Debts and Debt Solutions

While credit repair can help remove negative credit items such as past late payments, collections and charge-offs, bankruptcy residue and more from your credit reports, in the end credit repair is not intended to help you stop paying on legitimate, current monthly bills. debt management

Credit Repair Home

| All FAQs | Previous FAQ | Next FAQ Credit Repair FAQ - The Rest of the Story... The primary benefit of credit optimization is the correction and repairing of your credit reports, which as they improve, help raise your credit score. Credit repair typically uses a system of credit disputes (formal letters) and legal challenges that place the burden of proof on the credit bureaus and the reporting creditors not on you. debt relief solution

Success in credit repair therefore presumes that no new negative information will be added to your reports during the credit repair process, and it presumes your credit debt can be maintained or reduced. debt management services

Failure to pay current bills, whether these be credit card minimums, a mortgage or refinanced home loan, student loans, vehicle installments, retail store cards anything that will hurt your credit if a late payment appears can sabotage your credit repair. bad credit debt consolidation

Hopefully this sounds like common sense. If credit repair cleans up and fixes an old late payment on your credit reports, then adding a new late payment deletes any benefits gained by the removal of the older late pay. Keep in mind that the more recent the damage, the more it hurts your credit score. credit debt solution

For the most part, damage slides down a point scale for about seven years. Thus any new charge off, collections, late payment, and so forth will likely hurt your score more than the removal of an older, similar negative item will be able to fully compensate. consolidation counseling

While we can counsel that it is best to pay all of your bills, and on time, Veracity recognizes life isn t always that easy. If you do have a new credit problem, please let us know promptly so that we can help minimize the damages incurred. In addition, we encourage our clients to take full advantage of our credit consultation frequently. credit card debt

We ll chug away writing dispute letters and requesting investigations from the credit bureaus, but we re also your personalized credit consulting service. Contact us at your convenience, and we ll gladly explain how to best pay down your credit debt, deal with collections, better distribute revolving credit, or prepare for a home mortgage loan. debt free solution

Still, while we do everything we can to help, Veracity s credit repair services can t remove legitimate credit debts what you owe, you owe. Deleting an item from your credit report does not change the underlying responsibility for legitimate credit debt, and we advise that you pay all valid debts to remain in good standing with creditors. debt negotiation services

Veracity - BBB - Better Business Bureau Good Standing Credit Repair Case Studies Credit Repair FAQ Credit Repair Client Testimonials Credit Repair Enrollment How To Improve Your Credit Score Is Veracity a Member of the Better Business Bureau (BBB)

Yes, Veracity Credit Consultants is a member of the BBB, and we have a strong record of ethical, superior performance on file. We encourage all consumers to check BBB listings for any credit repair firm they may be considering. debt solution company

Credit Repair Home

| All FAQs | Previous FAQ | Next FAQ Credit Repair FAQ - The Rest of the Story... The core asset of Veracity s credit repair business is mutual trust. While membership in the BBB is one measure of trust, Veracity strives to exceed our client expectations of credit repair, with a special emphasis on our personal credit repair service. debt elimination services

That s why our primary focus is to build long-term relationships with our clients. We make sure each client gets individual attention, unlike so-called credit repair mills. Veracity is not a repair mill, and we concentrate on personal service heavily. Personalized service improves our client experience, and we work to maintain frequent communication between our credit repair service team and every client we have. debt reduction

The BBB seal symbolizes our commitment to ethical business, and we proudly assist thousands of clients, year after year. To make sure we continue to provide the best repair service available, we also monitor federal regulation carefully. debt solution inc

Quality credit repair service demands strict security, and we protect your privacy with stringent security measures. Working to safeguard the integrity of your personal information further reflects Veracity s dedication to superior credit repair service. debt settlement services

Credit Repair Case Studies Credit Repair FAQ Credit Repair Client Testimonials Credit Repair Enrollment How To Improve Your Credit Score What are Expected Results from Credit Repair with Veracity

