Stanley’s plan on Debts and Credit

If you feel that you have been treated unfairly by your lender (PDL), file complaint with as many authorities as you can. Boy, it really works.

A person borrows $275 and ends up owing over $2700 - this is not right. Illinois has become irate based on similar complaints filed by payday loan consumers.

http://www.suntimes.com/output/news/payday28.html

Lots of debates has broken up already, however, I still believe that whenever consumers feel that they have been victimized, contacting the Office of Attorney General and Consumer Protection is the best bet.

VantageScore is a new scoring model that credit bureaus are going to market this year, perhaps. The question is why VantageScore, why not FICO or NewGen FICO? I’m sure all of us have noticed the difference among the credit scores obtained from the three bureaus. This happens because each bureau uses different formula while calculating credit score. Bureaus anticipate that VantageScore will eliminate this difference by bringing in a sole scoring model.

VantageScore would be simple to understand and interpret too. Consumers can predict well in advance how certain financial activities will affect the score. It will be represented as Grades. If your score is in 900s, you will get A Grade, if it is in 800s you will get B Grade and so on.

The main problem with VantageScore is lenders, mortgage brokers, auto mobile dealers, banks – all have to change their system to adjust with this new model. So this is a huge process and the industry might not be willing to adopt this change. Now if your lender is not going to concentrate on your VantageScore, why would you buy this score?

Industry is saying that few lenders have shown interest towards this change, but there is no clue at all if the finance industry would accept VantageScore as the yard stick of consumers’ financial status or not.

Moreover, people are of opinion that VantageScore still depends on various factors on credit report. As all the creditors do not report to all the three bureaus, the chance of getting different score or Grade is still there; then what is the utility of a new model at this stage?

Source: ConsumerReports.org

Texas Attorney General has filed lawsuit against a loan company for their deceptive lending practices. The company used to claim themselves as an Internet company but offered loan to consumers. The story is well-known. They charged $30 biweekly for a $100 loan. Until you pay the principal amount back, they will continue charging your account.

So in a year, they collected $720 + wrap up fees for a $100 loan!!! Hence they charged 782% rate of interest, whereas Texas usury law restricts rate of interest at 10% only.

Now they lawsuit says they have to reimburse the amount collected from consumers illegally. Moreover they have to pay penalty of $20,000 per violation of Texas Deceptive Trade Practices Act and $10,000 per violation of Texas Finance Code.

Payday lenders, beware, the wheel has started turning to the opposite direction.

Source: WacoTrib.com

Now lenders will dictate us how we should speak? What a shady attitude. America is an independent country and the citizens cannot express their thoughts. Where are you going folks?

Cash Today/Heathmill has sent a legal writ to Debt Consolidation Care because they helped consumers raise their voice against what is unlawful. Don’t you think this is a sentence to the Debt Consolidation Care Community stating – keep your mouth shut and let us continue with insincere business.

Interviews of community members have already revealed lots of unethical protocols of their business. Debt Consolidation Care Community has shown the courage to disclose their true color. How are they doing business even after charging as high as 1000% interest rate?

http://www.debtconsolidationcare.com/heathmill/interview.html

http://www.debtconsolidationcare.com/heathmill/identity-theft.html

Oh, let me write it down before the other avatar yells at more people. This is a lender that offers payday loans. Payday loan industry has already been put under a big question mark. But the company I am talking about is an item indeed. They continuously monitor our forum. When anyone raises their voice against them, they try to locate the person and give them a call. Needless to say, all types of threats are started then. What a professionalism!!

http://www.debtconsolidationcare.com/forums/collecting-balance.html

It is a well-known fact that negative entries hurt credit score. Consumers should always try to prevent negatives enter credit report because once these entries are there; it will be for next 7 to 10 years.

People often try to retouch their credit file to obtain a higher score. There is nothing wrong in it. However, FCRA does not offer any room of thoughts that correct negative entries can be removed from credit report. If you have declared bankruptcy, no one can remove this from your report. It will go off automatically according to FCRA bad debt reporting time.

However, some credit repair agencies claim that they are able to remove bankruptcy from your credit file by exploiting some loop holes of law. If an item in credit report cannot be verified with the creditor/bankruptcy court, it cannot stay in the report.

Often bankruptcy court fails to verify the entry and credit repair agencies insist bureaus to remove it from credit file. But if any day, bankruptcy court verifies the case, chances are it will be re-inserted in your file. Credit bureaus should inform consumers five days in advance that the removed info is going to be inserted again.

Personally I cannot see anything bad in dealing with creditors or collection agencies and get the credit file cleaned. Charged-off accounts can be updated as ‘paid charged-off’ if debtors can make some payment arrangement. ‘Paid charged-off’ is definitely better than a ‘charged-off’. If you are a very good speaker, you can also convince your creditor to report the account more favorably like ‘paid as agreed’.

So before paying your hard-earned money, do some research and think twice. If anything seems too good to be true, be cautious.