Glossary

A

Abusive partner

Someone who uses a pattern of behaviors to maintain power and control over another partner in an intimate relationship. Can be any gender.

Adverse action

When a business decides to take a negative action based on information found in a person’s consumer report. An example is when a landlord decides not to rent to a person, to increase their security deposit, or to increase the cost of rent because of information in that person’s report.

Adverse action notice

Notice given to a person either verbally or in writing of the decision to take a negative action against someone based on information found in a person’s consumer report.

Affidavit

A written statement of facts voluntarily sworn to and signed before an authority with the power to witness an oath, usually a notary public. An identity theft affidavit is a statement specifically about the alleged identity theft.

Answer

In law, a written statement by a defendant that responds to a lawsuit. An answer generally responds to each allegation in the petition by denying or admitting it, or admitting in part and denying in part. In a state lawsuit, there is no requirement to respond to each allegation. 

Authorized user

A person who has permission to use another person’s credit card, but usually isn’t legally responsible for paying the bill.

C

Chapter 521

The Identity Theft Enforcement and Protection Act. It is the section of the Texas Business and Commerce Code that deals with identity theft.

Coerced debt

Debt that an abusive partner has taken out in an intimate partner’s name either without that person’s knowledge, or because the abusive partner used threats or force to make the other person take out the debt.

Coercive control

Tactics used to instill fear and compliance in a partner in a relationship where there is domestic abuse.

Consumer Financial Protection Bureau

Federal United States agency that enforces federal consumer financial laws and protects consumers in the financial marketplace.

Consumer report

Any written, oral, or other commuication of any information by a consumer reporting agency that has to do with a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, which is used as a factor in establishing the consumer's eligibility for credit, insurance, employment or any other authorized purpose.  See definition for credit report.

Consumer reporting agency

A person or organization that assembles or evaluates consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties in exchange for money.

Credit freeze

A credit freeze, also known as a security freeze, can help protect you from fraud and identity theft. It is free and anyone can request one. Once a freeze is placed on your credit report, no one can get access to your credit file unless you permanently or temporarily lift the freeze using the personal identification number (PIN) given to you.

Credit history

A person’s history of taking out loans and paying them back on time.

Credit report

A consumer report from one of the nationwide consumer reporting agencies (Equifax, TransUnion, or Experian).

Creditor

The person or business that originally made the loan for the money or item. For example, the car dealer is frequently the creditor when a person takes out an auto loan.

D

Debt buyer

Person or business that buys the debt that was held by the original creditor after the debt goes into default. Debt buyers are generally not subject to the Fair Debt Collection Practices Act, but can be considered a debt collector if their principal purpose of business is collecting debts.

Debt collector

A person whose principal purpose is to collect debts; a person who regularly collects debts owed to another; or persons who collect their own debts, using a name other than thier own as if they were a debt collector.

Deceptive Trade Practices Act

A law that protects consumers against false, misleading, and deceptive business practices, unconscionable actions, and breaches of warranty.

Default judgment

A default judgment is a binding judgment in favor of a plaintiff when the defendant has not responded to the lawsuit or has failed to appear at a trial or a hearing before a court of law.

Defendant

In a lawsuit, the defendant is the person the lawsuit is brought against. If you are sued for not paying a debt, you are the defendant.

Dismissed with prejudice

A way of resolving a lawsuit that results in the dismissal of the plaintiff’s claims and prevents the plaintiff from ever bringing a lawsuit against the same defendant for the same claims. In other words, if you are sued on a debt and that suit is dismissed with prejudice, you cannot ever be sued on the same debt.

Dismissed without prejudice

A way of resolving a lawsuit that results in the dismissal of the plaintiff’s claims, but without preventing the plaintiff from bringing a lawsuit against the same defendant for the same claims. In other words, if you are sued on a debt and that suit is dismissed without prejudice, you can be sued on the debt again.

Dispute

To make a claim that certain information is incorrect. You could be disputing information such as your addresses, phone numbers, or you could be disputing a debt or an account. The basis of the dispute could be that you are not responsible for a debt because you never authorized the account to be opened, or you never made the charges that are being collected, or because the debt was already paid, etc.

Dispute letter

A letter where a person is making the claim that certain information is incorrect and needs to be corrected.

Domestic abuse

Domestic abuse is a pattern of behaviors used by one partner to maintain power and control over another partner in an intimate relationship. The abuse can be physical, emotional, or financial. It is also called intimate partner violence, domestic violence, or private abuse.

E

Extended fraud alert

A fraud alert that lasts for 7 years. You must be a victim of identity theft to receive the extended fraud alert. Allows you to have two additional free copies of your credit report in the 12 months following the placement of the fraud alert.

F

Fair Credit Billing Act

A federal law enacted to protect credit card holders from unfair billing practices, such as unauthorized charges, charges for unaccepted or undelivered goods and services and other disputed charges.

Fair Debt Collection Practices Act

A federal law ensuring consumers are treated fairly by debt collectors.

