Before applying for an automobile, credit card, or home mortgage loan, it’s a good idea to check your credit report for errors. Banks, credit unions, auto finance and mortgage lenders have all raised the bar when making credit granting decisions. Long gone are the days when a 620 FICO credit score sufficed. Borrowers with bad credit are being turned down or forced to pay significantly higher interest rates when applying. Those with low credit scores have even been denied employment opportunities and automobile insurance.
Negative information contained in credit reports – such as late payments, collection accounts and public record entries – determine whether you can obtain credit, goods, benefits, services, employment and/or insurance. It’s important to review your Equifax, Experian and TransUnion credit reports on a regular basis and correct any information that is inaccurate, erroneous, obsolete, or fraudulent due to possible identity theft.
Don’t be scammed by the numerous “free credit report” opportunities found on the Internet. While dozens of companies offer that so-called “free credit report,” many of them have strings attached, such as subscription-based opt-in requiring you to provide credit card information.
You really can obtain a free copy of your credit report.
Under a narrow set of circumstances, you are entitled to a free copy of your credit report directly from the credit reporting agencies. If you have been denied credit, goods, benefits, services, employment or insurance, Equifax, Experian and TransUnion are statutorily mandated under the Fair Credit Reporting Act to provide a copy without charge.
Equifax can be contacted at (800) 685-1111 or online at www.Equifax.com.
Experian can be contacted at (888) 397-3742 or online at www.Experian.com.
Trans Union can be contacted at (800) 916-8800 or online at www.TransUnion.com.
When ordering credit reports, be sure to indicate that you were denied credit, goods, benefits, services and/or employment when prompted. Absent these exceptions, you are entitled to one free “annual credit report” per year. For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or online at www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.
Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies of Equifax, Experian and TransUnion.
With an improved economy and real estate prices on the rise, your good name and reputation are more important than ever when applying for new credit cards, an automobile, rental property or home mortgage. Many creditors have tightened their lending guidelines, effectively barring millions of Americans from borrowing money.
Long gone are the days of obtaining credit, goods, benefits, services and/or employment with a 620 FICO score. In most instances, a borrower will be denied if they maintain a credit score lower than 740. Even those with high credit scores have experienced reduced credit lines or closed credit card accounts and equity lines. When an account has not been closed, credit limits have been reduced to the existing balance due.
Mortgage lenders, auto finance companies, credit card issuers, credit unions and traditional banks have all raised the bar. Borrowers with low FICO scores can expect to be denied credit or to pay significantly higher interest rates than those with excellent repayment histories.
With about 52 percent of credit profiles at the Equifax, Experian or TransUnion consumer reporting agencies containing some sort of error or omission materially impacting credit worthiness, some turn to credit repair to remedy low credit scores and issues that prevent them from borrowing money. Absent self-help and the “do-it-yourself” approach, they hire a credit service organization in the restoration of their good name and reputation.
The terms credit repair, credit restoration or credit rehabilitation are somewhat synonymous. Those with bad repayment histories cannot afford to ignore the potential benefits of credit repair. In today’s economy, a strong FICO score is more important than ever.
Beware, though, when hiring a credit repair company.
Most — but not all — credit service organizations specialize in the restoration of consumer credit worthiness as well as issues related to identity. Assuming that the credit repair company is performing within established guidelines, they utilize laws enacted by Congress to dispute negative, erroneous, obsolete and/or fraudulent information contained within your consumer credit profile.
Utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act and the Fair and Accurate Credit Transactions Act, a reputable credit service organization will assist in the submission of disputes electronically, verbally and in writing to the Equifax, Experian and TransUnion consumer reporting agencies. Disputes are also submitted to creditors, collection agencies, and third-party record providers, in addition to state, federal, and local regulatory authorities.
Unlike most credit repair clinics that submit the same written complaint letters monthly, a reputable credit repair company will have devised a strategy whereby disputes are submitted electronically, verbally and in writing over a long period of time to the credit reporting agencies, creditors, collection agencies and third-party record providers reporting negative, inaccurate, obsolete and erroneous information.
Keep in mind that anything a credit repair company can do, you can do yourself for little to no cost. With that said, a reputable credit service organization should have an edge over consumer driven disputes as they will possess the education, knowledge and a source proven method that is generally unknown to the average consumer.
