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TITLE: Individuals Who Are Unbanked and Underbanked CONTENT: | | | | \n: . END

TITLE: Free Banking - Banking Without Fees CONTENT: If You Pay to Bank, Here's Ways to Bank For Free\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThink free banking is hard to find these days? Not according to a survey conducted by the American Bankers Association. They found the majority of Americans — 61 percent — pay nothing at all for bank services such as checking account maintenance and ATM access. Most bank customers (72 percent) spend $3 or less in monthly fees. If you are paying to bank, learn how to eliminate banking fees and bank for free.\nGet The Best Deals\n------------------\nHow do you normally choose your bank? The one with a branch closest to your house? The one your best friend uses? The one you’ve been using since you opened your first account as a teenager? If you answered yes to any one of these questions, it’s time to shop around.\nBig banks (e.g., Wells Fargo, Chase, Bank of America) have higher fees than smaller community banks and credit unions, or online banks. That’s not to say you cannot find free banking at big banks across the board. It just means you need to shop around for the best deal.\n**Sign Up for Direct Deposit**\n------------------------------\nMany checking accounts are free when your paycheck or benefits check is automatically deposited each month into your account. What is even better than the free checking account is the fact your money will be available immediately. No waiting for a check to clear — which could take upwards to 5 business days.\nKeep a Minimum Balance and Multiple Accounts \n---------------------------------------------\nJust about every bank will offer you a free checking account if you keep a minimum balance in a savings account. Doing this helps avoid monthly fees and accidental overdrafts by linking your checking and savings accounts together. What is even better is to set up a monthly transfer of funds from your checking into your savings. This is a great way to start to save up a nest egg or a small emergency fund.\nUse Only Your Bank's ATMs\n-------------------------\nThis is biggest reason for bank fees is using an ATM from a bank that is not affiliated with your bank. If you can, avoid using ATMs not owned by or affiliated with your bank. If you do have to use an ATM from another bank, take out enough so that you will not have to go back and use it again. Prime example of this is when you are on vacation. You might not be able to find an ATM which is affiliated with your bank. If so, take out a large enough sum so you won't have to go back multiple times.\nSign Up for Email or Text Alerts\n--------------------------------\nKeeping track of transactions and account balances will help you avoid bounced checks and overdraft fees. This can be easily done now-a-days using your smart phone. You can easily download your banks app on to your phone and from there you set up email and text alerts. You can also set up reminders to pay bills or transfer money through your bank's app. If you are not technology savvy, we are sure a banking associate will be more than happy to walk you through setting it up.\n**Read the Notices You Receive From Your Bank**\n-----------------------------------------------\nWhat’s free today may not be so tomorrow. Fortunately, your bank is legally required to let you know if and when they make changes to your account. So don’t toss or delete notices from your bank without taking the time to read them. If the rules have changed outside of your comfort zone, give your bank a call to see about other options and\/or start shopping around again for a new bank altogether.\nUsing one or more of the above tips will ensure you will never have to pay banking fees again. Join the thousands of smart people who know how to bank for free and avoid bank fees. END

TITLE: Online Checking Account and Online Banking CONTENT: Is It Time to Switch Your Checking to an Online Bank?\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nJust because your traditional bank offers online banking services doesn’t mean you’re reaping the benefits of a bank that operates **_exclusively_** online. But are you really ready to say goodbye to the tradition of brick-and-mortar banking?  Since online banks do not have the overhead associated with running brick-and-mortar locations, they can afford to pass on the savings to customers.\nWhere Online Banks Save You Money\n---------------------------------\n**Fewer\/Lower Fees.**  While you may still expect certain fee-free requirements, overall they are easier to avoid. For instance, the monthly minimum balance required for fee-free checking through an online bank is typically lower than that of a traditional bank. Also, most online banks have arrangements with ATM networks that enable them to waive or reimburse you for ATM withdrawals.\n**Higher Interest Rates.**  While traditional banks offer interest-bearing checking accounts, you should expect the interest rate to be considerably higher through an online bank.\n**Where Online and Traditional Banks Break Even**\n-------------------------------------------------\nJust like your traditional bank, its online counterpart should be FDIC insured, meaning you are protected for up to $250,000. (Note, **never** do business with any bank – online or off – that is not FDIC insured.)\n**Where Online Banks Cannot Compete**\n-------------------------------------\nIf you love the physical aspect of the banking experience, you may have a hard time saying goodbye to your traditional bank. While an online bank representative may be just a phone call away, it’s not the same as being able to exchange a smile or look the teller in the eye. And there is something comforting about being able to walk into “your bank,” especially if it’s one of the big ones with locations you can visit pretty much anywhere in the country.\n**Tips for Choosing an Online Bank**\n------------------------------------\n* Shop around. There are a number of online banks to choose from, but some of the most popular include Ally Bank, USAA, and Capital One 360 (formerly ING Direct).\n* Make sure it is FDIC Insured.\n* Find out how check deposits are handled. For instance, can you deposit checks via your phone? Or do you have to physically mail in the check, which will mean waiting for it to arrive before you have access to the funds?\n* Find out potential fees associated with the account, and how to avoid them For instance, what is the minimum balance required? How many debit card transactions must you log monthly? And what other potential fees do you need to know about?\n* Check the ATM coverage to be sure you have access to conveniently located fee-free locations.\nStill not sure? Take it slow. Hold on to your traditional bank account while you give an online bank a go. END

TITLE: Online Checking Account and Online Banking CONTENT: | | | | \n: . END

TITLE: Non-Bank Banking - Credit Unions, Cash Management Accounts CONTENT: The Pros and Cons of Non-Bank Banking\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nBanks aren’t the only ones in the “banking” game. Besides using one of the big-box banks, you can choose to park your money at a credit union, money market mutual fund, or a cash management account. But is it worth the switch? You decide.\nIf you’re less-than-thrilled with your bank’s checking and savings options, consider the alternatives, which is not to say consider another bank. Credit unions not only offer more attractive checking and savings accounts than your bank. They also tend to be more customer (or in this case, _member_) friendly.\n**Pros**\n* Non-profit, member-owned. You reap the benefits via lower interest rates on loans and higher interest rates on savings.\n* Lower fees across the board. Another benefit of credit unions’ non-profit status.\n* CO-OP ATM network. Many credit unions have joined forces to provide more ATM access to members, sharing ATMs with one another at no additional cost to customers.\n* Bad credit not so bad. At least relative to a traditional bank’s take on the issue. Credit unions are far more accepting of less-than-stellar credit when it comes to extending loans to members.\n* Insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF).\n**Cons**\n* Eligibility requirements. You cannot just walk into any credit union and open an account. You must join first and doing so requires meeting certain eligibility requirements. Find one you’re eligible for via the credit union locator of the National Credit Union Administration.\n* Fewer bells and whistles. Expect to see the biggest difference in rewards programs and online account services.\n* Rising fees. Though credit union fees are still lower than banks, that’s not to say fees will not go up in the future. Keep an eye out.\n**Money Market Mutual Funds**\n-----------------------------\nIf you’re considering, or already have, a money market _deposit account_ with your bank, you may want to opt for a money market _mutual fund_ instead, offered by mutual fund companies.\n**Pros**\n* Typically higher returns on investments than a money market deposit account (or savings or checking account, for that matter).\n* Investments are relatively low-risk (e.g., CDs, Treasury Bills, etc.)\n* Money is easy to access, as you can write checks and make withdrawals on the account.\n**Cons**\n* Minimum opening balance required.\n* Minimum daily balance required.\n* May limit checks and withdrawals.\n* You will pay fees.\n* Not usually FDIC-insured.\n**Cash Management Accounts**\n----------------------------\nIf you have a nice chunk of money to invest but aren’t ready to tie it up in a long-term, difficult-to-liquidate investment, consider a cash management account through a brokerage firm. This allows you to combine the best of banking and investing options.\n**Pros**\n* Money in the account earns money market rates.\n* Write checks and make deposits, as you would with a regular bank account.\n* Use an ATM debit card, as you would with a regular bank account.\n* Insured up to $100,000 by the Securities Investor Protection Corporation.\n**Cons**\n* Requires a minimum opening deposit.\n* You will pay fees.\nIf the change you’re ready for isn’t quite as drastic as all that, consider mobile banking or online-only banking via sites like Ally and iGOBanking. END

TITLE: Non-Bank Banking - Credit Unions, Cash Management Accounts CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Non-Bank Banking - Credit Unions, Cash Management Accounts CONTENT: | | | | \n: . END

TITLE: How Lawsuits Work - Navigate Civil Litigation CONTENT: Basic Overview of the Litigation Process\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nBeing served a lawsuit can be a scary event for most of us, but it doesn't have to be. If you understand the three basic phases and the two intermediate steps associated with a lawsuit, you will feel more comfortable handling a lawsuit or filing a lawsuit against someone else.\nBasic Elements of a Lawsuit\n---------------------------\nThe three main components of a lawsuit are:\n1. **Complaint —** Plaintiff is stating all the facts regarding his case and the laws that are going to back up his case against the Defendant.\n2. **Answer —**  Defendant has an opportunity to address each of the Plaintiff's allegations by either admitting, denying, or claiming no knowledge of them and providing no additional information — other than simply denying what the Plaintiff is claiming.\n3. **Trial —**  If the case is not settled through arbitration, mediation, or settlement conference, the case will then proceed to trial to be heard by a jury of their peers.\nThe two intermediate phases of a lawsuit are:\n1. **Motions —** These are made by the Defendant to either dismiss, to strike, or request more information from the Plaintiff to prove his complaint is legitimate.\n2. **Discovery —** This is where both sides attempt to make a record of the truth through interrogatories, depositions, production of documents, and request for admissions to the court. This is a very important aspect of a lawsuit and should be very thorough and comprehensive, winnable cases have been lost due to insufficient or inadequate discovery.\nLawsuits are won by making a record of the Facts and Law during each of the five phases. To win as a Plaintiff, you must meet your burden of proof that the facts and the law in your case agree. To win as a Defendant, you have to prove that the Plaintiff's facts and law DO NOT agree, so that the Plaintiff will not be able to meet his burden of proof.\nIn a nutshell, the Plaintiff is trying to meet his burden and proof and the Defendant does all that he can do to shoot holes in the Plaintiff's case.\nSteps to Take When Navigating Through a Lawsuit\n-----------------------------------------------\nSTEP 1: \nAn incident occurs and a **Summons and Complaint** is filed by the Plaintiff. The Defendant is served this Summons via a Process Server.\nSTEP 2: \nAn Answer needs to be filed by the Defendant. Does the Defendant admit to the allegations?\n**Yes** - Default judgment is granted to Plaintiff. Case is over. \n**No** - A Motion to Dismiss is filed by the Defendant.\n* * *\nSTEP 3: \nWas the Motion to Dismiss, that was filed by the Defendant, granted by the court?\n**Yes** - If Motion to Dismiss was granted, case is dismissed. Case is over. \n**No** - A Motion for Judgment on the pleadings or a Motion for Summary Judgment can then filed by either the Plaintiff or the Defendant.\n* * *\nSTEP 4: \nWas the Motion for Judgment on the pleadings or the Motion for Summary Judgment granted by the court?\n**Yes** - The Judgment was granted to the moving party. Case is over. \n**No** - Proceed on to next step.\n* * *\nSTEP 5: \nNow we are in the Discovery phase of litigation. Depositions are taken, interrogatories obtained, and production of any documents are completed during this period. A pretrial conference is held. At this conference, was a settlement reached?\n**Yes** - Settlement agreement is drafted. Case is over. \n**No** - Proceed on to next step.\n* * *\nSTEP 6: \nCase now moves to trial and a date is set. At trial, jury selection takes place and the Plaintiff then presents his case. After the Plaintiff rests, the Defendant can file a Motion for Directed Verdict. Was this motion granted by the court?\n**Yes** - Court grants Defendant the Judgment on Directed Verdict. Case is over. \n**No** - Proceed on to next step.\n* * *\nSTEP 7: \nNow the Defendant can present their case to the court. After the Defendant rests, the Defendant can once again file a Motion for Directed Verdict. Was this motion granted by the court?\n**Yes** - Court grants Defendant the Judgment on Directed Verdict. Case is over. \n**No** - Proceed on to next step.\n* * *\nSTEP 8: \nThe judge now gives the jury their instructions and the jury is then excuse to begin deliberations. Once the jury has come to a decision, the court is notified and all the parties return to the courtroom. One person from the jury is chosen to read the verdict. The verdict is read to the court and it is recorded.\n* * *\nSTEP 9: \nLosing Party makes a motion for a new trial. Does the court grant this motion?\n**Yes** - Go back up to Step 5 and start all over again. \n**No** - Case is over.\n* * *\nNow obviously, we have made the above steps very short and sweet and easy to understand. There are so many other nuances within each step we could go on for pages, but, the purpose of this article is to give you a bare-bones understanding of the litigation process.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Pretrial Discovery - Gathering Evidence in a Lawsuit CONTENT: Pretrial Discovery - Tools Used to Uncover the Facts of a Lawsuit\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nThe early stages of a lawsuit involve the disclosure of evidence by each party which is known as pretrial discovery. Discovery is meant to eliminate surprises and to clarify what the lawsuit is about, should either party realize they should settle or drop the lawsuit.\nGenerally, most civil cases in the U.S. are settled right after discovery. After discovery, both sides are often in agreement regarding the strengths and weaknesses of the case and this results in a settlement which eliminates the expense of a trial.\nTypes of Discovery\n------------------\nHere are the different types of formal discovery tools that are frequently used in lawsuits.\n* **Requests for production of documents.** This is generally how discovery will take place in anything you might do. You will be asking for any proof that a creditor has regarding the debt. Requests for production are usually used to gather pertinent documents, such as contracts, employment files, billing records, or documents related to real estate.\n* **Depositions.** In a deposition, the parties meet face-to-face and answer questions under oath. The questioner can be either the party taking part in the lawsuit or the party's lawyer. The questions and answers are recorded and used as evidence. The deposition can be submitted in the form of a written transcript, a videotape, or both. In most states, either of the parties may take the deposition of the other party, or of any other witness. Both sides have the right to be present during oral depositions. Typically, in consumer credit lawsuits, depositions are not used.\n* **Interrogatories.** An interrogatory is a written list of questions which must be answered. In some states, an interrogatory is sent to a consumer along with a summons to trial. They are used exactly like depositions, any answers to questions in an interrogatory can and will be used against you.\n* **Requests for admission.** In a request for admission, one party asks the other party to admit, under oath, that certain facts are true or certain documents are genuine. The request for admission is also usually sent along with the summons and is required to be filed along with an answer.\n* **Sharing information about expert witnesses, and the expected testimony**. If an expert witness is to be called or submit testimony, this bit of discovery shares the background of the witness and what areas of expertise they will be testifying on.\n* **Physical or mental examinations of a person.** In general, the court where the action is pending may order a party whose mental or physical condition is in controversy to submit to a physical or mental examination by a suitably licensed or certified examiner. The court has the same authority to order a party to produce for examination a person who is in its custody or under its legal control. This discovery is rarely used in civil debt cases.\nIf allowed by your state or county rules of civil procedures, you should always ask for discovery at the minimum in the forms of requests for production of documents. You can also send your own interrogatories and requests for admissions. The only exception would be if you are sending a bill of particulars (only certain jurisdictions allow this), which can sometimes serve as all the discovery you need.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Pretrial Discovery - Gathering Evidence in a Lawsuit CONTENT: | | | | \n: . END

TITLE: What to Say to a Judge in Court CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nPeople are often scared out of their wits when faced with having to go to court. They don't know how to act or what to say when the judge asks them questions. Yes, it can make or break your case if you say the wrong thing, but you don't need to speak legalese or be experienced in court.\nHere are some general guidelines on what to say and do in court:\n* If you are not in the process of formally presenting your case, don't say ANYTHING unless judge asks you a question.\n* Don't EVER interrupt the judge.\n* Call the judge \"Your Honor\" if addressing the judge directly. At other times, you can refer to the judge as \"Your Honor\" or \"the Court\".\n* Stand when you are speaking.\n* If the judge asks you to go out in the hall to discuss a settlement with the Plaintiff's attorney, politely tell them you don't want to settle. Insist on moving forward with the case, even if that means going to trial.\n### How to Answer Distressing Questions Truthfully, but in Your Favor\n**Judge:** Is this your debt? \n**You:** Your Honor, the Plaintiff has provided no proof of this debt. To the best of my knowledge and evidence provided, this is not my debt.\n**Judge:** Did you ever have a card with Bank A? \n**You:** Yes, I did Your Honor, but to the best of my recollection, this card was paid off. In addition, the Plaintiff has provided no proof the debt is unpaid or even that this PARTICULAR debt is mine.\n### Plaintiff's Attorney Introduction of Evidence\n**Spoken Statements:** \nIf the Plaintiff is a collection agency or junk debt buyer, object to anything the attorney says as hearsay. The attorney and the plaintiff do not have intimate knowledge of the creation of the debt.\n**Written Evidence:**\n1. If the Plaintiff's attorney shows anything that wasn't included in the original summons\/complaint package, or wasn't provided in discovery, object on the basis that it wasn't included in discovery and cannot now be submitted. You can also object if the evidence is not authenticated, meaning that the evidence cannot absolutely be substantiated as a true copy of an original document.\n2. If any evidence isn't authenticated, object to it as hearsay. \"Authenticated\" means there is a letter from the issuing company stating that these are true copies of the original.\nIf you want an excellent example of what to say and what not to say to the judge in court, read one of our reader's experiences in court. You'll be glad you did! END

TITLE: What to Say to a Judge in Court CONTENT: | | | | \n: . END

TITLE: Pretrial Conference - Settling a Lawsuit Before Trial CONTENT: Should You Settle Your Case During a Pretrial Conference?\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIn our website, you can find numerous articles about credit repair, debt settlement, and bankruptcy. But what happens when you open your front door one sunny day to find a process server handing you a lawsuit. As part of our coverage on legal matters, this article covers that point in litigation just before your case is set to go to trial, the Pretrial Conference.\nPre-Trial and Case Management Conference\n----------------------------------------\nIn some courts these terms basically mean the same thing. California in particular uses the term Case Management Conference.\n### What is a Pretrial Conference?\nA pretrial conference is a scheduled meeting between the Defendant, Plaintiff, and their attorneys, conducted prior to trial. The conference is held before the actual trial judge or a magistrate (a judicial officer who possesses fewer judicial powers than a judge). A pretrial conference may be held prior to trial in both civil and criminal cases.\n### What is the Purpose of a Pretrial Conference?\nThe purpose of the pretrial conference is to assure that all parties are prepared to go on to trial, and to discuss the possibility of settling the case prior to going to trial. This conference is ordered by the court and is held in the courtroom to facilitate a face-to-face discussion. If the parties agree that all or a portion of the debt is owed, then those specific issues are not in dispute and can be settled by agreement without going on to trial.\nA pretrial conference may be held for the following reasons:\n* Settle the case before going to trial.\n* Help the court establish control over the case.\n* Discourage wasteful pretrial activities.\n* Improve the quality of the trial with thorough preparation.\n### What Do You Bring to a Pretrial Conference?\nWhen you come to a pretrial conference, you should bring the original Summons and Complaint, your Answer, and any other motions or legal documents you received from the court or the Plaintiff's attorney. If you have kept any type of personal log regarding the progression of the case, bring that along with you as well. You will not bring any witnesses to the pretrial conference - the only one attending is going to be you and your attorney.\nMost importantly, come to the conference prepared and with a game plan. Think hard and long about what will this lawsuit cost you if you go to trial versus what it will cost you to settle it at the conference. You may have to swallow your pride but in the long run, eating a little crow is better than spending a fortune in a legal battle.\nSettle or Not to Settle, That is the Ultimate Question\n------------------------------------------------------\nThe majority of those reading this article are probably going it alone, without the help of an attorney. We recommended that you go to the pretrial conference with an open mind and be ready to compromise and possibly settle. You need to be prepared and you need to analyze the Plaintiff's case against you. Do they have a strong case or do they have one based only on a Complaint with no backing documentation such as payment history or a contract. Since you are not paying an attorney at this point, it might be worth your while to see just what the Plaintiff might have against you.\nIf you are being represented by an attorney, then you will need to weigh the cost of your attorney with what can you settle this case for and end it quickly.\nRemember, the sole purpose of a pretrial conference is to settle the case before it goes to court. Judges want to settle as many cases as possible and they will try their hardest to get your case to settle. But, some cases are not settled at the pre-trial conference and a trial will need to be set. This is the last option that should be considered because of time and possible costs to one or both parties. If a case is set for trial, the Judge, at the pre-trial, will set a schedule of events, including dates to comply with discovery, motions, and subpoenas.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Legal Tool Kit to Handle a Litigation Case CONTENT: Legal Tool Kit — Everything You Need to Handle Litigation\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you have been looking through this website, you most likely see that we advocate do-it-yourself credit repair. But, can one handle their own debt litigation? Of course! Besides the wealth of free information on our site, there is a lot of free information on the Internet regarding litigation and how to handle your own lawsuit.\nLet's say you are taking on the legal firm of \"You Owe & Pay Now\" hired by one of those evil collection companies. You are going to need a set of tools to keep it all the documents and information in order and easy to find. Most of the materials are cheap and some you may already own. If you get these materials together and keep them in one place, it will be much easier to navigate the legal process. Being organized is half the battle and the better organized and prepared you are, the better your chances are for success.\nSupplies You Will Need to Handle a Lawsuit\n------------------------------------------\n1. A two-drawer filing cabinet or a cardboard file drawer to keep all of your papers organized and safe.\n2. File folders.\n3. Office supplies such as a stapler and staples, pens and paper, highlight pens, and yellow sticky pads.\n4. Legal size privacy envelops.\n5. Certified mailing cards and slips, which can be picked up at your local post office. It is easier to fill these out at home and bring the completed forms to the post office for mailing. You can also send things certified by printing your own labels at the USPS website.\n6. Recorder for your phone.\n7. Clipboard for your pre-printed log form to keep track of phone calls.\n8. A printer that can scan documents so you can e-mail them.\n9. Computer and printer. If you can not afford one, you can use a public computer at a local library or college campus.\n10. Flash drive or a data stick that you can save files to if you are using a public computer. This is also a great way to back up all your information in the case of a computer crash.\n11. A journal or diary to record how the collection calls have affected your ability to sleep, concentrate, and work. How it has affected your personal life and relationships. How it impacts your health. Feelings of loss, hopelessness, depression, thoughts of suicide. This journal can be for you, but it can also serve as a record for a potential claim of damages in addition to anything else claimed.\n12. Several three-ring binders and dividers in which to put the following:\n * State Rules of Evidence\n * Other court topics divided into separate sections. I had my binder organized with all documents from day one, with anticipated actions by the Plaintiff and my responses and a section on case law, and one with motions written up in advance with citations to keep me on task.\nSources for Free Legal Information\n----------------------------------\nBesides having all of the necessary supplies on hand, you will also need access to some free information regarding litigation. Here are some sites we have found and highly recommend:\n* Legal Forum — Our legal discussion group is a great place to see what others have gone through as well as a great place to ask questions.\n* Law Guru — This site has a search function for past legal questions, free legal advice, and other legal research tools. END

