As I have reported in the past, the careers that have spawned identity thieves has been many and diverse, from bankers to radio hosts, from nannies to car dealers. Well, here's a new one - postal worker.
A former mail carrier has been sentenced to serve 180 days at the Middlesex County Adult Correction Center for taking an ATM card from the mail and using it to withdraw $7,533 from an individual’s account, Middlesex County Prosecutor Bruce J. Kaplan announced Tuesday.
Jennifer James, 44, of Howard Street, New Brunswick, also was placed on probation for five years and was told to repay the victim’s bank, which covered the individual’s losses.
James was sentenced in New Brunswick by Superior Court Judge Frederick P. DeVesa on February 22, after she pleaded guilty on Nov. 17, to a count of identity theft.
The plea agreement was reached following negotiations with Middlesex County Assistant Prosecutor Manuel Sameiro.
James was arrested and charged following an investigation by New Brunswick Police Officer William Contreras, who determined the defendant took the ATM card from one of the residents on her route.
The investigation further determined James used the card to make cash withdrawals at various ATMs between April 2, and April 7, 2009.
James, who had worked as a mail carrier for 15 years, subsequently was dismissed from her job.
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February 26, 2010
Another Credit Repair Company Sued
According to a lawsuit filed by Colorado Attorney General John Suthers, a “credit repair” company has clearly violated federal and Colorado law by charging upfront fees and failing to disclose the total cost of its services.
The suit was filed in Denver District Court against Veracity Credit Consultants, a credit repair company that charges consumers initial fees of up to $99, and subsequent monthly fees as high as $79. Colorado law prohibits credit repair companies from charging fees until their services are complete.
The credit repair company of questionable character boasts of “results” and claims to be one of the best credit-repair outfits available.
According to the Colorado Attorney General, many of the company's claims are exaggerated at best. He specifically pointed to the company's claim that it can “optimize” consumers' credit reports by repairing or erasing bad credit as worthy of suspicion. Both the federal Fair Credit Reporting Act and Colorado Consumer Credit Reporting Act provide that credit bureaus can continue to report negative information about a consumer's credit for up to seven years. Veracity's claimed tactics apparently fly in the face of the FCRA and Colorado's Consumer Credit Reporting Act.
Veracity's website says that the company “uses knowledge of the law and years of experience perfecting a proven formula to provide results while protecting your rights.” Once a consumer opens an account, according to the site, Veracity “investigates and works with credit bureaus and creditors” and works “to remove errors, delete negatives, and highlight good accounts.”
Despite these impressive claims, Veracity's “client-services agreement” explicitly says that the company doesn't “represent or warrant that it will achieve specific results for client.”
I have yet to meet a credit repair company that is above board. Credit repair companies that are willing to try to remove accurate, non obsolete information from a consumer's credit report for a fee simply fly in the face of the entire credit reporting system and hurt those consumers who do pay their bills. Just as strongly as I feel that credit bureaus should correct errors on consumers' credit reports, I also believe that consumers should have to live with their legitimately bad credit for the seven years that the FCRA allows the reporting of adverse credit items. Credit repair companies are shady at best and those consumers who try to skirt the rules by using credit repair companies are, in my opinion, questionable as well.
The suit was filed in Denver District Court against Veracity Credit Consultants, a credit repair company that charges consumers initial fees of up to $99, and subsequent monthly fees as high as $79. Colorado law prohibits credit repair companies from charging fees until their services are complete.
The credit repair company of questionable character boasts of “results” and claims to be one of the best credit-repair outfits available.
According to the Colorado Attorney General, many of the company's claims are exaggerated at best. He specifically pointed to the company's claim that it can “optimize” consumers' credit reports by repairing or erasing bad credit as worthy of suspicion. Both the federal Fair Credit Reporting Act and Colorado Consumer Credit Reporting Act provide that credit bureaus can continue to report negative information about a consumer's credit for up to seven years. Veracity's claimed tactics apparently fly in the face of the FCRA and Colorado's Consumer Credit Reporting Act.
Veracity's website says that the company “uses knowledge of the law and years of experience perfecting a proven formula to provide results while protecting your rights.” Once a consumer opens an account, according to the site, Veracity “investigates and works with credit bureaus and creditors” and works “to remove errors, delete negatives, and highlight good accounts.”
Despite these impressive claims, Veracity's “client-services agreement” explicitly says that the company doesn't “represent or warrant that it will achieve specific results for client.”
I have yet to meet a credit repair company that is above board. Credit repair companies that are willing to try to remove accurate, non obsolete information from a consumer's credit report for a fee simply fly in the face of the entire credit reporting system and hurt those consumers who do pay their bills. Just as strongly as I feel that credit bureaus should correct errors on consumers' credit reports, I also believe that consumers should have to live with their legitimately bad credit for the seven years that the FCRA allows the reporting of adverse credit items. Credit repair companies are shady at best and those consumers who try to skirt the rules by using credit repair companies are, in my opinion, questionable as well.
Excellent post about how to build your credit report from scratch
Here's a link to an excellent article I read about how to build your credit report from scratch the right way! Here's the link - http://www.theoldarmy.com/2010/02/building-you-credit-score-from-scratch/comment-page-1/#comment-413.
Check it out.
Check it out.
February 22, 2010
Watch Out India!
Experian Credit Information Co has received the final approval from the Reserve Bank of India (RBI) to set up a credit bureau in the country, it announced on Thursday. The bureau will have to begin operations within six months.
“Now that we have the licence, we will begin the process of collecting credit data from lenders,” said Phil Nolan, the newly-appointed managing director of Experian Credit Bureau.
In November 2009, Experian formed a credit information company in India by roping in seven partners, including Axis Bank, Federal Bank, Indian Bank, Magma Fincorp, Punjab National Bank, Sundaram Finance and Union Bank of India.
At present, Credit Information Bureau (Cibil) is the only functional credit bureau in the country.
“Cibil has a 5-year headstart and that is a big advantage. But, the advantage for us is that data sharing principles have already been established in the country. This will make our job simpler,” said Nolan.
In April last year, RBI had granted an in-principal approval to four credit bureaus, including Cibil, Experian, Equifax Information Services and Higmark Credit Information Services.
In January this year, Equifax announced about setting up a credit bureau in joint venture with six Indian partners, including Bank of Baroda, Bank of India, Kotak Mahindra Prime, Religare Finvest, Sundaram Finance and Union Bank of India.
“Now that we have the licence, we will begin the process of collecting credit data from lenders,” said Phil Nolan, the newly-appointed managing director of Experian Credit Bureau.
In November 2009, Experian formed a credit information company in India by roping in seven partners, including Axis Bank, Federal Bank, Indian Bank, Magma Fincorp, Punjab National Bank, Sundaram Finance and Union Bank of India.
At present, Credit Information Bureau (Cibil) is the only functional credit bureau in the country.
“Cibil has a 5-year headstart and that is a big advantage. But, the advantage for us is that data sharing principles have already been established in the country. This will make our job simpler,” said Nolan.
In April last year, RBI had granted an in-principal approval to four credit bureaus, including Cibil, Experian, Equifax Information Services and Higmark Credit Information Services.
In January this year, Equifax announced about setting up a credit bureau in joint venture with six Indian partners, including Bank of Baroda, Bank of India, Kotak Mahindra Prime, Religare Finvest, Sundaram Finance and Union Bank of India.
February 19, 2010
New Bill to Require Free Credit Scores if Passed
Way to go U.S. Representative Steve Cohen, a Democrat from Memphis, TN. Even though I've never met him, I feel like I know Representative Cohen, since I live and grew up just an hour or so south of Memphis and our local TV stations all come out of Memphis. Cohen was a TN state representative but is now a freshman U.S. Representative, having won Harold Ford's old spot after he left it to unsuccessfully run for the U.S. Sentate.
Cohen has introduced H.R. 4538, a bill which would amend the FCRA to require that the credit bureaus provide consumers with their credit scores for free with their annual free credit reports. As I have reported on many times previously, every consumer is entitled to one free credit report from each of the three main credit bureaus (Equifax, Experian and Trans Union) each year. To get that report, consumers must use the website http://www.annualcreditreport.com/ or submit the request form via mail that can be found on that site as well as at my firm's website http://www.merkel-cocke.com/.
The primary problem with the free credit report is that it did not include your credit score. For a consumer to get their all important credit score, the consumer must pay extra (usually around $5) directly to the credit bureau. While the credit scores sold by the credit bureaus are not your true credit score, they are still good barometers for what your real credit score is.
