Category Archives: Credit Reports

Credit Reports, Data Breaches

How a Data Breach Can Affect Your Credit Report

Posted on by Credit Report Law Group
data breach

Data breaches are no longer rare news stories — they’ve become part of everyday life. When a company you trusted with your personal information suffers a breach, your data might be exposed to people who have no business seeing it. And once that information is out, the consequences can follow you for years.

But what happens when a data breach directly affects your credit report? What does that really mean — and what should you do about it?

What Can Happen After a Data Breach

If your Social Security number, address, or financial account details are compromised, identity thieves can use that information to open credit accounts in your name. You may not even know it’s happening — until you check your credit report and find accounts you never opened, late payments you never made, or collections you’ve never heard of.

A data breach isn’t just an annoyance. They can damage your credit score, affect your ability to get loans or housing, and even cause you stress at work if background checks are involved.

Spotting the Signs of Trouble

Your credit report won’t always shout that something’s wrong. In many cases, the red flags are subtle:

  • Accounts listed you don’t recognize
  • Credit inquiries you didn’t authorize
  • Missed or late payments that don’t match your history
  • Balances that seem unusually high

Even one incorrect item can cause lenders to treat you differently. It’s important to regularly monitor your report through the major credit bureaus: Equifax, TransUnion, and Experian.

What You Can Do Right Now

If you believe your credit report was affected by a data breach, don’t wait for it to fix itself. Take action:

  • Request a free credit report from each of the three major credit bureaus (you’re entitled to one per year, per bureau).
  • Look over the details carefully and make a list of anything suspicious.
  • File a dispute with the credit bureau about incorrect information.
  • Report identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov.
  • Consider placing a fraud alert or a credit freeze on your file to stop new accounts from being opened in your name.

When to Get Legal Help

Sometimes, even after you report the fraud and file disputes, the inaccurate information doesn’t go away. Credit bureaus or companies might ignore your requests or take too long to respond. That’s when legal support can make a difference.

An experienced attorney can help enforce your rights under the Fair Credit Reporting Act (FCRA). If a bureau or business fails to correct errors, you may be entitled to damages — and your attorney can help make that case.

You Don’t Have to Handle This Alone

Being the victim of a data breach can feel frustrating and unfair. But you have options. If your credit report has been harmed because your data was exposed, taking action is not just smart — it’s necessary. With the right legal guidance from Credit Report Law Group, you can fix what’s wrong and move forward with confidence.

Credit Reports, Mixed File Credit

The Devastating Impact of Mixed File Credit Reports—and How to Fight Back

Posted on by Credit Report Law Group
Mixed file credit reports

Credit reports call the shots on your financial life. Mortgage approvals? Job offers? They’re all in the game. But what happens when a glitch—like a mixed file—throws a wrench in the works? At the Credit Report Law Group, we’ve seen these inaccuracies flip lives upside down. Getting a grip on mixed file credit reports isn’t just about patching a hole. It’s about taking back the reins on your future.

 

What’s a Mixed File Credit Report, Anyway?

Wait—let’s back up a bit. A mixed file credit report is when a credit bureau—like Equifax, Experian, or TransUnion—jumbles your data with someone else’s. Picture a filing cabinet where the folders got swapped, except the stakes are sky-high. This mess often kicks off when people share similar names, addresses, or even Social Security numbers. Twins, siblings, or parents and kids—like John Smith Sr. versus John Smith Jr.—get hit hardest.

The fallout? Brutal. You pull your report and—bam—there’s delinquent accounts, bankruptcies, or loans you never touched. Your credit score tanks. Interest rates spike. Or worse, you’re flat-out denied credit, housing, or a job. A Federal Trade Commission study found that about 5% of credit reports carry errors bad enough to jack up borrowing costs. Dig deeper, and the Consumer Financial Protection Bureau says one in four folks spots mistakes that could drag down their scores. That’s a big deal.

The Real Damage Mixed Files Can Do

Mixed file errors don’t mess around—they can derail your life. Imagine a small business owner chasing a loan to grow their shop. A mixed file flashes fake delinquencies, and boom, the loan’s toast. Their growth stalls. Or picture a job seeker who loses a gig because a background check flags a report full of junk they didn’t cause. I’ve talked to clients who’ve spent years—years!—untangling these knots, battling stress and money woes the whole time. One guy I worked with even had to delay buying a home for his family because of a mixed file that wasn’t his fault.

