FF credit management thread

[LadyShea]

I originally thought of writing an article to get all the stuff I've researched out there, but then thought a thread might be a better way to open the conversation and maybe even be an interesting "group project".

Unfortunately due to identify theft, credit report “mixing” and errors, and unscrupulous- but highly motivated- debt collections companies, even the most responsible person may find themselves fighting the credit industry. Add to that the current credit crisis, falling housing prices and equity, mass layoffs and many more people will find themselves dealing with credit problems.


Everyone should get a free copy of the credit reports once per year, as allowed by law. Only use AnnualCreditReport (http://www.annualcreditreport.com), as other advertised sites and companies are not part of the legally mandated free credit report program. If there are any errors, or anything does not match your records you will need to dispute it.

If everyone who reads this post gets their reports this week, I am willing to bet at least 5% will have one or more errors. Anyone wanna do this as a team effort?

[Shelli]

Excellent thread, LadyShea. :thumbup:

I got one for both my husband and I years ago after I was almost turned down for a loan due to a negative mark which was erroneous on my credit report. I got that settled along with numerous erroneous marks on my husband's credit report. It turned out that he had a bunch of his father's stuff on his credit report. :facepalm:

Since then, I have gotten credit reports for myself and my husband once a year. I have not found any errors since the first reports but I'll be checking every year to be certain. :yup2:

[Doohickie]

This has been wafting around in the back of my consciousness for a little while now. I recently found out I had a delinquent hospital bill for my son from last summer. It's in collections and I'm wondering if it's messing with my credit at the moment. The insurance has sent a check to the provider but it hasn't been received yet.

These bills magically got paid for over 10 years, but recently it seems like every time we go to the emergency room there is a bill that doesn't get paid unless we take action.

That may become an issue later this year as we may be buying a new car. Our son may need a car and rather than buying some used thing that we don't know anything about, we may just let him drive my wife's car and get her something snazzy.

[LadyShea]

That may become an issue later this year as we may be buying a new car.


Probably better to look at everything now, rather than waiting to be denied credit. I have a lot of info here on disputing items and fair credit reporting practices and am eager to use it to help someone.

Let us know if you get your credit report and if any there is any erroneous negative info.

[Doohickie]

I'm sure I wouldn't be denied credit based on a single smallish medical bill that went to collections (considering a good past history on mortgage payments, car payments, etc.) It's more a matter of getting a good interest rate versus a better one.

[maddog]

Brilliant idea, LS. Thanks for the link, as well.

#1597

[Dingfod]

The only thing I know about credit is I have too much of it. I couldn't get diddly squat for credit until I bought a house, then all of the sudden we were deluged with credit card offers. Word to the wise (not from the wise): Don't do what I've done, do what Uncle Ross from Colorado told me: Never borrow money for anything that isn't going to make you money and you can rent more than you can afford to buy. It took me 20 years and many tens of thousands of dollars of debt later to discover how wise Uncle Ross actually was.

[cappuccino]

I need to get my credit report, I'd be happy to be part of the group project. I'm currently paying off a car payment and credit card debt totaling ~$9,500. I expect to finish paying off the card by next spring.

Overall I've been pretty good with my finances, a large fraction of my credit card debt was incurred paying for car repairs on my other car and moving expenses so it wasn't like I racked up all that debt on shopping sprees.

I've only had credit history for a few years now so I'm still relatively new and I hope to be able to seriously consider purchasing my first house in a couple years or so.

The one thing that frustrates me is that I'm a late-comer to the housing and financial market, only having come-of-age this decade. I'm not alone in that respect, seeing all house prices ridiculously inflated out of young people's range.

[LadyShea]

Actually if you have good credit and your income is in line, and you want to actually live in the home you purchase, this is an excellent time to buy a home and will be for the next few years IMO.

[seebs]

Well, Transunion has blocked me -- I think maybe they wanted me to say "NONE OF THE ABOVE" rather than identifying the bank through which a long-gone loan USED to exist.

Experian and Equifax both show me with nothing negative, no unexpected inquiries (except for a junk faxer I talked to once long ago, and haven't the time or attention to sue), and no errors other than the usual run of typos in previous employer names and the like.

I assume my credit must be okay, as I am qualified to hold mortgages on two houses right now.

[seebs]

Oh, and speaking of homes and such: If anyone wants a fixer-upper in a sorta rough neighborhood in Saint Paul, I'll make you a deal. :)

[Sauron]

I originally thought of writing an article to get all the stuff I've researched out there, but then thought a thread might be a better way to open the conversation and maybe even be an interesting "group project".

Unfortunately due to identify theft, credit report “mixing” and errors, and unscrupulous- but highly motivated- debt collections companies, even the most responsible person may find themselves fighting the credit industry. Add to that the current credit crisis, falling housing prices and equity, mass layoffs and many more people will find themselves dealing with credit problems.