Cohen's bill, if passed, would eliminate this problem with http://www.annualcreditreport.com/ and help consumers everywhere. Mr. Cohen, if you read this, please know I congratulate you on a very good bill and offer any help I might provide through my nationwide contacts to help get the bill passed. I know practically every attorney nationwide that handles FCRA litigation on a regular basis and would be happy to help drum up support for your bill.
Cohen has introduced H.R. 4538, a bill which would amend the FCRA to require that the credit bureaus provide consumers with their credit scores for free with their annual free credit reports. As I have reported on many times previously, every consumer is entitled to one free credit report from each of the three main credit bureaus (Equifax, Experian and Trans Union) each year. To get that report, consumers must use the website http://www.annualcreditreport.com/ or submit the request form via mail that can be found on that site as well as at my firm's website http://www.merkel-cocke.com/.
The primary problem with the free credit report is that it did not include your credit score. For a consumer to get their all important credit score, the consumer must pay extra (usually around $5) directly to the credit bureau. While the credit scores sold by the credit bureaus are not your true credit score, they are still good barometers for what your real credit score is.
Cohen's bill, if passed, would eliminate this problem with http://www.annualcreditreport.com/ and help consumers everywhere. Mr. Cohen, if you read this, please know I congratulate you on a very good bill and offer any help I might provide through my nationwide contacts to help get the bill passed. I know practically every attorney nationwide that handles FCRA litigation on a regular basis and would be happy to help drum up support for your bill.
Percentage of Americans falling behind on credit cards has leveled off
Good news for the economy -
The percentage of Americans falling behind on credit card bills stabilized in January, according to data from the six major lenders, signaling that U.S. consumer credit woes may be leveling off.The rest of the article can be found here - http://www.reuters.com/article/idUSTRE61F4JB20100216
February 18, 2010
Credit Denial Codes
You would think that its is the credit lender that comes up with the reasons why it does not want to grant your credit application. Wrong. The lender makes the decision but it is the credit bureaus that provide the reasons why your credit application is denied to the lender which the lender then inputs on the adverse action letter they send you informing you that your application was denied. Every time a credit bureau sends out your credit report to a third party, it includes four reasons why you should be denied credit, no matter how good your credit history is. Even if your payment history is flawless and you have a "perfect" credit score, the credit bureaus still provide 4 reasons you shouldn't get credit. Crazy, right?
The four reasons come in the form of four code numbers. Here is a list of what those code numbers mean -
EQUIFAX – BEACON Score Codes
39 – serious delinquency
38 – serious delinquency, and derogatory public record or collection filed
34 – amount owed on delinquent accounts
33 – proportion of loan balances to loan amounts is too high
32 – lack of recent information on installment loan accounts or lack of installment loan accounts
31 – too few accounts with recent payment information
30 – time since most recent account opening is too short
28 – number of accounts established
24 – no recently reported revolving balances
23 – number of bank or national revolving accounts with balances
22 – accounts not paid as agreed, public record, or collection agency filing (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – too few accounts currently paid as agreed
18 – number of accounts with delinquency currently or in the past not paid as agreed
17 – no non-mortgage account balances or non-mortgage balances not recently reported
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent (or unknown) or trade narrative reported
12 – length of time revolving accounts have been established
11 – amount owed on revolving account is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – recent payment history is too new to rate
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – too many bank or national revolving/open accounts
03 – too few bank or national revolving/open accounts
02 – level of delinquency on accounts
01 – amount owed on accounts is too high
O – beacon not available, no recently reported account information
FA – number of inquiries adversely affected the score, but not significantly
TRANS UNION – EMPIRICA Score Codes
42 – length of time since most recent consumer finance company account established(**factor not currently in use)
41 – no recent retail balances (**factor not currently in use)40 – derogatory public record or collection filed
39 – serious delinquency
38 – serious delinquency, and public record or collection filed
36 – payments due on accounts (**factor not currently in use)
31 – amount owed on delinquent accounts (**factor not currently in use)
30 – time since most recent account opening is too short
29 – no recent bankcard balances
28 – number of established accounts
27 – too few accounts currently paid as agreed
26 – number of bank revolving or other revolving accounts (**factor not currently in use)
24 – no recent revolving balances
23 – number of bank or national revolving accounts with balances
22 – serious delinquency derogatory public record or collection filed (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – Date of last inquiry too recent
18 – number of accounts with delinquency
17 – no recent non-mortgage balance information
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent or unknown
12 – length of time revolving accounts have been established
11 – amount owed on revolving accounts is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – account payment history
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – lack of recent installment loan information
03 – proportion of loan balances to loan amounts is too high
02 – level of delinquency on accounts
01 – amount owed on accounts too high
00 – no adverse factor
MODEL NOT SCORED: INSUFFICIENT CREDIT message occurs when a credit file does not contain
a trade line opened for at least 6 months and trade line updated within the last 6 months.
FA – in addition to the factors listed above, the number of inquiries on the consumer’s credit file has adversely affected the credit score.
MODEL NOT SCORED: DECEASED message occurs when the subject’s Social Security Number matches the Social Security Administration’s deceased Social Security Number file, or is reported as deceased by a credit grantor.
EXPERIAN – FAIR ISAAC Score Codes
40 – derogatory public record or collection field
39 – serious delinquency
38 – serious delinquency and public record or collection filed
37 – number of finance company accounts established relative to length of finance history
36 – length of time open installment loans have been established
33 – proportion of current loan balance to original loan amount
32 – no recent installment loan information
31 – too few accounts with recent payment information
30 – length of time since most recent account established
28 – number of accounts established
26 – number of revolving accounts
25 – length of installment loan history
24 – lack of recently reported balances on revolving/open accounts
22 – account(s) not paid as agreed and/or legal item filed (FORECLOSURE)
21 – amount past due to accounts
20 – length of time since legal item filed or collection item reported
18 – number of accounts delinquent
17 – no recent (non-mortgage) accounts balance information
16 – insufficient or lack of revolving account information
15 – insufficient or lack of bank revolving account information
14 – length of time accounts have been established
13 – length of time (or unknown time) since account delinquent
12 – length of revolving account history
11 – current balances on revolving accounts
10 – proportion of balance to high credit on bank revolving or all revolving accounts
09 – number of accounts opened within the last 12 months
08 – number of recent inquiries
07 – Unable to evaluate recent payment history
06 – number of finance company accounts
05 – number of accounts with balances
04 – Too many bank revolving accounts
03 – Too few bank revolving accounts
02 – delinquency reported on accounts
01 – current balances on accounts
Exclusion Messages
9003 – Experian/Fair Isaac Score Not Available Due to Lack of Credit History – The Profile report does not contain any trade lines which have been open for at least six months
9002 – Experian/Fair Isaac Score Not Available Due to Model Exclusion Criteria – The Profile report does not contain any trade line which satisfies both of the following:
1. Status date within the last six months, or a balance within the last six months if the status code is not “11″ (“Current account”)
2. Does not contain disputed information
9001 – Experian/Fair Isaac Score Not Available Due to Report of “Deceased” Status – The Profile report contains a subscriber transaction with a status code of “21″ or an association code of “X” indicating the consumer is deceased
9000 – Experian/Fair Isaac Score Not Available Due to System File Size Parameters – The Profile report contains more than 100 subscriber trade and inquiry transactions
The four reasons come in the form of four code numbers. Here is a list of what those code numbers mean -
EQUIFAX – BEACON Score Codes
39 – serious delinquency
38 – serious delinquency, and derogatory public record or collection filed
34 – amount owed on delinquent accounts
33 – proportion of loan balances to loan amounts is too high
32 – lack of recent information on installment loan accounts or lack of installment loan accounts
31 – too few accounts with recent payment information
30 – time since most recent account opening is too short
28 – number of accounts established
24 – no recently reported revolving balances
23 – number of bank or national revolving accounts with balances
22 – accounts not paid as agreed, public record, or collection agency filing (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – too few accounts currently paid as agreed
18 – number of accounts with delinquency currently or in the past not paid as agreed
17 – no non-mortgage account balances or non-mortgage balances not recently reported
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent (or unknown) or trade narrative reported
12 – length of time revolving accounts have been established
11 – amount owed on revolving account is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – recent payment history is too new to rate
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – too many bank or national revolving/open accounts
03 – too few bank or national revolving/open accounts
02 – level of delinquency on accounts
01 – amount owed on accounts is too high
O – beacon not available, no recently reported account information
FA – number of inquiries adversely affected the score, but not significantly
TRANS UNION – EMPIRICA Score Codes
42 – length of time since most recent consumer finance company account established(**factor not currently in use)
41 – no recent retail balances (**factor not currently in use)40 – derogatory public record or collection filed
39 – serious delinquency
38 – serious delinquency, and public record or collection filed
36 – payments due on accounts (**factor not currently in use)
31 – amount owed on delinquent accounts (**factor not currently in use)
30 – time since most recent account opening is too short
29 – no recent bankcard balances
28 – number of established accounts
27 – too few accounts currently paid as agreed
26 – number of bank revolving or other revolving accounts (**factor not currently in use)
24 – no recent revolving balances
23 – number of bank or national revolving accounts with balances
22 – serious delinquency derogatory public record or collection filed (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – Date of last inquiry too recent
18 – number of accounts with delinquency
17 – no recent non-mortgage balance information
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent or unknown
12 – length of time revolving accounts have been established
11 – amount owed on revolving accounts is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – account payment history
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – lack of recent installment loan information
03 – proportion of loan balances to loan amounts is too high
02 – level of delinquency on accounts
01 – amount owed on accounts too high
00 – no adverse factor
MODEL NOT SCORED: INSUFFICIENT CREDIT message occurs when a credit file does not contain
a trade line opened for at least 6 months and trade line updated within the last 6 months.
