The Truth of Credit

Can My Medical Information be Reported?

Rick Vaughn — Tue, 09 Feb 2010 03:51:26 +0000

The Health Insurance Portability and Accountabilities Act or (HIPAA) was created to protect the consumer’s personal medical information. HIPPA says that a healthcare provider or plan may disclose only the following bits of information on you to the credit bureaus.

Name and address.
Date of birth.
Social Security Numbers.
Payment History.
Account Number.
Name and address of person claiming the debt.

Recent changes to Fair and Accurate Credit Transaction Act (FACTA) has changed the way delinquent medical bills appear in credit reports. Obviously, if the creditor was shown as “Riverside Cancer Center” logic would tell you that the consumer has cancer. That clearly is a violation of HIPAA and any healthcare providers that their names would disclose medical conditions are and should always be masked.

This is important mainly because lenders could use that information to deny you credit or a prospective employer could use this information against you. For more information on your rights under FACTA here is the link. http://www.privacyrights.org/fs/fs6a-facta.htm#7

Related posts brought to you by Yet Another Related Posts Plugin.

Where to Get Credit Reports

Rick Vaughn — Sun, 07 Feb 2010 21:55:25 +0000

“F.R.E.E. that spells free” we have all heard the commercial (If not here is the link). Truth is most credit reporting sites maybe free but is not free of responsibility on your part. Many “FREE” sites are loaded with trial periods and credit monitoring service. Who wants all that stuff? All you want freaking credit score.

What you need to understand is even if you purchase a credit report from all 3 credit bureaus (Transunion, Experian and Equifax) that does not necessarily mean that will be the same report a lender will pull on you. Here are 2 great sites for someone curious and wants to get a general idea where they’re at on the credit score ladder:

Credit Karma – This site is awesome! Best of all it is truly free and can be updated often. Definitely, a great place to start and get a general idea. The downside is you will have to deal with numerous credit card ads and offers but with some patience it’s definitely worth it. Also the score you receive may not be 100% correct.
Annualcreditreport.com - This site is sponsored by all 3 credit bureaus and probably your best bet to see exactly what a lender may pull. You can pull a credit report from 1 of the 3 credit reporting agencies for free. However, this can only be done once every 12 months. After that you will begin to pay if you decide to pull more often.

Any marketer will tell you the greatest word in marketing is “FREE”. Your best indicator should be if they ask you for your credit card. In that case your better make sure you read the fine print or you may end up with a nice surprise on your next bank statement. Not all credit reporting sites are created equal. However, these 2 sites are a great place to start.

Related posts brought to you by Yet Another Related Posts Plugin.

Why You Should Fund A IRA?

Rick Vaughn — Fri, 08 Jan 2010 02:09:56 +0000

I know I know, it’s hard to even think about what you are going to do this weekend much less think about retirement. However, the future you will thank the present you if you would start think a few years down the road. Individual Retirement Arrangements (IRAs) were created to with some great tax advantages to provide a person some great incentives to save. There are 4 types of IRAs Traditional, Roth, SEP, SIMPLE. All have their own unique benefits but today I just want to discuss the two most popular Traditional and Roth:

Benefits of Traditional IRA:

Possible Tax Deduction if eligible
Tax Deferred Growth
Still contribute even if funding 401k(any employer sponsered program)

Benefits on Roth IRA:

Contributions can always be pulled when you need the money.
Possible Tax Free Growth
Can contribute past the age on 70 1/2.

The TRUTH is if you don’t have a retirement program through your job you need to invest in at least one of these programs. Yes, paying bills, debts etc… are all very important however, you need to start having a “big picture” focus. If you think the government is going to be there to help you in your old age think again.

Related posts brought to you by Yet Another Related Posts Plugin.

Top 10 Phrases Debt Collectors Will Use

Rick Vaughn — Tue, 01 Dec 2009 02:48:31 +0000

First off, the reason I’m writing this post is not because I don’t pay my bills. It’s because I’m a Debt Collector myself and I know very well how the game is played. Any seasoned Debt Collector will tell you how much the industry has changed throughout the last 10 years. As a collector, you just cannot get away with what you used to in terms of intimidating people. This is great for consumers, however, it’s not so great for the one time six-figure collector who can now barely meet his goal for the month. I’m sure you are all heart-broken. Anyway, here is a list of phrases you will hear that debt collectors will use in an attempt to make you pay:

The Mini-Miranda - “This is an attempt to collect a debt. Any and all information will be used for that purpose.” If you have ever been arrested this will sound a little familiar, right?

“My Firm” - Sometimes they are attorney’s, however, 99% of the time they are not.

“We will be obtaining a financial profile”- Often times, a collector only has the information they can gather off your credit report. That is all the information they are ever going to have. That is unless you mistakenly start telling the collector information you should be keeping to yourself. All the other information they obtain is through a process called skip-tracing.

“Verifying your employment” - Most employers have smartened up about of giving out employee information. In fact, most require that you make this request in writing and that the employee has to agree to give out that information. Do not do this!

“What are you offering?”- Classic negotiation phrase used to pin you down into some form of payment.

“Who can help you?”-This phrase you will definitely hear if you are younger and the collector thinks there is a parent who can help you.

“Where can I reach you during the day?”-This is an attempt to get a number to your job. If you don’t want calls to your place of employment you better let it be known and leave no room for misinterpretation.

“We will just move forward”-Normally, this is a last ditch attempt to peak your curiosity. It makes you think something is going to happen, but most likely you will get another collection call tomorrow.

“Do you have an attorney?”-This is said to create a sense of urgency. If the collector flat out says they are going to “sue” you, then beware. However, it better be verbatim that they plan on suing you. Most likely they aren’t there just yet.

