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Same Sweater, Different Debt Drama: Why Your State Matters (Especially When You Can’t Pay)

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Let’s talk about debt collection – a topic that can make your wallet sweat and your phone vibrate like a hummingbird trapped in a blender. But here’s the thing: how debt collectors can come after you actually depends on where you live.

Imagine you snag a sweet deal on a new sweater at JCPenney, swipe your plastic, and head home feeling fabulous. In most states, the legalities of that purchase are pretty straightforward, regardless of where you live. The jacket’s the same, the price is similar, and even the interest rate on your card likely falls within a predictable range. Taxes might differ slightly, but that’s about it.

Young blonde woman customer choosing sweater smiling at clothing store

But things get messy when you can’t pay that bill on time. Suddenly, state lines become a minefield. In some states, original creditors are limited in how often they can call you. Others? Well, they could be blowing up your phone a hundred times a week, and there’s not much you can do about it.

Here’s the deal: traditionally, contract law (including debt collection) was a state-by-state game. This meant some states had your back, limiting how often collectors could call you.  Other states? Forget it, your phone might sound like a frantic bird for a week straight.

But the world’s changed – online agreements, national lenders, giant banks lending and collecting everywhere. So, federal law stepped in a bit with the Fair Debt Collection Practices Act (FDCPA). This law helps protect you from harassment by collection agencies.  But here’s the catch: it doesn’t apply to the original creditor themselves, only those debt collection companies.

State Law – finance/economics. Man carries a stack of 3 file folders. A folder has the label State Law. Business, statistics concept

Even the scary stuff, like lawsuits, have a different impact in different states. Some states don’t allow wages to be garnished for credit card debts, while others do. The moral of the story? While some things might seem universal, like a comfy sweater, the legal landscape around debt collection can vary depending on where you live.  So, if you’re facing debt collection issues, knowing your state laws can be a real power move.

The next time you’re considering getting help with your debt, state law knowledge matters. Especially when it comes to debt collection and that sinking feeling in your stomach (and possibly your phone). 

If you’re worried about debt or dealing with aggressive collectors, don’t hesitate to reach out to us.  We can help you navigate the legalese and fight for your rights, with an attorney licensed in your state!

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Who Does Midland Funding, LLC Collect For?

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Midland Funding, LLC is a name that might ring a bell if you’ve been receiving relentless calls about an old debt. Understanding who this company is and the kinds of debts they collect can help you deal with them more effectively, should they come calling.

Midland Funding is well-known in the debt-buying industry. They purchase large portfolios of consumer debt from major banks and financial institutions, often for pennies on the dollar. If you’re on one of the lists they acquire, you can expect letters and calls from Midland Credit Management seeking to collect the debt. The types of debt they collect on are generally unsecured, meaning there’s no collateral backing them up. But who exactly do they collect for?

Debt Collector Letter

Debts Midland Funding, LLC Collects On

Understanding the type of debt being collected on can help you when negotiating with Midland, disputing a debt claim or defending a debt collection lawsuit. Midland Funding focuses on debt that can typically be categorized as follows:

  • Consumer Credit Cards: One of the most common types of debt Midland purchases is from credit card companies.
  • Personal Lines of Credit: Loans extended without collateral fall into this category.
  • Student Loans: Particularly private student loans that do not have government backing, with or without co-borrowers.

Debts Midland Doesn’t Usually Collect

There likely have been exceptions in the past and every company may shift it’s focus, but Midland Funding, LLC does not generally involve itself with:

  • Commercial Debt: Business-related debts are not typically within their realm of collection.
  • Mortgage, Auto or Secured Debt: Debts tied to a tangible asset, like a house or a car, usually fall outside of their interest.
  • Medical Debt: Unlike other debt collectors, Midland isn’t known for pursuing medical-related debts.
  • Government Debt: Debts owed to government agencies are not targeted by Midland Funding.
Person getting debt collector call

What to do when Midland Calls

When you get a call from Midland Funding, it’s essential first to verify the debt. Make sure it truly belongs to you- you can dispute debt with MCM if you don’t believe it is valid. You should also make sure the debt isn’t within the statute of limitations for collections. Not sure if your debt is past the statute of limitations?

Wondering if the law limits how Midland Funding can collect on your debt.

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Establishing a plan of action is your next step. If the debt is indeed yours, plan how you will resolve it, whether through a payment plan, a settlement, or another debt resolution method. If you find this task daunting or are uncertain about your next move, consider reaching out to the National Legal Center for guidance on a plan customized to your situation.

If Midland Funding Has Filed A Lawsuit

If you’re on the receiving end of a debt collection lawsuit or have been threatened with one by Midland Funding, take it seriously. Midland Funding is an aggressive player in the debt collection industry, and they often follow through on their threats of legal action. In such cases, it is advisable to speak with a professional. Our law office is well-versed in handling such situations and can form and implement a robust defense strategy or work to negotiate a settlement to resolve the debt.

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Conclusion

In summary, Midland Funding, LLC collects mainly for major credit companies and financial institutions, focusing on consumer debts like credit cards and personal lines of credit. They tend not to collect on commercial debts, mortgages, medical bills, or debts resulting from auto loans and government loans. Knowing what kind of debt Midland collects can prepare you for dealing with collections calls or even lawsuits. Most importantly, having a plan of action and, when appropriate, professional assistance at your side is invaluable in resolving debt in collections. Remember, the correct information and preparation can make all the difference when tackling debt in collections.

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Resolve and Remove Capio Partners From Your Credit Report

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When you’re up against persistent calls and remarks from medical debt collection agency Capio Partners on your credit report, it can feel like a bit like you’re being kicked while you’re down. The cost of medical bills—often unexpected, significant and lacking explanation— can leave anyone feeling vulnerable and frustrated. You’re not only managing your health but also navigating the added pressure of financial strain. When this happens, finding a pathway to resolve these issues and protect your financial well-being becomes more than just a need—it becomes a priority.

National Legal Center is your new ally in battling medical and unsecured debt. The NLC team has been around for a long time, helping folks just like you get out from under the weight of debt. With their experience and know-how, you can count on them to stand with you every step of the way, fighting for your financial freedom.

It is possible to lower medical debt in collections. Request a free consultation with NLC today or read on to learn how to resolve and remove Capio Partners from your credit report

Past Due Medical Bills folder

Who is Capio Partners, LLC?

Capio Partners, LLC appears to be a legitimate medical debt collection agency, but don’t let your guard down- legitimate companies still break laws and stack up long lists of complaints. In this article, you’ll learn what happens when you don’t pay Capio Partnerss, LLC and when its time to call a debt settlement attorney.

Capital Partners, LLC is a Debt Collection Agency

Primarily operating as a medical debt collection agency, Capio Partners LLC purchases or is contracted to collect medical debts from hospitals and other healthcare providers. They then attempt to collect on these debts by contacting the debtor through phone calls, debt collection letters and remarks on their credit report.

While this may seem like a straightforward process, the questionable Better Business Bureau rating and hundreds of complaints to the BBB against Capio Partners over the years alleging illegal and unethical debt collection practices can make anyone wonder if they’re a scam.

The Impact of Capio Partners on Your Credit Report

When a medical bill is sent to collections and reported on your credit report, it has the potential to impact your credit score. New credit reporting changes now prevent medical bills under $500 from being reported to the credit bureaus. This is helpful, but combined medical bills and accounts over $500 that are reported can make it difficult to obtain loans, credit cards, and even housing in the future. Capio Partners is known for reporting debts to the three major credit bureaus (Equifax, Experian, and TransUnion), which means that their presence on your credit report can be hard to ignore.