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TITLE: FACT Act Changes and Changes to the FCRA CONTENT: Fair and Accurate Credit Transactions Act — Changes to the FCRA\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nThe FACT Act (HR 2622) was signed into law by President Bush in December 2003. Officially titled the Fair and Accurate Credit Transactions Act of 2003, the FACT Act incorporates and extends the Fair Credit Reporting Act (FCRA), which had preemption provisions that expired in December 2003. The new act is aimed to:\n* Prevent identity theft\n* Improve the resolution of consumer disputes\n* Improve the accuracy of consumer records\n* Make improvements in the use of, and consumer access to, credit information\nPreventing Identity Theft\n-------------------------\nThe fraud provisions of the FACT Act do, thankfully, make it easier for a consumer to deal with fraud when it does occur. Unfortunately, they don't do much to prevent identity theft from happening, apart from:\n* Allowing military personnel to place blocks on their accounts while serving overseas.\n* Preventing merchants from printing credit and debit account numbers on receipts in their entirety.\nFraud provisions in the FACT Act include:\n* Simplified requirements for consumers to report any suspected fraud or identity theft.\n* A requirement that the credit bureau receiving such a consumer report share the information with other major bureaus, so the consumer need only make one call.\n* A credit bureau receiving an initial fraud\/identity theft report is required to advise the consumer of the right to receive 2 free credit reports in the 12 months immediately following the receipt of the information from the consumer.\n* Provides that individuals filing fraud\/identity theft information may not be included in lists provided to third parties who wish to solicit insurance or credit business for a period of 5 years, automatically opting out of their sell lists.\n* Stipulates that when a fraud or identity theft alert is in a credit report obtained by a user, the user must have policies and procedures in place to guard against establishing any new credit plans or credit extension, issuing additional cards or increasing credit limits for such customers unless they verify the true identity of the consumer making the request.\nThe credit bureaus have been providing free credit reports to those who report they may be a target of fraud. One call allows an initial block on the account for 90 days. Once a fraud victim confirms the ID theft has occurred by obtaining and providing a copy of a police report to one CRA within 90 days, all CRAs will place extended blocks on the victim's files.\nImproved Consumer Dispute Resolution\n------------------------------------\nThe old FCRA had no provision that allowed you, the consumer, to dispute inaccurate information directly with the furnisher of the credit. Rather, you'd dispute the item with a credit reporting agency. You could always challenge the original creditor for reporting inaccurate information, but this was largely based on case law and required court action in most cases.\nThe new FACT Act allows you to contact the furnisher directly for a reinvestigation. The furnisher must investigate the dispute and report the results back to you in the same time frame allowed agencies for reinvestigation. Credit reporting agencies have 45 days to conduct reinvestigations of disputed items resulting from free report requests, compared to 30 to 45 days for all other reinvestigations.\nIf they find the information to be inaccurate, they must correct the information with each credit reporting agency they've shared the incorrect information with.\nNote however that reinvestigation responsibility will not be initiated by a notice that comes from a credit repair organization, and that credit furnishers need not respond to frivolous disputes. If they do determine your dispute to be frivolous, they must notify you within 5 business days, tell you why they consider your dispute frivolous, and also tell you what information you must provide to convert the dispute into one that will start a reinvestigation.\nAnd any financial institution that submits negative information to a national credit reporting agency about you must send you a written notice that they have done so.\nAccess to Your Credit Information\n---------------------------------\nAll consumers, regardless of the state they call home, will now have the right to receive one free credit report annually from the national CRAs. The same will be true of all national specialty credit reporting agencies, a newly designated group of credit reporting agencies that collect information such as landlord-tenant, employment, or insurance information. Credit scores and how they are determined must be disclosed to consumers for a reasonable fee, as determined by the FTC. Consumers must be notified of this right.\nMortgage lenders must provide credit scores (along with information on key factors lowering a consumer's score) to those who apply for mortgage loans at no fee.\nPatriot Act Provisions Also Included\n------------------------------------\nThe USA Patriot Act stands for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001. That's a mouthful!\nThe Patriot Act has been incorporated into the new FACT Act in Section 627, allowing disclosure to governmental agencies for counterterrorism purposes. A confidentiality clause requires the consumer not be notified and that no note be made in the files that information was sought and obtained by the government.\n### Provisions Effective March 31, 2004\n(A) Section 111, concerning the definitions; \n(B) Section 156, concerning the statute of limitations; \n(C) Sections 312(d), (e), and (f), concerning the furnisher liability exception, liability and enforcement, and rule of construction, respectively; \n(D) Section 313(a), concerning action regarding complaints; \n(E) Section 611, concerning communications for employee investigations; and \n(F) Section 811, concerning clerical amendments.\n**_All other provisions became effective December 1, 2004._**\nThese include procedures to enhance the accuracy and integrity of information furnished to consumer reporting agencies, improved disclosure of the results of reinvestigation, and the duty to conduct a reasonable reinvestigation. These provisions should help to clear up many of the problems consumers have been encountering under existing law. END

TITLE: Types of Damages Awarded in Debt Lawsuits CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nCivil law deals with disputes between individuals, as opposed to criminal law which deals with a crime and legal punishment as a result of a criminal offense. Lawsuits are filed in civil law and damages are awarded to a person as compensation for a loss or injury.\nA person or company can sue another person or company for damages as set forth in the Fair Debt Collection Practices Act (FDCPA). The FDCPA allows someone to sue for \"actual damages\" which arise due to actions taken by a collection agency. Another term for actual damages is compensatory damages. There are other kinds of damages which can be awarded in these types of cases.\nCompensatory Damages\n--------------------\nCompensatory damages, also referred to as actual damages, is money that covers the actual injury or economic loss. Compensatory damages are intended to put the injured party in the position he was in prior to the injury. Compensatory damages typically include medical expenses, lost wages and the repair or replacement of property.\nGeneral Damages\n---------------\nGeneral damages are intended to cover injuries for which an exact dollar amount cannot be calculated. General damages are usually composed of pain and suffering, but can also include compensation for a shortened life expectancy, loss of the companionship of a loved one and, in defamation cases (libel and slander), loss of reputation.\nNominal Damages\n---------------\nNominal damages is a term used when a judge or jury finds in favor of one party to a lawsuit — often because a law requires them to do so — but concludes that no real harm was done and therefore awards a very small amount of money. For example, if one neighbor sues another for libel based on untrue things the second neighbor said about the first, a jury might conclude that although libel technically occurred, no serious damage was done to the first neighbor's reputation and consequentially award nominal damages of a dollar.\nPunitive Damages\n----------------\nPunitive damages are sometimes called exemplary damages, awarded over and above special and general damages to punish a losing party's willful or malicious misconduct. Punitive damages are not awarded in order to compensate the Plaintiff, but in order to reform or deter the Defendant and similar persons from pursuing a course of action such as that which damaged the Plaintiff.\nSpecial Damages\n---------------\nSpecial damages is an award that covers the winning party's out-of-pocket costs. For example, in a vehicle accident, special damages typically include medical expenses, car repair costs, rental car fees and lost wages.\nStatutory Damages\n-----------------\nStatutory damages are required by statutory law. For example, in many states if a landlord doesn't return a tenant's security deposit in a timely fashion or give a reason why it is being withheld, the state statutes give the judge authority to order the landlord to pay damages of double or triple the amount of the deposit.\nTreble Damages\n--------------\nTreble damages are lawyer speak for triple damages. To penalize lawbreakers, statutes occasionally give judges the power to award the winning party in a civil lawsuit the amount it lost as a result of the other party's illegal conduct, plus damages of three times that amount.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Information on the Consumer Credit Protection Act CONTENT: Consumer Credit Protection Act: What You Need to Know\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: February 5, 2018_\nWhat if you didn’t know what credit was going to cost until you got the bill? What if errors could stay on your credit reports with no dispute process? What if debt collectors could use whatever means they wanted to collect from you? What if they could garnish as much for your wages as they saw fit? What if credit repair companies could lie to you about what they’re able to do? Well, you’d be in a real financial mess with your credit repair options limited, if not non-existent. This is what makes the Consumer Credit Protection Act so groundbreaking and essential.\nSince 1968, the Consumer Credit Protection Act (CCPA) has been protecting consumers against credit abuses. This law includes many others, broadening credit protections through the Truth in Lending Act, Fair Credit Reporting Act, Wage Garnishment Law, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Electronic Funds Transfer Act, and Credit Repair Organizations Act.\nAs stated in the CCPA, “it is the purpose of this title to assure a **meaningful disclosure** of…\n“**Credit terms** so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices…\n“The **terms of leases of personal property** for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.”\n### **Finance charges and annual percentage rates**\nThe CCPA states that finance charges may include:\n* Interest, time price differential, and amount payable under a point, discount, or other system of additional charges\n* Service or carrying charge\n* Loan fee, finder's fee, or similar charge\n* Fee for an investigation or credit report\n* Premium or other charge for any guarantee or insurance protecting the creditor against default or other credit loss\n* Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender (for delivery to the broker) whether such fees are paid in cash or financed\nAs for annual percentage rates, the CCPA outlines:\n* Computation of rate of finance charges for balances within a specified range\n* Allowable tolerances for purposes of compliance with disclosure requirements\n* Use of rate tables or charts having allowable variance from determined rates\n* Authorization of tolerances in determining annual percentage rates\n### **Exempted transactions**\nSome exceptions do apply. For instance, the CCPA does _not_ apply to credit transactions involving the extension of credit for business, commercial, agricultural, governmental, or organizational purposes.\nRead the CCPA in its entirety.\n**Other Acts Included Under the Consumer Credit Protection Act**\n----------------------------------------------------------------\n### Truth in Lending Act\nThe TILA requires lenders to make certain disclosures before extending credit to you. This applies to both _open end_ and _closed end_ credit, also known as _revolving_ and _non-revolving_ credit, respectively. \nThis law covers what must be disclosed to you: \n* About finance charges\n* In your billing statements\n* In ads and applications for credit cards\n* In open end credit secured by a home\n* About payment schedules for closed end credit\nLearn more about the TILA.\n### **Fair Credit Reporting Act**\nThe FCRA requires that credit reporting agencies and data furnishers provide accurate and fair reporting on your credit history. It also covers consumer privacy.\nSpecifically, the FCRA says: \n* You have the right to see your consumer reports and credit scores\n* Data furnishers must ensure accuracy of reported information\n* You have the right to dispute consumer report errors\n* Consumer reporting agencies must investigate disputes and correct inaccuracies\n* Not just anyone can see your consumer reports\n* You must be notified if something in your consumer reports results in adverse action\n* You can opt-out of prescreened offers\n* Negative information can only stay on your consumer reports for so long\n* You have the right to place fraud alerts on your consumer reports\nLearn more about the FCRA.\n### **Wage Garnishment Law**\nAlso known as Title III of the CCPA, the Wage Garnishment Law limits how much of your wages can be garnished to pay a debt. It also prohibits employers from firing you simply because your wages are being garnished (unless they are being garnished for multiple debts).\nLearn more about the Wage Garnishment Law. \n### **Equal Credit Opportunity Act**\nThe ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, or age. Creditors are also prohibited from denying you credit if public assistance represents some or all of your income.\nThat said, creditors can ask questions _related_ to marital status, children, age, and income under certain circumstances. For instance, they can ask about your spouse if the two of you are applying for a joint account of if you live in a community property state.\nYou could also be asked to volunteer information about your race, sex, and national origin, but only as a means of helping the government detect discrimination.\nLearn more about the ECOA.\n### **Fair Debt Collection Practices Act**\nThe FDCPA requires debt collectors to follow a set of standards for collecting on debts owed by you. Specifically, this law covers:\n* Locations where they are prohibited from contacting you\n* Times when they are prohibited from contacting you\n* The type of statements they are prohibited from making\n* The type of language they are prohibited from using\n* What they can say to third parties about your debt\n* Unfair practices \nLearn more about the FDCPA. \n### **Electronic Funds Transfer Act**\nThe EFTA requires that electronic funds transfers generate receipts so that you have a record of your transactions, an essential reference in the event of an error. This covers receipts for each individual transfer, as well as periodic statements and disclosures.\nLearn more about the EFTA.\n### **Credit Repair Organizations Act** \nThe CROA protects consumers from abuses in the credit repair industry. It covers what credit repair companies are prohibited from doing, like making untrue or misleading statements or demanding upfront payment for services they haven’t completed. But it also covers what credit repair companies _must_ do, like providing with you a written contract outlining the services you are paying them for, as well as the allowance of 3 business days to cancel your contract.\nLearn more about the CROA. END

TITLE: Information on the Consumer Credit Protection Act CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Account Stated vs Contract Defenses in Credit Card Lawsuits CONTENT: Account Stated and Written Contract — Defenses in a Lawsuit\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 21, 2017_\nBefore the Internet and e-mail, a credit card agreement was signed by the consumer and sent into the issuing bank for approval. However, these days most credit cards are issued online where there is no signature needed on a contract. This lack of a written signed contract comes into play during lawsuits on defaulted credit card debt.\nIf you are being sued for credit card debt, there are two different ways the Plaintiff can say you, the Defendant, entered into a contractual agreement with the original creditor. This is crucial because if they say you became indebted via a contract, they will have to provide one in court in order to win.\n**Your method of answering the complaint will be different based on whether or not the Plaintiff is claiming \"Account Stated\" or \"Entered into a Contract.\"**\nAccount Stated Basis of a Lawsuit\n---------------------------------\nMost credit card companies cannot produce a contract with your signature, digital or other wise, as part of their case against you. This can get the case tossed out immediately. The easiest thing for a Plaintiff to do when suing you is to declare the contract is _**account stated**_. If they use account stated as the contractual agreement, no written contract is required as evidence. This makes it much easier to win their case.\nThe other big advantage to establishing an account as account stated is that the cause of action is the account stated aspect of the contract itself. If the Plaintiff is basing their claim on a contract, many times you can get the case thrown out because **no cause of action was stated**. If their case is based on account stated, the cause of action is built in.\nDifference Between a Written Contract and an Account Stated Contract\n--------------------------------------------------------------------\nTo answer this question, we have to give you a mini legal lesson.\nClassic contract law in general gives the definition of a purchase contract as: one party buys at an agreed-upon price and pays per the terms of the contract. From there, should a default occur, it's all a matter of how well the terms of the contract can be proven:\n* The most enforceable contract is the one where both parties sign a witnessed, signed written agreement.\n* A signed but not witnessed contract is the next best thing.\n* The least enforceable contract is an oral contract, since what exactly was agreed upon is difficult to prove.\n* Somewhere in the middle between a signed contract and an oral contract is the account stated contract. It assumes the _use_ of an issued credit card means the consumer agrees to the credit card contract terms.\nIt should be noted, that once proved, all of the above contracts are equally legally binding. It's the difficulty of proof that distinguishes them.\nHow Does One Know if the Plaintiff Maintains the Contract is Account Stated?\n----------------------------------------------------------------------------\nYou ascertain what type of contract the Plaintiff is alleging by reading the allegations in the complaint. Remember, an allegation is every separate action the Plaintiff claims you did to harm them. The allegations are usually presented in a numbered list. The type of contract the Plaintiff is claiming is usually in the top three allegations. Based on the above information, let's see if you can tell which kind of contract is indicated in each of these allegations.\n### Quiz: What Type of Contract?\n(answers below)\n1. Defendant is indebted to Plaintiff for goods and services plus contract interest purchased on an open account on a theory of account stated.\n2. The Defendant owes a sum of $XXXX.XX dollars to Plaintiff for charges and\/or cash advances incurred on a credit account as evidenced by the affidavit.\n3. The defendant was indebted to Providian Bank and failed to make payments.\n4. The defendant entered into a contract with the Plaintiff.\n### Answers\n1. Account stated.\n2. Most likely it would be an account stated, but without looking at the affidavit it's tough to know. Here's a typical affidavit of debt. It's usually possible to get the affidavit thrown out. If the affidavit is thrown out, then the Plaintiff must produce the contract.\n3. No method of contractual indebtedness was stated, so this would most likely be assumed to be a written contract.\n4. This assumed a written contract.\nHow to Approach an Account Stated Lawsuit\n-----------------------------------------\n**Here is the full Account Stated Doctrine.** \nGenerally, an account stated is \"an agreement based upon prior transactions between the parties with respect to the items composing the account, and the balance due, if any, in favor of one of the parties.\" To achieve an account stated, the agreement must amount to a recognition of a debt by a party, with a promise, express or implied, to pay the debt. This recognition can be established by a creditor delivering to a debtor a statement regarding the account and the amount owed. The receiver\/debtor is bound to examine the statement, and if he admits it to be correct, a binding account stated is established. Once an account stated is established, it acts as an admission by both parties that the amount is due.\nStated simply, an account stated is generally established when a debtor fails to object to a bill from his creditor within a reasonable time.\nQuestions to Ask When Considering Defenses You Can Use to Attack the Validity of Account Stated Cases\n-----------------------------------------------------------------------------------------------------\n* How can the Plaintiff prove that the statement was held by the consumer without objection?\n* How can the Plaintiff prove that the consumer received the statement?\n* Is it sufficient for the Plaintiff to claim that a statement was mailed, but not paid?\n* The most common way to defeat an action for account stated is to show that the debt claimed is new, i.e., that there was no prior course of dealing between the parties or, at best, only a very short period with very few transactions. Therefore, the contract AND the statement of account are required (proof of the length of the debt).\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Account Stated vs Contract Defenses in Credit Card Lawsuits CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Understanding the Equal Credit Opportunity Act CONTENT: Equal Credit Opportunity Act: What Creditors Cannot Do\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: November 30, 2017_\nWhether you’re trying to repair your credit, or maintain the good credit you already have, you need to know your rights when it comes to credit approval. The Equal Credit Opportunity Act is a 1974 law that protects consumers from credit discrimination. It’s pretty straightforward, prohibiting discrimination based on race, color, religion, national origin, sex, marital status, or age. But there’s plenty of fine print that requires a deeper understanding. Here’s a summary of what you need to know.\nWho must comply with the ECOA\n-----------------------------\nGenerally speaking, any entity or person that extends credit must comply with the Equal Credit Opportunity Act. More specifically, the FTC states that the law applies to \"banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in a decision to grant credit or in setting the terms of that credit, including real estate brokers who arrange financing, must comply with the ECOA.\"\nIn this article, those who must comply with the ECOA will be referred to as _creditors_, with the understanding that it refers to all of the specific entities (or individuals) listed above.\n**What the ECOA says creditors _cannot_ do**\n--------------------------------------------\nCreditors **cannot deny you credit** — or **determine credit terms** — based on:\n* Your race, color, religion, national origin, sex, marital status, or age (unless you are under 18, as you cannot legally enter into a signed contract)\n* The fact that public assistance represents part — or even all — of your income\nThat said, the ECOA makes clear that these topics are not completely off-limits to creditors, meaning _inquiries_ may still be made under certain circumstances.\n### **In the fine print**\n### **Race, sex, and national origin**\nThe FTC says you may be asked your race, sex, and national origin to help the government detect discrimination. However, you are not required to answer and, if you do, this information cannot be used to discriminate against you.\nNote, national origin should not be confused with immigration status, as a creditor can use that information to determine whether the length of time you will be in the U.S. will be sufficient to pay off the debt.\n### **Marital status**\nThe ECOA can ask about marital status if you:\n* Apply for a joint account\n* Apply for credit secured by property\n* Live in a community property state\nNote, wording is very important. They cannot ask if you are _divorced_ or _widowed_; their only options are _married_, _unmarried_, or _separated_. You also cannot lose credit accounts just because your marital status changes.\n### **Spouse**\nThe ECOA can ask about your spouse if you:\n* Are applying for a joint account together\n* Want your spouse to be able to use the account\n* Depend on your spouse’s income (including alimony or child support from a _former_ spouse)\n* Live in a community property state\n### **Children**\nThe ECOA cannot ask about your plans for future children, but can ask about expenses specific to the dependent children you already have.\n### **Age**\nThe ECOA says creditors can ask your age, but may only use it as a determining factor if:\n* You are under 18, meaning you are too young to sign contracts\n* You are 62 or older and it will mean more favorable credit terms\n* You are about to reach retirement age and it will affect your future income\nYou also cannot lose a credit account just because you reach a certain age or retire.\n### **Income**\nObviously, creditors are going to consider your income. But what creditors cannot do is discriminate about the following _types_ of income they will consider.\nCreditors cannot refuse to consider income from:\n* Public assistance\n* Part-time employment\n* Social security\n* Pensions\n* Annuities\n* Alimony\n### **Credit assistance programs**\nCreditors may refuse to extend credit if you are enrolled in a credit assistance program \"if such refusal is required by or made pursuant to such program.\"\n**What the ECOA says creditors _must_ do**\n------------------------------------------\nAfter you submit an application for credit, the creditor must:\n* Let you know the status of the application within 30 days\n* Provide you with reasons why you are not approved for credit\n* Provide you with reasons for why you are offered less than favorable credit terms (note, this does not apply if you _accept_ the terms)\n* Provide you with reasons why an existing credit account is cancelled — or terms are downgraded to less favorable terms (note, this does not apply if the account is inactive or you haven’t been making your payments)\n* Provide you with an appraisal report (if requested by you) \"used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential real property.\"\nYou have the right to get credit:\n* In your birth name or your married name (which can be just your spouse’s last name or a combination of your birth and spouse’s last name)\n* Without a co-signer (if you qualify)\n* Using a co-signer who is not your spouse\n### **Red flags**\nAccording to the Consumer Financial Protection Bureau (CFPB), credit discrimination isn’t always easy to spot, or even intentional. But there are red flags that the CFPB says to be on the lookout for:\n* You are treated differently in person than on the phone\n* You are discouraged from applying for credit\n* You hear the lender make negative comments about race, national origin, sex, or other protected groups\n* You are refused credit even though you qualify for it\n* You are offered credit with a higher rate than the one you applied for, even though you qualify for the lower rate\n* You are denied credit, but not given a reason why or told how to find out why\n* Your deal sounds too good to be true\n* You feel pushed or pressured to sign\n**What creditors _can_ consider**\n---------------------------------\nWhen deciding whether to extend credit to you – and the _terms_ of that credit — creditors can consider your credit, income, expenses, debt, debt-to-income ratio, and whether you have collateral necessary to secure a loan (if applicable).\n### **How to file a complaint**\nDo you believe a creditor has discriminated against you based on your race, color, religion, national origin, sex, marital status, age, or income source? The FTC and Consumer Financial Protection Bureau want to hear about it. Submit a complaint to the [FTC here](;panel1-1) and the CFPB here. END

