Glossary of Terms
- Debt
- A specified sum of money that is legally owed from one to another.
- Debt consolidation
- The act of paying off all outstanding debt with a single loan.
- Debt to income ratio
- The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income.
- Default
- Failure of a debtor to make loan repayments as agreed to in a loan contract.
- Delinquent/Derogatory accounts
- Accounts classified according to the time past due. Common classifications are 30, 60, 90 and 120 days past due. Can also include accounts that have been charged off, gone to collectors, liens, bankruptcies or court judgment.
- Direct marketing
- Direct marketing differs from general marketing in that the result of a promotion is measurable in terms of response. Direct marketing is also largely dependent upon the use of customer files and lists. Direct marketing is utilized by virtually every type of business and organization. However, the primary users are magazine publishers, catalog houses, political campaign organizations and financial institutions.
- Discharged
- A debt that a court declares no longer needs to be repaid due to bankruptcy. Alimony, child support, liability for willful and malicious conduct and certain student loans cannot be discharged.
- Disclosure
- A credit report provided to the consumer which shows the "nature or substance" of what is in his or her credit records as outlined by the FCRA (Fair Credit Reporting Act).
- Dismissed
- When a consumer files for bankruptcy the judge may decide to not allow the consumer to continue with the bankruptcy. If the judge rules against the petition all debts are reinstated and the bankruptcy petition is "dismissed..
- Disposition fee
- A charge by a car dealer to defray the cost of preparing and selling the vehicle at the end of the lease if the vehicle is not purchased by the consumer.
- Down payment
- Amount paid up front when arranging credit. For leases, a down payment is often called a "capital lost reduction..