Adam Singer, the guy who started the Credit Report Law Group, nails it: “Mixed file credit reports aren’t clerical hiccups—they can shatter lives. I’ve seen people lose homes, jobs, and stability over mistakes they didn’t make. Our job is to hold credit bureaus and creditors accountable, making sure folks get justice and the cash they’re owed.”

Why Do Mixed Files Happen—and Who’s to Blame?

So, what’s the deal? Credit bureaus lean on algorithms to match data to people, but those systems? Far from perfect. Here’s the shortlist of culprits:

  • Similar Info Mix-Ups: Two people with close names, addresses, or Social Security numbers? The system might mash their data into one big mess.
  • Sloppy Fingers: Typos in names or account numbers—by creditors or bureaus—can twist info into knots.
  • Identity Theft Chaos: Thieves grabbing bits of your data to open accounts can muddy the waters even more.

Here is the breakdown: The Fair Credit Reporting Act (FCRA) says credit bureaus and creditors have to keep your report as accurate as humanly possible. When they drop the ball, you’ve got the law on your side to push back.

How to Take Charge and Fix Mixed File Errors

Think you’ve got a mixed file mess? Don’t sit on it—time’s ticking. Here’s the playbook:

  1. Pull Your Reports: Snag free copies of your credit reports from Equifax, Experian, and TransUnion at annualcreditreport.com. Dig through them. Spot accounts, payments, or personal details that don’t belong? Flag them.
  2. File a Dispute: Fire off a detailed dispute to the bureau—or bureaus—showing the glitch. Back it up with solid proof. They’ve got 30 days to sort it out.
  3. Get Legal Muscle: If the dispute flops or you’ve taken a financial hit, talk to a consumer rights attorney. The FCRA packs a wallop—compensation for losses, stress, and even punitive damages if the screw-up was blatant.

At the Credit Report Law Group, we dive headfirst into the weeds of credit report glitches, mixed files included. Our team brings hardcore litigation chops and consumer law know-how to hold the line against credit bureaus and creditors. So, what’s the upside? In a lot of cases, our clients pay zilch in attorney’s fees—the FCRA makes the bad guys pick up the tab.

Reclaim Your Financial Future

Mixed file credit reports don’t have to run your financial show. Whether you’re wrestling with bogus accounts, unfair denials, or the sheer stress of it all, the Credit Report Law Group has your back. Want the inside scoop on your options? Check out our take on mixed file credit reports. Drop us a line today for a free phone evaluation and kickstart the fight to set things straight.

Credit Report Errors, Credit Reports

Understanding Credit Report Errors: Causes, Impacts, and How to Fix Them

Posted on by Credit Report Law Group
credit report errors

Credit reports are essential tools lenders, employers, landlords, and insurers use to assess an individual’s financial reliability. They compile data on credit accounts, payment histories, and public records to generate a comprehensive profile of a person’s creditworthiness. However, inaccuracies—known as credit report errors—can infiltrate these reports, potentially leading to adverse financial consequences.

Understanding Credit Report Errors

A credit report error occurs when incorrect or misleading information appears on an individual’s credit report. Such inaccuracies can stem from various sources and may significantly impact one’s credit score, affecting the ability to secure loans, housing, employment, or favorable interest rates.

Common Types of Credit Report Errors

  1. Personal Information Errors: Mistakes in personal details, such as misspelled names, incorrect addresses, or erroneous Social Security numbers, can lead to mixed files—where information from another individual is included in your report. This often happens when individuals share similar names or other identifying information.
  2. Account Information Errors: These include inaccuracies like accounts that don’t belong to you, incorrect account statuses (e.g., showing an account as open when it’s closed), or erroneous balances and credit limits. Such errors can misrepresent your financial obligations and payment history.
  3. Duplicate Accounts: Sometimes, the same debt is listed multiple times, especially if it has been sold to different collection agencies. This duplication can inflate the perceived amount of debt and negatively affect your credit score.
  4. Incorrect Payment Histories: Errors indicating late or missed payments when payments were made on time can severely damage your credit score, as payment history is a significant factor in credit scoring models.
  5. Identity Theft-Related Errors: If someone fraudulently uses your personal information to open accounts or make purchases, these unauthorized activities can appear on your credit report, leading to inaccuracies and potential financial harm.

