Credit Guides And Credit Services

• Ask for the name and contact information of the referring credit issuer. credit pacific service union

• Be ready to provide the FTC uniform fraud affidavit. credit first service union

• Follow up with a letter to the collector, stating that you do not owe this debt and that the account has been closed. card credit mobile service

• Request in writing confirmation that the account is being closed and noted as fraudulent, and that any and all reference to the debt in your credit files will be removed. card credit discover service

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Required first by California Penal Code 530.8, and later by the 2003 Amendments to the FCRA (FACT Act) Checks. If the thief used your checks, put stop payments on all remaining checks, cancel your checking and savings account, and obtain new account numbers. Put a password on your account. Notify the following check verification companies (remember, keep track of your time.) credit public service union

• CheckRite: (800) 766-2748 card credit processing service

• Chexsystems: (800) 428-9623 center credit service union

• CheckCenter/CrossCheck: (800) 843-0760 card credit service wireless

• Certigy/Equifax: (800) 437-5120 credit security service union

• International Check Services: (800) 526-5380 credit report service

• SCAN: (800) 262-7771 blogspot com christian

• TeleCheck: (800) 710-9898 christian counseling credit

Other Things To Watch For

• ATM Cards (cancel and change PIN) credit federal service union

• Fraudulent change of address - Postal Inspector www.usps.gov/websites/depart/inspector credit monitoring service

• Local or cellular phone service credit division service

• Social Security number misuse www.ssa.gov card credit online service

• Drivers license number misuse consumer counseling credit inc

• Passports www.travel.state.gov/passport_services.html card credit fleet service

Why Has Identity Theft Increased

Identity theft is: card consolidation credit

1. a relatively low-risk crime, credit free online report

2. with a potentially very high payoff, credit federal first service

3. that can be relatively easy to pull off, consumer credit service

4. with enforcement is uneven, at best, despite center credit family service

• the potentially devastating impact on the victim. credit reporting service

• It wasn't officially declared a crime until 1998 when Congress and some states began passing laws to that effect. (For more on the history and evolution of identity theft, see Chapter 10.) cca credit division service

Throughout much of the 1990s, many victims of identity theft had trouble convincing the police that they were victims of a crime at all. The police often would say that the credit card company or bank was the victim because they, and not the consumer, lost money to the thief. Some victims could not even convince authorities to write a police report. Other victims faced jurisdictional problems because the thief resided in a different city or state. credit free report service

In the early days, identity theft was more of a one- person-at-a-time crime. But in recent years, it's gone "wholesale." Thieves target organizations where they can filch personal data on dozens, if not hundreds or even thousands of people at a time. Methods of attack include bribing or placing a "mole" in auto dealerships, personnel departments of major corporations, or government agencies like the Social Security Administration, or hitting multiple mailboxes at large apartment or housing complexes. The document that the identity thief covets most is the credit report. It's the best road map for committing the crime or invading privacy in other ways. card credit customer discover

One notable case involved Philip Cummings, a 10-month employee of Teledata Communications Inc (TCI), a company that facilitates large companies' use of credit reports. From 1999-2002, Cummings allegedly was able to electronically masquerade as the Ford Motor Company and other major companies, pull credit reports in their names, and sell the data to a Nigerian fraud ring. Even after Cummings left TCI and moved out of state, he was able to continue using passwords that allowed him, from February to May 2002, to pull 6, 000 reports, 100 at a time, in the name of Washington Mutual Bank. credit repair report service

Along with these price hikes, the three CRAs have specific clauses in their contracts with resellers prohibiting resellers from passing along to consumers any of the prices that the CRAs charge resellers. This means that the reseller must either absorb the cost, or be paid by the reseller's customer, the mortgage lender. Naturally, this has created friction between resellers and their mortgage broker customers. In the March 2003 issue of the official publication of the National Association of Mortgage Brokers (NAMB), one official wrote: credit legal repair service

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Id. ⁴⁵ Id. "It seems to me that the fastest way to spoil this wonderful new service by making it look like credit repair would be for repositories to insist that credit resellers restrict mortgage brokers and lenders from charging a fee to the consumer for the upgraded credit report." The NAMB official called this restriction a "baseless policy." The AAI concluded that resellers were caught between the proverbial "rock and a hard place." cic credit monitoring service

