Jul 15

If you are facing a debt collection law suit or you are being sued because of your outstanding debt your best strategy for defense is to focus on documentation. Insist the debt collection agency has no documents to show that you indeed owe the debt.

This worked successfully for a New Yorker. The case was profiled in New York times. Article courtesy of New York Times

At a civil court hearing in Brooklyn in March, Judge Noach Dear demanded documents from Cohen & Slamowitz supporting its claim that Herman Johnson of Brooklyn owed $3,797.27 in credit card debt. Mr. Johnson disputed the claim.

“What proof did you have that this is the true gentleman that you were trying to pursue?” the judge asked David Robinson, a lawyer for Cohen & Slamowitz, according to a transcript.

“Just his Social, his date of birth, and his address and the account,” Mr. Robinson said.

“That’s all you have?” the judge said. “So if you have somebody’s Social number, date of birth and address, you could sue them without any other information?”

Mr. Johnson’s case was dismissed, and Judge Dear last month issued an order requiring, among other things, that Cohen & Slamowitz provide further proof of a debt if a defendant challenged the firm’s claim.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , , ,

Jun 23

As a credit card borrow you need to know the federal government guarantees you some rights that protects you from predatory lenders and collection agency.

Your rights as a credit card borrower are protected by FDCPA Act

FDCPA Act or in full The Fair Debt Collection Practices Act spells out certain guidelines to which collection agencies must adhere. Some highlights include: not calling a borrower between 9 P.M. and 8 A.M.; not using obscene language to threaten or intimidate borrowers; not calling a borrower’s employer without written permission; and not speaking to anyone about the debt expect the borrower, the lender, an authorized signer or representative, and the credit bureaus.

To download and read a full PDF article of the act visit FDCPA Act Page

For short summary of credit card debtors rights visit here and here

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , ,

Jun 23

If your credit card debt has gotten out of hand, it is wise to negotiate with your credit card issuer.

But before you even consider negotiations for credit card debt settlement just note, in general, the credit card company will only deal with a consumer when the consumer is behind on payments but capable of making a lump sum payment.

The following credit card debt settlement negotiation tips will help prepare you face your credit card issuer with know how and confidence.

Raise money for a lump sum payment

Before picking up that phone and calling you credit card issuer customer representative know where you will get money to pay off the lump sum because that is the first question they will ask. One idea could be selling off your car or some of your household goods.

Know the questions your credit card company will ask you

Knowing the questions they will ask during the negotiations will help you prepare your answers. You dont want to advertise your ignorance. Some of questions will be like, your monthly budget?

Write down your ideas

Make your ideas precise, avoid lengthy explanation. Reading and re-reading your ideas will give you more confidence.

Know your rights as a borrower

Make sure you know your rights as a consumer. It’ll make you aware of what creditors shouldn’t do when they’re collecting your payments. If in case the creditor violates the laws, you can take suitable legal action against them.

Be nice with your creditors

When you finally meet your creditors face to face be polite and understanding while dealing with them, it will make it easier for you to get an agreement on debt settlement.

Explain how your creditors will gain if you settle the dues

When you’re negotiating with creditors, make sure you explain how the creditors will benefit from a settlement. Make them understand that they won’t have to approach Collection agency to collect your dues and they need not go to courts to sue you.

Try again if the creditor refuses to settle the first time

Never give up be persistence.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

Jun 22

Debt settlement negotiation can be made easy if you prepare yourself thoroughly before approaching creditors.

Before initiating negotiation with your creditor note, in general, the credit card company will only deal with a consumer when the consumer is behind on payments but capable of making a lump sum payment.

The following ideas may help you negotiate with you creditors to reduce your outstanding debt.

Raise money for a lump sum payment

Before picking up that phone and calling the company’s customer representative know where you will get money to pay off the lump sum because that is the first question they will ask. One idea could be selling off your car or some of your household goods.

Know the questions they will ask you

Knowing the questions they will ask will help you prepare your answers. You dont want to advertise your ignorance. Some of questions will be like, your monthly budget?

Write down your ideas

Make your ideas precise, avoid lengthy explanation. Reading and re-reading your ideas will give you more confidence.

Know your rights as a borrower

Make sure you know your rights as a consumer. It’ll make you aware of what creditors shouldn’t do when they’re collecting your payments. If in case the creditor violates the laws, you can take suitable legal action against them.

Be nice with your creditors

When you finally meet your creditors face to face be polite and understanding while dealing with them, it will make it easier for you to get an agreement on debt settlement.

Explain how your creditors will gain if you settle the dues

When you’re negotiating with creditors, make sure you explain how the creditors will benefit from a settlement. Make them understand that they won’t have to approach Collection agency to collect your dues and they need not go to courts to sue you.

Try again if the creditor refuses to settle the first time

Never give up be persistence.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

Jun 20

Do-It-Yourself debt relief is quite simple. You stave off payments to the credit card companies, skipping a month, sending in less than required, while SAVING CASH all the time, and not in a bank account.

When you have saved 40% of the most belligerent account balance, offer them 40% cash to buy out the debt. In the meantime pay off all your very small debts such as overdue grocery bills, shoe repair, lawn maintenance, all the little people.

You must go on a CASH ONLY basis from the very beginning and it might mean giving up a lot of small pleasures. Then start saving a large amount and tackle the next big card debt. When you have finished, you should have no debts whatsoever and money that can now be put in the bank. You would be surprised at how quickly this can be accomplished.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , ,

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