TITLE: Understanding the Equal Credit Opportunity Act CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Wage Garnishment Law - Info on Title III of CCPA CONTENT: Wage Garnishment Law: What You Need to Know About Title III\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 1, 2018_\nIf you are in default on one or more debts, the prospect of wage garnishment is terrifying. You’re not paying your debts because you cannot _afford_ to pay your debts; wage garnishment gives you no choice. (You’ll also end up in serious need of credit repair.) Get the facts about Wage Garnishment Law, better known as Title III of the Consumer Credit Protection Act (CCPA). Find out when your wages can be garnished, how much they can take, and how you may be able to avoid it through a Wage Garnishment Judgment Exemption.\n**When Your Wages Can Be Garnished**\n------------------------------------\nWhen you default on a debt, the creditor can sue you for the unpaid balance. Assuming the debt is accurate, and the court finds in the creditor’s favor, your employer can be ordered to garnish your wages for payment. Of course, if the creditor is the IRS, they need not go through a judge or court proceeding at all; they can order the garnishment directly through your employer.\n### **Types of wages that can be garnished**\nAny “compensation for personal services” can be garnished:\n* Wages\n* Salaries\n* Commissions\n* Bonuses\n* Other (e.g., payments from a pension or retirement program or an employment-based disability program)\nTips are an exception. As explained by the U.S. Department of Labor:\n“The cash wages paid directly by the employer and the amount of the tip credit claimed, if any, by the employer are earnings for the purposes of the wage garnishment law. Tips received in excess of the tip credit amount or in excess of the wages paid directly by the employer (if no tip credit is claimed or allowed) are not earnings for purposes of the CCPA.”\n### **How much can be garnished**\nThere are limits to how much can be garnished from your paycheck. And garnishment can only come from your _disposable earnings_ — that is, how much is left after meeting your obligations for taxes, Social Security, Medicare, etc.\nFrom your disposable earnings, the amount that can be garnished is the lesser of:\n* 25 percent OR\n* Amount that exceeds 30 times the federal minimum hourly wage ($7.25)\nFor instance, if you get paid weekly, and your disposable earnings are:\n* $217.50 or less, nothing would be garnished\n* $217.51-289.99, anything above $217.50 would be garnished\n* $290 or more, maximum 25 percent would be garnished\nIf you get paid every 2 weeks, and your disposable earnings are:\n* $435 or less, nothing would be garnished\n* $435.01-579.99, anything above $435 would be garnished\n* $580 or more, maximum 25 percent would be garnished\nThat said, there are exceptions.\n### **Spousal and child support**\nYour disposable earnings can be garnished by up to:\n* 50 percent for spousal or child support if you have _another_ spouse or child you are supporting (i.e., those in addition to whoever is named in the order)\n* 60 percent for spousal or child support if that is the _only_ spousal or child support you are providing\n### **Federal taxes**\nIf you owe back taxes, the federal government is not limited by the aforementioned percentages, but must leave you with enough to cover basic living expenses. The way the amount is determined depends on your number of dependents and deductions.\nConsider this example from TurboTax:\n“During 2017 for example, a single parent with two children who files as head of household can be left with as little as $413.46 per week. This means that if you earn $1,000 per week, the IRS takes $586.54 of it, and if you earn $2,000 per week, it can take $1,586.54. However, the amount of your garnishment will depend on how much tax you owe.”\nAgain, unlike other debt collectors, the federal government does not need a judgment to garnish your wages; they can do it directly through your employer.\n### **State taxes**\nLaws will vary by state but the amount garnished cannot exceed that of the federal limit.\n### **Non-tax federal debt**\nOther laws govern garnishment specific to non-tax debts owed to the federal government:\n* The Debt Collection Improvement Act allows federal agencies (or collection agencies they have hired) to garnish up to 15 percent of your disposable income\n* The Higher Education Act allows the Department of Education’s guaranty agencies to garnish up to 10 percent of your disposable income for student loans in default\nA court order is not necessary in either case.\n### **Bankruptcy**\nWhen you are in the middle of bankruptcy proceedings, wages cannot be garnished from your paycheck (with the exception of spousal or child support). After bankruptcy, creditors cannot garnish wages that were discharged, but any debt that was _not_ discharged is fair game again.\n### **Voluntary wage assignments**\nIf you grant a creditor the right to take money out of your paycheck, it is called a voluntary wage assignment (which we do not recommend). This is different from wage garnishment, in that there was no judgment against you. It was simply a contract entered into by you and a creditor.\nUnfortunately, Title III does not cover voluntary wage assignments, so you are not protected by any restrictions. That said, some states do have such laws on the books, so check with your State Attorney General’s office for information specific to where you live.\n### **Employer responsibilities**\nWhen your employer is ordered to garnish your wages, they must provide you with a Wage Withholding Order. Unless you are able to stop it (see _Wage Garnishment Judgment Exemption_ below), the employer is required to begin the wage garnishment 30 days from then.\nTitle III also prevents your employer from firing you for wage garnishment…unless you have more than one. If you have multiple garnishments coming out of your paycheck, your employer is free to let you go.\n### **Prioritization of multiple garnishments**\nTitle III does not cover the order in which multiple garnishments should be satisfied; that’s a decision left up to the court or enforcing agency.\n### **The impact of state law on garnishment limits**\nThe law that applies — state or federal — will be the smaller garnishment amount of the two.\n### **How wage garnishment affects your credit**\nA wage garnishment will not show up on your credit reports, so it will not affect your credit score directly. However, the defaulted debt that led to the garnishment can stay on your credit reports for up to 7 years, as can the public record of any judgment against you.\n**How to avoid wage garnishment**\n---------------------------------\nThe most obvious way of avoiding wage garnishment is to avoid defaulting on your debts. If that is not possible, the next best thing is keeping an open line of communication between you and your creditors so that some sort of payment plan can be worked out. If it’s too late for that, and you have already received the Wage Withholding Order, try filing a Wage Garnishment Judgment Exemption.\n**What happens if your rights are violated**\n--------------------------------------------\nIf you believe your Title III rights have been violated, file a complaint with the Wages and Hours Division. END

TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: November 2, 2017_\nHow can you be expected to open a credit card or take out a loan if you aren’t told all the terms of the agreement? You can’t, which is why we have the Truth in Lending Act. Enacted in 1968, this law requires lenders to make certain disclosures before extending credit to you. It’s a long list of requirements, but we’ve summarized the basics for you here, including what lenders must state in ads and applications, and what must be included in your billing statements.\nOpen End Credit\n---------------\nThis is also known as _revolving_ credit, meaning there is no end date for it. This includes **credit cards**, **home equity lines of credit**, and **personal lines of credit**.\nBefore you are extended open end credit, the lender must disclose the following:\n* How long you have to pay before finance charges will be imposed on charges you make\n* How they will determine the balance that you are assessed finance charges on\n* How they will determine the amount of the finance charge itself\n* Other types of charges that may be assessed\n* In the case of secured credit cards, acknowledgement of the deposit received\nThe lender must also provide you with a **statement** each billing cycle, which should include:\n* Your balance at the beginning of the statement period\n* Breakdown of each transaction during the period (date, description)\n* Amount credited to your account during the period\n* Finance charges imposed during the period\n* Balance on which the finance charge is based\n* Your balance at the _end_ of the statement period\n* When you must pay the end balance in order to avoid finance charges\n* Where you can mail inquiries about your bill\n* A minimum payment warning that reads something like this: \"Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance.\"\n* How long it would take you to pay off the balance if you only make minimum payments on the balance, and how much that would cost you\nIn **ads and applications for credit cards**, lenders must disclose:\n* Annual percentage rates\n* Annual fees and other fees\n* Grace periods for avoiding finance charges (or statement that there is no grace period)\n* How balances are calculated\n* Refer to temporary annual percentage rates as \"introductory\"\nFor **open end credit secured by a home**, lenders must disclose:\n* Fixed annual percentage rate\n* Variable percentage rate\n* Other fees\n* Repayment options\n* Statements addressing balloon payments, negative amortization (if applicable), and tax deductibility\n**Closed End Credit**\n---------------------\nThis is also known as _non-revolving_ credit or _installment_ credit — credit that ends once it is paid off. This includes **auto loans**, **student loans**, **mortgages**, and **personal loans**.\nBefore you are extended closed end credit, the lender must disclose the following:\n* Amount financed\n* Finance charge\n* Total of payments (amount financed + finance charge)\n* Payment schedule\n* If secured, acknowledgement of the security received\n* Late payment fee\n* Additional disclosures specific to mortgages\nLearn more about the difference between revolving and non-revolving credit.\n### **More on these disclosures**\nAgain, the required disclosures listed here are summarized. To see the specific language of each — as well as more detailed information — you can take a look at the [Truth in Lending Act](;edition=prelim) yourself. It’s a lengthy document, but we can at least tell you where to look so you don’t have to weed through the whole thing.\nYou can scroll through the Act to find the following sections, or you can click the links to go straight to them via Cornell Law School’s website.\nFor more on:\n* Open end credit, see Section 1637\n* Open end credit secured by consumer’s principal dwelling, see Section 1637a\n* Closed end credit, see Section 1638\n### **Other laws you need to know**\nCredit reporting agencies and debt collection companies have strict laws to follow, too. Get the facts in our Quick Guide to the Fair Credit Reporting Act and FDCPA Violations: What Debt Collectors Cannot Do. END

TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT: | | | | \n: . END

TITLE: File a Motion to Strike Plaintiff's Affidavit of Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you are in the middle of a lawsuit, hopefully you have already read our articles explaining how to answer a summons and complaint and how a lawsuit works. Having digested all of that information, you are now ready to move on to the next phase of your lawsuit, filing a Motion to Strike because part of what you received along with your Summons and Complaint is an Affidavit of Debt from the Plaintiff.\nWhat is an Affidavit of Debt?\n-----------------------------\nLet's start at the beginning so you fully understand what you are reading as you flip through all the legal pages contained in that lovely lawsuit a process server just handed you. It is bad enough he just spoiled your day, but now you have to read all of this mumbo-jumbo and make some sense of it all.\nAn affidavit is a sworn statement in writing, so therefore, an affidavit of debt is a sworn statement from an employee of the Plaintiff (i.e., collection agency) stating they are intimately familiar and\/or aware of the methods of record keeping at the original creditor concerning the debt in question, and they can certify the information in the complaint is true. They also usually state that they've examined the sale or assignment records that establish the relationship between the original creditor selling\/assigning to the collection agency or junk debt buyer.\n**Note:** These affidavits are sometimes notarized, but their validity is unchanged whether or not this is the case.\nIf you, the Defendant, do not object to this affidavit, the court will assume the debt is valid and the debt collector will have the right to sue you, and the suit is proper. You will lose if this happens. Fortunately, most of the time these affidavits are fraudulent or contain false evidence, but you must file a motion to strike so that this evidence can get thrown out of court.\nHere is an example of an affidavit of debt:\n**Plaintiff's Affidavit of Indebtedness and Ownership of Account**\nI am an authorized representative for ACME Collection Agency (hereafter the \"Plaintiff\") and hereby certify as follows:\n1. I have personal knowledge regarding Plaintiff's creation and maintenance of its normal business records including computer records of accounts receivables. This information was regularly and contemporaneously maintained during the course of the Plaintiff's business. I am authorized to execute this affidavit on behalf of Plaintiff and the information below is true and correct to the best of my knowledge, information and belief based on business records maintained with respect to the account.\n2. The records provided to Plaintiff have been represented to include information provided by the original creditor. Such information includes the debtors name, social security number, account balance, and identity of the original creditor and account number.\n3. Based on the business records maintained on account XXXXXXXXXX (hereafter \"account\"), which are a compilation of the information provided upon acquisition and information obtained since acquisition, the account is the result of the extension of credit to \"name\" by original creditor, on or about (date of the origination). Said business records further indicate the account was then owned by ACME Huge Bank. Acme Huge Bank later sold and\/or assigned portfolio 8044 to Plaintiff's assignor which included the defendant's account on (date of assignment). Thereafter, all ownership rights were assigned to, transferred to, and became vested in Plaintiff, including the right to collect the purchased balance owing $1,487.64 plus any additional accrued interest.\n4. To the best of my knowledge and belief, the Defendant is not a minor or mentally incompetent.\n5. Based on business records maintained in regard to the account, the above stated amounts are justly and duly owed by the Defendant to the Plaintiff and that all just and lawful offsets, payments, and credits to the account have been allowed. Demand for payment was made more than 30 days ago.\nSigned, \nClueless Employee \nACME Collection Agency\nSound scary? Don't worry, we will show you how this affidavit is nonsense and complete hearsay.\n### Court Cases Where Affidavits Were Determined to be False or Fraudulent\nDebt buyers regularly submit affidavits that purport to be made on personal knowledge but in fact are based on reading a computer screen. For example:\n* Luke v. Unifund CCR Partners, No. 2-06-444-CV, 2007 Tex.App. LEXIS' 7096 (2nd Dist. Ft. Worth Aug. 31, 2007).\n* Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez, 10 Misc. 3d 1058A; 809 N.Y.S.2d 482 (N.Y.County Civ. Ct. 2005):\n* Todd v. Weltman, Weinberg & Reis Co., L.P.A., 434 F.3d 432 (6th Cir. 2006);\n* Delawder v. Platinum Financial, 443 F. Supp. 2d 942 (S.D.Ohio March 1,2005);\n* Griffith v. Javitch, Block & Rathbone, LLP, 1:04cv238 (S.D.Ohio, July 8, 2004);\n* Gionis v. Javitch, Block & Rathbone, 405 F. Supp. 2d 856 (S.D.Ohio. 2005);\n* Blevins v. Hudson & Keyse, Inc., 395 F. Supp. 2d 655 (S.D.Ohio 2004), later opinion, 395 F.Supp.2d 662 (S.D.Ohio 2004);\n* Stolicker v. Muller, Muller, Richmond, Harms, Meyers & Sgroi, P.C., 1:04cv733 (W.D.Mich., Sept. 8, 2005).\nIn the **_Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez_** case, an affidavit was submitted from a Ms. Bergman who claimed to be V.P. of Palisades and familiar with business record keeping practices. Being familiar with records in the course of doing business is one way debt collectors can side-step the hearsay exception:\nMs. Bergmann does not claim to be familiar with AT&T's record keeping practices, but only with the method by which Plaintiff maintains the accounts it purchases from others. _The mere fact the Plaintiff obtained the records from AT&T and then retained them is an insufficient basis for their introduction into evidence._ Therefore, the Court cannot rely on the account statements which Ms. Bergmann proffered to establish Defendant's default.\n### Combat False Affidavits Based on Hearsay Rules\nAttack the authority of the person writing the affidavit:\n1. Subpoena the Affiant (person writing the affidavit) to appear in court for testimony. Usually this person will be \"unavailable.\"\n2. File a subpoena for the employment record and resume of the Affiant. There may be some fighting by the Plaintiff's attorney but since they are claiming to be knowledgeable, this is not an unreasonable request.\n3. Does the employee look like he or she has knowledge of record keeping? If this person has only been employed to contact debtors on the telephone, obviously there is no experience.\n4. If the Affiant's experience looks questionable, pose the question as to how he\/she can know the original creditor's methods of keeping records.\n5. What if the Affiant is employed by the original issuer of the credit card? Even if he\/she is an employee of the original creditor, does he\/she have proper experience to be a record keeper?\n6. Cite the case law given here showing that affidavits are known to be false and misleading.\n7. Stated in your motion filed with the court that \"the Affiant's employment resume shows he\/she cannot have knowledge of the original creditor's bookkeeping practices, and the fact that she is not available to testify in court - and may not even exist along with the past used of falsified affidavits in other states by this JBD points to this affidavit of being highly suspect and should be stricken.\"\n8. Does the Affiant have the necessary background to be a record keeper? If so, is there a claim they are familiar with the original creditor's record keeping? What is the proof for their statements?\n9. Cite cases where affidavits are purported to be made on personal knowledge, but in fact are based on reading a computer screen.\n * Luke v. Unifund CCR Partners, No. 2-06-444-CV, 2007 Tex.App. LEXIS' 7096 (2nd Dist. Ft. Worth Aug. 31, 2007)\n * Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez, 10 Misc. 3d 1058A; 809 N.Y.S.2d 482 (N.Y.County Civ. Ct. 2005)\n * Todd v. Weltman, Weinberg & Reis Co., L.P.A., 434 F.3d 432 (6th Cir. 2006)\n * Delawder v. Platinum Financial, 443 F. Supp. 2d 942 (S.D.Ohio March 1,2005)\n * Griffith v. Javitch, Block & Rathbone, LLP, 1:04cv238 (S.D.Ohio, July 8, 2004)\n * Gionis v. Javitch, Block & Rathbone, 405 F. Supp. 2d 856 (S.D.Ohio. 2005)\n * Blevins v. Hudson & Keyse, Inc., 395 F. Supp. 2d 655 (S.D.Ohio 2004), later opinion, 395 F.Supp.2d 662 (S.D.Ohio 2004)\n * Stolicker v. Muller, Muller, Richmond, Harms, Meyers & Sgroi, P.C., 1:04cv733 (W.D.Mich., Sept. 8, 2005)\n10. File your motion to strike the affidavit of debt with the court.\n11. At this point, the affidavit should be stricken, and hopefully the case will be dismissed.\n### Sample Motion to Strike Plaintiff's Affidavit of Debt\n**PLEASE DO NOT JUST CUT AND PASTE** as every motion is different. One size does not fit all. If you merely cut and paste, you will lose the case. In addition, you need to review and understand your state\/county Rules of Civil Procedures when filing your motion. Improper filing of your motion will cause it to be denied.\nIN THE JUSTICE COURT OF (City Name) \nCounty Name, STATE OF\nCase Number: XXXXXXX \nCollection Agency, \nPlaintiff\nvs\nJohn Q. Public, \nDefendant\n**MOTION TO STRIKE AFFIDAVIT OF DEBT IN SUPPORT OF PLAINTIFF'S CLAIMS**\nComes now, Defendant and respectfully states the following:\n1\\. Plaintiff has submitted into evidence an affidavit claiming that the affiant has personal knowledge of business records related to the aforementioned debt. AFFIDAVIT OF DEBT IN SUPPORT OF PLAINTIFF'S CLAIMS (hereinafter referred to as \"EXHIBIT A\").\n2\\. The affiant writing the AFFIDAVIT OF DEBT (Exhibit A) does not explain how the business records came into her possession, only that to the best of her belief they \"represent\" the actual records from the original creditor, Gigantic Credit Card Company.\n3\\. Affiant of AFFIDAVIT OF DEBT does not claim to have personal knowledge of how business records were kept at the original creditor.\n4\\. Affiant of AFFIDAVIT OF DEBT does not claim to have personal knowledge of the sale or assignment of the debt from the original creditor to ACME Collection Agency.\nWHEREFORE, the Defendant prays this Honorable Court that Plaintiff's \"Exhibit A\" be stricken from evidence in the above action.\nI state under penalty of perjury that the foregoing is true and correct.\nDefendant Name.\nBy: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Date:\\_\\_\\_\\_ \nDefendant Name, Defendant \nAddress \nPhone\nI CERTIFY that I mailed \/ delivered a copy of this MOTION to: ACME Collection Attorney \nAddress \nPlaintiff's attorney at the above address or Defendant's attorney\nBy: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Date:\\_\\_\\_\\_ \nDefendant Name, Defendant\nIf you want more help or examples of how to handle your lawsuit, our legal discussion forum is an excellent source of information. It's free so visit it today!\n* * *\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: File a Motion to Strike Plaintiff's Affidavit of Debt CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Understanding the Electronic Funds Transfer Act CONTENT: **Electronic Funds Transfer Act: How Your Money is Protected**\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: December 26, 2017_\nAs much as electronic funds transfers have simplified your ability to pay bills and receive money, they lack an essential built-in benefit of paper checks — documentation. Thus, the importance of the Electronic Funds Transfer Act, a 1978 law that requires not only individual receipts for each transfer made, but also periodic statements and disclosures. Errors can be costly — not only to your bank account, but also your credit — so make sure you know your rights.\nIt’s pretty much exactly what it sounds like. An electronic funds transfer is the electronic movement of money (i.e., data as opposed to paper). These types of money transfers come with consumer protections covered by the Electronic Funds Transfer Act, including:\n* In-store or online purchases made with a debit card\n* Cash withdrawals made from an ATM with a debit card\n* Direct deposits into your bank account\n* Direct debits from your bank account\n* Electronic checks\n* Transfers initiated over the phone\nIntentionally omitted from this list are prepaid cards, gift certificates, and store gift cards. Though use of these are technically electronic funds transfers, they are treated differently under the Electronic Funds Transfer Act (see the last section of this article).\n### **Required disclosures**\nWhen you use an electronic funds transfer account or service (e.g., debit card, ATM card, etc.), the Electronic Funds Transfer Act says that the providing financial institution is required to disclose the following to you:\n* Type and nature of transfers you can make\n* Your liability for unauthorized transfers\n* Contact information you are to use if you believe an unauthorized transfer is made\n* How much you will be charged for transfers\n* Your right to stop payment on preauthorized transfers\n* Your right to receive records documenting transfers\n* Summary of how to resolve errors\n* The financial institution’s liability to you\n* When the financial institution can share your account information with third parties\n* Statement that a fee may be charged to you for using an ATM that doesn’t belong to the financial institution, as well as a fee for “any national, regional, or local network utilized to effect the transaction”\nOnce you already have the account, the financial institution must provide you with 21-day notice of _changes_ to terms and conditions that will increase your cost or liability.\n### **Required documentation**\nFor every electronic transfer you make with your account, the financial institution must provide you with documentation that includes:\n* Date of the transfer\n* Type of transfer\n* How much was transferred\n* Identity of your account\n* Identity of the financial institution\n* Identity of the third-party funds are transferred to or from\n* Where the electronic terminal used for the transfer is located\n### **Notices regarding preauthorized transfers**\nIf you have a scheduled preauthorized transfer — “from the same payor at least once in each successive sixty-day period, except where the payor provides positive notice of the transfer to the consumer” — the financial institution must let you know when the transfer is made or, conversely, if it was _not_ made as scheduled.\n### **Periodic statements**\nIn addition to the documentation (i.e., receipts) required for each individual transfer, financial institutions are required to provide you with periodic statements, including:\n* Breakdown of every transfer made during this period\n* How much transfers cost you during this period\n* How much you had in the account when the period began\n* How much you had in the account when the period ended\n* Contact information you are to use if you see an error on the statement\nAs for frequency, these periodic statements “shall be provided at least monthly for each monthly or shorter cycle in which an electronic fund transfer affecting the account has occurred, or every three months, whichever is more frequent.”\nNote, the provision of documentation varies for consumer passbook accounts.\n### **Preauthorized transfers**\nIf you want to preauthorize a transfer, you must do so in writing. If you want to _cancel_ a preauthorized transfer, your written or oral cancellation must be provided _within 3 business days_ of the scheduled transfer date. Note, financial institutions can require subsequent written instruction be provided within 2 weeks of an oral notification.\nAs for _recurring_ preauthorized transfers, if the amount varies each time, you must be given “reasonable advance notice” of the amount before the transfer is made.\n### **Dealing with errors**\nShould a receipt or periodic statement alert you to an error, you need to notify the financial institution immediately so they can investigate.\nAs outlined in the Electronic Funds Transfer Act, examples of errors include:\n* Unauthorized transfers\n* Incorrect transfers\n* Missing transfers from periodic statements\n* Mathematical errors made by the financial institution\n* Incorrect amount of money received from an electronic terminal\n**To initiate an investigation, you must notify the financial institution — orally or in writing — _within 60 days_ of the date on the documentation that reveals the error.**\nThis notification should include:\n* Your name and account number\n* Identification of the error\n* Why you believe it is an error\nWe recommend that you send it in writing, via certified mail, with return receipt. This way you can have proof of the date it was received — an important record to keep as they only have 10 business days from the receipt of your letter to complete their investigation. This time period extends to 45 business days if the financial institution recredits your account the amount in question (within 10 business days of the receipt of your dispute) pending completion of the investigation.\nRegardless, if the investigation determines that there was, in fact, an error, the financial institution is responsible for correcting it within 1 business day of making that determination. Conversely, if they find that no error was made, the financial institution must notify you of such within 3 business of its investigation being complete.\n**Liability**\n-------------\n### **Consumer liability**\nIf an unauthorized transfer is made, your liability shall not “exceed the lesser of $50 or the amount of money or value of property or services obtained in such unauthorized electronic fund transfer prior to the time the financial institution is notified of, or otherwise becomes aware of, circumstances which lead to the reasonable belief that an unauthorized electronic fund transfer involving the consumer's account has been or may be effected.”\n### Financial institution liability\nGenerally, a financial institution is liable “\\[if they fail\\] to make an authorized transaction, in accordance with the terms and conditions of an account, in the correct amount or in a timely manner when properly instructed to do so by the consumer.”\nHowever, a financial institution will not be held liable if the transfer was not made due to:\n* Insufficient funds in the account\n* Insufficient funds in the electronic terminal\n* The transfer being greater than a credit limit\n* Funds being subject to legal process\n* An act of God\n* A technical malfunction \n### Prepaid cards, gift certificates, and store gift cards\nAgain, prepaid cards, gift certificates, and store gift cards do not come with same Electronic Funds Transfer Act protections as other electronic funds transfers outlined above.\nAs the FTC explains:\n“These ‘stored-value’ cards, as well as transactions using them, may not be covered by the EFT Act, or they may be subject to different rules under the EFT Act. This means you may not be covered for the loss or misuse of the card. Ask your financial institution or merchant about any protections offered for these cards.”\nThat said, the Electronic Funds Transfer Act _does_ say that prepaid cards, gift certificates, and store gift cards must conspicuously state:\n* That an inactivity, dormancy, or service fee may be charged\n* How much that charge would be\n* When that charge would be assessed\nAlso, prepaid cards, gift certificates, and store gift cards need not include an expiration date, but if they do, the date cannot be less than 5 years from the date of purchase (or loading of money onto a card).\nWant to know more about your electronic funds transfer rights?\n--------------------------------------------------------------\n[Check out the Electronic Funds Transfer Act in its entirety](;edition=prelim) for details and exceptions. END

