Asset Acceptance's New Required "We Will Not Sue" Disclosure
From: credit.about.com
"Asset Acceptance, one of the biggest and most-complained about debt collectors/debt purchasers, recently agreed to a $2.5 million settlement to an FTC lawsuit. Asset Acceptance faced a slew of allegations including collecting debts from identity theft victims, providing false information to the credit bureaus, pursuing debts after the statute of limitations expired, and tricking consumers into restarting the statute of limitations.
As part of the settlement, Asset Acceptance is required to investigate consumer disputes over debt validity and notify consumers before placing negative information on their credit reports. Both are already part of existing law, the FDCPA and FCRA respectively.
Asset Acceptance agreed not to sue debtors over debts that have passed the statute of limitations and to inform debtors when their debt debt may be "too old to be legally enforceable that it will not sue to collect on that debt." In a statement to Business Week, an Asset Acceptance representative says they'll use the phrasing, "Given the age of the debt we will not sue you." If it's used correctly, the new phrasing will eliminate many questions over whether the statute of limitations on a debt has expired.
Asset Acceptance's settlement is the second-largest FTC settlement with a debt collector since a settlement with West Asset Management for $2.8 million in March 2011. West Asset Management was accused of repeatedly calling consumers even about debts that weren't theirs, informing third-parties of debts, ignoring written requests to stop communication about debts, withdrawing money from consumer accounts without permission, and falsely claiming consumers would be sued over the debts.
Complaining to the FTC may seem useless, but its consumer complains that drive the FTC to crackdown on debt collectors and other business that violate consumer rights. Complain to FTC at FTCComplaintAssistant.gov or by calling 1-877-FTC-HELP. Your State Attorney General is another place to lodge complaints against debt collectors and other businesses.
Source: Federal Trade Commssion
More on Dealing With Debt Collectors
Asset Acceptance's New Required "We Will Not Sue" Disclosure originally appeared on About.com Credit / Debt Management on Monday, February 6th, 2012 at 14:13:55. Permalink | Comment | Email this "
Your Credit Card Payment Amount
From: credit.about.com
"
Every month around this time, many people sit down with their bills and their checkbook (or their computer or iPad) and write the checks to pay the bills. With some bills, you pay the exact amount due, no questions. But with credit cards, you may wonder the best amount to pay.
Full payment is the best, but when you can't pay the full balance, you'll have to pay another amount, preferably higher than the minimum. Read How to Decide Your Monthly Credit Card Payment for a few guidelines. Your Credit Card Payment Amount originally appeared on About.com Credit / Debt Management on Saturday, February 4th, 2012 at 00:01:35. Permalink | Comment | Email this "
You May Owe Taxes on Settled Debts
From: credit.about.com
"Negotiating a lower payment is one way to pay off your credit card debt at a lower cost. When the lender agrees to settle your debt for a lower amount, say $500 on a $1,000 debt, part of the debt is cancelled. It's good news for you in the short run, but you could end up paying taxes on the cancelled amount.
The Internal Revenue Service requires businesses to report cancelled debts. Those businesses must also send you a form letting you know the debt was cancelled. When you prepare your taxes for that year, you're required to include the cancelled amount. That could increase your tax liability. Learn more about cancelled debts.
Follow On Twitter | Like On Facebook You May Owe Taxes on Settled Debts originally appeared on About.com Credit / Debt Management on Thursday, February 2nd, 2012 at 00:01:50. Permalink | Comment | Email this "
Some Bank Customers Will Owe Taxes on Airline Miles
From: credit.about.com
" Going forward, you might think twice about accepting an award or prize when you open up a financial account because you could owe taxes on the award. This year, Citibank is sending out 1099-MISC forms for mileage bonuses awarded to new checking account customers in 2011. According to the LA Times, the IRS agrees that this is part of the tax law.
Businesses are required to send a 1099-MISC form when they've paid a person more than $600 a year in prizes and awards among other types of payments. Citibank is valuing the miles at 2.5 cents each, so 25,000 miles is worth $625. At the 25% tax bracket, which applies to citizens with taxable income between $34,500 and $83,600, you'd owe $156 on the bonus.
Fortunately, this part of the tax law only applies to a benefit received as part of opening a new financial account, not miles rewarded as part of a frequent flier program.
More Credit & Debt Related Tax Issues:
Some Bank Customers Will Owe Taxes on Airline Miles originally appeared on About.com Credit / Debt Management on Wednesday, February 1st, 2012 at 11:07:41. Permalink | Comment | Email this "
Avoid Big Credit Repair Mistakes
From: credit.about.com
"Don't ruin your credit repair progress by making big mistakes, like falling for a credit repair scam or by focusing on things that don't influence your credit score. Perhaps the biggest mistake of all is ignoring your credit problems instead of taking action.
Here's a list of 10 credit repair mistakes you should avoid.
What You Should to Do Repair Your Credit:
Avoid Big Credit Repair Mistakes originally appeared on About.com Credit / Debt Management on Monday, January 30th, 2012 at 00:01:12. Permalink | Comment | Email this "
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