Credit reports are as different as the people they identify, and because the credit bureaus must construct reports by assembling data from so many sources, and over such a long period of time, few credit reports or credit scores are entirely accurate. debt relief

Veracity is dedicated to repairing your credit through a combination of excellent customer service, frequent communication, and our many years of experience with thousands of satisfied clients. We know how to repair your credit, period. christian debt solution

You should expect significant, positive results over time. Many of our clients continue using our credit repair and score management services beyond a quick credit boost. Why pay for a credit monitoring service when Veracity can combine credit monitoring, credit repair, and full credit consultation for you to provide a complete solution Credit Repair Home | All FAQs | Previous FAQ | Next FAQ counseling credit debt

Despite the PPSC s extensive hearings and recommendations regarding the FCRA, Congress made no serious effort to improve the FCRA throughout the 1970s and most of the 1980s. By the mid-1980s, the national credit reporting agencies had to be feeling nearly untouchable. ¹⁴⁸ Ibid, Pg. 67 ¹⁴⁹ Ibid, Chapter 2: The Consumer-Credit Relationship, pgs. 41-100 ¹⁵⁰ The remaining 14 chapters address personal data held by banks, insurers, employers, health care providers, direct marketers, government agencies, the Privacy Act, and Social Security numbers. In nearly all the chapters, the PPSC made extensive recommendations to enact new privacy laws or strengthen existing ones. From a policy point of view, the commission defined information privacy in terms of Fair Information Practices, and explained that the FCRA was based on FIPs and therefore was an information privacy law. debt consolidation program

They had overtaken the legislative process in 1970 and re-wrote what was supposed to be a consumer protection law so it instead provided them with valuable tort immunity and other benefits. Proxmire s bid to strengthen the law in favor of consumers went nowhere. Similarly, the recommendations of the Privacy Protection Study Commission just gathered dust on a shelf. And the FTC s first major enforcement effort was set aside by a federal appeals court. debt reduction solution credit

Meanwhile, mergers and acquisition had allowed the national CRAs to consolidate their control over the market. Fast-improving information technology enabled them to gather, store and sell more personal data faster, better, cheaper. Yes, for the CRAs in the 1980s, life was good. debt collection services

The Complaints Just Kept On Coming

By the late 1980s, complaints were rising about credit report inaccuracies. The first person to attempt to assess the extent of the inaccuracy was a mortgage broker, reflecting the fact that error-prone credit reports were hampering the home-buying process. On August 7, 1989, James Williams of Consolidated Information Service, a New York-area mortgage reporting firm, released a report analyzing 1, 500 reports from TRW, Equifax, and Trans Union, and found a serious error rate of 42% to 47%.¹⁵¹ credit card debt solution

The Williams study and subsequent legislative proposals set off a debate over credit report accuracy that continued for 14 years and proved a dominant theme in the 2003 legislative proceedings in Congress. card counseling credit debt

In the October 3, 1989 issue of Privacy Times, this author co-wrote an article on consumer complaints to the FTC about their credit reports. (The complaints were obtained through a Freedom of Information Act request, with the names redacted.) The story found that several consumers complained about inaccuracies, and a common cause of inaccuracy was the mixing of files of two consumers with similar names or SSNs. Another theme was the credit bureaus callous attitude toward consumers. debt help

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James Williams, Consolidated Information Services, Credit File Errors, A Report, August 1989 One consumer, in reference to his credit report, wrote to the credit agency, How is it possible to get files so mixed up It contained five different Social Security numbers other than my own! Another consumer said, TRW had corrected the original errors, but now they have added someone else s credit profile to mine. When the consumer complained to a TRW agent about the cost of all the long distance phone calls to correct the mistakes, the agent told her to speak to an attorney. ¹⁵² com debt solution

On June 12, 1990, as the FCRA legislative debate picked up steam, the U.S. Public Interest Research Group (US PIRG) released its first study on the issue, entitled Nightmare On Credit Street, Or, How The Credit Bureau Ruined My Life. U.S. PIRG was a fierce advocate for consumer rights, with independent PIRGs in several key states. Nightmare On Credit Street was a series of case studies. The first case study was entitled Paul Rosenzweig: Credit Bureaus Commonly Include Credit Information Mixed With Someone Else s Information. It quoted Mr. Rosenzweig s letter to CALPIRG: christian consolidation debt

