Credit Law Network

Users are entities that purchase consumer reports from credit reporting agencies.

For a user to be able to obtain a consumer report it must show that it is obtaining the report for a permissible purpose.

In addition to potential and current creditors using credit reports, many employers and insurance companies now use credit reports to determine whether or not to hire you or whether to insure you.  The rate you pay for insurance can also depend upon what is contained in your credit report.

With more and more users of credit reports it is important to confirm the accuracy of your credit report and to take action to correct inaccuracies.

An attorney with experience with consumer credit issues such as those with the Credit Law Network can assist you with credit reporting errors.

While a Debit Card looks like a credit card, it uses the funds already on deposit with your bank.  So the first requirement to get a debit card is a bank account that can be used with it.  When you use that card to make a purchase, you are not incurring any debt rather, the money is deducted directly from your bank deposits.  Like a credit card, the use of a debit card carries many responsiblilities.

You have to be very careful in using a debit card.  Remember, the money is coming right out of your account and carries no delay between the time of purchase and the time your pay for it.  Sounds like cash, doesn’t it?  Like cash, you are not building a credit rating on your credit report every time you use it. 

However, misuse of a debit card could reault in a report to Chex Systems for abuse of a checking account which could prevent you from opening a new account at another bank.  If you use a debit card as an institution like a hotel, you have to be careful as the hotel will place a hold on your account for the potential charges which could result in other debits or checks bouncing from your account for insufficient funds.  Finally, if you lose you card or someone steals the access numbers, you could face much larger liability from fraud much the same as if you had lost a signed blank check.  However, if you notify your bank within 48 hours of losing the card or discovering the fraudulent charges, your loss could be capped at only $50.00.

An ATM access is the same as a debit card except that you are reaching your bank funds through a machine rather than a plastic card.  More and more system require that you use your debit card to access the machine, but that may not be the only way to reach your money.  The same precautions apply to ATMs, but also be wary of the fees and charges that go along with their use.  Just as with any checking account it is best to find an institution that offers the right terms for you that won’t bleed your account dry with fees and charges.

Under the Fair Credit Reporting Act (FCRA) a "Furnisher" is a creditor or a third party that provides information about a consumer to a credit reporting agency (CRA).  The FCRA provides standards and guidelines to be followed by furnishers in an attempt to assure the accuracy of the information being provided to the CRA.

The FCRA also requires the furnisher to participate when a consumer disputes information contained in his credit report.  The dispute process, known as a reinvestigation, requires the furnisher to take an active role in responding to a consumer’s complaint.  A furnisher that fails to participate or that fails to conduct a proper investigation can be liable to the consumer.

Employers may use consumer reports when they hire new employees and when they evaluate employees for promotion, reassignment, and retention provided they comply with the Fair Credit Reporting Act (sections 604, 606, and 615).  A consumer report is any report that contains information about a person’s personal and credit characteristics, character, general reputation, and lifestyle.  The report, to be covered by the FCRA, must be prepared by a consumer reporting agency - a business that assembles such reports for other businesses. Read the rest

Many people just starting out have no credit history and may find it tough to get a loan or credit card, but establishing a credit history is not as difficult as it seems.  Usually local stores are more willing to extend credit to someone with no credit history - so apply for a credit card issued by a local store.  Another alternative is to apply for a secured credit card.  This requires you to open and maintain a bank account or other asset account at a financial institution security for your line of credit.  In other words, you put up the money first and then the credit company allows you to borrow 50 to 100 percent of your account balance. Read the rest

The Fair Credit Reporting Act (most often referred to as the FCRA) is a federal law designed to make sure that the information that is kept by Credit Reporting Agencies (CRA) about you is accurate and that it is only released to those who have a legitimate interest in needing this information.

Under the FCRA, a CRA such as Experian, Equifax and TransUnion must use reasonable procedures to make sure that your credit, personal, insurance and other information that they have gathered about you is accurate and relevant.  The CRA is also required to make sure that those who get this sensitive information about you have a legitimate reason to have the information.

Read the rest

Never lend it to anyone. 

Never sign a blank charge slip. Draw lines through blank spaces on charge slips above the total so that the amount can’t be changed.

Never put your account number on the outside of an envelope or on a postcard.

Always be cautious about disclosing your account number on the telephone unless you know the person you are dealing with representa reputable company.

Always carry only the cards you anticipate using to prevent the possible loss or theft of all your cards or identification.

Always report lost or stolen ATM and credit cards to the card issuers as soon as possible.  Follow up with a letter that includes your account number, when you noticed the card was missing, and when you first reported the loss.

Keep a list of all your credit cards, account numbers, and expiration dates in a safe place in case your wallet or purse is lost or stolen.

An article in today’s Washington Post, "Running on Empty," talks about the rising tide of national auto loan delinquencies.

According to the article, the percentage of car loans that are 30 days or more late for the 4th quarter in 2007, 3.1%, is the highest level in 17 years…and the trend line is accelerating. Why are things gettomg worse?

Read the rest

In his article "Student Loan Market Faces Scarce Times" Andy Miofsky discusses the anticipated reduction in the number of lenders that will continue to provide guaranteed student loans.

On the heels of this news comes a report in the Washington Post that Sallie Mae, the largest student loan provider in the country, will begin charging an application fee to borrowers.

The fee, which Sallie Mae will begin charging next month, will range from $35.00 for undergraduate students, to several hundred dollars for graduate students.  Until now, processing fees for student loan applications have been absorbed by the lender.  It is believed that other lenders will follow Sallie Mae’s lead and begin charging processing fees.

Sallie Mae also announced that it will no longer offer debt consolidation loans to former students, focusing its lending on current students.

Critics have suggested that these moves are an effort to force Congress to reinstate Federal subsidies to student loan lenders that were recently ended.

Consumers Beware!  Most credit repair companies require you to pay money upfront and/or on monthly basis to "help" you fix your credit report.   Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they promised.  If you have paid money to a credit repair organization who collected money from you upfront and/or a monthly basis, please contact your State Attorney General’s office the Federal Trade Commission and file a complaint.