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ask the debt expert
On this page we
will try to answer some of the debt-related
questions we are receiving, so that others may learn
if they are experiencing a similar situation.
Answers are generously provided
by Harvey Z. Warren, author of "Forever In Your Debt -
Escaping Credit Car Hell" (coming soon).
If you have a question that may
be relevant to other people as well, please
send it to us.
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Marlo: "It is my
understanding that negative items can be purged/removed from your
credit report after 7 years. I've heard that if you write to the
three credit reporting agencies requesting such a removal that
"specific language/terminology" needs to be used. Can you provide
any advice on this?"
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Dear Marlo:
The Federal Trade Commission publishes guidelines on
the removal of "errors" on you credit report. This
is what they suggest as a form letter.
Date
Your Name
Your Address, City, State, Zip Code
Complaint Department
Name of Company
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in
my file. I have circled the items I dispute on the
attached copy of the report I received.
This item (identify item(s) disputed by name of
source, such as creditors or tax court, and identify
type of item, such as credit account, judgment,
etc.) is (inaccurate or incomplete) because
(describe what is inaccurate or incomplete and why).
I am requesting that the item be removed (or request
another specific change) to correct the information.
Enclosed are copies of (use this sentence if
applicable and describe any enclosed documentation,
such as payment records, court documents) supporting
my position. Please reinvestigate this (these)
matter(s) and (delete or correct) the disputed
item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing.)
You may not be able to get correct, but aged, items
removed. They should have no effect on your score if
they are 7 years old or older. I have some items on
my report from accounts I closed 25 years ago. But,
it is a good idea to make sure they are being
properly noted as closed by you or by the creditor;
a common mistake.
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William: "Have filed
bankruptcy less than two years ago and am getting back into same
cycle (seems partly out of my control). What can be done for myself
and others I meet professionally ?"
Dear William:
Debt like alcohol, drugs, sex and other destructive
behaviors can become compulsive. From the little you
have written, it sounds to me like you have an
issue. This link
http://debtorsanonymous.org/help/signs.htm will
take you to a page on the Debtors Anonymous website
where they present 12 warning signs of compulsive
debting. I don't endorse nor support nor am I a
member of this organization, but their information
is quite good. A very close friend of mine, whose
intelligence and judgment I fully respect, says they
saved him from certain bankruptcy.
The good news is you have already taken the most
difficult step in getting better by looking for a
solution. Asking questions means you know there is a
problem. I would certainly give the website a look
and the service a call. If you have the courage to
recognize a problem, you have the what it takes to
beat it. |
Jeanne: "I am the
defendant in a lawsuit with Bank of America. I sent a letter of
dispute and their response was to sue me. I am representing myself,
as attorney's fees are prohibitive. Any advice?"
Only an attorney can advise you.
What I can say is that working with creditors'
attorneys is best done on an honest and responsive
basis. What that means is that if you provide them
with an honest budget and a sworn statement that
what you are telling them is the truth, you may find
that getting sued is a really an exercise in fairly
getting to the facts, not unfairly getting beat up.
If you don't know how to make a budget, Microsoft
offers a free download on their website for their
product
Microsoft Money.
Be sure you answer their calls and letters as soon
as possible. If you miss, you will lose by default.
If you respond, you may find a reasonable solution.
The good outcome you want comes from having the
courage to be responsive and truthful. |
Ryan: "Please help me find out who is the controlling
agency for credit card companies. I have a problem with
American Express and I need to carbon copy a letter to
whomever has oversight and may be able to help."
| There are many agencies, State and Federal.
The best is the Federal Trade Commission,
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm
for violations of the Fair Debt Collections
Practices Act.
Be advised, if you are responding to a
problem with the lender itself - AMEX - the
rules are different than they are for a
collection agency - a third party. All you need
to know is on this link above. |
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