To sum up the situation, there is another Paul Rosenzweig in L.A., he has a different Social Security number and birth date so it is beyond me that his bad credit keeps ruining mine. . . I have spent every moment of my free time trying to fix this mistake which I did not make and it has made my life a living hell. I really feel sorry for the Bob Smiths out there. debt counseling

Another case study in the 1990 US PIRG report focused on the failure to correct inaccuracies. The New Jersey Dept. of the Public Advocate found similar problems in an April 1990 report, Credit Reporting Complaints, by Pat Donahue. debt settlement solution

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Privacy Times, October 3, 1989 In April 29, 1991, Consumers Union released its first report, What Are They Saying About Me The Results of A Review of 161 Credit Reports From The Three Major Credit Bureaus. The rather unscientific survey found that 48% of the credit reports examined contained serious errors, defined as those that could, or did, cause the denial of credit, employment or insurance. consolidation debt free iowa

In 1991, U.S. PIRG released its second study, Don t Write, Don t Call, We Don t Care. It highlighted several examples of credit bureaus failing to respond to consumers seeking correction of errors. In October 1993, U.S. PIRG released its third report, Credit Bureaus: Public Enemy #1 At The FTC. Based upon a Freedom of Information Act (FOIA) request, U.S. PIRG found that between 1990-93, problems with credit bureaus were the leading cause of complaints to the FTC. The 1993 PIRG report found that 44% of complaints concerned mixed files, and that among those, 64% involved the mixing of data with total strangers. The study found that 94% of consumers complaining did so because of uncorrected errors in their reports and that 83% specifically named at least one of the three major CRAs Equifax, Trans Union or TRW (now Experian). consumer debt consolidation

: Even though the term pre-approved is plastered all over the front page in big, bold type, you re not really pre-approved. If you actually respond to our offer, we will pull your credit report again so we can do one last, individualized (though automated) check before deciding if we really want you as a customer. consumer debt solution

Translation

: Here s the bait-and-switch, or counter-offer. If after pulling your credit report a second time, we decide you re a bit too risky, we will still send you a credit card. But, it won t be the 0% card that we promoted to you. It will be a 12% APR. debt reduction services

You have the right to prohibit use of information in your file with any credit reporting agency in connection with any transaction that you do not initiate... (blah, blah, blah)... Translation

: You can block all offers based on your credit report by opting out. (Notice how the last thing they tell you about is the toll-free number.) Bait-and-Switch The bait-and-switch is a real possibility. Some credit card companies will lure you into responding with the pre-approved 0% introductory offer, only to send you a card that charges a 12% or higher interest rate. Moreover, when they send you the higher rate card they don t tell you that you were rejected for the better card, or that your credit report caused your rejection. Under the old FCRA, they did not have to give you an adverse action notice because they made you a counter-offer and you accepted. Unless you read the fine print, you could start using your new card and incur interest charges that you won t discover until your first monthly statement arrived. debt settlement

Mail Theft Identity Theft

Another reason to opt out from pre-screening is identity theft. In the early days of pre-approved credit offers, identity thieves would change the address so that a new card in the victim s name would be sent to the destination of choice. During the 2003 legislative debate, the financial services industry insisted that they changed their procedures so if an address was changed on a pre-approved offer, it would be flagged and the card would not be sent. Several industry officials said the rate of identity theft was much lower with pre-screened offers than with other kinds. american debt solution

But the identity thieves adjusted as well. In fact, theft of mail by organized gangs or loosely affiliated criminals has gotten worse. Even if they are unable to convert the pre-approved offer or convenience check into quick cash or credit, they are often able to sell the personal data to a fence that traffics in identifiers that help identity thieves. credit debt counseling

