyrights.com) in gathering research. In particular, we are interested in speaking to individuals who have personally experienced situations in which the NAF has allegedly:

entered an arbitration award against a person who was a victim of identity theft, or mistaken identity,
been dishonest to consumers, or
broken its own rules or twisted its rules in another outrageous way.

The Give Me Back My Rights Campaign is working with concerned legislators both in the U.S. Congress and in a number of states about abuses of consumers in mandatory arbitration, and we’ve received a number of questions about the behavior and practices of NAF. We have also received questions from a number of reporters around the country. Also, a number of consumers in different parts of the country are challenging various practices of the NAF, and some lawyers handling these cases are looking for consumers who have been mistreated by NAF to come forward and testify as witnesses in their cases.

If you have a story to tell, and might be willing to share your experience with the media or testify in court, please click here. Please give a BRIEF description of your experience. We will forward the information to the campaign, and you may or may not be contacted to follow up. This is NOT an offer of legal representation; your story will be used to help prove that the NAF is biased in favor of its corporate clients, and hopefully to help others avoid arbitration before the NAF. Your information will not be used without your consent.

pbland@publicjustice.net
_________________
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak, LLC
509 Market Street, 7th Floor
United Mercantile Bank Building
Shreveport, Louisiana 71101
318-221-6444
Fax 318-221-6555

Credit Repair Tips

*1.* Order hard copies of your credit reports from the three major credit sites.

“Equifax”:http://wwww.equifax.com

“Experian”:http://www.experian.com

“TransUnion”:http://www.transunion.com

Hard copies are important, especially when you are beginning your repair, as they are the most accurate reports. Trimerge reports that you purchase on sites can give you a picture of what your file looks like but they can contain inaccuracies that are not on the real files.

In addition to the above reports, I would get a copy of myfico reports, so that you can have a baseline of your fico score and monitor your progress as you go on your repair journey.

“MyFico”:http://www.myfico.com

*2.* Check for discrepancies on your credit files, things to look for;

A- High credit limit, is the high credit limit listed on the account accurate?

B- Balance, is the balance on the trade line accurate?

C- Date opened, is the date the account was opened correct?

D- Payment history, is the information reflected correct? If there are late payments listed on the account, where you late on the months listed or on difference months?

Basically look at anything on the trade line that is out of place and not accurate.

*3.* After going trough your credit report write down all the errors or discrepancies that you found on your Credit file.

*4.* Now send a dispute letter to the credit bureaus, they will have their address listed on the credit report. It is important that you send this dispute via certified mail, return receipt requested. This way you have a record of when the letter was sent and when the credit bureau received it. This information will come in handy later if the credit bureau tries to play the old “I never received a dispute card”. It also helps you establish a time line, from the time they receive the dispute they have 30 days to either confirm the information or correct the information. The way they do this is as follows;

Once the credit bureau receives the dispute, they must contact the creditor in question with the disputed information the creditor has 30 days to answer the dispute. If they fail to do so, then the Credit Bureau must remove the information as they where unable to confirm it and it will be deemed inaccurate. Remember they are not supposed to have inaccurate information on their files.

Please write your own letter but here is an example;

Dear Repository:

This letter is a formal complaint that you appear to be reporting inaccurate and incomplete credit information.

The information referenced below needs to be investigated. If indeed the information you are reporting is found to be in error or you do not receive a timely answer from the data furnisher the item must be deleted from the report as soon as possible:

The account(s) which are in question are as follows:

*Account name* *Account Number* *Reason*

The listed items are completely inaccurate and incomplete, and is a very serious error in reporting. Please cure or delete this misleading information.

Under federal law, you have thirty (30) days to complete your investigation.

Sincerely,

*5.* After the thirty days have passed, look at your files. Did the credit bureau correct the inaccurate information? Did they delete the trade line, was the trade line updated in any way shape or form. If the answer is no to the above questions. Follow up by sending another certified letter, this time request that they remove the inaccurate information since they did not receive a response from the original creditor. Attach a copy of the first dispute letter and attach a copy of the certified return receipt.