A reputable credit service organization should have a provable track record of results in the modification or removal of erroneous and inaccurate judgments, liens, mortgage foreclosures, bankruptcies, short-sales, student loans, credit inquiries, derogatory accounts and collection agency entries, personal identifiers and other transient data from a consumer’s credit report. Although the credit restoration process can take many months, most individuals should see some results within the first 45 to 60 days.
Credit repair, credit restoration and credit rehabilitation is as legal as pleading “not guilty” in a court of law. One must understand, though, that most credit service organizations are not law firms and that their employees may not be licensed to practice law. As such, even a reputable credit repair company cannot provide legal advice, nor may they represent a consumer before any court or in any legal proceeding. In the event that legal representation is required, the credit repair company should provide an appropriate attorney referral for consultation.
When self-help or the “do-it-yourself” approach is not feasible and you decide to hire a credit repair company to restore your credit, be sure to check them out. While the majority of credit repair clinics are scams, a few good ones do exist. Consumers can check out a credit service organization through their state Attorney General, the Federal Trade Commission at http://www.ftc.gov or through the Better Business Bureau at http://www.BBB.org.
As a nationally recognized credit repair and identity theft expert, Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity, in Fort Lauderdale, Florida.
As a nationally recognized credit repair and identity theft expert, Bill Lewis of William E. Lewis Jr. & Associates – a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity – announces the opening of a new office in Davie, Florida.
Having outgrown their former location, William E. Lewis Jr & Associates recently moved to 6099 Stirling Road, Suite 210, Davie, FL 33314.
Formerly with Credit Restoration Consultants, Bill Lewis has been widely sought by many in the restoration of their personal credit worthiness. As such, a new credit repair component was formed.
In tough economic times, your good name and reputation are more important than ever. Creditors have tightened their guidelines effectively barring millions of Americans from obtaining credit. Even those with excellent credit are experiencing reduced credit limits and closed equity lines. Mortgage lenders, auto finance companies, credit card issuers and banks have all raised the bar.
The terms credit repair, credit restoration or credit rehabilitation are somewhat synonymous. Those with bad credit histories cannot afford to ignore the potential benefits of credit repair. In today’s economy, a strong FICO score is more important than ever.
Approximately 78% of credit profiles in the United States contain some sort of error or omission materially affecting credit worthiness. Absent self-help and the “do-it-yourself” approach, a consumer may hire a credit repair company in the restoration of their good name and reputation within the community.
Long gone are the days of obtaining credit, goods, benefits, services and/or employment with a 620 score. In most instances, a consumer will be denied if they maintain a credit score lower than 740. Even those with high credit scores have experienced closed credit card accounts and equity lines. When an account has not been closed, credit limits have been reduced to the current balance due.
Borrowers with low credit scores can expect to be denied or to pay significantly higher interest rates than those with excellent credit.
Operating within William E. Lewis Jr. & Associates is a boutique credit service organization specializing in the restoration of consumer credit worthiness as well as identity theft. Assisting consumers in achieving a favorable financial credit profile is their first priority.
Everything they do at William E. Lewis Jr & Associates is legal utilizing laws enacted by Congress to dispute negative, erroneous, obsolete, and/or fraudulent information contained within your consumer credit profile.
Utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, and the Fair and Accurate Credit Transactions Act, William E. Lewis Jr & Associates will assist consumers in the submission of disputes electronically, verbally and in writing to the Equifax, Experian and Trans Union consumer reporting agencies in addition to creditors, collection agencies, third-party record providers and state/federal/private regulatory authorities.
Unlike most credit repair clinics that submit the same written dispute letters monthly, William E. Lewis Jr & Associates has devised a credit restoration strategy utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Fair and Accurate Credit Transactions Act, in addition to laws applicable to a consumers state of residence.
Keep in mind that anything William E. Lewis Jr & Associates can do – you can do yourself. That means that you do not have to hire William E. Lewis Jr & Associates – or any other credit repair company – to review, investigate and/or dispute alleged discrepancies on your credit report.
Where William E. Lewis Jr & Associates may have an edge over the average consumer is that we possess the education, knowledge and a source proven method that consistently yields results.
