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1. Adjustment
Any change in the amount owed to a creditor, usually as the result
of negotiation.
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2. Analysis
Deciphering the credit report codes and identifying the derogatory information
so that corrective/compliance needs can be clear to the client and to the referror.
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3. A.P.R.
(Annual Percentage Rate) is a measure of the total cost of the loan, expressed
as a yearly percentage rate. All A.P.R.s are calculated by the Mortgage News
Company.
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4. Account Notification
The official written announcement to a Company that there is a status change
regarding financial responsibility for a specific joint account.
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5. Bankruptcy (Chapter 7)
Federal debt relief. All assets or property held by that person then being court
administered by a trustee on behalf of the creditors, and negates any financial
obligation of the applicant.
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6. Credit Damage Prevention
The action of the signer on a financial account such as checking account, credit
cards, car payments, mortgage payments to prevent any cosigners from increasing
debt, making new charges, withdrawing funds, or causing late payments either
willfully or by neglect. Prevention is acheived by proper notication to the financial
firm, by monitoring of accounts to prevent or minimize nasty surprises.
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7. Charge-Off
When a creditor reports an unpaid account balance as uncollectable and a total
loss to their company.
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8. Collection Agency/Department
An independent company hired by a creditor to obtain unpaid funds on their credit
accounts from which the Collection Agency takes a percentage or receives a fee.
Sometimes Collection Agencies buy such accounts directly from the creditor.
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9. Co-Signer (Joint Account)
A person who guarantees payment on an account and is legally responsible for
payment.
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10. Court Decree
The official court decision regarding a dispute, confirmed in writing binding
only on both parties.
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11. Credit Codes
CAPS Abbreviations used by credit bureaus to refer to credit activity conditions
on credit accounts. Such as abbreviations for Slow Pay, Account Current, Paid
Satisfactorily, Charge-Off, etc.
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12. Credit Damage
Any information that causes a borrower to pay more than the lowest
available rate to a borrower.
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13. Credit Damage Assessment
Any information that causes a borrower to pay more than the lowest
available rate or a measurement to determine the additional cost.
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14. Credit Identity
Each person is entitled to their own file or record of their credit
use, their identity is based on name, date of birth, social security
number, residence, etc. The credit bureaus use such facts provide lenders,
employers and insurers specific information only about that person in
a creditreport. A joint account does not change a credit identity and
must be identified as a joint account in the credit report.
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15. Credit Rating
The perception of a lender regarding a credit applicant as to creditworthiness.
This is stated as a credit score or a letter(A, B, C, hardmoney, etc.)
and is often the basis of borrowing terms and costs: better ratings always
result in lower costs.
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16. Credit Report
Individual financial activity is compiled from multiple creditors
(including collection agencies) by a credit bureau for convenient disclosure
of credit activity, credit extended, and payment performance. Individual
reports may be combined for convenience. Also Consumers & Lenders
reports differ. Three national credit reporting agencies or bureaus are
Transunion, Equifax, and Experian. The accuracy and content of a credit
report is governed by the Federal Trade Commission and Fair Credit Reporting
Act (FCRA).
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17. Creditor
A company or individual granting funds in advance or a line of credit
for goods to a certain specified amount. Such as banks, department stores,
credit card companies, auto dealerships, etc.
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18. Default
Failure to fulfill an obligation or requirement, such as non-payment
of a mortgage which would result in foreclosure or forfiet of property.
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19. Demand
A formal written request for action; such as a demand for payment
by a creditor, or demand for information by a consumer or consumer representative
for information held by a credit bureau.
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20. Derogatory
Negative or poor information on a credit report. Also, in professional
jargon, called a Ding, Neg, Derog, etc.
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21. Dispute
When a consumer formally questions the validity or accuracy of information
on their credit report to the credit bureau and/or the creditor.
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22. Escrow
A written deed or contract placed in the custody of a third party,
such as an escrow company, and effective upon fulfillment of all stipulated
conditions.
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23. Factual
Credit information supplied to a loan broker or real estate agent
on a business-to-business basis. This can include data from any combination
of sources including TRW, CBI/Equifax, TransUnion and public records
information.
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24. Federal Debt Collections Practices Act
Passed by Congress to set specific guidelines for what third party
collection agencies can and cannot do during the collection process.
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25. Federal Trade Commission
An agency set up by the national government to oversee the use of
the Fair Credit Reporting Act headquartered in Washington, DC.
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26. Foreclosure
To deprive a mortgage in default of the right to redeem mortgaged
property based on non-payment of contractural fees.
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27. Frivolous
Lacking importance or significance. Term sometimes used by bureaus
to describe a consumer explanation regarding a report item.
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28. F. T. C.
Federal Trade Commission
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29. Garnishment
A notice to a person holding money or effects of the assets pending
court judgment. As in an employer holding salary to be paid to creditors
if the court so rules.
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30. Good Faith Payment
Any payment in any amount to a creditor for an account on which
the regularly scheduled payment cannot be made.
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31. Individual Liability
Only one person is responsible for payment on an account.
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32. Injorious
Damaging to a consumer's creditworthiness and distressing or harmful
to the creditor personally.
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33. JASPR or J.A.S.P.R.
JASPR is an acronym for Joint Account Self-Protection Reports. In order to protect
yourself from credit damage caused by someone you previously had a joint account
with, specific forms and reports are necessary. Credit Peace.com was created to
help people use these forms and reports, as well as provide important information
about joint accounts in general.
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34. Joint Account
Any financial account: checking, savings, 401(K), credit card, mortgage,
loan, etc., on which there are two responsible signers.
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35. Lender
Any institution that provides funds and charges interest for their
services, such as banks, mortgage companies, credit unions, savings & loans,
etc.
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36. Lien
A legal right to claim or dispose of property of or as security
for a debt. Example: A lien on a house by a creditor must be paid off
before the house can be sold or the amount owed to the creditor will
be taken from the selling price of the house before funds are given to
the seller.
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37. Secured Account
A loan that has been granted conditional to the consumer pledging
some form of real property, such as a house or car.
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38. Trans-Union
Credit information bureau headquartered in Chicago, Illinois.
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