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Why We Love Debt Negotiation (And You Should, Too!)

Why We Love Debt Negotiation (And You Should, Too!)

We love assisting consumers every day and educating them on how they can save money, impact their scores in a positive way, and take action for themselves! Debt negotiation is something most consumers think they could never do! You may be surprised to know that many creditors/collectors will allow a consumer to negotiate with them on bills such as medical debts.

Job loss, medical emergencies, or unexpected expenses can make it hard to make ends meet! If you find yourself in a tight spot financially, and still have unpaid debt piling up it may seem like a nightmare to continue to get calls from those debt collectors.  Although sometimes difficult,  it is possible to negotiate on your own with collectors. To stay organized and run through the process as quickly as possible, these few steps are important.

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Locate Documentation

Locate your current statements and payments you are making. Make sure your payment history and late payment notices are documented. Determine payment arrangements-Look over your finances, bills and money coming in. Come up with a manageable amount that you know you could make. This will help you when you speak with a representative. Knowing what you will hear prior to the phone call will allow you to avoid them pressuring you into payments you cannot handle. The representative is not aware of your other financial obligations so be very honest and outright about what you can handle. Explain to the representative the current situation that you are in isn’t working and try to come to an agreement that you can afford. They may be able to lower the interest rate or accept a lump sum for less than originally documented. If for some reason they are giving you a hard time and you cannot get them to budge, call back and speak to a new rep.

Gather information-
You will want to make sure you are taking notes and keeping names of the people you speak to as well as the date and time the call took place. Anything at this point needs to be documented and kept in writing. If at any point an agreement is made, ask to have it documented in an email or written. This is the most important piece of the puzzle. Agreeing to a payment that hasn’t been documented could mean they do not correctly remove it from a credit report or the information is misplaced, and you are stuck in payments you did not commit to. You will want an outline of the payments you agreed to.

What can I do if I don’t want to negotiate for myself?
In an effort to save time and resources, another option would be to hire a credit repair or credit counseling service. The primary concern would be to learn what kind of work they will do for you upfront and what you will be paying for during the process. At Credit Law Center we use the law as leverage to gain deletions from the credit report. Ideally, this process is one that consumers want to get done quickly whether it is due to wanting to buy a new home, get a new car etc. At Credit Law Center you only pay for the items that we successfully remove so you can expect we want to make sure we are removing items as quick as we can. We go after all of the items on the entire report and our consumers know what they could end up paying in the end. Should you go through credit repair or credit counseling, it is a good idea to continue to monitor your credit report.

Debt Negotiation Options – Another great option is try to negotiate to pay a smaller amount on the debt owed. If you are uncomfortable or the task seems to difficult, we suggest hiring an attorney for this step!

As a law firm we have the ability and power to negotiate judgments, repossessions, charge off, or any sort of debt that is still reporting on a report. We use the power of the law and our attorneys to negotiate these items in a way that’s favorable to you. While not Debt Consolidation or Bankruptcy, we do have significant tools available to us that help negotiate these debts and save you significant amounts of money! We have four attorneys in house that you can lean on for advice and guidance while working on negotiation. Their extensive negotiating experience with banks, collection companies, and collection attorneys has helped our clients save thousands. Our goal is to negotiate the debt as low as possible out of court and get your case dismissed.

If you are in the process of trying to negotiate and come to an agreement with a creditor and have any further questions, our Credit Advisors would be happy to help you. Should you need the expertise and legal advice of on of our attorney’s, please call and they would be happy to answer any questions!

For more information about your credit score, please give Credit Law Center a call at 1-800-994-3070.

A note from the author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Need Credit Repair? We Fix Credit Reports! – Credit Law Center

Need Credit Repair?

If you recently pulled your credit report and you instantly feel ill from the low credit scores and outstanding collections. Now may be the perfect time to start thinking about credit repair. Having a low credit score can cost you hundreds of dollars on loans, interest rates on cars and even receiving a denial letter. High-interest rates and denials are the perfect reason to consider credit repair.

 

We Fix Credit Reports!