“I’m sorry, time is not something I can give you” -Again, this is to create urgency and give the illusion that some legal proceedings may be taking place.

Again, a debt collector’s job is to motivate you to pay your bills. For many collectors, all they have is words. I have said numerous times that the Fair Debt Collection Practices Act (FDCPA) is very consumer friendly and the best protection against collectors is to know your rights. Constantly remind yourself what their motivation is for calling you. What are some of the phrases or words you are hearing? How did you react to those words?

Should I Pay Off Accounts That Go to Collections? There seems to be a lot of confusion on this...
3 Questions you Should Ask Your Debt Collector. The enlightenment for this post comes from a conversation I...

Related posts brought to you by Yet Another Related Posts Plugin.

If You Have a 400 Credit Score!

Rick Vaughn — Sun, 22 Nov 2009 03:45:37 +0000

There are worse things than being in deep debt, but not many. The problem is that you are constantly paying for past mistakes and those mistakes have a resounding compound effect. Having bad credit can effect many aspects of your life from potential jobs, to how much you pay in car insurance. However, there is a light at the end of tunnel. You can and will get another chance.

Life Lines:

Statue of Limitations - If you are way behind on bills, in every state there is a certain amount of time in which a creditor can bring suit against you. However, each state is different but on average the statue of limitations is 5 years. Check your state here.

Consumer Credit Counseling – Whether you are facing an immediate crisis or just want to learn how to improve your financial health, CCCS can help.

Debtors Anonymous - Debtors Anonymous is a fellowship of men and women who share their experience, strength and hope with each other that they may solve their common problem and help others to recover from compulsive debting.

Bankruptcy – Don’t get caught up in the bankruptcy, avoid defeatism self talk. Bankruptcy was created for a reason and if all fails, you need to do it. In fact, it might accelerate your ability to recover.

So is your life over because you have a very low credit score? No, absolutely not. However, it’s time to take control and stop the victim mentality. You didn’t get a 400 credit score overnight and you surely will not have an 800 by next week. With the right plan and self discipline you can regain the direction of your financial health.

What Would You Do Without Any Debt? For many people, being debt-free is a lifetime goal that...

Related posts brought to you by Yet Another Related Posts Plugin.

How to Pay Off a Car Loan Faster?

Rick Vaughn — Fri, 20 Nov 2009 03:42:30 +0000

Let’s face it, for most people in New York City a car is a necessity. Unless you are Amish or under the age of 16, you probably either have a car or need one badly. The problem is coming up with $10,000 to $50,000 for a new car is not easy to get for most of us. In fact, the majority need to borrow from parents or personal savings just to get a down payment. Then on top of that, you will need to finance the debt with a bank for the remaining. Nothing new there, right? Well, being in debt sucks, anyone will tell you that. So what are some way I can accelerate my repayment?

With the quickness:

Pay more each month: Duh, seems obvious, but some loans make you pay penalties for paying debt sooner. You’ll find that a majority of the finance companies make most of their money in the first 36 months of a car loan. The sooner you can start paying these loans down, you’ll be thanking your self 5-6 years later.

Make Bi-weekly payments: This may go hand and hand with the suggestion given before, but you’ll find that if you are able to split your payments, you may be able to pay more each time which has a snowball effect.

Getting another job: Look, I’m a big believer that you work to live, not live to work. So I have a tough time with this one. However, if getting out of debt is a major priority for you this step can only help. I implore you to really think about this because there are major benefits and consequences to this.

Now, before you comment, I know this sounds overly simplified but really it is. There are no tricks. There are options like refinancing, which can and could save you money but you really need to do the math. Not all deals are created equal. Also, a car loan, unless it is outrageous, should be one of the last debts you pay down. If you have credit cards or loans that are accruing interest at 20% plus you need to focus your efforts there first.

Is your car paid off? If so, how long did it take?

Who is to Blame? This afternoon I had a conversation with the father of...
What Would You Do Without Any Debt? For many people, being debt-free is a lifetime goal that...

Related posts brought to you by Yet Another Related Posts Plugin.

Can a Creditor Sue Me After Setting up a Payment Plan?

Rick Vaughn — Thu, 19 Nov 2009 04:19:07 +0000

Let’s get the disclaimer out of the way: I AM NOT AN ATTORNEY. More importantly, I don’t know the laws in your state or your personal situation. All I have is years of experience and a fairly good idea how creditors (generally credit card companies) work. So I want to write this post for the person who is worried they are going to be sued but has not run this scenario by their lawyer.

It should not be a surprise that YES a creditor does have the ability to sue you for not paying them. Unless you borrowed money from family or a close friend, more than likely there will be a clause or some stipulation that the creditor has recourse for non-payment.

The big misconception is that if you are making some form of payment that they will not sue you. This is far from the case. Any payments not paid pursuant to an agreement with the creditor are simply voluntary payments on a debt. That does not stop the creditor from suing you (and ultimately garnishing your wages, etc.).

Here is the tricky part, more than likely you are dealing with a collection agency at this point. They will say they are a “firm” or “law center” but most are just collection agencies; do not be fooled. Getting them to send you payment arrangements in writing is going to be difficult, if not impossible. The only exception, normally, would be a settlement offer in which you can and should always get in writing. What you do have as evidence is your bank statements and most reputable collection agencies record their calls.

Just as a heads, up if you are dealing with the likes of Capital One or Bank of America, they tend to be much more aggressive then other creditors. However, more than likely if you have a payment arrangement and can give copious notes on who you spoke to and who their boss is, etc… you should not have a problem.

Personal Financial Meltdowns This afternoon I had the delight of speaking with a...

Related posts brought to you by Yet Another Related Posts Plugin.