Credit card debt has affected many Ohio residents, and a common concern is whether proof of the debt can be requested. According to the Fair Debt Collection Practices Act, consumers have the legal right to request verification provided that the request is made within 30 days of receiving the notice. If a letter disputing the debt is sent, the collection agency must halt their collection efforts until they provide the verification the consumer requested.
New credit score model benefits people with medical debt
FICO scores help lenders assess the risk of lending to individual borrowers. However, according to a 2014 report from the U.S. Consumer Financial Protection Bureau, people who have mostly medical debt are penalized too severely compared to those with unpaid credit card bills and other kinds of debt. This could change as FICO will institute a new scoring system this fall that penalizes medical bills less than before.
When discharge occurs in an Ohio bankruptcy case
Discharge can signal a point of major relief for an individual who has dealt with major life events that have resulted in unexpected financial stress. In many cases, creditors have used ruthless tactics in an effort to obtain payments, making personal bankruptcy a choice that is expected to stop harassment. Discharge may be viewed with great anticipation in this case, and a consumer can expect this to occur approximately four months after a Chapter 7 bankruptcy filing is completed.
How to pay off $50,000 in debt faster
Moving balances from one credit card to another and taking advantage of interest-only payment options can be financially damaging to people throughout Ohio. As the length of time it takes to pay a debt back extends, the overall interest charges will continue to grow. Paying the minimum due on credit accounts is ineffective because the amount consumers are required to pay each month falls along with the balance owed. The result is that it can take decades to wind up paying off the debts if people rely solely on minimum payments.