Causes of Credit Report Errors

  • Data Entry Mistakes: Human errors by creditors or credit bureaus during data entry can introduce inaccuracies in your credit report.
  • Identity Theft: Fraudulent activities from identity theft can result in unauthorized accounts or transactions appearing on your report.
  • Mixed Files: When credit bureaus combine information from individuals with similar names or identifying details, it can lead to mixed files, where someone else’s information appears on your report.
  • Outdated Information: Credit reports may retain outdated information, such as debts that have been paid off or accounts that have been closed, leading to inaccuracies.

Impact of Credit Report Errors

Even minor errors can have significant repercussions:

  • Lower Credit Scores: Inaccurate negative information can reduce your credit score, making it harder to obtain credit or secure favorable interest rates.
  • Loan Denials: Lenders may only accept loan applications based on correct information, hindering your ability to finance major purchases.
  • Employment Challenges: Some employers review credit reports during hiring; inaccuracies can adversely affect employment opportunities.
  • Housing Difficulties: Landlords often check credit reports when evaluating potential tenants; errors can lead to rental application denials.

Legal Protections and Remedies

The Fair Credit Reporting Act (FCRA) is a federal law that mandates consumer reporting agencies to adopt procedures ensuring the “maximum possible accuracy” of information in credit reports. It also requires these agencies to handle consumer information with fairness, impartiality, and respect for privacy.

Under the FCRA, consumers can dispute inaccuracies on their credit reports. If a legitimate dispute is not resolved in your favor, you may be entitled to sue the bureaus and creditors for both a corrected report and compensation.

Steps to Address Credit Report Errors

  1. Obtain Your Credit Reports: You’re entitled to a free credit report annually from each of the three major credit bureaus—Equifax, Experian, and TransUnion—through AnnualCreditReport.com. Regularly reviewing your reports helps identify errors promptly.
  2. Review for Accuracy: Carefully examine each report for inaccuracies in personal information, account details, and payment histories.
  3. Dispute Inaccuracies: If you find errors, file a dispute with the credit bureau(s) reporting the incorrect information. Provide documentation to support your claim, such as payment records or correspondence with creditors.
  4. Follow-up: Credit bureaus typically have 30 days to investigate disputes. Monitor the process and ensure corrections are made.
  5. Seek Legal Assistance: Consider consulting a credit report error attorney if disputes are not resolved satisfactorily. Legal professionals can help you file a proper dispute and, if necessary, pursue litigation to correct your report and obtain compensation.

Preventive Measures

  • Regular Monitoring: Check your credit reports to catch and address errors early.
  • Secure Personal Information: Protect your data to reduce identity theft risk.
  • Promptly Address Issues: If you notice suspicious activity or errors, act quickly to dispute and resolve them.

Credit report errors are more common than many realize and can affect your financial health. Understanding the types of errors, their causes, and the steps to correct them is crucial to maintaining an accurate credit profile. By proactively monitoring your credit reports and addressing inaccuracies promptly, you can safeguard your financial reputation and ensure fair access to credit and other opportunities.

Need legal assistance for credit report errors? Click here or contact Credit Repair Law Group at 212.848.2428.

Credit Report Errors, Credit Reports, News

What Does a Credit Report Attorney Do for Their Clients?

Posted on by Credit Report Law Group

Maintaining an accurate credit report is crucial for securing loans, mortgages, and employment opportunities in today’s financial landscape. However, errors and inaccuracies can occur, potentially jeopardizing one’s economic standing. This is where a credit report attorney becomes invaluable. Focusing on consumer protection laws, these legal professionals assist clients in navigating the complexities of credit reporting, ensuring their rights are upheld and their credit profiles remain accurate.

Understanding the Role of a Credit Report Attorney

A credit report attorney focuses on issues related to credit reporting errors, identity theft, and violations of consumer rights under laws such as the Fair Credit Reporting Act (FCRA). Their primary objective is to advocate for clients facing challenges with credit bureaus, creditors, or entities that furnish information to these bureaus.

