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The keyword you clicked or searched is collections Welcome to Collections Agency 123We here at Collections Agency 123 would like to welcome you to our home on the web.
We are a full service collection firm. If you have any questions and would like to contact us, please go to our contact page. You can find the link to our contact page along the top navigation bar of this page.
Whatever it is that you or your company may need with collections or debt, we should be able to find an excellent solution.
Keywords: debt, collections agency, welcome, collection agency, firm Article Date: 7/25/2008
Free Skip Trace Tools for collections agencies and their clients
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Keywords: collections, skip, tracing, industry, trace, s.c. services Article Date: 8/4/2008
Collections Agency Glossary of Terms Reference Sheet
Over the past few weeks, we here at Collections Agency 123 have been putting together a list of commonly used terms within the field. We hope they can be of use to you.
A
Account Review - A review of a consumer's credit history by one of his/her creditors.
Active Account - An account for which activity has been reported to a Credit Reporting Agency in the last 90 days.
Adjustment - The percentage of a debt that is to be repaid to the creditor in a Chapter 13 bankruptcy.
Annual Fee - The yearly fee charged by a lender to maintain an account.
Annual Percentage Rate (APR) - The cost of credit at a yearly rate. Knowing the APR allows you to
effectively compare loans, regardless of the loan structure.
Assets - Any holding that has a monetary value or use. A houses, real estate, a car, jewelry, stocks & bonds are considered assets.
Available Credit - On a credit account, the credit limit minus the current balance. To
many creditors, your total available credit on all your accounts is an
important factor.
B
Balance - The outstanding amount owed to a creditor on a particular account.
Balance Transfer - The transfer of one or more credit card balances onto another card, typically to take advantage of a lower annual percentage rate.
Balloon Payment - A final payment at the end of a loan term that is considerably
larger than the regular periodic payments. Often associated with a second mortgage.
Bankruptcy (Chapter 7) - Court proceeding where one's unprotected assets are sold and disbursed to pay creditors.
Bankruptcy (Chapter 13) - The debtor will receive an extension in time to repay all or part of his/her debts. The debtor is allowed to keep his / her assets.
C
Capital - A measure of your current assets, including savings, investments,
and property. Capital reassures a lender by providing a means of
repaying your loan in case you default. It may also provide evidence
that you've met financial obligations in the past -- a fully paid car,
for example, shows that you've successfully paid off an auto loan.
Cash Advance - A cash loan taken out on a credit card. Interest for cash advances
is usually higher than it is for purchases, a transaction fee may
apply, and the grace period may be waived.
Charge-off - An instance in which a consumer is seriously delinquent in paying a
bill and the creditor elects to transfer the account to an accounting
category such as "charged to loss" or "bad debt." In such cases, the
creditor may also turn the account over to a collection agency.
Closed Account Status - An account that has been closed by you or your creditor. Such
accounts remain on your credit report for seven years from the date of
last activity.
Closing - The point at which the buyer signs the mortgage documents, pays
closing costs, and becomes the owner of the property. Also called a
settlement.
Closing Costs - Expenses that buyers incur in the transfer of ownership of a
property. Closing costs may include taxes, origination fees, attorney's
fees, and other costs.
Collection Agency - A firm assigned by a creditor to collect overdue amounts. Some creditors have internal collection
departments. Like creditors, collection agencies report account
information to consumer reporting agencies.
Consolidation Loan - A loan obtained in order to combine multiple debts into one, typically at a lower interest rate.
Consumer - An individual who purchases products and services.
Consumer Debt - Debt incurred for items that aren't considered tangible investments
such as credit card debt, car loans, and personal loans made by family
members.
Consumer Credit Counseling Service (CCCS) - Organizations that help consumers find a way to repay debts through
careful budgeting and fund management. CCCS's are usually non-profit
organizations funded by creditors. By requesting a longer pay-off
period from creditors one-by-one, a CCCS can often design a workable
repayment plan on behalf of the consumer.
Consumer Statement - Under the Fair Credit Reporting Act, you have the right to add a consumer statement to your credit file to explain disputed information about your accounts.
Co-signer - Someone who agrees to share responsibility with the primary
applicant for a loan or credit card. A consumer with poor credit may
need a co-signer to get a loan or to qualify for favorable terms.
Because co-signers are liable for debts incurred, co-signed accounts
appear on the cosigner's credit report.
Credit - A trust or promise to buy now and pay later under designated terms for goods or services.
Credit File - The collection of an individual's credit history, identifying
information, and other records maintained by a credit reporting
company. "Credit file" is sometimes used interchangeably with credit
report, but technically a credit file is the source from which a credit
report is generated.
Credit History - A record of how a consumer has paid credit accounts in the past. It
is used as a guide to determine whether or not the consumer is likely
to pay future accounts on time.
Credit Limit / Credit Line - The amount of credit issued by a lender.
Credit Repair Agency - Companies that claim they can "clean up" or "erase" a consumer's bad credit.
Credit Report - A report that a prospective lender or employer obtains from a
consumer reporting agency that displays the manner in which a consumer
has met his or her past credit obligations. It is used to help
determine creditworthiness of the potential borrower.
Credit Risk - The likelihood of a consumer to pay back an outstanding debt.
Credit Score - A numerical estimation of the likelihood that you'll meet debt
obligations. A creditor gets your information from a credit reporting
company and applies a credit scoring model to calculate your credit
score.
Creditor - A company that enables consumers to make purchases on credit and/or
lends consumers money.
D
Debit Card - A card that allows purchases to be deducted directly from a consumer's personal checking account.
