Chapter 9 Flashcards
a new loan arrangement that allows you to make reduced payments, usually on a temporary basis
loan modification
failure to pay debts as required by agreement or by law
credit delinquency
the act of taking an asset used as collateral and selling it to pay the debt
repossession
the legal process of taking possession of the house (property) when the borrower does not make mortgage payments as agreed
foreclosure
a legal process that allows part of an employee’s paycheck to be withheld for payment of a debt
garnishment
the process of informing a credit company of an error on your bill
disputing a charge
records that support your claim
documentation
a letter written to inform a credit company of an incorrect charge on your account
dispute letter
a method of settling a dispute using a neutral third party
alternative dispute resolution (ADR)
intentionally using someone’s credit account to steal money or goods
credit card fraud
using someone’s personal information without his or her permission to commit fraud or other crimes
Identity theft
a scam in which a company claims to be able to “fix” your poor credit record and give you a clean credit history-for a price
credit repair
a legal procedure to relieve a person of excessive debt
bankruptcy
the abuse of bankruptcy laws in a way that favors the debtor and defrauds creditors
bankruptcy fraud
the forfeiture of an individual’s assets in exchange for the discharge of debts
Chapter 7 bankruptcy
a court order that pardons the debtor from having to pay debts
exemption
a repayment plan for some of an individual’s debt
Chapter 13 bankruptcy
a reorganization form of bankruptcy for businesses that allows them to retain possession of their assets and continue operating under court supervision as they repay their restructured debts
Chapter 11 bankruptcy
a service to help consumers manage credit and avoid bankruptcy
credit counseling
a type of debt relief service in which a company negotiates with your creditors on your behalf to reduce the amount of debt you owe
debt settlement program
the process of getting one loan with a single monthly payment to pay off all of your debts
debt consolidation
a second mortgage or debt secured with the equity in your home
equity loan
the process of freeing or state of being free from an obligation or liability imposed on others
exemption
the process of helping consumers resolve problems
consumer advocacy
a law that regulates the collection, dis-semination, and use of consumer credit information
Fair Credit Reporting Act
a law that requires lenders to fully inform consumers about the cost of credit in a loan or credit agreement
Truth in Lending Act
a law that sets requirements for resolving billing disputes
Fair Credit Billing Act
a law that protects consumers from abusive collection practices by creditors and collection agencies
Fair Debt Collection Practices Act
a law that protects consumers from discrimination in the granting or denying of credit
Equal Credit Opportunity Act
a comprehensive reform to credit card law to establish fair practices related to credit
Credit Card Accountability Responsibility and Disclosure Act
property that a debtor in bankruptcy does not have to forfeit to pay off creditors
exemption