Essential Services Provided by Credit Report Attorneys

  1. Identifying and Disputing Credit Report Errors
    Credit reports can contain inaccuracies due to clerical errors, identity theft, or outdated information. A credit report attorney reviews clients’ credit reports to identify such errors. They then initiate formal disputes with the credit bureaus, demanding corrections or deletions of inaccurate information. This process involves drafting dispute letters, gathering supporting documentation, and ensuring compliance with legal procedures.
  2. Addressing Identity Theft Issues
    Victims of identity theft often find fraudulent accounts or transactions on their credit reports. A credit report attorney assists in rectifying these issues by contacting creditors and credit bureaus to remove fraudulent information. They may also guide clients through placing fraud alerts or credit freezes to prevent further unauthorized activity.
  3. Litigating Violations of Consumer Rights
    When credit bureaus or creditors fail to comply with the FCRA or other consumer protection laws, credit report attorneys can file lawsuits on behalf of their clients. This litigation seeks to hold offending parties accountable and may result in compensation for damages suffered by the client. Such legal action is a deterrent against future violations and promotes fair credit reporting practices.
  4. Providing Legal Advice and Guidance
    Beyond dispute resolution and litigation, credit report attorneys offer clients personalized advice on maintaining healthy credit profiles. They educate clients on their rights under consumer protection laws, advise on best practices for credit management, and provide strategies to prevent future credit issues.

The Importance of Hiring a Credit Report Attorney

Navigating credit report disputes and understanding consumer rights can be complex and time-consuming. A credit report attorney brings expertise and experience to the table, ensuring that clients’ rights are protected and that any inaccuracies are addressed promptly and effectively. Their involvement can lead to quicker resolutions and may prevent further damage to a client’s credit standing.

In an era where creditworthiness significantly impacts financial opportunities, ensuring the accuracy of one’s credit report is paramount. Credit report attorneys play a vital role in safeguarding consumers’ rights, rectifying inaccuracies, and providing guidance on maintaining healthy credit profiles. Their expertise helps resolve current issues and empowers clients to manage their credit proactively, paving the way for a secure financial future.

Need legal assistance dealing with credit report errors? Click here or contact Credit Repair Law Group at 212.848.2428.

Credit Report Errors, Credit Reports, Deceptive Acts and Practices, Identity Theft, Legislation

Wells Fargo Fake Accounts Plague Consumers

Posted on by Credit Report Law Group
Wells Fargo Storefront

In 2016, Wells Fargo made headlines when it paid $110 million to settle a class action lawsuit and another $185 million in fines relating to allegations that the bank had created as many as 2 million accounts for customers without getting their permission to do so. Then, in December 2022, it paid a whopping $3.7 billion to settle claims involving 16 million accounts. Now Wells Fargo is in the news again, and it’s once more about fake accounts. But this time, Wells Fargo may be one of the victims of the wrongdoing. Or not….

Consumers Learning of Fake Accounts

According to NBC News, since 2022, a few dozen consumers have filed complaints with the Consumer Financial Protection Bureau that they’ve learned they have unapproved accounts with Wells Fargo. However, unlike those caught up in the earlier account scandal, these consumers weren’t already customers with Wells Fargo. Instead, they had no prior connection with the bank.

Some learned of the fake accounts by accident. Still others received notices from Wells Fargo. And some of these accounts had several thousand dollars flowing in and out of them—with some bounced transactions, too.

Synthetic Identity Theft

Experts reviewing the consumers’ complaints informed NBC News that the likely explanation is that the consumers are victims of “synthetic identity theft.” Unlike traditional identity theft, when someone poses as another person by using their information, with synthetic identity theft, a scammer cobbles together some people’s real information with fake data. While it can be a complicated con (that takes years in the making), once the fake identity is created, it’s easier for the scammer to use because they can continue to change the contact information and other data to best suit their scam. At the same time, the mix of fake and real data means it’s easier for synthetic identities to be used without detection.

Is Wells Fargo Responsible?

