Jay Fleischman, an expert at making credit card banks behave themselves, recently posted an article describing another win for the consumer.  In How Long Does A Creditor Have To Sue On A Debt? Jay describes how the foreign law provisions of the credit card agreement were enforced against Captital One Bank. 

It seems that the credit card giant sued its Florida cardholder more than three years after the debt matured in violation of Virginia law, the state law specified in the Cardmember Agreement.  It takes some smart lawyering and hard work to make a big bank eat their own contract.  Congratulations are due.

This brings up the depressing topic of credit card agreements in general.  With the national banks allowed to pick their state of origin based on the laws governing their operations, it is high time for the consumer to win a round.  Unfortunately, this is a rare occurrence.  How many consumers even read the credit card agreement?  Isn’t it time for some consumer protection legislation in this area? Read the rest »

Fix your credit.  Repair your credit score.  Delete judgments, bankruptcies, and past due accounts so you can qualify for new credit at favorable terms.

Sound familar?  Those are the stock phrases millions of consumer hear on late-night television from the scammers who are out to get your money.  They promise the moon and stars, then promptly disappear once you;ve paid hundreds - or even thousands - of dollars to them for their "fees."

The truth is that these companies can’t Read the rest »

MSN Money published an interesting article entitled 8 Signs You May Know An Identity Thief.  The article discusses how many people fear identity theft from a stranger when, in fact, studies show that most identity theft victims know the thief in some way.  The article provides an excellent graphic showing this.  In summary, of those identity theft victims who have learned the thief’s identity:

• 32% say it was a family member or relative
• 24% say it was a complete stranger outside the workplace
• 18% say it was a neighbor or in-home employee
• 13% say it was someone at a company with access to their personal information
• 8% say it was someone else, and
• 4% say it was someone at the workplace   (Source, Javelin Strategy & Resource, 2004/MSN Money) Read the rest »

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As if the current credit crisis wasn’t enough, Americans are turning toward what I like to call unconventional financing more and more these days.  Just 12 short years ago in 1996, Americans were only in 500 billion dollars worth of credit card debt.  Now, only 12 years later, we have doubled that number with an additional 500 billion dollars in debt. 

The most exciting part of this story for me is that no-one is concerned about this.  The federal government is not considering any legislation that would limit the amount of credit card debt that someone can get into.  They are doing nothing about the credit card industry’s practices. 

Why, because most of our elected officials receive campaign contributions and various other perks, some we know about and some we don’t. Read the rest »

The June 2006 AARP magazine touts an AARP sponsored law recently enacted in Arizona that prevents the theft of one’s identity for a fee.  That sounded a lot like extortion to me.

AARP reports that beginning in September, Arizonans will be able to bar credit-reporting agencies from releasing their personal financial information to a bank or retail store, for a fee of $5 per credit reporting agency.  That is supposed to prevent identity thieves from opening new accounts in the consumer’s name.

Why should that information be available in the first place and why does one have to pay to try to prevent misuse of the information?  What am I missing here?

MSN Money has a short credit quiz sponsored by Experian.  It tests your knowledge on general credit subjects such as

• Who are the three major credit reporting agencies?
• Can your employer pull your credit report without your permission?
• What information is used to calculate your credit score?
• What happens to your credit report when you marry? Read the rest »

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 A "Consumer Report" is a report that bears upon a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.

A consumer report can be transmitted by oral, written or other means of communication.

Information contained in a consumer’s file with a credit reporting agency is not a consumer report until it is communicated to a third party.

Because of the broad definition of a consumer report, virtually any information about a consumer released by a credit reporting agency to a third party qualifies as a consumer report.

Texas Attorney General, Greg Abbott, reached a settlement last month with Universal Underwriters Life Insurance Company who unlawfully withheld insurance premiums from more than 12,000 Texans who paid off their vehicle loans early. 

Under the terms of the settlement, Universal Underwriters agreed to refund insurance premiums worth $2.4 million to Texas policyholders whose loans terminated between 2002 and 2006.  The company will also pay $125,000 in attorneys’ fees to the state. Read the rest »

In Texas, a business can not penalize you for paying with a credit card. Businesses that add a surcharge to those who pay by credit card might be violating provisions of the Texas Finance Code.

However, businesses can discount the regular retail price of an item for consumers who pay cash. If you believe a business is charging extra for credit card purchases, please a file a consumer complaint with our office.

Credit card fees can be charged by government entities, such as for the payment of property taxes or other fees required by government agencies.

Only people with a legitimate business need, as specified by the Fair Credit Reporting Act, can look at you report without your permission.  For example, if you apply for credit, insurance, employment, or to rent an apartment, the company is allowed to obtain your report. 

A Consumer Reporting Agency (CRA) is not allowed to give information about you to your employer or a  prospective employer, without your consent, unless you are being investigated for suspected misconduct, compliance with federal, state or local laws, or preexisting written policies of your employer.