Are you one of those people who don’t feel the need to get pre-paid cards – you need to think about what you’re getting into. If you want to be sure that you’re not saving the credit card with the highest interest rate, here’s what you need to know:
Under federal law, you have the right to receive “billing via post” or “debit and courier services for its delivery” from one (or several) credit reporting agencies. The thing about these services is that you must ask for the fee and whether or not you’re eligible to receive them is going to be dictated by your income or your ability to collect each monthly payment. Because of your having to pay a fee for these services, they become your financial obligations and have a bearing on whether or not you are eligible for them. Even if you were an unsecured debt-collecting insolvent (rather than a debt-exempt insolvent creditor), you still would be entitled to receive the services and terms of their delivery, provided that you send and specify what the terms and conditions are in your letter. In the long run, it’s up to you whether you feel yourself eligible for the services. However, if you are, it’s up to you to find out whether you are the type of person who would want to be excluded from the service, to your surprise.
You can find out your income or ability to collect by visiting the monthly summary form the web site and comparing your income versus your ability to collect and the monthly amounts that you have to pay. Generally, your ability to collect is a percentage of the total amount you owe toward the debt. However, the next time you decide to get an installment contract, there’s always a method on the web site of calculating the percentage that you owe the full amount you owe. In other words, it all depends on how you collect.
Sometimes, by requesting an information from a collection agency, you may get credit-reporting information from the major credit reporting agency (Equifax, Experian, or TransUnion) that gives the collection agency all the information you need to know about your behavior. That information, before you submit it, includes your income and how much you owe, so you’ll know for sure if you’re making a conscious effort to stop collection from your creditors.
On the other hand, you can find out by telephone calls to your creditor if you’re making any attempts to stop collectors from passing, and by the information that is provided to you, you’ll also be able to learn whether or not you have been making any efforts to collect on other creditors.
You should always remember that by making a debt collection effort you will be subject to penalties of late or collect-related fees, and by collection agency inspection, to make sure that your collection is going as planned.
Credit Reporting to Help Reduce Late Fees
Late fees and reporting agencies are in spades, an all too familiar problem of credit-based businesses and small businesses. It is almost impossible to think of another time when you will not be in debt when you have no income, and reporting agencies can often go astray in any field of endeavor. What better option is out there than an easy to use (and useful) reporting system that is fast, easy to use, and free of the fee headaches that so many gatekeepers in the industry face?
How is the Reporting System Considered Fair?
As used herein, the term “fair” shall mean the difference between the amounts you would have to charge for the information in your file:
‘ The total amount of debt, including both the lowest and highest interest rates. For example, if you have a debt of $20,000 and have charged me a total of $35,000, and I charge you $10,000 per month and charge me 29% of that total, I would have to pay $40,000!
‘ The information about the unpaid portion of the bill and the unpaid amount; and
‘ The type of dispute that occurred. If I end up with a dispute over an item and a supplier takes a negative score from that item, most creditors would like me to pay the price of any item that was an ‘authorized party’ to your complaint. Therefore, the types of disputes that I am likely to encounter are:
‘ Claim for attorney’
‘ Claim for reimbursement by disputes participant
‘ Claim by a seller
It is fair to say that this procedure is called ‘consumer reporting.’ As in ‘Fair Debt Collection Practices Act.