Category Archives: Credit Scores

Background Check Errors, Consumer Financial Protection Bureau (CFPB), Credit Report Errors, Credit Reports, Credit Scores, News

Why Aren’t Credit Bureaus More Careful in Vetting Your Records?

Posted on by Credit Report Law Group

Last summer, Consumer Reports asked 5,858 volunteers to ask for their credit report and examine it for any errors. And more than one-third of them did indeed find at least one error on their credit report. And this wasn’t the only time Consumer Reports and others have found such damaging results. And those errors matter; many make people look like bigger credit risks than they actually are.

Common errors in reports include: a failure to update debts as having been paid off, mixed files (when the record included accounts or debt that did not belong to them), and wrong personal information (such as an incorrect address).

If you’ve found errors on your credit report or realize you have a mixed file, you may be wondering: Why are the credit monitors so bad at monitoring your credit? Why don’t they do a better job at vetting the information they receive?

Sources for Credit Reports

The three credit bureaus—Experian, Equifax, and TransUnion—use different sources for their credit reports, which is why your information may be different from one bureau to the other. But generally speaking, they draw data from public filings and court records (such as property ownership records and lawsuits), bank information, credit card companies,

According to a Brookings Institute report, credit bureau errors happen because of the “size, speed, and economic incentives of the system.” When it comes to size and speed, the bureaus maintain more than 200 million credit files, and each month, more than 1 billion pieces of data are updated. And a lot of the data is inaccurate when it comes to the bureaus. For example, there can be errors in the original bill, while debts sold to third-party collectors may not be updated, even when paid in full. And there’s just not enough money to incentivize those supplying the data to provide more accurate records.

Therefore, until the laws change, you—not the credit bureaus—are responsible for checking the accuracy of your credit report. But once you do find errors, you don’t have to fight the credit bureaus on your own. That’s why, if you identify any errors and negative information in your credit report, contact an attorney who specializes in representing clients like you—disputing the errors, repairing your record, and obtaining compensation.

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

Equifax Free Credit Monitoring Due to the Company’s Data Breach

Posted on by Credit Report Law Group

In 2017, credit bureau Equifax was hacked, and the records of approximately 147 million people were compromised. Unsurprisingly, lawsuits were filed, and, as part of a court settlement, those impacted by the breach were ultimately offered a choice between a one-time payment of $125 or four years of free credit monitoring. It may seem like the height of irony—that the credit bureau will monitor your records to make up for its failure to protect your records. But credit monitoring is always important to your financial wellbeing—and even more so following a data breach—so let’s talk about what impacted individuals should do next.

Was My Data Compromised by the Breach?

If you are not sure if you are one of the impacted individuals, you can find out by checking this dedicated database (which was specifically set up for the settlement). If you are not an impacted individual, know that, until 2026, all U.S. consumers are entitled to a free annual credit report.

What If I Am One of the Impacted People?

If you are one of the impacted individuals, you should have received a letter or an email from the settlement administrator. A real email would come to you from this email address: info@equifaxbreachsettlement.com. The letter or email will give you a code to access your free credit monitoring. You must activate the code by no later than June 27, 2022; the code won’t work after that. (You can also call the administrator at 1-833-759-2982.)

Inspect Your Credit Report

Carefully inspect each entry of your credit report. Even if you don’t see any fraudulent activity on your account, you may discover other errors on your credit report, such as a “mixed file” (when someone else’s record is mistakenly included in your record).

If you find any issues relating to the data breach, you can file a claim for data breach-related expenses you incur after January 23, 2022, such as:

  • Fees for attorneys and accountants to help clear your account
  • Losses from fraudulent charges that made using your data
  • Ancillary expenses (e.g., costs for notaries, postage, phone bills)

No matter what kind of an issue it is, if you identify any negative information in your credit report, contact an attorney who specializes in representing clients like you—repairing your record and obtaining compensation.

Credit Reports, Credit Scores, News

‘Buy Now, Pay Later’ – Why These Programs May Distort Your Credit Score

Posted on by Credit Report Law Group

If you were doing some last-minute holiday shopping online, you might have seen a new option as you chose to purchase your item: Instead of paying the full amount, you could pay a portion at the time of purchase and space the rest over time (often, four payments made every two weeks). But what that quick offer at check-out probably did not explain is that these “easy payment” programs can wreak havoc on your credit score.