Everyone should get a free copy of the credit reports once per year, as allowed by law. Only use AnnualCreditReport (http://www.annualcreditreport.com), as other advertised sites and companies are not part of the legally mandated free credit report program. If there are any errors, or anything does not match your records you will need to dispute it.

If everyone who reads this post gets their reports this week, I am willing to bet at least 5% will have one or more errors. Anyone wanna do this as a team effort?

Wiki effort?

[LadyShea]

Wiki effort?

?? not sure what you mean. I just thought we could all check our credit and help each other out kinda thing, do you have something more in mind? If so I am all about helping people.

[lisarea]

I hate those extortionist credit reporting agencies. They have fucked with me too many times just putting random bullshit on my credit reports, so now I'm their enemy forever.

I get my credit report every year, usually just so I can be a pain in their ass and cost them a little money whenever I can. I also have this policy where, like, if someone I don't recognize says Hi to me, if I see someone on television who has the same first or last name as me, if I see someone wearing a kind of shirt I have, if I make or receive a wrong number call, or if someone looks at me too much or whatever, I assume it is somehow the result of identity theft, so I call the credit reporting agencies and make them put a fraud alert on. I do this about every three months or so. Sometimes more if I'm bored or feeling extra mad at the world.

So anyway, I guess I don't have any very good credit management tips right now, but I heartily endorse being a pain in the ass to those fuckers.

[seebs]

Lisarea, is it TRUE that you never pay your bills on time?

I'm just askin'. And until I'm sure you pay your bills on time, I'm not givin' you a quarter for no gumballs.

(... oh, look, you seem to have been denied financial services!)

[LadyShea]

lisarea, fucking with the credit bureaus as well as scumsucking collectors giving them false info, and being a general pain in the ass, is a toldly acceptable goal in this project. I am happy to participate in that.

BTW, I have gotten 5 calls now, by Im pretty sure debt collectors, looking for some guy with our last name. The first names aren't even close, and nobody in hubby's family has that first name. They are resorting to random calls to try to find people, which tells me they wouldn't think twice about putting something on my credit report because someone, somewhere with a middle name of Michele or whatever owes them money. If I had the balls I might fuck with them 419eater style.

Oh and a collector called my Grandma (of "Fuck You Grandma" fame) looking for my brother over a debt. My grandma who lives 1000 miles away and doesn't speak to my brother. WTF?

ETA: I started this thread because I have an itch on this issue and I need to scratch it, ya know? I had to stop trying to help people NOT pay their old debts on another site...it was seen as unethical or some shit.

Paying your debts to and/or negotiating and settling with the original creditor? Yeah, one should do that if possible.

Not paying, negotiating or settling with the bottom feeding debt collectors who bought the tax written off debt for .02 on the dollar and therefore anything they collect is pure profit? Not paying debts that aren't even yours just to stop the harassment or be able to buy a house or something? I don't have an ethical issue with things like that, personally.

[seebs]

I think we're getting debt collector calls on the fax line. I have recordings of me telling them it's a wrong number and to stop calling.

[lisarea]

Lisarea, is it TRUE that you never pay your bills on time?

Oh. You don't know the half of it.

We smoke as we skip out on our bills!

http://www.meme.ca/mooninites.jpg

[viscousmemories]

As some of you may recall, I walked away from a foreclosure, a couple maxed-out credit cards and a few other various debts about 6-7 years ago and I haven't had any loans or revolving credit since then.

Some of you may also recall that I recently lost a great job opportunity because of my credit report. This inspired me to request said credit report from all three agencies, which I received a couple months ago.

I think there are errors but it's hard to tell. For example there are two entries for Detroit Edison but I only had electricity in the one house. :wtf:

[LadyShea]

Would you like to try to clear it up vm? There's quite a bit that can be done legally and for just the cost of postage, all the while making it a pain in the ass for the credit bureaus, so lisarea has satisfaction. Maybe even a lawsuit in it...bonus.

[ms_ann_thrope]

I am slightly drunk, so not in a good position to check accuracy at the moment. I was, however, able to print the reports from all 3 agencies, so I'll review everything over the next couple of days.

Thanks, LadyShea, for the inspiration! :squeezle:

[viscousmemories]

Would you like to try to clear it up vm?
I would. I've even given some thought to paying off some of those old debts now that I'm making a little money, but I'm concerned that it's not a good idea at this point. I know negative items are removed from the report after seven years, but I've heard that any activity on an account (including payments) can reset the clock. So with almost all the negative items on my report scheduled for removal in a few months, I'm reluctant to do anything.

[LadyShea]

ETA: To make this simpler, anything with a date of last activity of 2001 or that shows it will be coming off soon just leave alone. We're looking for anything older than that, or that has been re-aged, or is duplicated etc. Basically things that are reported wrong.

And you're right, don't even talk about payment yet, because you're right it can restart the clock. Most things come off after 7 years, some longer.

