Author Archives: Credit Report Law Group

How Those with Arabic Names Are More Likely to Have Errors in Credit Reports

While those with Arabic names may be used to having people make mistakes in addressing them (e.g., thinking that “bin” or “ben” is someone’s first or middle name), these errors can be more than a mild annoyance if they are on someone’s credit report. When that happens, it can have real consequences on their financial life by reducing their credit score. And that can lead to difficulty getting credit cards, loans, mortgages, or renting an apartment. Debt collectors may even harass them for debts that aren’t theirs. 

So let’s explain how those with Arabic names are more likely to have these issues, how to protect yourself from these problems, and what to do if errors have occurred. 

Arabic Naming Conventions Can Lead to Credit Report Errors 

As any Arab knows, compared to the English tradition of a personal name and a family name, Arabic names are more complex. And it’s not just that they are longer than English names, with more elements. From an aspirational ism to their nisbah, Arabic names tell a person’s history. But these various elements may be incorrectly captured in a U.S. form with space only for first and last names and the occasional middle initial.  

The result is you may get credit card offers in the mail addressed to “Al” as your first name, or maybe it’s “Dr.,” thinking “Md.” stands for a physician instead of Mohammed. Those solicitations come from a review of credit reports to identify eligible customers. So, when that misaddressed mail arrives, laugh, but then check your credit. It suggests there are errors in your credit report.  

Watching for Credit Report Errors

As many as one-third of Americans have mistakes in their credit reports. 

A common source of errors is a “mixed file,” when one person’s credit report includes someone else’s information.  

Mixed files often occur when two people have the same name. Therefore those with common names such as Mohammed (and its many phonetic variations) are more vulnerable to mixed files. An estimated 150 million men around the world are named Mohammed—and the credit confusion is only heightened since it is used as both a first and last name.  

Sometimes those with a mixed file can be strangers, but family members can have mixed files. In these cases, the people share more than their names. They may have the same addresses, so the information used to verify identities will be the same. So within-family mixed files can be challenging to correct. 

That’s why it’s important to monitor credit reports. Federal law entitles every consumer in the U.S. to have one free credit report every twelve months, and it’s a wise practice to calendar that regular review of your credit. And if any problems arise, such as an expected denial of credit, check your credit report immediately. 

If there are errors, correct them as soon as possible.  

However, fixing these errors can be easier said than done. That’s why if you discover any errors with your credit report, contact an attorney specializing in representing clients like you. The Credit Report Law Group can only help you correct your credit record and obtain compensation for any damages you sustained.  

Mexican-Americans Should Watch Their Credit Files for Erroneous Information

Mexican-Americans are proud of their outstanding heritage and vibrant culture. They are also proud of their lineage and often have two surnames that reflect their ancestry. Many use their father’s and mother’s family names as their surnames. For example, a man may go by Gilberto Lopez Garcia, or a woman may be called Maria Gonzalez Perez.

There are approximately 221,551 surnames in use in Mexico today. In descending order, the most popular are Hernandez, Garcia, Martinez, Lopez, Gonzalez, Perez, Rodriguez, Sanchez, Ramirez, and Cruz. In the United States, Garcia is the sixth most prevalent of all surnames, regardless of nationality, with Rodriguez and Martinez being ninth and tenth.

Given the commonality of these names and the fact that many Mexican-Americans have two surnames, there is bound to be some confusion when it comes to official records. A credit report is an official record where a naming error can be problematic. When someone’s surname is popular, that person can be the subject of a mixed credit file.

What is a Mixed Credit File, and What Can Happen?

A mixed credit file occurs when a credit reporting agency intermingles the financial information of two different people. Confusion may occur because the names may be alike or similar, and personal details, such as age, may be the same. A file may also become mixed if someone made a typo in a loan application or provided a Social Security number with an incorrect digit.

You should review your credit file to see whether it contains information that does not apply to you. If your file contains errors, you may be denied credit even though you qualify. Your credit score may also end up being lower than you deserve. Serious financial problems can arise if you are a victim of a mixed credit file.

You Need an Experienced Attorney

Credit reporting agencies do not act quickly to make the necessary changes to mixed credit files. And, when you contact them, you may find yourself in a maze of bureaucracy. Attorney Adam Singer at the Credit Report Law Group knows what to do when there is a credit file mix-up, and he has experience going to bat for consumers and obtaining relief. Contact the Credit Report Law Group at 212-842-2428 or fill out this form.