However, you do have options to resolve and remove Capio Partners from your credit report.

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Removing Capio Partners, LLC From Your Credit Report

Removing Capio Partners, LLC from your credit report can primarily be achieved through two strategies:

Disputing Debt With Capio Partners

In situations where you believe the debt is invalid, inaccurate, or if you would like to have validation of the debt’s legitimacy, filing a dispute with the credit bureaus is a viable option. You have the right to send a debt validation letter to request clear debt verification.

Upon receipt of your written debt validation letter, Capio Partners, LLC or the original creditor or medical providers will be required to provide substantial proof of the debt and its association with you. In the event they cannot validate the debt or if the dispute reveals inaccuracies, you can request the removal of the entry from your credit history. Conduct all communications in writing and keep records of all interactions and documents exchanged during the process.

Settling Debt With Capio Partners

If you acknowledge the debt is valid, consider negotiating a settlement agreement with Capio Partners, LLC. A settlement allows the debt to be marked as “Settled in Full” with a $0 balance remaining. This indicates to anyone reviewing your credit report that while the debt was settled for less than the original amount, no further payments are required.

Here are a few tips for negotiating debt with Capio Partners:

  • Make sure it’s yours. Be confident you’ve addressed any medical billing errors and that insurance has paid its fair share before beginning negotiations. This way you begin from your best starting point.
  • Keep a record of all communications with Capio Partners, noting dates, times, and the substance of the conversations or correspondence.
  • Avoid giving out personal bank account information or authorizing automatic withdrawals until the settlement agreement is finalized and confirmed in writing.
  • Set aside funds for the settlement in advance, ensuring you can fulfill the payment terms promptly once agreed upon.
  • Be patient and persistent; negotiations may take several rounds before reaching an agreement.
  • Obtain written confirmation of the settlement terms and the agreement that the account will be reported as settled with a $0 balance.

If that seems like a lot, trust the legal team at National Legal Center to handle the negotiations for you. With their experience in dealing with debt collection agencies and knowledge of consumer protection laws, and they know the debt collection tricks to watch for.

National Legal Center can work to ensure you receive a fair settlement agreement. Request a free consultation today!

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Aggressive Collectors? Know Your Rights

Consumer protection laws exist on the state and federal level aim to protect borrowers from unethical debt collection practices. Let’s look at two that are particularly relevant for those with medical debt in collections.

The Fair Debt Collection Practices Act

If you’ve ever been on the receiving end of aggressive debt collection tactics, you’re likely aware of the Fair Debt Collections Practices Act. This federal law was put in place to protect consumers from abusive and deceptive collection practices. Some key provisions of this act include:

  • Limiting when and where collectors can contact you (i.e., not before 8 AM or after 9 PM)
  • Prohibiting harassment and abusive or deceptive tactics
  • Requiring collectors to provide written validation of a debt upon request
  • Prohibiting deceptive means to collect debts, such as pretending to be an attorney or threatening legal action without intent to follow through
  • Preventing disclosing debt information to third parties without permission
  • Allowing consumers to request that collectors cease communication altogether

The Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) aims to ensure the accuracy, fairness, and privacy of information presented in consumer credit repors. This act applies to all businesses that collect and use consumer credit information, including debt collection agencies like Capio Partners. Some key provisions of this act include:

  • Requiring credit reporting agencies and data furnishers (like Capio Partners) to investigate any disputes filed by consumers within 30 days
  • Providing consumers with the right to request a free credit report every year
  • Requiring that only accurate and verifiable information be included in consumer credit reports
  • Allowing consumers to dispute and have incorrect or outdated information removed from their credit report

If you believe Capio Partners, or any collection agency, has violated either of these laws, you have the right to file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general office. Additionally, you may be able to take legal action against the collection agency for any damages you incurred due to misinformation on your credit reports.

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Frequently Asked Question’s

Is Capio Partners, LLC a law firm?

No, they are not a law firm, they are a medical debt collection company. Because Capio Partners is a traditional debt collection agency and not a law firm, it cannot file a debt collection lawsuit for uncollected medical debt without retaining an outside attorney.

Can I negotiate with a debt collector myself?

Yes, you can settle with debt collectors yourself. Know what to expect and cross your t’s and dot your i’s to be sure the collection agency honors the settlement agreement.

How can a debt relief law firm help?

Our debt relief law firm can handle debt collector communications and negotiate settlements or payment plans with Capio Partners, LLC. We may also request debt validation, stop collection calls, assess wage garnishment risk, sue debt collectors, and defend debt collection lawsuits if necessary.

What is the Fair Debt Collection Practices Act (FDCPA)?

The FDCPA is a federal law that regulates the collection of consumer debt by debt collectors. A debt collector or cannot call too early or late, use profanity, share false information, and more. 

Will debt settlement show up on a credit report?

Debts settled with Capio Partners, LLC will likely be reported to the three major credit bureaus. Debt collection companies will report debt that has been settled on your credit reports with phrases like “Settled in Full” or “Settled for less than full amount owed.”

Seek Legal Help from National Legal Center

If you’d like to settle medical debt with Capio Partners, LLC or have questions about your consumer rights, it may be time to call a debt settlement attorney. Our team at National Legal Center has extensive experience in dealing with debt collection agencies like Capio Partners and can provide guidance on the best course of action for your specific situation.

Don’t let medical debt affect your financial well-being any longer – National Legal Center is here to support and fight for you every step of the way. Request a free consultation today!

Schedule a Free Consultation with National Legal Center

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Can You Use One Credit Card to Pay Another?

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As a consumer rights law firm, National Legal Center speaks with many people while they are navigating debt resolution challenges. A frequently asked question we encounter is “can you pay off one credit card with another?” While the short answer is no, it is not generally possible to do so, there are some alternatives that may be available.

Before diving in, trying to use one credit card to pay another is a sign you’re facing high-interest debt. In fact, it’s one of the 5 times to call a debt settlement attorney. The legal professionals at National Legal are here to help you explore options. Call us at 800-728-5285, or read on to learn how to use one credit card to pay another, among with additional alternatives to deal with high interest debt.

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The Limitations Of Paying a Credit Card Bill With Another Credit Card

Credit card companies typically prohibit using one credit card to pay off another due to the high-risk nature of the transactions. Engaging in this practice can easily result in an unending cycle of debt, where consumers might find themselves merely transferring balances from card to card without truly addressing the underlying financial issues. This cycle not only complicates an individual’s debt situation but can also exacerbate financial stress and instability.

What Are Your Options For Paying High-Interest Credit Card Debt?

Although it’s not possible to directly pay a credit card with another, there are simple financial strategies that allow you to use one line of credit to effectively resolve debt on another. One of the most popular methods is through a credit card balance transfer, where you can move the debt from one card to another credit card bill, usually to take advantage of a lower interest rate. Additionally, there are other legal strategies available that can help manage and resolve high-interest credit card debt in a more strategic and sustainable way, often with a lower minimum payment.

the girl is shopping on the Internet

Balance Transfer

One way to pay one credit card with another is to pay off the existing debt through methods such as balance transfers or cash advances. Balance transfers allow you to transfer one credit card’s balance onto another card, usually at a lower interest rate. This can help you save money on interest and potentially pay off your debt faster. However, it’s important to note that most balance transfers come with fees and promotional periods which may expire after a certain time.

Balance Transfer Credit Cards

When considering paying an existing credit card balance with another credit card by way of a balance transfer, it’s good to have the right tool for the job. Look for a balance transfer credit card as the credit card issuer has built this card for your intended purpose.