Federal law

Laws that are enacted by the United States Congress that apply to everyone in the nation.

Federal student loans

Loans that are administered by the federal government or that were guaranteed by the federal government even if they were made by a private lender. 

Federal Trade Commission

Federal agency whose primary mission is protecting consumers by preventing anticompetitive, deceptive and unfair business practices.

Financial abuse

When an abuser uses money as part of the pattern of coercive control in a domestic abuse relationship. Examples can be controlling access to money, incurring debt in a partner’s name, or hiding financial documents.

Foreclosure

The action of taking possession of a mortgaged property when the homeowner fails to keep up their mortgage payments.

Fraud alert

A notice to a consumer reporting agency that a consumer’s identity may have been stolen and that a request for new credit in that consumer’s name may not be legitimate.

Fraudulent account

A new, fraudulent credit account that is opened as part of identity theft. In the context of coerced debt, it can be when an abuser takes out a new loan or line of credit in the name of a partner.

Fraudulent charge

When a new, fraudulent charge or purchase is made to a preexisting line of credit or credit account without the cardholder’s knowledge and/or permission. In the context of coerced debt, it can be when an abuser buys goods or services using a credit card in the name of a partner when the abuser is not an authorized user.

Furnisher

An entity that supplies information to consumer reporting agencies. The Fair Credit Reporting Act say that furnishers must have information that is accurate and up-to-date, and that they need to investigate disputes submitted to them y the consumer or referred to them by a consumer reporting agency.

I

Identity theft

Identity theft is the crime of obtaining the personal or financial information of another person for the purpose of assuming that person's name or identity to make transactions or purchases. In Texas, it is defined in the Texas Penal Code Section 32.51.

Identity Theft Form

A sworn statement that gives the details of your identity theft to the Federal Trade Commission. An identity theft form is one type of identity theft report.

Identity theft report

A statement about your identity theft. It is necessary for claiming protections as an identity theft victim. It can be a police report, an identity theft form, or an identity theft report made with the post office. 

Initial fraud alert

A fraud alert that lasts for one year. Anyone who thinks they are or might become a victim of identity theft can get an initial fraud alert. It allows you to get one additional free copy of your credit report in the 12 months following the placement of the fraud alert.

J

Joint account

A bank account held by more than one person, with each individual having the right to deposit and withdraw funds.

Judgment proof

When your property and income can’t be seized by creditors, because it is “exempt” by law from the creditor’s claims. If your income and property are exempt and their value falls under a certain limit, then you have nothing the creditors can take from you. Property that is exempt includes your homestead, a vehicle, household items and tools of your trade. Income that is exempt includes Social Security or Social Security Disability Income; Veteran’s benefits; Public assistance (welfare) benefits; Retirement benefits; Worker’s Compensation and vocational rehabilitation benefits; Unemployment benefits; and Court-ordered child support and spousal support.

L

Liable

Legally responsible for something. If you are liable for a debt, you are responsible for paying it back.

M

Mortgage

A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. It is basically a loan for a home. If you don’t pay back the loan, you can lose your house.

N

Nationwide consumer reporting agencies

Also termed the "big three", the nationwide consumer reporting agencies refer to the three largest consumer reporting agencies in the United States, Experian, TransUnion, and Equifax. 

O

Original credit agreement

A legally binding contract made between a person who borrows money and the lender. It is agreed upon by both parties and outlines the terms of repayment, the fees, other costs and all the rules and requirements pertaining to the loan. 

P

Plaintiff

The person or business who files a lawsuit alleging some specific wrong. In a debt collection case, the plaintiff is the debt collector or creditor who is trying to collect unpaid debts. 

Plea

A specific defense that a person can make in a lawsuit.

Police report

A document detailing a crime or a problematic incidence. Many times, it is the victim of the crime who reports what happened to the police, but sometimes it is a witness. Police officers generate a police report to start an investigation.

Private student loan

A student loan that is not backed (guaranteed) by the federal government.

Pro se

A plaintiff or defendant in a lawsuit who does not have legal representation. If the suit is in county or district court, a corporation cannot appear pro se.

Protective order

A court order instructing a person to stop abusing or harassing the petitioner or a fixed period.

S

Specialty consumer reporting agency

A consumer reporting agency that is not one of the three nationwide consumer reporting agencies.  Examples of specialty consumer reporting agencies include agencies that compile and maintain files on consumers relating to medical records or payments; residential or tenant history; check writing history; employment history; or insurance claims. 

V

Validation notice

A written notice to the person who owes money that says the amount of the debt, the name of the creditor to whom the debt is owed, a statement that the consumer has 30 days to dispute, a statement that if the consumer disputes then the debt collector must obtain verification of the debt, and a statement that the consumer can request the name and contact information of the original creditor.

Victim of identity theft

Someone whose identifying information has been used by an unauthorized person, frequently for the financial gain of another.

Violence Against Women Act (VAWA)

A federal law intended to combat violence against women.