FA – in addition to the factors listed above, the number of inquiries on the consumer’s credit file has adversely affected the credit score.
MODEL NOT SCORED: DECEASED message occurs when the subject’s Social Security Number matches the Social Security Administration’s deceased Social Security Number file, or is reported as deceased by a credit grantor.
EXPERIAN – FAIR ISAAC Score Codes
40 – derogatory public record or collection field
39 – serious delinquency
38 – serious delinquency and public record or collection filed
37 – number of finance company accounts established relative to length of finance history
36 – length of time open installment loans have been established
33 – proportion of current loan balance to original loan amount
32 – no recent installment loan information
31 – too few accounts with recent payment information
30 – length of time since most recent account established
28 – number of accounts established
26 – number of revolving accounts
25 – length of installment loan history
24 – lack of recently reported balances on revolving/open accounts
22 – account(s) not paid as agreed and/or legal item filed (FORECLOSURE)
21 – amount past due to accounts
20 – length of time since legal item filed or collection item reported
18 – number of accounts delinquent
17 – no recent (non-mortgage) accounts balance information
16 – insufficient or lack of revolving account information
15 – insufficient or lack of bank revolving account information
14 – length of time accounts have been established
13 – length of time (or unknown time) since account delinquent
12 – length of revolving account history
11 – current balances on revolving accounts
10 – proportion of balance to high credit on bank revolving or all revolving accounts
09 – number of accounts opened within the last 12 months
08 – number of recent inquiries
07 – Unable to evaluate recent payment history
06 – number of finance company accounts
05 – number of accounts with balances
04 – Too many bank revolving accounts
03 – Too few bank revolving accounts
02 – delinquency reported on accounts
01 – current balances on accounts
Exclusion Messages
9003 – Experian/Fair Isaac Score Not Available Due to Lack of Credit History – The Profile report does not contain any trade lines which have been open for at least six months
9002 – Experian/Fair Isaac Score Not Available Due to Model Exclusion Criteria – The Profile report does not contain any trade line which satisfies both of the following:
1. Status date within the last six months, or a balance within the last six months if the status code is not “11″ (“Current account”)
2. Does not contain disputed information
9001 – Experian/Fair Isaac Score Not Available Due to Report of “Deceased” Status – The Profile report contains a subscriber transaction with a status code of “21″ or an association code of “X” indicating the consumer is deceased
9000 – Experian/Fair Isaac Score Not Available Due to System File Size Parameters – The Profile report contains more than 100 subscriber trade and inquiry transactions
February 17, 2010
Five Secrets to your Credit Report
From creditdebt.toughchild.com -
If you’ve ever applied for a loan or credit card, chances are your lender acquired and examined a copy of your credit report before deciding whether or not to grant you credit.
Your “Credit Report” is a record of your credit history and it’s prepared by agencies called “Credit Bureaus”, or “Consumer Reporting Agencies.” These are private organizations and have no affiliation with the United States (or any) government. There are 3 major credit bureaus in the United States (2 in Canada) and their names are Experian, EquiFax, and Trans Union.
Did you know that credit reporting is a multi-billion dollar a year industry? It’s true! The credit bureaus are for-profit organizations that generate billions of dollars in revenue each year from selling copies of credit reports to creditors and mailing lists.
Your credit report affects more than your financial life. It could affect your education, career, and even your relationships. Your credit report is used not only by lenders and creditors, but also by auto, life, and home insurers, future employers, and even some educational institutions. It affects the interest rates you’ll pay on everything!
So as you can see, your credit report can have a critical impact on many facets of your life. For example, because of a bad credit report you could be forced to pay tens of thousands of dollars MORE in loan interest over the life of your home mortgage. This is no exaggeration!
Since the credit bureaus prepare and distribute your credit report to lenders, they clearly wield a great deal of power over both your financial and personal life. But it would be a grave mistake to be intimidated by them, or to think that you have no choice but to live with the negative effects of a bad credit report.
In fact, there’s plenty you can do!
Always remember; Knowledge is power! There’re a few facts the credit bureaus would rather you don’t know. Let’s take a look at them, and you’ll see why.
1. Credit reports are filled with errors!
It will probably astonish you to learn the percentage of credit reports that contain errors. While there seems to be some disagreement, estimates range from 1 out of every 3 (on the low end) to as high as 90%! Here’s a “run down” on error estimates.
Percentage of Credit Reports Than Contain Mistakes
Attorney General of NY 1/3
Consumers Union 48%
US Congress 1/2
Charles Givens Organization 90%
So no matter who you believe, it’s clear that way too many credit reports have errors. So even if you think you have good credit, it might be well worth your while to get a copy of your credit report and take a careful look at it.
2. The law is on your side!
In 1972 Congress passed the Fair Credit Reporting Act (FCRA) to curb abuses by the credit bureaus. The FCRA is the governing federal law on the issue of credit reporting.
Under the FCRA, you have the right to dispute negative information in your credit report. The credit bureaus then have 30 days to verify the disputed information with the creditor. If they cannot (or do not) verify the disputed information within 30 days, it must be deleted from your credit report.
3. Even accurate data in your credit report must be deleted if it’s not verified.
If you’ve done any research into credit repair you’ve no doubt run across statements to the effect of “Negative data in your credit report that is accurate cannot be removed.” As stated above, the FCRA stipulates that any disputed information must be verified within 30 days, or it must be deleted. The “burden of proof” (in a manner of speaking), is on the credit bureaus.
4. Credit repair DOES WORK in most cases!
You’ll hear all kinds of opinions as to whether “credit repair” (i.e. efforts to improve your credit report) can be successful. The truth is, credit repair doesn’t always work perfectly. But in almost every case the process of credit repair will result in at least SOME improvement in your credit score, and most often that improvement is substantial. So credit repair does work!
Now you may be wondering why repairing your credit score would be of any concern to the credit bureaus. After all, don’t they make money by compiling and distributing credit reports regardless of whether those reports are negative or positive?
Well, yes they do, BUT…they also make money (a GREAT DEAL of money) selling names of people with poor credit, to creditors who have a specific interest in those people.
So why would some creditors want to bother with people who have poor credit? Because they know they can charge higher interest rates to those people, because the “bad credit risks” have no choice but to pay those exorbitant rates or forgo credit altogether!
Besides, investigating disputed information costs the credit bureaus time, manpower, and money. They have nothing to gain, and plenty to lose, when people take the initiative and dispute negative information on their credit report.
5. It’s perfectly legal to hire third party help to repair your credit.
There are plenty of “Credit Repair Agencies” who will help you repair your credit. But if a credit bureau even suspects you’re using such an agency, it’s likely they’ll try to discourage you from doing so. In some cases they’ll even go so far as to send you a letter stating that use of such agencies is illegal.
Such statements are (to put it as politely as possible) garbage! In fact there are laws that regulate such agencies. Now laws don’t exist to regulate illegal activity, except to ban it! When was the last time you saw laws that regulate what cocaine dealers must do to operate within the law?
Once again, repairing a bad credit report just isn’t in the best interest of the major credit bureaus. But unless you happen to be the CEO of one of those bureaus, the most important question as far as you’re concerned is “What’s in MY best interest?”
