Collection Agency Woes
I talked with somebody about a call that they received and wanted to make sure that anybody visiting this site is aware of how to deal with this kind of thing. The call was from a company called Jason Head LLC (I think), and they were trying to collect on a debt from 2000. To begin with, she doesn’t know anything about this debt. Upon asking for more information about it, though, she was yelled at about how she should know about it and everything like that. The woman on the phone even went so far as to call her a broke-ass bitch.
Now, I can’t even begin to tell you how many violations they had here, so I’m not even going to try. If you get any calls like this, then write down everything that happens. You also need to know what your rights are, given by the FDCPA. No collection agency employee is allowed to talk to you like that. Every single time they do, you’re entitled to a maximum of $1,000 for each violation.
To make matters worse, she was told that this debt was incurred in 2000. Pretty much anywhere she could be, this is going to be out of the statute of limitations for the state. Since it’s been 8 years, this debt is non-collectible. They can be fined for trying to collect on a debt that is outside of the statute of limitations.
With all of this going for her, I drafted up a complete cease and desist letter. I mean, they had her crying on the phone, trying to collect on a debt that they are not legally allowed to collect on. They’re just bottom feeders, trying to make a buck on a debt that may or may not be valid, and they don’t even care. If you’re interested, the company behind this is Jason Head LLC. That’s what she told me it was, but I haven’t checked too much into it. I did some searching online and found many other people who had the same situation. If you get any calls from them, be glad you’ve read this post on the site. I can almost guarantee that they are collecting on a debt that they aren’t legally allowed to collect on.
What do I recommend in this case? If you’re not comfortable with a full cease and desist, then at least send them a letter stating that they are not allowed to call you or anybody you know in an attempt to contact you. Tell them they can only contact you by mail. This will keep them from breaking down your spirit over the phone. The next step is to send a letter request validation of the debt. This can be done at the same time, though. I’ll post a sample debt validation letter later, but my point right now is to let you know what your goal is. Don’t give them any information. They will tell you that you need to prove the debt isn’t yours, but they’re lying to you. It is THEIR job to prove that they are allowed to collect on the debt. That’s what this debt validation letter does. Anyway, if you get tracked down by these bastards, trying to collect money that you don’t owe, remember everything that you read here today.
Good Luck
Bankruptcy and Your Credit Scores
One of the things that many uninformed people like to share with their friends who may be considering bankruptcy is how bad of a drop your credit score is going to suffer. Now, it all depends on your situation before the bankruptcy, but there are ways to get your credit score back up quickly.
The absolute best thing you can do for you credit is to go out as soon as possible after the bankruptcy discharge and acquire at least one or two new lines of credit. Unsecured lines are better, but secured lines of credit will work too. Your most important goal is to get some company putting positive information on your credit report on a regular basis. In fact, if you’re monitoring your credit scores, you may notice a small jump just for getting the new credit. Positive accounts go a long way to rebuilding your score in the long term.
It’s hard finding places that will give you a credit card, with bad credit. It’s even harder when you have a bankruptcy under your belt.
Here are a few places that I recommend checking out, based on my experiences. (In no specific order)
- http://tipstofixcredit.com/recommends/UnsecuredForBadCredit
- http://tipstofixcredit.com/recommends/UnsecuredForBadCredit-2
Below are a couple Secured cards that you can get to help rebuild your credit.
– I read through the Terms and Conditions of the Secured Cards directly above and want to make sure you know everything before getting into one of them. First of all, if you are interested in one of those 2 cards, then ignore and close the popups that show up during the process. They are only there to distract you from your goal, which is completing the application for the card. These 2 cards are GUARANTEED approval, but you have to have a little bit of money ready for them. They have a $99.95 processing fee, which is paid immediately from your checking or savings account. They also have a $59 annual fee, which is probably charged to the card immediately. After you’re approved and pay the processing fee, you will need to fill out a savings account form which is returned to the bank, along with your initial deposit. In reality, you’re opening a savings account with this bank, which is used if you default on your payment. They provide a decent interest rate too, averaging 3% for the first year and 2% after the first year. You are allowed to deposit a minimum of $300 and a maximum of $5000 to your account, which directly relates to your credit limit on the card. The company also reports to the major 3 credit bureaus, so based on my research I think that they would be a good candidate to go with for a secured credit card.
In a later post, I’m going to talk about the other part of credit repair, which is removing the negative items from your credit report. It’s not that hard to do, but rebuilding your credit with positive accounts is the absolute best thing to do, in order to raise your credit scores after bankruptcy.
Rebuilding Credit After Bankruptcy
Since this is a new blog, I’m going to try to start out hitting for the bleachers with my first post. One of the reasons that many people are so hesitant to file bankruptcy to get out of their current debt situation is that they are concerned with what it will do to their credit. The problem is that there are so many people who don’t know what they’re talking about trying to provide advice. Well, I’m going to denounce a lot of what you’ve heard. Yes, it is more difficult to get credit after bankruptcy, but no, it’s not impossible. Yes, your credit score will take a major hit, but if you start rebuilding right away, then you can bounce back up into the 700′s relatively quickly. Yes, a bankruptcy is supposed to stay on your credit report for 10 years, but there is no law requiring that.
I’m going to make it plain and simple for you. Yes, you can come back from filing bankruptcy very quickly, if you’re willing to put in the work. It involves a little rebuilding, a little repair, and a little luck, but it’s worth it. There are ways to even remove the bankruptcy completely from your credit report, and we’re eventually going to touch on that in this blog. If you put in the work and dedication, then it’s possible to get your score back into the high 600′s or low 700′s within 1 – 2 years from your bankruptcy.
The absolute MOST IMPORTANT thing that you have to be aware of, though, is that you learned your lesson about what got you into the bankruptcy in the first place. The laws exist to help you out in the event of mistakes, or activities that happen outside your control. If people take advantage of them in an effort to get free stuff, then those laws will change and make it harder for those of us who need the second chance. Don’t go into credit repair without first realizing why you have to do it. If you do, it’s just going to be a never-ending cycle, which is what we all want to avoid.
Welcome To My Credit Repair Thoughts!
Thank you for taking the time to visit this site. I’m going to share everything I know about rebuilding credit, and even offer up a lot of stuff that I don’t know. Let me know what you’re interested in hearing about too, so I can do some research and provide everything that you want.
I have learned a lot about what it takes to rebuild credit, and my goal is to pass that information on to you. It can take hours of searching to find the answers that you’re looking for, which is why I’m here to present it all to you, in a nice, readable format. I hope you enjoy this site, and please bookmark it so you can come back often. Repairing your credit isn’t a quick fix, but a long time effort. There are many things that you will learn along the way, and the game is changing all the time. Make sure you stay on top of it by keeping informed.
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