Traditional layaway programs didn’t impact someone’s credit score—it was a way of getting credit without a credit check and didn’t impact credit if payments weren’t made. However, Experian does include some “buy now, pay later” purchases in credit reports, while the other two major credit reporting bureaus, Equifax and TransUnion, are taking steps to do so in the coming year.

The real concern here is that these payments could easily distort (and damage) someone’s credit score.

A few small “buy now” purchases could make it appear to credit bureau algorithms as if you have substantially increased the number of vendors you’re indebted to. And credit reporting companies traditionally update their data on a 30-day or longer basis. Thus they don’t update as frequently as these plans require payment.

Therefore, if you opted for a few of these spread-out payments, your credit report could be showing a rapid increase in the number of your debtholders—a red flag for credit scores.

And the bureaus’ delayed updates could make it appear that you owe more money than you actually do since some accounts may not even appear until after you’d already paid them in full.

Either one of these factors is enough to affect a credit score. Combined, they could significantly distort the overall picture of your financial position and result in an inaccurate credit score.

And the more frequently updates need to be made, the greater the likelihood of errors in the credit reports.

In other words, these small, seemingly inconsequential payment plans could have downstream impacts when you’re trying to make a major purchase such as a home or car.

If you are dealing with inaccurate credit scores or other credit issues, contact an attorney who specializes in representing clients like you—repairing your record and obtaining compensation

Credit Report Errors, Credit Reports, Credit Scores, Mixed Case File

Credit Reports: Not As Accurate As You Might Think

Posted on by Credit Report Law Group
Credit Report Error Attorney NYC

Your credit score wields a lot of influence over your life. It can be the make-or-break determinate when buying a car, securing a mortgage, or accessing a line of credit for a new business venture. We’d like to think the logic behind our score is pretty bulletproof, but that may not be the case.

In a study conducted in 2021, Consumer Reports asked volunteers to inspect their credit reports for errors in personal information and account information. A whopping 34% of participants found at least one error. In a similar study conducted in 2012, the Federal Trade Commission found errors in 25% of the reports inspected.

Types of Errors

While errors in personal information may seem innocuous – they don’t have much effect on the score itself – they can make it difficult for a person to access their report. A mistake in a person’s social security number, for instance, can create confusion proving who the report belongs to.

Errors in account information, on the other hand, can really pack a punch. A relatively common occurrence is the mixing of report files by credit reporting agencies. If you’re unlucky enough to get mixed up with someone having a questionable credit history, your score could seriously suffer.

Fixing Mistakes

Companies like Equifax, Experian, and TransUnion believe themselves to be nearly perfect in their reporting. In fact, their response to the Consumer Data study findings claimed the study was “completely false and misleading;” the companies claim to have a 98% accuracy rating. It should be no surprise, then, that getting an error corrected requires a lot of work.

If you are a victim of credit reporting errors, you should begin your letter-writing campaign to have the errors corrected. For legal support, you may wish to contact a credit report error lawyer who can assist you with the challenges that may arise.

Credit Scores, News

Why everyone should know their FICO credit score

Posted on by Credit Report Law Group
Credit Report Error Lawyer in NYC

https://www.cnbc.com/select/why-you-should-know-your-fico-credit-score-how-often-to-check/

Checking your credit reports for free at http://annualcreditreport.com/ is a good start.

But to know the score(s) used by most lenders — the FICO score(s) — consumers must look beyond just their free credit reports or even the Vantage scores offered by the credit bureaus.

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

Study: CFPB complaints shattered records in 2020, exposing how the COVID-19 pandemic battered consumer finances

Posted on by Credit Report Law Group
Credit Report Errors Attorney - COVID-19 Finance Study

Confirmation of President Biden’s nominee Rohit Chopra will pivot agency back to only job: protecting consumers

WASHINGTON — Consumer complaints about problems with financial companies such as banks, credit bureaus and debt collectors rose by more than 50 percent in 2020 and set new records for each month of the year, according to a new report from the U.S. PIRG Education Fund. The report, Consumers In Peril, which analyzed complaints received by the Consumer Financial Protection Bureau (CFPB), was released Monday to kick off National Consumer Protection Week.

https://uspirg.org/news/usp/study-cfpb-complaints-shattered-records-2020-exposing-how-covid-19-pandemic-battered

“Dave Uejio has acted swiftly to get the CFPB back on track to protecting consumers,” said Mike Litt, U.S. PIRG Education Fund’s consumer campaign director. “The next step is Senate confirmation of Rohit Chopra to direct the Bureau. Chopra helped build the CFPB from the start and he is the right person Americans need in the driver’s seat.”