There can be excellent offers and incentives to apply for a balance transfer credit card. For instance, you may see a credit card issuer that is offering a promotion with reduced fees for balance transfers, which can help save money when repaying your credit card balance. It’s often wise to take advantage of promotional interest rate offers on balance transfer cards, as long as you understand the fine print and, ideally, can afford to pay beyond the minimum payment.

Money transfer online Global mobile financial transaction

Balance Transfer Fee

Balance transfer fees are generally a percentage of the total amount transferred, typically ranging from 3% to 5%. It’s crucial to pay close attention to these fees as they can add up, particularly with larger balances. Understanding the fee structure is essential to calculating whether a balance transfer would be financially beneficial in your specific situation.

Cash Advance

Cash advances offer another option to pay one credit card with another. The cash advance process involves taking out a loan against your credit card’s available credit limit. The funds received can be used to pay off another credit card, but it’s important to consider the high interest rates and fees associated with cash advances before opting for this method.

Cash Advance Fees

Cash advance fees are typically structured as a fixed fee per transaction or a percentage of the amount withdrawn, whichever is greater. These fees can vary significantly between credit card issuers, often ranging from 3% to 5% of the cash advance amount. Cash advance fees usually begin accruing interest immediately, without the grace period usually offered for purchases. This means that the cost of borrowing through a cash advance can escalate rapidly, making it a less desirable option for managing credit card debt effectively.

Before proceeding with a cash advance and paying the cash advance fee, it is often less expensive to pay the balance transfer fee and resolve the debt through balance transfers or other strategic ways to pay a credit card. Every situation will be different, and the most efficient way to pay your credit card bill will depend on your personal situation. it’s advisable to carefully consider its impact on your financial situation and explore all available debt management strategies.

Debt Management Plan

A significant advantage of a Debt Management Plan (DMP) is its ability to streamline the debt repayment process through a single, consolidated payment. Instead of juggling multiple credit card payments, individuals can authorize the credit counseling agency to withdraw a predetermined amount directly from their bank account each month. This amount is then distributed among the creditors according to the agreed-upon debt management plan, usually offering reduced interest rates. This direct withdrawal from a bank account not only simplifies the payment process but also helps ensure timely payments, thus avoiding late fees and further credit damage.

Debt Consolidation Loan

A debt consolidation loan can be an effective strategy to manage and pay off high-interest credit card debt. This method involves taking out a single loan to pay off multiple debts, ideally at a lower interest rate. By consolidating multiple credit card balances into one loan, you can potentially reduce the overall interest rate on your debt, simplify your monthly payments, and create a more manageable path toward debt freedom.

Beyond making your credit card bill more manageable, a consolidation loan has the potential to improve your credit score over time by reducing your credit utilization ratio and establishing a consistent payment history. However, it’s crucial to carefully consider the loan’s terms, interest rates, and fees, as well as your ability to make the monthly payments, before opting for this debt resolution strategy.

Do be wary of debt consolidation loan offers with guaranteed approval or with rates that seem too good to be true. This is commonly a bait and switch tactic to fake debt validation schemes.

Follow the NLC Blog for additional scam-awareness tips.

Debt Resolution Plan

If you’re facing difficulties in keeping up with your credit card bill, immediate action is vital. A Debt Resolution Plan from National Legal Center is a legal solution that provides an alternative to traditional debt settlement methods. Our Debt Resolution Plan brings our skilled attorneys in to negotiate with creditors on your behalf to reduce the principal amount owed, allowing you to pay off your debts faster and for less.

Opting for a Debt Resolution Plan allows for more significant financial relief than simply transferring debt through a balance transfer card. By negotiating to reduce the principal balance owed—not just interest rates—debtors can achieve more substantial savings on their credit card balance than they would through balance transfers alone. This reduction in the principal amount means that you’re ultimately paying back less than the total amount originally owed, offering a clear path out of debt that can be both faster and more affordable.

Individuals on a Debt Resolution Plan have the potential to save measurably, both through lower monthly payments in the short term and reduced credit card balance in the long term, all while providing a structured way to become debt-free.

Bankruptcy

For some, bankruptcy may emerge as an unavoidable solution when all other debt resolution strategies prove insufficient. Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. It offers a chance to start over by forgiving debts that cannot be paid, under the protection of a federal court. Bankruptcy, like all financial decisions, can have long-lasting effects on your credit score and financial standing.

Explore Options And Take Action

While using one credit card to pay off another may not be a direct option, there are several approaches to make it happen and more effective alternatives to manage high-interest credit card debt. It’s essential to explore your options and take action before the situation becomes unmanageable.

Speak with the legal experts at National Legal Center for help in mapping out your debt repayment path.  Call 1-800-728-5285 or schedule your free consultation today.

Schedule a Free Consultation with National Legal Center

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Defend Yourself Against Creditors

Silent Safeguards: 5 Stealthy Ways to Resist Debt Collection Pressures

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Dealing with debt collectors can be a nerve-wracking experience, but there’s no reason to make it easy for them to make life difficult. There are several subtle steps you can take to defend yourself and your financial well-being.

In this article, we’ll share five subtle strategies to help you navigate the challenging waters of debt collection, from knowing your rights to clever tactics that can help you stay ahead of the game. By the time you’re done reading, you’ll be equipped to handle collections with a new confidence.

Let’s dive in and learn how to protect yourself from debt collectors.

know your rights text on signpost

1) Empower Yourself by Knowing Your Rights

Understanding the Fair Debt Collection Practices Act (FDCPA) is your first line of defense against aggressive debt collectors. The FDCPA is a federal law that sets the standard for how debt collectors should conduct themselves. By closely acquainting yourself with the provisions of the FDCPA you put yourself in a stronger position to challenge any unethical collection practices. 

For example, this act outlines when and how collectors can engage with you, forbidding them from calling at odd hours or at places like your workplace if you’ve informed them it is unacceptable. Knowing that you have the right to demand all communication in writing is crucial, as it provides a paper trail for any potential legal action. If collectors persist in harassing you after you or your debt settlement attorney sent a cease and desist letter, they’re in violation of the FDCPA.

By being well-versed in your rights, you can proactively address and even prevent issues arising during debt collection efforts. Not only does this knowledge deter collectors from using intimidation tactics, but it also offers confidence to stand your ground and protect your financial well-being.

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2) Don’t Overshare on Social Media: Your Digital Footprint Exposes More Than You Think

Social media platforms like Facebook and LinkedIn can inadvertently become tools for debt collectors to gather information about your job your lifestyle and even locate assets. A former debt collector noted how such platforms are leveraged to collect data that could be used against you. 

How debt collectors use social media:

  • Photos of Work Identifications or Uniforms: Debt collectors may use pictures you post that inadvertently display your work ID or uniform to determine your place of employment.
  • Updates on Job Changes or Promotions: Announcements about job changes, promotions, or other career milestones can give collectors insights into your financial status.
  • Family and Relationships: By looking at your relationships, collectors can identify potential contacts or co-debtors related to your financial liabilities.
  • Check-In Locations: Your check-in posts at various locations can reveal patterns in your lifestyle and potentially even your home or work address.
  • Celebratory Financial Posts: Posts that celebrate big purchases or financial milestones might suggest an improved ability to pay debts.
  • Fake Recruiter Profiles: Debt collectors may use fake LinkedIn recruiter accounts to connect with you, making it easier for you to lower your guard and share personal information.
  • Public Friend Lists and Networks: Collectors can peruse your friend lists and network connections to gather additional points of contact.
  • Consistent Use of Hashtags: Specific hashtags related to work or spending habits can help collectors build a profile of your financial behavior. #splurgespend #treatingmyself

Maintaining privacy online makes it more difficult for debt collectors to assess your financial standing or property ownership, which could otherwise lead to more aggressive collection strategies. By being mindful of your activities on social media, collectors are less likely to contact friends or family members, preserving your relationships and reputation. 