*6.* If the credit bureau fails to remedy or remove the inaccurate information, then you have the necessary paper trail to pursue legal action against them. This however will not be covered on this tutorial.

Please keep in mind that each case is different, there are several things to consider prior to attempting to correct your credit file. Are the accounts being disputed out of the statue of limitations? Each State has a different statue of limitations, that allows a creditor to sue the consumer in the court of law for notes or monies owed to them. Lets say that the statue of limitations is 4 year on your state and you allegedly owe $3000 on a credit card; you stopped paying that credit card 3 years ago and the credit card company never took you to court or sued you for the money. The last thing you might want to do is wake up the sleeping giant. So please keep in mind that there are dangers to cleaning your file prior to expiration of the statue of limitation.

Note that statue of limitation and reporting limitation for credit bureaus are two different things, credit bureaus must delete negative information after 7 years of inactivity, bankruptcies can remain up to 10 years. Good luck on your journey.

Credit Repair Tips

The following information below was originated and can be located on http://www.infinitecredit.net

 *1.* Order hard copies of your credit reports from the three major credit sites.

“Equifax”:http://wwww.equifax.com

“Experian”:http://www.experian.com

“TransUnion”:http://www.transunion.com

Hard copies are important, especially when you are beginning your repair, as they are the most accurate reports. Trimerge reports that you purchase on sites can give you a picture of what your file looks like but they can contain inaccuracies that are not on the real files.

In addition to the above reports, I would get a copy of myfico reports, so that you can have a baseline of your fico score and monitor your progress as you go on your repair journey.

“MyFico”:http://www.myfico.com

*2.* Check for discrepancies on your credit files, things to look for;

A- High credit limit, is the high credit limit listed on the account accurate?

B- Balance, is the balance on the trade line accurate?

C- Date opened, is the date the account was opened correct?

D- Payment history, is the information reflected correct? If there are late payments listed on the account, where you late on the months listed or on difference months?

Basically look at anything on the trade line that is out of place and not accurate.

*3.* After going trough your credit report write down all the errors or discrepancies that you found on your Credit file.

*4.* Now send a dispute letter to the credit bureaus, they will have their address listed on the credit report. It is important that you send this dispute via certified mail, return receipt requested. This way you have a record of when the letter was sent and when the credit bureau received it. This information will come in handy later if the credit bureau tries to play the old “I never received a dispute card”. It also helps you establish a time line, from the time they receive the dispute they have 30 days to either confirm the information or correct the information. The way they do this is as follows;

Once the credit bureau receives the dispute, they must contact the creditor in question with the disputed information the creditor has 30 days to answer the dispute. If they fail to do so, then the Credit Bureau must remove the information as they where unable to confirm it and it will be deemed inaccurate. Remember they are not supposed to have inaccurate information on their files.

Please write your own letter but here is an example;

Dear Repository:

This letter is a formal complaint that you appear to be reporting inaccurate and incomplete credit information.

The information referenced below needs to be investigated. If indeed the information you are reporting is found to be in error or you do not receive a timely answer from the data furnisher the item must be deleted from the report as soon as possible:

The account(s) which are in question are as follows:

*Account name* *Account Number* *Reason*

The listed items are completely inaccurate and incomplete, and is a very serious error in reporting. Please cure or delete this misleading information.

Under federal law, you have thirty (30) days to complete your investigation.

Sincerely,

*5.* After the thirty days have passed, look at your files. Did the credit bureau correct the inaccurate information? Did they delete the trade line, was the trade line updated in any way shape or form. If the answer is no to the above questions. Follow up by sending another certified letter, this time request that they remove the inaccurate information since they did not receive a response from the original creditor. Attach a copy of the first dispute letter and attach a copy of the certified return receipt.

*6.* If the credit bureau fails to remedy or remove the inaccurate information, then you have the necessary paper trail to pursue legal action against them. This however will not be covered on this tutorial.

