credit resources

Equifax P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111. Experian (formerly TRW) P.O. Box 2104, Allen, TX 75013; (888) EXPERIAN (397-3742). Trans Union P.O. Box 1000, Chester, PA 19022; (800)916-8800.

YOUR RIGHTS UNDER THE REVISED FEDERAL FAIR CREDIT REPORTING ACT The federal Fair Credit Reporting Act (FCRA) is designed to promote accuracy, fairness, and privacy of information in the files of every credit bureau (or Consumer Reporting Agency--CRA). The law was significantly amended by the 1996 Congress. The new changes take effect 30 Sept 97. Most credit bureaus gather and sell information about you -- such as if you pay your bills on time or have filed bankruptcy -- to creditors, employers, landlords, and other businesses. You may not know that check verification companies and tenant screening firms, as well as the Medical Information Bureau, are all credit bureaus. You can find the complete text of the FCRA, 15 U.S.C. 1681-1681u, and helpful fact sheets, at the Federal Trade Commission's web site (http://www.ftc.gov). The FCRA gives you specific rights, as outlined below. You may have additional rights under state law, especially to obtain free credit reports. Contact your attorney general for more details. You must be told if information in your file has been used against you. Anyone who uses information from a CRA to take action against you -- such as denying an application for credit, insurance, or employment -- must tell you, and give you the name, address, and phone number of the CRA that provided the consumer report, plus disclose your right to a free report after denial. You can find out what is in your file. At your request, a CRA must give you the information in your file, and a list of everyone who has requested it recently. There is no charge for the report if a person has taken action against you because of information supplied by the CRA, if you request the report within 60 days of receiving notice of the action. You also are entitled to one free report every twelve months upon request if you certify that (1) you are unemployed and plan to seek employment within 60 days, (2) you are on welfare, or (3) your report is inaccurate due to fraud. Otherwise, a CRA may charge you up to eight dollars, unless you live in a free or low cost report state. If you live in Vermont, Massachusetts, Georgia, Maryland, Colorado or also New Jersey (as of 1998), you can obtain a free credit report annually on request. In Maine, credit reports are $3 and in Connecticut, the cost for the first report requested in a 12-month period is $5.00 and $7.50 for each subsequent report. Of course, if denied credit, you can request additional free reports under federal law in these states. You can dispute inaccurate information with the CRA. If you tell a CRA that your file contains inaccurate information, the CRA must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit, unless your dispute is frivolous. The source must review your evidence and report its findings to the CRA. (The source also must advise national CRAs -- to which it has provided the data -- of any error.) The CRA must give you a written report of the investigation, and a copy of your report if the investigation results in any change. If the CRA's investigation does not resolve the dispute, you may add a brief statement to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received your report be notified of the change. CONTACT THE CREDIT BUREAUS TO COMPLAIN OR REQUEST A REPORT: Obtain a copy of your credit report on a regular basis to monitor for changed addresses and fraudulent account information. To find out how to order by mail, call Experian (800-682-7654); Trans Union (800-916-8800) and Equifax (800-685-1111). Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files, usually within 30 days after you dispute it. However, the CRA is not required to remove accurate data from your file unless it is outdated (as described below) or cannot be verified. If your dispute results in any change to your report, the CRA cannot reinsert into your file a disputed item unless the information source verifies its accuracy and completeness. In addition, the CRA must give you a written notice telling you it has reinserted the item. The notice must include the name, address and phone number of the information source. You can dispute inaccurate items with the source of the information. If you tell anyone -- such as a creditor who reports to a CRA -- that you dispute an item, they may not then report the information to a CRA without including a notice of your dispute. In addition, once you've notified the source of the error in writing, it may not continue to report the information if it is, in fact, an error. Outdated information may not be reported. In most cases, a CRA may not report negative information that is more than seven years old; ten years for bankruptcies. Access to your file is limited. A CRA may provide information about you only to people with a need recognized by the FCRA -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. Only Vermont law requires your consent to access your report. Your consent is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employer, or prospective employer, without your written consent. A CRA may not report medical information about you to creditors, insurers, or employers without your permission. An employer considering adverse action must show you the report. OPT-OUT! Choose to exclude your name from bureau lists for unsolicited credit and insurance offers. Creditors and insurers are allowed by law to use credit reports to generate misleading junk marketing mailings. These "You've been pre-approved" letters have been implicated in theft of identity scams and also often make promises that the offerors don't have to keep. However, the law also says such offers must include a toll-free phone number for you to call if you want your name and address removed from future lists. If you call, you must be kept off the lists for two years. If you request, complete, and return the mail-back form provided for this purpose, you must be taken off the lists indefinitely. Follow the instructions-- we advise opting-out permanently. The Big 3 Credit Bureaus now use the same telephone number-- (1-888-567-8688) or 1-888-5-OPTOUT. If you call one, you are opting-out with all 3. NONE OF YOUR BUSINESS! The new law also gives big banks the right to share your credit report and other information with "affiliates." Your mutual fund may be owned by a bank that will make a credit card offer to you, for example. Those banks that desire to take advantage of "affiliate-sharing" must send you a one-time offer to opt-out. The law does not require that this notice be very clear. You may have received it and tossed it, or never noticed it. They're not required to have toll-free numbers. We encourage you to opt-out. Shop around when you need financial products instead of letting your own bank send you mediocre offers. You'll need to send your bank a letter stating that you want to exercise your FCRA right to opt-out of information sharing among affiliates. Here is a sample letter. Use it to to tell the bank "None of your business!" You may seek damages from violators. If a CRA, a user or (in some cases) a provider of CRA data, violates the FCRA, you may sue them in state or federal court. Credit Doctors: Credit repair doctors are strictly regulated under the new law. Their promises that they can "change your social security number" to hide your negative credit background are illegal. Don't give credit doctors your money, use it to pay your bills and re-build your credit. Complain about credit doctors. WHERE TO COMPLAIN: The FCRA gives several different federal agencies authority to enforce the FCRA. If your complaint is about a credit bureau, department store, credit repair doctor, or other non-insured financial institution, complain to the Consumer Response Center, Federal Trade Commission, Washington, DC 20580. Telephone: 202-326-3761. Complaints about financial institutions (banks and credit unions) are handled by one of several agencies. If you're not sure which is your bank's primary regulator, call your bank and ask. (The FTC will forward mis-mailed complaints.) Send a copy of all complaints to your state Attorney General, who also has jurisdiction under both state and federal laws.

