Deceptive Radio Ads

Will the lying ever stop? This week I heard another deceptive ad aimed at home owners refinancing. It aired on KIXI Radio in Seattle., but might have been broadcast in other cities, also.

The ad said when you refinance with their company, you “may even get to skip a payment or two.” That is false! Furthermore, it is illegal to state “skip a payment” as a benefit of refinancing, because you do not actually skip a payment, ever.

It can seem like you are skipping a payment, because mortgage payments are made in arears, not in advance. If your refinance closes in August, your first payment will be due October 1st. Does this mean you get to live for free in your house for the month of September? No.

You don’t, in fact, skip the September payment. Your Oct 1 payment covers for September, because mortgages are paid in arears.

If your payoff included a payment due to the day of the month the loan closed, then it might seem like you are skipping two payments. YOU ARE NOT.

You made one payment in the payoff via the closing. You make the next payment after the month is passed. You do not actually get to live in your house free for one month or two months when you refinance. That is deceptive and a violation of mortgage lending law.

I could not locate a phone number on the offending mortgage company’s website, so I sent in an email. At this point, I have received no reply. If I had been inquiring about getting a loan, someone would have replied quickly. Should I report their illegal ad to the Consumer Finance Protection Bureau? What do you think?

I believe I should. After all, I didn’t write Mortgage Ripoffs and Money Savers for nothing.

Crazy Credit Score Penalty: Amounts Owed

We all need to understand the Amounts Owed section on credit scoring, because it makes up a crazy 30% of the credit score!

The points you get under Amounts Owed is almost as much as all your positive credit history and all of your derogatory

See if you can get this credit scenario right:

Three people have identical good credit reports except for each one having one negative item. Which person will have their Amounts Owed (30% of the scoring model) docked the most?

1) Ms. Blue has a $500 Nordstrom card that went unpaid, became a charge-off, and is still has a balance of $500 on a $500 limit.

2) Ms. Green has an unpaid tax lien of $860.

3) Ms. Purple has an unpaid utility bill of $1,000.

Whose credit score got hit the hardest under the Amounts Owed section?

Take your best guess and then let me know by leaving a Comment if you got the answer right.

If you said Ms. Purple because her utility bill has the most money owed, you are wrong.

If you said Ms. Green because a tax lien is serious stuff, you are also wrong.

Ms. Blue is really feeling blue right now, because even though she owes less than her two friends, her credit score got hit the hardest for the $500 maxed out Nordstrom card. How can that be?

The Amounts Owed section applies only to revolving credit. Revolving credit does not have a fixed number of payments, and every time you make a payment, the credit is automatically renewed. Neither a tax lien nor a utility bill are revolving credit. Therefore, the amount you owe on those bills does not affect the super-important Amounts Owed section of your credit score.

When you know how the scoring system works, you are in control of your own credit score. To learn more about credit scoring, pick up a copy of Build and Protect Your Credit Like the Pros here.

Carolyn Warren’s Personal Story, Part 2: “Two Surprises Come My Way”

I was surprised to receive a phone call from the former Activities Director at the company where I had worked in sales before the company shut down. I had only known her for a short time, and not very well.

“Carolyn, I have a fabulous new job, and I want you to come work with me,” Allison said. She went on to explain she had become a mortgage loan officer.

“No thank you, I don’t know anything about mortgages or loans,” I replied.

“It doesn’t matter! They will completely train you. You aren’t working yet, right? Just come and interview. I know you can do it,” she said.

I was getting desperate for a new job, so I interviewed, took an IQ test and a personality test, and was hired. Allison was right: they trained us new hires and gave us each a personal mentor.

What I grew to love about the mortgage business is that it is all about the numbers. Either the loan makes good financial sense or it doesn’t. That was the easy part; the guidelines and rules are complex. Every customer presented a different and unique scenario, making every day a learning experience.

Many challenges presented themselves, and in those early days, it was always something. There were credit challenges, income challenges, employment challenges, and if the borrower happened to be perfect, then a weird property challenge would pop up, like the appraiser would discover a hidden propane tank in the yard or the underwriter would question the life of the roof. People were crazy, too. Like they would go out and buy a new car before their loan had closed, which made the loan flip from approval to denial.