Did you get all 3 credit reports? They report slightly differently and you need to get some specific information off them to get started. One even says when an item is set to be removed (transunion?) This is kinda methodical so just pick the first negative item (that isn't set to be removed soon or shows a date of last activity before or after 2001) and check for the following:

1. Is it the original creditor or a collections agency?
2. What is the date of last activity? Does the listed date match your recollection? Some collectors artificially and illegally re-age debts
3. What kind of account was it? Credit card, utility, etc.?
4. Does it show open collections, factoring, charge off?
5. What state was the debt incurred in?

Texas is the most debtor friendly state actually, there are some specific laws that are in your favor.

[Dingfod]

Would you like to try to clear it up vm?
I would. I've even given some thought to paying off some of those old debts now that I'm making a little money, but I'm concerned that it's not a good idea at this point. I know negative items are removed from the report after seven years, but I've heard that any activity on an account (including payments) can reset the clock. So with almost all the negative items on my report scheduled for removal in a few months, I'm reluctant to do anything.Rightfully so. You are correct, any payment or promise of payment, or possibly even acknowledging you owe the debt resets the clock.

[seebs]

Interestingly, both Experian and Equifax claim one of my cards has a limit of $28k, but the card's statements say $25k. No idea why.

[Bella]

I tried using that link but came up empty - they would not provide my information online and I'm pretty sure it's because my credit is in the toilet.

I was unemployed for about seven months last year while in therapy and I stopped paying my credit card bills and my student loans at that time. I was on public assistance that paid my rent and gave me food stamps and that was all the income I had for about four months of that time - the other three months were spent income-free sponging off friends and my boyfriend. The majority of my credit card debt comes from the grandiose spending I used to do while manic - as I'm getting ready to move to a new apartment I'm finding all the shit that seemed like a good idea to buy (the same blouse in three colours?) at the time but I never got around to using and is now too late to return.

I know I'll have to get around to consolidating or even filing bankruptcy at some point. I just don't have the energy right now or the time. Everything else is so overwhelming.

[LadyShea]

They have to provide you with your credit reports. I was once blocked online and it was because of a mistake in my SS# . If you made a mistake in your verification information (address or debt amount or account number or whatever they asked) they will disallow web access for that session. Try again and be very careful with your data entry.

You can also order them through the mail.

[SharonDee]

Following the link, I got a credit report from Equifax and FTP'd it to myself at home for reading later. Today I got an email from the Identity Theft service I signed up with, saying, "Activity in your credit file has triggered this alert."

This is the only alert I've ever gotten from them and I triggered it myself? Hmm ... I wonder if this service has been a waste of my money.

[LadyShea]

If that's the case Sharon, it does sound like it's not worth paying for!

[seebs]

Well, it's quite possible that you simply haven't been targeted. In all the time I've had security systems, I've only ever had them go off in response to my activities. That doesn't mean they're worthless...

[SharonDee]

But I got a new car loan and two education loans that never triggered the alert. How do they determine what's suspicious and what isn't?

[seebs]

Dunno. Could be that fake attempts to get credit reports are sometimes part of identity theft. I would expect car loans and education loans to be VERY poor choices for identity theft -- neither is something you can easily cause to Just Disappear.

[Sauron]

Actually if you have good credit and your income is in line, and you want to actually live in the home you purchase, this is an excellent time to buy a home and will be for the next few years IMO.

As long as you are prepared to see the value of your house continue to decline another 5% to 15%. The real estate market hasn't hit bottom yet and in most places - except Seattle :fuming: - the market will be weak for at least another year or two.

If you plan to live in it for 5 or 10 years, then this is probably not an issue.

[Sauron]

Wiki effort?

?? not sure what you mean. I just thought we could all check our credit and help each other out kinda thing, do you have something more in mind? If so I am all about helping people.

I was thinking of a wiki type effort that would remain a persistent resource with a sticky on it.

We could probably do that for several things besides credit:


FF Guide to Credit
FF Guide to Computers
FF Guide to Budget Travel
FF Guide to Simple Tasty Recipes
FF Guide to Ignoring yguy

[Sauron]

Interestingly, both Experian and Equifax claim one of my cards has a limit of $28k, but the card's statements say $25k. No idea why.

Difference between current credit line and all-time maximum credit line?

I.e., you've been reduced by $3k in credit - probably something that all credit card companies will start doing soon anyhow - to manage their exposure.

[Sauron]

Good reading:

America's Money: In their own words - Jennifer Meharg: Fighting foreclosure (1) - CNNMoney.com (http://money.cnn.com/galleries/2008/news/0803/gallery.real_stories/index.html?cnn=yes)

[seebs]

Interestingly, both Experian and Equifax claim one of my cards has a limit of $28k, but the card's statements say $25k. No idea why.

Difference between current credit line and all-time maximum credit line?

I.e., you've been reduced by $3k in credit - probably something that all credit card companies will start doing soon anyhow - to manage their exposure.

I don't THINK so. I don't recall it ever having been anything but $25k, not for several years at least. But they reported it, to two agencies, as $28k in February of this year. It wasn't.

Maybe that's the "we'll approve the charge and then charge you for going overlimit" range.