Debt To Income Ratio - Your income compared to the debt you owe.
Debtor - One who owes a debt.
Delinquency - Past-due payment on a loan.
Disposable Income - Money left over after taxes are deducted.
Dispute - To question the accuracy of information on a credit report.
Down Payment - The initial amount paid in cash toward the total price of a home or
car. A large down payment may help you get a more favorable interest
rate and let you avoid having to buying mortgage insurance.
E
Equal Credit Opportunity Act - A federal law that requires lenders and other creditors to make
credit equally available without discrimination based on race, color,
religion, national origin, age, sex, marital status, or receipt of
income from public assistance programs.
F
Fair Credit Reporting Act - A federal law that among other things enables consumers to learn
what information consumer reporting agencies have on file about them,
and to dispute errors in the file. It also specifies certain
permissible purposes for which credit reports may be furnished. It
provides consumers with the right to obtain a copy of their report at
no charge if their have been turned down for credit.
Fixed Rate - An interest rate that remains constant, regardless of economic indicators.
Foreclosure - The legal process by which a creditor may sell mortgaged property to recover a defaulted mortgage.
G
Grace Period - The period allowed to avoid any finance charges by paying off the balance in full before the due date.
Gross Monthly Income - What you earn before taxes are deducted.
H
Home Equity Loan - A loan secured by a primary residence or second home to the extent
of the excess of fair market value over the debt incurred in the
purchase. Interest on a home equity loan may be tax deductible, but if
you fail to pay your home equity loan, your home could be sold to pay
off the debt.
I
Identity Theft - A fast-growing crime that occurs when someone uses your personal
information to fraudulently obtain credit.
Interest - The cost of borrowing or lending money, usually a percentage of the amount borrowed or loaned.
Interest Rate - The amount charged by a lender for borrowing money.
J
Judgment - A determination by a court of law that, in the case of credit, may
require a person to fulfill an obligation When a judgment has been satisfied (i.e. the debt has been paid
or settled), the consumer has fulfilled its requirements and is no
longer liable. Information about judgments is recorded in the public
records section of a credit report.
L
Late Fee - A fee attached to a delinquent account.
Late Payment - A payment delivered after its due date. Payments that are late by 30
days or more may be reported to credit reporting agencies and added to
your credit report.
Lease - A contract that allows you the right to use or occupy property (a
car or apartment, for example) over a specific length of time, during
which you make regular payments and after which you do not own the
property.
Lender - A company that lends money to consumers or enables them to make purchases on credit. Sometimes used interchangeably with creditor.
Lien - A legal claim upon real or personal property as security for or payment of a debt.
Loan To Value Ratio - The ratio of the amount of a home loan to the appraised value of the
home. For example, if you borrow $75,000 to buy a $100,000 house, the
LTV is 75%. As a general rule, the lower the LTV, the more favorable
the terms of the loan will be.
M
Minimum Payment - The smallest payment you can make on a revolving credit account to maintain your account status as being paid as agreed.
Mortgage - A loan designed to facilitate the purchase of a home, in which the
home itself serves as security for the loan. If the borrower doesn't
make the required payments, the lender may through a legal process
known as foreclosure, sell the home in order to recover the amount owed
on the mortgage. "Mortgage" can also refer to the legal document
detailing the borrower's responsibilities, including the payment
schedule and terms.
N
Net Income - Your total income from employment and other sources, minus taxes.
O
Open Account - An account that is still active or still being paid.
P
Periodic Rate - An interest rate expressed in daily or monthly terms, calculated by dividing the annual percentage rate by 365 or by 12.
Prepayment Penalty - A fee assessed by a lender when you pay off your loan ahead of
schedule. The penalty compensates the lender for interest payments it
would have received based on the loan's payment schedule.
Primary User - The person under whose name a credit card account is listed. A
primary user can authorize other people to use the account, but the
primary user is ultimately responsible for repaying all charges.
Q
Qualifying Ratio - The ratio of your monthly expenses to your gross monthly income. Creditors use qualifying ratios to evaluate loan applications.
R
Refinancing - Restructuring your home loan to get a lower interest rate or to borrow money from the amount you've already paid on a loan.
Reposession - The act of a creditor regaining possession of an item sold to you.
Revolving Balance - The total balance of all revolving credit accounts.
Revolving Charge Account - An account that requires at least a specified minimum payment each
month plus a service charge on the balance. As the balance declines,
the amount owed for the service charge, or interest, also declines.
S
Second Mortgage - A mortgage taken out on a home that has an existing mortgage. A home equity loan is a type of second mortgage.
Secured Credit Card - A credit card secured by a savings account.
Secured Loan - A loan for which an item of property has been pledged in case of default. A mortgage is an example of a secured loan.
Service Charge - Additional services applied to an account.
T
Tax Lien - A charge upon real or personal property for the satisfaction of debts related to taxes
Truth In Lending Act - Part of the Consumer Protection Act, the Truth in Lending Act, among other things, requires lenders to disclose the annual percentage rate, the total cost of the loan, and other terms. It also regulates credit advertising.
U
Unsecured Credit Card - A credit card based upon repayment, and no collateral is necessary.
Unsecured Loan - A loan based on your promise to repay, not on pledged collateral.
V
Variable Interest Rate - An interest rate that changes according to a predefined formula based on an economic indicator such as the prime rate.
Keywords: Collections Agency Glossary of Terms, Debt, Collections, Loans, Bankruptcy, Capital, Credit History, Debt, Equal Credit Opportunity Act, Fair Credit Reporting Act Article Date: 9/18/2008 |