First of all, get a copy of your credit report and examine it. You can get a free copy of your report at http://www.annualcreditreport.com.
Secondly, take steps to improve your credit report. You can go about it in one of two ways.
1. Hire third party help.
If repairing your own credit report sounds too intimidating, there are plenty of credit repair agencies that will do it for you. But if you take this approach, there are three things you need to know.
First, they’re not cheap. Expect to pay from $2,500 to $5,000 for an attorney or $795 to $2,000 or more for a credit repair agency. Secondly, they don’t always do it right! Some will manage to get the negative data on your credit report removed while actually doing damage to your “credit score” (a calculated number used by creditors to evaluate you credit worthiness.) Finally, many are outright scams!
That’s not to say you shouldn’t hire third party help. If you do your “home work,” ask for references, and carefully select a reputable credit repair agency, you’ll be much better off than if you had done nothing. Still, if you’re willing to do a little work, there’s a much better alternative.
2. Repair you own credit report.
Anyone can fix their own credit report. If you can write a few letters, address, stamp, and mail them you can repair your own credit. There’re plenty of good books available that can walk you thought the whole procedure, and once you’re done a little study, you’ll be surprised at how simple the process is.
Bad credit will cost you many thousands of dollars and limitless anxiety. Even if you have fair credit, fixing you credit could still save you thousands in interest payments over the years.
Get a good book on the topic of credit repair, and get started fixing your credit report today! And don’t be intimidated by the credit bureaus. Remember, the law is on YOUR side!
New case law out of the Seventh Circuit Court of Appeals
According to a recent ruling by the United States Court of Appeals for the Seventh Circuit, sovereign immunity does not apply to protect the federal government from credit reporting violations.
The federal government is protected against individual lawsuits in all cases except where Congress explicitly states the immunity has been lifted. The question in the case, Talley v. United States Department of Agriculture, was whether Congress waived the federal government’s immunity in the Fair Credit Reporting Act.
The FCRA was amended in 1996 to apply to all "persons", with no mention either way as to whether its definition of a "person" included the federal government. The U.S. Department of Agriculture argued that Congress did not intend to do away with sovereign immunity when it amended the FCRA.
“You are asking us to presume that Congress is a bunch of blithering idiots,” responded Chief Judge Frank Easterbrook. He added that “Congress is presumed to know what is in the statute books when it amends them.” He added that “because Congress need not add ‘we really mean it!’ to make statues effectual, and because courts don’t interpret statues to blot out whole phrases, that line of argument has poor prospects.”
The federal government is protected against individual lawsuits in all cases except where Congress explicitly states the immunity has been lifted. The question in the case, Talley v. United States Department of Agriculture, was whether Congress waived the federal government’s immunity in the Fair Credit Reporting Act.
The FCRA was amended in 1996 to apply to all "persons", with no mention either way as to whether its definition of a "person" included the federal government. The U.S. Department of Agriculture argued that Congress did not intend to do away with sovereign immunity when it amended the FCRA.
“You are asking us to presume that Congress is a bunch of blithering idiots,” responded Chief Judge Frank Easterbrook. He added that “Congress is presumed to know what is in the statute books when it amends them.” He added that “because Congress need not add ‘we really mean it!’ to make statues effectual, and because courts don’t interpret statues to blot out whole phrases, that line of argument has poor prospects.”
February 16, 2010
Potential Blue Cross ID Theft Victims Top 500,000
Look out, former and current members of Blue Cross and Blue Shield of Tennessee. Another 301,628 of you are going to find out shortly that you may be another victim of identity theft. Don't worry, you've got company, as 220,133 people were already notified of their potential fate.
Last year, computer hard drives were stolen that happened to contain the personal identifiers and other information regarding over 500,000 members of Blue Cross/Blue Shield of Tennessee.
Blue Cross is offering free credit and ID remediation to those potentially affected. Whoop tee do. That's like offering a condom to a pregnant woman. Nice gesture, but a little bit ineffective at this point.
Blue Cross should be offering these people cold hard cash for the worry and stress of potentially being a victim of identity theft. These people paid good money to Blue Cross to insure them. Blue Cross, they trusted you to keep their personal identifiers and medical information secure. But you didn't. Now over 500,000 people are at risk of one of the worst things that can happen to anyone, losing their good name due to the fault of another.
I bet if the big wigs at Blue Cross had their identity stolen, they would be the first to balk at "free credit and ID remediation" and demand real justice. Now lets see if they will step up for their customers.
Last year, computer hard drives were stolen that happened to contain the personal identifiers and other information regarding over 500,000 members of Blue Cross/Blue Shield of Tennessee.
Blue Cross is offering free credit and ID remediation to those potentially affected. Whoop tee do. That's like offering a condom to a pregnant woman. Nice gesture, but a little bit ineffective at this point.
Blue Cross should be offering these people cold hard cash for the worry and stress of potentially being a victim of identity theft. These people paid good money to Blue Cross to insure them. Blue Cross, they trusted you to keep their personal identifiers and medical information secure. But you didn't. Now over 500,000 people are at risk of one of the worst things that can happen to anyone, losing their good name due to the fault of another.
I bet if the big wigs at Blue Cross had their identity stolen, they would be the first to balk at "free credit and ID remediation" and demand real justice. Now lets see if they will step up for their customers.
February 15, 2010
Identity Theft Ruins Man's Life
Here's a pretty bad but fairly typical account of what an identity theft victim goes through -
In fewer than six months, some $900,000 in merchandise, gambling and telephone-services charges were siphoned out of his debit card. His attempts to salvage his finances have cost him nearly $100,000 and have bled dry his savings and retirement accounts. His credit score, once a strong 780, has been decimated. And his identity -- Social Security number, address, phone numbers, even historical information -- is still being used in attempts to open credit cards and bank accounts.For the rest of the article, see here - http://www.marketwatch.com/story/the-rise-of-identity-theft-one-mans-nightmare-2010-02-10
"I have no identity," said Crouse, 56. "I have no legacy. My identity is public knowledge and even though it's ruined, they're still using it.
"It really ruined me," he said. "It ruined me financially and emotionally."
Crouse is among the 11.1 million adults -- one in every 20 U.S. adults -- last year who have the dubious distinction of breaking the record of the number of identity-fraud victims in the U.S., according to a recent study by Javelin Strategy and Research. That figure is up 12% over 2008 and is 37% ahead of 2007. The cost to the victims: a collective $54 billion.
"The odds have never been higher for becoming a fraud victim," said James Van Dyke, Javelin president and founder. "It's an easy crime to perpetrate, a crime that's almost impossible to catch when done in a sophisticated manner and a crime in which enforcement is very limited."
Endless paperwork
Crouse can attest to that. Once an avid fan of online shopping and banking, the Bowie, Md., resident would auction on eBay.com, download songs from iMesh.com and use his ATM card like a credit card.
He first noticed suspicious activity in his account in February of 2009 for small charges of $37 or $17.98. He had a full-time job then and was spending out of an account that generally held $30,000.
"All of a sudden it really got bad," he said. "In August the charges hit big time -- $600, $500, $100, $200 - all adding up from $2,800 to $3,200 in one day."
He called his bank immediately and started what began a tiresome process of filling out what he said finally amounted to about 20 affidavits swearing that he was not responsible for the charges. He said one day he filled out an affidavit about a charge and the next day the bank had accepted similar charges approaching $4,000.
"At that point I was going to the bank every day and looking at everything," he said. He had the time then. Five months before that he had been laid off his $180,000 a year construction-industry job.
Now he was in a double bind: His $2,300 a week net income had dwindled to $780 in unemployment checks every two weeks and his accounts were getting drained daily -- even after he closed his debit account.
He opened a new account at a new bank and the next day both accounts got hit with a $1,100 charge. The new bank told him it was keystroke malware that had likely done him in. Someone had hacked into one of the sites he visited regularly, his computer got infected and picked up all his personal information by tracking every key he struck.
While much of the fraud came from online purchases and at gambling sites, there were new accounts opened in different names but linked to his bank account. There was one purchase of a plasma TV from a Best Buy in Florida that was shipped to a Brooklyn. N.Y., address. In another case a woman in North Carolina was writing out checks tied to his account.
"It was nasty," he said, admitting that he even contemplated suicide. "I just couldn't take it. I didn't feel like a man anymore. I was violated and I didn't know what to do."