A single mistake on your credit report can cause a tremendous drop in your credit score. Did you know that 79% of all Americans have inaccuracy, miscalculations, and or negative item on their credit reports? Yes, I did say 79%! The good news is that there are rules and regulations that credit reporting agencies must follow, by law consumers are allowed to dispute inaccurate information that the credit reporting agencies are reporting. The Credit reporting agencies, Equifax, Experian, and Transunion, have 30 days to notify you of the status of your disputes and up to 45 days to complete their investigation.

 

If they delete the inaccurate information

If the CRA’s remove the mistake from your credit report, this is Awesome! Deleting an account or a negative item can immediately increase your credit score. The only time a credit score gets updated is at the time you request it. The credit report and score is calculated based on the information on your credit file at the time the request is made. For Example, if you request your credit score on a Monday and Tuesday critical information was removed, and you order your report again on Wednesday the derogatory information will show as if it was never on your report.

If They Verify

Here is the part of the process that sets Credit Law Center aside from any other credit repair companies. When a creditor or collector verifies the questionable information, most credit repair companies end the process here. At our law firm, this is the most significant part of our process; this is the part of the process where one of our attorneys send a debt validation demand. A debt validation demand is a legal document that contains 6-9 questions for the creditor or collector to answer. The creditor or collector typical responds in one of two ways:

  1. The creditors and collectors receive a letter from our law firm, and they are aware of the recent dispute. If the account or inaccurate information provided on the credit report cannot be verified, they will delete the account!
  2. They answer the 6-9 questions; this is the step where our paralegals step in and compare the debt validation demand letter to the response from the initial dispute. When comparing these two documents, we typically find discrepancies or incomplete information. Often these discrepancies are violations of the Fair Credit Reporting Act, or the Fair Debt Collection Act.

When our firm finds one of these violations, we use this information as leverage to request full deletion of the account.

 

If they update

When the information is updated, it means the collector or collection agency as reporting the information incomplete or inaccurate. This is not considered a FCRA violation because they updated the information, the only time a creditor or collector can violate the FCRA is when an account is disputed. This result is why proper documentation of the dispute process is so vital to the credit repair process.

What happens when the report is updated and verifiable?

Once all the appropriate steps in the credit repair dispute process have been completed, all the information on the credit report should be accurate and verifiable. The next step would be to negotiate a settlement for deletion with the creditor or collection agency. This allows you to pay the account as long as the creditor or collection agency is willing to delete the account information of your report.

Credit Law Center No. 1,578 on Inc. 5000 Fastest Growing Company List

Here at Credit Law Center, we believe in being a team of individuals who are all working for the higher cause and greater good of the company. Our focus and efforts have paid off, and we are honored to rank number 1,578 on the Inc. 5000 Fastest-Growing Private Companies in America. Over the last three years, Credit Law Center has had a 249% rise in revenue. The soaring growth has allowed us to expand our team, move into a new building to accommodate our needs in a way that will help us continue down the path of expansion and improve the buying power of so many clients.

 

Who is Credit Law Center?

In 2009 Credit Law Center was established, by a few guys with a vision and a passion for helping consumers improve their buying power, as well as holding the credit reporting agencies and debt collectors accountable. As CEO, Bo Thomas would say, “I’m a recovering mortgage Banker, and I enjoyed doing mortgages and had some pretty great success there. Every year I kept seeing more and more of the common sense of lending just keep getting distracted. It used to be based on how much money you made how you paid your bills, but it rolled itself into or manifested into now it is about what’s your credit score before you can make a decision.”  About 90 days into this new adventure Bo realized that for Credit Law Center to be successful and to do more than what an average consumer can do on their own, Credit Law Center needed an attorney needed an attorney to join forces. That is when he reached out to Attorney and friend Tom Addleman. Tom reviewed the information and immediately said, ” let’s go get these guys they are making mistakes!” Since that day in 2009 Credit Law Center has grown to a staff of about 75 employees, including five full-time attorneys on staff.

What Does Credit Law Center Do?

