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Glossary of Terms Frequently Encountered in a Debt Settlement Program
THE FAIR DEBT COLLECTION PRACTICES ACT - As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996) To amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
FICO score - A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower's credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.
Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit bureau models are developed from information in consumer credit-bureau reports http://www.mtg-net.com/sfaq/faq/fico.htm
FTC/Federal Trade Commission - a federal body that over sees the act of consumer fraud, misleading advertising, credit cards, or other consumer protection matters as well as antitrust or competition matters. For more information please view the FTC web site at www.ftc.gov
Hardship - difficulties: difficulty or suffering caused by a lack of something, especially money Encarta World Dictionary
Hearing - any proceeding before a judge or other magistrate (such as a hearing officer or court commissioner) without a jury in which evidence and/or argument is presented to determine some issue of fact or both issues of fact and law. While technically a trial with a judge sitting without a jury fits the definition, a hearing usually refers to brief sessions involving a specific question at some time prior to the trial itself, or such specialized proceedings as administrative hearings www.law.com
Income to debt ratio - The amount you owe is relevant only when measured against your income. The more you make the more debt you can afford to take on. Fill in the blanks to get a rough idea of your debt-to-income ratio-and whether it is already higher than is considered manageable on your income.
Your debt-to-income ratio
36% or less: This is a healthy debt load to carry for most people.
37%-42%: Not bad, but start paring debt now before you get in real trouble.
43%-49%: Financial difficulties are probably imminent unless you take immediate action.
50% or more: Get professional help to aggressively reduce debt.
Source: Gerri Detweiler, author of The Ultimate Credit Handbook www.usnews.com/usnews/nycu/money/modebtratio.htm
Insolvency - unable to pay debts; somebody who is unable to pay his or her debts Encarta World Dictionary
Insufficient funds (Settlement offer status) - When a creditor offers a settlement to one of the TDS negotiators and the client does not have sufficient funds to do the settlement at the time it is offered by the creditor, the offer is recorded in our computers with a notation of "Insufficient funds". This is useful in later negotiations with that creditor.
Interest - FINANCE borrowing charge or payment for money use: a charge made for a loan or credit facility, or a payment made by a bank or other financial institution for the use of money deposited in an account - Encarta World Dictionary
Interrogatories - a set of written questions to a party to a lawsuit asked by the opposing party as part of the pre-trial discovery process. These questions must be answered in writing under oath or under penalty of perjury within a specified time (such as 30 days)…www.law.com
Investment - use of money for future profit: the outlay of money, for example, by depositing it in a bank or by buying stock in a company, with the object of making a profit Encarta World Dictionary
Invoice - request for payment: a written record of goods or services provided and the amount charged for them, sent to a customer as a request for payment Encarta World Dictionary
Judgment -
1. LAW verdict: the decision arrived at and pronounced by a court of law
2. LAW obligation resulting from a verdict: an obligation such as a debt that arises as a result of a court's verdict, or a document setting out an obligation of this kind
3. Decision of a judge: the decision reached by one or more judges in a contest Encarta World Dictionary
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