High-value targets
Identity thieves steal mostly through two means, according to Michael Stanfield, chief executive of Intersections Inc., a risk-management firm. They take an established address and phone number of an identity that "has some value," he said, like a doctor or a lawyer. In many instances, they can go to the Internet and acquire the matching Social Security number for as little as $50. They then have enough information to get an address changed with your bank account or a credit card account. They apply for new accounts as you.
February 12, 2010
Experian kills off another consumer
What's with these credit bureaus? One of the many recurring problems with the credit bureaus is that they often report consumers as deceased when they are very much still alive. But don't let a little thing like a pulse contradict a credit bureau's pronouncement of death! Here's a quote from an article about yet another "deceased" consumer with a heart beat -
Kerr was finally able to resurrect her mother after a local TV station got involved and put some heat on the situation. Good for the tv stations, but, really folks, it shouldn't take the threat of bad press to get a simple to fix error fixed. Guess she should have use the magic words "its only a flesh wound"!
Here's a link to the full article - http://abclocal.go.com/kgo/story?section=news/7_on_your_side&id=7270195
"They said, 'I'm really sorry, but we can't process this loan any further because we have a report declaring you deceased," Julie Kerr recalled.SO even though the lender knew this "happy-go-lucky chatterbox" was alive, they believed Experian's claim she was dead over the lady's own beating heart. And, of course, Experian refused to fix the problem, thereby violating the Fair Credit Reporting Act, which is a pretty common occurrence at Experian.
No one was more surprised to hear the report of Julie's mother's death than Julie's mother herself, Ann Howe of Bothel, Washington.
"I just said, 'What? What are they talking about?' I said, 'I'm certainly alive. My doctor knows I'm alive," Howe said.
Howe indeed is alive and well, but she could not get anybody to believe her even though she goes into Bank of America all the time.
"Everybody knows my mom there," said Kerr. "My mom's this happy-go-lucky chatterbox."
"Bank of America knew that I was coming in there. I have automatic deposits that go in there," Howe said.
However, seeing was not believing. So, Howe sent an official notarized letter to Bank of America saying, "The report of my demise is inaccurate information."
"We understand she's alive. We understand it's a mistake, but because we can't get a credit score from Experian, there's nothing we can do," Kerr said.
Kerr was finally able to resurrect her mother after a local TV station got involved and put some heat on the situation. Good for the tv stations, but, really folks, it shouldn't take the threat of bad press to get a simple to fix error fixed. Guess she should have use the magic words "its only a flesh wound"!
Here's a link to the full article - http://abclocal.go.com/kgo/story?section=news/7_on_your_side&id=7270195
2010 Census - stand up and be counted ... but make sure its legit first!
A buddy of mine forwarded the following to me regarding tips to avoid census fraud -
AVOID ID THEFT DURING THE 2010 CENSUS
Zander Insurance wants you to be aware of scam artists using the 2010 Census as a means to steal your personal information.
THE CENSUS will be mailed to 134 million households on March 1. The form has 10 questions about your age, date of birth, race and whether you rent or own a home. It does not ask for your social security number or information about your taxes and income. If you do not return a completed Census Form by April 1, it is likely that a Census Taker will either call you or come to your door to obtain the information.
BE CAUTIOUS AND USE THE FOLLOWING SAFETY TIPS:
1. The Census does not ask for your Social Security Number – do not give that information out to anyone claiming to be with the Census Bureau.
2. Never invite a Census Taker into your home.
3. All Census Takers carry official government badges marked with just their name, a Department of Commerce watermark, and an expiration date.
4. The Census Worker is supposed to provide you with a letter from the Census Director on official letterhead.
5. The Census Bureau will not contact you via email.
6. Do not click on any websites that pop up disguised as a census survey. The Census Bureau does not solicit information over the internet.
7. The Census does not ask for credit card or bank account information.
Visit the U.S. Census website at http://www.2010.census.gov/ or call the U.S. Census Telephone Questionnaire Assistance Center at 1-866-872-6868 for additional information.
Its tax time ... which means its time for tax time scams!
In my line of work as a consumer attorney, I see the tragic results of a lot of different types of scams. One type of scam that I am seeing more of is scams involving tax returns.
A couple of tips -
First, never sign a blank return. That's just dumb. That return can then be used to send your refund to some other person's account or some other similar scam.
Second, never pay someone a percentage of your refund to prepare your tax return. That is also silly and usually means the tax return preparer is less than above board. A legit tax preparer will charge you a flat fee or a set hourly fee.
Lastly, never use any tax preparer that tries to get you to make false or misleading deductions or do anything else that's not totally accurate. Doing so just brings the IRS to your door and where will that tax preparer be? I don't know but neither will you, so you will be on your own. Reminds me of a cartoon I saw one time about a guy visiting his doctor. He asks the doctor to recommend a good laxative. The doctor replies "A letter from the IRS always works for me."
Don't be that guy.
A couple of tips -
First, never sign a blank return. That's just dumb. That return can then be used to send your refund to some other person's account or some other similar scam.
Second, never pay someone a percentage of your refund to prepare your tax return. That is also silly and usually means the tax return preparer is less than above board. A legit tax preparer will charge you a flat fee or a set hourly fee.
Lastly, never use any tax preparer that tries to get you to make false or misleading deductions or do anything else that's not totally accurate. Doing so just brings the IRS to your door and where will that tax preparer be? I don't know but neither will you, so you will be on your own. Reminds me of a cartoon I saw one time about a guy visiting his doctor. He asks the doctor to recommend a good laxative. The doctor replies "A letter from the IRS always works for me."
Don't be that guy.
February 10, 2010
Strategic defaults are becoming more and more common
A research study using 24 million individual credit files found something surprising - that consumers with higher credit scores are more likely to "walk away" from a mortgage than consumers with lower credit scores. In fact, consumers with higher scores are 50% more likely to strategically default on their mortgage than consumers with lower credit scores.
The research study found some interesting things, such as the following:
1. The number of strategic defaults is far beyond most industry estimates -- 588,000 nationwide during 2008, more than double the total in 2007, representing 18% of all serious delinquencies that extended for more than 60 days in last year's fourth quarter.
2. Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they've fallen behind on other accounts.
3. Strategic defaults are heavily concentrated in negative-equity markets where home values zoomed during the boom and have cratered since 2006. In California last year, the number of strategic defaults was 68 times higher than it was in 2005. In Florida it was 46 times higher. In most other parts of the country, defaults were about nine times higher in 2008 than in 2005.
4. Two-thirds of strategic defaulters have only one mortgage -- the one they're walking away from on their primary homes. Individuals who have mortgages on multiple houses also have a higher likelihood of strategic default, but researchers believe that many of these walkaways are from investment properties or second homes.
5. Homeowners with large mortgage balances generally are more likely to pull the plug than those with lower balances. Similarly, people with credit ratings in the two highest categories measured by VantageScore -- a joint scoring venture created by Experian and the two other national credit bureaus, Equifax and TransUnion -- are far more likely to default strategically than people in lower score categories.
6. People who default strategically and lose their houses appear to understand the consequences of what they're doing and in fact, strategic defaulters are clearly sophisticated, based on the patterns of selective payments observable in their credit files. For example, they tend not to default on home equity lines of credit until after they bail out on their main mortgages, sometimes to draw down more cash on the equity line.
The research study found some interesting things, such as the following:
1. The number of strategic defaults is far beyond most industry estimates -- 588,000 nationwide during 2008, more than double the total in 2007, representing 18% of all serious delinquencies that extended for more than 60 days in last year's fourth quarter.
2. Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they've fallen behind on other accounts.
3. Strategic defaults are heavily concentrated in negative-equity markets where home values zoomed during the boom and have cratered since 2006. In California last year, the number of strategic defaults was 68 times higher than it was in 2005. In Florida it was 46 times higher. In most other parts of the country, defaults were about nine times higher in 2008 than in 2005.
4. Two-thirds of strategic defaulters have only one mortgage -- the one they're walking away from on their primary homes. Individuals who have mortgages on multiple houses also have a higher likelihood of strategic default, but researchers believe that many of these walkaways are from investment properties or second homes.
5. Homeowners with large mortgage balances generally are more likely to pull the plug than those with lower balances. Similarly, people with credit ratings in the two highest categories measured by VantageScore -- a joint scoring venture created by Experian and the two other national credit bureaus, Equifax and TransUnion -- are far more likely to default strategically than people in lower score categories.
6. People who default strategically and lose their houses appear to understand the consequences of what they're doing and in fact, strategic defaulters are clearly sophisticated, based on the patterns of selective payments observable in their credit files. For example, they tend not to default on home equity lines of credit until after they bail out on their main mortgages, sometimes to draw down more cash on the equity line.