Only time I recall having a limit reduced noticably was a card that I, repeatedly, pulled everything out of at 0% for 6 months, then paid back after 5 1/2 months. They lowered my limit from $22k to $500.

[Sauron]

Something for LadyShea:

Debt collection complaints up nationwide (http://blog.seattlepi.nwsource.com/consumersmarts/archives/134802.asp)

[viscousmemories]

Hey Ladyshea,

I got all three credit reports back when this thread was active, but it hurt my little brain trying to figure them out. :dopey:

I'm still interested in fixing this, though. I just don't really know what to do.

--Agonizing in Austin

[LadyShea]

Hey Ladyshea,

I got all three credit reports back when this thread was active, but it hurt my little brain trying to figure them out. :dopey:

I'm still interested in fixing this, though. I just don't really know what to do.

--Agonizing in Austin

Well, you need to look at each item for the accuracy of the following

1. Amount owed
2. Date of last activity
3. Is it actually your debt/account? (you'd be surprised how many people have phantom stuff on the reports)

If anything looks odd, post it and we'll go from there.

[LadyShea]

Hey vm, were you able to look over your report for accuracy?

Also look for any date of last activity more than 7 years old, or very recent on account you haven't used. Sometimes they change the date (called re-aging) so they can keep it on your report.

[viscousmemories]

I think there's a lot of re-aging on my report. I defaulted on a bunch of things back in 2000/1 and most of them are still on there showing 2004-07 as the date. I don't think I have any of the original records so I don't know how to prove that they've re-aged them. Any clues?

Incidentally I just paid $30 for a side-by-side report from all three agencies because I found it so painful trying to compare the hardcopy versions. It's no wonder, too. I don't think all three agencies agree on the details of any of the debts although they all seem to agree that the debts exist.

[seebs]

Ironically, I now want to get current credit reports, but I used my one-free-per-year. I'm gonna have to get clever, or actually pay money. Not sure which I like less.

[wildernesse]

Here's some random, credit-related advice that I have discovered might be useful to more people than I would have thought:

Do NOT take financial advice from a collection agency. They are only interested in their own benefit.

[LadyShea]

I think there's a lot of re-aging on my report. I defaulted on a bunch of things back in 2000/1 and most of them are still on there showing 2004-07 as the date. I don't think I have any of the original records so I don't know how to prove that they've re-aged them. Any clues?

Does it say the date of last activity was 2004-2007 or the date last reported?

Yes, I'll get you a sample for a debt verification letter to send each creditor you think is reporting inaccurately.

Did you ever make any payments or promises to pay, that you remember, after defaulting?

Incidentally I just paid $30 for a side-by-side report from all three agencies because I found it so painful trying to compare the hardcopy versions. It's no wonder, too. I don't think all three agencies agree on the details of any of the debts although they all seem to agree that the debts exist.

And guess what, you can sue, and get 1000 per false item. Also, since you did not get a job due to your credit report you can sue for even more. First things first though.

[LadyShea]

Ironically, I now want to get current credit reports, but I used my one-free-per-year. I'm gonna have to get clever, or actually pay money. Not sure which I like less.

Why do you want another one, do you think there have been significant changes?

[seebs]

Ironically, I now want to get current credit reports, but I used my one-free-per-year. I'm gonna have to get clever, or actually pay money. Not sure which I like less.

Why do you want another one, do you think there have been significant changes?

I sued MSI Computer over a rebate (and won). The day I sued them, someone using a computer on their network filled out fake credit applications in my name, resulting in hundreds upon hundreds of spams from a small number of companies, a couple of phone calls, and so on.

So I want to see if any of this resulted in actual pings on my credit report.

The form he filled out had a space for an SSN, and he put in something which passes at least some sanity checks, but may not ACTUALLY be my SSN. The company that said they were given one said they wouldn't say anything more without a subpoena, so we'll have to file a separate suit and start sending those out.

[viscousmemories]

Does it say the date of last activity was 2004-2007 or the date last reported?
The only rows they have are "Date Opened" and "Balance Date". Most of them don't even have the "Date Opened" field filled in, and there doesn't seem to be any rhyme or reason to the "Balance Date". I have made no effort or promises to pay any of these debts, and in fact have not responded to any communication from any of these creditors since I defaulted on them back in 2001/2.

[LadyShea]

Does it say the date of last activity was 2004-2007 or the date last reported?
The only rows they have are "Date Opened" and "Balance Date". Most of them don't even have the "Date Opened" field filled in, and there doesn't seem to be any rhyme or reason to the "Balance Date". I have made no effort or promises to pay any of these debts, and in fact have not responded to any communication from any of these creditors since I defaulted on them back in 2001/2.

Hmmm. There should be a DLA or date of status. I don't know about the side by side one, but your individual ones should have it. Experian even states when the item is scheduled to be removed from the file. Were most of them credit cards? If so the statute has run out for them to take legal action, so you can safely dispute them. If they aren't credit cards, you may want to wait another year. Have any of them been purchased by debt buyers?