"Resellers, faced with the prospect of audits and termination by the repositories, are understandably reluctant to deviate from the express terms of their contracts. But at the same time, they are loath to be perceived by their customers as 'holding the line on a baseless policy' which costs their customers money. The repositories have been asked to clarify the rules, but have so far refused to do so. Thus, while re-scoring is a permissible business for resellers, the repositories have made it difficult or impossible for resellers to profit from it without risking the alienation of its customers." ccs credit division service

As mentioned, if indeed the Big Three are putting the squeeze on independent resellers, they might be doing so to take over that portion of the market. But the motivations could run deeper. The AAI report noted that major creditors, even though they often are the cause of inaccuracy, do not want to have to deal with resellers. credit service union worker

"At least one national credit card issuer flatly refuses to accept inquiries from smaller credit reporting agencies, " AAI wrote. "The single largest concern of the repositories is to maintain the inflow of credit data, so it is to be expected that they would be protective of large credit furnishers. Thus, smaller resellers engaged in updating and correcting errors created by reporting creditors are often viewed as a liability by the repositories." 1st credit service union

The AAI added: "Smaller resellers are also a liability to repositories in another sense. With their primary emphasis on customer service, smaller resellers often shed light on repository practices and the extent of their compliance with laws and regulations. They expose inaccuracies and errors in credit data and also educate the public about the industry and about the legal rights of consumers." card chase credit customer

In March 2004, the National Credit Reporting Association and its members filed separate anti-trust lawsuits in federal court in California and California state court against Equifax, Experian, and Trans Union. The case was pending when this book went to press. After the lawsuits were filed, some re-sellers complained of retaliation, as at least one of the major CRAs exercised its right under their contracts to conduct an audit. card chase credit service

Unless the lawsuit results in major changes, consumers should not expect all mortgage brokers to inform them about re-scoring. Those mortgage bankers or brokers who make higher commissions on sub-prime borrowers actually have a disincentive, as re-scoring could cut into their incomes when the borrowers get better rates. citi credit monitoring service

Moreover, because of all the price hikes, cost can be a major factor for brokers and mortgage companies that are expected to absorb the cost of re-scoring. In 2000, the aver-age re-score, consisting of two tradelines corrected on reports issued by two of the three CRAs, would cost the re-seller $28.00 (using the high of 7.00 per trade), a figure that was palatable to most mortgage bankers/brokers. That same re-score would now cost the reseller approximately $120. credit plus service union

Veracity - How to Get Your Credit Report for Free

We'd like to help you learn about yourself... - Simon & Garfunkel "Mrs. Robinson" In this chapter, we will explain how to order copies of your credit report⁴⁶ and credit scores from the newly created "Centralized Source, " either by mail, by phone, or via the Internet. We will also explain how to order them directly from Equifax, Experian, Trans Union, and Fair Isaac. If you want contact information right away, go directly to page 75, and to page 85 for Fair Isaac. credit farm service

But Sallie Mae never told anyone. It came to light in the Autumn of 2003 when Chris Neuswanger, a Colorado mortgage broker, noticed that a young home-buying client had been pushed into a high-rate loan solely because two of his three credit bureau reports omitted his large, on-time student loan payments with Sallie Mae, depressing his credit score by 40 points. Eric Borgeson, a 31-year old architect, said Sallie Mae's less-than-full reporting practice cost him $200 a month more than it should have, plus higher closing costs and a $5, 000 prepayment penalty. "I got shafted by Sallie Mae, " said Borgeson, who reportedly was considering legal action. Kenneth Harney of the Washington Post broke the story.²⁹³ 1st credit federal service

Caroline Wright, a 34-year-old student from Virginia, told the Post's Michelle Singletary that a mortgage broker told Wright she would have trouble getting a good interest rate on a home loan if her on-time payments to Sallie Mae were missing from her Experian and Trans Union reports files. credit paychex service tax

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www.salliemae.com ²⁹³ Harney, Kenneth, "Sallie Mae's History Lesson, " Washington Post, November 15, 2003, pg. F1 "They weren't protecting me, " Wright said. "They were doing exactly the opposite."²⁹⁴ The controversy came in the latter stages of Congress's consideration of amendments to the Fair Credit Reporting Act. Once the story broke, Senator Richard Durbin (D-IL) prepared legislation to require Sallie Mae to resume reporting to all three credit bureaus. Soon thereafter, Sallie Mae sent a letter, promising to continue reporting to Experian and Trans Union. Undeterred, Durbin said he would offer his amendment as part of the Higher Education Act, instead of the FCRA. credit service tax

