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MM Chapter 9-Ayodele
Chapter 9
| Term | Definition |
|---|---|
| Credit Delinquency | Failure to pay debts as required by agreement or by law. |
| Repossession | The act of taking an asset used as collateral and selling it to pay the debt. |
| Foreclosure | The legal process of taking possession of the house (property) when the borrower does not make mortgage payments as agreed. |
| Garnishment | A legal process that allows part of an employee’s paycheck to be withheld for payment of a debt. |
| Disputing a charge | The process of informing a credit company of an error on your bill. |
| Documentation | Records that support your claim. |
| Dispute letter | A letter written to inform a credit company of an incorrect charge on your account. |
| Alternative Dispute Resolution | A method of settling a dispute using a neutral third party. |
| Credit Card fraud | Intentionally using someone’s credit account to steal money or goods. |
| Identity theft | The use of your personal information by someone else without permission to commit fraud or other crimes. |
| Credit repair | A scam in which a company claims to be able to “fix” your poor credit record and give you a clean credit history- for a price. |
| Bankruptcy | A legal procedure to relieve a person of excessive debt. |
| Bankruptcy fraud | The abuse of bankruptcy laws in a way that favors the debtor and defrauds creditors. |
| Chapter 7 bankruptcy | the forfeiture of an individual’s assets in exchange for the discharge of debt. |
| Discharge | A court order that pardons the debtor from having to pay debts. |
| Exemption | (1) A person claimed as a dependent on a tax return; (2) Property that a debtor in bankruptcy does not have to forfeit to pay off creditors. |
| Chapter 13 bankruptcy | A repayment plan for some of an individual’s debt. |
| Chapter 11 bankruptcy | A reorganization form of bankruptcy for businesses that allows them to retain possession of their assets and continue operating under court supervision as they repay their restructured debts. |
| Credit counseling | A service to help consumers manage credit and avoid bankruptcy. |
| Debt settlement program | A strategy for paying off debt in a way that reduces the total interest paid. |
| Debt consolidation | The process of getting one loan with a single monthly payment to pay off all of your debts. |
| Equity loan | A second mortgage or debt secured with the equity in your home. |
| Consumer advocacy | The process of helping consumers resolve problems. |
| Fair Credit Reporting Act | A law that regulates the collection, dissemination, and use of consumer credit information. |
| Truth in Lending Act | A law that required lenders to fully inform consumers about the cost of credit in a loan or credit agreement. |
| Fair Credit Billing Act | A law that sets requirements for resolving billing disputes. |
| Fair Debt Collection Practices Act | A law that protects consumers from abusive collection practices by creditors and collection agencies . |
| Equal Credit Opportunity Act | A law that protects consumers from discrimination in the granting or denying of credit. |
| Credit Card Accountability Responsibility and Disclosure Act | A comprehensive reform to credit card law to establish fair practices related to credit. |
| Identity Theft | The use of your personal information by someone else without permission to commit fraud or other crimes. |
Created by:
Ms.Ayodele
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