7 Texts You Should Ignore

Whether you’re trying to win tickets to a sold-out concert, remind your partner to buy milk, vote for your favorite reality TV personality or ask your headphones-encased kid a question, there’s a text for that. While texting is a great convenience and time saver (not to mention an international obsession), if you respond to a wrong text — think: Wyle E. Coyote and the Roadrunner — look out below!

Phishing via text works the same way as email, the only difference is format, tone and, of course, length. The goal remains to commandeer as much information about you as possible (to use for fraud) and/or take control of your device. The pilfered information can be seriously harmful to your sanity, not to mention your finances, since scam artists are always looking to make a quick buck at your expense.

There are many texts you should handle with kid gloves, and still others that you should ignore.

Get Help Now

Privacy Policy

I’m not talking about the obvious “don’ts” here, like looking at texts that were not sent to you. (Oh, and in case you missed that memo, sneaking a peak at your partner’s texts is and always will be a one-way ticket to relational oblivion.) What you need to worry about are texts that could have plausibly been sent to you.

This latter category of text is not always obviously fraudulent. The same thing that makes texting second nature to you is what makes it a potential hazard to your personal information safety.

  • I just watched a documentary on the dark web, and I will never feel safe using my credit card again!

  • Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.

  • I need that peace of mind in my life. What else do you get with ExtraCredit?

  • It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.

  • It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.

  • …we live in Oklahoma.

Regardless of their apparent merit, instead of replying to unsolicited texts directly, you should call the purported sender directly to be sure they aren’t trying to contact you.

With that in mind, here are seven texts you’ll want to be wary of.

1. Texts From Your Bank With Links

Automatic transaction alerts are an excellent security measure. You can set an alert on your checking and savings accounts to cover all kinds of parameters, such as the minimum balance you have to maintain without incurring a fee, a trigger amount on a withdrawal and more. These can be delivered via text, and here’s the thing: the SMS version from your bank will never contain a link. If you get one that does, ignore it. You can also call your bank directly.

2. Texts From the IRS

This is the easiest phishing scam to detect. The IRS never sends texts — ever. It’s also worth noting that the IRS won’t email you about official business either. The only way to do business with the IRS is via the United States Postal Service or by telephone — and if you are contacted by phone, it’s a good rule of thumb to tell the person who called you that you are concerned about security, and you need a reference number or department because you are going to call back on the IRS main phone line about whatever the matter may be. Also keep in mind that just because your caller ID tells you the incoming call is from the IRS does not mean it is the IRS since many phishers are consummate “spoofers.”

3. Texts From Your Credit Card Company With a Call to Action

This is similar to a text from your bank, but with more options for failure. You may have transaction alerts set that get delivered via text. You may have also consented to promotional notices. The bottom line with texts from your credit card company: whatever they are allegedly saying to you via text, they will say to you on the phone. Ignore any texts with a call to action, even if you want to take the action, and call your credit card company directly on the number designated on the back of your credit card. Especially ignore the text if it says that clicking on the link (or calling the number) is the only way to get a particular promotion.

4. Unsolicited Texts From Your Doctor, Lawyer, or Accountant

Businesses that collect a lot of personal information from clients, like medical practices, law firms or accounting firms can be prime targets for hackers. If you get a text from any of these folks, no matter how convincing, and no matter how much about you they seem to know (remember, these same professionals may not have the best defenses against hackers), ignore the text and call them.

5. Random Texts From Your Mortgage Company

I am guessing you’re getting the gist of this game, but any seemingly official notification about one’s mortgage somehow has the ability to completely unhinge people, especially if there is a problem. As data breaches have become the third certainty in life, it is quite likely your mortgage information is out there. If a scammer gets ahold of it, they might try to scare you into taking an action via text, like sending payments to a new address. Ignore them and call your mortgage holder.

[embedded content]

6. Scary Texts From Your Auto Lender

Nothing is quite as classic in the storybook of personal finance as the repo man coming to take your car. Because it’s a common nightmare scenario, we are liable to fall for it. Ignore any texts you get from your auto lender. Instead of replying, always call to find out what you already know: someone just tried to scam you.

7. Promotional Texts From Your Favorite Game

Don’t be embarrassed. We all have a game we like to play, and so do our kids. The problem here is that for real devotees, there is very little one won’t do to get an edge. Whether it’s buying points or weapons or secrets, or getting the latest upgrade the second it’s released, true gamers are a juicy target for scammers who send texts hawking special promotions, and they are less likely to be careful about whom they give their contact information to, since getting more game time is more important than anything. Same rule applies here: ignore any text that you get, and make sure your kids do as well. Go online and find the promotion from a reputable site.

If you think you’ve responded to a phishing text, you should monitor your credit for signs of identity theft. (You can do so by pulling your credit reports for free each year at AnnualCreditReport.com and viewing your credit scores for free each month on Credit.com.)

When it comes to staying safe, let restraint be your co-pilot. A little pause goes a long way and you don’t want to end up being the get for scammers.

More Money-Saving Reads:

Image: Todor Tsvetkov

Source: credit.com

How To Get Your Free Credit Report

AnnualCreditReport.com's website

What is a credit report?

Most people already know what a credit report is, but let’s go over the basics real quick just in case.

Credit reports are sometimes referred to as “credit files” or “credit history”. They are compiled by the three major credit reporting agencies, aka credit bureaus: Equifax, Experian, and TransUnion.

What kind of information is on my credit report?

Credit reports include information such as your name, social security number, current and previous addresses, current and former employers, credit card and loan payments, credit inquiries, collection accounts and public records such as bankruptcies, judgments, foreclosures, and tax liens.

Each account listed on your credit reports will show the date the account was established, your payment history, credit limit, and the type of account (mortgage, installment, revolving, collection), etc.

How do I get my free annual credit report?

By law, under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report every 12 months from each of the three major credit bureaus (Experian, Equifax, and TransUnion). In addition, several states offer an additional free credit report per year, including:

  • Colorado
  • Georgia
  • Maine
  • Maryland
  • Massachusetts
  • New Jersey
  • Vermont

Your free annual credit reports contain the same information that is found on a paid credit report: your open and closed financial accounts, and your payment history for each. You’ll generally find payment history for loans, credit cards, and revolving lines of credit. You may also see rental payments if you rent an apartment.