In June 2003, Privacy Times broke a major investigative news story about how various criminal gangs across the nation, intent on committing identity theft and credit fraud, were targeting mail boxes for consumers personal information and financial instruments. Their favorite targets included convenience checks, pre-approved credit card offers and bank statements. The gangs involved with these have demonstrated different levels of sophistication. Some consisted of drug addicts, especially methamphetamine users known as Tweakers; others were associated with specific foreign nationals. Some of the more active gangs hit 200-300 mailboxes in one day. When possible, they used convenience checks or pre-approved credit card offers to get credit quickly. If not, they sold the personal data to other gangs specializing in identity theft, credit fraud and counterfeiting.³⁰⁹ student loan debt

Some thieves will steal a pre-approved app, send it in, and either change the address or come back to take the credit card out of the mail box. Others will get checks, call the bank and try to change the customer s address, said Phil Bartlett, the U.S. Postal Inspection s manager for external crimes and identity theft.³¹⁰ green path debt solution

Between October 2002 and May 2003, postal inspectors had made 2, 264 identity theft-related arrests stemming from mail theft investigations. In one month in 2003, in one mid-sized western city, there were 20 arrests and 14 prosecutions. In that city, one law enforcement team had four of its six investigators dedicated to identity theft. consolidation debt debt free

³⁰⁹ Privacy Times

, June 16, 2003, Vol. 23 No. 12 ³¹⁰ Id. Bolstering Opt-Out Rights The FCRA Amendments of 2003 attempted to strengthen consumers rights in a couple of ways. First, they required the FTC by to set new rules directing creditors to present opt-out notices in such format and in such type size and manner as to be simple and easy to understand. Second, the Act closed the counter-offer loop-hole that made it easier for credit card companies to pull the bait-and-switch. The FTC and the Federal Reserve Board must publish risk-based pricing rules explaining how and when creditors must give consumers notice when something in their credit report caused the consumer to receive a materially less favorable offer. The new Amendments permitted creditors to give oral, written, or electronic notice, but do not allow consumers to sue for violations. Enforcement will be up to the FTC and U.S. banking agencies. debt free

Third, the Amendments for the first time permitted consumers to opt out from the sharing of their data for marketing purposes by affiliates of financial conglomerates. The new provisions were controversial among consumer advocates and privacy experts because they did not go further and regulate other types of affiliate sharing, such as the ones that result in detailed profiling of customers. A California State law sponsored by Senator Jackie Speier went further, but major banks asked a federal court to declare that the Speier law was preempted by the FCRA.³¹¹ nonprofit debt solution

Still, for those who want to cut down on junk mail, the 2003 Amendments should provide additional relief. A large financial conglomerate like Citigroup has over 1, 500 affiliates. In testimony before the Senate, Martin Wong, Citibank Global Consumer General Counsel confirmed that his company aggressively used affiliate data: debt service non profit

• It is vital to realize that the more recent a public record or delinquency, the more that delinquency will lower your credit score. debt consolidation services

• Severe Unpaid Debts - Public Records. The most negative credit failures are reflected in public records, as the account(s) at issue resulted in court action. Bankruptcy, foreclosure, court judgments, wage attachments, tax liens, and collection lawsuits, particularly if recent, can cause a credit score to plummet. debt reduction solution

• Severity Quantity of Delinquencies. While one 30-day late payment from four years ago would have a minimal impact on an otherwise positive credit history, the presence of three separate 90-day lates in the past year would have a major detrimental effect. Also severe are unpaid accounts that are sent to collection agencies or are charged off. federal debt consolidation

Factor 2: Amount Owed-Extent of Indebtedness (30%)

How much debt is too much The FICO system wants you to have debts, but not too many. More important, it sets standards as to whether you manage your debt responsibly. As Fair Isaac puts it: Owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. debt consolidation company

• Quantity of Credit Accounts. Too many credit cards can lower a score because FICO sees it as increasing risk. On the other hand, if you have no credit accounts, you will not be able to build a credit history. Fair Isaac warns against thinking there is an optimal number of credit cards. debt financial solution

• Ratio of Credit Balance To Credit Limit. Are you using a fraction of the credit that is available to you, or are you maxed out on your credit cards every month The ratio of your credit balance to your credit limit is a key factor in scoring your indebtedness. Some experts say that using only one-third of your available credit is optimal. debt recovery services

• The Amount Owed on All Accounts.