Please keep in mind that each case is different, there are several things to consider prior to attempting to correct your credit file. Are the accounts being disputed out of the statue of limitations? Each State has a different statue of limitations, that allows a creditor to sue the consumer in the court of law for notes or monies owed to them. Lets say that the statue of limitations is 4 year on your state and you allegedly owe $3000 on a credit card; you stopped paying that credit card 3 years ago and the credit card company never took you to court or sued you for the money. The last thing you might want to do is wake up the sleeping giant. So please keep in mind that there are dangers to cleaning your file prior to expiration of the statue of limitation.

Note that statue of limitation and reporting limitation for credit bureaus are two different things, credit bureaus must delete negative information after 7 years of inactivity, bankruptcies can remain up to 10 years. Good luck on your journey.

Credit Repair - Proper Debt Validation

The following information is provided by Craig Jordan, a prominent consumer attorney located in Texas. Mr. Jordan is a skilled trial lawyer and a pre-imminent scholar in the fields of FCRA/FDCPA litigation.

Warybuyer Guide to Disputing a Debt

You can achieve two important things by disputing a debt with a debt collector. First, if you dispute the debt within the first 30 days after the debt collector contacts you, you can stop the debt collector from continuing to try to collect the debt until he can verify that you actually owe the money. Second, you can force the debt collector to disclose to any credit reporting agency he reports to that your debt is disputed. This is valuable because many credit scoring models disregard or discount disputed debts.

Debt Collectors: The First 30 Days

The best time to dispute a debt is during the first 30 days after you receive first letter from the debt collector. This period is known as the verification period. During this period, you do not have to have a valid dispute to challenge the debt. It is permissible for you to merely ask the debt collector to verify that you actually owe the debt. This can be a powerful request, because it essentially puts the burden of proof on the debt collector. Until the debt collector can produce verification of the debt, he can take no further action to collect from you.

Of course, if you have a bona fide dispute over the debt, be sure to assert it in your verification request. Merely requesting verification does not require the debt collector to report the debt as disputed to a credit reporting agency. My sample Letter Requesting Verification of Debt shows you how to make the verification request, both with and without a dispute.Debt Collectors: Any Time

Even if you miss the first 30 day period, it still is a good idea to dispute a debt if you can. You can still force the debt collector to report your debt as disputed. Do not make up a frivolous dispute, because you will undermine any future lawsuit you may file if you do. My sample Letter to Debt Collector Disputing a Debt shows how to dispute a debt with a debt collector.

If you are a Texas resident, you have additional dispute rights that are not available under the federal Act. You may dispute a debt at any time by giving the debt collector written notice of your dispute. Upon receipt of the notice, the debt collector must stop all collection efforts until it investigates to determine the actual amount of the debt, if any.

No later than 30 days after the debt collector receives your dispute, it must respond in writing either denying the inaccuracy, admitting the inaccuracy, or requesting more time for the investigation. If it admits the inaccuracy, it must update its records and send a notice of inaccuracy and a copy of the corrected information to each person to whom it gave a report of the inaccurate information. If it requests more time, it must correct its records in accordance with your request and give notice of the correction to each person to whom it reported the disputed information. The debt collector may resume collection efforts only after its investigation is completed and it has determined the information to be accurate.

Note: Although the Texas law allows you to stop collection efforts with a dispute at any time, it does require you to actually dispute the debt. You cannot simply request verification of the debt as you can under federal law. Be careful to make only good faith disputes, otherwise you will lose credibility and have a very difficult time enforcing your rights in court if you have to later.

Disputing Debts with Creditors

Federal debt collection law doesn’t apply to creditors, so you don’t have the same rights when you dispute debts with them. However, you do have dispute rights under other federal and state laws with certain kinds of creditors (See the FACTA amendments to the FCRA and the FCBA).

For credit card companies, see my “Warybuyer Guide to Credit Card Errors and Chargebacks” for more information about disputing billing errors and other improper charges.

