When Collection Agencies Attack

When Collection Agencies Attack!How to Protect Yourself from Harassment

It is 10:00 pm, you are getting ready for bed after a long day of work, dinner, homework, and finally getting the kids to sleep.  The phone rings, you answer, and the voice you hear on the other line immediately causes your blood pressure to spike and your pulse to race.

Does this story sound familiar? For many Americans calls from collection agencies and creditors is an all too familiar burden.  With unemployment rates soaring, the current state of the economy, and the rising expense of every day living you may find yourself in the uncomfortable and very stressful situation of being unable to make ends meet.  However, just because you cannot afford to pay your past collection debt right now does not mean that you have to endure these harassing phone calls.  You still have the right to be treated with respect!

The good news is that the Federal Trade Commission, most States, and the Fair Debt Collection Act (FDCA) can all help to protect you from collection agency/creditor harassment.  The FDCA has very clear rules which regulate what debt collectors can and cannot do. For example, according to the FDCA, a creditor cannot:

1.  Threaten violence or threaten to harm you and/or your family in any way. 2.  Use obscene/profane language. 3.  Repeatedly use the telephone to annoy a consumer. 4.  Make false statements such as -falsely claiming they are attorneys or government representatives -falsely claim that you have committed a crime -misrepresent the amount you owe 5.  Say that you will be arrested if you do not pay your debt. -Note: There is no debtor’s prison in the United States! 6.  Call your employer. 7.  Call you before 8:00 AM or after 9:00 PM.

So, what is the secret to stopping collection calls?  There are actually several options available to you.  Here are a few:

1.  Negotiate and settle the debt. -Once an account is paid the collection calls will, generally, stop.  However, it is very, very important to have a debt negotiations specialist (like HOPE) assist you while settling your old debt to insure that you receive the lowest settlement possible, to be sure that your credit report is updated properly to show a zero balance on your settled account, and to hold the creditor responsible to keeping his/her word and not changing the settlement terms in the middle of your negotiations process.

2.  Request for the calls to stop.

-If you simply are not financially ready or able to settle out your old debt at this time you still have rights! Many times simply mentioning the Fair Debt Collection Act will stop a creditor’s calls. Also, when a creditor calls you can:

a. Ask the caller to identify themselves. b. Ask him/her to provide you with their agency’s address. c. Send a certified letter to the agency asking them to stop calling.

Now, it is important to remember that while you can legally stop collection phone calls, just because the calls stop does not mean that you no longer owe the debt.  Whenever you are ready to deal with your past debt and begin working to restore your credit scores we invite you to give HOPE a call.  Our caring credit specialists can provide you with a detailed analysis of your current credit report, show you how the HOPE Program can help you to address any negative accounts on your report and work to help you achieve the healthy credit scores you desire to have.

There is truly no such thing as a hopeless situation!  HOPE has helped clients with as many as 86 collection accounts and hundreds of thousands of dollars in debt to turn their credit situation around and become homeowners!  In fact, HOPE has had over 70 graduates in the past 4 months to complete our program with credit scores healthy enough to purchase a home!  If you would like to schedule a personal credit analysis, or just learn more about the awesome membership benefits offered through HOPE, please give us a call today at 704-499-9696.  We can’t wait to hear from you!

Your Tax Refund Could Equal Healthy Credit If Invested Wisely!

Every year at tax refund time we have many clients wisely choose to  invest part of their tax refund check towards achieving a healthy credit report. Wouldn't you love for 2011 to be the year when you finally reach the higher credit scores you desire? Wouldn't it be wonderful if 2011 was the year when you were finally able to stop those pesky collection calls and possibly even become a homeowner? HOPE would love the opportunity to help you reach your goals! You can join the ranks of the 70+ HOPE graduates who have completed the program with credit scores healthy enough to purchase a home in just the last 4 months! Call or email us today to schedule your own personal, no obligation credit analysis with one of our credit experts to see if the HOPE Program is right for you. We can't wait to hear from you soon!

New Year's Resolution Contest!

What is your New Year's Resolution for 2011? Do you want to have clean credit or pay off your credit cards? Do you want to finally put an end to those pesky collection calls?  Maybe you want to become a homeowner and stop throwing away money on rent every month. Whatever your goal, HOPE wants to know! HOPE is sponsoring a fun contest for you to share your New Year's resolutions and maybe even win a fabulous prize! Simply click here to tell us your resolutions for the upcoming year. One lucky person will win a FREE, personalized credit analysis with a HOPE credit specialist who will help show you how achieving healthier credit can become a reality for you in 2011!  We can't wait to hear about your goals for the new year!

