Category Archives: Credit Scores

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Fraud, Mixed Case File, News

Mexican-Americans Should Watch Their Credit Files for Erroneous Information

Posted on by Credit Report Law Group

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.

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Fraud, Identity Theft, Mixed Case File, News

People of Polish Ancestry Should Check Their Credit Files

Posted on by Credit Report Law Group

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.

Credit Reports, Credit Scores, Legislation, News

Popular English Surnames Can Lead to Credit Report Problems

Posted on by Credit Report Law Group

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.

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Fraud, Identity Theft, News

Common French Surnames Can Cause Credit History Problems

Posted on by Credit Report Law Group

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 Reports, Credit Scores, Debt Collection and Harassment, Legislation, Medical Debt, News

Credit Bureaus Removing Some Medical Debt from Credit Reports

Posted on by Credit Report Law Group

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.

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Debt Collection and Harassment, Identity Theft, Legislation, Mixed Case File, News

A Record Year of Complaints for the Three National Credit Bureaus

Posted on by Credit Report Law Group

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.

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Identity Theft, Mixed Case File, News

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

Posted on by Credit Report Law Group

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.

Background Check Errors, Credit Report Errors, Credit Reports, Credit Scores, Identity Theft, Mixed Case File, News

CFPB Orders Portfolio Recovery to Pay More than $24 Million (Part 1)

Posted on by Credit Report Law Group

In March 2023, the Consumer Financial Protection Bureau announced that it was ordering Portfolio Recovery Associates (PRA) to pay millions to consumers. The Bureau stated that PRA had been engaging in numerous violations of law. And what made the order even more surprising is that PRA had already been fined in 2015 for other violations—so the debt collector had not only failed to clean up its act, but it doubled down with even more illegal activity, harassing consumers for debts, filing meritless lawsuits, and more.

Given that the Virginia-based PRA is one of the largest debt collectors in the nation, with a 2021 reported net income of more than $183 million, we’re going to delve into this order—in this first post by identifying PRA’s violations and then, in the following post, we’ll look at the steps PRA must take in response to this new order.

PRA’s 2015 Violations

In September 2015, the Bureau announced it was taking action against PRA for several illegal practices. These included:

  • Attempting to collect on an unsubstantiated or inaccurate debt
  • Filing suit against debtors without evidence to back up the claims, trusting they’d win because consumers wouldn’t defend the suits
  • Filing suit for debts after the statute of limitations had expired
  • Falsely claiming attorneys reviewed the debts and concluded PRA should sue the consumers
  • Making false statements to consumers regarding the existence of a debt

The Bureau ordered PRA to end these practices and pay $19 million in refunds to consumers and a penalty of $8 million. PRA also had to stop collecting another $3 million in pending actions.

PRA’s 2023 Violations

In the 2023 order, the Bureau reported that PRA violated the 2015 order and other Fair Credit Reporting Act provisions.

As in the past, PRA continued to attempt to collect debts without evidence of the debt’s validity. PRA continued to sue for debts, even though claims were time-barred by the statute of limitations.

According to the Bureau, “on at least tens of thousands of occasions,” PRA failed to resolve consumers’ disputes within the required period.

Additionally, PRA failed to conduct reasonable investigations if consumers said that the debt owed wasn’t theirs—it was the result of fraud or identity theft. PRA did not inform consumers about the result of investigations, and it did not supply documentation when requested by the consumers.

In our next post, we’ll discuss what the Bureau’s enforcement action means for consumers.

Consumer Financial Protection Bureau (CFPB), Credit Report Errors, Credit Reports, Credit Scores, Mixed Case File, News

New Report Shows Progress in the Fight Against Credit Bureau Errors and More—But We Aren’t Done Yet

Posted on by Credit Report Law Group

On January 3, 2023, the Consumer Financial Protection Bureau (CFPB) released a new report assessing the state of the nation’s credit reporting system, particularly the work of the three national credit bureaus, Experian, Equifax, and TransUnion. Compared to last year’s dismal report, the results are encouraging.

While there is still a ton of work to be done, the bureaus seem to have taken some steps in the right direction. The complaints, lawsuits, and more positively affect the individual consumers and the system as a whole.

In last year’s report, CFPB described how consumers were outraged by the behavior of three national credit bureaus. The consumers complained that they had many problems with their credit reports, from mixed files—when other people’s information was on their record—to information that suggested paid-off debts were still due and more. And the bureaus did next to nothing when consumers complained. Most of the time, consumers just received a generic, boilerplate response to their complaints—even though a substantive response is usually required by law.

By contrast, in 2022, the CFPB found that the bureaus have decreased their reliance on generic replies, and, instead, most consumers are now getting substantive responses. In September of last year, consumers received a response tailored to their issue for more than 50% of the complaints that were closed or where relief was given.

Another positive sign: More consumers received help from the bureaus. TransUnion reported that it provided some relief for the majority of complaining consumers. Experian said it had given some relief to nearly half of those who complained.

In years past, the bureaus had claimed they had helped so few consumers because their complaints lacked merit. Now it is more difficult for them to continue to make that claim.

While progress has been made, if half of the consumers were helped last year, that still means half did not get the relief they deserved. And even for those who were helped, the CFPB said they often endured a frustrating process, having to complain to multiple entities to get the necessary corrections.

That’s why, if you do see mistakes on your credit report, get help having your information corrected. Contact an attorney who specializes in representing clients like you. A lawyer can not only help you repair your record, but they can also help you obtain compensation for any damages you sustained.