Credit Guides And Credit Services

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

• 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. credit first service union

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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.) card credit mobile service

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

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

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

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

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

• SCAN: (800) 262-7771 credit security service union

• TeleCheck: (800) 710-9898 credit report service

Other Things To Watch For

• ATM Cards (cancel and change PIN) blogspot com christian

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

• Local or cellular phone service credit federal service union

• Social Security number misuse www.ssa.gov credit monitoring service

• Drivers license number misuse credit division service

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

Why Has Identity Theft Increased

Identity theft is: consumer counseling credit inc

1. a relatively low-risk crime, card credit fleet service

2. with a potentially very high payoff, card consolidation credit

3. that can be relatively easy to pull off, credit free online report

4. with enforcement is uneven, at best, despite credit federal first service

• the potentially devastating impact on the victim. consumer credit 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.) center credit family 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 reporting 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. cca credit division service

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 free report service

As recently as September 2002, long after the Ford Motor Company incident had been well publicized, the Cummings ring ordered 4, 500 credit reports through Central Texas Energy Supply. When a company did change its password, it temporarily stumped the ring member's laptop on which Cummings had downloaded passwords. But after being arrested, the ring member later cooperated with prosecutors and told them that Cummings had an ample list of additional passwords that still worked. card credit customer discover

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 repair report 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." credit legal repair 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." cic credit monitoring 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. ccs credit division service

"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." credit service union worker

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." 1st credit service union

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 customer

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. card chase credit 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. citi credit monitoring service

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 plus service union

By September of 2005, all Americans will be entitled to obtain one free copy per year of their Equifax, Experian, and Trans Union credit reports from the "Centralized Source" (credit scores are not included and always come with a price). The free report and the Centralized Source were mandated by Congress when it passed the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). The goal of the law is to improve credit report accuracy and fairness by encouraging Americans to review their credit reports. 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

Not surprisingly, Manning recommends that students check their credit reports. Clearly, today's graduates face greater challenges in managing their finances so as not to jeopardize their finances. The National Consumers League has a page on its Web site dedicated to student debt issues.²⁹⁸ Divorce Divorce can have a dramatic impact on the divorcee's credit score and credit report. A major problem is that divorcees often don't realize the extent to which their credit relationships can continue to entangle each other's lives well after divorce. Or, they are so overwhelmed with the emotional and logistical difficulties of separation that there is little time left for separating and straightening out credit relationships. But that is precisely what you need to do: ensure that your name is no longer on accounts for which you are not responsible for paying. During the divorce, the husband and wife usually work out a division of debts that receives final approval from the judge. Divorcees often think that any debt assigned to their ex-spouse by the court frees them from that debt for ever after. card credit payment service

, 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 credit merchant

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. counseling credit family

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. annual credit report request

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. area bay 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. atlanta consumer counseling

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 account card credit merchant

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. aspire card credit customer

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CFA Opinion Survey, July 2003, conducted by Opinion Research Corp.; www.consumerfed.org/072803creditscores.html This Book Covers... The book is divided into chapters that cover the "basics" of credit scores and credit reports, and ones that cover "advanced" aspects of the systems, which create them. Chapter 1 explains the basics of credit scores-beginning with Fair Isaac's explanation as to how they are calculated. Chapter 2 is more advanced, delving into little known-and sometimes surprising-details about credit scoring that should further increase your understanding. Chapter 3 goes even further by exploring the world of "resellers" and "re-scoring, " a little known but valuable service for improving the credit scores of mortgage applicants, but which appears threatened by hostile economic forces. card counseling credit service

We return to "basics" in Chapter 4, describing how you can obtain your credit report and the circumstances that currently entitle you to a free report. This chapter notes that eventually, all Americans will be entitled to one free credit report per year under the 2003 Amendments to the FCRA, known as the Fair and Accurate Credit Transactions Act (FACTA). The requirement took effect in December 2004, and was gradually being phased in under rules set by the Federal Trade Commission. card credit online processing

"Unless Congress renews important Fair Credit Reporting Act provisions, the national credit system would be replaced by dozens of inconsistent state and local laws complicating the credit process for consumers and businesses, while hindering important identity theft and fraud protections, " the group said on its Web site.³⁶² consolidated counseling credit