By controlling what information is available about you, you keep the power in your interactions with debt collectors and reduce your visibility as a target for their actions.

mobile banking

3) Smart Banking Shields You From Unexpected Withdrawals and Levies

Debt collectors often try to continue drafting automatic payments directly from your bank accounts. But did you know you have the right to cancel automatic transactions that you no longer authorize to protect your money from automatic withdrawals? 

Banking tips when you have debt in collections:

  • Set Up Separate Bank Accounts: Establishing a bank account that isn’t linked to any debts can safeguard your funds. A new bank account is especially important if you wish to revoke authorization from companies you temporarily granted permission to withdraw funds automatically.
  • Avoid Automatic Payment Plans: Opting out of automatic payment setups ensures you keep control over when and how much you pay, preventing any unwanted surprises from automatic debits.
  • Separate Protected Income: Some forms of income, such as SSI, SSDI, many pensions, and child support are exempt from debt collection. By depositing these funds into an account that’s separate from any other debts, you can protect that money should a collector attempt to garnish your bank accounts.
  • Direct Deposits to a Secure Account: Have your income directly deposited into an account that isn’t connected to your debts. This prevents debt collectors from claiming a portion of your income before you can allocate it as needed.
  • Inform Yourself About Wage Garnishment Laws: Understanding state and federal garnishment laws will help you know how much of your income is at risk and what part you can protect. If you’re unsure, National Legal Center’s legal professionals can help you assess your risk with a free debt consultation.

Debt Defense Pro tip:

Avoid using the same bank for new accounts that you used when the debts were in good standing. Doing so can shield your current funds from being easily levied.

Being intentional about where your money is held and who has access to it means you are actively managing your financial health. Creating buffers between you and debt collectors protects your assets and gives you peace of mind while you strategize the best way to tackle your debts. Remember, the key is to stay one step ahead of debt collectors, and oversight of your bank accounts is an essential strategic move.

Woman thinking,

4) Effective Communication Techniques to Handle Debt Collectors

Debt collectors are trained to extract payments using various psychological tactics. Being prepared with effective communication techniques to help you maintain the upper hand. 

Strategies for communicating with debt collectors:

  1. Record All Interactions: Keep a detailed log of all communications with debt collectors, including phone calls, emails, and any letters. Consider recording phone conversations if your state law permits.
  2. Use Certified Mail: When sending important documents to collectors or disputing a debt, use certified mail with return receipt requested to ensure there is proof of delivery.
  3. Stay Calm and Collected: Always keep conversations with debt collectors calm and assertive, regardless of the tone they might use. Your composure can deflect aggressive tactics and keep the conversation on topic.
  4. Know When to Disengage: If a debt collector becomes overly aggressive or you feel the conversation is not productive, know that you have the right to end the conversation and only communicate in writing.
  5. Trust the Pro’s: If you’re considering settling debt yourself, follow the tips from the negotiation experts at NLC.  

Communication with debt collectors should be done in writing whenever possible to leave a paper trail and avoid any misunderstandings. Stay informed of your rights, and don’t be afraid to exercise them when necessary. With the right strategies and mindset, you can handle debt collectors effectively while working towards financial freedom.

Legal Assistance

5) Seek Legal Assistance

When dealing with persistent debt collectors, help from a legal professional can sometimes become necessary. Attorneys familiar with consumer debt protection can be your strongest allies in these situations. They understand the intricate laws and regulations governing debt collection and can provide effective strategies and legal representation.

Benefits of Legal Assistance in Debt Collection:

  • Cease and Desist Enforcement: A debt resolution lawyer can ensure that your cease and desist letters are respected, and can take swift legal action if collectors continue to contact you or violate your consumer rights.
  • Representation in Court: Should the case escalate to a lawsuit, having an attorney means you’ll have an experienced advocate who can help determine if it makes sense to negotiate a settlement or defend your rights in court.
  • Negotiation of Settlements: Skilled attorneys and legal professionals regularly negotiate debt settlements for less than what is owed without you having to directly communicate with collectors.
  • Guidance on Asset Protection: Legal counsel can also offer advice on how to protect your assets from seizure, minimize the likelihood of wage garnishment and guide you to an effective resolution of your debts.
  • Education on Your Rights: Perhaps most importantly, legal professionals can educate you about your rights and options, acting as your ally and empowering you with the knowledge to deal with collectors confidently and successfully. 

Not sure if your situation warrants bringing in an attorney? Here are 5 times to call a debt settlement attorney. If it’s time for you to stand up to debt, resolve debt affordably with National Legal Center. Request a free quote and consultation today. 

By consulting with a legal expert, you are not only fortifying your position against debt collectors but are also taking proactive steps toward safeguarding your financial future. Remember, you don’t have to face your debts alone; help is available, and it’s within your right to use it.

Conclusion

Empower yourself and protect your peace of mind by taking these smart steps against debt collectors. Often, it’s the subtle tactics that prevent collection activity from disrupting your life. 

 

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Unmasking the Mirage: The Hidden Reality Behind Low Debt in Collections

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  • The Federal Reserve Bank of New York (NY Fed) shared data showing that the number of Americans with debt in collections is at an all-time low.
  • Medical debt previously made up 58% of collection tradelines, and credit bureaus have stopped reporting medical bills under $500. Furthermore, the temporary pause on student loan repayments has also contributed to the decline in collections.
  • The data regarding collections is not representative of the country’s economic health. The need for a comprehensive and accurate evaluation of economic markers that reflect the financial health of American households is paramount.
Debt Collection Image

A Mirage of Economic Strength

The New York Fed shared data this week that shows the number of Americans with debt in collections is at an all-time low. At first glance, these numbers may imply a robust economy, but the reality is far more complex.

The drastic reduction in debt collections owes more to a systematic change in debt reporting rather than reflecting genuine financial stability among American households. Come along with us as we uncover the truth behind these seemingly positive numbers as we delve deeper into this data. Let’s peel back the layers of this financial- and perhaps political- economic illusion.

What Debt Goes to Collections?

First, it helps to know what causes a debt to go to collections. Accounts are generally reported as delinquent after 30 days of non-payment, charged off, and reported as an account in collections after 180 days. Nearly any type of debt can be sent to collections: medical bills, credit card balances, utility bills, and even student loans. Making occasional or regular payments on an account already in collections doesn’t remove it from collections. Accounts remain in collections until they are paid or settled for less than the full amount owed.

The Medical Debt Mirage

Medical debt, which was found to constitute 58% of all collections, is often the result of an unforeseen health crisis that comes with high medical costs.

In recent years, the credit bureaus initiated an unprecedented move- to stop reporting medical bills under $500. These smaller bills are estimated to make up roughly half of the medical debt in collections. This change clearly benefits the consumer and was made for good reason. With an obvious lead-lag effect, this move also drastcally reduced the reported collections debt.

Heralding the reduction of debt in collections as an economic indicator is a premature evaluation demonstrating no real financial improvement. We cannot claim an economic win when we remove half of the largest source of collections.

Changing the rules of credit reporting will always result in a change in how many debts are reported. It doesn’t mean people feel any less financial pressure- they don’t. They weren’t paying those bills in the first place.

