Debt Collection Law Firm Mel Harris & Assoc.

The check is in the mail on “Monique Sykes et al. v. Harris.” As many as 100,000 individuals could be entitled to damages for default judgments allegedly obtained without serving the defendants with court papers. The suit contends that a law firm (Mel Harris & Associates), its client consumer debt purchaser and a process serving company schemed to obtain thousands of default judgments in state court via bogus service documentation (“sewer service”) and false affidavits. When the consumers failed to appear in court because they did not receive notice of the lawsuits, the defendants obtained default judgments against them. Word is that as of July 16th checks have been mailed.

Statute of Limitations

Before you attempt to negotiate with a creditor, or settle a debt for that matter on your own, make sure you understand the statute of limitations. Collectors only have a certain amount of time to collect on a debt before they can take you to court. Once the statute of limitations expires there really is nothing that a creditor can do to continue to collect. So, be weary when answering your phone or responding to settlement offers if the debt has been outstanding for a number of years. Every state has a different statute of limitations.

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Why Co-Signing a Loan for a Friend Is a Bad Idea for You
By Justin Donald

Co-signing for a personal loan or auto loan can usually do more harm than good for most people. It’s only natural that we would have good intentions and may want to “do the right thing” for a friend or loved-one by sponsoring or co-signing a loan for them.

Let’s first examine what it means to be a co-signer. A co-signer is required when the original potential borrower fails to establish reasonable grounds to a future lender that they themselves should qualify for a loan based upon their own individual merit. Because one is determined to be qualifiable via their credit score it stands to reason that in the absence of a good credit score one would need a co-signer. A co-signer would be someone with a solid credit score based upon a strong positive payment history, along with a good job and steady income.

The difficulty lies in the rationale for co-signing. Co-signing is never a business decision made from keen analysis; instead it’s done based upon raw and pure emotion. Your loved one cries, begs, pleads for your help and argues the case for needing your help based on tugging at your emotional heartstrings. This is never good in business and when making business decisions. And, make no mistake, credit scoring is strictly business. A good credit score can save you thousands of dollars over the years… and conversely, a bad credit score can cost you additional thousands of dollars in the form of unnecessary interest payments and fees.

Co-signing allows your “partner” to piggyback your stronger credit score when applying for a loan because you now become a co-applicant. The lender can now determine the original borrowers credit-worthiness based upon their credit and now your stronger score added.

The problem arises when although your newfound partner makes every intention and effort to pay the loan/note on time; old bad habits creep in and stall those intentions. Bad habits can be in the form of overspending, poor budgeting, lack of stability in their workplace, gambling, etc. Once payments become late, it’s now not only their poor credit score that gets dinged… but more importantly your good score as well. Moreover it is good old reliable you that becomes on the hook for the payments. You essentially are assuming responsibility. So, in conclusion, think long and hard before committing your good score that you presumably worked hard to establish to help another during their unfortunate time of financial distress.

Credit Repair Tips – Closing Your Accounts Will Absolutely Impact Your Credit Score

Don’t be afraid to settle and close your accounts so that you can be in a better financial situation in the future.
Credit is repairable. It’s important for consumers to understand that concept. Too many times we will hear that prospective clients refuse to enter into a settlement arrangement with a creditor for fear of negative implications to their credit score. Yes, that three digit credit score is often equally as cherished as your beloved vehicle, pooch, or other prized possession. So, hurting your score by entering into a settlement arrangement with a creditor is understandably a hard decision. Well, lets look at the bright side.

Settling with a creditor happens when arguably you are in not the best financial position. Meaning; you might be struggling at this time of your life… which is already forcing you to have a difficult time meeting your payment obligations. Perhaps you may have already been delinquent on your payments in the past… perhaps you are indeed meeting your minimum payments on time, but are near the limit on cards; which have now been rendered virtually unusable.

Often, your credit score will already reflect the negative nature of how and when the bills are being paid. So, why settle? Settling for less than the entire balance with a creditor may provide you with that fresh start in life that you so desperately need. Settling will afford you to pay back significantly less than what you might’ve originally borrowed, purchased, and spent. Settling will allow you the possibility of forever eliminating your credit card debt in a much shorter time period than had you continued to voraciously spend, spend, spend.

Finally, though your sacred three digit friend may suffer some unfortunate negative consequences… once you get back on your feet and get your finances in order your credit will begin the slow and arduous task of coming back to life. Time especially heals most credit wounds, so fear not. Taking a step backwards to take three steps forward with regard to fixing your financial future and ultimately your credit score should be the top priority.

Closing your accounts and settling with your creditors will help you to have mextra income that could not have foreseen prior to settling. Closing and settling your accounts forever eliminates all of that interest that you would have otherwise been paying for possibly many years to come. As the saying goes, “the only thing to fear is fear itself.” Get out of debt once and for all.