TITLE: Using Affirmative Defenses When Answering a Debt Lawsuit CONTENT: Using Affirmative Defenses in Your Answer to a Debt Lawsuit\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 27, 2021_\nOur article entitled Are You Being Sued? Learn How to Answer a Summons and Complaint explains the mechanics of what to do if you are served a Summons and Complaint. An important part of filing your Answer is to include a list of Affirmative Defenses. Affirmative defenses include any defense, in fact or law, which would prevent the Plaintiff from winning the case. These defenses should be listed at the end of your answer after the section where you have responded to each and every individual complaint made by the Plaintiff. Affirmative defenses should **always** be used when you file your answer with the court. If you do not give them in your answer, you lose the right to bring them up in court later.\nUsing Affirmative Defenses in Your Answer\n-----------------------------------------\nYou need to look up the rules of civil procedure in your state to see if it is proper to use any of these defenses and customize them to be specific to your state's laws. Many of these defenses will not be relevant to your case and some courts may not allow them. Using the entire list is total overkill, and could make you look like you don't know what you are doing. This could really hurt your case. Please tailor your defenses, **DON'T JUST CUT AND PASTE**. If you do not understand fully what a defense means, don't use it. You may be asked in court why you chose a particular defense, so be prepared.\nMost Common Affirmative Defenses\n--------------------------------\nThe following list is by no means an exhausting listing of defenses but rather the most common and useful ones to use in a debt lawsuit. A complete list can be endless and would include any and all defenses you can use which would likely prevent the Plaintiff from winning his case. You need to make sure you not only list your affirmative defense by name but you also add facts to support this defense.\n* **Statute of Limitations.** Suit was brought on after the statutory limit has passed. Most powerful affirmative defense you can have.\n* **Lack of Standing.** Lack of standing is a powerful defense to use. It basically means that a debt collector has no legal basis for filing a suit. No legal basis means that there is no clear ownership of the debt or legal assignment of a debt to a debt collector. This can occur when there is no clear paper trail (a.k.a. chain of custody) in the sale or assignment of a debt from the original creditor to the debt collector.\n* **Failure to State a Claim Upon Which Relief May be Granted.** Either no statute was cited or the complaint fails to state facts sufficient to constitute a cause of action as against this defendant. In general, listing the facts of the case is enough for basis of claim. Use this if the Plaintiff merely says you owe the money and not much else.\nMore Affirmative Defenses You Can Use in a Lawsuit\n--------------------------------------------------\nConsider each of the below affirmative defenses to see if they potentially apply to your case. The vast majority of these may not apply to your specific case, but reviewing these may help you brainstorm and think of some other defenses you may be able to use. Again, these are not a \"one size fits all\" type of defenses; make sure to tailor them to fit your particular case.\n* Plaintiff admits to purchasing the defaulted debt allegedly owned by the Defendant, causing Plaintiff's injury to its own self, therefore **Plaintiff is barred from seeking relief for damages**.\n* **Unclean Hands.** If the Plaintiff is giving falsified evidence or producing false witnesses, definitely invoke this defense.\n* Plaintiff's complaint fails to allege whether or not the purported assignment was partial or complete and there is **no evidence that the purported assignment was bona fide**.\n* **Plaintiff is not authorized or licensed to advertise or solicit**, either in print, by letter, in person or otherwise the right to collect or receive payment of a claim for another, nor to seek to make collection or obtain payment of a claim on behalf of another. The Complaint fails to allege any exception or exemption to these requirements. The Plaintiff is not any of the following: an attorney at law; a person regularly employed on a regular wage or salary in the capacity of credit men or a similar capacity, except as an independent contractor; a bank, including a trust department of a bank, a fiduciary or a financing and lending institution; a common carrier; a title insurer or abstract company while doing an escrow business; a licensed real estate broker; an employee of a licensee; nor a substation payment office employed by or serving as an independent contractor for public utilities.\n* Defendant invokes the **Doctrine of Laches** as the Plaintiff or the person or entity that assigned the claim to the Plaintiff waited too long to file this lawsuit, making it difficult or impossible for the Defendant to find witnesses or evidence or that evidence necessary to provide for Defendant's defense has been lost or destroyed.\nThere are also a lot of affirmative defenses regarding a debt collection lawsuit that are absolutely useless that have been floating around for years. Here are some of them.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Using Affirmative Defenses When Answering a Debt Lawsuit CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

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TITLE: Damaged Credit Rating - Sue If Your Credit Rating Was Ruined CONTENT: Can You Sue For Damaged Credit?\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nIf someone else's actions damaged your credit, you may have a case, but only if the action was illegal, malicious, or infringed upon your rights, including a creditor's willing or negligent provision of inaccurate information to credit reporting bureaus.\n### Examples Where Your Credit May Have Been Wrongfully Damaged\nYou may be able to sue for credit damaged by:\n1. Erroneous reporting to credit bureaus of balances owed, late payments, etc.\n2. A creditor's improper handling of an identity theft issue.\n3. A divorce, wrongful dismissal at work, or personal injury that prevented you from being able to pay your bills, subsequently leading to late payments, missed payments, defaults and\/or charge-offs.\n### When Should I Contact a Lawyer?\nBefore contacting a lawyer to file a lawsuit, it's important to go through the available channels for correcting the credit mistake outside of the legal system. If your dispute results in a negative listing being removed from your credit report, problem solved; no lawsuit necessary. However, if your dispute is dismissed, it proves you tried to resolve the issue on your own, leaving you no choice but to pursue legal counsel. That's when it's time to contact a consumer lawyer, explain your situation, and see if you have a case.\n### How Do I Dispute Erroneous Information on My Credit Report?\nIt's important to try and resolve the matter through the appropriate channels before contacting a lawyer and filing a lawsuit. This means writing letters of dispute to the bank or company that allegedly caused the credit damage, as well as the credit reporting bureaus. Be sure to send these letters via regular mail, certified. This way, there can be no question as to whether your letters are received. Also, it establishes a date of receipt from which they have 30 days to respond to your dispute.\n### My Attorney Says I Don't Have a Case, Should I Just Drop It?\nNo, there are cases in which one or more lawyers turn down a case only to have another lawyer see the possibilities, take the case to court, and successfully win a settlement.\n### How Is The Monetary Award of a Lawsuit For Damaged Credit Determined?\nCredit researchers can review your case and credit history to determine just how much your damaged credit has cost you.\n### What Sort of Damages Are Covered in a Credit Lawsuit?\nWhile every case is unique, damages that may be covered in a credit lawsuit include:\n* Increased out-of-pocket expenses, such as payments on high interest loans for which damaged credit did not qualify you for lower interest rates.\n* Loss of credit capacity, such as credit limits lowered.\n* Loss of credit expectancy, i.e., no longer applying for credit as you did previously, as you know you will simply be turned down.\n* Aggravation, loss of time, and\/or loss of credit reputation.\n### Can I Sue For Damaged Credit if it Was Already Bad to Begin With?\nWhile you are well within your rights to sue under these circumstances, it's a harder case to prove and win. As a result, you may have a tough time finding a lawyer to take on the case. That said, you never know, so it may be worth seeking counsel to exhaust all possibilities.\n### Are There Any Circumstances Under Which I Can Sue For The Reporting of Accurate Information That Damages My Credit?\nNo, your creditors are well within their rights to report negative information to the credit bureaus provided it is accurate. This includes late payments, defaults, and charge-offs. END

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TITLE: Suing For Defamation of Character CONTENT: Defamation of Character Lawsuit Against Credit Bureaus\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you actually have to go to court and sue the credit bureaus or a creditor during a debt validation or credit repair process, you want to do it on the basis of defamation of character or denial of credit. This is a very strong argument based on this court case:\nUnited States Court of Appeals, Fifth Circuit, Case No. 91-7142, John STEVENSON vs. TRW, April 1, 1993.\n### Court Ruling\n* Section 1681o authorizes a consumer to recover actual damages sustained from the consumer reporting agency's negligent violation of a requirement under FCRA.\n* Actual damages include humiliation or mental distress, even if the consumer has suffered no out-of-pocket losses.\nIn this case, Stevenson suffered mental anguish over his lengthy dealings with TRW after he disputed his credit report:\n1. Stevenson testified that it was a \"terrific shock\" to him to discover his bad credit rating after maintaining a good credit reputation since 1932.\n2. Stevenson was denied credit three times during TRW's reinvestigation: by Bloomingdale's, by Bank One, and by Gabbert's Furniture Company. Stevenson testified that he had to go \"hat in hand\" to the president of Bank One, who was a business associate and friend, to explain his problems with TRW. As a result, he obtained credit at Bank One.\n3. Stevenson had to explain his credit woes to the president of the First City Bank in Colleyville when he opened an account there. With a new president at First City Bank, Stevenson had to explain his situation again.\n4. Despite the fact that he was ultimately able to obtain credit, Stevenson testified to experiencing \"considerable embarrassment\" from having to detail to business associates and creditors his problems with TRW.\n5. Finally, Stevenson spent a considerable amount of time since he first disputed his credit report trying to resolve his problems with TRW.\n**The Verdict:** The district court awarded John M. Stevenson actual damages of $30,000 for mental anguish, punitive damages of $100,000, and attorney's fees of $20,700 for TRW Inc.'s negligent and willful violations of the Act. See, you can fight these guys and win!!\nHow to Prove Defamation of Character\n------------------------------------\n**1\\. Make sure someone other than yourself sees the credit file.** Doing this will help you prove your character was harmed. Apply for credit somewhere and get turned down. There have been some cases in which sums awarded to consumers over inaccurate credit reporting were overturned because only the consumer saw his or her own file. This point is CRUCIAL.\n**2\\. Document if you were denied for employment based on your credit report.** This is a powerful weapon and you need to make sure you document what happened.\n**3\\. Need we say it? Document everything.** Send all letters certified returned receipt. Get copies of their procedural descriptions. Get lenders to send you a letter verifying that the CRA did not contact them.\n**4\\. It never hurts to re-dispute your listings twice.** If they deny you twice, that's even more ammunition proving their harmful actions (or inactions) against you.\nOrder our book, Good Credit Is Sexy, for all the info you'll ever need regarding credit repair. Or, order our eBook entitled How to Sue Your Creditors for more information on how to win money in court.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

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TITLE: Tips For Suing Credit Reporting Agency CONTENT: Tips When Filing a Lawsuit Against a Credit Reporting Agency\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nWe came upon these tips from creditnet.com. Hopefully this information will make is easier for you to file a lawsuit against a credit reporting agency. Since so many are trying to trip up the CRAs, here's some hints from all the cases we have read on our discussion forum.\n* Large award overturned on appeal because file was only seen by consumer, not a lender (def: consumer file is one disseminated to a someone else... you don't count). \n **Lesson:** Apply somewhere and let someone other than you see the file.\n* Get harmed! Get denied somewhere. Apply for employment and have it be an issue. Set up definitive harms to complain about. \n **Lesson:** Get denied for each CRA you're suing.\n* Create a paper trail and document everything. Send all letters certified registered mail. Get copies of their procedural descriptions. Get lenders to send you a letter verifying CRA no contact. \n **Lesson:** Trap them in writing. If it's not in writing it doesn't exist.\n* Good idea to dispute it all and dispute it twice. The CRAs lie so quickly what's the big deal another month? Because a dispute done more than once is SUPPOSED to get more consideration. If they lie to you again, they are violating the higher standard. \n **Lesson:** Do it twice but then set up and intend to sue. Anything over two times is a waste of your time.\n* Dispute directly with the lender, too, because they're supposed to put on your report that the line is in dispute. Rarely, if ever, is this done. Another violation. But you must have a COPY of your report after you contact the lender and dispute it.\n* READ the FCRA inside and out. Make a list of all the errors they can have. Try to get them to make those errors.\n* Once you're gathered your case, write one last letter to their legal dept. Site cases, send copies with highlights. Fax them, call them. Be a pain in their assets.\n* Look for every error and dispute every little one. It makes them look more incompetent and you'll get them all corrected\/ off when you catch them on FCRA violations, etc.\n* By the way, FCRA is a weak law. Difficult to use as a big hammer. You can use it, but defamation is better and negligent enablement of identity fraud is good. Read up on it all so you know what to say. Use a shotgun approach. If you're right on 2\/5 you're still got them. Use it all and let a judge throw out what does not apply. \n **Lesson:** Sue them for it all.\n* Don't jump the gun. Get it all together then do it right. A threat is one thing, real proof is another. If you say you're filing and they don't fix it all, file. If you're not prepared to at least file in small claims court then you might want to just keep disputing.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