People of Polish Ancestry Should Check Their Credit Files

William Shakespeare famously wrote, “What’s in a name? That which we call a rose by any other name would smell as sweet.” But, for many of us, names are important since they give us our identity. Especially our last names. Surnames are a source of pride since they link us to our families and ethnic heritage. Polish names are no exception. There are over 400,000 distinct surnames in Poland, with the most popular being Nowak. In terms of commonality, this name is followed by Kowalski, Lewandowski, Kowalczyk, Kaminski, Zielinski, Szymanski, Koztowski, Jankowski, and Wojciechowski.

These Polish surnames are popular in the United States, too. Unfortunately, names of Polish descent are often mispronounced and frequently misspelled in this country. A misspelling is not only annoying, but it can have grave consequences when it comes to someone’s credit history. A misspelled name can lead to a mixed credit file. In addition, when someone’s surname is popular, a mixed credit file can occur.

What is a Mixed Credit File, and What Causes the Confusion?

A mixed credit file occurs when a credit reporting agency mistakenly commingles two people’s financial information. The problem can develop when two individuals have the same or similar name, or when there is a misspelling. A typo in a financial record or a Social Security number with an incorrect digit can also lead to a credit file mix-up between two people.

You should scan your credit file to see whether it lists any data that does not apply to you. If the file shows that your record has been mixed with someone else’s, you may be ineligible for credit. You may also receive a credit score that is lower than it should be. A mixed credit file can be a big problem.

You Need the Help of An Experienced Attorney

If you believe you have a mixed credit file, you can contact the credit reporting agencies, but they may not fix the problem fast enough. These agencies are famous for taking their time while consumers bear the brunt of their inaction. So don’t go it alone. Attorney Adam Singer at the Credit Report Law Group has experience challenging mixed credit files. He and his team aren’t afraid to take on a credit reporting agency to get you the remedy you deserve. Contact the Credit Report Law Group at 212-842-2428 or fill out this form.

Popular English Surnames Can Lead to Credit Report Problems

What’s the most common last name in the United States? If you guessed Smith, you are correct. Nearly three million people in the country have that surname. The name of Smith originated in England, where over 600,000 people bear that moniker today. Other common English last names include Jones, Taylor, Brown, Williams, Wilson, Johnson, Davies, Patel, and Robinson. And, given the fact that many U.S. citizens have some British ancestry, English surnames are very common in this country.

With so many people bearing English surnames, it can sometimes be hard to tell people apart on paper — meaning that confusion can arise when it comes to official documents and records. Financial records often contain name-related mistakes. A credit report is one type of financial record where a mistake in a name can lead to problems. When someone’s last name is popular, that person can be the subject of a mixed credit file.

What are Mixed Credit Files?

A mixed credit file occurs when a credit reporting agency confuses two people’s financial information. The problem can arise when two individuals share the exact same or very similar name, or when a name is misspelled. A credit file mix-up may also result from a typo in a financial document or a Social Security number with an incorrect digit.

You should check your credit file to see whether it contains information that does not apply to you. If you have been confused with someone else and have a mixed file, the erroneous data may result in a denial of credit and a low credit score. A mixed credit file can have serious repercussions.

An Experienced Attorney Can Help

Credit reporting agencies are not known for taking quick action to fix mixed credit files. You may contact them about the problem and never receive any satisfaction. Attorney Adam Singer at the Credit Report Law Group knows how to handle credit file mix-ups and has experience going up against credit reporting agencies. He can help you obtain peace of mind and relief. Contact the Credit Report Law Group at 212-842-2428 or fill out this form.

Common French Surnames Can Cause Credit History Problems

The nation of France is known for its contributions to art and culture, from the architectural marvels of the Eiffel Tower and the Palace of Versailles to the fashion runways of Paris to the masterpieces in the Louvre Museum. And don’t forget the food and wine! The people of France have a lot to be proud of, and rightly so.

Those of French descent in the United States are also proud of their heritage, which is reflected in their surnames. There are over one million unique French surnames. The ten most common last names are Martin, Bernard, Robert, Richard, Durand, Dubois, Moreau, Simon, Laurent, and Michel. There are hundreds of thousands of people who share these names.

Given the number of people with these common last names, there are bound to be situations where one person is mistaken for another. One of these situations involves a mixed credit file, which can have drastic financial implications.

Mixed Credit Files and Common Financial Problems

When a credit reporting agency combines someone else’s financial data with your credit history, the result is a mixed credit file. These mix-ups can occur when two people have the same or similar names. Typos can also lead to mixed credit files. If a Social Security number has one wrong digit, or a name is misspelled, incorrect financial information may end up in your file.