Also, get in your mind that you may sue, as you work through this it may become a plausible choice and so you want to document any and all communications. Make yourself a spreadsheet of only those accounts that have little or no info, are very old, or have different info between the three reports as these are the ones most likely to be erroneous. Put the account number, DLA or date of status or last payment or whatever you can find.

seebs, if you have reason to believe you were the victim of fraud, you have the right to another free credit report. Put a fraud alert on all of them then ask for a copy.

[seebs]

Yeah, but I have to do more work, I can't just use the free credit report site. :p

[Dingfod]

Screw the free credit report dot com site, it's neither free nor a comprehensive credit report. Go to the individual credit reporting agencies, Transunion, Experian, and Equifax, get a free one from each of them.

[LadyShea]

Screw the free credit report dot com site, it's neither free nor a comprehensive credit report. Go to the individual credit reporting agencies, Transunion, Experian, and Equifax, get a free one from each of them.

There is a Federally mandated site, AnnualCreditReport (www.annualcreditreport.com) that allows you to get your free yearly reports from all three agencies.

[Dingfod]

I'd forgotten about that one, but hear the advertisement for that stupid other one all the damn time.

[Ensign Steve]

Personally, I love the jingles. I know they're for snake oil, but I enjoy the music.

shoulda gone to free credit report dot com
:mariachi:

[Angakuk]

My wife has downloaded all three of those jingles (I hope there aren't any more of them) and added them to the mp3 collection she plays on her car stereo. When we are riding in her car, and one of those songs comes on, I am powerfully tempted to get out and walk, even when we are driving on the freeway.

In other words, you, Ensign Steve, are one sick puppy.

[viscousmemories]

Okay Shea, I spent the last couple hours creating a matrix of the information from the three hard-copy credit reports I ordered last December. As you can see all three agencies use different names for the date and amt. fields, not to mention reporting different amounts! I'm less confused when I look at it laid out in spreadsheet format like that, but not much.

[LadyShea]

The spreadsheet is more useful as a worksheet. Also, when you compare this years to next years you'll be able to see re-aging, balance increases etc at a glance. Do not lose your reports...put them in your filing cabinet. My 2 year old credit report was key evidence when I got sued, and won the case for me.

Items 1, 4, and 5 ignore for now as they should be coming off record soon. I'll teach you a trick in October for seeing if items have come off as they are supposed to without paying for a new report.

Items 6 and 7 seem to be reported correctly, you'll just have to live with them until next year.

Items 2 and 3 are all kinds of messed up. Are they the same debt reported twice (nasty trick in their arsenal)? Perhaps once under the original creditor and once under the debt buyer?

The debt collector/buyer has definitely re-aged it. See how they made the date of collection the new "opening date"?

Can you PM me the name of the creditor/debt buyer on those please?

Is item 8 related to item 7 or are they completely different debts?

[viscousmemories]

:bow:

Yes, items 2 and 3 are the same debt. My power bill from the house that was foreclosed on. Original creditor Detroit Edison, current debt owner is Asset Acceptance LLC (who also own 4 & 5 btw).

7 & 8 are totally different debts.

I didn't put the foreclosure on this list, but it's also slated to come off this month.

[LadyShea]

Are they trying to collect that you are aware of, or are you not findable to harass?

Asset Acceptance is one of the known bottom feeders. You may want to seriously consider suing them, just 'cuz.

From http://www.budhibbs.com on this company
Don't be surprised if you notice the date of last activity on your credit report, as stated by AAC is WRONG! Deliberately changing the date of last activity is a way to scam consumers into thinking they are entitled to money they would not legally be allowed to collect.

This is standard procedure for them -- from "re-aging" the debt on the credit history, to suing on what is probably a statute of limitations claim, to reneging on a written promise.

Watch out for the mystery $50-$75 payment you didn't' make that magically revives the account. When pressed, they claim to do an investigation and "discover" that they made a "clerical error" and mistakenly posted someone else's payment to your account.

Bud Hibbs recommends Dispute Credit Report Errors and Mistakes from Equifax, Trans Union and Experian - www.MyFairCredit.com (http://www.myfaircredit.com/) for Fair Credit Reporting Act violations (he concentrates on Fair Debt Collections I think). There is a form for a free review.

[viscousmemories]

Cool, thanks.

A couple of the creditors (6 & 8) started harassing me recently, but to my knowledge AAC has no idea where I am.

(There's only one 'd' in budhibbs.com btw. Your link is spammerific.)

[LadyShea]

Cool, thanks.

A couple of the creditors (6 & 8) started harassing me recently, but to my knowledge AAC has no idea where I am.


Oh wow, that's something you can fight too. Are they calling or writing?

[seebs]

Ooooh, harassing creditors! Harassment = lawsuit by you against them and OODLES of fun.

[viscousmemories]

Oh sorry, I shouldn't have said harassing. I just meant I'm getting the occasional mail and phone call that I don't answer. It's not really over the top or anything.