How do I order my free credit reports?

If you are getting your annual free credit reports, you can order them online through AnnualCreditReport.com.

This website will let you order all three of your free credit reports at once, with no obligations and no hidden fees. You may have to provide some personal information in order to confirm your identity before ordering, but you will not be charged if you use this site.

Please note that if you use these free credit reports to file a dispute with the credit reporting agencies, they have 45 days to investigate your dispute instead of the typical 30-day timeframe.

Other ways to get a free credit report:

The free annual credit report is available to everyone in the United States. However, in addition to that, you can also get a free credit report directly from a credit reporting agency if you’ve been denied credit.

You have 60 days from the time you are notified of the denial to request your credit report. Your request must also be with the credit reporting agency that was used to check your credit.

If you are ordering a free state report, or you are getting a free credit report due to any of the other factors we’ve talked about, you’ll need to contact the nationwide credit reporting agencies directly. Equifax and TransUnion make it easy to order these free credit reports online, but to get your free Experian credit report, you may need to call.

The contact information and links for each are here:

  • Free Experian Credit Report – call 1 866 200 6020 to confirm eligibility and get your credit report by mail or use this link.
  • Free Equifax Credit Report – order online through this link.
  • Free TransUnion Credit Report – order online through this link.

Remember: Keep track of when you order your credit reports and from which bureau(s) so that you know when you’ll be eligible to order your next credit report for free.

Can I get a free credit score too?

Unfortunately, the law does not mandate that credit reporting agencies give you a free credit score with your free credit reports. However, Lexington Law Firm offers a free FICO credit score as well as a free credit repair consultation. You can get that by visiting their site or calling 1 (800) 220-0084.

There are also several credit card companies that offer a free credit report.

You can often order your credit score alongside your free credit report for an additional fee as well from the credit reporting agencies. However, these scores are considered FAKOs as they are not real FICO credit scores (the credit scores that lenders use).

While the VantageScore (the credit score created by the credit reporting agencies to compete with Fair Isaac) is used by some businesses and institutions, the vast majority still rely on FICO scores to make credit decisions. So before you pay for any credit score, make sure that it’s one that will be useful to you.

If you want to monitor your credit reports and credit scores monthly, you might want to consider a credit monitoring service.

Can I get more than one free credit report per year?

If you’ve already ordered your legally-mandated free credit reports for the year and you don’t live in a state where you are entitled to an additional free report, there are still several situations which qualify you for an additional free credit report:

Negative actions as a result of your credit report such as:

  • Being denied for credit or a loan
  • Being denied for insurance
  • Being passed over for employment
  • Being denied a government license or benefit, or having an adverse action for either of these
  • Being denied or having an unfavorable action happening on another account (i.e. interest rates raised on your credit accounts, being denied a credit line increase, etc.)

Hardships that make it difficult to maintain positive credit such as:

  • You are currently unemployed and are planning to seek employment within the next 60 days
  • You are receiving or have recently received public welfare assistance
  • You believe that your credit file may be inaccurate due to fraud or identity theft

How can I dispute inaccurate information on my credit report?

If you find inaccurate or “questionable” information on your credit report, you can dispute the errors with the credit bureaus. We also offer free credit repair letters or if you need help getting rid of negative items on your credit reports, you can hire a credit repair service.

What is revolving debt and how does it differ from installment debt?

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Revolving debt is any debt without a set loan amount for a specific amount of time. Revolving accounts have an established credit limit, but you don’t have to follow a payment schedule or pay a fixed minimum amount each month. 

Not all debts are created equal, and it’s important to understand how different types can affect your credit score. Two of the major debt types—revolving debt and installment debt—work in different ways, and learning the nuances of each can help you manage your debt and maintain a higher credit score. 

How revolving debt works

The most common form of revolving debt is a credit card. With revolving credit, you have an established line of credit that you can draw on as often as you need to, so long as you don’t go over your limit. Your credit limit is determined based on your income, assets and credit history. 

Here are the basics of revolving debt:

  • Instead of paying a fixed minimum payment each month, your payments are a percentage of how much you borrowed that month. This means your monthly payment rates can change. 
  • You aren’t obligated to pay off the entire balance each month, but you’ll be charged interest on whatever balance you still owe. Revolving credit—such as credit cards—often have high interest rates. 
  • As you pay down your balance, you can continue to borrow more until you reach your credit limit. For example, if you reach your credit limit of $300, a payment of $100 will immediately allow you to borrow an additional $100. 
Revolving debt doesn't obligate you to pay a set balance each month. Like a revolving door, you can borrow repeatedly until you reach your credit limit.

Types of revolving debt accounts

Some types of revolving debt are backed by your assets, while others are not. The most well-known form of revolving debt is a credit card, which is unsecured. A home equity line of credit is another form of revolving debt, which is secured by your home.

These are the most common examples of revolving debt:

Credit cards

A credit card allows you to use any available funds at any time, as long as you continue to make minimum payments and don’t go over your credit limit. Carrying a balance on a credit card subjects you to accruing interest rates, whereas paying in full by the due date listed on your statement allows you to avoid interest charges. 

Home equity lines of credit (HELOCs) 

HELOC funds are commonly used by homeowners who need to cover a large expense, such as a home remodel. How much you can borrow is based on the equity of your home, which also serves as collateral. You aren’t required to pay a specific balance each month, but making payments replenishes your available credit (similar to a credit card). 

The main difference between HELOCs and credit cards is that you can only access a HELOC during a defined amount of time, known as the “draw period.” It typically lasts around five to 10 years, after which the debt must be paid back during a “repayment” period and funds can no longer be withdrawn. A HELOC usually has far lower interest rates than a credit card, since it’s backed by an asset (your home). 

Personal lines of credit 

Very similar to a credit card, these are funds you can borrow as needed and repay immediately or over time. Personal lines of credit allow you to carry a balance that accrues interest as you continue to borrow. Interest rates are usually variable, so it’s tough to predict how much you’ll end up paying for what you borrow. 

