From this article in Collections & Credit Risk, thousands of Mann Bracken lawsuits have been dismissed by a Maryland district court judge. While this decision only effect debt collection lawsuits in Maryland, it could be a harbinger of things to come across the US. Could Texas Mann Bracken debt lawsuits be next to be dismissed?
From the article:
“The bottom line is, we’ve taken action so that the citizens will not be inconvenienced, and we’ve taken action so that the judges are aware that some of these refilings may be barred by the statute of limitations,” he says.
Mann Bracken was under pressure from lawsuits, as well. In Washington, D.C., the Better Business Bureau had given the firm its lowest rating and several lawsuits accused it of using illegal tactics against borrowers whose bills had fallen into default, officials tell Collections & Credit Risk. Mann Bracken is based in Rockville, Md. but has 24 offices nationwide.
In some cases, the creditor may refile the lawsuit with another law firm and Texas consumers may faced their second lawsuit over the same debt. If a debt collector files a lawsuit against you in Texas, you can contact Henley & Henley PC to find out your rights. They can be reached at (214) 552-6647 or online at www.henleycreditlaw.com.
Whenever you take out a loan from a bank on our property, your account gets handled by one of the hundreds of mortgage companies in the country. They are responsible for collecting payments from you and then get a percentage of that amount that you pay.
However, there have been speculations that because of the percentage and fees that these mortgage companies receive, they would be tempted to not exert much effort in collecting and giving loan restructuring but rather to allow them to foreclose their property at an amount very less than its actual cost. There are additional fees and expenses that they ask for when foreclosing rather than in loan modifications, as well as an increase in percentage for delinquent accounts.
Banks vehemently deny this claim, standing by their position that their clients and customers are always their top priority, and that they do not wish to destroy this customer relationship. However, since we don’t know what is happening inside these banks, we cannot be sure of what is actually occurring. We can only trust and believe in what they are doing.
So, if you think your mortgage company can help you lessen your debt, then you can just think again and go to your bank for help. Most mortgage companies are concerned with how much they will earn from all their charges, especially those fees that they can get from having a property foreclosed. You would be better off negotiating with your bank.
Consult a Texas foreclosure attorney for further details.
Among all collection agencies in America, NCO Financial Systems Inc is the one recognized as being the biggest collection agency. Their services are outlined in their website at www.ncogroup.com. And to help their clients as well as other consumers to understand collection terms and regulations, they have launched the site www.consumerhelpunit.org. This website will enable consumers to ask for assistance in their debts and collections.
It is also always best to remember that in dealing with any collection agency, be it NCO or not, every communication should be documented and all agreed on terms be written down and signed, and not just through verbal exchange. This is to avoid discrepancies and misunderstandings between the collection agency and consumers.
Consult a Texas credit attorney for further details.
Being familiar with the terms used in the credit industry can help a great deal in understanding your credit standing. Below are several terms and their corresponding definitions that can further improve a person’s understanding of the credit industry. Apart from this, consult a Texas credit attorney or credit counselor for further details.
I9, O9, R9 – the common number in these 3 terms is 9. Having the number 9 beside these types of accounts signifies that the account is already written off or charged off. Having one of these terms on a credit report is enough to lower down the credit score since a charged off account is basically considered a loss on the part of the creditor. Once a charge off account appears in the credit report, it will still remain for 7 years even after payment has been made.
- Credit Limit – the biggest amount available for charging or spending. If you have a high credit score, chances are that your credit limit is also high. But this does not necessarily mean that you have to reach the maximum limit when spending.
- Bankruptcy Score – a score that determines whether or not you will be filing for bankruptcy and even how much can be lost when you file for one.
- Application Score – a score that is taken from the personal information given via the credit application. All boxes are required to have an answer since application scores detest having blanks in the application.