Students & Credit Cards

Another challenge facing graduates is a high level of credit card debt, often at high interest rates. Prof. Robert Manning of Rochester Institute of Technology, and author of Credit Card Nation, ²⁹⁵ told Congress, "What is striking in the acknowledgement of the credit card industry is that college students are a desirable market because of their ignorance of personal finance and their lack of consumer debt."²⁹⁶ aeon credit service

"The marketing of credit cards has shifted rapidly over the last five years from college upperclassmen to college freshmen and high school seniors. More significantly is the recognition that student consumption has a large debt component that is increasingly financed by family loans, federally subsidized student loans, summer earnings, and part-time employment during the academic year, and even with other credit cards." credit one service union

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Singletary, Michelle, "Giving Students Due Credit for History, " Washington Post, Nov. 6, 2003, pg. E3 ²⁹⁵ Credit Card Nation: America's Dangerous Addiction to Consumer Credit (Basic Books, 2001). ²⁹⁶ Statement of Prof. Robert Manning before the House Financial Services Subcommittee on Consumer Credit, June 12, 2003. http://financialservices.house.gov/media/pdf/061203rm.pdf bad cell credit phone service

"Three out of five students with credit cards in our survey had already maxed them out during their freshmen year and, three out of five freshmen with multiple credit cards were already using bank cards to pay for other revolving credit accounts. Furthermore, this survey reveals that nearly three-fourths of students use their student loans to pay for their credit cards. Not incidentally, recent studies indicate that this indiscriminate marketing to college students has led to high incidences of fraud and identity theft among this young adult population, " Manning testified.²⁹⁷ counseling credit debt service

At MBNA, an "investigation" similarly consists of a comparison of the disputed data with information in its database, the Customer Information System (CIS). One of the first to delve into its practices was Leonard Bennett, a Newport News, Virginia attorney who represented Linda Johnson. The lawsuit swirled around an MBNA MasterCard opened by plaintiff Linda Johnson's ex-husband, Edward Slater, in 1987 - four years before he married her. They had since divorced. Johnson said she was only an authorized user, which meant she was not responsible for paying the account. In December 2000, Slater filed for bankruptcy, and MBNA promptly removed his name from the account. That same month, MBNA contacted Johnson and informed her that she was responsible for the approximately $17, 000 balance on the account. After obtaining copies of her credit report from Experian, Equifax, and Trans Union, Johnson disputed the MBNA account with each of them. Experian and Trans Union sent automated consumer dispute verifications (ACDVs) to MBNA specifically indicating Johnson's claim that she was not a co-obligor on the account. card credit payment service

MBNA agents responded by comparing the disputed data with the account information contained in MBNA's computerized Customer Information System (CIS). Since the two were identical, MBNA "verified" that the disputed information was correct. In other words, MBNA did nothing more than confirm that it indeed reported the original (inaccurate) data. The CRAs continued to report it on Johnson's credit report. card credit merchant

Tricia Furr, an MBNA credit reporting specialist, confirmed that MBNA's "Desktop Procedure" manual directs specialists to confirm a match of two out of three identifiers - name, address and/or SSN. Once a two-out-of-three match is established, MBNA can inform the CRA that the disputed information is "verified as reported." Ms. Furr said that MBNA's "reinvestigations" do not go beyond the information contained in its own CIS.¹²⁷ counseling credit family

Furr

: I looked at the balance that we have on CIS and the history of the account as compared to the trade line as opposed to what we had on our Customer Information screen... Bennett: In performing the investigation and re-investigation of consumer disputes, once it receives an ACDV¹²⁸ from a credit reporting agency, when are MBNA's credit reporting specialists supposed to look beyond the Customer Information System for investigation ...I am asking the practices and procedures now. annual credit report request

Furr

: The Customer Information System is the only thing that we have to use for verification. So, there is no where else to look. Bennett: Do you ever pull documents, like old statements, and check payments and credit card applications Furr: No, sir. ¹²⁷ The depositions of MBNA personnel were taken in the case, Linda Johnson v. MBNA America Bank, N.A., Slip Op. No. 3:02 cv 523, U.S. District Court For The Eastern District of Virginia (Richmond Division). area bay credit service