bankruptcy n. a federal system of statutes and courts which permits persons and businesses which are insolvent (debtors) or (in some cases) face potential insolvency, to place his/her/its financial affairs under the control of the bankruptcy court. The procedure is that when the debtor's debts exceed his/her/its assets or ability to pay, the debtor can file a petition with the bankruptcy court for voluntary bankruptcy or the debtor's unpaid creditors can file an "involuntary" petition to force the debtor into bankruptcy, although voluntary bankruptcy is far more common. The most common petition is under Chapter 7, in which a trustee is appointed by the court, the current assets are counted up by the trustee (with many of them exempt from bankruptcy), who pays debts to the extent possible with priority for taxes, then secured debts (mortgages or some judgments), and finally unsecured debts. Then the court adjudicates (officially declares) the debtor a bankrupt and discharges the unpayable debts, to the loss of the creditors. Exempt from sale to pay debts are a portion of the value of a home (equal to a homestead), secured notes that can be kept current, an automobile, tools of the trade, furniture, and some other items. The concept is to give someone a fresh start, but it has often led to careless, profligate business operations and casual running up bills with those giving credit being badly hurt by bankruptcies. Not dischargeable in bankruptcy are alimony and child support, taxes, and fraudulent transactions. Filing a bankruptcy petition automatically suspends all existing legal actions (even on the eve of trial or judgment, or on the day of foreclosure on real property), and is often used to forestall foreclosure or imposition of judgment. After 45 or more days a creditor with a debt secured by real or personal property can petition the court to have the "automatic stay" of legal rights removed and a foreclosure to proceed. Upon adjudication (officially declared) as a bankrupt a party cannot file for bankruptcy again for seven years. Chapter 11 bankruptcy allows a business to reorganize and refinance to be able to prevent final insolvency. Often there is no trustee, but a "debtor in possession," and considerable time to present a plan of reorganization. Sometimes this works, but often it is just a bottomless pit of more debt and delay. The final plan often requires creditors to take only a small percentage of the debts due (what is owed them) or to take payment over a long period of time. Chapter 13 is similar to Chapter 11, but is for individuals to work out payment schedules, which is more likely to be worthwhile. Bankruptcy law has become a specialty due to complex regulation as well as administration. Initial fees must be paid up front by the petitioner or the creditors, but much of the assets may be eaten up by the court-approved fees of the trustees and attorneys (although often the attorneys find no assets available for payment). There are some limited state bankruptcy laws to aid debtors, but they are seldom employed, except to create creditors' committees, which can be developed voluntarily. See also: bankruptcy court bankruptcy proceedings trustee in bankruptcy Place this dictionary on your site dictionary.law.com