I used to receive a lot of phone calls from collection companies and attorneys asking if I could do a debt consolidation refinance for one of their debtors who owed money. That gave me valuable experience into what goes on inside the collection offices (which had secret entrances and the collectors used fake names), and how to negotiate settlements.

After working for the direct lender, I went on to being a full-service mortgage broker, then to working in wholesale as an account executive.

All those seemingly dead-end jobs in my past had served a purpose. As a receptionist, I learned telephone skills. As a secretary, I learned organization. My sales jobs taught me about people and how to listen to their needs and provide excellent service. My last job provided me with a contact who invited me into the mortgage industry. It was all a big puzzle that fit together in time.

One day, a friend invited me to attend her church with her. After the service, the pastor led me back to my Savior. It was like the curtain of heaven rolled back and a funnel of love poured down upon me. It was instant and powerful! God’s love washed away years of pain and confusion. Tears of joy ran down my face. My heart felt like it would burst with gladness. The drive home was 40 minutes, and I wept for joy all the way. God did love me. It was marvelous beyond comprehension! What a great surprise it was!

I pray that you may have the power to grasp how wide, how long, how wide, and how deep is the love of Christ. (Taken from Ephesians 3:17-18.)

I should also mention that a new sweet kitty came into our home. I named her Francie and she brought us much joy.

Kitty Francie

Carolyn Warren’s Personal Story, Part I: “I need a better income.”

I lost nearly everything in the space of a week.

My teaching job, my dream house, my marriage: all were gone.

It was never my life plan to be a single mom of two elementary-age kiddos; but here I was, and there was no time to waste.

I found an 800-square foot apartment to rent that was within walking distance of the kids’ school. My son got one of the bedrooms, and my daughter and I shared the other. Our room was too small for two beds, so I became a mama sleeping in a bunkbed.

We desperately needed some joy in our lives, so I adopted a kitty She was so cute and made us laugh every day. We loved her dearly. My daughter named her Vanessa.

Since I needed an income asap, I went to an employment agency. I did not have many marketable skills. At that time, the fee was $1,500 for a minimum wage job, a small fortune. I called my brother three states away and asked for his advice. “Take the job and I will loan you the money for the fee,” he said.

It was a full-time position working as a receptionist for The Southland Corporation. I handled phones and mail. It paid $7.00/hour. By the time afternoon rolled around, I was bored half out of my mind and feeling trapped behind the switchboard. I drank bad coffee to get through the rest of the day.

Fifteen months later when I had completed paying back my brother’s loan, I realized I was not getting ahead, I was barely getting by with nothing extra for my future. I needed a better income. But how?

My best friend suggested going back to college, something she herself was doing. But she wasn’t a mom, and I couldn’t see how I could do both work and school and still devote time to my children. So I did what I thought was the next-best thing.

I applied for a commission-based sales job. I knew nothing about sales, but I figured I could be good at it. The position was for Enrollment Specialist at a local diet and nutrition center. The commission structure sounded lucrative and would be a big boost in pay. I was so enthusiastic in the interview–having recently lost 12 pounds myself — that I got the job. New Year’s was just around the corner and with all the resolutions people make to lose weight, I was sure of having a better life soon.

The sales training was thorough and intense. Nothing less than 100% would satisfy the boss. Anything less than 75% meant you were fired. My sales were 89.9%, which was very good — except for one thing.

I hardly had any appointments. The company had over-estimated their advertising campaign and had over-hired. There were not enough prospects to go around, and we were all basically starving. Since it was commission-only, there was no base pay. My income had plummeted to an unlivable and unsustainable situation. I no longer had enough money to get by.

I was left with no choice but to swallow my pride and visit DSHS. They gave me food stamps for my children’s sake.

I went back to looking for work. A woman I knew was a manager at a retail closing shop. She took pity and hired me. It was a miserable situation. We were under constant pressure to sell a minimum of five items per customer with the cash register keeping stats. The pay was minimal and if we made a misstep, she’d get out a wood ruler and whack our hands. I remember shivering in the back room with a raging fever from influenza, because she did not allow time off for illness. “Come to work or get fired!” she’d say. I couldn’t walk away; I had children to support. I had to find something better. I began interviewing again.

