Credit Repair Sixth edition phần 4 potx

CLEANING UP YOUR CREDIT FILE 4/11 ing statute of limitations has expired, which- ever is longer. • Paid tax liens from the date of the last activity for up to seven years. • Most criminal records, such as information about indictments or arrests, may be reported for only seven years. But records of criminal convictions may be reported indefinitely. • Accounts sent to collection (internally or to a collection agency), accounts charged off or any other similar action may be reported from the date of the last activity on the account for up to seven years. The date of last activity is no later than 180 days from the delinquency itself. Creditors must include the date of the delinquency when they report past due ac- counts to credit bureaus. The clock does not start ticking again if the account is sold to an- other collection agency. • Bankruptcies, lawsuits, paid tax liens, accounts sent out for collection, criminal records and any other adverse information may be reported beyond the usual time limits if you apply for $150,000 or more of credit or insur- ance, or if you apply for a job with an annual income of at least $75,000. As a practical mat- ter, however, credit bureaus usually delete all items after seven or ten years. Laws Regulating Credit Bureaus Credit bureaus are regulated by the Federal Trade Commission under the provisions of the 1971 Federal Fair Credit Reporting Act (FCRA) (15 U.S.C. §1681 and following). The FCRA is designed to bar inaccurate or obsolete informa- tion from appearing in credit reports, and it requires credit bureaus to adopt reasonable procedures for gathering, maintaining and dis- tributing information. The FCRA also regulates who can access credit reports. Most states have passed similar laws, some imposing more limi- tations on creditors and credit bureaus. Appendix 2 contains the text of the FCRA. To get a copy of your state law governing credit bureaus, contact your state consumer protection agency (listed in Appendix 1, Sec- tion F). 3. Review Your Report As you read through your credit report, make a list of everything that is incorrect, out-of-date, mislead- ing or not authorized to be in your file. In particu- lar, look for the following: • incorrect or incomplete name, address or phone number • incorrect Social Security number or birthdate • incorrect, missing or outdated employment information • incorrect marital status—a former spouse listed as your current spouse 4/12 CREDIT REPAIR • bankruptcies older than ten years or not iden- tified by the specific chapter of the bankruptcy code • lawsuits or judgments reported beyond seven years or beyond the expiration of the statute of limitations • paid tax liens or criminal records older than seven years, delinquent accounts older than seven years or which do not include the date of the delinquency • credit inquiries by automobile dealers from times you simply test drove a car or from other businesses when you were only com- parison shopping (creditors cannot pull your credit report without your permission until you indicate a desire to enter into a sale or lease) • commingled accounts—credit histories for someone with a similar or the same name • duplicate accounts—for example, a debt is listed twice, once under the creditor and a second time under a collection agency • premarital debts of your current spouse attributed to you • lawsuits you were not involved in • incorrect account histories—such as a late payment notation when you’ve paid on time or a debt shown as past due when it’s been discharged in bankruptcy • voluntary surrender of your vehicle listed as a repossession • paid tax, judgment, mechanic’s or other liens listed as unpaid • a missing notation when you disputed a charge on a credit card bill • closed accounts incorrectly listed as open—it may look as if you have too much open credit, and • accounts you closed that don’t indicate “closed by consumer”—it looks like your creditors closed the accounts. CLEANING UP YOUR CREDIT FILE 4/13 Sample Equifax Credit Profile 4/14 CREDIT REPAIR X Sample Equifax Credit Profile CLEANING UP YOUR CREDIT FILE 4/15 Sample Trans Union Credit Report 4/16 CREDIT REPAIR Sample Trans Union Credit Report CLEANING UP YOUR CREDIT FILE 4/17 Sample Trans Union Credit Report 4/18 CREDIT REPAIR Sample Trans Union Credit Report CLEANING UP YOUR CREDIT FILE 4/19 4/20 CREDIT REPAIR [...]