Our core Mission as the company is to help consumers improve their buying power, so whether you can or can’t get approved, but even if you are approved, but you want to improve your situation to where you can get a better rate or the best rate. Credit scores will continue to have a more relevant impact in all areas of consumers lives. Credit reports are required by law to be 100% verifiable and accurate we work to get the information corrected or deleted. When our staff finds errors or violations, our attorneys pursue them and fight for your rights.

Our growth has also allowed us to take on many new referral partners that are coming alongside us because they see the value of what we can do for our clients. We see and believe in the dreams of each of our customers as well as our employees, and we seek to communicate that in the work that we do each day. As one of the nations fastest growing companies, we have the motivation to run a smart, successful business that is well-known for our generosity and ability to change the lives of our clients.  Credit Law Center as a whole would like to extend a huge thank you to each dedicated individual that has played a part in our expansion and growth. Each and every one of you made it possible for us to receive this honor. We look forward to the years to come and the many lives we will help restore in the future.

Debt Collectors Are Required to Follow the Rules

 

Carrying outstanding debt is stressful enough, but when you add aggressive debt collectors to the equation, it can be a bit overwhelming. Have you ever sat back and wondered if what they are doing is legal? Debt collectors do have limits, and they are required by law to follow certain guidelines.

Debt collectors must comply with the Federal Debt Collection Practices Act, FDCPA; this act prohibits abusive, deceptive and unfair debt practices

 

Debt Collectors

The FDCPA defines a debt collector as a company or agency that is in the business of recovering outstanding money that is owed on a delinquent account. Debtors will hire debt collectors to collect money that owed to them, and in return give them a percentage of the portion that is collected.

 

Typical Debt Collector Violations

  1. Calling Before 8 AM
  2. Calling After 9 PM
  3. Using abusive or vulgar language
  4. Calling third parties, (debt collectors may contact your spouse)
  5. Communicate to anyone else that the collector is trying to collect
  6. Contacting you after you have submitted a written request to cease contact
  7. Continuously call you
  8. Use or threaten violence
  9. Threaten action they cannot take
  10. Failing to send a written statement validating the debt
  11. Continues to Collect before sending validation letter
  12. Contacting your employer if your employer prohibits it
  13. Debt collectors may often use false statements.
  14. Threatening to have you arrested or that you are being sued when no action has been taken
  15. Giving false information to the credit reporting agencies.
  16. Sending a letter that looks like an official court document if it isn’t
  17. Collecting interest, fees, or other charges on top of what you owe, unless it is in the contract
  18. Contacting by using a postcard.
  19. Repeatedly call you to harras you.

What to Do If You Believe A Debt Collector is in Violation of the FDCPA

If you feel a debt collector has violated the FDCPA you have the right to take action.
You may report any problems you have with a debt collector to your state Attorney Generals Office, the Federal Trade Commission, and the Consumer Financial Protection Bureau. You may also reach out to an attorney that practices law in these areas, you have the right to sue a collector within in one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered. The judge may also grant you up to $1000 even if you can’t prove that you suffered any damages.

If you feel you have been violated in the last year, Credit Law Center isn’t just a credit repair company. We have five attorneys on staff that handle situations like this every day. These laws are here for to help protect you.

What Makes Up A FICO Score? – Credit Law Center

What makes up your FICO score and how is it calculated? A FICO score is a 3 digit code measured by pulling data from all three credit reports, Experian, Transunion, and Equifax, it is then used to determine your credit risk to lenders. The information pulled is put in to a FICO Score Formula, as a result this Score may raise or lower depending on the type of information being reported on your credit reports.

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Are Debt Collectors or Debt Buyers Calling You? – Credit Law Center

Are Debt Collectors or Debt Buyers Calling you? –  Credit Law Center

Do you immediately send an unknown call to voice mail, knowing it is just another abusive debt collector? Debt collectors and debt buyers spend lots of time and money going to seminars and workshops to stay up to date on all the rules and regulations. Collectors of Debt are required to follow the strict guidelines, which are set in place by Fair Debt Collection Practices Act, (FDCPA). Unfortunately, for a consumer a debt collector may use unlawful tactics to gain a larger profit. Often times voice mail messages left by collectors are violating the FDCPA.

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