This was before the days of personal computers when jobs were advertised in newspapers. I found another sales job and faxed in my resume, which highlighted my 89.9% closing rate, and that I had won a coat-selling contest at the retail shop.

I have always been a good interviewer. Here is my secret:

I ask the question, “What would be your ideal candidate for this position?”

In response, the interviewer tells me the traits and skills they are looking for. It’s like they have showed me the Answer Book! It was the same technique I’d learned in my sales training: ask the prospect what they want and then build the bridge from the product (or yourself) back to them.

It worked, and I got the job as Sales Consultant for a social and activities club. It was fun and my sales were great. I simply asked the prospects why they needed a better social life and then built the bridge. Then one morning when I arrived at work — it was an upscale office in a downtown high-rise — the company president asked me to step into his office. The other employees were already there.

“Here’s a company sweatshirt,” he said. “Take it and go home. I’ve sold the company to (our biggest competitor).”

Nice for him to make a big profit. Not so nice for any of us. I went back to looking for work and even signed up with another job placement agency, but this time, it wasn’t so easy.

I went out on scads of interviews, but there was always a candidate with a lot more experience than me who got the position, or else it wasn’t a good match. After one interview, the hiring manager told the job placement agency, “She is nice, but there was no chemistry.” It was true. I could not imagine anything more dull than selling their Xerox machines.

In the meantime, I signed up for a size hustle. I knew this was going to be an amazing opportunity. People were making big money and changing their lives, I was told. I was all in! I attended every meeting and followed every instruction to the T. At the end of the year, I wrote out my Profit and Loss Statement. I had earned $34 for the year, selling Amway. I decided not to waste any more time making the upline richer. I felt disappointed and disillusioned, both with work and with my life.

Why hadn’t God given me a job that worked out? I wondered. Why had all of these bad circumstances come my way? Why did I feel so alone?

It was about this time that Vanessa got an illness that three veterinarians could not fix. Vanessa died. I cried and cried. Why should such a beautiful, innocent creature die?

Why was life so hard and filled with sadness? Why didn’t God, who is all-powerful, help out? I got out the phone book and made an appointment to speak with the pastor of a nearby church. I needed some counseling. At the appointed time, I went to the church and walked in. It was so quiet you could reach out and touch the silence. I finally found a secretary in a back office and explained I had come for my appointment. She looked surprised and went to check.

“I’m sorry, the pastor is not here. I think he forgot,” she said. That was all. She said nothing more. I went home.

I prayed and prayed. But there was no answer and nothing came. I continued to interview and continued to lose out to people who had more or better experience. My savings was running out.

I searched for answers and came to the conclusion that even though “God so loved the world,” God did not personally love me. God was not answering my cries for help. Evidently, God was not seeing me. Or maybe he did see me, but I was too big a sinner to deserve an answer. That was probably it.

In my dark hour, I felt like the only one who was a failure in life. I had forgotten that many of God’s most famous people went through hard times. Like the widow of Zarephath with her son who was ready to die of starvation until the prophet Elijah showed up on her doorstep. Like Ruth, who was picking up scraps left behind by the harvesters to barely keep ahead of starvation, before she met her kinsman redeemer. Little did I know that my next job would turn into a long-lasting career in a brand new field that was complex, crazy, stressful, and yet such a blessing that I would fall in love with it, and it would love me right back.

You will suffer for a short time. But after that, God will make everything right. He will make you strong. He will support you and keep you from falling. He is the God who gives all grace. He called you to share in his glory in Christ. That glory will continue forever. All power is his forever and ever. Amen. ~ I Peter 5: 10-11 (ICB translation)

Thank you for reading this snippet of my story. Feel free to leave a comment. You can also reach me here.

Change Your Credit, Change Your Identity

Sunday, my pastor spoke about the blind man, Bartimaeus, who threw off his cloak and called out to Jesus.