February 09, 2010
Illinois Federal Judge rules that FACTA does not apply to e-merchants
In the case of Shlahtichman v. 1-800 Contacts, Inc., U.S. District Judge John Darrah ruled that FACTA's truncation requirements for "printed" receipts does not apply to e-mails sent to purchasers by internet merchants.
The theory, according to Judge Darrah, behind FACTA's requirement that credit card numbers and expiration dates be truncated on receipts, is that such truncation would help prevent "low tech" types of identity theft such as dumpster diving. According to Judge Darrah, an e-mail sent to a e-purchaser does not fall under the definition of "printed receipt" since its not actually printed, merely e-mailed. While that is true, I disagree that an e-mail is not a risk for identity theft. Why should FACTA not try to prevent high tech identity theft as well?
While Judge Darrah is technically correct in his ruling, Congress should take note of his ruling and amend the law to fix this loophole and, in the age of the information superhighway, help protect us all, not just those who do not partake of e-commerce.
The theory, according to Judge Darrah, behind FACTA's requirement that credit card numbers and expiration dates be truncated on receipts, is that such truncation would help prevent "low tech" types of identity theft such as dumpster diving. According to Judge Darrah, an e-mail sent to a e-purchaser does not fall under the definition of "printed receipt" since its not actually printed, merely e-mailed. While that is true, I disagree that an e-mail is not a risk for identity theft. Why should FACTA not try to prevent high tech identity theft as well?
While Judge Darrah is technically correct in his ruling, Congress should take note of his ruling and amend the law to fix this loophole and, in the age of the information superhighway, help protect us all, not just those who do not partake of e-commerce.
Alaska employees at risk of identity theft - push Equifax to establish call center
From newsminer.com - 77,000 current and retired public employees from 2003-2004 at risk of identity theft due to security breach by PriceWaterhouseCoopers. Read on.
The 77,000 current and retired public employees who may be at risk for identity theft because of information lost by a state contractor should receive letters within the next week or so with details on what to do next. The state is pressing a major credit agency to get a call center in place, perhaps by Feb. 15, to process individual cases.
There have been no reports yet of cases of identity theft resulting from the loss of the prices information, but unless or until PriceWaterhouseCoopers recovers the lost information, the risk remains.
The names, Social Security numbers and birth dates of employees or former employees who were in the Public Employees Retirement System and the Teachers Retirement System in 2003-04 were lost by PricewaterhouseCoopers in Chicago in early December.
The company, which failed to tell the state about its mistake for nearly two months, said in late January that it “regrets that the information was misplaced” and that it has made a “significant commitment” in trying to protect the people at risk.
The information was given to the accounting firm for analysis of financial models which are part of building the state’s lawsuit against Mercer, the company that the state claims mishandled the investments in the two retirement systems, creating losses in the billions.
Part of the settlement is that PricewaterhouseCoopers is to provide credit protection and safeguards for the 77,000 people, who are state and local government workers, teachers, university employees and retirees.
Department of Administration Commissioner Annette Kreitzer said the credit rating agency Equifax is being pressed to get the call center in place as soon as possible that will allow individuals to check on their records and take precautionary measures.
Equifax says it won’t be ready with its call center until Feb. 15, she said.
Kreitzer said a letter with instructions on how to contact the center and a unique code for each person is to be sent out late next week.
“I have questioned whether the call center could be set up more expeditiously, but Equifax has maintained that it cannot,” she said.
“The worst thing we could do is give the instructions out and then have people more frustrated because Equifax hasn’t had time to train its call center operators with our specific settlement information,” she said.
February 08, 2010
Do consumers in hard times pay their mortgage first or their credit cards first?
From ConsumerLoanWire.com:
But missing payments on anything puts your credit score at risk, which also puts your credit card limits at risk, at least until the final provisions of the new credit card law finally go into effect. Currently, if a credit card company sees something that worries them about your credit report (like missing payments), the credit card company can lower your limit, raise your interest rate or cut you off completely. Once the new credit card law completely goes into effect, credit card companies will lose their draconian ability to unilaterally change the terms of your agreement, so long as minimum payments are made on the credit cards, regardless of what is happening with the rest of your credit. But until that goes into effect, be wary of this strategy if at all possible.
The economic downturn has forced many consumers to make difficult financial choices, one of them being the choice to make a credit card payment or a mortgage payment. Historically consumers would protect their mortgage while letting a credit card fall delinquent if forced to make the choice, but a new trend shows that consumers are choosing to pay off credit debt at an increasing rate.This strategy almost always makes no sense. Why risk your most valuable investment, your home, just to keep your credit score better. The only time this strategy does make sense is apparently what is happening - i.e. the home is not the most valuable investment. Thanks to the collapse of the housing market, a lot of people owe much more on their house than what they are worth. Thus, even if they make their house payments on time, they are not gaining any equity. But they may need their credit cards to survive (like if they are currently unemployed).
A study released by Chicago-based credit bureau Trans Union found that 6.6% of consumers were delinquent on mortgages but current on credit card payments in the third quarter of 2009 but that only 3.6% of consumers were delinquent on credit card payments while remaining current on mortgage payments.
Sean Reardon, author of the study, attributed this shift to a “perfect storm” of lowering housing prices and rising unemployment. Consumers know that they may be losing equity on a mortgage but they need to stay current on credit cards since they may be living on them for day-to-day expenses.
But missing payments on anything puts your credit score at risk, which also puts your credit card limits at risk, at least until the final provisions of the new credit card law finally go into effect. Currently, if a credit card company sees something that worries them about your credit report (like missing payments), the credit card company can lower your limit, raise your interest rate or cut you off completely. Once the new credit card law completely goes into effect, credit card companies will lose their draconian ability to unilaterally change the terms of your agreement, so long as minimum payments are made on the credit cards, regardless of what is happening with the rest of your credit. But until that goes into effect, be wary of this strategy if at all possible.
Equifax announces quarterly dividend
On Friday, Equifax announced its quarterly dividend payable on March 15, 2010, for all shareholders of record as of February 22, 2010. The dividend will only be 4 cents per share.
Does checking your credit report hurt your credit score?
I get asked all the time whether a consumer checking his or her own credit report hurts the consumer's credit score. The short answer - no. When you as a consumer check your own credit report by requesting a copy from one of the big three credit bureaus, it is considered a "soft inquiry", which is only seen by the and does not affect the consumer's credit score in any way.
When a third party, such as a potential creditor, views a consumer's credit report, that is considered a "hard inquiry" and is seen by others reviewing the consumer's credit report. A hard inquiry can also potentially affect your credit score. But not always.
For instance, when you go out trying to buy a new car, the car dealership(s) you visit usually shop your credit around to try to get you the best financing and, as a result, increase their chances at a sale. This shopping around causes multiple "hard inquiries" on your credit report. However, these inquiries are treated as one inquiry, rather than several, for the purpose of keeping the inquiries from dragging down your credit score.
But I know of no set of circumstances where requesting your own credit report from one or more of the big three credit bureaus would hurt your credit score.
When a third party, such as a potential creditor, views a consumer's credit report, that is considered a "hard inquiry" and is seen by others reviewing the consumer's credit report. A hard inquiry can also potentially affect your credit score. But not always.
For instance, when you go out trying to buy a new car, the car dealership(s) you visit usually shop your credit around to try to get you the best financing and, as a result, increase their chances at a sale. This shopping around causes multiple "hard inquiries" on your credit report. However, these inquiries are treated as one inquiry, rather than several, for the purpose of keeping the inquiries from dragging down your credit score.
But I know of no set of circumstances where requesting your own credit report from one or more of the big three credit bureaus would hurt your credit score.
February 05, 2010
West Virginian sentenced to two years for identity theft
Tammy Aleshire, a West Virginian was sentenced last Friday by U.S. District Judge John T. Copenhaver, Jr. to a mandatory sentence of two years in prison for aggravated identity theft. She was also oreded to pay restitution to the victims of her identity theft scheme.
Aleshire had previously pled guilty in October 2009 to the aggravated identity theft charge.
Aleshire learned the name and social security number of another individual when applying for a credit card at K-mart in St. Albans, West Virginia. The U.S. Postal Inspection Service and the Putnam County Sheriff's Department investigate Aleshire and learned she had used that person's identity to open credit card accounts.
Subsequently, Aleshire used the victims' name and social security number to obtain multiple credit card accounts which she used over 50 times to purchase merchandise totaling approximately $16,000.