At first glance, it would seem that Wells Fargo is, along with the consumers themselves, a victim. However, one of the impacted consumers is suing Wells Fargo and Early Warning, a company co-owned by Wells Fargo and other banks that runs the Zelle payment service and collects data for identification services. In the lawsuit, the consumer alleges that Wells Fargo and Early Warning stole his data and verified the false transactions as his—therefore damaging his credit.

There’s no way to know what the outcome of the lawsuit will be, but the incident should remind all consumers of certain key facts:

  • It’s important to regularly check your credit report for any false accounts or other errors.
  • If you learn of any fake accounts, put an alert on your credit reports as soon as possible.
  • Be careful allowing any institution access to your banking information because it’s possible that they may circulate it to other entities without your knowledge.
  • Financial entities should be vigilant about the security of their records; if they are aware of errors, they should notify you and correct them. If they fail to do so, they may be liable for damages.

That’s why, if you have had any issues with identity theft or other issues with incorrect information on your credit report, contact an attorney as soon as possible. The Credit Report Law Group can help you correct your credit record and obtain compensation for any damages you have sustained.

Consumer Financial Protection Bureau (CFPB), Credit Report Errors, Credit Reports, Deceptive Acts and Practices

CFPB’s Multibillion-Dollar Settlement with Credit Repair Firms

Posted on by Credit Report Law Group

On August 28, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had reached a $2.7 billion settlement with Lexington Law and CreditRepair.com to resolve allegations that the companies have been violating federal law with their telemarketing practices. As the nation’s two largest “credit repair” companies, the companies earned approximately $388 million in revenue in 2022 alone.

In March 2023, a federal district court ruled that Lexington Law and CreditRepair.com had both violated a provision of the Telemarketing Sale Rule. This rule requires that credit repair companies cannot bill clients until six months after they have provided customers with the documentation that proves they have successfully helped with the customers’ credit complaints.

The court found that “it is undisputed that Heath (doing business as Lexington Law) charges fees to clients every month, without waiting six months and without providing a consumer report at the six-month mark showing results have been achieved.” The court also concluded that CreditRepair.com was also doing these same illegal practices. The companies also allegedly conducted other additional deceptive practices. For example, Lexington Law suggested that attorneys would assist its clients, but the vast majority were never allowed to contact a lawyer.

Following the court’s ruling, the companies filed bankruptcy, saying they’d shut down 80 percent of their companies and laid off 900 employees.

To resolve the case, the CFPB and the defendants agreed to the following, pending court approval:

  • Lexington Law and CreditRepair.com must pay $2.7 billion for the victims of its schemes
  • The companies must bay another $64 million in penalties
  • The companies are both banned from doing any telemarketing for the next ten years
  • The companies are prohibited from working with certain marketing agencies that assisted them in the violations
  • The companies must notify all telemarketing customers of the lawsuit and their ability to cancel the services

While this is a major victory, these two firms are by no means the only credit repair companies that are taking advantage of American consumers. These “credit repair” companies often bill them for services they do not receive, mislead them in terms of what they will do to address problems with their credit, and more.

The reality is that American consumers can monitor their own credit by obtaining free credit reports, and if they discover any errors, the credit reporting companies are required by law to resolve them. If they fail to do so, you can sue them for damages.

That’s why, if you have had any issues with incorrect information on your credit report, don’t hire a credit repair firm. Instead, contact an attorney as soon as possible. The Credit Report Law Group can help you correct your credit record and obtain compensation for any damages you have sustained.

Background Check Errors, Consumer Financial Protection Bureau (CFPB), Credit Report Errors, Credit Reports, Credit Scores, Debt Collection and Harassment

Harmful Data Broker Practices—What Can Be Done to Protect American Consumers

Posted on by Credit Report Law Group

As many as 40 million Americans have errors on their credit reports—and errors on credit reports can cause havoc on someone’s financial well-being, leading them to have potentially higher interest rates on credit cards, mortgages, and car loans. It can even impact their ability to rent an apartment or get a job.

Meanwhile, despite the fact that the credit reporting industry’s entire reason for existing is to transmit accurate data, these millions of errors haven’t seemed to have hurt the industry. According to IBIS World, the credit rating industry made more than $14 billion in 2022, up from $9.1 billion just 12 years ago.