[LadyShea]

Could still be loads of fun, if you're willing to play. Collectors violate the law all the time, banking on the fact that most consumers don't know anything. Have you received a letter in the last 30-days?

Also, some of them may be preparing to sue because they are about to fall off the report. Monitor the papers in your previous locales in case they publish a notice in lieu of in person service.

I think you should start with an online dispute for the duplicate account though. It may be enough to get it corrected, or just a starting point. It will however place a notice of dispute on the reports themselves, so anyone looking at it will see it.

Go to each CRA website individually and dispute the Asset Acceptance account (this is also the trick for seeing which items are still on the report ;)). Also, start a hard file and a digital file and keep meticulous notes with the date and time you did anything, spoke to someone on the phone (get their name, location, department), etc. Keep any and all letters received in a hard file.

Although both can report, they cannot both report with a balance. If the original creditor sold the debt to Asset, then the original creditor must show a zero balance. Either way it is a duplicate, therefore an error.

[LadyShea]

Found an similar case (Asset reporting twice) online here (http://www.mycreditgroup.com/blog/credit-repair-should-be-easy/)

[viscousmemories]

Can you recommend a reputable credit repair company or a good way to find one? I have more money than time right now, not to mention that I'd rather pull my own teeth than wrestle with the three horsemen of the apocalypse.

[LadyShea]

All the credit repair companies seem to be rip offs. I haven't found a legit one yet...and neither has the FTC

Jodie Bernstein, director of the Federal Trade Commission's Bureau of Consumer Protection in Washington, D.C., observes that while "there are legitimate, not-for-profit credit counseling services, the FTC has never seen a legitimate credit repair company." http://www.bankrate.com/brm/news/advice/19980720c.asp

You'd do better to pay me ;). This is one of the services I plan to offer through my new company, BTW.

[viscousmemories]

When can you start?

[Ensign Steve]

Yeah, I was about to say, the two of you have already done most of the work that any agency would do.

[LadyShea]

All the credit repair companies can do is dispute stuff for you and they charge a fortune and there are no guarantees. It takes literally 5 minutes to fill out the online dispute form...but then you have to follow up in 30 days.

I plan to charge 25 bucks an hour for this kind of thing. For you, though, I'll do it for free if you'll write me a nice quote and act as a referral when I am up and running. It'll be good practice for my real clients.

[livius drusus]

That would be so cool. You have to update this thread every step of the way even when vm's an official client, Shea.

ETA: Cross-post. OMG charge him!

[viscousmemories]

Yeah free isn't necessary, but I'll take a discount. :D

[LadyShea]

That would be so cool. You have to update this thread every step of the way even when vm's an official client, Shea.



Okay update. So far I have about one billable hour in research.

Some important acronyms

FDCPA- The Fair Debt Collections Practices Act
FCRA- The Fair Credit Reporting Act
FACTA- The Fair and Accurate Credit Transactions Act
OC-Original Creditor
CA-Collection Agency or debt buyer
CRA- Consumer/Credit Reporting Agency (TransUnion, Equifax)

I found that it is legal to have an item listed twice, once under the original creditor and once under the collections agency or debt buyer (under certain conditions, but I don't know if these are met until I see his reports). So, vm will not be able to dispute simply on duplication.

However, there are numerous requirements under the FCRA regarding the accuracy and verifiability of the information given to the CRAs.

Most Credit Repair services and DIY type discussion boards recommend disputing all negative debts, or sending debt validation letters demanding all kinds of specific information and documentation that is not required under the FDCPA. The creditors are wise to these tactics, and know the FDCPA and its loopholes in their favor. They even send out form letters stating "We are not required under the FDCPA to provide the requested whatever". Also, since vm does not dispute the validity of the debt itself, and to do so would be unethical and fraudulent, we'll go a different route by requesting verification of the accuracy of information furnished to the CRAs under the FCRA. So we won't dispute the debt, we will require accuracy in the reporting of the debt see?

This is not as well known by the creditors, and some requesting investigations under the terms of the FCRA have received form responses based on the FDCPA. They are two very different things. If information cannot be verified at all, or documented as accurate, it cannot be reported. CAs very rarely can document the accuracy of anything. OCs often don't keep the original files once they have transferred or sold a debt to the CA. It is very possible, maybe even into probable, that the information cannot be verified.

So, that's where I am until I get vm's credit report in the mail and can look at details and specifics.

[ChuckF]

Found in this month's Harper's, page 26, a letter from the Treasury Department's Office of Foreign Assets Control to Rep. Mike Thompson (D-California):

Dear Congressman Thompson,

This is in response to your letter on behalf of your constituent [redacted], with respect to his recent efforts to purchase a house. During the process of trying to secure a home loan, [redacted] learned of information on his credit report alleging he is the son of Saddam Hussein.

We concur with your assessment that your constituent [redacted], of Arcata, California, is not Ali Saddam Hussein Al-Tikriti, aka Hassan, who is identified by the Office of Foreign Assets Control as a Specially Designated National.