Have you ever seen an Explanation of Benefits? You should have, especially if you visit your doctor often and have medical insurance. If you are not familiar with this piece of paper, then let me describe it to you. It first has the original amount charged by the doctor, then its negotiated amount as bargained by the insurance company. The difference between these two amounts will make you grateful that you do have medical insurance. But how about those who cannot afford to pay for medical insurance? They have the daunting task of bargaining with the doctor who treated you, on the fees you need to pay. Here are some things to remember when you speak with your doctor and start negotiating your medical bills:
There is no law that says that you cannot ask your doctor to lower down his fees. Ask nicely and negotiate properly on how much you can give on doctor’s fees.
Doctors need patients in order to survive. Patients need doctors in order to live. Without each other, there will be no business. So, to maintain business, each must be able to negotiate on terms beneficial to both.
Doctors charge a fee to be able to pay for their practice and other expenses that crop up in their profession. But it does not mean that they will turn away someone who needs their help because of financial constraints.
Do not hesitate to explain your financial situation with your doctor or hospital. Chances are that they give you a big discount on their rates and let you benefit from it instead of just giving it to insurance companies.
- Insurance companies can be much of a hassle
It is quite easy for insurance companies to increase premium and collect. However, when it comes to dishing out claims and benefits, it takes quite a long time, with a long list of things to do before being able to get it. With this in mind, hospitals and doctors are willing to give you a bigger discount just to get out of all those hassles. At least, you will be giving cash for it.
- Start off with Medicare rates
Do your research on the cost of the procedure you need to have done and let this be your starting bid as you negotiate lowering the fees of your medical procedure.
- Be honest enough in discussing your finances
Ask your doctor on how much the procedure will cost and tell them honestly if you can afford it or not. They will understand your situation.
- Cash is the best payment option
Most negotiated doctor’s fees require payment in cash.
If the procedure needs a bigger amount of money than what you expect, it would be better to discuss a payment plan or either monthly, quarterly, or annual payments on the services rendered.
- Verify the need of the procedure or test
Do you really need this test to recover? If not, then you may be cutting down costs as well.
If the fees charged for a certain procedure vary depending on season, then set up an appointment during when the fees are at its lowest. Or, you can also take the place of those who cancelled at the last minute.
Lastly, the treatment procedure that you may need to undergo varies in the type of place needed for it. Oftentimes, you don’t need to use the emergency room for minor ailments. To cut costs, consider going to visit the doctor instead of letting him go to you. For more help, contact your local Texas credit attorney or credit counselor for a detailed explanation of benefits.
Have you ever tried reading a credit report? You’re lucky if you would easily understand what it means. Unfortunately, the majority of the people who read their credit report do not have an inkling of those terms found in each report. So to lessen any confusion upon reading the credit report as well as to avoid any errors in interpretation of the credit report, here are some common terms often seen in a credit report and their corresponding definition.
- O9 – Open account; the bill is due and with variable balance
- 3rd Party Collection – when a lender or creditor uses another company not related to them, to collect debts from a debtor. It appears on a credit report as another new account aside from the original one with the lender.
FICO – Fair Isaac Corporation; the credit score used by most credit agencies for their verifying needs.
Public Record – a written statement of a bankruptcy, judgment, or tax lien that has been notarized, filed, and implemented for the specific purpose that it was recorded for.
For further details, consult a Texas credit repair attorney or credit counselor.
For a newbie in the credit industry, credit scores such as a FICO score and a FAKO score will all be the same. But for those veterans in this field, they can easily tell the difference.
A FICO score is the credit score given by the Fair Isaac Corporation, based on an algorithm that can be used to calculate a person’s credit worthiness and risk. Three credit bureaus, namely TransUnion, Experian, and Equifax gather credit data and this is calculated into the credit score. Consult a Texas credit attorney for further details.
