In Plain English Glossary of Creditor Harassment Terms

“ACH Payment” stands for Automated Clearing House and refers to an electronic payment system that uses the Federal Reserve Banking system to transfer money to and from checking/savings accounts; Payments may be set up in advance to be electronically paid to a creditor one time or periodically into the future.

““Beacon Score” is another form of credit score. Each credit bureau has a different type of credit score. A Beacon Score is a credit score used by Equifax credit bureau that incorporates the Fair Isaac's FICO model of scoring. The Equifax Beacon credit score is on a scale of 340 to 820, with a 661 to 681 being a “good” score.

“Block Party” is as term used by Debt Collectors when they call a Debtor’s neighbor in attempts to collect a Debt.  Debt Collectors are forbidden from disclosing to third parties that fact that you owe money or any details surrounding your debt.

“Cease and Desist Letter” is a letter that gains its power from the Fair Debt Collection Practice Act.  It is a letter sent by a Debtor to a collection agency demanding that they stop calling them in attempts to collect a debt.

“Collection Agency” is a person or organization that has either been hired to collect a Debt that is owed to a Creditor or is an organization that has bought the debt to collect for themselves.

“Consumers” are individuals.

“Consumer Protection Laws” is a phrase that generally refers to government regulation passed to protect individual’s interests from abusive practices and to encourage consumers to make better, more informed decisions in the marketplace.

“Credit Reporting Agency” generally speaking refers to the three national bureaus that collect, evaluate and distribute “fico” or beacon” score on individuals that (allegedly) predict someone’s creditworthiness.  The three national agencies are Equifax, Experian and TransUnion.

“Creditor” is a title that refers to someone who is directly owed money by another.  The Creditor is the person who originally lent the money to the Debtor.

“Debt” refers to monies that are owed from the Debtor to a Creditor.

“Debt Collector” is a person or entity that has been hired to attempt to collect monies that are owed to someone else.  It is not someone who is trying to collect their own debt.

“Debt Validation” is a tactic that Debtors may use to delay and in some case stop collection calls from debt collectors.  It requires that the debt collector provide written proof positive that not only does the collection company owns the debt or has been assigned the debt, but that you incurred the debt.

“Debtor” is a term that refers to someone who owes another person, a creditor, money.

“Emperica Score” is another form of credit score that was developed by TransUnion for evaluating an individual’s creditworthiness.  See also Beacon Score and FICO Score.

“Equifax” is one of the three national credit reporting agencies that is headquartered in Atlanta.  Equifax uses its “beacon score” to assess an individual’s creditworthiness.

“Experian” is one of the three national credit reporting agencies that reports an individual’s creditworthiness.  Experian is headquartered in Texas.

“Fair Debt Collection Practices Act (FDCPA)” is a federal consumer protection law that requires that a debt collector treat a debtor fairly when collecting debts by prohibiting certain methods of debt collection.

“Fair Credit Reporting Act (FCRA)” is a federal consumer protection law that was enacted in 1970 to promote accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs).

“FICO Score” is a rating, ranging from 300 to 900, that tells prospective creditors and third parties your creditworthiness. It is calculated using a computer model that compares the information in your credit report to what's on the credit reports of thousands of other customers. It is named at Fair Isaac Corp., the firm that developed the scoring model used by the three major credit bureaus -- Equifax, Experian and Trans Union.

“Furnisher” are entities that send information to Credit Reporting Agencies regarding creditworthiness in the normal course of business.

“Invasion of Privacy” is both an expression and a legal cause of action in which a creditor or a collection agency makes public private facts that the average person would find offensible.

“Investigative Consumer Report (ICR)” are dossiers on consumers that include information on character, reputation, personal characteristics, and mode of living. ICRs are complied from personal interviews with persons who know the consumer. Since ICRs include especially sensitive information, the FCRA affords greater protections for them.

“Paper” is a term of art used in the Debt Collection industry to refer to notes or documents that provide evidence or proof of the debt.  The debt is typically either be in the form of a promissory note or credit card agreement.

“Represented by Counsel” is the phrase used in legal  circle to tell someone that you have hired an attorney to provide you advice and try to protect or enforce your rights.

“State Protection Laws” This phrase refers to any state laws aimed at protecting consumers from the abusive acts of debt collectors. Typically used to draw distinction from the Federal laws governing the same abusive conduct.

“Statue of Limitations” is a term of that defines the fixed period of time that a creditor or collection agency has to sue someone for a debt owed. That period of time is often referred to as "the statute of limitations."   

“TransUnion” is one of the three national credit reporting agencies that reports individual’s creditworthiness to third parties.  TransUnion is headquartered in California and services the western part of the country.

“User” of credit reports are entities that request a report to evaluate a consumer for some purpose.