William E. Lewis Jr & Associates has obtained thousands of deletions and updates for its clients and can help remove erroneous and/or inaccurate judgments, liens, bankruptcies, student loans, inquiries, derogatory accounts, personal identifiers, arrests, etc. While the credit restoration process can take anywhere from 30 days to six months, most clients see dramatic results in 45-60 days.
Credit repair, credit restoration and/or credit rehabilitation is as legal as pleading “not guilty” in a court of law. With that said, one must understand that as a credit service organization William E. Lewis Jr & Associates is not a law firm and that none of their employees is an attorney licensed to practice law in the state of Florida.
As such, William E. Lewis Jr & Associates cannot provide legal advice nor represent any individual before any court or in any legal proceeding. In the event that legal representation is required, William E. Lewis Jr & Associates may provide an appropriate attorney referral for consultation.
Ordering Free Credit Reports:
Under the Fair Credit Reporting Act, as modified by the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report under a narrow set of circumstances. If you have been denied credit, goods, benefits, services, insurance, and/or employment, the credit reporting agencies of Equifax, Experian and Trans Union are statutorily mandated to provide a copy free of charge.
Equifax can be contacted at (800) 685-1111 or www.Equifax.com; Experian can be contacted at (888) 397-3742 or www.Experian.com; and Trans Union can be contacted at (800) 916-8800 orwww.TransUnion.com. Be sure to prompt that you were denied credit when requested to do so.
Absent these exceptions, consumers are entitled to one free “annual credit report” per year. Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies.
For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.
When self-help or the “do-it-yourself” approach is not feasible and you decide to hire a company to restore your credit, be sure to check them out. While the majority of credit repair clinics are scams, a few good ones do exist. Consumers can check out a credit service organization through their state Attorney General, the Federal Trade Commissionat www.ftc.gov or through the Better Business Bureau atwww.BBB.org.
For more information, please contact William E. Lewis Jr & Associates at (954) 337-1530 or visit them on the Internet at www.williamlewis.us.
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As a nationally recognized credit repair and identity theft expert, Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity.
Credit rating agency Experian released Wednesday its second-annual “State of Credit” list of cities with the highest and lowest credit scores.
The study found that the cities with the worst average credit score were concentrated in the South, while those with the highest average score were centered in the upper Midwest.
According to CreditKarma.com, the credit scores of consumers in the Miami metropolitan statistical area dropped in September as they continued racking up significant personal debt.
The average credit score in the Miami area was 649 in September, down from a previous low of 652 in August. The trend was the same statewide, although other Floridians seemed to maintain better credit scores. The average Florida credit score was 654 in September, down from 657 in August.
The Sunshine State ranked 35th for credit score averages nationwide. California residents had the best average credit score, at 682, while those in Mississippi ranked at the bottom, at 626.
CreditKarma found that consumers in South Florida piled on debt in three significant categories. In September, they had an average mortgage debt of $199,701, student loan obligations of $32,254, and credit card balances of $5,548. This is an increase of 4 percent, 2.8 percent and 1.4 percent, respectively, from the previous month.
The study also found that consumers in the Miami area ranked higher in mortgage and student loan debt, but had less credit card debt than others across the country.
Obtaining credit reports and correcting credit reporting errors is something for every consumer to seriously consider. This is especially so in tough economic times.
Under the Fair Credit Reporting Act, as modified by the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report under a narrow set of circumstances.
If you are denied credit, goods, benefits, services, insurance, and/or employment, the credit reporting agencies of Equifax, Experian and Trans Union are statutorily mandated to provide a copy free of charge. Absent these exceptions, consumers are entitled to one free “annual credit report” per year.
Equifax can be contacted at (800) 685-1111 or www.Equifax.com; Experian can be contacted at (888) 397-3742 or www.Experian.com; and Trans Union can be contacted at (800) 916-8800 or www.TransUnion.com.
For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.
You have heard many synonyms or phrases that mean the same thing in the realm of bad credit. The terms credit repair, credit restoration or credit rehabilitation are completely synonymous. Those with bad credit histories cannot afford to ignore the potential benefits of credit repair.