With regard to your request that we ensure that your constituent's credit report is cleared of any reference to Saddam Hussein, [redacted] should contact the credit bureaus and the Federal Trade Commission directly. He is welcome to provide them with a copy of this letter.

Sincerely,

Adam J. Szubin

[LadyShea]

WTF? He has to write the credit bureaus to dispute being Saddam Hussein's son? That's craziness.

[Ensign Steve]

Wouldn't his kids still have tons of money? Maybe it would be good to have that on your credit report.

[viscousmemories]

I'm not Saddam's son either, Shea. Let me know if you need me to send you a notarized letter to that effect.

[LadyShea]

I got vm's stuff today, and while there is quite a bit he could dispute, mostly they are things scheduled to come off the report soon enough that I wouldn't bother. I will be monitoring for him, however, for the next few months to ensure they come off as they should.

Asset Acceptance, however, is definitely, absolutely listing what appears to be one debt as two separate open accounts. They even assigned different account numbers and changed the amount slightly. That's a willful violation of the FCRA. I will be composing a dispute for vm to sign and mail.

[viscousmemories]

Right on!

[LadyShea]

Well, I changed my mind and suggested to vm he do nothing right now.

There are a number of possible negative consequences any action on his part could produce...such as waking up creditors who are ignoring things that he is active. They might start reporting or ramping up collections efforts if they see a dispute on his credit report. Let the sleeping dogs lie for the moment.

[Ensign Steve]

Do nothing until what? More things age off?

[LadyShea]

Do nothing until what? More things age off?

I don't know until when/what. Currently he has a good job, has some money, is building his good credit, isn't looking to buy a house anything. About 60-80% of his negatives are aging off in the next year and he will be in pretty good shape once they do. I suggest he simply revisit the issue around the first of the year.

[LadyShea]

Well, I put in some more research hours, and definitely want to take a look at vms report again in January. He lives in TX, which has some strong pro-consumer laws and short statute of limitations for all types of debt. If any of the fuckers don't do exactly what they are supposed to and when they are supposed to he can nail them to the wall.

vm, continue to keep any written correspondence you receive...just in case anyone fucks up yu have evidence. You can send it to me if you want, I started a file on ya.

[viscousmemories]

Groovy, thanks!

[Dingfod]

I checked my credit score yesterday after I got notice from Wamu that a more than 20 point change had occurred. It's up about 100 points since we went on a debt management plan last October. It's now well over the voodoo line (my made-up term for 500 points). It wasn't a year ago. 500 is where most creditors won't touch you with a 10 foot pole; you can't even rent a decent apartment if you're under 500. Woohoo, only another 3 years of voluntary poverty and we'll be debt free and living in Denver!

[viscousmemories]

The apartment squian and I are moving in to next month is letting us both sign the lease (I'm only an 'occupant' in the apt. we're in now), and I recently acquired a credit card with a $500 limit. Maybe things have already started looking up for me.

[pescifish]

Anyone know what how the recent economic dive has done to how most consumer lenders handle the credit scores? LadyShea, you still looking at this sort of stuff?

My long time understanding matches Dingfod's voodoo line of 500 being a 'must have' credit level, but I was wondering if it's still the same now. Is there a new 'voodoo line' in the industry?

:shakecane: I have read this thread thoroughly and understand it is old, yet still wish to reply.

[Ymir's blood]

did somebody say voodoo?

:voodoo:

[pescifish]

Hush, you. :shakewhedon:

Here, have some more Fly Cemetery Pie to spoil your holiday dinner!

[LadyShea]

Anyone know what how the recent economic dive has done to how most consumer lenders handle the credit scores? LadyShea, you still looking at this sort of stuff?

My long time understanding matches Dingfod's voodoo line of 500 being a 'must have' credit level, but I was wondering if it's still the same now. Is there a new 'voodoo line' in the industry?

:shakecane: I have read this thread thoroughly and understand it is old, yet still wish to reply.

Ya know, I am not sure, I have confined my research to erroneous entries and blatant falsities, and illegal collections practices, and have never really worked with scores or even how lenders choose to offer credit

Interesting bit of info in the current economy if anyone knows this stuff.

[Dingfod]

I was watching some program about this guy buying foreclosed houses in Detroit, flipping them for a profit* by financing them himself with $500 down. He said he started out trying to sell to buyers with a credit score of at least 500, but if it didn't sell the first week he would sell it to someone that had held a job for a year. If it didn't sell the second week, just having a job. Third week, a warm body with $500 to put down. That's just one guy interested only in the quick turnaround.


*Examples of potential profit: house purchased for $5000 gets sold for $18,000; another house that sold for $130,000 just a few years ago he bought for $35,000, flipped it for $55,000.

[pescifish]

Was he financing the houses for those buyers? That's a risky business to go into compared to just the house-flipping part!

[Dingfod]

For the most part, he was financing them. The payments are lower than typical rents in the area so his risk is probably minimal.