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Impact of Student Loans Moratorium

The temporary pause on student loans also played a significant part in the reduced debt in collections. However, this is merely a deferral of debt repayment, not an elimination, and therefore does not genuinely represent economic improvement.

After a several-year pandemic-prompted pause, payments on federal student loans resumed in October. Time will tell how much of an economic impact this causes.

The Reality of the Decline in Debt Collections

The decline in debt collections reflects systematic changes in debt reporting; it should not be considered an indication of improved economic health. Therefore, these ‘encouraging signs’ are likely merely smoke and mirrors that portray an unrealistic image of our economy.

We must re-evaluate our economic markers and acknowledge that an economy cannot be gauged on such easily manipulated indicators. As we pivot towards a politically charged environment, we will inevitably see politicians play the role of the economic savior, but the need for truth and transparency is even higher. It’s time we recognize these moves for what they are. We need to peek behind the curtain, challenge the status quo, and unmask the actual state of our economy.

Conclusion

In conclusion, while the decline in debt collections may initially seem like a positive economic indicator, it is crucial to look beyond the surface. The changes in debt reporting and temporary moratoriums may have masked the true reality of America’s financial health.

We should consider a range of factors that accurately reflect the financial health of American households. Housing costs, income vs inflation, homelessness, and more. Only then can we truly understand and address people’s debt situation.

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Understanding Identity Theft: What It Is and How to Prevent It

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Identity theft is a real and growing problem. In 2022, the FTC received over 1.1 million reports of identity theft, with losses rising 30% from 2021.

These staggering numbers send a clear message— everyone must understand identity theft and how to protect themselves from becoming victims.

From spotting the scam, dealing with debt, and stopping the problem before it stops, read on to learn all there is to know about identity theft.

Definition of Identity Theft

Identity theft occurs when an individual illicitly obtains and uses someone else’s personally sensitive information. This data may include the victim’s full name, Social Security number, credit card details, or other crucial financial information.

The primary motive behind such an act is typically fraudulent, intending to deceive or mislead for the thief’s monetary gain. The aftermath of identity theft is far-reaching, adversely affecting the victim’s credit, finances, and personal reputation.

Identity Theft

Different Types of Identity Theft

It’s unfortunate, but identity theft has become so broad and lucrative that there now exists a vast spectrum of identity theft, each type possessing its unique characteristics and potential impacts. We hope you take away that identity theft isn’t limited to stealing someone’s credit card information. Theft goes beyond just stealing your credit card, ranging from financial and medical identity theft to criminal and child identity theft.

As you’ll see, it’s not only smart to be careful with your own personal information but also to be mindful for your children and aging parents, too.

Financial Identity Theft

Financial identity theft is what most of us think of when the topic comes up. It refers to the unauthorized use of another person’s financial information for personal gain. This could involve the theft of credit card details, bank account information, or other forms of financial data. As a result, the victim may suffer significant financial loss and damage to their credit score.

Medical Identity Theft

In medical identity theft, the thief uses stolen personal information to obtain prescriptions, medical services or goods or to make fraudulent claims to insurance providers. This can have severe implications for the victim, including incorrect medical records, declined prescription fill-ups, and substantial financial liabilities.

Child Identity Theft

Child identity theft occurs when someone uses a child’s Social Security number to commit fraud. Since many children don’t use their Social Security numbers until they become adults, the theft can go undetected for years, leading to a myriad of financial and legal issues.

Synthetic Identity Theft

In synthetic identity theft, the thief creates a new identity using a combination of real and fabricated information, for instance, mixing a valid Social Security number with a fake name. It’s one of the fastest-growing types of identity theft and is often harder to detect as it doesn’t directly involve an individual victim but rather fictitious entities.

Senior Identity Theft

Senior identity theft targets older adults, who are often more susceptible due to a lack of knowledge about the internet or less frequent monitoring of their financial accounts. It can range from stealing retirement benefits to Medicare fraud and beyond.

National Legal Center has a dedicated division focused on helping seniors and individuals living with disabilities who are dealing with troublesome debt. Call 1-800-728-5285 or request a free consultation online today!

Identity Theft

Impact of Identity Theft

Identity theft isn’t just about financial loss. It can have a long-lasting effect on victims, who may be forced to undergo credit repair and spend countless hours contacting lenders and restoring their good name. Furthermore, victims of identity theft are also prone to feeling violated and exposed, as they may never know who was behind the theft or why they were targeted.

How Does Identity Theft Happen?

Identity thieves use a variety of tactics to obtain personal information, ranging from dumpster diving to sophisticated phishing scams. Let’s go over some common methods of identity theft.

Obtaining Personal Information from Public Records or Online Sources

Personal information can be found in public records, such as birth certificates or marriage licenses, or online through social media accounts, websites, and forums. Some of this we have no control over, but some we do. We can all do well to remember that what we put online stays online, so it’s essential to be mindful of what information we post online and who we share it with.

Dumpster Diving and Mailbox Fishing

Thieves often go through trash or look for mail containing financial or personal information. To avoid becoming a victim, shred documents that contain any sensitive information before disposing of them. Consider having packages delivered to your work address or picking them up from the post office.

Phishing Scams

Phishing scams look to obtain personal information by sending fake emails or messages that appear to come from legitimate sources. Be wary of email links and attachments, as they could be malicious and a gateway for identity thieves to access your data.

Skimming

This method involves using a small device installed on an ATM, gas pump, or other card reader. When you insert your card for payment, your credit card information is recorded for the thief to retrieve later. Always be aware of your surroundings when using an ATM, and if something looks strange or suspicious, it’s best to leave and use another machine.

Phone Scams

Phone scams involve the use of deception to obtain someone’s personal information. For example, a thief may call pretending to be from your bank or credit card company and ask for your account details. Another popular scam targets seniors, acting as a grandchild in an accident or jail needing money to solve an immediate crisis. Don’t provide any information over the phone unless you know who you’re talking to and why they need it.

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How To Prevent Identity Theft

Protecting yourself from identity theft requires a combination of vigilance, smart habits, and the right tools to safeguard your data.

Freeze your Credit

One of the best ways to protect yourself is by placing a credit freeze with the three major credit bureaus: TransUnion, Experian, and Equifax. Placing a credit freeze prevents anyone from accessing your credit report without your explicit permission, effectively blocking any new loans or accounts in your name. A free credit freeze tends to be more robust and effective than a credit lock or fraud alert.

Use Strong Passwords and Don’t Reuse Them

Always use strong passwords that feature uppercase letters, lowercase letters, numbers, and special characters. Also, it’s best practice not to reuse passwords, as this makes it much easier for a hacker to enter your accounts. Consider using a password manager app to store all of your passwords securely.

Be Aware of their Tactics

As mentioned above, identity thieves use tactics such as phishing scams and phone scams to obtain personal information. Don’t click on links or open attachments from unknown senders, and be wary of any requests for personal information.

Monitor Your Accounts

Check your accounts regularly to ensure there are no suspicious transactions or other signs of identity theft. If you see something unusual, contact your bank immediately to take appropriate action.

Credit Monitoring and Identity Theft Protection

Credit monitoring and identity theft protection services can help you stay on top of the latest breaches, alerting you to suspicious activity in your accounts. Additionally, credit locks are available if you feel uncomfortable with a credit freeze. A credit lock is not usually free, but it is more flexible than a credit freeze as you won’t need to lift a credit freeze when applying for new services.