...CLEANING UP YOUR CREDIT FILE 4/ 21 4/ 22 CREDIT REPAIR CLEANING UP YOUR CREDIT FILE 4/ 23 4/ 24 CREDIT REPAIR CLEANING UP YOUR CREDIT FILE 4/ 25 4/ 26 CREDIT REPAIR D Dispute Incorrect, Outdated and Misleading Information in Your Credit File Under the Fair Credit Reporting Act, you have the right to dispute all incorrect, out-of-date and misleading information in your credit file Once the credit bureau receives... you’ve been sued or you think a creditor may sue you A creditor with a judgment against you will likely use this information to try to collect Credit bureaus aren’t required to add any of this information, but they often do They are most likely 4/ 32 CREDIT REPAIR to add information on jobs and residences, as that information is used by creditors in evaluating applications for credit They will also add your... F Add Positive Account Histories to Your Credit File Often, credit reports don’t include accounts that you might expect to find Some major commercial lenders don’t report mortgages or car loans Local banks or credit unions often don’t provide information to credit bureaus If your credit file is missing credit histories for accounts you pay on time, send the credit bureaus a copy of a recent account... the credit bureau for disputing information Also, enclose copies of any documents you have that support your claim It is also a good idea to send a copy of your letter to the creditor who furnished the incorrect or incomplete information to the credit bureau These “furnishing” creditors have a duty to correct and update the information that they send to credit bureaus If you don’t hear from the credit. .. included in Appendix 2.) 2 If the creditor agrees that the information is incorrect and should be removed from your credit file, send a copy of the creditor’s letter to you (or the name, title and phone number of the person with whom you met) to the credit bureau reporting the information Use Form F-26: Creditor Verification found in Appendix 3 or on the CD-ROM 3 If a creditor cannot or will not assist... will have to call the credit bureau directly for help Credit bureaus have 800 numbers to handle consumer disputes about incorrect items in their credit files that are not removed via the normal reinvestigation process Use the credit bureau’s toll-free number as follows: Experian 888-397-3 742 Trans Union 800-916-8800 Equifax 800-685-1111 (this is the number to get a copy of your credit report —Equifax... subsequent creditors in person than to try to explain it in such a short statement Many statements or summaries are simply ineffective Few creditors who receive credit files read them In any David (consumer) vs Goliath (credit bureau) dispute, creditors tend to believe Goliath To make matters worse, your statement might stay in your file even longer than the disputed information CLEANING UP YOUR CREDIT. .. that credit bureaus complete the reinvestigation more quickly These requirements are not hard for a credit bureau to meet Credit bureaus and more than 6,000 of the nation’s creditors are linked by computer, which speeds up the verification process Furthermore, if you let a credit bureau know that you’re trying to obtain a mortgage or car loan, the employees can do a “rush” verification If the credit. .. not mine: Creditor’s Name Account Number Dept of Education 12 345 6789 Explanation Pre-marital debt of my husband, Brian Jones Strong’s Dept Store 09876 543 21 I’ve never had a Strong’s account X The account status is incorrect for the following accounts: Creditor’s Name Account Number Correct Status Big Bank 12 34 5678 9012 Discharged in MasterCard bankruptcy; balance owed is $0 CLEANING UP YOUR CREDIT FILE... balance owed is $0 CLEANING UP YOUR CREDIT FILE X The following inquiries were not authorized: Creditor’s Name Wowza Bank Visa Date of Inquiry 2/ 14/ xx Explanation I did not apply for credit with Wowza Bank nor authorize them to conduct a credit check of me X Other incorrect information: Explanation (1) My credit report states that I filed a Chapter 13 bankruptcy on July 23, 20xx That is not correct . YOUR CREDIT FILE 4/ 19 4/ 20 CREDIT REPAIR CLEANING UP YOUR CREDIT FILE 4/ 21 4/ 22 CREDIT REPAIR CLEANING UP YOUR CREDIT FILE 4/ 23 4/ 24 CREDIT REPAIR CLEANING UP YOUR CREDIT FILE 4/ 25 4/ 26 CREDIT REPAIR D Trans Union Credit Report 4/ 16 CREDIT REPAIR Sample Trans Union Credit Report CLEANING UP YOUR CREDIT FILE 4/ 17 Sample Trans Union Credit Report 4/ 18 CREDIT REPAIR Sample Trans Union Credit Report CLEANING. like your creditors closed the accounts. CLEANING UP YOUR CREDIT FILE 4/ 13 Sample Equifax Credit Profile 4/ 14 CREDIT REPAIR X Sample Equifax Credit Profile CLEANING UP YOUR CREDIT FILE 4/ 15 Sample