In today’s economy, a strong FICO (Fair Isaac) score is more important than ever. Approximately 78% of credit profiles in the United States contain some sort of error or omission materially impacting credit worthiness. Absent self-help and the “do-it-yourself” approach, a consumer can hire a credit repair company in the restoration of their good name and reputation within the community.
Credit repair companies are governed by a federal law known as the Credit Repair Organizations Act. This law requires a credit service organization fulfill certain obligations to a consumer. You should avoid any credit repair service that fails to follow the following rules:
You are not provided with a copy of the “Consumer Credit File Rights Under State and Federal Law” advising of your right to obtain a credit report directly from Equifax, Experian and Trans Union as well as “self-help” opportunities available under the law.
You are not provided a copy of the service contract for review and contemplation prior to execution.
The service contract does not contain the following information: (a) the amount being charged; (b) full details about the services to be performed; (c) the start and end date by which services will be performed; (d) the full name and business address of the credit repair company; (e) a statement advising that the service contract can be cancelled within three business days.
You are requested to pre-pay before the credit repair services have actually been performed.
The company promises to remove accurately reported information from your credit report.
The company promises to create, or asks you to create, a “new” identity with a new social security number or federal employer identification number (EIN).
You are requested to execute a document specifically waiving your rights under the Credit Repair Organizations Act (CROA).
If you are considering a credit repair service, keep in mind there is nothing legally they can do to improve your credit that you cannot do yourself. Many of these companies promise or guarantee to remove harmful, but accurate, negative information from your credit report. If the information is wrong or otherwise inaccurate, you have the right to dispute it yourself. You only need to dispute the inaccurate entry to the credit reporting agency and/or creditor maintaining the record. However, when the information is truly accurate, you do not have the right to dispute it, nor does a credit repair company.
Although you may not be prosecuted for disputing accurate information on your credit report, you can be prosecuted for fraud if you lie on a credit application. For example, it is considered fraud to answer “no” that you have never filed bankruptcy when you actually have. Just because you, or the credit repair company you hired, successfully removed the adverse bankruptcy entry from your credit report does not mean the bankruptcy never existed.
When the “do-it-yourself” approach is not feasible and you decide to hire a credit repair company to restore your good name and reputation within the community, be sure to check them out. While the majority of credit repair clinics are scams, a few good ones do exist. Consumers can check out a credit repair company through their state Attorney General at http://www.naag.org, the Federal Trade Commission at http://www.FTC.gov or through the Better Business Bureau at http://www.BBB.org. In any event, do not allow a credit repair company to get away with scams. Take action if your rights have been violated. Report the offending company to your state attorney general, the Federal Trade Commission and the Better Business Bureau.
William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.
The Federal Trade Commission (FTC) adopted strict new rules on Thursday that ban debt settlement companies from charging advance fees for elimination of credit card balances and other consumer debt. Effective Oct. 27, for-profit companies that sell debt relief services by telephone will no longer be allowed to charge a fee before they successfully settle or reduce a consumer’s outstanding debt obligation.
“This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, upfront fees,” FTC Chairman Jon Leibowitz said Thursday, accompanied by Vice President Joe Biden. “Too many of these companies pick the last dollar out of consumers’ pockets — and far from leaving them better off, push them deeper into debt, even bankruptcy.”
The rule concerning upfront fees covers for-profit debt relief telemarketers, including credit counseling, debt settlement and debt negotiation services. It does not cover Internet sales or nonprofit firms, but does cover companies that falsely claim nonprofit status.
Scheduled to take effect on Sept. 27 are three additional Telemarketing Sales Rule (TSR) provisions that will require debt settlement companies to make specific disclosures to consumers; prohibit them from making material misrepresentations; and extending the TSR to cover calls consumers make to these firms in response to debt relief advertising.
Since the start of the recession, consumers from all 50 states have filed complaints with the Federal Trade Commission and the Better Business Bureau (BBB) about debt settlement companies. In addition to the BBB, angry customers have taken their complaints to their state attorney general. The FTC and state enforcers have brought a combined 259 cases in the past decade to stop deceptive and abusive practices by debt relief providers that have targeted consumers in financial distress.
Attorneys generals from Florida, Maine, Texas, Idaho, Missouri, New York, Illinois, West Virginia, Vermont and Minnesota have taken action against companies such as Debt Settlement America, Debt Rx USA, Financial Freedom of America, Clear Your Debt, Swift Rock Financial Solutions and Credit Solutions, a company that has received over 1,600 complaints in the past 36 months.
