How to Dispute Credit Report Errors

The clock is ticking.  The time limit for challenging a credit reporting error begins to run from the date the error is reported.  The time limit DOES NOT run from the time you discover it.  So, check your credit now and check it often.  You can check it for free once a year by going to www.annualcreditreport.com.  If you find an error, consult the Federal Trade Commission for instructions on how to dispute credit report errors.  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm  If you dispute the error and the creditor or credit reporting agency refuses to correct the problem, call us. 
-Brandon L. Blankenship (205)912-8248
Blankenship Harrelson, LLP

Options in Foreclosure

If your home was foreclosed between January 1, 2009 and December 31, 2010, you can request a review of the foreclosure process to see if it was handled properly. Fourteen mortgage companies are required to participate in this process. If there were errors, misrepresentations or other irregularities with the process, you may be entitled to financial compensation or other remedies. This process only applies to the home that was your primary residence. Letters will be mailed out from the mortgage companies, but they will probably be sent to the house that you no longer live in. If you would like to have your foreclosure reviewed, you can call 1-888-952-9105 for the form you will need to fill out or visit the web site at www.independentforeclosurereview.com.

The fourteen mortgage servicers involved in this process are America's Servicing Co., Aurora Loan Services, Bank of America, Beneficial, Chase, Citibank, CitiFinancial, CitiMortgage, Countrywide, EMC, EverBank/EverHome Mortgage Company, GMAC Mortgage, HFC, HSBC, IndyMac Mortgage Services, MetLife Bank, National City Mortgage, PNC Mortgage, Sovereign Bank, SunTrust Mortgage, U.S. Bank, Wachovia Mortgage, Washington Mutual (WaMu), and Wells Fargo Bank, N.A.

Please let us know if we can help you with this process.  Brandon L. Blankenship (205)912-8248
-Blankenship Harrelson, LLP

Do You Have the Credit Report Woes?

We previously blogged about the importance of reviewing one’s credit report to help protect against credit errors and identify theft.   In addition to reviewing credit reports at regular intervals, consumers who find themselves the subject of debt collection may want to check their credit reports more frequently to ensure accuracy.   Under certain circumstances, debt collectors are permitted to report consumer debs to credit reporting agencies.   However, because a debt collector can be a separate entity from the original creditor, the same debt may be listed several times on a consumer’s credit report.   This problem can be compounded by the fact that it is not uncommon for one debt collector to sell a consumer’s debt to another debt collector; in fact, some debts may even be sold multiple times.   If a new debt collector reports the same debt each time it is sold, a single debt may be reported multiple times on a consumer’s credit report.   This can cause the report to appear misleading, giving the implication that numerous debts are owed to different companies when in reality, the same debt is being reported over and over.   Thus, while it is important for all consumers to periodically review their credit reports, those who are the subject of debt collection may want to review their reports more often to ensure reporting accuracy.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

A Debt Collector Put a Debt on my Credit Report That I Don't Owe!

Dispute it!   Consumers can and should protect their credit reports by disputing incorrect information listed by a debt collector.   This can include a debt collector listing a debt the consumer does not owe at all, or simply listing a debt that the consumer disputes in whole or in part. Consumers can make oral dispute debts to a debt collector, but it is best to make a written dispute to the collector.   When making a dispute, consumers should provide as much information as possible, including any documents which support the dispute.   It would also be a good idea for consumers to use certified mail or request delivery confirmation when sending the dispute and to keep a copy of the dispute for their records.   An attorney can help consumers determine what rights they have if the debt collector refuses to investigate the debt or refuses to report it as “disputed.”   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com

What Is Credit Reputation?

Your credit reputation is what others think about your habits surrounding borrowing and repayment. Whether you know it or not, agree to it or not or want or not, your credit reputation has been scored with a number called a credit score. Your credit score is determined and maintained by the three credit reporting agencies: Trans Union, Equifax and Experian. Each agency will assign you a different score. Because of the way credit scores are determined, however, the scores should be fairly close. You can think of your credit score just like the grades you received in school:

Credit Score     Grade   
Over 720           A Excellent Credit   
700 - 720          B Good Credit   
680 - 700          C+ Above Average Credit   
660 - 680          C Average Credit   
620 - 660          D Below Average Credit   
Below 620         F Poor Credit

Why should you care? Well, people with an “A” credit reputation pay lower interest rates, pay lower insurance premiums, have more credit opportunities and get hired more often. Also, people with an “A” credit reputation can finance a house with a low interest rate and little or no down payment. People with a “F” credit reputation cannot finance a house with a traditional lender.

Several things create and improve your credit reputation:

• Historically paying bills early
• Borrowing less than 25% of the credit available to you
• Having the same credit account for a long time
• Maintaining the right type of credit
• Having the right mix of new credit accounts

Several things that hurt your credit reputation:

• Late payments (the later the payment, the more harm)
• More than one account that has late payments
• Public filings such as bankruptcy, judgments and liens
• Borrowing more than 25% of the credit available to you

These factors impact credit reputation scoring generally. Credit reputation scoring is complex and it is difficult to show exactly how important any single factor is in determining your score. The level of importance for any one factor will be unique to you. What is important is the overall mixture of factors, which varies from person to person and for any one person over time. The two most important things to do to protect your credit score is to monitor it often and, when necessary, seek the help of a credit professional.  -Brandon L. Blankenship (205)912-8248
-Blankenship Harrelson, LLP
www.bhattorneysllp.com