For a more in-depth analysis of how to protect your credit information from theft, refer to our articles on “how to freeze your credit,” “credit lock vs. credit freeze,” and “fraud alert vs. credit freeze.”

Taking these preventative measures can help you protect your credit and financial security from identity thieves.

Summing it Up

When it comes to protecting yourself from identity theft, knowledge is power. By understanding how identity theft works and taking the proper steps to safeguard your sensitive information, you can keep your data safe while still enjoying the conveniences of modern life.

If identity theft or other hardship has left you with unaffordable debt, we can help! Our law firm has helped thousands overcome unmanageable debt and regain financial freedom. Contact us today for a free consultation and learn how we can help you break free from debt.

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Fraud Alert vs. Credit Freeze: Which One is Right for You?

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Given the growing risk of identity theft, it’s crucial to take precautions to safeguard yourself against scammers. Two potential solutions are fraud alerts and credit freezes. Although the terms may appear alike, there are a few important distinctions to consider when deciding which identity theft prevention method is right for you.

In this piece, we’ll delve into the definitions of fraud alerts and credit freezes, their benefits and drawbacks, and how to determine which one suits your circumstances.

What is a Fraud Alert?

A fraud alert is a warning message that you can place on your credit report if you suspect or have confirmed, that you are a victim of identity theft. Credit reporting agencies, such as Experian, TransUnion, and Equifax, receive and store information about your credit history, including your credit applications, loans, payment history, and collections.

You only need to place a fraud alert with one credit bureau. They notify the others to ensure you have all three credit bureaus place an alert on your credit reports. Once they place the remark on your credit reports, any lender that views your credit file knows to take extra precautions to be taken when processing any credit application in your name.

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Fraud Alert: A Detailed Look

A fraud alert acts as a cautionary flag on your credit report when you suspect or have been a victim of identity theft. You alert credit reporting agencies like Experian, TransUnion, and Equifax, who then require lenders to exercise additional care when handling any credit application under your name.

Key Features of a Fraud Alert

  • Cost-effective: Placing a fraud alert on your credit is completely free.
  • Ease of Setup: You only need to notify one credit bureau; they will convey the message to the others. All three credit bureaus work together to have the alert placed on your credit file.
  • Duration: A fraud alert lasts for one year without evidence like a police report; having supporting evidence (like a police report or letter from a creditor) allows for an extended fraud alert lasting 7 years.

Limitations of a Fraud Alert

  • Not foolproof: An alert does not prevent identity thieves from trying. Lenders might not reject fraudulent requests, granting credit to fraudsters and leaving you to deal with bad debt.
  • Not comprehensive: A fraud alert is not as effective as a credit freeze in certain cases. We’ll discuss this more in the next section.
  • Short timeframe: Without evidence, the initial fraud alert lasts only one year. An extended fraud alert lasts much longer, but scammers don’t always leave a trail.
Creditor Call

When to Place a Fraud Alert on Your Credit Report

A fraud alert is placed when you have become, or believe you may become, the victim of identity theft.

Place a Fraud Alert for Potential Identity Theft

Let’s consider a scenario where you receive an email that appears to originate from your bank, alleging suspicious activity on your account and asking for immediate verification of personal information.

Alarmed by their message, you quickly follow the provided link and enter your private credentials. Two minutes later, you realize what happened and suspect the email might have been a phishing scheme.

Alarmed about the potential for fraudulent activity on your credit, this is the perfect time to contact the credit reporting agencies to place a fraud alert that lasts up to one year.

There’s no confirmation of fraudulent activity in this situation yet, but you place a fraud alert to implement preventative measures.

Place an Extended Fraud Alert for Known Fraud

Consider this second scenario. A month ago, you lost your wallet containing your social security card, credit cards, and other personal identification documents. Since then, you’ve been vigilant, frequently checking your credit reports and bank statements for any suspicious activity.

One day, you notice unfamiliar transactions on your credit card statement. You’re certain you haven’t made these purchases, and alarm bells start ringing. You contact your bank, who confirms that your credit card has been used fraudulently.

You immediately report the crime to the police and obtain an official police report, providing concrete evidence of fraud.

With the police report in hand, you contact the credit reporting agencies. This time, you can place an extended fraud alert. The police report allows you to extend the duration of the fraud alert from one year to seven years, providing you with long-term protection against additional bad debt and fraudulent activities on your credit report.

A Credit Freeze: Digging Deeper

A credit freeze, or a security freeze, serves as a robust shield for your credit information against fraudulent activities. It halts any access to your credit report, therefore, any lender trying to view it will be unable to do so unless you provide the go-ahead by unfreezing it. This is achieved using a unique Personal Identification Number (PIN) that you receive when you first place the initial freeze.

Advantages of a Credit Freeze

  1. Robust Protection: A credit freeze offers stronger protection compared to a fraud alert as it completely restricts access to your credit report.
  2. Control in Your Hands: You hold the power to allow or deny access to your credit report, providing you the ultimate control.
  3. Unique PIN: A special PIN is provided when you activate a freeze, which is required when you wish to lift the freeze.
  4. Proactive protection: Credit freezes are a proactive way of ensuring that your credit report remains secure.

Disadvantages of a Credit Freeze

  1. Requires Effort: Unlike a fraud alert, you need to contact each credit bureau individually to place a freeze.
  2. Potential Delays: Unfreezing your credit report when needed can cause delays in credit application approvals.
  3. Dangerously Strict Identity Protection: If you lose your PIN or can’t answer the security questions, expect a tedious process to unfreeze your credit report.

When to Place a Credit Freeze

The best time to stop a problem is before it begins.

Placing a freeze on your credit prevents any fraudster from accessing it and using it to their benefit. A credit freeze offers more comprehensive protection than a fraud alert, as it prevents the credit from being accessed in the first place.

Place a Credit Freeze for Proactive Protection

You can place a credit freeze even if you don’t suspect any fraud or suspicious activity. Let’s say you’ve been a great money manager over the years; you’ve built up excellent credit, making you an attractive target for identity thieves. While you haven’t detected any suspicious activities, you understand the potential risk.

You decide to be proactive in protecting your financial health and reputation. You understand that a credit freeze can prevent unauthorized parties from accessing your credit report and opening new credit accounts in your name, effectively making it more difficult for identity thieves to exploit your good credit and harm your FICO score.

You contact each of the three major credit bureaus to place a credit freeze on your accounts. It may require a bit more effort, but you believe the enhanced protection is worth it. You securely store the unique PINs provided by each bureau, knowing they’re the keys to lifting the freeze should you need to apply for credit in the future.

By placing a credit freeze proactively, you take control of who has access to your credit report, thereby significantly reducing the chance of becoming a victim of identity theft.

Place a Credit Freeze After Identity Theft

Although a credit freeze is done as a preventative measure, anyone who has had to recover from a stolen identity knows they don’t want to go through it again.

Let’s go back to the unfortunate situation where you’ve had your wallet stolen. After gathering evidence of identity theft and filing a police report, you contact the credit bureaus and place an extended fraud alert to last seven years. On top of that, you immediately place a credit freeze with each credit bureau.

By doing both, you take advantage of the fraud alert’s heightened monitoring and the freeze’s strong protection. Armed with more than one layer of defense, you’re taking meaningful steps and your identity is much safer from being compromised again in the future.

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Fraud Alert vs. Credit Freeze: Which option is right for you?

Fraud alerts and credit freezes are both useful tools in combating identity theft. Still, which one you should choose depends on your unique circumstances.

If you’ve been the victim of fraud, placing a fraud alert is a good first step to take. It will notify lenders to be cautious when processing credit applications in your name and give you some peace of mind.