“My office works to protect Floridians from misleading debt relief activities by seeking to stop deceptive practices and resolving consumer complaints,” stated Attorney General Bill McCollum. “In these tough economic times, aconsumer’s best defense is to be aware of misleading advertisements and avoid sending money to companies offering such services.”
The rule further specifies that fees for debt settlement services may not be collected until a debt has been successfully renegotiated, settled, reduced or the contract terms have been changed. Moreover, there must be a written settlement agreement, debt management plan or other agreement between the consumer and the creditor and the consumer must have made at least one payment as a result of the agreement negotiated by the debt relief provider.
If a consumer has enrolled multiple debts in one debt relief program, the rule specifies how debt relief providers can collect their fee for each settled debt. To ensure providers do not front-load their fees, the fee for a single debt must be in proportion to the total fee that would be charged if all of the debts had been settled. Alternatively, if the fee is based upon a percentage of what the consumer saves, the percentage charged must be the same for each of the debts.
The rule further specifies that consumer’s maintain fees and savings for debt repayment in a “dedicated account.” However, providers may only require a dedicated account under the following five conditions: the dedicated account is maintained at an insured financial institution; the consumer owns the funds (including any interest accrued); the consumer can withdraw the funds at any time without penalty; the provider does not own or control or have any affiliation with the company administering the account; and the provider does not exchange any referral fees with the company administering the account.
If you have been victimized by a debt relief program, file a complaint with the Attorney General’s Office by calling (866) 9-NO-SCAM (866-966-7226) or visiting their website at http://www.myfloridalegal.com. The Federal Trade Commission also offers a variety of resources detailing consumer rights at http://www.ftc.gov.
William E. Lewis Jr. is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.
Recent reports indicate that approximately 462,339 foreclosure cases were pending in Florida as of June 30.
Following foreclosure moratoriums by Ally Financial, Bank of America, J.P. Morgan Chase, and PNC Bank, the settlement of deceptive marketing charges by Wells Fargo, and the Attorney General’s investigation into faulty foreclosure practices at the Florida Default Law Group, the Law Offices of David J. Stern, P.A.; the Law Offices of Marshall C. Watson, P.A.; and Shapiro & Fishman, LLP, investigators have turned up a new problem.
Process servers are now alleged to have filed false affidavits in support of personal service in foreclosure matters.
Foreclosure defense attorneys claim to have documented a number of cases where process servers filed false affidavits. While investigating the law firms that employed “robo-signers,” state investigators are also closely examining service of process in a number of cases.
Recent foreclosure defense cases allege homeowners never received a court summons even though they still occupied their home, while others allege that process servers did not take the required steps to locate them or filed false affidavits about whom or when they delivered papers.
According to the lawsuits, some process servers violated rules related to the personal delivery of legal papers. Like robo-signing foreclosure documents without reviewing them for accuracy, a number of homeowners are now alleging they were never served with foreclosure papers.
Once rare, “bad service” of process has become more common as lenders and their attorneys speed thousands of foreclosure cases through “rocket dockets” that are designed to clear an ever growing backlog.
“With the foreclosure debacle, it’s become more complicated,” says Carlos J. Reyes, a foreclosure defense attorney with the Reyes Law Group in Fort Lauderdale. “For the sake of expediency, process servers are being rushed. As they are paid by the piece, they have an interest in earning a higher income.”
Homeowners involved in foreclosures are required to receive a summons and complaint personally delivered by a process server. Repeated attempts at personal service are required before court permission can be obtained to publish a legal notice in the alternative.
Some process servers have allegedly cut corners. One recently claimed she could not find a homeowner facing foreclosure on a second home, despite conducting extensive record checks. This held true even though the foreclosure complaint clearly provided a primary home address in Connecticut.
Lenders and attorneys typically contract their summons delivery work to large process serving firms, who sub-contract to private independent servers. In her deposition to state investigators, former Stern paralegal Tammie Lou Kapusta, testified that summons serving procedures were a “complete mess,” with homeowners routinely complaining they never received papers.