Lines of credit usually allow you to withdraw money in the form of a check or cash. If you need cash, a personal line of credit can be the more affordable option due to the high fees associated with credit card cash withdrawals. It’s also possible to receive a higher credit limit with a personal line. 

Business lines of credit

Business lines of credit operate almost identically to personal lines of credit, except they’re used for business expenses. This type of revolving loan lets you access your funds as needed to finance continuous short-term purchases, such as inventory, equipment repair or filling in a gap in cash flow. 

common types of installment debt

How revolving debt and installment debt impact your credit

Revolving debt and installment debt both impact your credit score. Having a mix of different types of credit accounts is one way to build your credit score. Successfully managing multiple kinds of credit is a good indicator to lenders that you’re a responsible borrower. 

While late credit payments of any kind will always negatively impact your credit score, revolving debt in the form of credit cards can look riskier to lenders. This is because unlike installment credit, there’s no personal asset—like a house or a car—attached to it that can be repossessed if you don’t pay on time. 

How revolving debt affects your credit score 

Credit bureaus consider credit card debt to be one of the most reliable indicators of your risk as a borrower. Since lines of credit are one of the most common forms of revolving debt, it’s important to understand the ramifications it can have on your credit score.

Pay attention to these factors when managing revolving debt:

  • High credit utilization ratio: The higher risk attached to revolving credit is mainly due to its impact on your credit utilization ratio. Credit utilization is the amount you owe versus the amount you have available to borrow. Your credit score can drop if you’ve reached your credit limit on all your credit cards—the FICO® scoring method ranks credit utilization as the number two factor used to measure your credit score (right after your payment history). 
  • Number of open revolving accounts: There is no specific number of credit cards that is considered the right number, but lenders do take it into consideration along with your credit history. 
  • Age of open revolving accounts: The older your revolving credit accounts are, the greater the benefit to your credit score. A longer history of responsible credit management indicates less risk to lenders. 
The higher risk attached to revolving credit is mainly because of how it impacts your credit utilization score

How installment debt affects your credit score 

Installment debt is typically considered less risky than revolving debt since it’s secured by an asset that you wouldn’t want to lose—whether that’s a new home, your car or your college tuition. It’s also considered more stable, so it has lower interest rates and less of an impact on your credit score.

Here are a few ways installment debt impacts your credit: 

  • Credit mix: Since having a mix of different credit types can boost your credit score, adding installment debt into that mix will help you diversify if, for example, you’ve only ever built your credit by using credit cards. 
  • Payment history: If you faithfully pay your installment debt each month for the agreed upon loan term, your credit score can go up substantially. 
  • Credit utilization ratio: You can use installment debt like personal loans to pay off high balances on your credit cards. This can significantly benefit your credit score because by using an installment loan to immediately pay off credit card debt, your credit utilization ratio is instantly lowered. 
  • Hard inquiries: Shopping around for installment loans like mortgages and auto loans triggers hard inquiries that lower your credit score. 

Should I be carrying revolving debt?

While revolving credit can certainly improve your credit score, it requires careful attention in how you use it. If you have a habit of missing payments or using too much available credit, it might harm your score more than it would help it. It’s also possible for lenders to make a mistake and inaccurately report a missed payment on a revolving debt account. 

Here are some helpful questions to ask yourself if you’re thinking about building your credit with revolving debt:

  • Do I need to borrow a large sum of money quickly? While you can use revolving debt to finance a large expense, a key component of using revolving credit responsibly is keeping your credit utilization low. Your credit score can dip if you borrow too much too often, or if you’re close to reaching your maximum borrowing limit. It might make more sense to consider a personal loan with a fixed payment timeline instead. 
  • Will I make my payments on time? Payment history plays a crucial part in how your credit score is determined. If you can’t consistently pay for revolving debt on time every month, it might be best to avoid it for the sake of preserving your credit score. 
  • How is my current credit history? Even if you end up getting approved for a line of revolving credit, lenders could hit you with high interest rates if you don’t have a favorable credit history. 

The credit repair consultants at Lexington Law can help you remove questionable negative items that might be harming your credit score. Since revolving debt can have a significant impact on your score, make sure you address errors on your credit report as soon as possible. 

Source: lexingtonlaw.com

What is revolving debt and how does it differ from installment debt? – Lexington Law

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Revolving debt is any debt without a set loan amount for a specific amount of time. Revolving accounts have an established credit limit, but you don’t have to follow a payment schedule or pay a fixed minimum amount each month. 

Not all debts are created equal, and it’s important to understand how different types can affect your credit score. Two of the major debt types—revolving debt and installment debt—work in different ways, and learning the nuances of each can help you manage your debt and maintain a higher credit score. 

How revolving debt works

The most common form of revolving debt is a credit card. With revolving credit, you have an established line of credit that you can draw on as often as you need to, so long as you don’t go over your limit. Your credit limit is determined based on your income, assets and credit history. 

Here are the basics of revolving debt:

  • Instead of paying a fixed minimum payment each month, your payments are a percentage of how much you borrowed that month. This means your monthly payment rates can change. 
  • You aren’t obligated to pay off the entire balance each month, but you’ll be charged interest on whatever balance you still owe. Revolving credit—such as credit cards—often have high interest rates. 
  • As you pay down your balance, you can continue to borrow more until you reach your credit limit. For example, if you reach your credit limit of $300, a payment of $100 will immediately allow you to borrow an additional $100. 
Revolving debt doesn't obligate you to pay a set balance each month. Like a revolving door, you can borrow repeatedly until you reach your credit limit.

Types of revolving debt accounts

Some types of revolving debt are backed by your assets, while others are not. The most well-known form of revolving debt is a credit card, which is unsecured. A home equity line of credit is another form of revolving debt, which is secured by your home.

These are the most common examples of revolving debt:

Credit cards

A credit card allows you to use any available funds at any time, as long as you continue to make minimum payments and don’t go over your credit limit. Carrying a balance on a credit card subjects you to accruing interest rates, whereas paying in full by the due date listed on your statement allows you to avoid interest charges. 