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TITLE: Using Bill of Particulars in a Lawsuit CONTENT: What is a Bill of Particulars and When Can It Be Used?\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you live in a state that allows the use of bill of particulars, you have a potentially powerful tool if you are defending against a lawsuit. A bill of particulars can sometimes be used instead of the discovery process. If you live in a state that allows it, one of the first things you and\/or your attorney should do is submit a \"Demand for a Bill of Particulars.\" This is one of the toughest tools you have for defending yourself in court — an opportunity to find out exactly what is alleged against you so you can prepare your defense accordingly. A bill of particulars may be used in either criminal defense or in civil litigation. However, for the purposes here, we will mainly give examples related to defending your self against a debt lawsuit, which is a civil case.\nA bill of particulars is a written statement outlining the reasons a Plaintiff filed a lawsuit against a Defendant. It is a detailed, formal, written statement of charges or claims by a Plaintiff or the prosecutor given upon the Defendant's formal request to the court for more detailed information.\nWhat is the Purpose of a Bill of Particulars?\n---------------------------------------------\nA bill of particulars requests details on everything the Plaintiff states is the meat of the case. This prevents surprises, thus enabling the Defendant to prepare the strongest defense possible. A bill of particulars is also in the best interest of the judicial process overall — the sooner a Plaintiff and Defendant are on the same page about the exact nature of the lawsuit, the more efficiently and effectively the case can move through the system.\nHow is a Bill of Particulars Different from the Discovery Process?\n------------------------------------------------------------------\nIn the discovery process, the Defendant seeks evidence or strategy by which the Plaintiff will build its case. This is the proof the Plaintiff has against the Defendant. A bill of particulars includes no such proof or strategy, but only a list of reasons the lawsuit has been filed.\nWho Can Request a Bill of Particulars?\n--------------------------------------\nThe Defendant requests it to clarify the case, the Plaintiff cannot request it.\n### Under What Circumstances Would a Defendant Provide a Bill of Particulars to a Plaintiff?\nOK, so there is a situation where the Defendant would be asked for a bill of particulars. If you file a counterclaim, the Plaintiff may request a bill of particulars from you.\n### What Should You Ask for in a Bill of Particulars?\nThe nature of the lawsuit determines what should be included in a bill of particulars. For instance, if you are being sued for an unpaid balance on a credit card, your demand for a bill of particulars should request:\n* Agreement and\/or contract of the relevant account.\n* Proof the Plaintiff owns the account.\n* List of items for which payment is being sought.\n* List of dates associated with each item, transaction or service.\n* List of charges per item, transaction or service.\n* Means by which the plaintiff determined amount owed and for what.\n### In What Format Will You Receive the Response Bill of Particulars?\nLocal court rules determine the format for which a bill of particulars must be prepared and submitted.\n### How is the Getting the Plaintiff to Answer the Bill of Particulars Enforced?\nOnce a demand has been received for a bill of particulars, the receiving party should submit it voluntarily. If not, you can file a motion asking the court to force the submission of documentation.\n### Which States Allow the Use of a Bill of Particulars?\nThe bill of particulars was abolished in nearly all U.S. court systems in the 1940s and 1950s due to the widespread recognition that much of the information requested could be obtained more efficiently through the discovery process. Today, only a minority of U.S. states, like New York, Illinois, California (CCP 454), and Virginia, use the bill of particulars.\n_Please note: WE ARE NOT ATTORNEYS. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Understand Wage Garnishment Exemptions CONTENT: How to Get a Wage Garnishment Judgment Exemption\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nIt's stressful enough owing debt you cannot afford to pay. But it's devastating if and when you're forced to pay anyway in the form of wage garnishment. Fortunately, it is not a foregone conclusion that a Wage Withholding Order will stick. The key, of course, is knowing what to do about it.\nWhat is a Wage Garnishment?\n---------------------------\nWage garnishment is a process by which employers are legally required to divert a portion of your paycheck to one or more creditors.\nWhat Type of Debts May Be Garnished?\n------------------------------------\nIf you owe on unpaid student loans, medical bills, credit cards, or state or federal taxes, any of them may be legally obtained through wage garnishment.\n### How Much of My Income Can Be Garnished?\nIf your wages are being garnished by your employer, the amount diverted cannot exceed more than 25 percent of your income. This applies whether it is one or several creditors collecting on your debt in this manner.\n### How Will I Be Notified if My Wages Are Going to be Garnished?\nYou will receive a Wage Withholding Order from your employer. Unless you take action, you can expect the garnishment to start in 30 days.\n### Can My Employer Legally Fire Me For Having My Wages Garnished?\nIf your wages are being garnished by one creditor, no, you cannot be fired. However, if additional creditors seek the same remedy for your unpaid debt, yes, your employer does have the legal right to let you go.\n### How Can I Prevent My Wages From Being Garnished?\nAs soon as you receive the Wage Withholding Order from your employer, file a Wage Garnishment Judgment Exemption with the county clerk's office from which the withholding order originated. Do so immediately, as it can take one-to-two months for a hearing to be set on your behalf.\n### Is It Expensive to File a Wage Garnishment Judgment Exemption?\nNo. On the contrary, filing costs just $8.\n### What Happens After I File a Wage Garnishment Judgment Exemption?\nA hearing will be set for which you must appear to provide relevant documentation. This should include pay stubs of any checks from which wages have already been garnished (if applicable) and a detailed list of your monthly living expenses.\n### Under What Circumstances May I Be Granted or Denied a Wage Garnishment Judgment Exemption?\nIt all depends on your ratio of income vs. your living expenses. If the judge clearly sees that you are living at the bare minimum as it is, and that wage garnishment would prevent payment of necessary bills, such as rent and utilities, you will be granted the exemption. However, if the judge determines that your \"living\" expenses include things considered to be luxuries, the exemption will be denied.\n### Do Creditors Have Any Defense Against a Wage Garnishment Judgment Exemption?\nYes, creditors may file an opposition to the exemption. They may also submit another Wage Withholding Order again after 6 months time, or if your financial situation changes. Note, if a creditor violates this rule and seeks wage garnishment under circumstances contrary to these, they may be fined.\n### Are Wage Garnishment Laws Applicable in All Situations?\nNo, as there may be exceptions in some state and\/or federal tax debt situations, as well as bankruptcy proceedings.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: Pro and Cons of Arbitration vs Court Trial CONTENT: Advantages and Disadvantages of Using Arbitration Over a Court Trial\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nAs with just about anything in life, there are pros and cons to using either one of these dispute resolution forums. While some people may prefer arbitration, some may feel a court trial is the only way to handle litigation. Beside having a personal preference, there are some concrete reasons why one forum may be better than the other. Knowing the pros and cons of each will help you to make a decision as to which method is right for your civil case.\nWhat is Arbitration?\n--------------------\nWe all know what a court hearing or trial is all about. So, unless you have been living under a rock, every one of us has either seen a court hearing on television or participated in one. But not everyone is familiar with what arbitration is. By definition, arbitration is a private, judicial determination of a dispute, by an independent third party. In layman's terms, an arbitration hearing is where a dispute between two parties is resolved by an independent person, or arbitrator. An arbitrator hears both sides of a dispute and makes a ruling based on evidence and testimony presented at the arbitration hearing. An arbitration hearing is informal and decided rather quickly.\nPros and Cons of Arbitration Compared to Court Litigation\n---------------------------------------------------------\n**Costs:** Unlike a court trial, it is not necessary to hire an attorney to represent you. This is because arbitration does not involve time-consuming and expensive discovery, subpoenas, and interrogatories. Not hiring an attorney at a cost of over $300 an hour is definitely a money saver. The only draw back of not hiring an attorney, is that you will have to do all the work yourself. So be prepared to put in some time to put your case together.\n**Time:** Arbitration is typically a speedier resolution process than a court trial. An ordinary lawsuit can take upwards of a year or more from initial filing to the trial. In comparison, an arbitration hearing can be over in 3 to 6 months from initial demand. If you want the matter handled quickly, arbitration is the way to go.\n**Flexibility:** Court litigation is controlled by statutory and procedural rules. Judges are very strict in adhering to these rules and if you break one, you can get your case thrown out of court. On the other hand, arbitration rules are established by mutual agreement of both parties as to the submission of evidence, calling of witnesses, and the manner in which the hearing with be conducted.\n**Arbitrator or Judge:** The soundness of any hearing is largely dependent on the quality of the judge or arbitrator hearing the case. In a court hearing, the judge is assigned by the court without any input from either party involved. And, multiple judges may be involved in adjudicating pre-trial disputes. In contrast, in an arbitration hearing, the arbitrator is selected by the parties involved and this arbitrator presides over the entire hearing.\n**Expertise:** Arbitrators are selected from a pool of professionals who typically have experience in the area in which the dispute has arisen. This experience gives an arbitrator a greater capability to comprehend the issues at hand, more so than a trial judge.\n**:** A court hearing is open to the public unless the judge rules for a closed courtroom, which is highly unlikely in matters such as these.  In contract, an arbitration hearing is not open to the public and the parties can agree to keep the proceedings confidential.\n**Right to an Appeal:** Ordinarily an appeal from an arbitration award is permitted only on one of five narrow grounds:\n* The award was procured by corruption, fraud or other undue means\n* There was evident partiality, corruption or misconduct by the arbitrator\n* The arbitrator exceeded his or her powers\n* The arbitrator refused to postpone the hearing or hear evidence, or improperly conducted the hearing\n* There was no arbitration agreement\nConsequently, an award in an arbitration proceeding is rarely overturned, even if the evidence does not support the result. In a court trial, the losing party has a right to appeal to a higher court. The basis for the appeal can include alleged errors made by the trial judge as well as alleged mistakes made by the jury, including that the result is not supported by the evidence.\n**Enforcement of the Award:** In an arbitration, the prevailing party can file an application with the local court to confirm the arbitration award and enter judgment. Once a court enters judgment, the award can be enforced just as any other court judgment, including garnishment of bank accounts and execution and seizure of assets. Unlike a court judgment, which usually allows the party to enforce the judgment within 30 days, an arbitration award cannot be enforced until a lawsuit is filed and a court formally confirms the arbitration award and enters a court judgment in conformity with the award. This process usually takes at least 90 days.\nThe decision on whether arbitration is better than a court trial is entirely up to what is important to you in resolving your dispute.  In some cases, arbitration is the only method offered as per a contractual agreement. Either way, if you are heading into an arbitration hearing or a court trial, make sure you educate yourself on the procedures so you can come out the winner in the end. END

TITLE: Information on Credit Card Arbitration and JAMS CONTENT: How Does Credit Card Arbitration Work?\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 3, 2021_\nCredit card arbitration is a form of alternative dispute resolution (ADR). Instead of taking a dispute between creditor and borrower to court, a resolution is sought through a third party, impartial arbitrator. The arbitrator's decision stands, with no opportunity for appeal. Most contractual agreements entered into between credit card companies and consumers include binding mandatory arbitration, in which both parties agree arbitration is the only means through which dispute resolution may be reached (i.e., waiving the right to have a judge or jury decide the case). Either the credit card company or the borrower may initiate arbitration.\nThat said, not all agreements do include a binding mandatory arbitration clause, in which case either party still has the choice to initiate arbitration or sue.\nBenefits of Credit Card Arbitration\n-----------------------------------\nCredit card arbitration costs creditors far more in fees than if they were to go to court. So if you have a choice, and elect arbitration, it is possible that the creditor will simply walk away from collection of the debt. Or, at the very least, it could give you negotiating power in pursuit of a settlement.\nBenefit of Going to Court Instead of Arbitration\n------------------------------------------------\nCalifornia is the only state that requires arbitration companies to publish the results of arbitration cases. So while by no means representative of the U.S. arbitration cases as a whole, it's important to note: the majority of arbitration cases find in favor of creditors. The decision is set in stone, unless you can prove fraud or a significant conflict of interest on the part of the arbitrator. On the contrary, the benefit of going to court is the opportunity to appeal the decision.\n### Choice of Arbitration\nIt's in your agreement with the creditor, so read it carefully. Note, there may be a number of agreements that have been issued between the date you opened the account to the date of default. Look for the agreement that references JAMS (Judicial Arbitration and Mediation Services, Inc.), as this option makes it more costly for the creditor to purse collection of the debt.\nOnce you have found an agreement that references JAMS, look next for a survivability clause within the same agreement. This is important, as newer versions of the agreement may have eliminated the JAMS reference. The survivability clause will read something like, \"this agreement will survive any changes to the agreement in the future.\"\n### When is a Good Time to Elect Arbitration?\nWhen you receive a collection letter, respond with a letter of dispute, requesting that the creditor validate the debt. Do not send in a Motion to Compel unless the creditor initiates a lawsuit. Then you would send in your answer along with the Motion to Compel.\nBefore writing your letter electing arbitration, look for a copy of the contractual agreement entered into between you and the creditor. Look in the dispute resolution part of the agreement for the provision on arbitration, particularly for the mention of JAMS. Make mention in the letter of this provision, and your election of arbitration via JAMS. Failure to make this specification could allow the creditor to initiate arbitration in AAA instead of JAMS, which is far better for the creditor than for you. Also, be sure to mention that, pursuant to the card member agreement, you are requesting the advance of fees to initiate arbitration.\nYou can find a copy of your credit card agreement at. . \nUnder some agreements, the creditor is required to advance or pay your arbitration fees. Make mention of this in the election of arbitration letter, quoting the relevant text from the agreement.\n### Should You Elect Arbitration if the Statue of Limitations Has Expired?\nAbsolutely not. Every state has different statutes of limitations on different types of debt, so check the specifics of your state. If the statute of limitations has run out, you are no longer legally responsible for the debt.\n### What Happens After a Letter Requesting Debt Validation is Sent?\nThe creditor will either validate the debt, sell the debt to a third-party collector, or simply go away. If your debt is sold to a third-party, be sure to send them the same letters of dispute and election of arbitration. If the creditor sues you, but you included with your debt validation an election of arbitration, then the creditor is in violation. They do not have the right to sue you if elected arbitration first.\n### How to Respond to a Summons and Complaint\nYou will have a deadline for responding to the summons and complaint with your answer and affirmative defenses. At this time, you will also want to file your Motion to Compel arbitration. Note, in some states, you cannot file your answer before your election of arbitration notice; if you do so, you waive your right to arbitrate. Check for rules specific to your state.\nStates also differ in whether you need to file a brief or memorandum in support of your motion. Again, check rules specific to your state.\nBefore sending in your answer\/affirmative defenses, take it to a notary. Only after you have signed in the notary's presence, and they have stamped it, should you file it with your court. Mail a copy to the creditor's attorney, via certified mail with return receipt, and make a copy for yourself. Note, copies of anything you file with the court must be sent to the creditor and their attorney. Be sure to mail these certified mail with return receipt. And, of course, keep copies for yourself.\nInclude a copy of the arbitration agreement with an affidavit. Highlight the arbitration provision. Mention that you have done so, citing the exact page number.\nWhen you file, ask the clerk if you need to request a hearing for your motion. In some courts, there will be no decision on your motion, unless you have scheduled a hearing for it. Other courts will tell you that if it is needed, they will let you know.\n### What to Send to JAMS\nOnce you have received your return receipts proving the creditor's and their attorney's receipt of your election of arbitration, you may send the following documents to JAMS:\n* The original JAMS demand you sent to the creditor and their attorney.\n* One copy of the JAMS demand.\n* Two copies of the complete agreement you entered into with the creditor (highlighting the arbitration provision).\n* Proofs of service where you sent the JAMS demand to the creditor and their attorney.\n* A cover letter.\n### How Much Are JAMS Arbitration Initiation Fees?\nJAMS arbitration initiation fees are capped for consumers at $250. You may send in the entire $250, or send as little as $50, asking to make payments on the remainder of the fees. Note, under some agreements, the creditor will advance or pay your fees. In that case, you don't send in any money, but notify JAMS of such, quoting the relevant text from the agreement.\n### What to Do After Sending JAMS Copies and Fees\nYou wait. The creditor may walk away. They might dismiss with the stipulation that you initiate. They might do nothing and then you have to wait for the judge to decide if your MTC will be granted.\nIf it does move forward into arbitration and the initiation fees are paid, then the arbitration is commenced and you will have to file a formal complaint.\n### Difference Between JAMS and AAA\nBoth JAMS and AAA are arbitration services. JAMS (Judicial Arbitration and Mediation Services) is preferable to AAA (American Arbitration Association), as JAMS is most costly to creditors (i.e., increasing the chances they will drop further action). So if you have a choice, elect arbitration via JAMS.\n### Can the Creditor Initiates Arbitration in AAA After Already Initiated in JAMS?\nFile a Motion to Clarify, with which you can state that you initiated arbitration in JAMS before the creditor initiated in AAA. When you do so, it's a good idea to also request a hearing on the motion.\n### When Should You Provide a Copy of the Credit Card Agreement?\nOnly when you file your MTC arbitration with the court must you attach a copy of the agreement. At this time, you would also send a copy of the agreement (and MTC) to the creditor and their attorney as well. Sending the agreement any sooner will be doing yourself a disservice. The longer you can keep the creditor from knowing which agreement you have up your sleeve, the stronger your position.\n### If Dealing with a Junk Debt Buyer, Do You Still Need to Send Copies of Everything to the Original Creditor?\nNo. When a junk debt buyer buys a credit card account, they step into the shoes of the original creditor. So anything referencing the need for you to send copies to the original creditor should be taken to mean the current owner of the debt (i.e., the junk debt buyer).\n### What is a Motion to Compel (MTC)?\nTo initiate arbitration, you do so through a Motion to Compel (MTC) that you file with the court, which should accompany your answer\/affirmative defenses for the summons\/complaint. As with anything else filed with the court, be sure to send a copy of the MTC to the creditor and their attorney.\n### What is a Motion for Summary Judgment (MSJ)?\nA Motion for Summary Judgment (MSJ) is the creditor's request to be awarded the judgment. You need to file an opposition to the MSJ. In it, make sure to point out that you elected arbitration and that you filed your MTC with the court.\n### What if the Judge Rules that Arbitration is Not an Option For You?\nIf you have a hearing scheduled before the judge rules, be sure to point out the arbitration option and survivability clause in your agreement. If the judge rules without a hearing, and your MTC arbitration is denied, you may file a Motion to Reconsider (MTR), in which you will point out the relevant language in the agreement.\n### What if the Creditor Offers to Settle?\nThis is a definite possibility, as the arbitration process is an expensive one for creditors. Use your negotiating power and aim for a settlement the terms of which you can afford to meet. See our comprehensive collection of articles on debt settlement strategy and steps.\n### How to File a Formal Complaint if the Arbitration Moves Forward\nIf arbitration does move forward, with the creditor paying their part of the fees, then arbitration is commenced. From that point, you will need to file your formal complaint within 7 days, unless yours is a case with comprehensive rules (claims over $250,000), in which case you have 14 days.\nYour formal complaint details your claims and looks a lot like a court pleading with you as the _Claimant_ and the creditor as the _Respondent_.\nTo come up with a list of complaints, familiarize yourself with your state's laws, consumer protection laws, fair business practices act, deceptive trade practices, anything that might could be used in addition to possible FDCPA, FCRA, TCPA, Fraud & Misrepresentation, Breach of Contract, and possibly even physical and emotional distress.\n### What is a Forum or a Provider?\nThe _forum_, also known as the _provider_, is an impartial point of contact among all parties involved in the arbitration, including you, the creditor, the creditor's attorney, and the arbitrator.\n### What is the Arbitrator Strike List?\nYou will receive a list of possible arbitrators — usually three to five of them — which you are asked to order according to your preference, though you are allowed to strike one out completely. To make an informed decision, do an online search of each possible arbitrator. Note, try and stay away from ex-bankruptcy judges or anyone tied to the banking industry. Also, try to find out how many times each arbitrator has worked with the creditor. The longer their history together, the less desirable that arbitrator is for you.\nIf you happen to see the creditor's strike list before you submit your own, be sure to strike out on your own list the arbitrator who is the creditor's first choice. It's important to meet your deadline date, but hold off as long as possible before submitting your strike list. The goal is to give the creditor as little time as possible to strike from their list your top choice.\n### What Happens if the Arbitrator Finds in Favor of the Creditor?\nIf the arbitrator finds in favor of the creditor, the creditor must receive a judge's confirmation of the award before they can collect on the debt. Once confirmed, you can expect the creditor to enforce collection measures, which could include garnishment from your paycheck or bank account. Your only alternative option at this time is to dispute the decision if you suspect fraud or conflict of interest on the part of the arbitrator.\n### What Happens if the Arbitrator Finds in Your Favor?\nCelebrate! You won the dispute, forcing the creditor to cease all collection efforts.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: CFPB Financial Education Teaching Consumers About Investing CONTENT: How the CFPB is Furthering Financial Education to the Public\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nBenjamin Franklin once advised, \"An investment in knowledge pays the best interest.\"\nIn that same spirit, education is one of the chief aims of the Consumer Financial Protection Bureau (CFPB), the national agency tasked with protecting consumers of financial products and services.\nThe Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandated that the CFPB’s work include the improvement of financial literacy among American consumers. To that end, the CFPB engages in a long list of initiatives, highlights of which are outlined below.\nFinancial Education Research\n----------------------------\nAs stated in the CFPB’s 2014 Financial Literacy Annual Report: \n\"According to a 2011 Government Accountability Office (GAO) report on financial literacy: 'Relatively few evidence-based evaluations of financial literacy programs have been conducted, limiting what is known about which specific methods and strategies are most effective.'\"\nThus, the CFPB’s financial education research program that focuses on:\n1. Determining how to measure financial well-being and identifying the knowledge, skills, and habits associated with financially capable consumers.\n2. Evaluating the effectiveness of existing approaches to improving financial capability.\n3. Developing and evaluating new approaches.\n\"The CFPB is taking up this challenge to provide stronger evidence of what works, in order to support and guide efforts to improve the effectiveness and quality of financial education, and therefore improve consumer decision making and outcomes.\"\nAsk CFPB\n--------\nHave a question about a financial product or service? Turn first to the Ask CFPB section at ConsumerFinance.gov, a comprehensive database of information on a wide range of financial products and services, from student loans and banking accounts, to auto loans and mortgages.\nWith this tool, you can:\n* Search with your own unique question.\n* Search by category.\n* Scroll through commonly-asked questions.\nThe system includes a filter for sorting results by most relevant, most helpful, most viewed, or most recently updated.\n### Know Before You Owe\nHow much is that debt really going to cost you? The CFPB wants you to know before you owe, particularly when it comes to some of the most costly of financial decisions – credit cards, mortgages, and student loans.\n#### Credit Cards\nNext time you're considering a credit card offer, take the time to look for the credit card agreement in the CFPB's database of from more than 300 card issuers. Study the agreement carefully to be sure you know the APR, balance transfer fees, cash advance fees, late payment fees, and more.\nThe CFPB has also created a simplified credit card agreement. While its use is not mandatory for credit card issuers, it will at least give you a good idea of what exactly you should be looking for in your agreement comparisons.\n#### Mortgages\nAfter more than 2 years of extensive research, the CFPB created simplified mortgage disclosure forms to help ensure borrowers understand what they’re getting into, particularly relative to risk factors, short-term and long-term costs, and monthly payments.\n#### Student Loans\nThe Financial Aid Shopping Sheet helps students and their families easily compare the cost of college from one school to the next. Though its use is voluntary, thousands of colleges and universities are already on board. So if you you're shopping around for schools, be sure to ask them for it.\nTraining For Housing Counselors\n-------------------------------\nIs your housing counselor up to speed? To ensure housing counselors know all the ins-and-outs of the latest mortgage servicing rules, the CFPB created the Guide to Mortgage Servicing Rules, covering:\n* The 10-step loss mitigation process.\n* Foreclosure prohibitions.\n* Charges and fees that can be imposed on a borrower.\n* The error resolution process.\n* Borrower requests for information.\n* Borrower requests for payoff statements.\nThe CFPB has also provided on-site and virtual training to thousands of housing counselors nationwide.\nFree Credit Score Initiative\n----------------------------\nDo you know your credit score? Since FICO now allows lenders to share credit scores with cardholders at no additional charge, the CFPB has urged the nation’s top credit card issuers to do so. Many of them are (and were even prior to the CFPB’s formal request).\n\"If scores are lower than expected or if they change over time, more consumers may take the initiative to request their credit reports,” says CFPB Director Richard Cordray. “This will allow them to address concerns, dispute errors or fraud-related entries, and improve negative aspects of their credit usage.\"\nPaying For College\n------------------\nIn addition to the Financial Aid Shopping Sheet (referenced above under Know Before You Owe), the Paying for College initiative includes CFPB's creation of Guides to Student Loans and Student Banking.\nLibraries as Hubs of Financial Education\n----------------------------------------\nThe Community Financial Education Project:\n* Provides librarians with a collection of financial education resources and tools.\n* Helps libraries identify and connect with local partners in their communities.\n* Helps libraries build an online community for local financial education librarians.\n* Provides helpful trainings for library staff and managers.\nOur libraries serve nearly the entire American population — close to 300 million people. That combined with the inherent nature of libraries as hubs of knowledge make them an obvious solution for improving financial education.\nK-12 Curriculum Recommendations\n-------------------------------\nWhat are we teaching our kids about finance? Infamously, the U.S. does not have a national standard for financial education. However, in 2013 the Consumer Financial Protection Bureau recommended K-12 finance education standards for the states.\nSpecifically, the CFPB recommends:\n* Introducing key financial education concepts early and continue to build on that foundation consistently throughout the K-12 school years.\n* Including personal financial management questions in standardized tests.\n* Providing opportunities throughout the K-12 years to practice money management through innovative, hands-on learning opportunities.\n* Creating consistent opportunities and incentives for teachers to take financial education training with the express intention of teaching financial management to their students.\n* Encouraging parents and guardians to discuss money management topics at home and provide them with the tools necessary to have money conversations with their children.\nChanges like these seem long overdue. While there are all sorts of reasons Americans find themselves deep in credit card debt or, worse, filing bankruptcy, the state of our nation’s finance education is surely some reflection of that.\nOther Notable Initiatives\n-------------------------\n* **Workplace Financial Education Program**, seeking to address key life events and decision points in employees’ financial lives; augmenting tools such as automatic enrollment in retirement plans with training and information sessions for employees and free financial planning assistance.\n* **Ready, Set, Save!**, encouraging EITC-eligible taxpayers to pre-commit to saving a portion of their refund at the time their taxes are being prepared and they first learn the amount of their EITC credit and expected tax refund.\n* **Money Smart for Older Adults (MSOA)**, an instructor-led curriculum for the FDIC’s Money Smart program to provide older consumers and their caregivers with information on preventing and responding to elder financial exploitation.\n* **Military Financial Educator Forums** on consumer financial topics for service providers who deliver financial, educational, or legal counseling to service members and their families worldwide.\n* **Bridges to Financial Security for Persons with Disabilities**, increasing access to financial education services for individuals with disabilities who are transitioning into the workforce.\n### Publications\nThe CFPB has created dozens of free publications for consumers, including:\n* **Tips for Homebuyers: Make the Most of the New CFPB Mortgage Rules**, a one-page summary.\n* **Shopping for a Mortgage? What You Can Expect Under Federal Rules**, an 18-page in-depth booklet.\n* **Your Money, Your Goals**, a financial empowerment toolkit for social services programs.\n* **Employer’s Guide to Assisting Employees with Student Loan Repayment:** A Toolkit for School Districts, Non-Profit Organizations, and Other Public Service Employers.\n* **Managing Someone Else’s Money**, a four-part series that includes Help for Guardians of Property and Conservators, Help for Agents Under a Power of Attorney, Help for Representative Payees and VA Fiduciaries, and Help for Trustees Under a Revocable Living Trust.\n\"We have built the greatest system of economic liberty in the history of mankind,\" says CFPB Director Richard Cordray, \"but it will only endure if we are willing to take the necessary steps to strengthen that system from the bottom up, starting with the individual.\" END