bankruptcy

n. a federal system of statutes and courts which permits persons and businesses which are insolvent (debtors) or (in some cases) face potential insolvency, to place his/her/its financial affairs under the control of the bankruptcy court. The procedure is that when the debtor's debts exceed his/her/its assets or ability to pay, the debtor can file a petition with the bankruptcy court for voluntary bankruptcy or the debtor's unpaid creditors can file an "involuntary" petition to force the debtor into bankruptcy, although voluntary bankruptcy is far more common. The most common petition is under Chapter 7, in which a trustee is appointed by the court, the current assets are counted up by the trustee (with many of them exempt from bankruptcy), who pays debts to the extent possible with priority for taxes, then secured debts (mortgages or some judgments), and finally unsecured debts. Then the court adjudicates (officially declares) the debtor a bankrupt and discharges the unpayable debts, to the loss of the creditors. Exempt from sale to pay debts are a portion of the value of a home (equal to a homestead), secured notes that can be kept current, an automobile, tools of the trade, furniture, and some other items. The concept is to give someone a fresh start, but it has often led to careless, profligate business operations and casual running up bills with those giving credit being badly hurt by bankruptcies. Not dischargeable in bankruptcy are alimony and child support, taxes, and fraudulent transactions. Filing a bankruptcy petition automatically suspends all existing legal actions (even on the eve of trial or judgment, or on the day of foreclosure on real property), and is often used to forestall foreclosure or imposition of judgment. After 45 or more days a creditor with a debt secured by real or personal property can petition the court to have the "automatic stay" of legal rights removed and a foreclosure to proceed. Upon adjudication (officially declared) as a bankrupt a party cannot file for bankruptcy again for seven years. Chapter 11 bankruptcy allows a business to reorganize and refinance to be able to prevent final insolvency. Often there is no trustee, but a "debtor in possession," and considerable time to present a plan of reorganization. Sometimes this works, but often it is just a bottomless pit of more debt and delay. The final plan often requires creditors to take only a small percentage of the debts due (what is owed them) or to take payment over a long period of time. Chapter 13 is similar to Chapter 11, but is for individuals to work out payment schedules, which is more likely to be worthwhile. Bankruptcy law has become a specialty due to complex regulation as well as administration. Initial fees must be paid up front by the petitioner or the creditors, but much of the assets may be eaten up by the court-approved fees of the trustees and attorneys (although often the attorneys find no assets available for payment). There are some limited state bankruptcy laws to aid debtors, but they are seldom employed, except to create creditors' committees, which can be developed voluntarily.

http://www.ci.nyc.ny.us/html/dca/html/credit.html

AVOID THESE AGENCIES PER www.budhibbs.com

Wenger v. Trans Union Corp., No. 95-6445 (C.D.Cal. Nov. 14, 1995), REGARDING credit reporting AGENCIES willful non-compliance OF VALID CORRECTIONS

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Equifax: Consumer Credit Frequently Asked Questions
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About.com: Credit/Debt Management
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American Express Glossary of Credit Terms
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Bankruptcy Reform Act of 1994
Bud Hibbs, "America's Consumer Credit Expert"
California Public Interest Research Group
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Consumer Credit Counseling Service Credit Guide: The Road to Good Credit
Credit Amnesty, a Public Interest Group petitioning for Credit Amnesty laws
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Wenger v. Trans Union Corp., No. 95-6445 (C.D.Cal. Nov. 14, 1995) (unpublished), News story