A Reaffirmation Agreement is typically used in the bankruptcy process when you file for bankruptcy and you want to keep a house or a car. The Reaffirmation Agreement keeps you liable on the mortgage or the car loan even after the bankruptcy process.
In September of 2016, TransUnion found that consumers could be affected by 25 basis points in the federal interest rate hike, which is .25%. Of credit-active consumers, 68% of them would face a change in their monthly payments. If you have a variable rate product, you could face a payment shock. You may have a variable rate in your credit cards, home equity line of credit, and personal loans.
Credit bureaus gather your credit information and make credit reports. They come up with a credit score based on this information. The credit bureaus get their information from credit card companies, car loan companies, mortgage companies and other places. The main 3 credit bureaus are Experian, TransUnion and Equifax.
In August of 2016, the Consumer Financial Protection Bureau took action against the bank Wells Fargo. Education Financial Services is a division of Wells Fargo that manages student loans. Some of the things that Wells Fargo did to hurt student loan borrowers: applied payments across several loans in a way that raised fees for borrowers, not letting the borrowers know how to make partial payments to pay off loans, charging illegal late fees, and not correcting negative information to credit bureaus.
In August of 2016, the Consumer Financial Protection Bureau ordered the Bank of Omaha to pay $32.25 million for illegal credit card practices. The bank promoted debt cancellation products and credit monitoring products. The Bank made it hard for people to get the debt cancellations. Many times people did not get the credit monitoring they paid for.
Installment loans can help you improve your credit score if they are used properly. The applications for the loans are usually short and fast. Make sure to pay the loan back. Make sure that the loan is for a dollar amount that you can afford. Also, the interest rate should not be high.
If a Plaintiff sues you in court for a dollar amount and you don’t show up to court or file any documents with the court, a default judgment can be entered against you. This means you could owe money to the Plaintiff even if you never participated in the case. After a default judgment is entered, the Plaintiff can then try to garnish your paycheck or take your non-exempt assets.
In June of 2016, the Federal Trade Commission made it illegal for telemarketers to ask for money through money transfers from places like Western Union and MoneyGram. Telemarketers also cannot ask for PIN’s from cash re-load cards. Telemarketers also cannot call and ask for your bank account information to do a remote check that you never see or sign.
The Federal Trade Commission recently charged a Singapore based mobile advertising company with illegally tracking consumers’ locations without their permission. The company was tracking people’s locations even when people turned off their location notices. The company was even tracking the locations of children. The consumers did not consent to this tracking. The company has to delete all of the information it collected on children, in addition to paying fines.
The Consumer Financial Protection Bureau recently unveiled a shopping sheet that people can use when they are getting a car loan. The sheet will help you to figure out how much you pay in taxes, titles and fees. The sheet will also help to figure out how much you need to borrow, taking into account the down payment and the trade-in value of another vehicle. You can take this 2 page form with you when you get your car loan and “Know Before You Owe.” The name of the sheet is the CFPB Auto Loan Shopping Sheet.