TITLE: CFPB Financial Education Teaching Consumers About Investing CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Credit reports and credit scores – USA Credit Repair CONTENT: The score most commonly used by lenders is the FICO score, developed by Fair Isaac.\nWhen you get your reports, check for inaccuracies; the bureaus are required to investigate and correct them once you report them.\nThe bureaus may have different information about your credit history, which means your credit score can vary somewhat from bureau to bureau. So it’s important to view reports from all three.\n_CNNMoney (New York) First published May 28, 2015: 4:07 PM ET_\nGet Your Free Credit Credit and Credit Review Now \n\\[salesforce form=”5″\\]\n\\[sg\\_popup id=”1″ event=”onload”\\]\\[\/sg\\_popup\\] END

TITLE: CFPB Protects Bank Services and Products CONTENT: How the CFPB Protects Banking Services\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nWhen it comes to your financial well-being, there is nothing more important than protecting and growing your money. You count on your bank to help you do just that, and it is the job of the CFPB to ensure they do it right.\nCFPB Regulates the Banking Industry\n-----------------------------------\nAs the government agency responsible for consumer protection in the financial sector, it is the responsibility of the CFPB to regulate banks and credit unions, including oversight, law enforcement, and the creation of new rules and regulations.\nCFPB Collaborates with Community Banks and Credit Unions\n--------------------------------------------------------\nBefore its official opening in July 2011, the CFPB met with representatives from community banks and credit unions in all 50 states to:\n* Ensure the CFPB incorporates perspectives of small depository institutions into policy-making.\n* Communicate relevant policy initiatives to community banks and credit unions.\n* Work with community banks and credit unions to identify potential areas for regulatory simplification.\nAnd the CFPB continues seeking input from representatives of this industry via its Community Bank Advisory Council and Credit Union Advisory Council.\nCFPB Writes New Rules and Regulations\n-------------------------------------\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance:\n* Financial institutions are now required to disclose any and all credit card agreements they have with colleges and universities, the list of which the CFPB makes public in their online database. The CFPB has also asked these financial institutions to voluntarily share on their own websites any such agreements with schools.\n* The CFPB launched an inquiry into mobile financial services, asking 35 questions of providers, researchers, regulators, and consumers. Specifically, the CFPB is concerned with mobile financial services as they relate to 1) access for the underserved, 2) real-time money management, 3) customer service, and 4) privacy concerns and data breaches.\nCFPB Accepts Banking Account and Services Complaints\n----------------------------------------------------\nDo you have a complaint about the opening, closing, or management of a checking or savings account? What about problems with deposits or withdrawals, debit cards, or fees?\nWhatever the issue relative to your banking account or service, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

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TITLE: CFPB Protects Student Banking and Student Credit Cards CONTENT: CFPB Protects Young Consumers in Banking and Credit Cards\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nWe expect colleges to look out for the best interest of their students. This not only includes curriculum and on-campus safety, but also their financial well-being. Unfortunately, many schools are falling short in the financial department, thus the importance of CFPB protection.\n**Conducts Inquiries into On-Campus Student Financial Services**\n----------------------------------------------------------------\nIn 2013, the CFPB conducted a 9-month inquiry into school-affiliated debit cards. What the agency discovered is that arrangements between colleges and banks are not only _confusing_ to college students, but costly too.\nStudents may presume their schools promote a specific bank because their products represent a good deal for them. However, in many cases, the only good deal is the one for schools getting paid to market bank checking accounts and debit cards to their students. Yet, while these schools make millions off the arrangement, expensive fees eat into students’ already limited funds.\nWhat’s worse is, some students don’t realize they have any other choice.\n### **Informs College Students of Their Banking Options**\nRather than settle for what’s most visible and convenient on campus, students are advised to weigh the pros and cons among all of their banking options. The CFPB provides a detailed side-by-side comparison of school-affiliated bank accounts, student checking accounts, and virtual checking accounts.\nFor instance:\n* **_Virtual checking accounts_** may waive or reimburse ATM fees (even out-of-network), and offer online banking, bill-pay, and lots of mobile apps. However, if and when you want to speak with someone about your account, you have no in-person options.\n* **_Student checking accounts_** may offer all of the same benefits of a virtual checking account, plus an in-person option. However, you could be looking at a monthly maintenance fee if you don’t meet certain criteria.\n* **_School-affiliated bank accounts_** may offer all of the same benefits listed above, plus the ability for your debit card to double as your student ID and its use for discounts at local or on-campus businesses. However, you could be charged a whole host of fees, including one every time you use your debit card, as well as monthly maintenance fees and inactivity fees.\nWhat the CFPB most strongly advises is that you look into your options early so you can 1) set up a bank account as soon as possible, 2) avoid as many fees as possible, and 3) set up direct deposit with your school so that you have immediate access to your financial aid funds.\n**Maintains Database of School Credit Card Agreements**\n-------------------------------------------------------\nThough it’s tougher now for college students under 21 to get credit cards, it’s still possible provided you a) have a co-signer, or b) meet certain income criteria. This has drastically decreased banks’ focus on marketing credit card to college students (opting instead to focus on other student financial products, like debit cards).\nHowever, if your school _does_ have an agreement with a bank to market credit cards to its students, you deserve to know about it.\nTo that end, the CFPB maintains an impressive database of credit card agreements, searchable by school, credit card issuer, and location. It also includes the number of open accounts and how much each school received from the bank to market their credit cards to their students.\n**Accepts Student Banking Complaints**\n--------------------------------------\nDo you have a complaint about the opening, closing, or management of a checking or savings account? What about problems with deposits or withdrawals, debit cards, or fees?\nWhatever the issue relative to your student banking account or service, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

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TITLE: Learn How to File a Lawsuit in Small Claims Court CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nThe procedures of filing a lawsuit in small claims varies from county to county and state to state. Below, are just general guidelines so make sure to check the rules of the court in the area where you are going to be filing the lawsuit. Additionally, in some states like Georgia, small claims court is called magistrate court.  Visit this page for a state-by-state listing.\nFiling a Lawsuit in Small Claims Court\n--------------------------------------\nFirst of all, most courts want to see that you attempted to collect this money before going to court, that is, you have taken all reasonable measures to collect before getting the courts involved.\nUsually, by choosing a Small Claims Court, you waive all right to a jury trial. Furthermore, it is only in very specific instances that you have the right to appeal to a higher court if the Clerk does not find in your favor. Defendants, however, always have the right to appeal.\nYou need to go down to your county courthouse and ask the clerk for the procedure in your county. Fill out the documents they give you. The form may help you clearly outline your complaint. This is a good thing to do, especially if you are nervous about presenting your case or are afraid you might forget important facts. If county will not let you file this form (doubtful), then you can take it with you as your own private notes. You must pay all the filing fees before your paperwork will be processed.\nIn some counties, all you will have to do is sign the form in the presence of the clerk; in others, you will need to get a judge's signature.\nOnce your paperwork is filled out properly, you will be given a hearing date, trial date, or response date will be entered by the clerk. You will either be given the information then or by mail, depending on the court's local procedures.\nIt is the plaintiff's responsibility to accurately identify the defendant, provide a proper address and, if possible, provide a phone number. You must furnish the precise legal name and address of the party you are suing. For example, S & J Construction, Inc. You may sue any individual, business, partnership, or corporation. The legal name of a business which is not a corporation may be determined by contacting the clerk in the city or town hall and requesting business certificate information. Another suggestion is contacting the your state Corporation Commission to find out the exact name.\nHow much does it cost? All states have different filing fees, but generally the cost is between $10 and $50, with some businesses paying a slightly higher fee.\n### Serving the Notice\nIn order for the judgment to be binding, the party being sued must be properly served. Depending on your state, either the court will serve the notice, or leave it up to you. It is vital to make sure the party is served properly.\nIf your state makes it your responsibility to serve the party you are suing, ask for a list of the qualified people or services you can use to serve the paperwork.\n### Preparing For Trial\nAs mentioned in the previous section, you can help yourself by being well prepared.\nTo prepare for the trial, collect all papers, photographs, receipts, estimates, canceled checks, or other documents that concern the case. It may be helpful to write down ahead of time the facts of the case in the order that they occurred. This will help you to organize your thoughts and to make a clear presentation of your story to the judge.\nIt is also a good idea to sit through a small claims court session before the date of your hearing. This will give you first-hand information about the way small claim cases are heard.\n### What Happens At The Trial?\nWhen you arrive at the court, report to the courtroom in which your case has been assigned.\nWhen your case is called in the courtroom, come forward to the counsel table and the judge will swear in all the parties and witnesses.\nDon't be nervous and remember that a trial in small claims court is informal.\nThe judge will ask the plaintiff to give his or her side first, then will ask the defendant for his or her explanation. Be brief and stick to the facts. The judge may interrupt you with questions, which you should answer straight out and to the best of your knowledge.\nBe polite, not just to the judge, but also to your opponent. Do not interrupt. Whatever happens, keep your temper. Good manners and even tempers help the fair, efficient conduct of the trial, and make a good impression.\nAfter both sides have been heard by the judge, he or she will normally announce the decision right then and will sign and hand the parties a judgment.\n### What If My Opponent Does Not Appear For Trial?\nIf the defendant fails to appear for trial, the plaintiff will be granted judgment for the amount of the claim proven in court, plus costs, provided the plaintiff can show proof of service.\nIf the plaintiff fails to appear, the claim is dismissed; however, generally the court will permit the plaintiff to start over, if good cause for the non-appearance is shown.\n### Can You Appeal If You Lose?\nYou can always appeal to a higher court, usually the superior court in your state. If you plan on doing this, there is usually a time limit in which to file, so make sure you file your paperwork in a timely manner. Court fees for Superior Court are different than small claims, again, your county courthouse clerk can answer questions about your filing fees and procedures.\nIf you agreed to arbitration, meaning you did not see a judge, but agreed to mediation by a lawyer (in some states with heavy workloads like California, this happens frequently when you want to expedite the hearing), you ability to appeal may be limited. You need to check out these types of things before proceeding.\n### How Do I Collect My Money?\nA money judgment in your favor does not necessarily mean that the money will be paid. The Small Claims Court does not collect the judgment for you.\nIf no appeal is taken and the judgment is not paid within 30 days, or the time set by the court in the payment plan, that a transcript of the judgment be entered into the civil docket of the court. At that time you may proceed with a method of collection such as garnishment of wages, bank accounts, and other monies of the defendant or an execution may be issued on cars, boats, or other personal property of the judgment debtor. Remember, the clerks cannot give you legal advice. You may need the assistance of an attorney or collection agency at this point.\nWhen the judgment has been paid in full you must send written notice to the district court that the judgment has been satisfied.\n### How Do I Enforce a Judgment?\nIf your judgment calls for the creditor to remove or update a listing to your satisfaction, you can send a copy of it into the credit bureaus as part of supporting documentation when you request them to update your listing. Send in your credit dispute via regular mail to each of the credit bureaus. This should be more than enough to get the listings corrected.\n_Please Note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: CFPB Protects Servicemen from Financial Frauds, Benefit Scams CONTENT: CFPB Helps Servicemembers with Financial Issues\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nEvery single one of us needs consumer protection relative to personal finance products and services. However, those serving in our military not only have unique consumer rights afforded to them, but are also particularly vulnerable to violations of these rights.\nThus, the Consumer Financial Protection Bureau's creation of the Office of Servicemember Affairs.\nAs stated on the CFPB website, the Office of Servicemember Affairs exists:\n* \"To ensure that military personnel and their families have a voice at the Consumer Financial Protection Bureau. Military life can have some extra challenges that can sometimes have powerful financial repercussions.\"\nHere's how the CFPB aims to help.\nResponds to Complaints About Financial Products and Services\n------------------------------------------------------------\nIf you believe your consumer rights are being violated, the CFPB wants to hear about it.\nThe CFPB accepts complaints on any product or service relative to the financial industry, including debt collection, student loans, payday loans, mortgages, credit cards, credit reporting, auto loans, money transfers, and banking issues.\nOf all the categories, complaints by servicemembers are most often relative to debt collection practices.\nThe CFPB is particularly concerned with debt collectors illegally:\n* Contacting a servicemember's military chain of command.\n* Threatening punishment under the Uniform Code of Military Justice (which requires servicemembers maintain good finances).\n* Threatening to have a servicemember reduced in rank.\n* Threatening to have a servicemember's security clearance revoked.\nThe CFPB is also concerned about servicemember violations of consumer rights relative to:\n* Student loans, as servicers frequently provide incorrect information to servicemembers, such as that protections only apply when they are deployed (not true).\n* Payday loans, as the CFPB believes lenders routinely skirt the Military Lending Act by lending just outside its narrow parameters (which prohibits interest rates above 36 percent).\n* Mortgages, as servicers routinely fail to provide accurate and timely information about available assistance options when a military family gets Permanent Change of Station (PCS) orders.\nOnce the CFPB receives it, your complaint and any supporting documentation is forwarded on to the company for their review. The company has 15 days to respond to the CFPB and to you.\nDuring this 15-day period, you can expect to receive from the CFPB email updates on your complaint status. You can also check the status online at ConsumerFinance.gov.\n### Links You to Helpful Financial Resources\n**Saving Money**\n* Personal Financial Management Program — Offering servicemembers personalized financial planning assistance.\n* Savings Deposit Program — Providing guaranteed 10 percent interest on savings up to $10,000 while deployed.\n* Thrift Savings Plan — Retirement savings and investment plan offering an annual expected return of 7 percent.\n**Paying for Education**\n* Montgomery GI Bill\n* Post 9\/11 GI Bill\n* VEAP\/REAP\n* Loans and Grants\n* Scholarships\n**Emergency Assistance**\n* Air Force Aid Society\n* Army Emergency Relief\n* Coast Guard Mutual Assistance\n* Navy-Marine Corps Relief Society\n* American Red Cross Financial Assistance for Servicemembers\n**Other Helpful Resources**\n* General information on military pay\n* Tax information\n* Legal assistance\nThe CFPB also provides numerous links to various external resources on strategic money management.\n### Provides Tips On Protecting Your Finances\n**Avoiding VA Benefit Scams** — If you have yet to sign up for your VA benefits, be leery of anyone offering to help via phone or at your doorstep. They're scammers, as the VA does not participate in telemarketing and rarely makes house calls. What these scammers want is to steal your personal information and, subsequently, your identity, good credit, and money. Sign up for the real deal via the Department of Veteran Affairs.\n**Avoiding High Credit Card Rates** — If you have a credit card balance prior to entering into active duty, your credit card company cannot charge you more than 6 percent on your pre-active duty balance. (Note, the 6 percent cap does not apply to new credit card debt acquired while active.) So let your credit card company know as soon as you enter active duty. If they fail to comply with the 6 percent cap, submit a complaint to the CFPB.\n### Publishes Free Financial Guides\nFind links and details to all of the aforementioned resources at ConsumerFinance.gov. END

