Monthly Newsletter:

WHY DEBT COLLECTORS CAN NOW TEXT OR DM YOU!

A recent change in rules by the US Consumer Financial Protection Bureau (CFPB) allows debt collectors to contact you by direct message on social networks, email, or text message.

 

No one likes debt collector calls and emails or text messages most certainly will not be welcomed, especially when you have no debts to collect. You could block the number used for text messages, but whether it’s a scam text or a legitimate debt collector, they can always contact you from yet another phone number.

 

There is some good news here… the rules do require debt collectors to provide you a way to opt-out of further messages, whether from email, text message, or direct message. You might have to call or email the debt collector back in order to opt-out as they are not being mandated to have to provide that in text or social networks directly.

 

If you have any questions about this ruling or if THD Credit can be of assistance to you in anyway – call us at 800- 822-7120. We are here to help!

-Erik Kaplan

A Special 50% Discount for You

With the increase in consumer credit complaints – with issues ranging from credit report mistakes to problems related to debt collection, credit cards or mortgages, it is more important than ever to monitor your credit report.

According to the Federal Consumer Program U.S. PIRG, the number of complaints during the pandemic has surged by 86 percent.  In fact, the credit reporting complaints has been driven by nearly double the number of complaints about incorrect information on credit reports.

 

The accuracy of your credit reports is important because lenders determine how much to charge you for a loan or credit card based on a credit score derived from your report. In addition, if you are looking for work, potential employers might decide whether or not to hire you based on your credit report.

 

The best part of my job is helping people, and nothing makes me happier than helping someone qualify for a loan, get lower interest rates, an increased line of credit or a healthier credit standing.

 

If you or one of your clients, friends or family members need help with credit repair, in any way – please email me at erik@thdcreditconsulting.com  We would like to offer 50% off of our fees to anyone we can help during this challenging time.

-Erik Kaplan

What is the difference between a loan modification and a forbearance?

If you are experiencing a financial hardship due to the coronavirus or having difficulty making on time mortgage payments, there are options for you to consider.

 

 

Loan Modification vs. Forbearance

 

Let’s review the differences…

 

 

Loan modifications changes the terms of your secured loans to lower your monthly payments with the end goal of relieving some of the financial pressure.  This option is great for those facing hardship because they’re not dependent on credit score or income and are designed to prevent foreclosure.

 

 

Such modifications can include:

  • Reducing your interest rate
  • Changing a variable interest rate to a fixed one
  • Extending the term length

The downside is that loan modifications can show up on your credit report with a comment code that says something like “paying by modified terms.” However, it’s better to have a loan modification on your report than a foreclosure or missed payments.

 

Mortgage forbearance allows homeowners to pause their mortgage payments while dealing with a short-term crisis. It basically means the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will bring the borrower current on their payments within a certain period of time.

 

As part of the recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act, mortgage accounts in forbearance as a result of COVID-19 cannot be reported negatively to the credit bureaus by lenders. It is also commonly reported that due to COVID-19 lenders are not requiring proof of hardship outside of verbal or written verification from the borrower.

 

 

Before you go into forbearance, make sure you understand what your repayment options are.

 

 

If you have questions about either of these options and/or what is best for you call us at 800- 822-7120. THD Credit is here to help!

-Erik Kaplan

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