Realizing that data brokers are profiting from the sale of unauthorized and inaccurate data, Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), recently gave a speech addressing what can be done to protect Americans from data brokers’ harmful practices.

According to Chopra, the CFPB is developing new rules to limit data brokers’ misuse or abuse of data—particularly in light of the dangers that could arise from the rapid adoption of artificial intelligence.

While the CFPB considers other rules, Chopra highlighted two pending proposals.

The first would be that regulations could redefine data brokers as “consumer reporting agencies.”

This would more accurately reflect the type of consumer data these companies collect, such as consumers’ payment history, income, and criminal records. The change would also mean these entities would fall under credit reporting requirements. For example, the companies would then have to maintain accurate data and create effective dispute procedures to correct consumers’ information.

The second proposal would address “credit header data.” Currently, data brokers use personal identifier information from the major credit reporting companies, but this use isn’t considered to be a credit report. The CFPB is considering clarifying that this credit header data is a credit report because that change would limit the reporting companies’ ability to share sensitive data.

While this is important progress, creating regulations is a slow process. The CFPB isn’t planning on releasing draft regulations for public comment until 2024, and it’s unknown how long it would take to implement an adopted regulation.

That’s why, if you have had any issues with incorrect information on your credit report or other data broker issues, don’t wait for regulations to change before you defend yourself. Instead, contact an attorney as soon as possible. The Credit Report Law Group can help you correct your credit record and obtain compensation for any damages you have sustained.

Credit Report Errors, Credit Reports, Deceptive Acts and Practices, Identity Theft

The Pitfalls of “Credit Repair”

Posted on by Credit Report Law Group
Credit History

In June 2023, the New York Times Sunday Magazine looked inside the chaotic world of “credit repair” companies. The feature tells the story-after-story of how bad credit can ruin people’s financial lives—pushing them to the brink, financially and psychologically. It reveals how credit scores have ties to serious racial and sociological inequity. It explores how the credit industry has largely evaded efforts to be limited or regulated in its ability to make money off selling American consumers’ information—sales that Americans have essentially little control over, while the bureaus financially benefit by hurting Americans’ financial well-being.

All of that is gut-wrenching, but what is perhaps the most stunning is the article’s portrayal of the “credit repair” industry—how individuals who seek help with credit problems are being exploited and robbed by the very people who are pretending to help them.

As the article explains, even those well-intentioned individuals who genuinely want to help people struggling with bad credit seem to have little-to-no training or expertise in accounting, document management, or even how to challenge credit reports. Yet they charge people already struggling with debt $100 or more monthly for credit services.

But things rapidly go downhill from there.

The article also reveals how many of the “credit repair” companies are, unbeknownst to their clients, using illegal tactics to address credit reports—such as falsifying statements to law enforcement as a way to challenge clients’ data.

Further, some of these companies are nothing more than scammers, defrauding clients and even stealing their data —committing identity theft when they were supposed to protect clients from it.

As the article addresses, there are various cases before federal agencies and some members of Congress discussing the need for reform. But there seems to be negligible progress on that front. In the meantime, individuals need to realize that the credit repair firms are not credentialed, unregulated, and—after all that, they aren’t even good at fixing someone’s credit.

That’s why it is so crucial to get competent representation from law firms such as The Credit Report Law Group.

The Credit Report Law Group is led by experienced licensed attorneys who are leaders in the credit reform community. They understand a consumer’s legal rights, so they can legitimately address errors in credit reports, debt harassment, identity theft, and more.

Another example of how unscrupulous “credit repair” companies operate is that they charge upfront without guaranteeing success. Legitimate advocates do not charge upfront. For example, the Credit Report Law Group takes most of its cases on a contingency basis, so clients don’t need to pay any money upfront—they only pay after a successful result.

While, as the New York Times reported, many credit repair companies rely on boilerplate complaints and deception to serve their clients, the Credit Report Law Group will carefully review your specific issues and develop a sound, effective legal strategy that best reflects your situation and needs.

That’s why, if you have had any issues with identity theft or other issues with incorrect information on your credit report, don’t risk a credit repair company. Instead, contact an attorney as soon as possible. The Credit Report Law Group can help you correct your credit record and obtain compensation for any damages you have sustained.