TITLE: Notice of Negative Information in FACT Act CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nOne of the interesting provisions of the FACT Act is help with identity theft by way of the Notice of Negative Information Provision, which is covered in section 623(A)(7).\nThe FACT Act requires creditors to give an early warning notice, which is to alert you that something is amiss with an account. However, the notice is not a substitute for your own close monitoring of your credit reports, bank accounts, and credit card statements.  A financial institution that extends credit must send you a notice no later than 30 days after negative information is furnished to a credit bureau. Negative information includes late payments, missed payments, partial payments, or any other form of default on the account.\nDoes This Apply Only to Accounts With a Bank?\n---------------------------------------------\nNo. A financial institution has the same meaning as under the Gramm-Leach-Bailey Act. In addition to a bank, this can mean a merchant that extends credit to you or a collection agency that routinely reports information to a credit bureau.\n### Will You Get a Notice Every Time the Account is Delinquent?\nIt's a one-time notice as long as the late payment or other negative information has to do with the same account. After the one-time notice, the financial institution can continue to report negative information about the same account. For example, if you are late on your credit card payment three months straight, you are only entitled to the notice either before or within 30 days after the first late payment is reported.\n### Will You Receive a Separate Notice or Registered Letter?\nYou will almost certainly not receive a registered letter. FACT Act requires the financial institution to give you this notice along with any notice \"of default, any billing statement, or any other materials provided to \\[you\\].\" The one place the notice cannot appear is in the Truth in Lending Act notice you get when you first open an account. The notice must be clear and conspicuous, but need not be in bold or enlarged type.\n### What Does the Notice Look Like?\nThe Federal Reserve Board was directed by Congress to write sample notices for financial institutions. Below are sample notices adopted by the Federal Reserve Board are short and to the point.\n**Notice before negative information is reported.**  We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.\n**Notice after negative information is reported.**  We have told a credit bureau about a late payment, missed payment or other default on your account. This information may be reflected in your credit report.\n### If the Original Creditor Does Not Notify You of This Negative Information, Are They in Violation of the FCRA?\nAbsolutely. You may sue the original creditor in court (or negotiate to merely have the negative information removed) for $1,000 per the terms of the FCRA. END

TITLE: CFPB Protects International Money Transfers CONTENT: How the CFPB is Protecting International Money Transfers\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nWhatever your reason for wiring money to another country, it is obviously an important one, particularly in an emergency situation. So the last thing you need to worry about is a confusing or difficult remittance process. Thus, the CFPB's oversight of international money transfers, helping to ensure the process brings you less headache and more peace of mind.\nCFPB Enforces Remittance Transfer Rules\n---------------------------------------\nTo protect consumers of international money transfers, the CFPB created the Remittance Transfer Rule, an amendment to Regulation E in the Electronic Funds Transfer Act.\nThis amendment was one of many financial reform requirements stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.\nThe CFPB not only wrote the language of the Remittance Transfer Rule, but is also tasked with its enforcement.\nThe Remittance Transfer Rule requires that remittance transfer providers do as follows during the transfer of international money orders.\n1) Disclose to consumers information about:\n* Exchange Rate\n* Fees and Taxes\n* Amount of money that will be delivered \n* Date the money will be available \n* Right to cancel the transfer \n* What to do in the event of an error \n* How to submit a complaint\n2) Allow consumers at least 30 minutes after payment to cancel a remittance if it has not yet been received, and making good on the money back guarantee regardless of the reason for cancellation.\n3) Investigate and correct errors that are reported within 180 days of the transfer date and taking responsibility for mistakes made by their agents.\n4) Complete the investigation of errors within 90 days of the complaint.\n5) Report the results of the investigation to the consumer.\nNote, institutions that process 100 or fewer money transfers are not subject to these new regulations, as they are not providing transfers \"in the normal course of business.\"\n### CFPB Writes New Rules and Regulations\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance, relative to money transfers, the CFPB proposed in early 2014 that it should be able to oversee money transfers made by non-banks. Every year, 7 million U.S. households send international money transfers through non-bank entities. This represents 150 million individual transfers totaling an estimated $50 billion.\nThe proposed rule would only apply to non-banks making more than 1 million international money transfers per year, which would affect as many as 25 non-bank entities, including Western Union and MoneyGram.\nCFPB Accepts Money Transfer Complaints\n--------------------------------------\nDid a remittance transfer provider fail to provide you with the proper disclosure information?\nDid they not allow you to cancel a transfer within 30 minutes after payment?\nDid they fail to investigate an error within 90 days of you reporting it?\nWhatever the issue relative to your money transfer, the CFPB wants to hear about it. When you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

TITLE: How the CFPB Provides Credit Card Protection CONTENT: Learn How the CFPB Protects Consumers in the Payment Card Market\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nIs there any financial product you use more than a credit, debit, or prepaid card? Likely not, thus the importance of strict regulation of the payment card market — one of many financial products regulated by the Consumer Financial Protection Bureau (CFPB).\nAdministers CARD Act of 2009\n----------------------------\nMost notably, the CFPB administers the CARD Act of 2009, enacted to \"establish fair and transparent practices related to the extension of credit,\" regulating both the underwriting and pricing of credit card accounts.\nMajor areas of the CARD Act's focus and, thus, the CFPB's responsibility, are as follows, including examples of each:\n* **Interest Rate Restrictions.** For instance, credit card issuers cannot raise interest rates retroactively. Also, they cannot raise rates going forward during the first 12 months the account is open.\n* **Fee Restrictions.** For instance, credit card issuers can only charge over limit fees if the card holder provides prior approval of them. Also, if a due date falls on a weekend or holiday, payment cannot be assessed a late fee as long as it is received by the next business day.\n* **Student Credit Card Restrictions.** For instance, credit card issuers cannot issue a card to anyone under 21 years of age unless they can a) verify proof or income, or b) get a co-signer on the card. Also, credit card issuers can no longer entice students with free gifts in exchange for a credit card application.\n* **Gift Card Restrictions.** For instance, gift cards cannot expire for at least 5 years from the date of activation. Also, gift cards cannot be assessed inactivity fees unless it has been a full 12 months since the last transaction.\n* **Billing Cycle and Payment Allocation Restrictions.** For instance, credit card issuers can no longer calculate interest charges on both the current balance and the previous month's balance.\n* **Disclosure Statement Guidelines.** For instance, credit card issuers must disclose to borrowers how long it will take them to pay off their balance if they only make the minimum payment.\nIt is the job of the CFPB to not only enforce these rules, but also to track their progress.\n### Design New and Improved Card Agreements and Disclosures\nShopping around for the right credit or prepaid card is challenging enough. But further confusing the process are agreements and disclosures that make side-by-side comparisons difficult.\nThe CFPB's simpler, streamlined credit card agreements and prepaid disclosure forms not only make comparison shopping easier, but also provide a clearer picture in keeping with the CFPB's \"know before you owe\" philosophy.\nThat said, their use is not mandatory. But, at the very least, noting what's included on the CFPB forms will help consumers know the key content to look for in other forms.\n### Maintains Database of Credit Card Agreements\nWhether you already have a credit card in mind, or you're just shopping around, the CFPB credit card database is a great go-to tool.\nAgreements of more than 300 credit card issuers are included in the database, which you can search by issuer or by specific text.\nAccepts Credit Card Complaints\n------------------------------\nDo you have a billing dispute with your credit card issuer? Do you believe an increase in your interest rates is in violation of your rights? Do you suspect fraudulent transactions? Whatever the issue relative to your credit card, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB, the complaint and any supporting documentation is forwarded on to the company for their review. Once the CFPB submits your complaint, the company has 15 days to respond to the CFPB and to you. During this 15-day period, you can expect to receive from the CFPB email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWrites New Rules and Regulations\n--------------------------------\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance, relative to the payment card market, the CFPB has ruled that:\n1. Employers cannot require their employees to receive their paychecks via debit cards.\n2. If colleges and universities are making money off student ID debit cards, they must disclose the school-bank partnership on their website.\n### Seeks Input From Consumers\nBeyond complaints, the CFPB solicits feedback from consumers on the agency's Federal Register notices. The CFPB website maintains an exhaustive list of open notices, where you can leave comments, as well closed notices, where you can read past comments as well. END

TITLE: How the CFPB Provides Credit Card Protection CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: CFPB Regulates Payday Loan Industry CONTENT: How the CFPB Protects Consumers Using Payday Loans\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nThough they're advertised as a way to help consumers make ends meet until their next payday, cash advances from payday lenders almost always do their borrowers more harm than good. Fortunately, the Consumer Financial Protection Bureau (CFPB) exists to supervise financial products and services, payday loans among them.\nFor 20 years, payday lenders operated with virtually no oversight. That is until January 2012 when the CFPB assumed formal supervision of the payday loan industry.\nIn this role, the CFPB is tasked with ensuring that payday lenders are in line with rules and regulations. If and when they are found in violation, it is the CFPB's job to step in.\nFor instance, the CFPB has taken enforcement action against two of the largest payday lenders in the country:\n* In November 2013, the CFPB ordered Cash America to refund $14 million to borrowers for the alleged robo-signing of court documents in debt collection lawsuits, as well as violations of the Military Lending Act in loans to servicemembers.\n* In July 2014, the CFPB ordered ACE Cash Express to refund $5 million to borrowers for the alleged violation of debt collection practices, including excessive phone calls, sharing details of loans with employers and relatives, and threatening to charge collection fees and report to the credit bureaus, both of which company policy states they cannot do.\nBoth Cash America and ACE Cash Express were also fined $5 million each, which goes into the CFPB Civil Penalty Fund.\n### CFPB Conducts Studies of the Payday Loan Industry\nIt's no secret payday loans are an expensive last resort for consumers who can least afford them. But nothing can shock sense into consumers and lawmakers like hard numbers that speak to just how dangerous these debts can be.\nFor instance, the CFPB's March 2014 study found that:\n* Over 80 percent of payday loans are rolled over or followed by another loan within 14 days (i.e., renewed).\n* Half of all loans are in a sequence at least 10 loans long.\n* For more than 80 percent of the loan sequences that last for more than one loan, the last loan is the same size as or larger than the first loan in the sequence.\n* Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer.\n* Most borrowing involves multiple renewals following an initial loan, rather than multiple distinct borrowing episodes separated by more than 14 days.\nThis data can be used to educate consumers, as well as to inform the writing of new rules and regulations that can better protect consumers from this too often devastating cycle of debt.\n### Educates Consumers on Payday Loans\nThe CFPB maintains an extensive database of information on all sorts of consumer financial products and services in its Ask CFPB section.\nOn the subject of payday loans, you'll find answers to questions like:\n* **_\"Is a payday lender required to offer me the lowest rate available?\"_** \n Answer: No\n* **_\"I heard that taking out a payday loan can help rebuild my credit or improve my credit score. Is this true?\"_** \n Answer: Payday loans generally are not reported to the three major national credit agencies.\n* **_\"My payday lender I could be arrested if I failed to pay back my debt. Is that true?\"_** \n Answer: No\n* **_\"Can a payday lender garnish my wages?\"_** \n Answer: Your wages usually can be garnished only as the result of a court order.\n* **_\"A payday lender told me it doesn't make loans to consumers in my state. Aren't payday loans available everywhere?\"_** \n Answer: No. Some states have laws against them.\nIf you have a question, go to Consumer Finance Protect Bureau, click on \"Get Assistance\" then select \"Ask CFPB\" and search \"payday loans.\"\nCFPB Accepts Payday Loan Complaints\n-----------------------------------\nHave you had trouble with a payday loan? Unexpected fees or interest? Unauthorized or incorrect charges to your bank account? Payments not being credited to your loan? Problems contacting the lender? Receiving a loan you did not apply for? Not receiving money after you applied for it?\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWhatever the issue relative to your payday loan, the CFPB wants to hear about it. END

TITLE: CFPB Protects Student Loan Borrowers CONTENT: How the CFPB Protect Student Loan Borrowers\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nTaking on a student loan is one of the biggest financial decisions you will ever make. Don’t do it lightly and never before exhausting every other alternative. The CFPB can help, providing resources aimed at minimizing student loan debt, and ensuring your consumer rights are protected under every applicable law. Here’s how.\nFinancial Aid Shopping Sheet\n----------------------------\nThe CFPB developed the Financial Aid Shopping Sheet as a tool to help students and their families easily compare the cost of college from one school to the next. \nThough its use is voluntary, thousands of colleges and universities are already providing it to prospective students. So if you're shopping around for schools, be sure to ask them for it.\nThe Financial Aid Shopping Sheet provides a detailed breakdown of the school’s:\n* Estimated cost of attendance\n* Grants and scholarships\n* Net cost\n* Payment options\nThe Financial Aid Shopping Sheet also includes other school-specific information, like the percentage of full-time students who graduate within 6 years, percentage of students who default on their student loans, and median borrowing rate for federal loans.\nCustomizable Tool for Comparing Financial Aid Offers\n----------------------------------------------------\nOnce you’ve compared Financial Aid Shopping Sheets, and narrowed it down to the top contenders, use the CFPB’s customizable online tool for comparing up to three schools in one report, including a side-by-side breakdown of the:\n* Cost of attendance\n* Financial aid offer\n* Debt at graduation\n* Monthly payments\n* School’s graduation rate\n* School’s loan default rate\n* School’s median borrowing\nClick here to access this interactive tool.\nStudent Loan Options\n--------------------\nBefore applying for a student loan, make sure you know what you’re getting into. To that end, the CFPB addresses key differences among all of your student loan options, like:\n* Differences between federal loans and private loans relative to repayment options, interest rates, eligibility, and loan limits. \n* Differences between subsidized and unsubsidized student loans.\n* Federal loan options (Perkins Loans, Direct Loans, and Parent of Grad PLUS loans).\n* Private loan options (state agency loans, traditional bank loans, school loans).\n* How often student loan rates change.\nYou can find answers to other student loan questions in the CFPB’s searchable online database.\nRegulation of Student Loan Industry\n-----------------------------------\nTo ensure that borrowers are protected, the CFPB oversees the student loan industry via studies, reports, investigations, legal actions, and new rules and regulations, as necessary.\nThis oversight includes, but is not limited to, the following.\n#### Predatory Lending Practices\nIn February 2014, the CFPB took action against ITT Technical Institute for predatory lending practices, alleging that ITT set students up for failure with its zero-interest private “Temporary Credit” loans, with terms that were nearly impossible to meet.\n#### Payment Processing Issues\nIn October 2013, the CFPB reported on its investigation into payment processing problems, including poor communication about payment application, snags when making small “good faith” payments, access to payment histories, lost payments, and more.\nThe report also included recommendations for how student loan servicers can do things better, like notifying borrowers when the servicing of their loan changes hands, not only before the transfer, but also afterwards; providing borrowers with timely payoff statements; and processing payments the same day they are made.\nIn February 2014, the CFPB released responses from student loan servicers about how they apply excess payments across multiple student loans. Since then, some servicers have revised their payment allocation procedures. For instance, in the event of an excess payment coming through with no allocation instructions, many more servicers are now automatically applying it to the borrower’s highest interest loan.\n#### Service Member Rights\nIn August 2013, the CFPB investigated complaints from service members that some private student loan servicers were violating the law that says any existing private loans they have for school should be cut to no more than 6 percent upon request. \n#### Affordability of Private Student Loans\nIn May 2013, the CFPB published a report on the affordability of private student loans based on more than 28,000 complaints from borrowers, including too high monthly payments, too high interest rates, no flexible payment options, no refinancing options, and lack of money to put toward housing or a car. \n#### Co-Signer Release Advisory\nIn April 2014, the CFPB advised private student loan co-signers to request a student loan release, as lenders automatically default student loans – _in good standing_ – simply because of a change in the co-signer’s situation.\nStudent Loan Complaints\n-----------------------\nWhether you’re having problems during the student loan application process or with the logistics of paying it back, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

TITLE: Small Claims Court Information by State CONTENT: List of Links to Small Claims Court Information by State\n--------------------------------------------------------\n###### Written by: Kristy Welsh\nSince this information changes periodically, we have found a wonderful legal resource you can use.  We have found a very good website, FreeAdvice, and there is information on each and every state. It shows the maximum amount you can sue for in small claims court, while providing links to the State Attorney General's office and a link to their court website.\nWe hope you find this link useful - END

TITLE: Case Law Reference - Credit Law Court Rulings CONTENT: ###### Written by: Kristy Welsh\nCase Law Reference and Links to FCRA and FDCPA Information\n----------------------------------------------------------\nDon't know which case to cite when trying to prove your point? This list was provided by a readers on our discussion boards, along with our own through research. Many of these rulings have been used to file a civil complaint against some creditors and the CRAs.\nCornell University Law School\nCalifornia Legislative Information\nLexis Total Research System\nWestlaw\nFindLaw\nGoogle Scholar\nCalifornia Courts\n### Other Case Law Information\nThe following two links list extensive court case rulings regarding credit issues.\n* Discussion Board Resources - Case Law FDCPA\n* Discussion Board Resources - Case Law FCRA\n### Specific Case Law\nWhat if someone purchases the debt from the original creditor? Yep, they fall under the FDCPA.\nAn FDCPA claim \"has nothing to do with whether the underlying debt is valid\". An FDCPA claim concerns the method of collecting the debt. Spears v. Brennan\nIs the reporting period extended if \n(A) the original creditor sells or transfers the account to another creditor, \n(B) the consumer responds to post charge-off collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? **No.**\nYou can sue the creditor who reports inaccurately as seen in Nelson v. Chase Manhattan. Also, this is now part of the newly revised FCRA.\nReporting on your credit report is considered collection activity: Boatley vs. Diem Corporation\nRichardson vs. Fleet, Equifax, Experian, TransUnion and Portfolio Recovery Associates\nRepossession Law: and whether your state has implemented it: .\nOther Case Law \nDiscussion Board Resources - Case Law\nCourt procedure in your state: USLegal SearchLaw END

TITLE: How the CFPB Protects Consumers Getting an Auto Loan CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nIt’s challenging enough getting a good deal on a car under the best of circumstances. But throw into the mix deceptive or discriminatory lending and borrowers don’t have a chance. That’s why the work of the Consumer Financial Protection Bureau (CFPB) is so essential — providing much-needed industry oversight and consumer education.\n**CFPB Regulates Auto Lenders**\n-------------------------------\nWhile the agency has no jurisdiction over auto _dealers_, the CFPB does have the authority to regulate auto _lenders_ (with the exception of non-bank lenders, though proposed regulation is pending). This is an important distinction, as oversight of auto lending enables the agency to guard against discriminatory and\/or deceptive auto lending practices.\nFor instance, in March 2013, the CFPB released a bulletin urging auto lenders to mind their Ps and Qs when it comes to the dealer markup policies associated with indirect auto lending, as it often leads to discriminatory practices. Here’s how it works.\nAuto dealers often finance loans indirectly through third-party lenders. While the indirect lender may quote the dealer one interest rate to finance the loan – known as the buy rate – the dealer may be permitted to markup the interest rate it offers to the borrower. Then both the dealer and the lender make a profit off the marked up interest.\nAs stated in the bulletin, here’s the problem with that arrangement:\n“Because of the incentives these policies create, and the discretion they permit, there is a significant risk that they will result in pricing disparities on the basis of race, national origin, and potentially other prohibited bases.”\nAnd that is a violation of the Equal Credit Opportunity Act (ECOA).\nTo guard against discriminatory lending practices, the CFPB bulletin urges indirect auto lenders to do one of two things:\n1. Impose controls on dealer markup and compensation policies, or otherwise revise dealer markup and compensation policies, and monitor and address the effects of those policies, or\n2. Eliminate dealer discretion to mark up buy rates and instead fairly compensate dealers using another mechanism, such as a flat fee per transaction\n**CFPB Takes Enforcement Action**\n---------------------------------\n**_Deceptive Practices_**\nIn June 2013, the CFPB ordered U.S. Bank and Dealers’ Financial Services to pay servicemembers $6.5 million for deceptive marketing and lending practices.\nU.S. Bank finances subprime auto loans to servicemembers. This is known as the MILES program, or Military Installment Loans and Educational Services. Dealers’ Financial Services is the company that handles the customer service arm of the operation, from marketing to loan processing.\nThe problem is that the two companies failed to disclose necessary information to borrowers regarding the military allotment system. While servicemembers understood payments would be deducted from their paychecks, they were not made aware of allotment fees or the correct payment schedule.\nIn response, the CFPB ordered U.S. Bank to pay $3.2 million and Dealers’ Financial Services to pay $3.3 million to more than 50,000 affected servicemembers.\nLearn how the CFPB helps servicememembers with other financial issues.\n**_Discriminatory Practices_**\nIn December 2013, the CFPB took its first enforcement action against an indirect auto lender for discriminatory lending practices.\nAlly is one of the largest indirect auto lenders in the country, financing loans through more than 12,000 auto dealers across the country. Unfortunately, a CFPB investigation found that Ally’s dealer markup policies unfairly discriminated against minorities.\nIn response, the CFPB ordered Ally to pay a $98 million fine -- $80 in restitution, as well as an $18 million civil penalty. Ally was also ordered to take steps aimed at preventing discriminatory lending in the future, such as stricter controls on dealer markup policies, or the elimination of them entirely.\n**CFPB Educates Consumers on Auto Loans**\n-----------------------------------------\nDo you have a question about auto loans?\nCheck out the _Ask CFPB_ section at ConsumerFinance.gov, a comprehensive database that includes a section on auto loans.\nYou’ll find answers to questions like:\n* What is a buy rate?\n* What is risk-based pricing?\n* What is mandatory binding arbitration?\n* What is forced-play insurance?\n* What is a loan-to-value ratio?\nYou can scroll through the most commonly asked questions or conduct your own unique search, sorting by most relevant, most helpful, most viewed, or most recently updated.\n**CFPB Accepts Auto Loan Complaints**\n-------------------------------------\nDo you have a complaint about an auto lender’s marketing tactics? Did you have a problem with the application process? Do you believe you were discriminated against? If you already have a loan, have you had an issue with the processing of payments? What about a violation of your rights in the event you were unable to pay?\nWhatever the issue relative to your auto loan, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