If you have never had issues with someone taking out credit in your name or otherwise gaining access to your credit record, a fraud alert likely won’t make sense.

If, on the other hand, you want to prevent any unauthorized access to your credit report, a credit freeze is a more comprehensive option. It will completely restrict access to your credit report, providing you with more thorough protection.

Conclusion

Fraud alerts and credit freezes are valuable tools for protecting your finances and your identity. They have their advantages and disadvantages, and whether you choose one or the other depends on your situation. Consider the cost, convenience, and level of protection you need before deciding.

Protecting your credit is an essential step to safeguard your finances, so don’t wait until it’s too late!

Frequently Asked Questions

What does it mean to verify your identity with credit reporting agencies?

Verifying your identity with credit reporting agencies is a process that ensures your personal information is correctly associated with your credit history. This is often required when you request credit reports, place a freeze or alert on your credit, or dispute information on your credit report.

How can I protect myself from identity thieves?

One of the most robust protections against identity thieves is a credit freeze. A credit freeze restricts access to your credit report, halting any potential fraudulent attempts to open new credit accounts in your name. Fraud alerts also play a role by requiring creditors to verify your identity before extending credit.

How can active duty service members protect their credit?

Active duty service members can use tools like credit freezes and fraud alerts for protection. Additionally, they are entitled to free credit monitoring and can access their free credit reports more frequently than the general public.

Can I place a credit freeze online?

Yes. A credit freeze can be placed online with each of the three major credit bureaus. Remember, you need to contact each credit bureau separately to place a freeze.

What is an identity theft report?

An identity theft report or affidavid is an official statement that documents the evidence of identity theft. Filing this report with the credit bureaus can enable the placement of an extended fraud alert and aid in the removal of fraudulent information from your credit history.

How many free credit reports am I entitled to each year?

As a consumer, you’re entitled to one free credit report annually from each of the major credit bureaus. However, under certain circumstances like being a victim of identity theft or being on active duty service, you may be eligible for two free credit reports per year.

What’s the difference between a free credit report and free credit monitoring?

A free credit report is a snapshot of your credit history at a point in time, while free credit monitoring is a service that continuously tracks changes to your credit file and alerts you to any suspicious activities.

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Credit Lock vs. Credit Freeze: What’s the Difference?

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Your credit report is a treasure trove of information – if it falls into the wrong hands, it could lead to havoc. 

Given the potential chaos that can come from having a fraudster rack up a bunch of bad debt in your name, putting you deep in debt and even the subject of debt collection lawsuits. It’s hard enough to solve your own debt, let alone someone else’s, so you’d be wise to proactively protect yourself from identity theft. 

You have options to protect your credit, such as placing a credit freeze or a credit lock on your credit report, but which one is right for you? Both can be valuable tools in combating identity theft, but how do they differ? Let’s compare the key features of each so you can make an informed decision about which is right for your situation. 

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The Power of a Credit Lock

The three main credit bureaus, Equifax, Experian, and TransUnion, offer a credit lock as a flexible shield guarding your credit report. Its ease of use is its claim to fame – with a simple click or swipe on the bureaus’ free mobile apps, you effectively lock down your credit. 

However, it’s important to note that a credit lock is not something the bureaus are required to offer and does not have oversight or cohesion from one bureau to the next. Without that oversight, the bureaus aren’t required to play by the same set of rules as a freeze; hence, its features may vary across bureaus. Moreover, a credit lock works like a virtual guardian and may not protect you from offline identity theft, such as someone opening an account in your name through non-digital avenues.

Advantages of a Credit Lock

  • Easily accessible through free mobile apps 
  • It can be quickly locked or unlocked with a click or swipe 
  • It may come with additional features, such as alerts about changes to your credit report 

Drawbacks of a Credit Lock 

  • Not legally mandated 
  • It may not provide the same level of protection as a freeze 
  • It may come with extra fees and unwanted offers for unrelated services

Exploring the Credit Freeze

Credit Freeze

A credit freeze is a preventative measure restricting access to your credit report from lenders, banks, and other creditors. Federal law mandates and oversees the credit freeze. It must be offered for free by the credit bureaus, and it provides a higher level of protection than a lock. 

Learn all about how to place a credit freeze to prevent identity theft.

Like a lock, initiating and lifting the freeze is done online or by phone. However, suppose you want to lift it temporarily for specific purposes, such as applying for a loan. In that case, when initiating the freeze, you may be asked to provide additional information like your address, date of birth, Social Security number, and PIN number.

Advantages of a Credit Freeze

  • Provides a higher level of protection than a lock 
  • Regulated by federal law, so it must be offered for free 
  • Prevents all credit applications from being considered while frozen

Drawbacks of a Credit Freeze 

  • It may take up to three days to lift the freeze 
  • May require additional information for the temporary lift 
  • Must place a separate freeze with each bureau to be fully effective 

Making a choice: Credit Lock vs. Credit Freeze 

Medical Debt in Collections

When deciding which tool is right for you, consider how you plan to use it and if you’re willing to pay for convenience. A credit freeze is free and can provide more protection than a lock, but it comes with the trade-off of more time and effort to initiate or remove. On the other hand, a credit lock is quicker and easier to control but may come with a cost and may not provide the same level of protection or be legally mandated. 

The good news? You can always change your mind and switch from one protective tool to another, or even use both! Regardless of which method you choose, taking proactive steps to protect your credit report can save you time, money, and headaches down the road. 

What to Do if You’re Already a Victim of Identity Theft 

If you’ve already fallen victim to identity theft, it’s important to take immediate action. Act quickly by notifying the proper authorities and credit bureaus and filing a police report, if necessary. You’ll also want to consider placing a fraud alert on your credit reports or a security freeze for added protection. 

A fraud alert is similar to a lock because it warns creditors that you may be the victim of identity theft. It lasts for one year without proof of identity theft, or you can place an extended fraud alert for seven years with an identity theft report, an official statement that documents the evidence of identity theft.

Seek Professional Help to Deal with Identity Theft Debt 

Some cases of identity theft may leave you with unresolved debt. Navigating the aftermath of identity theft can be overwhelming, especially when fraudulent debts are involved. When that’s the case, seeking professional assistance is essential to ensure your rights are protected so you can manage the situation efficiently. 

Our law firm has a dedicated team of attorneys familiar with identity theft and dealing with the debt left in its wake. With our expert guidance, we’ll help you dispute fraudulent debts, liaise with creditors, and take necessary legal steps to restore your reputation. 

Don’t let identity theft take control of your financial health. Contact us today, and let’s begin the journey to reclaim your financial standing. You’re not alone in this fight – we’re here to help you every step of the way.

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Do This Before Hiring an Attorney to Fight an LVNV Lawsuit

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When LVNV Funding, LLC files a debt collection lawsuit against you, your top priority has to become understanding your options and deciding what action to take. You’re wise to seek legal advice from an experienced attorney who understands the complexities of these cases, but before you do, you can take some smart actions to help your case.

Who Is LVNV Funding?

LVNV Funding, LLC is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. Once LVNV Funding, LLC has purchased a debt, they (or their collecting arm, Resurgent Capital Services) try to collect on the debt owed by sending letters, making phone calls, and filing a debt lawsuit. Their goal is to collect on those debts to earn a profit.

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Read up on Your Rights

If you’re facing a lawsuit from LVNV Funding, you’ll want to become informed about your rights and the state’s laws governing debt collection, as each state may have state-level debt collection regulations. As you dig into consumer protection laws, you may discover ways to defend against debt buyer lawsuits. Our law firm offers various ways to defend an LVNV Funding lawsuit.