Assistant United States Attorney Erik S. Goes handled the prosecution.This case was prosecuted as a part of the United States Attorney's identity theft initiative.
Aleshire had previously pled guilty in October 2009 to the aggravated identity theft charge.
Aleshire learned the name and social security number of another individual when applying for a credit card at K-mart in St. Albans, West Virginia. The U.S. Postal Inspection Service and the Putnam County Sheriff's Department investigate Aleshire and learned she had used that person's identity to open credit card accounts.
Subsequently, Aleshire used the victims' name and social security number to obtain multiple credit card accounts which she used over 50 times to purchase merchandise totaling approximately $16,000.
Assistant United States Attorney Erik S. Goes handled the prosecution.This case was prosecuted as a part of the United States Attorney's identity theft initiative.
February 04, 2010
Haitians worried about identity theft
On top of all their other injuries, loss, worries and problems, Haitians are also worried about identity theft, as illustrated by the below article by Efrem Graham with CBN.com:
PORT-AU-PRINCE, Haiti -- Victims of Haiti's earthquake are dealing with yet another painful reality as they struggle to get back on their feet.Truly tragic.
Many have no identification to prove who they are and they're afraid they could become victims of identity theft.
Slow Signs of Recovery
There are tiny signs that life is slowly returning to normal in Haiti. However, there are even bigger signs of just how slow that recovery is.
For instance, Jonas Julien sleeps in one of the countless tent cities, but has no tent.
"My family has eight persons," he explained. "They are in the street. They are on the street."
Another survivor, Antoine Demorcy, walked the street searching to see if family members' bodies were trapped beneath the rubble. So far, he's found three.
"You can't do nothing about. That is life," he said. "You have to keep looking to see. Be very strong and keep looking that is why I am going by my feet to see."
In one area of Port-au-Prince where many people lost their lives, some are still buried beneath rubble.
However, many people also escaped. Now they have returned to search through the debris hoping to retrieve important belongings such as bank statements, birth certificates, even their college degrees.
Jean Robert was looking for his passport and the deed to his land.
"People used to steal your ownership if they know that you don't have the paper that should prove, that can certify that you are the owner of a thing," he said.
He is worried about losing his identity, after losing so much more.
"My brother died," Robert said. "I had the chance to rescue him, but he died after because he could not breathe, I mean five days after."
Robert's mother, who lived on the first floor of a five-story building, was also killed in the earthquake.
"My mother is still under the stuff," he said.
February 03, 2010
Opponents of CFPA attempt to mislead the public
I don't often go to my own blog. Seems weird at first, but I usually go straight to the "behind the scenes" view of my blog where I can post and respond to comments from readers. Its not often that I go to my main page that you see when you go to my blog. I do it occasionally though, primarily to make sure everything is still looking right and to see what ads are showing up on my blog. I don't get to pick the ads I want displayed. Google does this for (or to) me. But I can block ads that I don't want on my blog. Of course, they first have to appear on my blog before I can block them. I have mostly blocked sites that offer "free" credit reports that are not really free or other scam or anti-consumer type ads.
Today, I blocked an ad for http://www.stopthecfpa.com/. I checked this site out to find out that it ony provides made up horror stories and misleading information about the Consumer Financial Protection Act.
Here are its "horror stories" about what would happen if the CFPA is passed -
Today, I blocked an ad for http://www.stopthecfpa.com/. I checked this site out to find out that it ony provides made up horror stories and misleading information about the Consumer Financial Protection Act.
Here are its "horror stories" about what would happen if the CFPA is passed -
“You guys are regulating us out of business. I am a small business owner–but my business may shut down due to the COST of complying with government regulations. Alex, my 1 full-time employee, and Kathy, Amanda, Sandy, Hannah, Caleb, & Stephanie, my 6 part-time employees, may lose their jobs.” — BenNotice that none of these blurbs provide any basis for the people's so called fears. The CFPA would not restrict consumers' options for paying for services. It would have no effect on that at all. Here's what the CFPA would really do -
“I am a small business owner, and it seems like these days, government doesn’t like us.” — Tim Byers
“How the CFPA affect me? Simple: my cabinet shop business will cease to exist.” — Mona Steck
“While I agree that we need to strengthen consumer protection laws, I am concerned this bill will have significant unintended consequences that will harm consumers, rather than protect them. It is all ready difficult to run my business, which has twelve employees. With new restrictions that would further decrease the options for people to do business or pay for services; I can only see more of the same spiral that we are in. I know that my business might not seem like a big problem, but I am not alone. I am like the regular Joe American. I am like what makes up America.” — Greg Welch
To begin with, be aware that the agency's powers and oversight would extend far beyond mortgages and real estate -- into all credit cards, debit cards, consumer loans, payday loans, credit reporting agencies, debt collection, stored-value cards and even investment advisory and financial advisory services, to name only part of the list.The CFPA, if passed, would be good for consumers and only bad for credit card companies and other large companies that broke the rules. Its basically a lot like the FTC is now, only with the power to actually enforce the laws that the FTC does not have the manpower to enforce. Small businesses would not be affected so long as they followed the rules which, if they are good businesses, they would already be doing since doing so is good business for their customers.
It would have the authority to alter long-common practices that nettle consumers, such as mandatory arbitration clauses in the fine print of contracts that automatically send business-consumer disputes to arbitrators rather than to courts. The agency could ban or limit such clauses in specific products if they are shown to tilt against consumers' interests.
The agency would write the user-safety rules for virtually all consumer financial products and would have the legal firepower to levy huge fines -- tens of thousands of dollars a day per violation in some cases -- and prosecute lenders, brokers and others who break the rules.
The agency would be the dominant federal consumer protector in all home real estate settlements. It would regulate "affiliated" title, escrow and financing businesses connected with realty firms and builders. It would oversee equal credit opportunity and fair housing, and would set standards for all mortgage offerings, whether from the biggest national banks or the smallest local brokers. Generally it wouldn't seek outright bans on mortgage products that carry elevated risks -- interest-only loans, for instance -- but would require that lenders restrict such mortgages to well-informed applicants who can document that they understand the risks and can afford the payments.
Within its first year, the agency would be tasked with creating consumer-friendly, uniform disclosures for all home purchase and financing transactions, starting with a combined "good-faith estimates" and truth-in-lending statement.
The core idea behind the proposal, supporters say, is to pull together consumer oversight powers that are now scattered among various agencies, and to put consumer interests where they should be -- much higher on the priority list than they were during the years leading up to the housing and credit bubble and bust.
Banking and mortgage trade group leaders generally agree that the existing regulatory system failed badly -- for consumers and the industry itself.
February 02, 2010
PA identity theft ring member sentenced
From the EthiopianReview.com -
Richard S. Hartunian, United States Attorney for the Northern District of New York, John F. Pikus, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Albany Division and Steven Heider, Chief of the Town of Colonie Police Department, announced today that JOHN W. WINDLE, 44, of Philadelphia, PA was sentenced by U.S. District Judge Gary L. Sharpe to 70 months of imprisonment for his involvement in an identity theft ring.
On September 6, 2007, WINDLE pled guilty to four felony offenses: one count of identification document fraud, one count of wire fraud, and two counts of aggravated identity theft, in violation of 18 U.S.C. Title 18, United States Code, Sections 1028(a)(5), 1343, and 1028A, respectively. WINDLE was sentenced to 46 months for the identification document fraud and wire fraud and 24 months for the aggravated identity theft counts, three years of supervised release, forfeiture, and full restitution to the victims of his crimes.
According to court documents, WINDLE admitted that he was a team leader in a so-called “flip, bite, and write” identity theft scheme in which ring members targeted elderly women shopping in grocery stores. Teams led by WINDLE traveled to locations where retail stores, usually one that sold groceries, were located in close proximity to stores where electronics could be purchased, such as Best Buy, Circuit City, or Sears. Typically, a member of WINDLE’s team distracted the elderly female victim in the store (“the flip”), while WINDLE stole the woman’s credit cards (“the bite”). WINDLE then went to his vehicle nearby and, using a laptop and ID printer, made a false identification document (ID) in the victim’s name with a picture of one of the ring members traveling with him. The false identification documents WINDLE created included state driver’s licenses and United States Armed Forces identification cards. Using the stolen credit cards and fake ID, WINDLE and his team members then purchased expensive electronics, miscellaneous merchandise, and gift cards, signing the victim’s name to the credit card receipts (“the write”). WINDLE sold some of the electronics to KHURRAM FARID, who in turn sold them on the internet, while other proceeds were divided among the team members.