  How much are you dipping into debt Remember, even if you pay off your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your account at the time the credit card company reported it to the bureau often is the amount that will show in your credit report. online debt consolidation

• How Much Is Owed On Each Type of Account

  In addition, for the overall debt total, FICO scores the amount you owe on specific types of accounts, such as credit cards and installment loans. Fair Isaac says: In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than carrying no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not raise your score. debt collection solution

• How Much of Mortgage or Other Installment Loans Are Paid Off

  How much was the original loan amount, and how much have you paid off so far Fair Isaac says: Paying down installment loans is a good sign that you are able and willing to manage debt responsibly. debt relief services

• How long have specific credit accounts been established

• How long has it been since you used certain accounts

Factor 3: Length of Credit History-The Longer, The Better (15%)

Fair Isaac breaks this category down accordingly: debt recovery solution llc

• Overall Length of Credit History (In General).

  How many accounts, how long superior debt services

Factor 4: How Much New Credit (10%)

This category basically is to flag people who suddenly are seeking new lines of credit, possibly indicating they are about to overextend themselves, or possibly already are getting in over their heads. As Fair Isaac says: Research shows that opening several credit accounts in a short period of time does represent greater risk-especially for people who do not have a long established credit history. debt problem

• How many new accounts, particularly credit card accounts
• How long has it been since you opened a new account
• How many recent requests for credit have you made, as indicated by inquiries to the credit bureaus

  Inquiries remain on your credit report for two years, although FICO scores only consider inquiries from the last 12 months. Fair Isaac emphasizes it only considers inquiries for which you were applying for different kinds of credit, as opposed to the multiple inquiries that might result if you were shopping for the best mortgage rate or car loans. clear debt solution

• Length of time since credit report inquiries were made by lenders.
• Whether you have a good recent credit history, following past payment problems.

  This is a biggie for people hoping to re-establish their credit by making payments on time after a period of late payment behavior to help raise a score over time. debt help services

Factor 5: Type Of Credit (10%)

Fair Isaac refers to this as measuring whether you have a healthy mix of installment (mortgages and loans) and revolving credit (credit cards). It s not entirely clear what s healthy and what isn t. Loans from banks are considered positive, while finance company loans are not. credit debt

Inquiries Fair Isaac s Clarification

At one point in the 1990s, many people believed that inquiries to their credit report caused their credit scores to drop. Some felt they were being responsible consumers by shopping for the best mortgage rate. But the multiple appli-cations prompted a flurry of inquiries, making it appear that the consumer was trying to buy the whole neighborhood, not just one house. debt solution uk

If you are not yet entitled to a free report from the centralized source, or if you ve already used yours up, then you need to order reports directly from the Big Three CRAs. Make sure you review all of the reasons that you are entitled to free additional reports (they re listed after the contact information). For instance, if you live in one of seven states granting you a right to annual free report from each CRA, then you can monitor your reports throughout the year without paying. consolidation debt loan

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The CRAs have changed the toll-free number from time to time. Here are the toll-free phone numbers, ⁵³ mailing addresses and Web sites for ordering your report directly the three major repositories, and the separate numbers and addresses for reporting fraud: Equifax - www.equifax.com To order your report, call: 800-685-1111 or write: P.O. Box 740241, Atlanta, GA 30374-0241 debt advice

To report fraud, call: 800-525-6285 and write: Hearing Impaired: 1-800-255-0056, ask operator to call 1-800-685-1111 to request a copy of your report. Experian - www.experian.com To order your report, call: 888-EXPERIAN (397-3742) or write: P.O. Box 2002, Allen TX 75013 To report fraud, call: 888-EXPERIAN (397-3742) and write: P.O. Box 9530, Allen TX 75013 TDD: 1-800-972-0322 Trans Union - www.transunion.com affordable debt solution