People with mixed credit files can have serious financial problems. You may be ineligible for credit or be given a low credit score if someone else’s data makes its way into your file. You should review your credit file to see if it contains any information that does not apply to you.

An Experienced Attorney Can Pursue Relief for You

You must act if you are concerned that someone else’s financial details are included in your credit file. Although you can contact the credit reporting agencies about a mixed credit file, don’t expect immediate results. These companies do not act fast when it comes to repairing credit files. That is why you need an experienced advocate in your corner. Attorney Adam Singer at the Credit Report Law Group is that advocate. He and his team are well-versed in how credit reporting agencies operate, and they are willing to stand up for you and your rights. Contact the Credit Report Law Group at 212-842-2428 or fill out this form.

Credit Bureaus Removing Some Medical Debt from Credit Reports

In May 2022, the three national credit bureaus, Experian, Equifax, and TransUnion, removed unpaid medical debts of less than $500 from American consumers’ reports. According to the government’s Consumer Financial Protection Bureau (CFPB), this move will impact approximately 22.8 million consumers. While more needs to be done, this is a major step in the right direction.

The Impact of Removing These Medical Debts

For those with medical debt of less than $500 on their credit reports, the CFPB estimates that their credit scores should improve by an average of 21 points. A 20-point increase can reduce upfront mortgage fees by 0.25% of the loan’s balance; for a $250,000 mortgage, that’s a $625 reduction due at the signing. Higher credit ratings can help people obtain credit cards and mortgages and receive lower interest rates. A better credit score can even help someone rent an apartment or get a new job.

What’s Left to Be Done

For half of all consumers, eliminating these small debts will eliminate all medical debts from their credit reports. However, it’s important to recognize that not all medical debt will be eliminated. There is increasing pressure from Congress to remove all medical debt from credit reports. For now, larger amounts (more than $500) will be on a credit report if they’ve been unpaid for after a year.

What You Should Do If You Have Had Medical Debt

In theory, the credit bureaus should have already removed the small unpaid medical debts from credit reports. They should also have removed information relating to paid medical debts, regardless of the amount.

But one-in-five Americans have at least one error on a credit report. Therefore, everyone with any history of medical debt should review all three credit reports (i.e., obtain a report from each of the bureaus) to see if their records have been updated. At the same time, they should review it for any other errors, especially any suggestion that they may be the victim of identity theft.

If you discover errors on your credit report, it is worth it to demand the credit bureaus fix the report.

The Credit Report Law Group Can Help

To do that, consider contacting an attorney specializing in helping consumers fix their credit reports. Better than the “credit repair companies,” an attorney who specializes in credit work can help repair your record and work to end debt collection harassment. And they’ll help you receive compensation for the damage you’ve suffered due to reporting mistakes. Call us today.

New Report Reviews the Biggest Data Breaches of 2022 (and so far, for 2023)

It’s astonishing how frequently revelations of a data breach have hit the news. But these events are so frequent they may get less media coverage than they warrant. That can hurt consumers—because if you’re not aware of breaches, you won’t know that your data has been compromised and take steps to protect yourself from identity theft. Therefore, it’s worth checking out this report on the biggest breaches revealed in 2022—and some of the biggest from 2023 so far.

US Department of Education

In March 2022, a hack meant 820,000 students in New York had their information stolen. The data theft included demographics, academic information, and economic profiles.

Apple and Meta

Though it wasn’t revealed until 2022, in 2021, Apple and Meta surrendered some customers’ data to law enforcement officials. But it turned out the data recipients weren’t truly law enforcement but hackers who had accessed police systems.

Cash App

In April 2022, the cash delivery app reported to the Securities and Exchange Commission that it had been breached in 2021, with 8.2 million customers’ data impacted.

SuperVPN, GeckoVPN, and ChatVPN

Theoretically, VPNs offer users a more secure method of using the internet. But that wasn’t the case for the 21 million customers of SuperVPN, GeckoVPN, and ChatVPN; a breach of those companies resulted in their customers’ names, billing details, emails, and passwords being sold on the dark web.

Shields Health Group

A March 2022 breach of Shields Health Group, a Massachusetts medical insurance provider, exposed 2,000,000 people’s data—Social Security numbers, home addresses, medical information, etc. A class action lawsuit has now been filed.

