CREDIT CORNER

Table of Contents

Credit Corner

Excerpt from the book When Good People Have Bad Credit Swygert Publishing LLC

Statute of Limitations in simple terms is the amount of time someone or a company has time to pay back a debt or in simpler terms running out of time. Legally the term is used in a civil law system or a prescriptive period, to set the maximum time after an event. In consumer credit and debt terms it is time frame in which a consumer may be sued by the ORIGINAL creditor, this varies by state.

When you look at the FAR-RIGHT column you can see the credit card debts’ SOL. This means the credit card company can NOT sue you after 4 years of non-payment. That is why it is advised NOT to pay the creditor or negotiate a new contract for payment with the ORIGINAL creditor or the COLLECTIONS agency that purchased the debt.
Consumer knowledge is your friend….because most people believe you have to WAIT 7 years to have the negative remarks removed from your credit report. That is not the case.

State Written Contracts Oral Contracts Promissory Notes Open-ended accounts (Including Credit Cards)
Daleware 3 3 3 4
Maryland 3 3 6 3
North Carolina 3 3 5 3
Texas 3 3 4 4
State Written Contracts Oral Contracts Promissory Notes Open-ended accounts (Including Credit Cards)
Daleware 3 3 3 4
Maryland 3 3 6 3
North Carolina 3 3 5 3
Texas 3 3 4 4

Credit Corner

What is a 604 letter?

A 604 Dispute Letter asks credit bureaus to remove errors from your report that fall under section 604 of the Fair Credit Reporting Act (FCRA). A 609 Dispute Letter is often billed as a credit repair secret or legal loophole that forces the credit reporting agencies to remove certain negative information from your credit reports. And if you’re willing, you can spend big bucks on templates for these magical dispute letters. But there is nothing magical because the verbiage you use will always be accurate if you have the law behind you. These letters can cost anywhere between $200-$250 letters and are often used by people who say they are “Credit Repair” agencies.

§604.
Permissible purposes of consumer reports
[15 U.S.C. §1681b]

a) In general. Subject to subsection (c), any consumer reporting agency may
furnish a consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an
order, or a subpoena issued in connection with proceedings before a
Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom
it relates.

Credit Corner

What is a 609 letter?

A 609 Dispute Letter is often billed as a credit repair secret or legal loophole that forces the credit reporting agencies to remove certain negative information from your credit reports. And if you’re willing, you can spend big bucks on templates for these magical dispute letters. But there is nothing magical because the verbiage you use will always be accurate if you have the law behind you. These letters can cost anywhere between $200-$250 letters and are often used by people who say they are “Credit Repair” agencies.

§609.
Disclosures to consumers [15 U.S.C. §1681b]

(a)

Information on file ; sources; report recipients. Every consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer:

(1)

All information in the consumer’s file at the time of the request except that–

(A)

if the consumer to whom the file relates requests that the first 5 digits of the social security number (or similar identification number) of the consumer not be included in the disclousure and

(4)

The dates, original payees, and amounts of any checks upon which is based any adverse characterization of the consumer, included in the file at the time of the disclosure

(5)

A record of all inquiries received by the agency during the 1-year period preceding the request that identified the consumer in connection with a credit or insurance transaction that was not initiated by the consumer.

(6)

If the consumer requests the credit file and the credit score, a statement that the consumer may request and obtain a credit score.

(b)

Exempt information. The requirements of subsection (a) of this section respecting the disclosure of sources of information and the recipients of consumer reports do not apply to information received or consumer reports furnished prior to the effective date of this title except to the extent that the matter involved is contained in the files of the consumer reporting agency on that date.

(c)

Summary of Rights to Obtain and Dispute Information in Consumer Reports and to Obtain Credit Scores.