Credit Report Errors, Credit Reports, Credit Scores, Debt Collection and Harassment, Legislation, News

What If My Child Has Debt on Their Credit Report?

Posted on by Credit Report Law Group

There’s no law or policy that establishes that children must reach a minimum age before the national credit bureaus begin compiling a credit file on them. (That’s why children can be the victims of identity theft—because fraudsters can use their identities to open bank accounts and credit cards in their names.) So what if a child has debt on their credit report? What then?

The Age of Majority

Under New York law, minor children cannot enter into a legally binding contract before they reach “the age of majority,” which, in most states, including New York, is 18 years old. Therefore, if a child signs a contract when they are still underage, the contract can be nullified, and they cannot be required to pay a debt that they acquired when they were underage.

In other words, according to New York law, minors are not responsible for debts they incur while underage.

That means underage children cannot file for a credit card or other account in their name. This causes some confusion because parents can get a child a credit card to carry. That is true, but the child is only an authorized user. They are not the account owner. The credit card remains solely the parent’s account, and it’s the parent’s responsibility to pay all the charges. So if a parent’s credit card is reported on the child’s credit report, that’s an error.

Similarly, a parent could co-sign or otherwise approve an underage child’s entering into a contract. But this means the parent, not the child, would be responsible for the debt.

The Right to Learn and Challenge Information

To find out if there is any debt on a child’s account, parents should review their children’s credit report—which is accessible by using their children’s Social Security Number—to discover what may be there.

To do that, they can obtain free credit reports for their kids just as they can ask for their own reports. And it’s important to note that parents and legal guardians have the right to contest any errors on their child’s report, just as they can challenge any errors on their credit information.

If you have had any issues with the national credit bureaus, including misreporting of your child’s credit information, contact an attorney specializing in representing clients like you. The Credit Report Law Group can not only help you correct your credit record, but the firm can also help you obtain compensation for any damages you have sustained.

Credit Report Errors, Credit Reports, Credit Scores, Debt Collection and Harassment, News

What Do I Do If One Debt Is Listed Multiple Times on My Credit Report?

Posted on by Credit Report Law Group
Senior & Junior Mixed Credit

Having debt on your credit report is a fact of American financial life. But what happens if the same debt is listed multiple times on your report?

As the Consumer Finance Protection Bureau (CFPB) has explained, this is not a “harmless error.” That’s because credit bureaus don’t recognize all these entries as duplicates showing the same debt. Instead, the credit bureaus presume that each debt is legitimate and unrelated to the others. And so, when determining your credit score, the credit bureaus will add up all the debts listed on your account—including any duplicates—to determine your total financial liability.

Therefore, just like any other error on your credit report, those duplicates can lower your credit score and end up costing you money in higher interest rates on credit cards and loans.

How Do Duplicate Entries Occur?

The national credit bureaus receive data from countless sources, and this information is compiled into a credit file on an automated basis. (No one is checking to ensure the information they receive is correct.) The bureaus pull data from major vendors, banks, and others who have first-hand, direct relationships with you—such as credit card companies. And the bureaus also get data from other data compilers and third parties such as debt collectors.

Given that, it’s possible that multiple sources are reporting the same information, and there is just enough variance in each entity’s description of the debt that the credit bureaus’ automated systems perceive all these entries as unrelated debts.

Another way that multiple entries can appear is if a debt has gone to debt collection. Large companies often assign a single debt to more than one debt collector. Since debt collectors also report accounts to the credit bureaus, their competing reports can make it look like you have multiple outstanding debts, even though they all relate to the same credit.

And it’s always possible there was some error, either in the submission or processing of the data. A computer glitch causes a double entry, the vendor submits the same information twice, and so on.

No matter what the cause, the effect is the same. Your credit report has errors, and this can hurt your ability to get credit, even hurt your ability to get a job, rent an apartment, or buy a home.

And no matter why it happened, you have the right to challenge the error, and the credit bureaus are required to fix your credit report.

If you have had any issues with the national credit bureaus, including duplicate entries on your credit report, contact an attorney specializing in representing clients like you. The Credit Report Law Group can not only help you correct your credit record, but the firm can also help you obtain compensation for any damages you have sustained.