WINDLE admitted that he and ring member ANN M. GRICE carried out the identity theft scheme in the capital district region in July 2004, victimizing elderly women and businesses in Latham, Brunswick, Clifton Park, and Wilton, New York. WINDLE and GRICE were arrested by the New York State Police in Wappingers Falls, N.Y., after leaving this area and victimizing another elderly woman in a supermarket in Poughkeepsie, N.Y. WINDLE and GRICE were indicted by a federal grand jury in this District on February 16, 2007.* GRICE remains at large.
On October 12, 2006, NELSON SLAUGHTER, another team leader in the identity theft ring, pled guilty before Judge Sharpe to felony offenses related to his participation in the “flip, bite, and write” scheme and was sentenced to 73 months imprisonment on May 7, 2008. WINDLE and SLAUGHTER operated the scheme, which they developed with others, starting in at least 2001, and committed acts throughout the United States, including New York, California, Massachusetts, Connecticut, Pennsylvania, Ohio, Indiana, Virginia, and North Carolina. Additionally, on August 20, 2009, KHURRAM FARID was indicted by a federal grand jury in the Eastern District of Pennsylvania on charges of conspiracy and transportation of stolen property for receiving and reselling on the internet the stolen goods procured by WINDLE and SLAUGHTER.
The criminal investigation was conducted by the FBI, the Town of Colonie Police Department, the Social Security Administration Office of Inspector General, the Defense Criminal Investigative Service, and the New York State Police, and was prosecuted by Trial Attorney Nicola J. Mrazek of the Fraud Section of the Criminal Division of the U.S. Department of Justice and Assistant United States Attorney Tina Sciocchetti of the United States Attorney’s Office for the Northern District of New York.
(Source: FBI)
Stay OFF the tennis court! Tennis is the most common trait of identity theft victims
Guess Tiger Woods is safe from this one. But Venus Williams, Andre Agassi, John McEnroe and Anna Kournikova better watch out. Experian has compiles what it sees as the most common traits of an identity theft victim. The most common? Tennis. Yes, tennis. Check out the article below.
Most Common Traits of ID Theft Victims
by Jeremy M. Simon
Friday, January 29, 2010
Wealthy consumers who enjoy leisure activities such as tennis, skiing and international vacations are top targets for identity thieves, according to a new report.
A report released Wednesday by credit bureau Experian shows that fraudsters are on the hunt for the most affluent suburban consumers. Compared to the general population of credit applicants, Experian says these consumers live in and around metropolitan areas, favor leisure activities, have college diplomas or advanced degrees and more often tend to be married.
Affluent are more often victims of ID theft, report shows”The crooks are going where the money is,” says Gail Hillebrand, senior attorney with Consumers Union, the nonprofit publisher of Consumer Reports magazine.
Most Common Traits, Activities
Experian identifies the common activities of those most often victimized by ID theft:
• Tennis
• Politics
• Foreign travel
• Charities/volunteering
• Cultural/arts
• Skiing
Where — and how — these consumers live also seems to make them more of a target. “The opportunities to steal discarded documents would be greater in suburban areas,” says Linda Sherry, director of national priorities with advocacy group Consumer Action. “More affluent households may have domestic help and service people who may have the opportunity to steal personal info from the home that can be used to acquire credit.”
How did Experian identify this group of wealthy victims? The bureau’s Fraud and Identity Solutions group — in conjunction with Experian Marketing Services — compared credit application data with thousands of individual fraud records between January 2007 and November 2008. It found that three of its 12 demographic groups were the most highly sought-after by identity thieves: “affluent suburbia,” “upscale American” and the more middle-class “American diversity” category of consumers.
Experian found that compared with the general population of credit applicants, the consumers most often victimized by fraudsters tend to own more new and luxury vehicles and live in higher-income neighborhoods that contain many more homeowners than renters. Additionally, these borrowers tend to be based in densely populated metropolitan areas and often reside in multifamily homes or condos.
Thieves aren’t the only group focusing on wealthy borrowers. “Lenders are obviously targeting some of these demographics as well,” with better and more frequent offers of financial goods and services, says Keir Breitenfeld, director of product management for Experian’s Fraud and Identity Solutions group. As a result, thieves who target these consumers and steal their information have an easier time getting credit and services in their victims’ names. “If you’re a fraudster, you want to assume the identity of someone who can go out and get high-value services,” Breitenfeld says.
How to Protect Yourself
Consumer advocates, meanwhile, say that if the affluent can be victimized by ID thieves, anyone can. “You can’t protect yourself. Even the most affluent suburban households, it’s still happening to them,” Hillebrand says. She says that banks and other institutions have an obligation to better guard consumer data. “We don’t have much control over that as individual consumers. People who receive our data decide how carefully to protect our information,” Hillebrand says.
However, Experian says lenders need to strike a balance between guarding consumers and not making them struggle unnecessarily to get approved for credit. If consumers must jump through too many hoops in order to get a loan, Experian says, the bank may end up losing their business. Still, Experian says its report suggests that financial institutions may want to do more to protect certain high-risk borrowers.
February 01, 2010
Talk about a bad day ...
Imagine reading your local paper's crime report and seeing that you have been arrested for a crime. Only you weren't arrested. That's what happened to Dennis Lewis of Hattiesburg, Mississippi. According to the Hattiesburg American, Lewis was listed in their January 18 crime report as being charged with vagrancy and interfering with a police officer. Only Lewis was not charged with anything. And, for the record, this happening in Hattiesburg apparently had nothing to do with Tiger Woods or the Hattiesburg sex addiction facility he is currently visiting.
Lewis has now filed identity theft charges against Ben Scroggins for using Lewis' name and date of birth at the time of Scroggins' arrest.
Lewis has now filed identity theft charges against Ben Scroggins for using Lewis' name and date of birth at the time of Scroggins' arrest.
Mortgage assistant guilty of identity theft
From WCCO.com:
A former mortgage assistant is awaiting sentencing after he pleaded guilty Friday to stealing information on the job and using it to commit identity theft, according to the U.S. Attorney's Office.
In his plea agreement, 32-year-old Jason Alan Tauer of Robbinsdale admitted to stealing the files of 93 people who'd made loan applications at Ameriquest Mortgage, where he worked from March 15 to April 29, 2005. He also admitted to getting information from stolen mail and things he took from gym lockers, according to the report.
The Attorney's Office said Tauer then used the information to make fake identification documents and checks, which he used to get cash, services and other items. In one example given in the news release, Tauer obtained a U.S. Bank credit card in another person's name and withdrew cash from ATMs throughout Minnesota, sticking the victim with a $30,529.63 bill.
During a Dec. 4, 2007 search of Tauer's home, investigators found 93 files stolen from Ameriquest Mortgage as well as other documents containing information on 208 people, according to the release.
The charges in the plea agreement include two counts of bank fraud, one count of device fraud and three counts of aggravated identity theft. Though Tauer has yet to be sentenced, he could be sent to prison for more than 70 years.
Equifax keeps expanding
This from Zacks Investment Research at http://www.dailymarkets.com/stocks/2010/01/20/equifax-partners-1010data/ -
"Information solution major Equifax Inc. ... recently announced that the company is expanding its partnership with data provider and analytics company 1010data. This collaboration will help Equifax to provide its individual and household marketing data to retailers via the 1010data analytics platform.
The 1010 data platform will provide retailers with the option to combine their internal transaction data with Equifax’s marketing data. This combined application will especially help retailers to be able to run queries, help them to choose the proper store site, as well as improve their merchandising and inventory effectiveness.
New product innovation and advanced solution development ability is helping Equifax retain its leadership position in the information solution and data management sector. While Equifax’s core business remains solid, the company is driving growth through new product launches and international expansion. International expansion are a part of the company’s expansion strategy in its four targeted geographical regions—India, Russia, China and Latin America.
This apart, the company is adding new technical heads to increase its talent pool and enhance operational efficiency. Equifax has recently appointed David C. Webb as its Chief Information Officer. David will be absorbed in the company’s senior leadership team and will report directly to its Chairman and CEO Richard F. Smith. David will be shouldering the responsibility of forming global technology strategy and will innovate effective solutions for customers.
The introduction of new products and solutions through collaborations along with the addition of key technical personnel is a good growth strategy for Equifax, but competitive pricing remains a key parameter for these products and services to succeed. However, given the strong correlation to consumer and financial markets, as well as the company’s U.S. exposure, the results are gradually expected to revive with the recovery of the U.S. economy."
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