Home equity lines of credit (HELOCs) 

HELOC funds are commonly used by homeowners who need to cover a large expense, such as a home remodel. How much you can borrow is based on the equity of your home, which also serves as collateral. You aren’t required to pay a specific balance each month, but making payments replenishes your available credit (similar to a credit card). 

The main difference between HELOCs and credit cards is that you can only access a HELOC during a defined amount of time, known as the “draw period.” It typically lasts around five to 10 years, after which the debt must be paid back during a “repayment” period and funds can no longer be withdrawn. A HELOC usually has far lower interest rates than a credit card, since it’s backed by an asset (your home). 

Personal lines of credit 

Very similar to a credit card, these are funds you can borrow as needed and repay immediately or over time. Personal lines of credit allow you to carry a balance that accrues interest as you continue to borrow. Interest rates are usually variable, so it’s tough to predict how much you’ll end up paying for what you borrow. 

Lines of credit usually allow you to withdraw money in the form of a check or cash. If you need cash, a personal line of credit can be the more affordable option due to the high fees associated with credit card cash withdrawals. It’s also possible to receive a higher credit limit with a personal line. 

Business lines of credit

Business lines of credit operate almost identically to personal lines of credit, except they’re used for business expenses. This type of revolving loan lets you access your funds as needed to finance continuous short-term purchases, such as inventory, equipment repair or filling in a gap in cash flow. 

common types of installment debt

How revolving debt and installment debt impact your credit

Revolving debt and installment debt both impact your credit score. Having a mix of different types of credit accounts is one way to build your credit score. Successfully managing multiple kinds of credit is a good indicator to lenders that you’re a responsible borrower. 

While late credit payments of any kind will always negatively impact your credit score, revolving debt in the form of credit cards can look riskier to lenders. This is because unlike installment credit, there’s no personal asset—like a house or a car—attached to it that can be repossessed if you don’t pay on time. 

How revolving debt affects your credit score 

Credit bureaus consider credit card debt to be one of the most reliable indicators of your risk as a borrower. Since lines of credit are one of the most common forms of revolving debt, it’s important to understand the ramifications it can have on your credit score.

Pay attention to these factors when managing revolving debt:

  • High credit utilization ratio: The higher risk attached to revolving credit is mainly due to its impact on your credit utilization ratio. Credit utilization is the amount you owe versus the amount you have available to borrow. Your credit score can drop if you’ve reached your credit limit on all your credit cards—the FICO® scoring method ranks credit utilization as the number two factor used to measure your credit score (right after your payment history). 
  • Number of open revolving accounts: There is no specific number of credit cards that is considered the right number, but lenders do take it into consideration along with your credit history. 
  • Age of open revolving accounts: The older your revolving credit accounts are, the greater the benefit to your credit score. A longer history of responsible credit management indicates less risk to lenders. 
The higher risk attached to revolving credit is mainly because of how it impacts your credit utilization score

How installment debt affects your credit score 

Installment debt is typically considered less risky than revolving debt since it’s secured by an asset that you wouldn’t want to lose—whether that’s a new home, your car or your college tuition. It’s also considered more stable, so it has lower interest rates and less of an impact on your credit score.

Here are a few ways installment debt impacts your credit: 

  • Credit mix: Since having a mix of different credit types can boost your credit score, adding installment debt into that mix will help you diversify if, for example, you’ve only ever built your credit by using credit cards. 
  • Payment history: If you faithfully pay your installment debt each month for the agreed upon loan term, your credit score can go up substantially. 
  • Credit utilization ratio: You can use installment debt like personal loans to pay off high balances on your credit cards. This can significantly benefit your credit score because by using an installment loan to immediately pay off credit card debt, your credit utilization ratio is instantly lowered. 
  • Hard inquiries: Shopping around for installment loans like mortgages and auto loans triggers hard inquiries that lower your credit score. 

Should I be carrying revolving debt?

While revolving credit can certainly improve your credit score, it requires careful attention in how you use it. If you have a habit of missing payments or using too much available credit, it might harm your score more than it would help it. It’s also possible for lenders to make a mistake and inaccurately report a missed payment on a revolving debt account. 

Here are some helpful questions to ask yourself if you’re thinking about building your credit with revolving debt:

  • Do I need to borrow a large sum of money quickly? While you can use revolving debt to finance a large expense, a key component of using revolving credit responsibly is keeping your credit utilization low. Your credit score can dip if you borrow too much too often, or if you’re close to reaching your maximum borrowing limit. It might make more sense to consider a personal loan with a fixed payment timeline instead. 
  • Will I make my payments on time? Payment history plays a crucial part in how your credit score is determined. If you can’t consistently pay for revolving debt on time every month, it might be best to avoid it for the sake of preserving your credit score. 
  • How is my current credit history? Even if you end up getting approved for a line of revolving credit, lenders could hit you with high interest rates if you don’t have a favorable credit history. 

The credit repair consultants at Lexington Law can help you remove questionable negative items that might be harming your credit score. Since revolving debt can have a significant impact on your score, make sure you address errors on your credit report as soon as possible. 

Source: lexingtonlaw.com

How to remove inquiries from a credit report

young family reviewing credit report together

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Credit scores naturally fluctuate from month to month depending on your usage, payments and transactions. For the most part, your credit score is directly tied to your actions. Occasionally there will be errors on your report that were out of your control, such as with hard inquiries and lines of credit. If you notice a sudden decline in your credit score, even if only by a few points, you may be suffering from the effect of an unwarranted credit inquiry.

Credit inquiries occur when a lender requests your full credit history from one of the credit reporting agencies. These inquiries into your credit history can affect your credit score negatively and will typically stay on your report for up to two years.

Inquiries stay on your record for so long because they reflect how many times you have applied for credit. Lenders use how many times you have applied for credit to judge whether you should be approved for an extension of credit.

In certain circumstances, an unapproved inquiry can be removed from your credit report by sending a credit inquiry removal letter to the credit reporting agency or by disputing it online.

