Once a telemarketer has your checking account information,
it is put on a demand draft, which is processed
much like a check. The draft has your name, account number, and
states an amount. Unlike a check, however, the draft does not
require your signature. When your bank receives the draft, it
takes the amount on the draft from your checking account and
pays the telemarketers bank. You may not know that your
bank has paid the draft until you receive your bank
statement. consolidation debt mortgage
What You Can Do To Protect Yourself It can be difficult to
detect an automatic debit scam before you suffer financial
losses. If you do not know who you are talking to, follow these
suggestions to help you avoid becoming a victim: Don t give
out your checking account number over the phone unless you know
the company and understand why the information is necessary. If
someone says they are taping your call, ask why. Don t be
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Companies do not ask for your bank account information
unless you have expressly agreed to this payment method. ITS
THE LAW: Since December 31, 1995, a seller or telemarketer is
required by law to obtain your verifiable authorization to
obtain payment from your bank account. That means whoever takes
your bank account information over the phone must have your
express permission to debit your account, and must use one of
three ways to get it. The person must tell you that money will
be taken from your bank account. If you authorize payment of
money from your bank account, they must then get your written
authorization, tape record your authorization, or send you a
written confirmation before debiting your bank account. If they
tape record your authorization, they must disclose, and you
must receive, the following information: consolidation credit debt
The date of the demand draft; The amount of the draft(s);
The payors (who will receive your money) name; The number
of draft payments (if more than one); A telephone number that
you can call during normal business hours; and The date that
you are giving your oral authorization. If a seller or
telemarketer uses written confirmation to verify your
authorization, they must give you all the information required
for a tape recorded authorization and tell you in the
confirmation notice the refund procedure you can use to dispute
the accuracy of the confirmation and receive a refund. bill consolidation debt
What To Do If You Are A Victim If telemarketers cause money
to be taken from your bank account without your knowledge or
authorization, they have violated the law. If you receive a
written confirmation notice that does not accurately represent
your understanding of the sale, follow the refund procedures
that should have been provided and request a refund of your
money. If you do not receive a refund, it s against the
law. If you believe you have been a victim of fraud, contact
your bank immediately. Tell the bank that you did not okay the
debit and that you want to prevent further debiting. You also
should contact your state Attorney General. Depending on the
timing and the circumstances, you may be able to get your money
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If You Do Cosign Despite the risks, there may be times when
you want to cosign. Your child may need a first loan, or a
close friend may need help. Before you cosign, consider this
information: Be sure you can afford to pay the loan. If
you re asked to pay and can t, you could be sued or
your credit rating could be damaged. Even if you re not
asked to repay the debt, your liability for the loan may keep
you from getting other credit because creditors will consider
the cosigned loan as one of your obligations. consolidation debt lead
Before you pledge property to secure the loan, such as your
car or furniture, make sure you understand the consequences. If
the borrower defaults, you could lose these items. Ask the
lender to calculate the amount of money you might owe. The
lender isn t required to do this, but may if asked. You
also may be able to negotiate the specific terms of your
obligation. For example, you may want to limit your liability
to the principal on the loan, and not include late charges,
court costs, or attorneys fees. In this case, ask the
lender to include a statement in the contract similar to:
The cosigner will be responsible only for the principal
balance on this loan at the time of default. consolidation debt non profit
Ask the lender to agree, in writing, to notify you if the
borrower misses a payment. That will give you time to deal with
the problem or make back payments without having to repay the
entire amount immediately. consolidation debt loan online
Make sure you get copies of all important papers, such as
the loan contract, the Truth-in-Lending Disclosure Statement,
and warranties if you re cosigning for a purchase. You may
need these documents if there s a dispute between the
borrower and the seller. The lender is not required to give you
these papers; you may have to get copies from the borrower. consolidation debt home loan
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Monthly Payment Years in Repayment otal Amount Repaid
(includes interest) $5, 000 $63 10 $7, 601 $10, 000 $127 $15,
201 $20, 000 $253 $30, 402 $30, 000 $380 $45, 603 $60, 000 $760
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Balance Computation Method for the Finance Charge . If you
don have a free period, or if you expect to pay for
purchases over time, it important to know what method the
issuer uses to calculate your finance charge. This can make a
big difference in how much of a finance charge you l pay
even if the APR and your buying patterns remain relatively
constant. See page 10 for examples of how the methods can
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Examples of balance computation methods include the
following. Average Daily Balance. This is the most common
calculation method. It credits your account from the day
payment is received by the issuer. To figure the balance due,
the issuer totals the beginning balance for each day in the
billing period and subtracts any credits made to your account
that day. While new purchases may or may not be added to the
balance, depending on your plan, cash advances typically are
included. The resulting daily balances are added for the
billing cycle. The total is then divided by the number of days
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Adjusted Balance. This is usually the most advantageous
method for card holders. Your balance is determined by
subtracting payments or credits received during the current
billing period from the balance at the end of the previous
billing period. Purchases made during the billing period
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This method gives you until the end of the billing cycle to
pay a portion of your balance to avoid the interest charges on
that amount. Some creditors exclude prior, unpaid finance
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Previous Balance . This is the amount you owed at the end of
the previous billing period. Payments, credits and new
purchases during the current billing period are not included.
Some creditors also exclude unpaid finance charges. consolidation debt plan
Two-cycle Balances . Issuers sometimes use various methods
to calculate your balance that make use of your last two
month account activity. Read your agreement carefully to
find out if your issuer uses this approach and, if so, what
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If you don understand how your balance is calculated,
ask your card issuer. An explanation must also appear on your
billing statements. Other Costs and Features Credit terms vary
among issuers. When shopping for a card, think about how you
plan to use it. If you expect to pay your bills in full each
month, the annual fee and other charges may be more important
than the periodic rate and the APR, if there is a grace period
for purchases. However, if you use the cash advance feature,
many cards do not permit a grace period for the amounts due
even if they have a grace period for purchases. So, it may
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