Category: Debt

Credit Card Debt in NC

4/2/2018

Updated 5/8/2019

With credit beginning to flow again with the end of the great recession credit card balances continue to rise for American households. The great trap of credit cards is the low introductory offer combined with easy balance transfers allowing people to acquire more debt than they could ever hope to repay often leading to bankruptcy. In the past the fine print outlining all the potential risks was at least mailed with the application. Today the application and approval process is simply a few clicks on a computer or smartphone constituting an electronic signature.

Although registration of arbitration awards as judgments seems to have ended in North Carolina there are many questions surrounding credit card debt explored herein including debt defense and debt settlement.

Can I be sued for credit card debt in NC?

Yes- Credit cards are legally allowed to sue when the borrower is in default. For some reason many people think all creditors can do is put a negative mark on a borrower’s credit report. The bottom line is this- If banks could not sue for credit card debt they would stop issuing cards. Some of the main law firms that represent banks and debt buyers for credit cards lawsuits in North Carolina are listed below. These law firms generally represent the plaintiffs listed and do not actually own the debt.

Brock and Scott- Wells Fargo
Sessoms and Rogers- FIA Card Services, Portfolio Recovery Associates, Unifund CCR Partners
Bernhardt and Strawser- Bank of America, Citibank
Smith Debman- Discover Bank, BB&T, Midland Funding
RAS LaVrar, LLC- Capital One
Dominion Law Associates- Target National Bank

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Judgments on Credit Reports

6/3/2017

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Starting July 1, 2017 the big three credit reporting agencies will stop reporting civil judgments or tax liens in many cases. Equifax, Experian, and TransUnion will begin removing tax lien and civil judgment data from reports if the information does not provide details on consumers such as a person’s name, address, Social Security number, or date of birth. This policy change is part of the National Consumer Assistance Plan created as a result of settlement with numerous State Attorney Generals in an effort to improve credit reporting accuracy. Oversight from newly created Consumer Financial Protection Bureau likely also played a role as well.

Many States like North Carolina do not typically include Social Security numbers or birth date information as part of the public record for civil judgments. As judgments in NC are good for ten (10) years and can be renewed for an additional 10 year period this is significant news. Removal of judgment reporting means some consumers may experience a boost to their credit score in the coming month as negative items are removed from their credit report. As fixing credit report errors is often a nightmare for consumers this is a welcome change to the bureaucracy of the credit reporting industry. The Wall Street Journal is estimating this change will improve the credit score of some 12 million individuals in the United States. The expected increase is a modest 20- 40 points.

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How long do items stay on my credit report?

4/16/2016

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The Fair Credit Reporting Act (“FCRA”) passed in 1970 regulates credit reporting agencies (“CRA”). Under the act CRA’s have certain obligations to ensure the accuracy of consumer credit information. In determining how long items may stay on a credit report you want to look at 15 U.S.C. 1681c (text below) of the FCRA for the basic reporting rules. If you discover inaccurate information you may contact the Federal Trade Commission for information on your rights and remedies in fixing credit report errors.

How long do late payments stay on a credit report?

If an unpaid account has not been charged off, it can remain on the report for seven years from date of delinquency.

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Debt buyers and lawsuit mills

1/9/2016

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Old debts are big business. In fact, some actual judgments currently on the books do not even arise out of legitimate debts at all. Just recently Fredrick J. Hannah & Associates a law firm in Georgia agreed to pay $3.1 million after being sued by the Consumer Protection Financial Bureau (“CPFB”). They were essentially accused of running a collection mill. The lawsuit further alleged the law firm was run like a factory filing cases by the thousands with little review. The CPFB claims one attorney approved 130,000 lawsuits in two years. These lawsuits allegedly involved some of the largest banks including JP Morgan Chase, Bank of America, Discover, and Capital One filed in multiple States including North Carolina.

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Cash for Keys

9/8/2015

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Cash for keys is where a homeowner is paid money to voluntary move out, usually after foreclosure. This is often a last resort for homeowners after a Deed in Lieu or Short Sale was denied. The money is generally paid by the mortgage holder or new owner after the foreclosure sale. Banks are under no obligation to offer you any money to leave and can proceed immediately to eviction after foreclosure. That being said there is no harm in asking your lender if cash for keys is a program they offer. Even if you are told no early in the process you should call back later as policies can change once your loan is transferred to a new department. If you are considering this option then it is almost always best to inquire early rather than wait, although some banks won’t even discuss “cash for keys” until after they know they are stuck with the property when nobody bids at the foreclosure sale.

How much money is paid in cash for keys?

There is no set minimum or maximum payout although the general range is $500-$5,000 depending on the lender. Usually the amount is based on the value of the home. A $500 offer may be for a house worth $100,000 or less whereas a $5,000 offer is usually reserved for houses worth $1 million or more. A typical $250,000 house may warrant an offer of $2,500 or more.

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Credit Card Debt in NC

Can I be sued for credit card debt in NC?

Judgments on Credit Reports

How long do items stay on my credit report?

How long do late payments stay on a credit report?

Debt buyers and lawsuit mills

Cash for Keys

How much money is paid in cash for keys?

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