The difference between hard and soft inquiries

difference between hard and soft inquiries

Although there is no difference between the data provided in a hard and soft inquiry, they do not affect your credit the same way. A common misconception is that checking your own credit history will negatively affect your score, but this is not true. When you check your own credit history, it is considered a soft inquiry and will not show on your credit report or affect your score.

Hard inquiries, by contrast, occur when a lender pulls your credit report. A lender may pull your credit history while going through an application for a new loan, a new credit card or any line of credit. Additionally, banks and property managers may pull your credit while setting up accounts or determining approval for an apartment.

Occasionally, a hard credit report can sometimes be pulled without your knowledge, approval or without your full understanding. Hard inquiries that were pulled without your request can be removed from your credit report under the Fair Credit Reporting Act.

How do credit inquiries affect your credit score?

Hard inquiries count as minor negative entries and account for 10 percent of your credit score. Although the exact effect on your credit score will vary depending on your credit history and current standing, you can typically expect to see a one to five point drop in your overall credit score.

Although the exact hit to your credit score will vary, you can expect to see drops in your score when these inquiries start to add up. Occasionally lenders will either pull your credit by mistake, pull your credit multiple times or pull your credit without your knowledge whatsoever.

Can you remove inquiries from your credit report?

reasons to dispute a hard inquiry on your credit report

Hard inquiries can be removed from your credit history if they occurred without your approval. If you did not have knowledge of the hard inquiries pulled from your credit profile, you have the right to ask for the inquiry to be removed. 

You can remove a hard inquiry if:

  • The inquiry occurred without your knowledge.
  • The inquiry occurred without your approval.
  • The number of inquiries exceeded what you expected.

How to send a credit inquiry removal letter

To send a credit inquiry removal letter, you should contact any credit reporting agency that is reporting the inquiry. Credit inquiry removal letters can be sent to both the credit reporting agencies and the lender who issued the credit inquiry.

1. Send the credit inquiry removal letter via certified mail

Certified mail is a way in which the sending and receiving of a letter or package is recorded. This form of mail will give you proof that the credit issuer or lender received the proper first notification to remove the hard inquiry.

2. Notify the lender first

Notifying the lender before you send a removal notice is necessary if you plan to take the dispute further to court. This is the proper first step for removing hard inquiries.

3. Include a copy of your credit report

Including a copy of your credit report with the highlighted unapproved hard inquiries may help with referencing your case. Although the credit reporting agencies will have easy access to your report, a hard copy will help investigators when processing your request.

4. Send to the appropriate credit bureau

It is important to send your letter to the credit bureau with a record of the hard inquiry you want removed. Below are the addresses for each bureau:

Equifax
P.O. Box 740256
Atlanta, GA 30374-0256
Equifax Dispute Information Center

Experian
P.O. Box 4500
Allen, TX 75013
Experian Dispute Information Center

TransUnion LLC
Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016
TransUnion Disputes Information Center

Credit inquiry removal letter template

Date
Your name
Your street number, street name
City, state, zip code
Your phone number
Social Security Number
Name of credit bureau

Re: Reporting Unauthorized Credit Inquiry

To whom this may concern,

I am writing to request the removal of unauthorized credit inquiry/inquiries on my (name of the credit bureau—Equifax, Experian and/or TransUnion) credit report. My latest credit report shows (number of hard inquiries you are disputing) credit inquiry/inquiries that I did not authorize.

I am writing to dispute the following inquiries and ask for their removal from my credit report.

Item No. Creditor Account

Please have these/this unapproved inquiries/inquiry removed from my credit report within 30 days, as it is harming my ability to obtain new credit. I would appreciate a copy of my credit report once this issue is resolved.

Thank you for your assistance.

Sincerely,

(Your Name)

How to stay on top of negative credit report entries

Removing questionable negative items from your credit profile can be a long and time-consuming process that can seem daunting. Although a few points’ difference may not seem like a large priority, it is important to stay on top of these entries before they add up and get out of control.

If keeping your credit score high or improving your credit score is a top priority, Lexington Law Firm may be a good option for you. Lexington’s credit repair services can help you with addressing questionable negative items on your credit report as you work on improving your credit.

.

You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

Source: lexingtonlaw.com

How to Find All Your Debts: 4 Tips

Paying off your debts is a critical part of a healthy credit profile. Here’s what you need to know about how to find your debts.

It’s uncomfortable to admit, but it’s entirely possible that you have debts you didn’t even know about. Whether mail went missing or communication about medical debt got mixed up, it’s possible an account with your name on it is languishing somewhere in collections. Get some tips to find out all your debts so you can make educated decisions about how to clean up your credit history.


How to Find All Your Debts

Even if you keep meticulous records, it’s possible for some debts to have fallen through the cracks. And perhaps you know you owe a debt, but it’s been passed around between collection agencies so many times you’ve forgotten who currently owns the debt. Here’s how to find out which collection agency you owe or uncover debts you don’t know about.

1. Check Your Credit Reports

Our first tip for finding your hidden debts is to turn to your credit report. While not every debt is reported, many are. And if you’re in collections or have owed the debt for a while, chances are someone has placed a negative item on at least one of your credit reports.

The trick here is getting copies of all three of your credit reports from the major bureaus. Not all creditors report to all three, so TransUnion, for example, could have a detail that Equifax and Experian do not—and vice versa.

You can get one free copy of your credit report from each agency every year at AnnualCreditReport.com. (They’re available weekly for a limited time due to COVID-19.) But for those who really want to get a handle on who they owe and what’s on their report, a service such as ExtraCredit is a good choice.

ExtraCredit lets you see your credit reports from all three bureaus—anytime. The reports are pulled monthly. It also gives you regular updates on 28 of your FICO® scores, so you have a clear picture of what your credit history looks like to lenders. Plus, you can get rewards and offers for valuable credit services, including credit monitoring and credit cards.

2. Go Through Old and New Mail

Who among us hasn’t picked up the mail, only to put it in a stack by the front door and leave it there to languish for months? Life gets busy, and it can be tempting to slide unopened envelopes into a bin or drawer and forget about them. But mail can back up before you realize it, and you might miss a notice of a bill or debt.

