Sued for Old Credit Card Debt? Don’t Make A Payment!

I have to say that I’m excited by the actions that some of the Attorney Generals in this country are taking. Right now in Washington State Rob McKenna is going after a subsidiary of Bank of America and Gary King in New Mexico just announced a new rule for time-barred debts. It stands to reason that other states will follow suit and this is a HUGE VICTORY against the junk debt collectors that feed off consumers who do not realize that their old debt is beyond the statute of limitations.

Here’s the deal with consumer credit card debt. It has a statute of limitations. This means that after so many years (it varies by state, average seems to be about six years but in some states is as little as 3)a debt collector may continue to pursue collection efforts but cannot sue you in a court of law.

Well, entire armies of debt collectors have been getting rich using the court system for YEARS! They issue a Complaint or Lawsuit against a debtor who has old debt. Most of the time this debt has been sold and resold to various debt collectors and is bought for pennies on the dollar. The original issuing creditor has long since written off the debt, thus relieving their tax burden.

The debtor receives a summons from the court to appear in the lawsuit. At this point they have three options. They can hire a lawyer to defend themselves, they can respond Pro Se (without an attorney) and defend themselves or most commonly they panic and do nothing.

A summons generally must be responded to in what is called an “Answer” within 20 days or a default judgment is granted. This is what happens in over 95% of credit card debt lawsuits.

No one responds to the lawsuit, the lawyer doesn’t even have to be in the courtroom (most of these cases are handled by mail) and a default judgment is granted and the debtor now has a judgment on their credit report and the collector has the legal means to garnish their wages or freeze bank accounts until their judgment is paid in full AND legal fees, interest and penalties are tacked on to the original amount owing.

Default judgments should NOT happen. The worst case scenario for most of these cases should be a settlement at a reduced amount.

The exciting thing about this victory in New Mexico is that a new rule has been enacted by the Attorney General that will require debt collectors to inform debtors that their debt is time-barred and past the SOL by telephone AND in writing.

Plus it will force them to INFORM the debtor that if they make a payment it will RE-START the SOL CLOCK. That’s right. I’ve seen $20 payments on debt that was well past the SOL (10 years or more) totally sabotage people’s efforts to defend themselves in court. One payment no matter how small starts the clock back to zero.

Cash Advance Loans With No Credit Check – Extra Cash For Any Purpose

Tough financial times and weak economy have a great impact on ordinary American families, thus, cash advance services are rather popular in the USA. Some people turn to the companies providing small personal loans in order to stretch till the next paycheck, others take out payday advances to pay off the urgent bills. In fact, the reasons may differ, but the purpose is similar – to get some extra cash.

Payday Advance Loans Are Available Online

Payday loan lenders have extended their business to the Internet and started to offer online cash advance that can be taken in 1 hour. They have actually simplified the application process, so that people could obtain the necessary amount of money sooner rather than later. Such easy and fast procedure attracts a number of consumers searching the most hassle-free way of borrowing. It is natural that people get tired of the constant fuss of modern life and most of them prefer to stay at home and apply for no credit check loans instead of driving over the city looking for a reliable lending store.

Can You Borrow Money Without Paperwork?

Everyone definitely faced an irritating paperwork that is usually associated with most of services, especially if they are connected with finances. Personal documents help to identify the individual and verify the provided information, thus, they are usually required by most of lenders. Unlike traditional banks and credit unions, online lending stores perform cash advance with no faxing as the personal data provided in the application is usually enough for them to make the credit decision. However, in rare cases they may require some papers to be faxed.

Bad Credit Borrowers Can Qualify

Consumers with bad credit score are usually considered as borrowers of high risk. The data provided by the credit bureaus often determines the possibility of any person to borrow money. Online cash advance lenders do no credit check making the service available even for people with damaged credit report. The sum of money that can be taken out through online payday loan store is usually up to $1,500, though, the amount may vary depending on the lender. Besides, the loan terms differ according to the state you live in. The financial reform that was launched recently all over the country has changed some points of legislature concerning the lenders of small personal loans. Thus, it is better to ask the company’s representative about the major terms and conditions before making decision to apply for payday cash advance loan.

Description: Online lending services are wide-spread and popular options today as they help to save time and sometimes even money. Besides, they are convenient and fast. Then, why not to borrow money via Internet?

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All about college credit cards

College credit cards are the credit cards that have been specially designed for college students. College credit cards are more popularly known as student credit cards. College credit cards allow the students to experience the benefits of credit cards much earlier in their life. Through college credit cards, the college students are able to learn more about credit cards and their use. In fact, for most of the students, their college credit card is their first credit card that acts as a gateway to the world of credit cards. Some other students might have previously used supplementary credit cards linked to their father’s credit card account; however, for such students too, their college credit card is the first one that is truly theirs.

College credit cards are not very different from other types of credit cards in the basic sense; they function in the same way as any credit card would. However, there are some differences, which basically arise from the fact that college credit cards are used by people who have no prior experience with credit cards and who perhaps don’t understand the concept of credit cards completely. Hence, the credit card supplier is at risk with issuing credit cards (college credit cards) to such people whom he is not sure about. Most of the students don’t have a credit history either. In such a case, the supplier of college credit card cannot be sure of receiving the credit card bill payments in time (and even receiving them at all). To counter such risks, the supplier of college credit card requires the parent of the student to co-sign the college credit card application form as a guarantee. Moreover, the credit limit on college credit cards is generally around $500-$1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to fulfil the typical needs of a student). Another risk mitigation instrument used by the college credit card suppliers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to dissuade the students from overspending on their college credit card (and finally not being able to pay their credit card bills).
However, if we were to look at these impositions in a positive sense, we would find that these are actually in favour of the student (who is still getting trained to take on the real world of credit cards).  Moreover, college credit cards also help the students in establishing a (good) credit history which is another important benefit that becomes handy when the student needs any type of  loan at a later stage in his/her life.

So, college credit cards are really something that every student should consider going for.