Begin by reading the article Settling Debt with LVNV Funding to better understand the company’s debt collection practices, and then look at the Credit Card Lawsuit page to learn about your rights in debt collection.

By arming yourself with knowledge, you can know where to focus your efforts and make the best decisions for defending a lawsuit from LVNV.

Laws to Know- Fair Debt Collections Practices Act (FDCPA)

The Fair Debt Collections Practices Act (FDCPA) is a federal law that protects your rights from debt collectors. The FDCPA states that all creditors must follow specific rules when collecting a debt, and LVNV Funding is no exception.

For example, the FDCPA prohibits debt collectors from harassing or abusing you and requires them to provide accurate information about your debt. The law also states that creditors cannot make false statements or threaten legal action if they do not intend to sue.

FDCPA Fair Debt Collection Practices Act - Inscription on Green Keyboard Key.

FDCPA Example #1: What Debt Collectors Can’t Say

Debt collectors are not allowed to use profane language or make threats about things like wage garnishment or property seizure that they can’t do or don’t intend to do. They also cannot represent themselves as attorneys if they are not an attorney. They cannot misrepresent that they plan to take legal action unless they have the capacity and intention to do so.

FDCPA Example #2: What Debt Collection Agencies Must Do

Debt collection agencies must provide you with a written notice that identifies the creditor, the amount of money owed, and instructions on how to dispute the debt. The FDCPA also requires that all debt collectors provide written verification of the debt if it is requested shortly after making initial contact with the debtor.

Laws to Know- Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that helps protect consumers’ credit. This law states that creditors must report accurate and up-to-date information to the credit bureaus, and debt buyers are no exception.

For example, under the FCRA, if you dispute an account or item on your credit report, the debt buyer must investigate your dispute and provide the credit bureaus with updated information if there was a mistake.

FCRA Example #1: What a Debt Collector Must Report

A debt collector if they report anything to the credit bureaus, must list the correct balance of the debt, and indicate whether payments are being made on the account. All information reported must be accurate and verifiable.

FCRA Example #2: What Debt Collectors Can’t Do

Debt collection agencies cannot report false or inaccurate information about your debt, such as an incorrect date when the debt was incurred. They also cannot report on medical bills with balances under $500.

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Gather Documents and Evidence of the Debt

If LVNV Funding has filed a lawsuit against you, the first step should be to gather all documents relating to the debt. Look for any notices or correspondence from them, credit reports that mention the debt, evidence of payments you may have made, and any debt collection letters you have received on the account. If you’ve received a debt collection summons or subpoena, make sure that you keep these documents in a safe place. You should also ensure you have all your financial statements, original contracts for the debts in question, and/or proof of payment.

Even though you may have stopped making payments some time ago, there may still be a valid counter-defense or argument to defend the lawsuit. For instance, A debt collection letter you received six months ago from Resurgent Capital Services might not seem helpful, but it could potentially contain violations of the Fair Debt Collection Practices Act (FDCPA).

Debt buyers and collectors, including LVNV Funding, are bound by specific legal requirements when communicating with debtors. Beyond that, LVNV may be held responsible for the actions of Resurgent Capital Services, too. If either company has failed to comply with these rules, it opens up the opportunity for you to explore bringing a counterclaim against them when defending the debt collection lawsuit.

For instance, if the letter failed to disclose that it was a communication from a debt collector or didn’t include a necessary mini-Miranda warning, these could be seen as FDCPA violations. If you still have this letter, consulting with a legal professional to review it for potential violations might be worthwhile. A seemingly standard collection letter could dramatically alter the dynamics of your case, turning what seems like a helpless LVNV debt collection lawsuit into a scenario where you can present a valid counterclaim, seek a dismissal of the lawsuit, or turn the table all the way around by making a demand for money damages for their violations.

Keep Records of Debt Collection Agency Communications

Once a lawsuit has been filed, maintaining records of all communication between you and the debt collector or creditor should be a top priority.

Documents to Gather

As you put your paperwork together, consider putting all written correspondence in an organized file with receipts of payments you may have made. Top-notch organization will be essential in providing evidence to back up your case and form your defense against an LVNV Funding lawsuit.

Call Logs

It’s a wise idea to document all phone conversations or other forms of communication with LVNV Funding or the law firm handling the account throughout the lawsuit process, including any discussions related to mediation or settlement negotiations.

Keep a log of dates, details of conversations, names of company representatives, and any other pertinent information. As you build your case, this detailed account of communication could be beneficial in forming your defense against LVNV Funding.

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Consider Seeking Representation

A debt collection lawsuit is a serious legal matter. A summons can quickly become a judgment, leaving you vulnerable to wage garnishment, bank levy, real estate liens, and more in many states, sometimes for decades to come.

Once a lawsuit is filed, acting quickly and decisively is critical. Consider hiring an attorney experienced in defending LVNV Funding debt collection lawsuits before the case progresses to judgment. The legal professionals at National Legal Center can help you understand your legal rights and provide critical insight into the best way to proceed with your defense.

Timing is Important

Once you receive notice that LVNV Funding is suing you, you’ve got limited time to respond to the lawsuit. If you wish to avoid a default judgment, timing is crucial. Timeframes vary by state, but you’ll usually only have 21-30 days after the initial summons is served to file your answer and defend yourself against the lawsuit or reach a settlement agreement. If you don’t respond promptly, you could end up with a default judgment, making it more costly and challenging to resolve the debt. On the other hand, a knowledgeable attorney might determine that your best bet is to negotiate a settlement out of court, encouraging that the time and expense of defending the lawsuit be put toward the resolution of the debt instead of defending the suit.

Work with a Law Firm Focusing on Debt Collection Defense & Resolution

It’s essential to seek the guidance of an experienced attorney specializing in debt collection defense. A good lawyer can advise you on all aspects of the case, including your options and how best to proceed.

At National Legal, we have extensive experience dealing with LVNV Funding lawsuits. Our knowledgeable attorneys and legal professionals can help you explore the best options to defend an LVNV lawsuit.

Financial situations are often complex and unpredictable, so we work hard to create customized solutions for each one of our clients. We also provide a variety of services designed to help protect your rights, challenge creditors, and negotiate a reasonable settlement agreement in your best interests.

Contact National Legal Center for a:

  1. Free consultation;
  2. Free review of your credit report;
  3. Free plan of action for any collections account.

No matter what stage of the debt collection process you’re in, we want to help. Contact us today to begin building a defense for your LVNV Funding lawsuit.

Schedule a Free Debt Consultation with National Legal Center

Complete this form to schedule your free consultation.

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P.O. Box 835
Candia, NH 03034

Call Us

SUPPORT: 800-728-5285
FAX: 866-526-1602

GET A FREE CREDIT & DEBT ANALYSIS
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The Law Office of Fox, Kohler & Associates, PLLC | dba National Legal Center aka NLC | employs one or more licensed attorneys in:

AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, IL, IN, KY, LA, MA, MD, ME, MI, MN, MO, NH, NJ, NY, OH, OK, PA, RI, SC, TN, TX, VA, VT, WI

National Legal Center is a tradename of the Law Offices of Fox, Kohler & Associates, PLLC, a NH law firm, PO Box 835, Candia, NH 03034. Rosanna Fox is admitted to practice law in NH, Arthur Kohler is admitted in MA. Results may vary based on the circumstances of your case. Not available in all states. This is Attorney Advertising Material and is not intended as legal advice.