In ancient times, beggars — who were blind or physically impaired and unable to work for a living — wore an outer garment that identified them as such. Their coat was literally their identity.

This reminded me that today in the business world, our credit is our identity. Without good credit, we are reduced to “beggar status” and have to take the cast-off loans with high rates and fees.

When we take an expensive loan, we waste money; thus, our finances are further penalized.

People with subprime loans pay more for their cars, more for their insurance premiums, and more for their mortgage loans. How can you get ahead when you’re throwing away money making the rich creditors even richer? It’s time to stop the absurdity!

When Bartimaeus heard Jesus was coming, he jumped up, threw off his coat, and called out to Jesus. He wasn’t going to need that beggar’s coat anymore! He knew Jesus would heal him.

Are you ready to throw off your identity of bad credit? Are you ready to jump up and have a new identity?

Jesus said to Bartimaeus, “Your faith has made you whole.”

Do you have faith that you can change your mistakes of the past, your financial hardship? Do you want a new identity you can be proud of?

There was a time when I stood in line at the food bank because my part-time job at minimum wage was not enough to feed my two kids. Mentally, I never took on the identity of a welfare mom — I knew it was temporary and that I had to get a better job. Three months later, I was off food stamps, and I was on my way upward.

Believe you can make the change, and then take action! Every journey begins with a single step.

P.S. Let me know if you want to hear my story. (At the top you’ll see Leave a Comment.)

Thank you for one of my book readers who sent me this photo.

How to Handle Collector Calls

If you have an account past due more than six months and it has gone into collections, or if the account was charged-off after six months of non-payment and then sold to an attorney or other company, this is an important message for you.

If you receive a phone call regarding payment, do not execute a knee-jerk, emotional reaction by yelling, crying, swearing, or hanging up.

Likewise, do not ignore the call — even if you don’t have funds to pay.

Even worse, don’t send that letter circulating and offered for download on the Internet that demands that the collector cease and desist all contact. That is a huge mistake, and I cannot believe people are putting it out there as a free letter to print and use! Why?

If you send a cease and desist notice, the collector cannot contact you to discuss payment options; therefore, their only recourse is to SUE YOU IN A COURT OF LAW!

The cease and desist letter royally sets you up for a lawsuit.

Instead, be smart and be professional. Handle the collector call in one of these two ways:

  1. Explain in two sentences (no long stories) that you cannot pay at this time (if that is true), and ask them to contact you next month by mail only.

    By allowing them to communicate by mail, you keep a line of communication open other than going to court. And, because you have explained that you have no money to pay, they understand that suing you will not produce payment. Be prepared to show a bank statement to prove what you are saying is true; especially if it is a large sum of money. You don’t want to risk being disbelieved and sued. However, cut off the name, address, and identifying information of the bank and redact the account number, leaving only your name and balance information.

    2. The second option is to negotiate a settlement. It is the rare collector who will not agree to a lower amount so they can get something rather than nothing. Negotiating is both an art and a science. It is nothing to be feared. It is two adults discussing and coming to a business agreement. Keep your tone and language professional, and in so doing, you will be respected.

As part of your negotiation, you want them to agree to remove the negative account from your credit profile when they receive payment. Instructions on how to do this are in Chapters 15 and 16 here. Also in those chapters are actual scripts I used in the past to negotiate settlements for my clients.

It is extremely important that you keep your employment and bank PRIVATE. Never agree to automatic deduction. Never tell them where you work. Maintain control of your privacy as a safeguard against having your account garnished. You don’t need them getting their long, greedy fingers into your grocery or rent money!

If you have no funds to pay and request future communication by mail, do respond to the letters by providing an update on your financial status and ability to pay. The purpose of doing this is to keep yourself out of a lawsuit.

Finally, don’t get personally angry at the man or woman placing the call. They are just doing their job, which is to collect money on a past-due account.

When you purchased the goods or services, I am sure you intended to pay for what you purchased. But then, something went awry that prevented you from being able to keep your contract. Explain that, agree on a settlement, and everyone will be happy to get the account closed and done with.

Worst and Best Banks

Heads up! Is your bank on the list for cheating their customers most often?