TITLE: CFPB Protects Consumers in the Housing Market CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nOf all the financial decisions you make over the course of a lifetime, deciding to buy a home likely tops the list. For this reason, the Consumer Financial Protection Bureau (CFPB) is particularly invested in oversight of the mortgage market.\n**CFPB Regulates the Mortgage Industry**\n----------------------------------------\nNumerous rules and regulations exist to protect consumers in the mortgage market. If and when these rights are violated, it is the job of the CFPB to step in.\nFor instance:\nIn May 2014, the CFPB fined RealtySouth $500,000 for neglecting to disclose that the company it was recommending for title and closing services one of its own affiliates.\nIn July 2014, the CFPB joined with the FTC in taking action against nine mortgage assistance relief servicers. In what was known as Operation Mis-Modification, the agencies discovered these servicers were engaged in illegal practices, like collecting up-front fees and promising foreclosure prevention.\nIn August 2014, the CFPB took action against mortgage lender Amerisave for deceptive practices, including misleading consumers about interest rates, charging upfront fees before providing a Good Faith Estimate, and neglecting to disclose to consumers that appraisals were being made by one of its affiliates. For these violations, the CFPB fined Amerisave and its affiliate, Novo Appraisal Management Company, $19.3 million, and fined owner Patrick Markert an additional $1.5 million.\n**Proposes and Enforces Mortgage Rules**\n----------------------------------------\n“It is critical that we shed more light on the mortgage market — the largest consumer financial market in the world,” says CFPB Director Richard Cordray.\nTo that end, in January 2014, the CFPB’s new mortgage servicing rules went into effect, including changes relative to:\n* Loans based on a borrower’s ability to pay\n* Qualified Mortgages (i.e., mortgages considered by the CFPB to be ones that borrowers have the ability to pay on)\n* Steering restrictions\n* Improved loan management\n* Foreclosure process limitations\nThen, in July 2014, the CFPB proposed new rules governing the reporting of mortgage data, largely to ensure lenders are not engaging in discriminatory lending practices.\nThe proposal called for a number of changes, but most notably for lenders to:\n1. Report property value, term of the loan, total points and fees, duration of any teaser or introductory interest rates, applicant’s or borrower’s age, and credit score.\n2. Report more details about underwriting and pricing, including applicant’s debt-to-income ratio, interest rate of the loan, and total discount points charged for the loan.\n**Promotes “Know Before You Owe” Initiative**\n---------------------------------------------\nThe CFPB’s simplified mortgage disclosure forms help ensure borrowers understand what they’re getting into, particularly relative to\n1. Risk factors\n2. Short-term and long-term costs\n3. Monthly payments\n**Offers Mortgage Data Tools**\n------------------------------\nWhat types of mortgages are being approved in your area?\nWhat types of borrowers are being approved these loans?\nWhich lenders are approving them?\nThese are all questions you can answer via the CFPB’s mortgage data tools, an invaluable resource for being as informed as possible before throwing your hat into the housing market.\n**Advises Free Foreclosure Help**\n---------------------------------\nRather than allow the fear and uncertainty of losing a home to foreclosure cloud your judgment, the CFPB advises you to use caution when it comes to mortgage assistance relief companies:\n* Do not do business with anyone who asks for upfront fees before they have performed a service\n* Do not do business with anyone that guarantees they can stop the foreclosure process (there is no such guarantee)\nIn fact, instead of _paying_ someone to help you stop a foreclosure, the CFPB says you are far better-served utilizing free resources.\nThe CFPB website links to state agencies and HUD-approved housing counselors that can help.\n**Provides Training for Housing Counselors**\n--------------------------------------------\nIf and when you need to contact a housing counselor for help in avoiding foreclosure, you need them to be up to speed on the latest mortgage servicing rules.\nTo that end, the CFPB created the _Guide to Mortgage Servicing Rules_, covering:\n* The 10-step loss mitigation process\n* Foreclosure prohibitions\n* Charges and fees that can be imposed on a borrower\n* The error resolution process\n* Borrower requests for information\n* Borrower requests for payoff statements\nThe CFPB has also provided on-site and virtual training to thousands of housing counselors nationwide.\n**Accepts Mortgage Complaints**\n-------------------------------\nHave you had trouble with a home loan? Problems applying for a mortgage? Being approved or denied credit? Trouble understanding the loan? Issues with payments? Issues when signing the agreement? Problems resolving things if and when you were unable to pay?\nWhatever the issue relative to your mortgage, the CFPB wants to hear about it. When you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

TITLE: CFPB Regulating the Credit Reporting Bureaus CONTENT: CFPB Regulates the Credit Reporting Industry\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nFew things affect your financial well-being as much as much as your credit reports and scores. Thus, the importance of the Consumer Financial Protection Bureau’s (CFPB) regulation of the vast, often confusing, credit reporting industry.\n**Enforces the Fair Credit Reporting Act**\n------------------------------------------\nSince 1970, the Fair Credit Reporting Act (FCRA) has been protecting the rights of consumers. It is the job of the CFPB to ensure that it does just that, taking necessary action if and when credit reporting companies are in violation of your rights.\n**Supervises Credit Reporting Companies**\n-----------------------------------------\nIn 2012, the CFPB became the first federal agency with formal jurisdiction over the operations of credit reporting companies. The industry is much bigger than many people realize, not only including the three major credit bureaus — Experian, TransUnion, and Equifax — but hundreds more companies involved in compiling, selling, reselling, and analyzing information on credit reports.\nThat said, the CFPB’s regulation is limited to companies earning more than $7 million in annual receipts. However, this represents 94 percent of the market. This includes around 30 agencies, the three major bureaus among them.\nIn this role, the CFPB is tasked with overseeing the accuracy and proper implementation of:\n* Reporting accurate information\n* Dealing with credit reporting disputes\n* Disclosing credit report information to consumers\n* Protecting consumers from fraud and identity theft\n#### **_Special Bulletin to Specialty Consumer Reporting Agencies_**\nIn November 2012, the CFPB issued a bulletin to specialty consumer reporting agencies, stressing the importance of providing a free annual credit report to consumers. \nThese specialty agencies are those that compile and\/or sell information specific to consumer medical debt, check writing, tenancy, employment, etc.\nJust like the three major credit bureaus, these specialty agencies must make it clear and easy for consumers to request a copy of their report every 12 months, a point on which some were falling short.\n#### **_Revisions to Credit Reporting Dispute Process_**\nOften, the best way to prove that a listing on your credit report is incorrect is for you to send along supporting documentation. Unfortunately, the credit bureaus were notoriously lacking in their ability to pass this supporting documentation along to the creditor charged with investing your claim. No more.\nAt the CFPB’s urging, the credit bureaus have incorporated into their e-OSCAR program the ability to easily include this supporting documentation for the investigation of disputes.\n#### **_Consumer Advisory on Child Identity Theft_**\nIn May 2014, the CFPB issued a warning on the prevalence of identity theft among foster children. Their information is stored in agency databases and may be shared with numerous people over the years. As a result, foster kids are particularly vulnerable to identity theft.\n**Compiles Reports on the Credit Reporting Industry**\n-----------------------------------------------------\nIn September 2012, the CFPB published _Analysis of Differences Between Consumer- and Credit-Purchased Credit Scores_. This addresses the much-misunderstood reason consumers see different scores than those used by creditors to make lending decisions.\nIn December 2012, the CFPB published _Key Dimensions and Processes in the U.S. Credit Reporting System_, a review of how the nation’s largest credit bureaus manage consumer data.\n**Answers Credit Reporting Questions via Ask CFPB**\n---------------------------------------------------\nGet the facts in the Ask CFPB section of its website, with questions ranging from the basics – like “How do I get a credit report?” and “How do I get and keep a good credit score?” — to more complicated concerns, like:\n* Should I use a credit monitoring service to protect myself from identity theft?\n* What should my dispute letter to a credit reporting company look like?\n* What can I do if I disagree with the results of a credit report dispute?\nTo ask your question, or browse through those most commonly asked, go to ConsumerFinance.gov. Click on Get Assistance, select CFPB, and search the Credit Reports and Scores category.\n**Accepts Consumer Reporting Complaints**\n-----------------------------------------\nIs a dispute of a listing on your credit report going unanswered? Did you receive an answer, but it failed to correct a listing you know to be erroneous? Are you having trouble accessing the free credit reports you are entitled to every 12 months, not only from the three major credit bureaus, but specialty credit agencies as well?\nWhatever the issue relative to credit reporting, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END

TITLE: Vacating a Judgment - How to Vacate or Dismiss a Judgment CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 21, 2017_\nDid someone file a judgment against you? If they did, there is a chance you can get it dismissed or vacated. Vacating a judgment is basically the equivalent of stamping a big fat red \"VOID\" on the judgment paperwork. When you file a motion to vacate a judgment you are basically filing an appeal to the court on the case.\nWant proof that this method works? Read these two success stories from our Discussion Forum - Success in Vacating Summary Judgment and Default Judgment Vacated.\nBasic Information on Dismissing a Judgment\n------------------------------------------\nFiling a motion to dismiss a judgment is like filing an appeal on the outcome of a jury trial. If the outcome was not fair, and you have good reason why the court should overturn its prior ruling, you should file a motion. Don't be intimidated by the thought that you are challenging a court ruling, it happens all of the time.\nAs with many collection agencies, many people who file lawsuits to collect money from you in court didn't follow the law. You may be asking yourself why the judge didn't know about this improper deviation. As in most professions, judges tend to specialize in one type of case. For the same reason that you can't expect a heart surgeon to know the best psychiatric medications to prescribe to a patient with schizophrenia, a judge doing small claims or injury lawsuits may not be intimately familiar with consumer law. Sure they know the basics, but one person can't know everything. Before deciding on a case, most judges need to look up and study existing statutes and case rulings. In addition, if the person who sues says they followed the correct procedure and the defendant or his lawyer does not dispute it, it's a sure bet they were given the benefit of the doubt.\nAnother thing to look out for is even if the person suing you followed all the right court procedures, you can still win on technicalities. The two biggest reasons a judgment is \"won\" are:\nA) Defendant failed to respond to the court summons with the proper paperwork in the allowed period of time.\nB) Defendant failed to appear for their court date so the Plaintiff won by default.\nIf you receive a judgment or a writ of restitution and you believe you had a good reason for not responding to the eviction summons or appearing at the hearing, there still may be grounds for asking the court to vacate the judgment. If the court agrees you may have had good reasons for not responding or appearing, the court may decide to set a hearing on your motion to vacate the judgment.\nBecoming Familiar with Legal Terms\n----------------------------------\nA **judgment** is the actual court decision stating that the person suing is in the right. It issues the method to \"right the wrong,\" such as fines, the actions you need to take to correct the violation, or the amount of money you need to pay the Plaintiff.\nA **writ of restitution** is generally used only by landlords. It is basically a court order, in writing, that would be given to a sheriff to evict you if your landlord was trying to get you to move based on non-payment.  Below are a few terms you should become very familiar with as they will be used a lot in legal documents and conversations.\n1. _**Vacate**_ means dismiss.\n2. _**Plaintiff**_ is the person suing you.\n3. _**Defendant**_ is the person being sued (you).\nPrepare Your Motion to Vacate\n-----------------------------\n**The first thing you should do before preparing a motion to vacate is to look up your state's rules of civil procedure.** It should spell out exactly what you need to do to file a motion. It will also tell you what reasons are valid, and may include the exact language you need to use. **If you don't follow the procedures, you can get your motion thrown out on a technicality.**\nMotion and Declaration to Vacate Judgment\n-----------------------------------------\nA sample document is included at the end of this article, which can be used as a template to write up your motion. This document tells the court why the judgment against you should be vacated. First, you need to identify the case by name and court reference number and all the persons involved in the judgment.\nNext, explain your reasons for bringing the motion. State your procedural defenses, that is, the reason(s) why you did not respond to the summons and complaint on time or appear at a hearing. For example:\n* I was not served with a summons and complaint — you need to check your state laws here. Some states say that a non-certified letter delivered by U.S.P.S. is all that is required to properly serve a complaint. Most states, however, require that you be served in person or at least get your summons sent certified, return requested mail. Double check you state and county procedures regarding the proper service requirements.\n* I responded to the summons and complaint in time, but a judgment was issued anyway without a hearing.\n* I was not able to answer the summons and complaint or appear at the show cause hearing because.....(fill in the blanks)\nIn the same space, also tell the court about your defense to the judgment or why the case would have been dismissed had you shown up in the first place. For example:\n* The collection agency never responded to my request for validation, therefore never providing proof that the debt was mine under the FDCPA.\n* The amount of the debt exceeded the state's usury interest limits.\nPlease note that the court will only respond to violations of existing laws. They won't accept reasons like: \"My insurance company was supposed to pay this debt and never did, therefore I shouldn't have to pay this medical bill.\"\nHow to File the Paperwork\n-------------------------\nMost likely, you will have to file your motion at the same court which granted the judgment in the first place, which means that if the judgment was granted in Anchorage, Alaska, and you now live in Miami, Florida, you will have to fly to Alaska to both file the paperwork and to attend the court trial.\nGo to the courthouse with your typed document and tell the court clerk that you are filing a motion to vacate a judgment. There may be additional forms to fill out at the courthouse, and there will probably be a nominal filing fee. The clerk should know exactly what needs to be done with your paperwork, and can answer all of your questions and even help you fill out the forms.\nOnce your paperwork is in order, the court will notify you of the upcoming court date. The person who originally sued you, the Plaintiff in the original suit, will typically have 35 days to respond.\nNotify The Original Plaintiff\n-----------------------------\nIn some cases, once the paperwork is filed the court will notify the Plaintiff and\/or Plaintiff's attorney. Be sure to ask if the court will serve notice or if you need to, as serving the notice of summons is crucial to winning your case. If it is your responsibility to serve notice, you can hire a third-party professional service company for a nominal fee.\nWhat If They Offer to Settle Out of Court?\n------------------------------------------\nVery often the original Plaintiff in your lawsuit will come back to you and offer to vacate the judgment, especially if they blatantly flouted the laws in winning the case in the first place and have no proof, say that you were properly served, or that they violated the FDCPA, etc.\nIf they offer to settle out of court, you should demand that they themselves file paperwork to dismiss the lawsuit. Also demand that they notify any collection agencies they may have hired to collect money and also notify the credit bureaus of the \"mistake.\" It is also crucial before accepting any settlement offer (in writing, naturally) that they send you copies of any paperwork received from the courts about the judgment vacation or dismissal.\nWhat Happens at Court?\n----------------------\nIn the best of all possible scenarios, the Plaintiff will not show up for the hearing to dismiss and you will win by default. If this happens, you shouldn't have to present anything to the court and should receive your dismissal automatically, especially if the Plaintiff never responded in writing to the summons.\nIn the second best of all possible worlds, they show up to the hearing and are unable to disprove your reason for requesting the dismissal.\n1. They are unable to show proper documentation that you were properly served.\n2. They are unable to show that the debt was legal in the first place (unable to show what the correct debt amount should be, if a contract existed in the first place, etc.)\nThis means, of course, that you should have good documentation on the case and have it available to present in court. Read our article Suing your Creditors.\nWhat Happens When You Win?\n--------------------------\nYou should receive a court document showing that the case was dismissed. Send copies of this document to any collection agency that's contacted you about the case and to the credit bureaus so they will remove any mention of the judgment from your credit report. Even though you demanded that the Plaintiff do this, it only takes a few minutes and a few stamps to insure that it gets done promptly by doing it yourself.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END

TITLE: CFPB Protects Against Illegal Debt Collection Practices CONTENT: How the CFPB Protects Consumers in the Debt Collection Process\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nRegardless of any unpaid debt you may owe, there are limits to what creditors and debt collectors are legally allowed to do in collection of the debt. However, these rules are routinely violated by agencies that should (and likely do) know better.\nFortunately, the CFPB is on your side, protecting consumers in the often stressful, confusing, and costly debt collection process. Here’s how.\nOversees Debt Collection Industry\n---------------------------------\nIn October 2012, the CFPB announced its oversight of the nation’s largest debt collectors, which includes those that log annual receipts of more than $10 million through debt collection action. Though this limits the CFPB’s jurisdiction to around 175 agencies, their activity represents more than 60 percent of debt collection activity in the U.S.\nIn July 2013, the CFPB put debt collectors on the alert, producing two separate bulletins stressing the importance of avoiding 1) unfair, deceptive, and abusive collection practices; and 2) misleading consumers about how paying (or not paying) a debt may affect credit reports, credit scores, and creditworthiness.\n**Publishes Annual Fair Debt Collection Practices Report**\n----------------------------------------------------------\nEvery year, the CFPB publishes a report on the landscape of the state of debt collection practices, including an overview of:\n* Number and type of debt collection complaints received by both the CFPB and the FTC\n* CFPB responses to debt collection complaints\n* How the CFPB supervises and enforces debt collection best practices\n* Community education and outreach on debt collection rights of consumers\n* How the CFPB conducts research, sets new policies, and writes new rules\n### **Provides Consumers with Sample Action Letters**\nEven when consumers know their rights relative to debt collection, that doesn’t mean they always know what to do about it, particularly when it comes to communication with creditors and debt collectors.\nThus, the CFPB’s provision of 5 sample action letters consumers can customize to fit some of the most common issues, including:\n1. Requesting more information about a debt (e.g., how much you owe, who the original creditor was, when the account was opened, date when the account became delinquent, etc.)\n2. Requesting proof that you owe the debt (without which they must cease collection)\n3. Instructing a creditor or debt collector how you want to be contacted about the debt\n4. Instructing a creditor or debt collector to _stop_ contacting you about the debt (with the understanding that you are still legally responsible for it)\n5. Notifying a creditor or debt collector that you have hired a lawyer (through whom all further communication should be directed)\n### **Writes New Debt Collection Rules**\nIn November 2013, the CFPB appealed to the public for feedback before writing new debt collection rules. There were a number of questions asked of participants, covering topics ranging from debt collection litigation to the use of email, texting, and social media for debt collection purposes.\n### **Takes Legal Action Against Shady Debt Collection Practices**\nIn July 2014, the CFPB took action against Georgia-based Frederick J. Hanna & Associates, an agency that files debt collection lawsuits. The CFPB says the agency is guilty of submitting deceptive court filings and\/or providing evidence that was faulty or unsubstantiated, violating the rights of consumers.\n**Ask CFPB**\n------------\nIf you have a question about your rights relative to debt collection, the CFPB website is a great place to turn. The Ask CFPB section includes a debt collection category, with answers to some of the most commonly asked questions, like:\n* What is harassment by a debt collector?\n* What information does a debt collector have to give me about a debt?\n* What is the best way to negotiate a settlement with a debt collector?\n* Can a debt collector try and collect on a debt that was discharged in bankruptcy?\n* What should I do if a creditor or debt collector sues me?\nTo search for debt collection information on the CFPB website, go to ConsumerFinance.gov. Click on \"Get Assistance\" and then select \"Ask CFPB\".\n**Accepts Debt Collection Complaints**\n--------------------------------------\nIs a debt collector ignoring your requests for proof you owe the debt? Are they using abusive intimidation tactics in trying to collect? Are they continuing to contact you about the debt despite your formal letter requesting them to stop?\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWhen you submit a complaint to the CFPB:\n* Your complaint and supporting documentation is forwarded to the company for their review.\n* The company has 15 days to respond to the CFPB and to you.\n* The CFPB provides you with email updates on your complaint status.\nWhatever the issue relative to debt collection, the CFPB wants to hear about it. END

TITLE: Information on Tax Levies, Tax Liens, Wage Garnishment CONTENT: Articles on Taxes, Tax Liens, Tax Levies, AMT\n---------------------------------------------\n###### Written by: Kristy Welsh\nCredit Info Center not only provides information on how to fix your credit and get out of debt, but we also offer information on taxes. Tax codes change all the time but there are some things that remain the same — tax levies, how to avoid an IRS audit, and how to negotiate back taxes with the IRS. All of these topics, and more, are covered in the articles below. \nAlternative Minimum Tax (AMT) — Learn what alternative minimum tax is and if it applies to you. This article explores the history of AMT and how to minimize and plan for this year end tax.\nWhat is a Tax Lien? — A tax lien can be filed by the state or the federal government against you for taxes owed. Find out more about tax liens and how to release one.\nWhat is a Tax Levy? — If you owe the IRS money, they can legally seize your assets to pay off your tax debt. Learn more about tax levies and how to handle a levy from the IRS.\nDifferent Types of Tax Levies — There are three ways the IRS can seize property from you to pay off your tax debt. This article describes all three methods and how to know when an IRS tax levy has ended.\nWhat is an IRS Offer in Compromise? — If you are looking for a way to settle your tax debt with the IRS, and Offer in Compromise might be the best solution for your situation. Learn what an OIC is and if it will work for you.\nHow to Negotiate Your Tax Debt with the IRS — If you owe money to the IRS, there are ways to negotiate a deal to settle your debt.\nTips to Avoid an IRS Audit — With only one percent of all tax files flagged for audit, you want to do all you can to avoid having to go through this painful and time consuming process.\nCollege Grad's Guide to Filing First Tax Return — First job and first paychecks mean having to file an income tax return. If you are a recent college grad, here are some suggestions to get you ready to file your tax return.\nWhat is Taxable and Non-Taxable Income? — You think you know what is taxable income and what is not — you might be surprised.\nCan Unpaid Taxes Affect Your Credit? — The mere fact you owe the IRS money isn't automatically reported to the credit reporting agencies, a tax lien is. If you owe the IRS money, learn if it will it show up on your credit report, and if it does, how to get rid of it. END