Credit Myths Exposed, Part 2

Check out our article in the December issue of At Home Magazine! You can pick up a copy of At Home Magazine at your local Harris Teeter, BP gas station, or Lowes Food Store as well.

Credit Myths Exposed! Part 2 By Michelle Black

Last month we discussed 3 very common credit myths and the impact they can have upon your credit report.  Since there are so many credit myths, and since this is such an important subject, we will continue our article this month on the same theme.  Misconceptions about credit and following bad advice can damage your credit score and could even cost you thousands of dollars.  We encourage you to educate yourself regarding credit, take control of your financial future, and don’t let yourself fall victim to any the common credit myths listed below.

Credit Myth #1:  I shouldn’t check my credit too often because too many inquiries can lower my credit score.

The Truth:  You can personally check your credit report with no negative impact.  You are even entitled to a free credit report every year at www.annualcreditreport.com.  This is called a “soft” credit pull.  A “hard” credit pull happens when a lender pulls your credit to see if you qualify for a loan.  “Soft” pulls do not affect your credit score; however, “hard” pulls typically cost you 1-5 points and affect your credit score for approximately 6 months.  So, while it is fine to check your own credit report often (HOPE recommends checking your credit 1-2 times per year), it can damage your score if your credit is pulled by a lender too often.

Credit Myth #2:  One late payment won’t hurt my credit score.

The Truth:  Payment history is actually the #1 factor used by the credit bureaus to determine your credit scores.  Late payments can have a huge impact upon your credit scores.  To give you an example, several years ago we had a HOPE client whom we had helped to clean up his credit report to the point where he could qualify for a great interest rate on his home loan.  He was moving to North Carolina at the time.  During the busyness of moving he forgot to make a $15 credit card payment.  When his credit report was pulled later that month for his mortgage application his scores had dropped over 100 points!  Thankfully, we were able to walk him through talking to his credit card company in order to request that the late payment date be removed due to the circumstances.  Once the late was removed his scores recovered and he was still able to purchase his home.

Credit Myth #3:  Once a collection account is paid the account will be erased from my credit report.

The Truth:  Paying a collection account won’t automatically make the red mark on your credit report go away.  In fact, a paid collection account can remain on your credit report for up to 7 years.  Often times the creditor never bothers to update your credit report to reflect a $0 balance after receiving payment for a collection account.  It is always best to use a professional debt negotiator, like HOPE, to make sure that your paid collection accounts are updated on your credit report properly and promptly.

Credit Myth #4:  It’s best to work on cleaning my own credit report because all credit repair companies are scams.

The Truth:  “Credit repair” has a bad name, for a good reason.  Most credit repair programs are incomplete and, while they may help improve your credit report somewhat, they almost never help you to achieve a completely healthy credit status.  It’s always best to work with a credit education program like HOPE which provides negotiations and personal credit advice in addition to the dispute services provided by your average “credit repair” company.

Also, everyone has the legal right to work on their own credit report.  If you encounter a company that tries to misinform you regarding your rights, you should run the other way!  Still, please keep in mind that while you are legally able to work on your own credit report it is usually best to have a professional to assist you when cleaning up past credit issues.  You are legally allowed to represent yourself in a court of law as well; however, most of us would prefer to have an attorney represent us in order to ensure we receive the best result possible.  Repairing your credit follows the same principle.

If you have credit issues or low credit scores which are keeping you from achieving your goals of homeownership or financial freedom please give us a call!  HOPE can proudly announce that we have had over 70 graduates in the past 4 months alone to complete our program with credit scores healthy enough to qualify for a home loan!  You can overcome the credit problems you are facing too and we would love to help you achieve a wonderful success story of your own!  Please visit us online at www.HOPE4USA.com or call 704-499-9696 today for more information or to schedule your personal credit analysis with a HOPE Credit Specialist. We can’t wait to hear from you!

Give the Gift of Clean Credit!

This year you can give your friends and family a Christmas gift that can dramatically improve their quality of life - the gift of clean credit! At HOPE we recommend checking your credit report at least once per year.  For only $30 you or your loved one can have a full, detailed, professional credit analysis with a HOPE Credit Specialist including personalized tips on how to improve his/her credit report.  Call or email today to order your gift certificates for this Christmas season! We ho-ho-hope to hear from you soon! *Special Offer: Buy $100 worth of gift certificates during December and receive a $25 gift certificate for free!