Take some time to gather all the mail you have. Open it and sort it, carefully looking to see whether you need to take action on something or if you might owe someone money. Keep a notebook or computer nearby so you can make a list.

3. Listen to All Those Old Voicemails

Voicemail can back up just like snail mail. Many people never actually check their voicemail, assuming those who need them will call them back or text them.

Legitimate creditors and collections agencies should leave a voicemail, including contact information. They’ll also usually show up on your caller ID. 

Clear out your old voicemail, listening to each one and making notes about it. Compare that information with the notes you got from your mail and what’s on your credit report to compile a master list of debt you might owe. Keep an ear open for potential debt collection scammers and do your research before following up with anyone.

4. Contact Creditors You Think You Owe

In some cases, you know you owe someone, but it’s been a while. You can contact the last creditor you remember and find out if they still own the debt or if they wrote it off and sold it to a collection agency. They should be able to confirm your debt and give you the name and contact information for the agency that they sold the debt to, if applicable.

What to Do After You Find Your Debt

Once you go through a debt finder process and figure out who you owe money to, you have some decisions to make. Here are three tips for dealing with debt once you find it.

1. Decide Whether You Can—or Will—Pay

You might rush to pay off old debts thinking it will boost your credit, but that may not happen. Yes, the debt should then be marked as paid on your credit report. But the damage from the late payments and collection accounts could still linger.

So, you need to consider seriously how you can and will deal with old debt. If you simply can’t afford to pay, talk to a legal professional about your options, rights, and what consequences could come from paying or not paying old debt. For example, if you start making payments, the statute of limitations could restart and leave you at risk of lawsuits and legal collection activity much longer.

2. Consider Credit Repair Services

One result of digging through credit reports and chasing down old debt can be finding errors or collections you don’t actually owe. If you find inaccurate information on your credit reports, you might consider working with a credit repair service.

Credit repair services work on your behalf to dispute inaccurate information with the credit bureaus. You can actually do credit repair yourself, but if you don’t have time or just know you aren’t going to follow up, you might get more value by paying professionals to handle it for you.

3. Keep Up with Credit Reports and Debts in the Future

Finally, once you do the work to find your debt and clean it up, keep up with your credit reports in the future. While every single debt may not appear on your credit report—or appear right away—staying on top of your credit report ensures you’re aware of most of them. ExtraCredit gives you the access to your accounts that you need to keep track of your debts and your credit score.

Bonus Tip: Once you’ve found all your debts, use a debt management app like Tally to keep track of them moving forward so you’ll never have to wonder about them again.

TL;DR: ExtraCredit Could Help You Identify and Manage Your Debts

If you’ve lost track of your debts and what you owe to who, it can take some work and time to track everything down. But once you do, stay ahead of these things with help from ExtraCredit.


Source: credit.com

Do’s and Don’ts of Paying Off Debt Early – Lexington Law

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The word “debt” usually has a negative connotation. Whether it’s student loans, lines of credit, consumer debt or a mortgage, most people strive to pay it off as early as possible. However, there are smart decisions to be made when paying off debt. For example, many people wonder, “Does paying off a loan early hurt credit?” This guide takes you through all the do’s and don’ts of paying off debt early so you can make the right decisions for your financial health.

What are the benefits of paying off debt early?

There are several appealing reasons why you might want to pay off your debt early.

You can save money

When it comes to debt, what can really get you is the interest rates. Luckily, if you pay off a debt earlier, you’re reducing the total interest you pay.

Let’s say you have a credit card balance of $5,000 at an average credit card interest rate of 16 percent. If you’re making a monthly payment of $200, it will take you 31 months to pay off the debt, and you’ll have paid a total of $1,122 in interest.

Now, if you increase your payment, it can make a significant overall difference. By doubling your monthly payment to $400, you will more than double the impact on interest and total loan time. Your time to pay off the debt will decrease to 14 months, and your total interest paid will be $506.

You can protect your credit

If your debt is something like a loan, then paying it off early can protect your credit. You will no longer be in danger of damaging your credit with a late or missing payment. Either of these instances can typically lower your credit score by 90 – 110 points for several months.

Additionally, paying off your debt can help your debt-to-income ratio. Your credit score is made up of five factors, and the debt-to-income ratio accounts for approximately 30 percent of your credit score.

You can decrease your debt-related stress

According to a 2019 survey produced by BlackRock, Americans identify money as their number one source of stress. Debt can make people feel insecure about their future and cause endless worry. This financial stress can start to impact job performance, quality of life and personal relationships. When you pay off your debt early, you’ll have more peace of mind about your financial state.

Potential negative consequences

You might be surprised to learn that there are some potentially negative consequences to paying off debt early as well.

Prepayment penalty fees

It’s essential to read the fine print of your debt before you start paying it off early. Some creditors choose to protect themselves from individuals trying to pay off debt early by including penalty fees. For example, many mortgages put a cap on how much extra you can contribute to your mortgage loan every year. Usually, it’s up to 20 percent of your principal balance annually.

Find out if your loan has a prepayment penalty fee, and calculate whether this fee is greater than the interest left on your loan. If your interest is lower than the penalty fee, it’s really not worth paying off the loan early.

Changes to credit factors

So, does paying off a loan early hurt your credit? The answer is, sometimes it can. For example, installment loans are different from revolving debt. Installment loans, such as mortgages, have a fixed interest rate for a period of time and fixed payments. Revolving debt, such as credit card debt, usually has high interest rates and options for minimum payments.

Keeping installment loans open can help your credit by improving your credit diversity. Additionally, installment loans show the credit scoring companies that you can reliably pay a loan. On the other hand, credit card debt, unless you’re paying it off entirely every month, can do more harm than good to your credit score.

However, this doesn’t necessarily mean that paying off a loan will hurt your credit score—you just shouldn’t expect it to automatically help, either. Your credit score may not change at all, or it may shift in either direction by just a few points.

