Q. What information is included in my credit record?
A. Your credit record contains a wide array of personal and confidential information. It may contain any or all of the following:
- Identifying information - name, current and prior addresses, social security number, employment history, and date of birth.
- History of paying habits with credit grantors, retail stores, banks, finance companies, mortgage companies, including collection or charged-off accounts
- Public record items - tax liens, judgments, bankruptcy
- Inquiries-each time a credit grantor or other authorized party requests a copy of your record.
Q. How do I get a copy of my credit record?
A. To get a copy of your credit report, contact the following;
Q. I filed for bankruptcy a few years ago. Now I am unable to get credit. How long can a bankruptcy stay on my credit report?
A. By law, bankruptcies may be reported for up to 10 years from date of discharge.
Q. There is incorrect information on my credit report. How do I get it corrected?
A. Contact the appropriate repository;
Q. What if I can't pay my bills?
A. If you find you cannot make your payments, contact your credit granters immediately. They are more likely to understand if you contact them before your payment is overdue. Try to work out a modified payment plan with your creditors that reduce your payment to a more manageable level. Do not wait until your account is turned over to a debt collector. At this point the creditor has given up on you.
Q. Should I use a credit counseling or debt consolidation company?
A. Before signing up with such a business, make sure you understand what services the business provides and at what cost. Do not rely on oral promises that do not appear in your contract. Some consumers who turn to such businesses may encounter additional problems. For example, debt consolidation or other loans may have high hidden costs and may require your home as collateral. Also, credit grantors are NOT obligated to agree to the terms set-up by consumer counseling programs.
Q. Should I file for bankruptcy?
A. Bankruptcy should be considered only as a last resort. Bankruptcy can ruin your chances for a future loan to buy a house or car, to send your child to college, or to take advantage of a business opportunity. If you do file bankruptcy, it will be reported on your credit record.
While it is true that consumer bankruptcy law has changed and is now more lenient for the debtor, bankruptcy is not a "quick fix" for your financial problems. Newspapers carry advertisements promoting bankruptcy as a way to be "free from debt" or "improve your credit rating". No matter what anyone tells you, even if he is an attorney, bankruptcy will not improve your credit rating. Businesses that advertise bankruptcy-related services may not tell you all that is involved or if other alternatives exist. There are benefits to choosing an alternative to bankruptcy. Consider the choices before consulting an attorney. It's your future.
Q. What do I do if a debt collector calls me?
A. Stay calm and remember, debt collectors are trained to solve payment problems. Be honest with them about your ability or inability to pay right away. Let him or her work with you to establish a reasonable payment plan.
Q. What do I do if I am divorced?
A. Divorce does not stop your obligations to pay a debt, no matter what the divorce decree states. You should close any accounts you and your ex-spouse had together. These will remain on your credit record. If you need credit, open new accounts in your name only.
Q. My credit record isn't the best, should I use a "credit repair" service?
A. Don't be misled by advertisements that promise to "repair" or "clean up" your credit record. In fact, many of these promises could be illegal. Many
firms advertise getting an Employee Identification Number and using it as a Social Security Number. This is illegal and you would be held liable if you do this. There are only two things that can improve your credit record: 1) prompt payment on accounts and 2) time. Adverse information may be reported for up to 7
years.
Q. What are some good guidelines to stay out of debt?
A. The best way to avoid excessive debt is to have good money management policies at home. Know exactly how much your take home pay is each month. Try to limit your credit obligations to 20 percent of your monthly take home, after deducting your rent or mortgage.
When you shop, know exactly how much you can afford to add to your monthly credit payments. If you must borrow money to pay off bills, shop around for the best rate and credit terms. Know exactly what you are signing before you write your name on the contract. Finally, save part of your paycheck every month and build up a cash reserve for emergencies or to take advantage of special offers.
Q. How can I reach CBS?
A. Click here to Contact Us.
Q. How long has
CBS been in business?
A. CBS has been in business since 1976.
Q. Is
CBS a member of the ACA International (formerly known as American
Collectors Association)?
A. Yes. Collection Bureau
Services, Inc. has been a member of the ACA International since
1976.
Q. What is CBS's recovery rate?
A. Recovery rates vary depending on different criteria
including the age of the account, the geographical location of the
consumer and the size of the account. CBS has competitive recovery
rates. A CBS rep would be glad to provide you with some recovery
percentages from current CBS customers in your category. Contact
Us.
Q. When should accounts be placed for collection?
A. The simple rule of thumb is: the sooner the account is placed for collection, the higher the recovery rate. Obviously, accounts should not be placed at 30 days past due, but a careful analysis of in-house activities usually reveals that payments received from in-house efforts drop off dramatically just after the accounts reach 90 days past due.
Q. How can I place accounts with CBS for collection?
A. Placing accounts with Collection Bureau Services can be done several different ways:
Q.
How can I locate someone whose mail is being returned?
A. Prior to placing the account for collection,
CBS clients can use our "Skip Trace" service. Accounts are matched against credit bureau files and postal change of address files for a small fee per account
($5.00). After a new address is obtained, you may continue to work the account in-house or place it for collection.
Q. Why does CBS recover so much more money than traditional contingency agencies?
A. Two reasons. First, one of the keys to recovering delinquent accounts is to refer them to the collection agency earlier. As time passes, people move, get sick, lose their jobs, file bankruptcy, etc. Many of these events make an account more difficult, and sometimes impossible, to collect. When creditors are faced with the possibility of losing 30, 40 or even 50% of the collected money to the collection agency they naturally wait to place accounts for collection. According to the ACA International (formerly
known as American Collectors Association), the average collection account is placed when it is nearly eight months past due! Collection Bureau
Service's low flat fee allows creditors to place accounts earlier on -- as early as 60 days past due -- when they are more recoverable.
The second factor that affects how much a collection agency will recover has to do with how hard they work on each particular account. When agencies are working on a contingency fee basis, they aim to maximize their bottom line -- not yours. Some agencies will work only the larger balances or the fresher balances. Other agencies may take all accounts, but really only concentrate on the local ones that keep their overhead low. When accounts are placed with Collection Bureau
Services each account is worked systematically and thoroughly regardless of its age, size or location.
Q. Can CBS collect debts for my type of business?
A. All businesses are different and unique in one way or another. But long experience has taught us that there is little difference between a debtor who is not paying one business and a debtor who is not paying some other business. Collection Bureau
Services is currently successfully collecting for over 1,000
businesses.