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The dispute form is known as an "ACDV, " or Automated Consumer Dispute Verification Reading from MBNA's internal records, MBNA Vice President Edward Hughes quoted an MBNA employee's communication to a customer's attorney: "It would be up to (c)ard holder to prove MBNA was reporting wrong, not MBNA proving right." atlanta consumer counseling

Here Comes The Judge

In a sense, Hughes' statement proved to be wrong. Linda Johnson was one of the few consumers who sued and actually had the chance to tell her story to a jury. MBNA argued that it verification methods complied with the FCRA. The jury disagreed, and awarded Johnson $90, 300. Judge Richard Williams affirmed the jury verdict. "According to [MBNA], the duty to investigate means that any investigation is sufficient, no matter how cursory. Such a construction is illogical. There would be no point in having the statute, and the requirement of an investigation, if there was no qualitative component to the investigation. The statute itself does impose a qualitative component to the [MBNA's] negligence" Judge Williams said.¹²⁹ account card credit merchant

MBNA appealed Judge Williams' decision. But on February 11, 2004, a three-member panel of the U.S. Court of Appeals for the Fourth Circuit affirmed, finding that MBNA's standard response to consumer disputes did not amount to a true "reinvestigation" under the FCRA. aspire card credit customer

, http://banking.senate.gov/03_07hrg/071003/chart01.pdf ⁸ www.myfico.com, visited December 23, 2004 ⁹ The Hartford Courant, see Footnote 6; (2003 data) The first problem, however, is that most Americans do not understand how the credit reporting system works, how their credit scores are calculated, the important ways in which credit reports and scores can effect their financial well-being, or what they can do about it. card counseling credit service

A second problem is the potential for inaccuracy in the credit report data that are used to calculate credit scores. Over the past 13 years, abundant evidence has emerged to indicate that inaccuracy has been and continues to be a significant problem for the nation's credit reporting system. As we will see, damages to consumers stemming from credit report inaccuracy can range from the economic to the emotional. card credit online processing

A third problem is that identity theft, considered the nation's fastest-growing crime, poses a direct threat to the accuracy and integrity of data in the credit reporting system. Identity thieves typically steal an individual's identifiers, such as Social Security number, name, address, date-of-birth, and/or mother's maiden name, and then use them to obtain credit in that individual's name. When debts created by the identity thief go unpaid, creditors report the negative payment history to the credit report of the innocent victim. consolidated counseling credit

Consequently, the innocent victim's credit report is polluted by highly negative information that is inaccurate because it does not reflect that victim's activities. Multiply this dynamic by millions of cases each year and you will see why identity theft raises serious concerns about ensuring accuracy in credit report data. check credit service

Like your own credit score, the credit scoring and credit reporting system is a "work in progress." It would be inaccurate to characterize the system as totally or always unfair. But it clearly cannot be depicted as totally or always fair either. And, as we will see, when the system breaks down, the impact on individuals can range from inconvenient annoyance to life-altering devastation. card credit online payment

Spreading Awareness

This book is written to address these and a host of other issues concerning credit reporting in America. The book is designed to help readers gain a greater understanding of the credit reporting and scoring system, and how it impacts them. It would seem that greater awareness is needed. According to a July 2003 survey by the Consumer Federation of America, "Only 25 percent of Americans-and less than 20 percent of those with incomes below $35, 000-said they knew what their credit score was. But only three percent of Americans could, unprompted, name the three main credit bureaus — Experian, Equifax, and Trans Union — that provide both lenders and consumers with information from credit reports. Forty-three percent of Americans-only 35 percent of those with incomes below $35, 000-said they had obtained a copy of their credit report from the three credit bureaus in the past two years."¹⁰ civil credit ontario service

As the disclaimer states, this book does not give legal advice. Legal advice can only be given case-by-case by a lawyer, which this author is not. This also is not a "credit repair" book. This author repeats the advice of consumer protection officials: be very, very leery of outfits that call themselves "credit repair" clinics. Contrary to its literal meaning, the common use of "credit repair" connotes improving one's credit score through the removal of negative-but-accurate data. There is no guaranteed method for removing accurate information from a credit report, whether it is positive or negative. But promising that you can do so and charging money in advance is a violation of federal law, according to the FTC. antonio credit san security

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