Your Creditors Aren’t Judging You. They’re Running a Model — So Should You.
Called your card company before missing a payment and got told no? Here’s the word CFPB’s own advice leaves out — and what to ask instead.
creditors
Parent Died With No Will and No Instructions: The Financial Emergency Checklist (First 30 Days)
Your parent died with no will and collectors are already calling. Here’s what to do in the first 30 days — and why you probably don’t owe their debt.
Creditor Fair Treatment Rules: Myth vs Reality
Quick Answer: Regulation Z (Truth in Lending Law) provides real consumer protections by requiring creditors to post payments immediately upon receipt and prohibiting late fees for processing delays. The regulation applies to most consumer credit including credit cards, personal loans, and any credit with finance charges or installment agreements.If you are concerned about the way …
Credit Counselor Bankruptcy: Myth vs Reality
Quick Answer: Credit counselors and consumer law centers can go out of business, leaving clients back where they started after losing monthly payments. When a debt service company closes, creditors won’t eliminate accumulated late fees since they weren’t receiving payments during the enrollment period.“Dear Steve,I have been enrolled with a consumer law center that was …
Debt Collector Complaints: What Records Show
Quick Answer: Debt collector complaints have surged dramatically, with nearly 71,000 Americans filing complaints with the Federal Trade Commission in recent years – roughly double the number from 2003. Experts warn the situation will worsen due to the recession and the growth of companies buying discounted consumer debt.A story by CNN today makes my article …
Telling Creditors About Bankruptcy: When It Helps
Quick Answer: Debtors don’t need to tell creditors about bankruptcy filing since creditors receive official court notice automatically. Once represented by a bankruptcy attorney, debtors should direct all creditor communications to their lawyer for handling.A question I am often asked is if people need to tell their creditors that they are going bankrupt. If you’ve …
CPA Fraud Investigation: Myth vs Reality
Quick Answer: Simply ignoring creditors is not equivalent to bankruptcy, as unpaid debts can be sold to collection companies and resurface later. For someone with $20,000 in credit card debt and no ability to pay, bankruptcy provides a legal resolution that permanently eliminates the debt rather than leaving it to potentially cause future problems.“Dear Steve,I …
Ex Trashed My Credit: What It Means and What to Do
Quick Answer: When an ex-spouse trashes credit through joint accounts, divorce doesn’t eliminate shared debt obligations to creditors. The abandoned spouse remains legally responsible for joint mortgages and debts even after divorce, and foreclosure will damage both parties’ credit for seven years regardless of divorce agreements.“Dear Steve,I have been divorced for one year. Our house …
Can’t Pay American Express: What It Means and What to Do
Quick Answer: When unable to pay American Express minimums due to income loss, prioritize essential expenses like rent and utilities first, then contact AmEx to explain the situation. Missing payments will result in high interest rates, account closure, and credit bureau reporting, but these consequences may be unavoidable when cash flow is severely limited.“Dear Steve,I …
Debt Settlement Stops Lawsuits: Myth vs Reality
Quick Answer: Debt settlement does not stop lawsuits, and creditors can still pursue legal action even when consumers are enrolled in settlement programs. New Beginnings and other debt settlement companies cannot prevent creditors from filing court cases, contrary to common consumer assumptions about settlement protection.Diane wrote to me at the GetOutOfDebt.org site and asked for …