On the other hand, FAKO credit scores are “fake” FICO credit scores, or credit scores that are not based on the calculations used for a FICO score. They include the following credit scores:
- Vantage Score – a credit score based on data gathered by the 3 credit bureaus, created as competition for FICO
- BEACON credit score – a real FICO score which is based on the data gathered by the Equifax credit bureau, created by the same bureau
- Scorex or Scorex Plus – a credit score by the Experian credit bureau based on the credit data that they gather
- Transrisk New Account score – a credit score calculated by the TransUnion credit bureau from the credit information that they gather in their credit report.
They are not exactly fake credit scores since they can give you an overview of what your credit looks like. However, it is not the one used by most lenders and creditors when reviewing loan applications so if you need to know what your actual score is, then it would be better to get the one that they use. Also, if the cost of the FAKO and FICO scores is basically the same, then wouldn’t it be better to get the one which will be most helpful to you?
There are sites such as AnnualCreditReport.com who can provide a free credit report annually although to get the credit score, you will need to pay a fee. Or you can use a free trial for FICO credit score, then cancel when you get to see your score. But if you just want to know your credit rating, it would be best to check using a credit score estimator, which can give you an accurate enough estimation of your credit.
When you have a debt, it is always proper to pay it off. Texas credit attorneys can help you in such matters. However, some people say that paying off debts in collection can lead to a lower FICO credit score, because the collection is then made to be a new one, which can inadvertently lower the credit score. So if this is the case, why would you still pay off your debt if it will just lower your credit score that you are trying hard to increase?
According to the FICO score developer and Principal Scientist Ethan Dornhelm, this is all a myth. Paying partially or fully on a collection account will not in any way bring down the FICO scores, unless by some accident of fate, your collections date becomes updated. He further stresses that the main focus of FICO credit scores is on the presence and time a collection appears on record. This is also what most commercial FICO credit score models and bureaus have as basis.
Because of this clarification, both consumers and collection agencies alike will benefit from it. Consumers can now lessen their debts while collection agencies can now have an easier time in their collections, since the consumers do not anymore have the fear of lowering their credit scores if they settle their balances.
Furthermore, on the ability of FICO 08 to bypass the collections that are less than a $100, Dornhelm states that the decision was based on the study that these debt collections of low amounts can be and will easily be paid since it does not compromise their FICO credit scores. These collection accounts are often comprised of library fines, utility bills, and other minor expenses. It will still be something that consumers are obliged to pay, but at least it does not come with the fear of having it affect their credit scores. Don’t be in debt; consult a debt credit counselor on how to maintain your credit score.
Most creditors believe that people with high credit scores are the most responsible in keeping up with their monthly loan or mortgage payments as compared to those with low credit scores. However, a research of about 24 million people’s credit files have shown that among homeowners who apply for a mortgage and have a high credit score, there is a 50% probability that they will strategically default their mortgage. To strategically default on a loan is to suddenly walk away and not pay for a mortgage.
These people are those knowledgeable in the workings of these things, therefore knowing what it would cost them to just walk away from the mortgage. To them, it is more of a business strategy rather than a personal decision. They often reside in places where home values have plummeted since the economic crisis went underway. Unfortunately for them, should they plan to apply for a modification of the loan, the bank or lenders may not be as lenient to give them what they want, for fear that history will repeat itself. Consult a Texas credit attorney for further details.
Revisions on the improved FICO credit scoring system:
With debts below the $100 mark, the collection amount will not be counted as opposed to the bulletin that it would be still be counted, although at a lesser amount. It is also being utilized by all three credit bureaus, in spite of concerns that there might be problems with them accepting the new credit scoring system.
On the other hand, major mortgage corporations such as Fannie Mae and Freddie Mac are still using the old FICO credit scoring system. This may pose a bit of a problem when applying for a mortgage from them since your credit status will be based on the old FICO.
However, to keep your credit ratings within good levels, based on either the old or new FICO system, it is always best to make prompt monthly bill payments, maintain a low debt and high credit ratio, and vigilantly reviewing and reporting any errors on your credit report. Consult a Texas credit attorney for further details.