I don’t know about you, but I refuse to give my business to a bank that illegally rips off their own clients! Why should I when there are honest, ethical banks in town?

If your bank is on the Worst List, I suggest you scrutinize your bank statement every month for errors and balance it with your own checking log. If you’re happy with them, fair enough; but if you see high fees, double charges, and over-charges, you can take your business elsewhere.


  1. Bank of America has the highest number of complaints for their checking/savings accounts. Their fees, terms and conditions, and policies earn them the title, #1 blood-sucking bank vampire. Even worse, BOA was caught charging overdraft fees for overdrafts caused by their own overdraft fees!!! *
    They also have the most complaints for their mortgage loans. As a mortgage broker myself, I have long refused to do business with wholesale BOA because of their horrid underwriting. I will not put my clients through that angst.
  2. Wells Fargo is #2 for most complains for their bank accounts. In addition, they were caught opening accounts in people’s names without their knowledge or consent. They were fined $185 million for that identity theft scam; and yet, they’re still in business. *


Every bank with top records for customer satisfaction, treating people fairly, and having good pricing was a small or mid-size regional bank. There are literally hundreds of good banks across America. Banks such as Bank of the Ozarks, Cathay Bank, CIBC, First Republic Bank, and UniBank.

When choosing a bank, pay attention to the terms, including monthly fees (many banks offer $0 fees if you keep a certain minimum balance), and see if you can earn interest on the balance. Admittedly, interest is really low right now, so if your balance is high, you might consider opening a Certificate of Deposit or consulting a financial advisor about investing. Overdraft fees should not apply to you — I don’t want anyone reading this to write a bad check, ever!

Financial responsibility includes creating a good credit record and a good banking record.

It is easy to do a Google search of complaints + (bank name) to see what people have to say about a particular bank.

*Source of complaints:

The New Typical Credit Score

A new report has come out that reveals the typical credit score for people buying a home and homeowners refinancing.

Considering the pandemic and the economy, would you guess people’s scores have gone up, down, or stayed about the same?

To provide perspective, during the Great Recession, the typical score for mortgage borrowers fell to 707.

Ready for the answer? Today, that number has risen to 788 — the highest score in the last two decades!

Only 10% of borrowers had scores below 688. What?!!?

This tells me that a lot of good folks who could qualify for a home loan don’t know that they can!

Top tier credit for getting the best interest rate on a FHA loan is 620.


  • Most lenders accept scores down to 600 for a 3.5% down FHA loan.
  • Most lenders accept scores down to 580 for a 5% down FHA loan.
  • A few lenders go all the way down to a 500 score for FHA. This isn’t the norm, so expect to pay a higher interest rate and show a good, stable income.
    Personally, I suggest raising your score to 580 or 600 before applying for a mortgage unless there was one weird circumstance that temporarily docked your score, and you are fully ready to take on homeownership.


If your credit score is lower than what you would like to see, don’t despair! Take control.

First, analyze why your score is low. Do you use too much credit? Was there a one-time hardship that you are now recovering from? Did you make a mistake by co-signing for someone? Or was it something else?

Once you have figured out the WHY, then you can take steps to fix or remedy that. If you aren’t sure of the WHY, shoot me an email explaining and I will address the situation in another post.

Meanwhile, go through Steps 1-5 to clean up bad credit in Chapter 2 of Repair Your Credit Like the Pros.


Chapter 12 tells you the quickest, easiest ways to raise your score.

Chapter 13 reveals how to get an awesome score of 800.

And if you need to negotiate a settlement on a charge-off or collection, don’t you say anything to anyone or pay a cent until you read Chapters 15 and 16.

Medical collections are the least damaging and one of the easiest to get deleted. Chapter 17.

And for people wondering if the whole idea of credit repair is even ethical, see Chapter 25.

When it’s too hot to get outside, it’s a good time to self-educate. God bless you and stay safe in the summer heat! Here in the Pacific NW, we are coming off a historic heatwave. Most houses, including my own, do not have air conditioning, so it has been a time of wearing a cold, wet towel around my neck in the afternoon and sleeping on an air mattress in the basement at night.