[LadyShea]

It's been a year, anyone ordered their free credit reports for 2009 yet?

[Zehava]

Not for 2009 yet, though I did have to get several of them last year while house hunting. Everything was fine at that time.

[Smilin]

:depressd::gloomy::rainy:

[viscousmemories]

I got my Experian report. As anticipated most of the bad stuff has fallen off, and it looks like the rest is due to fall off in the next few months to a year. For the first time in a long time, the good stuff is outweighing the bad.

[Crumb]

Thanks for the reminder, LadyShea. I should request new reports and check them out.

:thankee:

[LadyShea]

Apparently Dateline NBC will be doing a segment on collections practices tonight. Might be interesting.

Also, collection scams are up...people calling stating they are collectors, but aren't, and scaring naive people into sending money or giving them bank account info.

Talk to your loved ones! In this economy both legit and illegit collection activities are going into high gear!

[seebs]

So, I'm getting a second mortgage from my credit union to pay off cards. I don't have enough equity to pay everything off, though -- I have a ton of debt from back before I got a day job again. So! I would like to fix this. I've been told credit card rates may be negotiable. How would I go about negotiating them?

[Ensign Steve]

Give them a call and ask. Call the customer service number, do the menus until you get a live person (good luck!), and then just ask if you qualify for a lower rate. It works! I've done it before where I get a card with an introductory APR, and then in six months when it goes up, I call and ask if they can lower it. Sometimes they go all the way back down to the introductory rate.

[seebs]

In this case, it was a 6% transfer deal, I was apparently a day late with a payment, now it's ~12%.

[Ensign Steve]

Oh, yeah, then definitely call. I swear they raise the rate expecting the majority of people not to notice. If one out of 100 call and say "hey can you cut me a break" they'll usually do it. Even if they don't there's no harm in asking.

[LadyShea]

How low can collectors go? This low (http://www.michigancollectionlawblog.com/)

Chase hired UTS to collect on this debt. UTS, priding itself on using "the latest technology" to track down "the hardest to find missing persons and debtors" decided to post the following demand letter on Mr. Ricobene's daughter's Myspace account:

We have been retained by, JPMorgan Chase Bank, to locate and repossess their missing collateral a 2007 Mercedes GL 450. Please contact our office immediately so we can discuss the peaceful recovery of the collateral. Failure to contact me will result in further action against your father James Ricobene. Legal options range from having a replevin order served on you or even worse reporting the collateral as stolen to local authorities in Illinois under the A.R.S. act 18-5-504. Failure to comply with this notice of surrender is a class 5 felony and carries a maximum penalty of imprisonment for two years plus all applicable surcharges. You must contact the writer within 5 days to prevent this action from taking place. You can contact me directly at 800-667-7704 ext 222 or directly at 604-267-1581 ext. 222

Awaiting your immediate response.

Chris Flanagan
Senior investigator

[seebs]

Actually, I'm confused. I had a 6% deal that went to 16% when I was a day late or so with a payment, which I'm paying off via my credit union. The 11% is just a pretty stable 11%.

[LadyShea]

Actually, I'm confused. I had a 6% deal that went to 16% when I was a day late or so with a payment, which I'm paying off via my credit union. The 11% is just a pretty stable 11%.

Sometimes merely contacting them is enough to get a better deal, whether reduced interest or waiver of late fees. 90% (probably more) of people simply never call.

I would make a spreadsheet of every debt you have. Include the balance, interest rate, and whether you wish to maintain credit with that card/company.

If you choose to pay off some of it, prioritize. Paying off the highest balance and highest interest rates will allow you more of you monthly funds to attack the others. Once done you should have left those you wish to negotiate with.

If you are not interested in maintaining credit with a specific company, ask if they will freeze the account balance and reduce the interest rate for payoff.

If you want to maintain the account, call and ask how you can get an interest rate reduction.

[seebs]

Might do that. It'd be convenient to keep it, but I am toying with the idea of cancelling one or more of these, and/or trying to get better deals on new cards.

[LadyShea]

Make sure you have an overall plan. You want your balance to credit limit at about 30% for maximum scorage (if you care about your FICO score that is)

Balance transfers to lower interest rate cards is probably a good starting point, if you can find some good ones.

Some argue that the best thing to do is not carry revolving debt at all, and keep a card for emergencies only or only charge what you can pay at the end of the month. There's something to that as well.

[Dingfod]

We have paid off about 1/3 of our credit card debt in the past year and a half. A little over two more years and we're free of debt except for our mortgage. Yea!

[lisarea]

Bumping because this seemed like a good place for it.

Un-Broke: The Seth Green Cribs Edition from quinn (http://www.funnyordie.com/videos/0b8581d2e3/un-broke-the-seth-green-cribs-edition)

It's from some kind of special called Un-Broke that's going to be on TV next week where celebrities school you on personal finance or something like that.

Probably not too enlightening in terms of actual money management strategies, but still.