To order your report, call: 800-888-4213 or write: P.O. Box 1000, Chester, PA 19022 To report fraud, call: 800-680-7289 and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634 TDD: 1-877-553-7803 Additional Rights To Free Reports Here are the other reasons that consumers are entitled to free reports in addition to their annual free report under the FACT Act. debt consolidation counseling

• You ve been turned down for credit or insurance or otherwise experience an unfavorable change (known as an adverse action ) in the terms of your credit or insurance in the past 60 days. eliminate credit card debt

• You are a victim of identity theft or have reason to believe that inaccurate data are in your credit report because of fraud. debt solution international

• You are unemployed and intend to apply for employment in the next 60 days. consumer debt services

• If you are on public welfare assistance. unsecured debt consolidation

• If an adverse decision related to your employment has been made based in whole or in part on information contained in the report. approved debt government

• If your report has been revised based upon an investigation you requested. best consolidation debt

• You live in a state with a free credit report law: Colorado, Maine, Massachusetts, Maryland, New Jersey, or Vermont, and Georgia (Georgians are entitled to two free reports per year). debt recovery

After Free Reports Used Up: $9

If you ve already obtained all of the free reports to which you are entitled, then the federally-regulated price for buying an additional credit report is $9.50⁵⁴. Prior to the FACT Act, these states capped the prices accordingly: Minnesota ($3); Connecticut ($5); Calif. ($8), and Montana ($8.50)⁵⁵. counseling debt management

It s generally easy to order your credit report directly from the Big Three CRAs. If your address matches the one they have on file, you can order over their toll-free numbers by following the push-button prompts. Their Web sites ask you the same type of authentication questions as does www.annualcreditreport.com. If you order your report by mail, your request must include your name, address, SSN, and copies of a driver s license and current utility bill. credit and debt counseling

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The price is set by the statute, the FCRA, 15 U.S.C. Sect. 1681, and by FTC regulations. ⁵⁵ A complete listing of state prices can be found at http://annualcreditreport.transunion.com/pdf/DisclosureRequest.pdf Extra! Extra! Credit Scores Not Included As mentioned before, the FACT Act did not mandate free credit scores. It only required that CRAs charge a fair and reasonable price for them⁵⁶. When the Centralized Source launched, Equifax charged $6.95 for a FICO score; Trans Union charged $4.95 for a True Credit score; Experian charged $5. debt problem solution

One of the only ways to get a free score was to sign up for a 30-day trial at Experian s Web site entitling you to a PLUS score. Remember, the PLUS score is not a FICO score, and could vary significantly. Even the FICO score you get from Equifax can differ from the score ultimately used by a lender to whom you have applied for credit. Moreover, if you don t cancel before the 30-day trial, Experian will charge your credit card for an annual subscription. If cost is your priority, then these subscription services are probably not the best deal. total debt services

Credit Monitoring and Other Web Site Services

It should be no surprise that the three major CRAs try to push the monitoring services. After all, they ve discovered it s a great way to make money. This is a major shift, as the CRA traditionally looked at consumers as an added cost of doing business⁵⁷, and only made money by selling credit reports and other data to businesses. Starting in 2001, all three CRAs said that the direct sale of credit reports and credit scores had taken off nicely. ⁵⁸ One analyst said CRA direct-to-consumer sales would reach roughly $600 million in 2002 and could easily reach $1 billion by 2005. In September 2002 Experian s Consumer Direct websites had 9.79 million unique visitors, Equifax had 922, 000 hits, Trans Union 523, 000, and TrueCredit 239, 000.⁵⁹ debt consolidation uk

Both Equifax and Experian offered 30-day free trials for their monitoring services, but only Experian included a PLUS credit score. This meant it was one of the few places you could obtain a credit scores for free - provided that you remembered to cancel your subscription before the 30-day trial period ended. PrivacyGuard offered a two-month trial for $1 that included ongoing access to all three reports, and FICO scores from all three CRAs. If you forgot to cancel, your credit card was billed $12.95 per month for a year.⁶⁰ debt solution of america

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