Statute of Limitations 2021 for Credit Card Debt

Each state has its own law for how long a credit card company can sue a person for non-payment. This is a good consumer protection, but then we have to ask, which state does the law go by?

Most of the major credit card companies tell you in the contract which state applies to their agreement. Others go by the state the consumer lives in — but not all. So be careful and speak with an attorney in your state if you aren’t sure. (Charts below.)

Three main things to know:

  1. Just because the Statute of Limitations is reached, it doesn’t mean they still can’t contact you to ask for payment. The debt doesn’t magically disappear; it’s just that they cannot force you to pay by going to court.
  2. A collector might still file a lawsuit in an attempt to collect, even past the SOL. If you don’t show up in court to tell the judge the debt is old, you automatically lose and the creditor automatically wins. Therefore, you must never ignore a summons to court.
  3. The Statute of Limitations is different than the date a debt ages off your credit report. A debt past the SOL can remain on your credit report for seven years from the date of first delinquency or last payment or last acknowledgement of the debt.

This chart shows major credit card issuers, which state law they go by for SOL, and the years they can sue in court.

IssuerStateYears credit card debt is collectible in court
American ExpressUtah6
Bank of AmericaNorth Carolina3
CitiSouth Dakota6
Capital OneVirginia*3**
US Bank******
Wells FargoSouth Dakota6
*Capital One says Virginia law rules, unless the cardholder’s state has a longer statute.**5 years if creditor produces signed account agreement and documentation of interest rate and repayment terms.***US Bank’s terms and conditions agreement specifies which state law should apply to arbitration, but not for other matters, such as unpaid debt.