She and another former employee, Kelly Scott, said their managers told them move forward with the foreclosures anyway.
Investigators also questioned staff at Stern’s firm regarding billing practices that involved serving multiple parties at an address and billing for each one.
“Good service of process is crucial”, Reyes said. He has heard of homeowners losing their home because they never received a summons and missed filing dates or court hearings.
While a court summons must be accepted by an adult, state law does not require it to be served upon the property owner. No one has to sign, verifying receipt, “which makes it easier to say the person was served, when they weren’t,” Reyes said.
Laws governing the service of process vary from state to state. In Florida, there is no statewide licensing or regulating body for process servers, and rules vary greatly among the 20 judicial circuits.
Among the largest with operations in ten states is Tampa-based ProVest. Although ownership interest by the law firms has been denied, they maintain support staff at the Law Offices of David J. Stern and Shapiro & Fishman in Boca Raton. Marshall C. Watson also uses ProVest.
While ProVest declined to comment on specific cases, company president James Ward stated they “utilize properly licensed or authorized independent contractors” and require them to “fully comply with state and local guidelines.”
To learn more about the mortgage foreclosure crisis or to file a complaint with the Attorney General’s Office, visit their website at www.myfloridalegal.com or call (866) 9-NO-SCAM (866-966-7226).
William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.
Attention is focused on new financial regulations enacted as part of the Dodd-Frank Act.
Earlier this year, the Federal Trade Commission announced final rules requiring creditors to provide consumers’ with a “risk-based pricing notice” when granting credit on less favorable terms than it provides other consumers.
To assist consumer understanding of these new rules, the U.S. Federal Reserve has unveiled an online guide to credit reports.
This straight-forward guide includes information on credit reports and credit scores, how they are utilized in credit granting decisions, unsolicited credit offers, credit repair and how to protect your personal information from fraud.
Released on Wednesday, the “Consumer’s Guide to Credit Reports and Credit Scores” is meant to complement consumer-protection laws that Congress enacted several years ago.
Under the Fair and Accurate Credit Transactions Act of 2003, lenders – starting in January – will be required to tell consumers when adverse information on their credit reports is going to result in higher rates and fees for mortgages, credit cards and other loans.
In today’s tough economy, a strong FICO (Fair Isaac) credit score is more important than ever. Studies show that approximately 78 percent of credit profiles in the United States contain some sort of error or omission materially impacting credit worthiness.
As creditors tend to offer favorable terms to consumers with good credit histories and more costly credit to those with poor credit histories, the guide is intended to assist them in disputing negative and/or inaccurate information prior to making an application for credit or employment.
Under the “risk-based pricing” rules, consumers hit with the less favorable credit terms can also obtain a free credit report to check its accuracy.
Under the Fair Credit Reporting Act, as modified by the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report under a narrow set of circumstances.
If you have been denied credit, goods, benefits, services, insurance, and/or employment, the credit reporting agencies of Equifax, Experian and Trans Union are statutorily mandated to provide a copy free of charge.
Absent these exceptions, consumers are entitled to one free “annual credit report” per year. Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies.
Be sure to prompt that you were denied credit when requested to do so.
For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.
Consumer advocates say additional work is needed to address concerns about credit reports and credit scores. “The main problem is really with credit reports – they’re just plagued with inaccuracies,” said National Consumer Law Center attorney Lauren Saunders. “It’s a nightmare for consumers to get anything fixed.”
Saunders said she is expecting the FTC and the new Consumer Financial Protection Bureau, the first agency to be charged with protecting consumers from abusive financial products, to take more action in addressing consumer concerns about credit reports.
Acting as a primer to the uneducated individual, the “Consumer’s Guide to Credit Reports and Credit Scores” advises what they should do if they find errors. In a three-step process, ordering credit reports and reviewing them for errors or inaccuracies; contacting the credit reporting agencies to enter a formal dispute; and, waiting for a response from the CRA’s and/or creditors is explained.
To learn more about the Consumer’s Guide to Credit Reports and Credit Scores, visit www.federalreserve.gov/creditreports. To review Bill Lewis’ entire consumer protection series at the Highlands Today, visit www.williamlewis.us.
William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.
William E. Lewis Jr. - Bill Lewis - Vero Beach, Florida 