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A good Q&A article from today's Seattle Times:
"A transposed Social Security number. One woman's financial information intertwined with her sister's. Late payments from long ago that live on as a low credit score.
These are among errors and issues Seattle Times readers have encountered as they picked through their credit reports recently.
Last month, Washington became one of the first states where residents are eligible to receive a free annual credit report from each of the three major credit bureaus: Equifax, Experian and TransUnion.
For some people, it was the first time they had ever seen their credit information: a detailed financial record used by lenders, landlords, cellphone companies and others to decide whether to extend credit, accept a new tenant, even make a job offer.
'It's very eye-opening,' said Norma Garcia of Consumers Union. 'When the public realizes how the information is tied to so many things in their lives, they're going to make noise about the things that don't work.'
Yes, they are.
More than three dozen readers wrote or called us to ask questions or express concerns about what they found recently in their credit files.
Some were startled to see all the details of their financial lives laid bare. Others were aggravated by how difficult it was to fix an error or wondered how to raise their credit score."
Credit Report Q&A from the Seattle Times
"Filing for bankruptcy protection, of course, isn't a debtor's only solution, or for that matter, the first step to take when bills get overwhelming. A bankruptcy will be posted on your credit report for years, and you'll end up paying higher interests rates when credit is extended to you. Prospective employers, too, sometimes review job candidates' credit reports and may frown on a bankruptcy.
Here are some steps to avoid filing, and what you can expect if you do file:
'The first thing you should do is stop charging, so you don't go any further in debt,' said John Ventura, a bankruptcy lawyer in Brownsville, Texas, and author of 'The Bankruptcy Kit.'
Next, take an assessment of income, living expenses and debt, and how much money you realistically can put toward bills each month. Sometimes getting a second job for a period can provide the extra cash to pay down bills faster, Ventura said.
Contact creditors if financial difficulties will cause you to get behind in payments. They don't want you filing for bankruptcy and often are willing to work out a repayment plan with you, experts said.
If you need help with budgeting or dealing with creditors, consider visiting a nonprofit consumer credit counseling agency, Ventura said.
Choose a credit counselor with care. Hundreds have sprung up in the past decade, particularly over the Internet, and sometimes charge hefty fees. Good agencies usually will charge no more than a small fee, spend time with you assessing your finances and emphasize budgeting and education, experts said.
Check consumer complaints about an agency through the Better Business Bureau or the state consumer protection office.
Typically, credit counseling agencies find that one-third of clients can resolve their financial problems with budgeting guidance, said Linus Campbell, director of education for the Consumer Credit Counseling Service of Maryland and Delaware. Another one-third usually end up in a debt management plan, where the counseling agency works with creditors to set up a repayment schedule, he said.
The rest have such serious problems that bankruptcy may be the solution, Campbell said.
How do you know if you're in this last category?
'If you reach a point where creditors threaten to take something away from you, threaten you with foreclosure on your home or repossession or garnishment of your wages,' Ventura said.
Once you file for bankruptcy, the court stops creditors from taking action against you, Ventura said.
Not all debt can be erased through bankruptcy. For instance, you can't get rid of alimony, child support and most taxes. There's also a high hurdle to overcome to wipe out federal student loans, so these usually must be repaid."
Full Article from the Centre Daily Times
"Tens of thousands of people are taking advantage of a new law allowing residents of the western United States to get a free copy of their credit report.
One month ago, the nation's three consumer credit reporting companies -- Equifax, Experian and TransUnion -- launched a Web site, www.annualcreditreport.com, where people can request one free credit report from each company every twelve months. The effort was required by federal legislation.
The free reports are being made available to consumers in phases, beginning in Utah and the West, according to the companies. The first phase, which began Dec. 1, includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, and Wyoming.
'In the first day, we delivered many tens of thousands in the first few hours, and so far the most popular way to get the reports has been via the Internet,' said Donald Girard, spokesman for Experian, in an interview with the Daily Herald. 'People seem to prize getting them quickly rather waiting 15 days to get them if they order by telephone or mail.'
Statistics about the number of people requesting the reports have not been broken down by state and it was not clear how many people from Utah have asked for their credit report, he said.
The reports will be made available to residents in remaining states as follows: mid-western states -- March 1, 2005; southern states -- June 1, 2005; and eastern states and other U.S. territories completing the roll-out on September 1, 2005."
Full article from The Daily Herald, Provo Utah
I hate to hear about large-scale identity theft, but I am very glad when they catch people
like this...
"The ringleader of a group that stole thousands of credit reports and used those identities to obtain about $200,000 in merchandise was sentenced Thursday to four years and seven months in federal prison.
Four cohorts recruited by Ronald Hyppolite got terms ranging from 33 months in prison to probation. Each of the five was ordered to pay $30,000 in restitution."
Read the article on Newsday.com
"Though identity theft using the Internet seems to get all the attention, most of the financial loss linked to fraud is still from offline crime, a new study shows.
Losses related to an average case of Internet-initiated fraud were $551, compared to $4,543 lost from fraud tracked back to paper statements, according to the 2005 Identity Fraud Survey conducted by the Better Business Bureau and Javelin Strategy & Research.
The survey, which follows an earlier study carried out by the Federal Trade Commission in 2003, indicated that Internet-related crimes are actually less severe, less costly and not as widespread as previously thought.
The amount of money lost to identity fraud in 2004 was $52.6 billion--about the same as in 2003. And the number of victims dropped to 9.3 million in 2004 from 10.1 million the year before."
Full article from News.com
In a recent Money Magazine article, credit expert Evan Hendricks, answers important questions about credit scores and credit reports. The following questions are answered:
- Is FACTA all that important? Will it make a big difference to most people?
- What should you do with your free credit reports?
- Can you clarify those terms? What's the difference between a credit report and a credit score?
- Do you have to check both?
- What do you do if you see a mistake?
- And what about checking your credit score?
- What are some common missteps that bring down your score?
- Can you really improve your credit score?
- Who looks at credit scores these days?
- Is there any way to keep your name off some of the mailing lists?
Also see our Credit FAQ for more answers to credit-related questions.
"A federal court judge has approved a $2.45 million settlement against a former Limerick auto dealer accused of identity theft.
The settlement compensates people for damage to their consumer credit reports caused by Benjamin J. Marchese III, former business manager of B.J. Marchese Auto World on West Ridge Pike in Limerick.
As a result of the class-action lawsuit brought by three people, hundreds of people who were victimized by Marchese III will receive in excess of $3,400 each, according to Mark A. Kearney, a Blue Bell lawyer who represented the suit. Checks are going to be sent out this week.
'This is a very significant day for the class because they are now going to receive the damages for each credit harm, after already having the bad credit stricken from their credit report,' Kearney said Wednesday."
Read entire article
This is a test post to officially launch this blog. Hello world!
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