Credit card debt statute of limitations, by state

StateYearsState statuteSource
Alabama3 yearsTitle 6 Ch.2 Sec. 37State law
Alaska3 years9.10.053State law
Arizona6 yearsHB 24121State law
Arkansas5 years4-3-118State law
California4 yearsCode of Civil Procedure S.337State law
Colorado6 yearsColorado Revised Statutes Title 13 S.80-103.5State law 2
Connecticut6 yearsChapter 926 Sec. 52-576State law 3
Washington, D.C.3 years12-301D.C. code 4
Delaware3 yearsTitle 10, Sec. 8106State law
Florida5 years495.11State law
Georgia6 years59-3-24State law
Hawaii6 years657-1State law
Idaho5 years5-216State law
Illinois5 years7Code of Civil Procedure 5/13-205State law
Scroll to 735 ILCS 5/13-205
Indiana6 yearsTitle 34 Art.11, 2-9State law
Iowa5 yearsCh. 614.1.4State law See note.14
Kansas3 years60-512State law
Kentucky5 or 15 years413.120 and 413.090Conflicting state laws 12
Louisiana3 yearsCivil Code Sec. 2 Art. 3494State law
Maine6 years14-205-752State law
Maryland3 yearsSection 5-101State law
Massachusetts6 yearsGeneral Laws Part III Title V Ch. 260-2State law
Michigan6 yearsCh. 600.5807.8State law
Minnesota6 yearsCivil Procedure Ch.541.05State law
Mississippi3 years15-1-29State law
Missouri5 yearsCh. 516-120State law
Montana8 years27-2-202State law
Nebraska4 years25-206State law
Nevada4 years11-190State law
New Hampshire6 years382-A:3-118 (g)State law
New Jersey6 years2A:14-1State law
New Mexico4 years37-1-4State law
New York6 yearsCivil Practice Law & Rules, 2-213State law
North Carolina3 yearsCivil Procedure 1-52.1State law
North Dakota6 years28-01-16State law
Ohio6 yearsCourts – Common Pleas, Ch. 2305.07State law
Oklahoma5 years12-95A(1)State law
Go to Title 12 and click on the link. Open the file and go to Section 12-95.
Oregon6 yearsOregon Revised Statutes, Civil Procedure Ch. 12.080State law
Pennsylvania4 yearsJudicial Procedure 42 Pa. C.S. 5525(a)State law
Rhode Island10 years9-1-13State law
South Carolina3 yearsCode of Laws Title 15 Ch. 3 Sec.530State law 8
South Dakota6 years15-2-13State law
Tennessee6 yearsTitle 28 3-109State law 9
Texas4 yearsCivil Practice and Remedies Code, S.16.004State law
Utah6 years78B-2-30910State law
Vermont6 years9A-3-118State law
Virginia3 years8.01-246State law. See note.13
Washington6 yearsRevised Code of Washington 4.16.040State law
West Virginia10 years55-2-6State law
Wisconsin6 years893.43State law 11
Wyoming8 years1-3-105State law
1On April 12, 2011, the governor signed House Bill 2412 into law. This bill amends Section 12-548 of the state code and makes the statute of limitations for credit card debt six years.
2Clicking on this link takes you to a third-party website. Click “I Agree” to the terms. Click on the Colorado Revised Statutes link on the left column. On the page that appears, type 13-80-103.5 on the search line and hit enter. Scroll down to and click on the link for 13-80-103.5 to go to the section.
3Go to Statutes, then Browse statutes, scroll to Ch. 926, Sec. 52-576.
4 Search by section number.
5 According to the Georgia Department of Law, appeals court cases have found the six-year period for contracts applies to credit card debt. See Phoenix Recovery Group Inc. v. Mehta, 2008.
6 An Illinois appeals court ruled on May 20, 2009, that a credit card agreement did not qualify as a written contract subject to the 10 year statute of limitations.
7 Court decisions have affirmed that card agreements qualify as written contracts with a 10-year statute of limitations. However, the state appeals court ruled in 2011 that the plaintiff must provide the debtor’s actual agreement, not a generic agreement. If the debt collector can’t produce an original credit card agreement, the five-year clock for nonwritten contracts applies, the court ruled. See Gemini v New, 2011.
8 At “Quick Search” section select “Code of Laws” from menu and type “15 3 530” into search window, without dashes; press “Enter.” In search results, select link for “Chapter 3.”
9 Clicking on this link takes you to a third-party website. Click “I Agree” to the terms. On the page that appears, type 28-3-109 on the search line and hit enter. Click on the item for 28-3-109 for “Contracts not otherwise covered.”
10 Utah courts generally apply law of the card issuer’s state.
11 See section 893.43.
12Conflicting state laws and a lack of definitive court ruling make it too hard to say whether Kentucky’s five-year statute or its 15-year statute applies to credit card debts.
13Three-year expiration applies to unwritten contracts; courts may apply five-year clock for written contracts if creditor produces signed account agreement and documentation of repayment terms.
14The 10-year expiration for written contracts could apply if the creditor was able to produce sufficient documentation of the amount of the debt. In practice, however, creditors have only general descriptions of the account, such as the terms and conditions, which fails to meet the standard for a written contract of debt.

One of my book readers was sued for an old debt. Wisely, she contacted a local attorney who accompanied her to court. Not only did the attorney get the case dropped, the attorney then proceeded to file a lawsuit against the creditor for violations of the Fair Debt Collection Practices Act, and my book reader ended up GETTING MONEY from the bad collection company. Ha! That’s what I call justice.

Please check your credit report for accuracy. Please don’t ignore letters from creditors and collectors. And especially, please don’t fail to show up in court which causes you to lose, even if you were in the right!

30 New Letters for Credit Repair Businesses and Entrepreneurs

If you are a credit repair business owner or entrepreneur helping others with credit repair (or a non-profit enterprise), this is especially for you.

Available now: 30 letters to help you take your clients’ dispute process to the next level. Available for business and commercial use.

I have personally written each letter to accomplish 8 criteria:

  1. Sounds like it was written by an individual, not by a business.
  2. Wording must be something that a real person would say.
  3. Grammatical structure must not look like it was professionally written.
  4. Must have a non-business closing.
  5. Cannot have the appearance of a template letter.
  6. Voice of the letter must sound genuine and sincere.
  7. Must be short, one page. Representatives are under pressure to process many letters per hour and don’t want to read long letters. A letter that is too long is in danger of being quickly rejected.
  8. Cannot be part of any other template package.

    For more information, including a list of the 30 letters, please see here.