Paying off debt: Do’s and Don’ts

Do address monthly expenses first

Your debt shouldn’t take priority over your monthly fixed expenses. Payments such as your rent, utilities and food are necessities. You need to pay these to continue living safely and comfortably.

Don’t neglect your savings

It’s crucial to have savings, especially emergency savings. Make sure you have an emergency fund at a level you’re comfortable with. That way, if something urgent comes up, like the loss of a job or a medical bill, you will be able to survive without falling into more debt. People without emergency funds often find themselves turning to desperate solutions (such as payday loans), which are usually more harmful in the long run.

Do consider refinancing

If the balance of your installment debt is incredibly high, it might be time to consider refinancing. This route is usually a great option if you’ve been making regular payments and have seen an improvement in your credit score. A better credit score may mean you qualify for better rates with refinancing, which can save you thousands of dollars in interest.

Talk to a financial planner first to better understand if refinancing is the best option for you.

Don’t discount investment opportunities

It can be tempting to prioritize debt above all else, including retirement. Don’t discount investment opportunities, though. Just as you should have an emergency fund, it can hurt you long term  if you don’t begin saving for retirement now.

Additionally, consider the interest rates on your debt. The average return on investments in the stock market is, historically, around 10 percent. If the interest on your debt is lower than 10 percent, investing might be a better option than paying debt off early.

Do consult a professional

The right balance of debt can actually help your overall credit. However, it’s all quite complicated, and there are a lot of different factors to take in. It’s vital to consult a finance professional before making any significant decisions.

Paying off your debt sooner than necessary isn’t quite the straightforward process it might seem to be. There are many factors to consider, and it’s important to be thoughtful before making any decisions. You can also reach out to our team at Lexington Law today to learn more about your credit.


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

Do’s and Don’ts of Paying Off Debt Early

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The word “debt” usually has a negative connotation. Whether it’s student loans, lines of credit, consumer debt or a mortgage, most people strive to pay it off as early as possible. However, there are smart decisions to be made when paying off debt. For example, many people wonder, “Does paying off a loan early hurt credit?” This guide takes you through all the do’s and don’ts of paying off debt early so you can make the right decisions for your financial health.

What are the benefits of paying off debt early?

There are several appealing reasons why you might want to pay off your debt early.

You can save money

When it comes to debt, what can really get you is the interest rates. Luckily, if you pay off a debt earlier, you’re reducing the total interest you pay.

Let’s say you have a credit card balance of $5,000 at an average credit card interest rate of 16 percent. If you’re making a monthly payment of $200, it will take you 31 months to pay off the debt, and you’ll have paid a total of $1,122 in interest.

Now, if you increase your payment, it can make a significant overall difference. By doubling your monthly payment to $400, you will more than double the impact on interest and total loan time. Your time to pay off the debt will decrease to 14 months, and your total interest paid will be $506.

You can protect your credit

If your debt is something like a loan, then paying it off early can protect your credit. You will no longer be in danger of damaging your credit with a late or missing payment. Either of these instances can typically lower your credit score by 90 – 110 points for several months.

Additionally, paying off your debt can help your debt-to-income ratio. Your credit score is made up of five factors, and the debt-to-income ratio accounts for approximately 30 percent of your credit score.

You can decrease your debt-related stress

According to a 2019 survey produced by BlackRock, Americans identify money as their number one source of stress. Debt can make people feel insecure about their future and cause endless worry. This financial stress can start to impact job performance, quality of life and personal relationships. When you pay off your debt early, you’ll have more peace of mind about your financial state.

Potential negative consequences

You might be surprised to learn that there are some potentially negative consequences to paying off debt early as well.

Prepayment penalty fees

It’s essential to read the fine print of your debt before you start paying it off early. Some creditors choose to protect themselves from individuals trying to pay off debt early by including penalty fees. For example, many mortgages put a cap on how much extra you can contribute to your mortgage loan every year. Usually, it’s up to 20 percent of your principal balance annually.

Find out if your loan has a prepayment penalty fee, and calculate whether this fee is greater than the interest left on your loan. If your interest is lower than the penalty fee, it’s really not worth paying off the loan early.

Changes to credit factors

So, does paying off a loan early hurt your credit? The answer is, sometimes it can. For example, installment loans are different from revolving debt. Installment loans, such as mortgages, have a fixed interest rate for a period of time and fixed payments. Revolving debt, such as credit card debt, usually has high interest rates and options for minimum payments.

Keeping installment loans open can help your credit by improving your credit diversity. Additionally, installment loans show the credit scoring companies that you can reliably pay a loan. On the other hand, credit card debt, unless you’re paying it off entirely every month, can do more harm than good to your credit score.

However, this doesn’t necessarily mean that paying off a loan will hurt your credit score—you just shouldn’t expect it to automatically help, either. Your credit score may not change at all, or it may shift in either direction by just a few points.

Paying off debt: Do’s and Don’ts

Do address monthly expenses first

Your debt shouldn’t take priority over your monthly fixed expenses. Payments such as your rent, utilities and food are necessities. You need to pay these to continue living safely and comfortably.

Don’t neglect your savings

It’s crucial to have savings, especially emergency savings. Make sure you have an emergency fund at a level you’re comfortable with. That way, if something urgent comes up, like the loss of a job or a medical bill, you will be able to survive without falling into more debt. People without emergency funds often find themselves turning to desperate solutions (such as payday loans), which are usually more harmful in the long run.

Do consider refinancing

If the balance of your installment debt is incredibly high, it might be time to consider refinancing. This route is usually a great option if you’ve been making regular payments and have seen an improvement in your credit score. A better credit score may mean you qualify for better rates with refinancing, which can save you thousands of dollars in interest.

Talk to a financial planner first to better understand if refinancing is the best option for you.

Don’t discount investment opportunities

It can be tempting to prioritize debt above all else, including retirement. Don’t discount investment opportunities, though. Just as you should have an emergency fund, it can hurt you long term  if you don’t begin saving for retirement now.

Additionally, consider the interest rates on your debt. The average return on investments in the stock market is, historically, around 10 percent. If the interest on your debt is lower than 10 percent, investing might be a better option than paying debt off early.

