Credit Clinic
IMPORTANT WEBSITES AND CONTACTS
· Credit Score:www.creditkarma.com
· Credit Report:www.annualcreditreport.com1-877-322-8228
· Debt Planner:
o http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp
· Employment Background Check/Homeowners and Auto Insurance Claims at:
o www.choicetrust.com1-866-312-8076
· MIB-Consumer’s Medical Condition at
o http://www.mib.com/html/request_your_record.htmlor 1-866-692-6901
· Unlawful Detainer Registry (Residential/tenant history) at
o www.choicetrust.com or 1-877-448-5732
· ChexSystems at
o www.consumerdebit.com1-800-428-9623
· Fraud:Federal Trade Commission
o https://www.ftccomplaintassistant.gov/1-877-ID-THEFT
· National Do not Call Registry:
o https://www.donotcall.gov/
· Consumer Credit Counseling Agency:
o CCCS Delaware: 800-642-2227
· Delaware State CourtConnect:
o http://courtconnect.courts.delaware.gov/public/ck_public_qry_main.cp_main_idx
· Attorney General Office ID Theft Passport:
o http://attorneygeneral.delaware.gov/consumers/protection/brochure/idtheftapplication.pdf
· Attorney General Office Consumer Protection Unit:
o
The seven year rule
Can a debt collector collect a debt that has remained unpaid for more than 7 years?
Yes, so long as the statute of limitations has not run out. Contact a private attorney or the Legal Services Corporation 302-575-0408 to see if your income qualifies for their services for Delaware’s statute of limitations on debt collections.
The seven-year statute applies to which debts?
The following negative history should not be in your credit report after seven years have passed:
· Paid tax liens;
· Accounts placed for collection or written off as a bad debt;
· Any other unfavorable information more than seven years old.
Ten year rule applies to:
· Bankruptcies;
Special rule for lawsuits and judgments:
· Lawsuits and judgments will be removed from your credit report after seven years or until the statute of limitations has expired, whichever is longer;
When does the seven-year (plus 180 day) clock start ticking?
· From the date when you first missed your regular payment on the debt. The Seven Year Period: Congress intended to establish a date certain – 180 days after the start of the delinquency that led to charge off to begin the obsolescence period. Effective Date: 455 days after the date of enactment of Consumer Credit Reform Act of 1996 orDecember 29, 1997.
Can a debt collector re-age my account?
No. Re-aging means that the collector reports the debt as becoming delinquent on the date it acquires the debt.
If the debt collector re-aged my account, what do I do?
DISPUTE with the credit bureaus AND debt collectors. Ask for validation.
What if I don’t remember what this old collection account is all about?
Ask for validation. In other words, ask (in writing) the collection agency to prove that it owns this debt.
Sample letter regarding removing your seven-year delinquent debt
Name: ______
Address: ______
Telephone: ______
Date: ______
· To:
· Equifax Credit Information Services, Inc., PO Box 740241, Atlanta, GA 30374
· OR/AND
· TransUnion LLC, PO Box 1000, Chester, PA 19022
· OR/AND
· Experian, PO Box 2002, Allen, TX 75013
RE:My Social Security Number: ______
Dear Sir/Madam:
I am writing to have the followinginformation removedfrom my credit report. Upon updating my credit file, please forward me my complete,fair, and accurate credit report. Please send me the names, business addresses, and day time telephone number of each individual withwhom you verified these accounts so that I may follow-up with them.
I have attached a copy of my credit report and have circled each such information. Against each such information I have made a notation (ex. Item #1, Item # 2, etc.) for your reference.
Item #: 1
· Original Creditor: ______(name)
· Original delinquency: ______(date)
As you can see, the delinquency is seven years old. This item is old and obsolete under 15 U.S.C. Section 1681c. Please remove it from my credit report.
Item # 2
· Reported debt collector: ______(name)
· Reported delinquency: ______(date)
The debt collector is attempting to collect the debt that is referenced in Item # 1. old and obsolete under 15 U.S.C. Section 1681c
Sincerely,
Enclosures: List all items you are enclosing
Building Credit
How do I build good credit?
Pay all bills on time and use only about 30% of available credit.
How do I get my free credit report annually?
Under the Fair and Accurate Credit Reporting Act go to www.annualcreditreport.com
How can I get my free credit score?
www.creditkarma.com
What is a FICO score?
The FICO Score (300-850) is created by Fair, Isaac and company to determine your credit risk.
How is my Credit Score compiled?
