Chapter 6 vocab Flashcards
A legal procedure for dealing with debt problems of individuals and businesses
Bankruptcy
A private firm that maintains consumer credit data files and provides credit information to authorized user for a fee
Credit bureau
A report on ones credit that includes identifying information, credit cards, late payments, bankruptcies and savings balances
Credit report
Liquidation of the debtors assists in order to repay creditors
Chapter 7 bankruptcy
Income that is available to you for spending or saving
Disposable income
Collector harassment is not legal. Collectors can only call between 8 am and 9 pm
FFDCPA
Requires a credit bureau to remove all inaccuracies within 30 days of notification of such inaccuracies
FFCRA
Someone who tries to steal the identity of another
Fraud
A court ordered attachment that allows a lender to take monies owed directly from a borrowers paycheck
Garnishment
Things one has bought
Necessities
Your total debt each creditor represents
Pro Rata
An updated version of the 1977 Federal Fair Credit Reporting Act
FFCRA
What is the best way to pay debt
With a plan
Federal Debt Collection Practices Act
FFDCPA
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
Foreclosure
Think of the “Repe man”. This Is taking something back for failure to make payments
Repossessions
In a bankruptcy proceeding, a debtor can give up property to the creditor in exchange for a clean slate
Surrender of collateral
Broadly refers to a borrower not being current on his or her payments
Delinquency
Credit bureaus information is removed from your credit report ___ year’s after the last activity on the account, except for a chapter 7 bankruptcy, which status in for ___ years
7
10
What percent of credit reports contain mistakes of some sort and what percent of them contained errors serios enough to result in the denial of credit
79%
25%
What percent of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open
30%
What percent listed the same mortgage or loan twice
20%
How often should you check your credit report
Annually
FFCRA requires a credit bureau to remove all inaccuracies within ___ days of notification of such inaccuracies
30
FFDCPA allows you to demand a creditor cease calling you at ____. You should request this in writing by ____ ____ with return receipt requested
Work
Certified mail
To insist that a creditor stop all contact except to notify you of lawsuit proceedings
Cease and desist letter
When should you use the pro rata plan
When you are unable to pay the minimum payments
Typically, lawsuits for under ____ are filed in general session court
10,000
Before you are sued, you will be served by the local sheriffs department and typically given___ days notice of the court date
10
Gives creditors a “fair share”
Pro rata
I love debt score
FICO score
Using another persons information to obtain goods or services
Identity theft
TransUnion
Credit bureau
Court order allowing a lender to take money directly from the debtors paycheck
Garnishment
Trained salespeople or telemarketers
Collectors
Food, shelter, clothing, transportation
Four walls