Between the associations and all the banks, credit bureaus, insurers, and retailers, dozens upon dozens of well-heeled lobbyists were dispatched to Capitol Hill. Before the hearings had even started, many Members of Congress had heard first-hand that the entire financial services industry wanted prompt re-authorization of the FCRA's preemption of state law. check credit service

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www. .com ³⁶² Id. The Consumer-Privacy Side On the other side, those favoring stronger consumer protection and expansion of the state role included the U.S. Public Interest Research Group, ³⁶³ the Consumer Federation of America, ³⁶⁴ and Consumers Union, ³⁶⁵ which is publisher of the popular magazine Consumer Reports, the National Consumer Law Center;³⁶⁶ and the National Association of Consumer Advocates.³⁶⁷ card credit online payment

Aligned with these groups was the National Association of Attorneys General (NAAG), ³⁶⁸ representing state Attorneys General. Supporting roles were played by the Electronic Privacy Information Center, a well-respected organization based in Washington, D.C., ³⁶⁹ the Identity Theft Resource Center, the American Association for Retired People (AARP), and a handful of other groups and individuals with expertise in privacy, credit reporting, and/or identity theft.³⁷⁰ civil credit ontario service

The House Goes First

It is customary for Congressional committees to hold public hearings before voting on legislation. Sometimes the committee members already know how they will vote and the hearings are just a formality. But sometimes the testimony can actually have an impact. ³⁶³ Led by Consumer Programs Director Ed Mierzwinski ³⁶⁴ Exec. Director Stephen Brobeck, Legislative Affairs Dir. Travis Plunkett, and Housing Director Brad Scriber antonio credit san security

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Janell Mayo Duncan, Consumers Union legislative counsel; Shelley Curran, Policy Analyst, CU West Coast Regional Office; Gail Hillebrand, Senior Attorney, CU West Coast Regional Office; Ami Ghadia, Esther Peterson Fellow, CU Washington Office. card cardmember chase credit

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Margot Saunders and Anthony Rodriguez ³⁶⁷ Exec. Director Ira Rheingold and Newport News, Virg. attorney Leonard Bennett ³⁶⁸ Led by Julie Brill, an Assistant AG of Vermont, and Susan Henrichsen, Asst. AG of California ³⁶⁹ www.epic.org/privacy/fcra ³⁷⁰ Prof. Joel Reidenberg, of Fordham Law School, Prof. Peter Swire, Ohio State Univ. Law School and former senior privacy counselor of the Clinton Administration, and this author. clean credit repair service

A subcommittee³⁷¹ of the House Financial Services Committee opened hearings on May 8, 2003. The title of the hearing, "The Importance of the National Credit Reporting System to Consumers and the U.S. Economy, " reflected the committee's pro-industry stance. The opening statement of Subcommittee Chairman Spencer Bachus reflected the pro-industry conclusions of the AEI-Brookings report: credit management service

"We will hear in detail today how our uniform credit system under the FCRA benefits consumers and the economy as a whole. Among the consumer benefits afforded by our national credit system are efficient and convenient access to credit and insurance, strong competition in the financial services marketplace, and lower costs of credit."³⁷² colorado credit public service

The Republicans had the votes in the committee. The financial industry lobbyists had blanketed the Hill. Senator Tim Johnson (D-SD) and Rep. Patrick Tiberi (R-OH) had both introduced bills that would make preemption permanent and which were silent on consumer protection.³⁷³ Everything seemed set for smooth sailing. Even Federal Reserve Board Chairman Alan Greenspan heartily endorsed keeping pre-emption of state law.³⁷⁴ consolidation counseling

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Subcommittee on Financial Institutions and Consumer Credit ³⁷² Opening Statement of Chairman Spencer Bachus, "The Importance of the National Credit Reporting System to Consumers and the U.S. Economy, " May 8, 2003. ³⁷³ No senator agreed to co-sponsor Johnson's bill. In praising the credit card industry at a June hearing, Tiberi said his father was an immigrant who used his credit card to buy everything and received cash back at the end of the year. bureau card credit service

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Blackwell, Rob; "Greenspan Is 1st Regulator To Endorse FCRA Extension, " The American Banker; February 13, 2003. Actually, Greenspan was quite vague, stating, "The system cannot function without ... the credit histories of individual borrowers, " he said. "I should certainly hope that it is maintained." He did not address accuracy and reliability problems, even though his own researchers had found such problems. (See Footnote 27, Chapter 10 on history) card credit customer service

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