If you are a victim of ID theft, it it imperative that you call the 3 credit bureaus immediately to place a fraud alert on your file:

Once you have called, you will need a real police report (not the online version as Experian will not accept this) Bring your credit reports with you and insist on a MISC ITEMS report if they give you a difficult time. BTW, if over 10,000.00 has been cahrged to your accounts you should also contact the FBI and the Attorney General in your state.

On the www.ftc.gov website you can download and print the ID Theft affidavits, which you will need to have notarized. Include a copy of your credit reports and 2 forms of ID, one with photo. Send to each bureau separately via certified return receipt mail(Attn: Fraud Dept).

Experian

701 Experian Parkway

Allen, TX 75013

Equifax

1550 Peachtree Street NW

Atlanta, GA  30309

Transunion

2 Baldwin Place

Chester, PA 19022

Make sure you keep a copy of everything in your files. They have 30 days to respond. Once you get your reports, review that all information is corrected. If not, resend with a new letter and circle the items still appearing on your reports and request a re-investigation immediately. On items not corrected, you may also send a copy of the police report and theft affidavit to each company directly. Be sure to reference the account number on your report.

This information is very important for consumers to know and understand regarding their credit challenges. If you are a first time buyer, make sure that you are truly qualified. You should be reviewing your FICO scores and credit reports at least once a year if not more. Most credit reports contain multiple inaccuracies that are probably bringing your score down to the tune of much higher interest payments on everything--not just that future home.

I cannot tell you how many clients I see that are shocked to find out what's on their reports. Merged files are becoming more and more common. You would think that when your credit is pulled, it's YOU that the report is based upon. The credit reporting bureaus use a system called Metro 2, which pulls similar information.

Check through your entire credit report for incorrect names, more than 1 ssn or date of birth. It could be a data entry error but may not be. Or it could beID theft (although you will usually get bills/phone calls about accounts you never opened).

I had a client with a common name last year here in Tampa. Upon reviewing her report, she had 11 defaulted mortgages. My client never owned a home. I was fortunate to find the other woman's information--who was currently in federal prison---and was able to get the bureaus to remove this mixed information from my clients file in 3 days.

Many of the original creditors and coll agencies that subscribe to the bureaus will tell you they can't (read:won't) correct or delete the information. Heads up: There is a little known form called the Universal Data Form. A company can do whatever it wants to with this form. (update, Delete, change information) .

Late payments can hot your score up to 100 points. If you are a good customer, always on time--just one late payment can move your tradeline from the positive to the derogatory. Call and ask nicely for the to "cure" or "re-age" that to a current payment. Many will do so.

If you are a mortgage broker or realtor with credit-challenged clients, please fell free to contact me if your clients need assistance. I am in Tampa but help clients all over the US. 

A potential client called me over the weekend. He is in the process of paying off old debts, some of which he doesn't even know are his or not. The mortgage broker told him to pay them off in order to refinance his house.

There is a problem with this: By paying off old debts you are admitting liability (whether they are yours or not) and  it will hit your reports and score like a ton of bricks, bringing the date forward to Current and lowering your score.

Whenever possible, you should request legal validation of the debt. If you KNOW it's not yours, you can fill out either a Mistaken Identity Affidavit (the credit bureaus may have merged your fie) or an ID Theft affidavit. Have the affidavits notarized and keep a copy for yourself. Send a copy to each credit bureau that's reporting the tradeline and one to the creditor and/or coll agency to get it removed. (additionally, if you are certain it's ID theft, get a police report from the police dept--under MISC Reports--bring a copy of your credit reports to the police station--remember, this is financially harming you).

If you think the debt is yours, you can still request legal validation. Also, check the Statute of Limitations for collections for your state  http://www.fair-debt-collection.com/statue-limitations.html to see if the debt can legally be collected. If it's past the SOL for collections for your state, it can still remain on your report 7 years. However, companies are much more willing to negotiate. Negotiate a smaller percentage based on how long the debt is past the SOL, AND negotiate for deletion from your reports.  This must be done in writing and received by you before you make payment. There are many unscrupulous companies out there so pay by bank check or cashiers check and not by personal check (they will have your bank account number then and may try to debit for the difference). This way you have a letter and a receipt. Ask for deletion within 10 days of receipt, although the credit bureaus have up to 30 days to delete from their systems.

Always do the above in writing via certified return receipt and never on the phone. 

Keep these records forever, in the event years later it pops back up on your report, you won't have to go through it all again! 

All of our clients sign up on a credit monitoring service if they're not on one already. The most user friendly one we've found is True Credit.

 What scares me is the amount of consumers that think these services (including freecreditreport.com) give them their actual FICO scores, when in actuality they are bogus (FACO/FAKO) scores. These scores can be 100 points higher or lower than your real FICO scores. That's why so many consumers go into shock when they apply for a mortgage and don't realize the scores aren't real.

 The purpose of monitoring is to:

1) Get alerts on your reports

2) Monitor your reports for changes

The reports themselves aren't 100 % accurate either, but they do give you a reasonable baseline. You can check daily if you sign up for the unlimited credit pulls, and since you are pulling your own credit you won't lower your score.

Usually, it's best to pull your REAL free report through the national clearing house for the 3 bureaus so you have the real reports first, but you will have to pay for the scores. Use True Credit to monitor during the dispute process, or if you are a fraud victim, then pay each of the 3 bureaus at the end of the process for your FICO (not Vantage) scores. 

Check out www.creditadvocateservices.com for more information, or to sign up for True Credit. 