For all creditors, Texas law prohibits representing that a person is willfully refusing to pay a debt when the person has disputed the debt in writing. While the Texas law does not specifically address credit reporting the way the federal law does, as a practical matter, a creditor who reports to a credit reporting agency that you have failed to pay a debt after you have disputed the debt is almost always going to be in violation of this law. The Texas law is also broader than the federal law. It prohibits making this representation to anyone, not just a credit reporting agency. Accordingly, a creditor who sells a debt to a third party while wrongfully representing that you are refusing to pay may violate this law.

Unfortunately, there are unresolved legal issues involving the relationship of the federal Fair Credit Reporting Act and the Texas Debt Collection Act that make it hard to hold a creditor responsible for violating this law in its reports to credit reporting agencies, but it is still worth sending the dispute letter, as a creditor may comply to avoid the possibility that federal law will be interpreted to permit the enforcement of this state law requirement, and the letter will prevent the creditor from misrepresenting your debt to third parties other than credit reporting agencies.

Credit Repair - FCRA/FDCPA Attorney’s

Often times, credit repair efforts give rise to actionable claims arising under the CCPA. When such claims do avail themselves, consult attorney’s from the following link:

http://www.naca.net/

Bad credit is problematic and costly.   However, help is at your fingertips if you’re diligent in who you seek.  There are things Apex Credit Services, LLC can offer in addition to the below however, here are some general tips to get the ball rolling on your own:

1. Stop using your credit cards

In a bad credit situation, one of the worst things you can do is continue accumulating debt by making credit card purchases. Put your credit cards away until you have more control of the situation.  It hurts your utilization and further damages your scores.

2. Get a copy of your credit report

You can’t begin repairing your credit until you know exactly what you need to work on. Obtain a copy of your credit report from each of the three major credit bureaus to find out which accounts need work and which are just fine. 

3. Clean up your credit report.

If your credit report contains incorrect, incomplete or obsolete information, you have the right to have it removed. Your credit report will include information about disputing inaccurate information with the credit bureaus.  Just because items belong to you do not mean that they are reporting accurately.  Apex Credit Services, LLC can assist you in determining if this is the issue.

4. Get current on delinquent accounts

Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit in some cases.  However, paying off very old collections and charge-off can bring the date of status to the date of payment.  This can actually hurt your scores.  Again, Apex Credit Services, LLC can assist it making this determination.

5. Don’t put in any more credit applications

As long as your credit is in repair mode, you should avoid making any more applications for credit. It’s likely that you’ll get turned down for credit and the applications will only decrease your credit score.  You can also remove inquiries from Equifax and Trans Union.  Apex Credit Services, LLC can tell you how to do so.

6. Keep accounts with balances open

You might be tempted to close out credit card accounts that have become delinquent, but wait. Before you close any account make sure it won’t negatively affect your credit.  Generally, closing accounts will reduce your avaliable credit and negate or reduce your history.  Don’t do this.

7. Call your creditors

Right now they’re certainly the last people you want to talk to, but you’d be surprised at the help you might receive. Talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet.  Also, it is typically a good idea to request validation from debt collectors to cut the chaff from the wheat.

8. Pay off your debts

You will have to start paying off your debts to improve your credit situation.  Certainly, you must pay off recent unpaid charge-offs insofar as they report every month and greatly damage your scores.  Older derogatory items should be assessed thereafter.

9. Get professional help

Resources, like Apex Credit Services, LLC, are available to assist you. If you are overwhelmed by your credit situation, seek professional assistance. You can locate us at http://www.apexcreditservices.com

10. Be patient

Your credit wasn’t damaged overnight, so don’t expect it to improve in that amount of time. Continue paying your debts, follow our instructions, and we can together get the job done.

Apex Credit Services, LLC recommends Infinitecredit

Apex Credit Services, LLC recommends visiting http://www.infinitecredit.com for referencing FCRA/FDCPA information as it pertains to debt collection and credit repair.  An excellent source for all information above.