35% on your payment history, 30% on amount already owed, 15% on length of credit history, 10% on new credit, 10% on type of credit.
Should I pay my Credit card bills in full each month?
Yes. If you cannot pay the bill in full, please pay at least pay more than the minimum. Don’t pay just the minimum. Read your bill carefully. It tells you what happens if you pay the minimum.
Where can I get some help with debt reduction planning?
Visithttp://cgi.money.cnn.com/tools/debtplanner/debtplanner.jspfor help with planning.
How do I reach my Credit Bureaus?
Experian 888-397-3742, Equifax800-685-1111, Trans Union800-916-8800
What reports should I order annually?
Credit Reports annuallyatwww.annualcreditreport.com or 1-877-322-8228, Employment Background Check/ Homeowners and Auto Insurance Claims atwww.choicetrust.com 1-866-312-8076, MIB-Consumer’s Medical Condition athttp://www.mib.com/html/request_your_record.html 1-866-692-6901
Unlawful Detainer Registry (Residential/tenant history) atwww.choicetrust.com or 1-877-448-5732, ChexSystems atwww.consumerdebit.com or 1-800-428-9623
How long does bad credit remain on my credit account?
Civil Judgment –7 years
Unpaid tax liens - Indefinite
Other derogatory- 7 years old
Paid tax liens—7 years from date paid
Chapter 7, 11- 10 years
Chapter 13, 10 years
Chapter 13 dismissal/discharges – 7 years
Bankruptcies voluntarily dismissed -7 years
How do I correct errors on my credit report?
Write + Send documentation—duplicates not originals
If bureau made mistake, it must
Correct it,
Notify all other credit bureaus,
Notify those who looked at credit report in past 6 months—REQUEST IT
Bureau has 30 days to reply and send corrected credit report
If I am a victim of Identity Theft, what should I do?
File a police report with the Financial Crimes Unit.
Contact the fraud departments and have a fraud alert placed on your credit file:
·Equifax 1-800-525-6285
·Experian 1-888-397-3742
·TransUnion 1-800-680-7289
Order Credit Reports:
·Equifax 1-800-685-1111
·Experian 1-888-397-3742
·TransUnion 1-800-916-8800
Open new accounts etc. Insist on password only access to your account.
Contact/Inform the following in Delaware:
·SSA 1-800-772-1213
·FTC 1-877-ID-THEFT
·IRS 1-877-777-4778
·DE DMV 1-302-434-3200
Can you tell me the different consumer bankruptcies available to me?
Chapter 7 -> liquidation--No debts to repay
Chapter 13 -> reorganization--Sort of debt consolidation, Keep assets
What is the Equal Credit Opportunity Act?
It is non-discriminatory law that prohibits discrimination in lending on the basis of
Race, gender, marital status, age (no loans to under 18 unless an emancipated adult), national origin, religion, source of income, prior exercise of consumer protection rights. The law also requires a 30 day letter to notify you whether you were approved or denied & if denied, the reason for denial.
What is the Fair Debt Collection Practices Act?
The law prohibits the Debt Collector from
· Harassing
· Using obscene/profane language
· Threaten violence or harm
· Deposit check prematurely
· Deceive you into accepting their call
· Take or threaten action they cannot take
The law requires that Debt Collector does not contact you:
· Before 8 am & after 9 pm
· If you write to them
· If you have an attorney and collector is notified of it
The law requires the Debt Collector to provide written notice to include amount & creditor within 5 days of 1st contact
· If debt not yours, write within 30 days
What is the Truth-in-Lending Act?
The law requires lenders to disclose:
· Amount financed
· Total Finance charges
· Annual Percentage Rate
· Total Payments after all payments made
What is the Fair Credit Billing Act?
· If there are unauthorized charges—your liability is limited to $50
· Gives you the right to write/document to Billing Inquiries.
· Send certified mail within 60 days after first billing error.
· Lender must acknowledge within 30 days of receipt.
· Must resolve within two billing cycles.
· During dispute continue making payment.
· Lender prohibited from beginning collections.
· If you are right lender must notify in writing, correct it
If you are wrong you must pay.
What is the Fair and Accurate Credit Reporting Act?
· Gives you the right to your annual free credit report.
· It also gives you the right to correct information reported in your credit report.
· Write to the Credit Bureau & Lender “Disputing ______”.
· Bureau must investigate within 30 days.
· Bureau must write to you about their investigation plus provide you a credit report if it has changed.
· The disputed debt cannot reappear unless you are notified in writing.
· Gives you the right to include a 100 word consumer statement in your credit report.