HI everyone,

I am new to Active Rain. Over the past couple of weeks I have been navigating my way through the system to learn it. My name is Laurie Zoock and I am a Consumer Credit Advocate and Educator. I primarily work with credit-challenged clients through their Realtors and Lenders to help get their deals closed anywhere in the USA. I am based out of Tampa. If I can be of any assistance to you, please email me. Feel free to sign up on my blog for Credit Tips.

 Thanks,
Laurie

HI everyone,

I am new to Active Rain. Over the past couple of weeks I have been navigating my way through the system to learn it. My name is Laurie Zoock and I am a Consumer Credit Advocate and Educator. I primarily work with credit-challenged clients through their Realtors and Lenders to help get their deals closed anywhere in the USA. I am based out of Tampa. If I can be of any assistance to you, please email me. Feel free to sign up on my blog for Credit Tips.

 Thanks,
Laurie

While utilizing my services, clients start to "see" the big picture of these businesses that don't comply with federal laws. Especially when the information on their reports isn't theirs or is the result of a merged file. Usually the first set of letters doesn't do much, and they understand that. You would think that big businesses would follow compliance protocol with federal laws. But the FTC usually only responds when there are hundreds of complaints against a business in a short amount of time. Remember that you are not a "client" to these companies--they are selling YOUR information (right or wrong) to other companies for profit.

Always send at least 2 certified return receipt letters to each business. They must be specific.After the first letter, wait 30 days before sending the second letter. When you send out the second letters, make copies of them and send a complaint to your state's Attorney General's office. Most AG's have a division (usually Consumer Services or Financial Services) that will review your complaints and will assist you. Companies do NOT like to be contacted by the AG's office as they register complaints.

Most of the time this resolves issues and the items in question are deleted. See my website for more information www.creditadvocateservices.com.

If a debt collector is constantly calling you on the phone, stop them in their tracks by saying:
"I am invoking my rights under the FDCPA. Cease and desist calling me. Provide me with your fax or mailing address and I will send that request in writing. You may send mail only."

 If you continue to receive calls after faxing or mailing a certified return receipt letter, keep a log book. Include caller ID entries by date and time, even if they didn't leave a message. There are statutory violations under the FDCPA that could win you 1000.00 per violation in court. In that fax or letter, request legal validation of the alleged debt.

 Google the Fair Credit Reporting Act for a list of violations that debt collectors are often caught for. DO not give out your personal information to a debt collector. Protect yourself.

 A simple way to stop the influx of mail from the credit card companies is to OPT OUT by calling 1-888-567-8688. Most of the offers you receive that seem to good to be true are! The CC companies do a soft inquiry (meaning they're just checking your scores, not pulling your entire report so supposedly no points are taken off your scores) to see where you rank. Many CC companies offer consumers with bad credit teaser rates that they won't really qualify for (predatory lending). Once you fill out the application,  you have given them "permissible purpose" to pull a hard Inquiry which will affect your scores. While the Credit Bureaus claim Opting Out won't affect your score, I have seen that it does by reducing the number of inquiries. Your score may actually go up in 30-90 days. Beware of companies that tell you to fill out an online application and that they will have several companies compete for your business. I had this happen once--4 companies were supposed to compete--instead, they hit my credit 10 times affecting my scores.

 If your credit is truly sub-par, you are better off to start developing good credit by applying for a secured credit card at your bank. (By getting an unsecured credit card with low scores, you will usually have to pay an annual fee just to have the "privilege" of having a high interest rate credit card. Also, until you get your spending habits under control, you won't be tempted to spend more than you actually have!) Make sure it reports to all 3 bureaus so call before sending in an application. Don't use more than 25 to 30% of the available credit and make sure they report the available credit (some companies don't--so whatever amount you spend each month--it looks like you've used all your credit!). Make sure you pay prior to the due date. Some companies have odd cutoff times so if your payment was due today and their cut-off time was 1 pm and it's now 1:01 and they just opened your envelope, your payment is late, resulting in penalties, fines, and higher interest rates. It may also make you go over your credit limit, then the phone calls start from the creditors.

Many times consumers try to save money when disputing to the credit bureaus, coll agencies, and original creditors by making a phone call or sending a regular letter. Let me tell you why you should not do these things:

1) Because the system runs poorly, you must protect yourself as if you are representing yourself in court. Regular mail and online disputes will not protect your rights. Phone calls may be recorded and depending upon your state, may be used as evidence against you. The person on the other end of the phone knows this. You may be tricked by a disreputable company into admitting liability on something you may not owe, or you may not owe the entire amount, or it may not be reporting correctly and legally. Collection agencies may not harass or threaten you.Never pay a debt by charge or check over the phone UNLESS you have negotiated IN WRITING for a deletion on the tradeline, or a "Paid" on the account. Once you pay, the date will move to a Current status unless it is deleted. If you have not negotiated, expect that the item will show up on your reports with a current date and will be marked "PAID SETTLEMENT" which will actually lower your score. Many debt negotiators and settlement companies do not negoitate how an item will be updated on your credit report. You must ask and get a confirmation from them in writing as well.

2) Certified return receipt mail is the best way to handle disputes. Make sure you put the number on the body of the letter itself. Think as if you were going to appear before a Judge and have to present evidence (you don't want to be one of "those" people on Judge Judy who didn't have their papers in order, do you?!) If you get the fax number of the company, you can send a fax, as long as you keep a copy of the transmission page proving it was confirmed and sent.

3) Keep copies of all letters/paperwork in a file.

4) If you don't have a fax number, consider an efax service like J2 Connect. Simple and inexpensive.