Uber

While the company didn’t reveal it until 2022, Uber has hacked in 2016. The hackers obtained the data of an estimated 57 million of their rideshare customers. But instead of revealing the hack, the company’s data officer paid the hackers $100,000, hoping to keep it quiet. It didn’t work. And federal prosecutors have subsequently convicted the official for obstruction of justice and other charges.

Neopets

After the user information for 69 million users of the Neopet game was sold, it wasn’t all fun and games. The compromised data included names, addresses, and birth dates.

If you have been a victim of a data breach, contact an attorney who specializes in helping consumers fix their credit reports, debt defense, and debt collection harassment. Attorneys can help you repair your record. And they’ll help you receive compensation for the damage you’ve suffered due to reporting mistakes. Call today.

A Record Year of Complaints for the Three National Credit Bureaus

Credit Bureaus are the worst. That isn’t just hyperbole. That’s the finding from a new U.S. PIRG Education Fund analysis. Confirming what you already knew, PIRG reviewed complaints made to U.S. financial firms—regarding everything from student loans to credit cards. And PIRG concluded that the “Big 3” credit bureaus received more complaints than any other financial firm in 2022.

According to PIRG’s report, the Consumer Financial Protection Bureau received 800,394 complaints in 2022, a record number that nearly doubled from the previously record-breaking 496,000 complaints filed in 2021. But when it comes to complaints regarding credit reporting, those went up even more—96% in just one year.

Further, PIRG concluded that “complaints against the … Big 3 credit bureaus (TransUnion )#1)), Equifax (#2) and Experian (#3)) ranged above all over complained-about companies in 2022, not only in the credit reporting products category but all categories of complaints.”

The most frequent complaints in 2022 were:

The fact that so many were dealing with incorrect information on a credit report is a reminder that credit errors are common. But the fact 150,000 complained about how poorly their issues have been dealt with validates what we knew: Credit Bureaus ignore most complaints.

Indeed, while 90% of the complaints to the Big 3 were closed with some explanation—which is taken as a sign that a complaint was individually reviewed and investigated—only 40% percent of complaints actually resulted in any changes to someone’s consumer credit report. The vast majority were not helped even though errors on a credit report can change someone’s life, from impacting interest rates for credit cards and loans to getting a job.

That’s why getting real counsel working on your behalf is essential. “Credit repair” companies just don’t get the job done for their clients.

Instead, contact an attorney specializing in helping consumers fix their credit reports and related issues—such as debt collection harassment. Attorneys can help you repair your record. And they’ll help you receive compensation for the damage you’ve suffered due to reporting mistakes. Call today.

CFPB Orders Portfolio Recovery to Pay More than $24 Million (Part 2)

In March 2023, the Consumer Financial Protection Bureau announced an order against Portfolio Recovery Associates (PRA), one of the nation’s largest debt collection agencies. In our previous post, we addressed how PRA had violated a previous order and provisions of the Fair Credit Reporting Act. In this post, we’ll explore how this order affects impacted consumers.

Financial Compensation

PRA must pay at least $12.8 million to consumers harmed by the company’s illegal practices. Additionally, PRA must pay another $12 million in penalties, which will be deposited into the Bureau’s victims’ relief fund.

The $12.8 million is designated for consumers who, between March 7, 2016, and September 9, 2020,

PRA must submit a plan for compensating impacted consumers no later than 60 days after the order’s effective date.

Consumers harmed by the firm’s illegal actions but won’t otherwise receive adequate recovery may apply for compensation through the Bureau’s fund.

PRA Must Improve Operations

In addition to the financial compensation, PRA must also take steps to prevent itself from committing future violations.

PRA must end its practice of pursuing debts without sufficient evidence that the debt exists; instead, PRA must obtain the necessary contract or other documentary evidence to establish the consumer’s indebtedness.

PRA must also improve its process for handling complaints, particularly ensuring that those who have debts due to identity theft or fraud are not harassed for these fraudulent debts.

PRA must promptly respond to consumers’ disputes about wrong information and end the practice of providing errant information to credit bureaus.

Moreover, PRA must maintain specific business records for the Bureau, and the court retains jurisdiction over PRA, so the Bureau can more quickly address future violations.

If you’ve been a target of Portfolio Recovery or other debt collectors, you don’t have to fight this alone. Instead, contact an attorney specializing in helping consumers fix their credit reports, debt defense, and debt collection harassment. Attorneys can help you repair your record. And they’ll help you receive compensation for the damage you’ve suffered due to reporting mistakes. Call today.