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| Recent Question |
Debt Negotiation
What are the chances that a credit card company will actually sue me in a court of law to collect the money I owe them? I live in Texas and have had a couple of companies imply that they are going to sue. -Don |
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JUDY SAYS: You bring up a very good question that I'm sure many often wonder. Since you actually do owe them the money, the credit card company has the legal right to receive and go after the money owed to them. One possible way to avoid being sued is to participate in a non-profit debt management program. Once you are working with them, they become a type of intermediary. However, even this option depends on the status you are currently in with the credit card company.
Have you already negotiated with them? Have you already worked out a hardship program with them? If these options have already been exhausted, and you are not making your payments, it may be more challenging to even receive the services of a non-profit program. The agencies role is to go to the creditors and work out a program on your behalf based on a budget they help you establish and what you are able to afford. The credit card company can still chose to not work with them.
Once you go to court and get a judgment these agencies cannot work with you at all. All is in the hands of the court.
Without knowing any more about your situation, my recommendation would be to work out the best program you can for paying off your debt and preventing this situation in the future.
For more information, I would contact your local legal aid or attorney. If you are a member of a prepaid legal program, this would be the time to utilize their services.
You can also speak to a member agency of the National Foundation for Credit Counseling (NFCC), which is the service I called for assistance on this answer. www.nfcc.org; 800-388-2227) (read more) |
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| Recent Question |
Getting a Better Home Loan Rate
I am in the process of trying to get pre-approved for a mortgage. I do not have the best credit, however all of my debts are either paid or in good standing. I am doing well re-establishing credit after years of family trouble. Are there any other prerequisites that will improve my rate and/or my success in applying for a home loan? -SuYun |
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DIANE SAYS: Keep making all your payment on time, don't close any open account though as that may actually affect your score. Other things that affect the mortgage decision are employment stability, liquidity (assets) and of course the condition of the property you wish to purchase. (read more) |
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| Recent Question |
Reporting Information to Credit Bureaus
I have acted as a lender by extending personal loan credit to clients for the purchase of automobiles. Once my clients have repaid their loans how can I (or they) provide this information to credit reporting agencies to improve their credit rating? -Kate |
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EVAN SAYS: You have to enter into a formal relationship with one or, to be complete, all three of the major credit reporting agencies: Equifax, Experian and Trans Union. They have contracts ready for you to sign that spell out your obligations. Also, the federal law, the Fair Credit Reporting Act requires lenders (furnishers) to report information accurate and to reinvestigate information disputed by consumers. (Chapters 6 & 9)...(read more) |
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