October 1999 Newsletter

Legal Update

Introducing our new Legal Collector

We have created a new position at the Ann Arbor Credit Bureau to specialize in the legal area of collections. Kim McGhee has been hired as a collection paralegal. She previously worked for the Department of Defense in Debt collections and Fraud for the Office of Counsel in Battle Creek, Michigan. The main job responsibilities were dealing with individuals, companies, or financial institutions about bidders who defaulted (usually nonpayment) and providing legal assistance to others in the office. Kim recently graduated with a Bachelor's degree from Siena Heights University. Here are a few words from Kim about what she will be doing:

As a legal collector, my job consists of many tasks that are connected with the collections process, as well as working directly with our attorney's staff. Legal pursuit begins when all other collection efforts have been exhausted. The steps taken vary greatly depending on the situation, client, and debtor. One of the most critical steps is communication with the client. This includes obtaining the necessary documents with signatures, explanation of the services rendered, itemization of the balance, and of course, suit authorization. There are many factors in deciding if an account will benefit from legal action. Essential information that is required to provide a successful collection includes reviewing the credit file, confirming the residential address and social security number, locating and verifying the place of employment, and searching for other available sources of income. If no employment or assets are found, it is then possible to suggest a tax garnishment.

If legal action is pursued and required to collect on an account, a judgment is a great tool for collecting a debt. This will remain on a credit report for ten years from the date of judgment. The first step to obtaining a judgment is serving notification to the debtor. Wage and/or tax refund garnishments take a little more detail and time, but often times are the most successful in collecting for our client. Continuous follow-ups on the status of accounts are crucial. Many factors must be dealt with and researched in a timely manner to provide the most accurate legal collection activity.

As I settle into this new position it is my goal to successfully collect money for our clients through what is known as the great system of justice! I look forward to working with all of the clients in successfully collecting from the sticklers who just don't want to pay!

Kim McGhee
Legal Collector

Credit Report Repair

his is the second article from guest author Manya D. Otis, Chartered Financial Consultant from Financial Services & Seminars in Jackson, Michigan. She will be discussing the importance of credit reports in our lives.

A copy of our credit report may disclose errors, as well as unfavorable credit information. If a creditor admits information is in error, the credit agency will remove it from you file. However, if you cannot get information you consider erroneous removed, you may place a short statement in your file explaining why you feel the record is inaccurate. The credit bureau must include this statement in any subsequent reports it issues.

If the credit report does not include references from a number of creditors with whom you have a good history, you may request that the credit agency seek information from them.

Much is written about the problem of obtaining credit or clearing a poor credit agency file. Firms want to do business with you and want to extend credit if it appears to be a wise move. Therefore, they want a credit report to reflect good information. It will help you qualify for an appropriate extension of credit, so, if you feel additional information will help, do not hesitate to volunteer it.

Manya D. Otis

Next month: Credit Rating Development.

Protect Your Money from Y2K

While most financial experts assure consumers that their money will be safe in the bank come the year 2000, it pays to take extra precautions. At the very least, any computer glitch may affect your account record or activity. Here are some tips to safe-guard your bank account.

Keep good records of all your banking transactions. Keep deposit slips, ATM receipts, loan payment, and bank statements.

Keep your deposit accounts within the insurance limits. Any amount under $100,000 is fully insured. Amounts over $100,000 held under different types of ownership, like joint accounts, are insured separately up to $100,000. Also, double check with the Federal Deposit Insurance Corp. for information. Call 1-800-934-3342. If you do a lot of banking online, make sure your home computer software is Y2K compliant.

Starting at least a few months before the end of the year, keep all paper records of bank transactions. Don't rely solely on your bank to keep proper books. If you have a credit card that expires on or after January 1, 2000, consider getting a second card that expires in 2001 or later.

Mail bills due in the first weeks of January early, in case there are problems with crediting payments or clearing checks.

Ask your mortgage lender for a loan amortization schedule several months before the end of the year. . . the Federal Trade Commission has suggested sending mortgage and loan payments by certified mail for the months before and after January 1, 2000, as proof of the date the lender received payments.

Check your credit report before the end of the year. And check again after New Year's. Direct deposits and automatic transfers to pay bills should be okay. Consumers should still pay closer attention to automatic transactions before and after January 1.

Y2K SCAMS: Several e-mail warnings making the rounds on the internet tell people to watch out for Y2K scams from con artists posing as bank representatives . . . consumers should heed the California Bankers Association's basic warning: never give out bank account or personal identification numbers to someone you do not know.

While these steps do not guarantee an error free change to the new millennium, it should make the transition a little smoother.

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Ann Arbor Credit Bureau, Inc.
311 N. Main   Ann Arbor, Michigan   48104
800.710.4821     734.665.6173
info@a2cb.com