Do consult a professional

The right balance of debt can actually help your overall credit. However, it’s all quite complicated, and there are a lot of different factors to take in. It’s vital to consult a finance professional before making any significant decisions.

Paying off your debt sooner than necessary isn’t quite the straightforward process it might seem to be. There are many factors to consider, and it’s important to be thoughtful before making any decisions. You can also reach out to our team at Lexington Law today to learn more about your credit.


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

New debt collector rules you should know about – Lexington Law

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

In October 2020, the Consumer Financial Protection Bureau (CFPB) announced  a new rule for the Fair Debt Collection Practices Act (FDCPA), which is in place to stop debt collectors from engaging in unfair practices. Consumers must understand the new debt collector rules under the FDCPA to know their rights and protect themselves. 

Your rights under the FDCPA

Approximately 28 percent of Americans with a credit report have had debt in collections, according to a 2019 report by the CFPB. Having a debt collector contact you repeatedly can feel overwhelming and intimidating. The government protects consumers by placing explicit restrictions on debt collectors under the FDCPA. By having a clear understanding of your rights, you’ll know when a debt collector is violating the law. 

The FDCPA outlines the methods a debt collector can and cannot use to contact you. Some of the previously existing rules included:

  • A debt collector cannot contact you at inconvenient times and places, including at work if they are told you’re not allowed to receive calls there. If a debt collector does contact you at work, you have the right to tell them to stop and they cannot continue calling your workplace. Additionally, debt collectors cannot call before 8 a.m. or past 9 p.m. unless you specifically say these times are okay. 
  • Debt collectors generally cannot tell others about your debt. They can only disclose your debt to yourself, your spouse, and your attorney. 
  • However, a debt collector can contact other people in an attempt to find your address, phone number or place of work. They can usually only contact these people one time. 
  • Debt collectors aren’t allowed to threaten you, use obscene language or harass you with phone calls. 
  • Debt collectors can’t tell you lies about your debt or the consequences of not paying your debt.
  • Debt collectors are not allowed to collect more than the original debt owed (like interest, fees, or other charges) unless the original contract or state law allows it.
  • If you don’t believe the debt is correct, you’re allowed to ask for a debt verification letter. After making this request, the debt collector cannot continue to pursue you until they have shown you written verification of the debt. 

It’s important to note that these rules only apply to third-party debt collectors—when a debt has been sold to another party—not the original creditor. If you have a debt outstanding with your creditor, it’s best to start discussions with them before the debt is sent off to collections. 

Updates to the FDCPA

The FDCPA has had many amendments since its original enactment in 1978. The rule was released in October 2020 and will likely go into effect in fall of 2021. 

New methods of communication

Since the FDCPA was originally created before electronic communications existed, no parameters had been set for contacting consumers via texting and social media apps. The October 2020 ruling clarified this gray area, officially allowing debt collectors to reach consumers via electronic messaging. 

Debt collectors can officially send:

  • Text messages
  • Emails
  • Direct messages on social media sites

The CFPB doesn’t limit how frequently debt collectors can send messages but “excessive” communication is prohibited. Excessive communication would violate the FDCPA, which prohibits harassment, oppression and abuse by debt collectors. 

Debt collectors that use electronic messaging to contact consumers must provide a straightforward and easy way for consumers to opt out. Consumers should most definitely use this opt-out feature if they wish to. 

Additionally, public comments on posts aren’t allowed, and debt collectors have to disclose that they’re debt collectors before sending friend requests. 

A representative for Facebook stated, “We are in the process of reviewing this new rule and will work with the Consumer Financial Protection Bureau over the coming months to understand its effect on people who use our services.” 

Lack of verification

Another rule update is that debt collectors no longer have to confirm they have accurate details of a debt before attempting to collect. Previously, collectors had to verify the amount owed and the identity of the consumer before pursuing collection. This decision has met a lot of pushback as debt collectors have a history of pursuing debts that are already paid off, and this new rule will do nothing to stop that behavior. 

New limits on collectors

The new provisions also set some limitations on debt collectors. Now, when the debt collector initially makes contact with the consumer, they must:

  • Provide relevant information about the debt
  • State the consumer’s rights about the collection process
  • Provide clear instructions on how the consumer can respond to the collector 

The consumer has the right to receive all this information before their debt is reported to a credit reporting agency. 

Additionally, debt collectors cannot threaten to sue for debt that is past the statute of limitations. They can, however, still attempt to collect an old debt. 

If a debt collector is verbally asked to stop calling, this now holds the same power as a written request and they must stop calling. However, this request doesn’t mean the debt collector has to stop all forms of communication. And a request to stop calls does not mean the debt collector has to (or will) stop attempting to collect on the debts. 

Defining “harassment”

Collectors can’t call on an account more than seven times in a week, and once they have a conversation with someone on an account, they can’t call them for seven days after that. But this doesn’t help if you have multiple accounts with a collector. 

This new rule also doesn’t apply to other communication methods, and voicemails don’t count against the seven-attempts limit.  

Again, you need to be proactive about requesting that a collector stop contacting you. You should make this request in writing and keep a copy so you have a record. (And remember that the new amendments state that debt collectors must obey a verbal request to stop a particular form of contact). 

Know when your rights are being violated

These new rules were originally proposed in 2019, were approved in October 2020 and will likely go into effect in November 2021. The new rules have received a mixed response, as some rules seem to protect consumers while other rules give debt collectors more leeway. 

A debt collector has the right to collect an outstanding debt, but there are limitations in place to protect consumers. Understanding what these limitations are can help you protect yourself. Unfortunately, just because these rules are in place doesn’t mean every debt collector abides by them. The 2019 CFPB report on consumer complaints about debt collection revealed that 81,500 complaints were filed in 2018. 

If your rights are being violated under the FDCPA, you can potentially sue the debt collector for damages (lost wages, medical bills, etc.). And if you can’t prove damages, you may still be awarded up to $1,000 in statutory damages plus coverage of your legal fees. 

Ultimately, the vital step is for you to take action and stop further illegal harassment against you. 


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com