credit consultancy

Thursday, September 3, 2015

Fair Credit Reporting Act

Sec. 1681. Congressional findings and statement of purpose

(a) The Congress makes the following findings:

The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.
An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.
Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.
There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy.

(b) It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title.

Sec. 1681a. Definitions; rules of construction

(a) Definitions and rules of construction set forth in this section are applicable for the purposes of this title.

(b) The term “person” means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.

(d) The term “consumer report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under section 604. The term does not include (A) any report containing information solely as to transactions or experiences between the consumer and the person making the report; (B) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or (C) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made and such person makes the disclosures to the consumer required under section 615.

(e) The term “investigative consumer report” means a consumer report or portion thereof in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.

(f) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

(g) The term “file,” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

(h) The term “employment purposes” when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.

(i) The term “medical information” means information or records obtained, with the consent of the individual to whom it relates, from licensed physicians or medical practitioners, hospitals, clinics, or other medical or medically related facilities.

Sec. 1681b. Permissible purposes of consumer reports

(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe–

(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or

(B) intends to use the information for employment purposes; or

(D) intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or

(E) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.

Sec. 1681c. Reporting of obsolete information prohibited

(a) Except as authorized under subsection (b), no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) cases under title 11 of the United States Code or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Suits and judgments which, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

(5) Records of arrest, indictment, or conviction of crime which, from date of disposition, release, or parole, antedate the report by more than seven years.

(6) Any other adverse item of information which antedates the report by more than seven years.

(b) The provisions of subsection (a) are not applicable in the case of any consumer credit report to be used in connection with–

(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $ 50,000 or more;

(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $ 50,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $ 20,000, or more.

Sec. 1681d. Disclosure of investigative consumer reports

(a) Disclosure of fact of preparation. A person may not procure or cause to be prepared an investigative consumer report on any consumer unless–

(1) it is clearly and accurately disclosed to the consumer that an investigative consumer report including information as to his character, general reputation, personal characteristics and mode of living, whichever are applicable, may be made, and such disclosure (A) is made in a writing mailed, or otherwise delivered, to the consumer, not later than three days after the date on which the report was first requested, and (B) includes a statement informing the consumer of his right to request the additional disclosures provided for under subsection (b) of this section; or

(2) the report is to be used for employment purposes for which the consumer has not specifically applied.

(b) Disclosure on request of nature and scope of investigation. Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a) (1), shall make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later.

(c) Limitation on liability upon showing of reasonable procedures for compliance with provisions. No person may be held liable for any violation of subsection (a) or (b) of this section if he shows by a preponderance of the evidence that at the time of the violation he maintained reasonable procedures to assure compliance with subsection (a) or (b).

Sec. 1681e. Compliance procedures

(a) Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 605 and to limit the furnishing of consumer reports to the purposes listed under section 604 . These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. Every consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a purpose listed in section 604 .

(b) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

Sec. 1681f. Disclosures to governmental agencies

Notwithstanding the provisions of section 604, a consumer reporting agency may furnish identifying information respecting any consumer, limited to his name, address, former addresses, places of employment, or former places of employment, to a governmental agency.

Sec. 1681g. Disclosures to consumers

(a) Every consumer reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer:

(1) The nature and substance of all information (except medical information) in its files on the consumer at the time of the request.

(2) The sources of the information; except that the sources of information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed: Provided, That in the event an action is brought under this title, such sources shall be available to the plaintiff under appropriate discovery procedures in the court in which the action is brought.

(3) The recipients of any consumer report on the consumer which it has furnished–

(A) for employment purposes within the two-year period preceding the request, and

(B) for any other purpose within the six-month period preceding the request.

(b) The requirements of subsection (a) respecting the disclosure of sources of information and the recipients of consumer reports do not apply to information received or consumer reports furnished prior to the effective date of this title except to the extent that the matter involved is contained in the files of the consumer reporting agency on that date.

Sec. 1681h. Conditions of disclosure to consumers

(a) Times and notice. A consumer reporting agency shall make the disclosures required under section 609 during normal business hours and on reasonable notice.

(b) Identification of consumer. The disclosures required under section 609 shall be made to the consumer–

(1) in person if he appears in person and furnishes proper identification; or

(2) by telephone if he has made a written request, with proper identification, for telephone disclosure and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer.

(c) Trained personnel. Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant to section 609.

(d) Persons accompanying consumer. The consumer shall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer’s file in such person’s presence.

(e) Limitation of liability. Except as provided in sections 616 and 617 , no consumer may bring any action or proceeding in thenature of defamation, invasion of privacy, or negligence with respect to the reporting of information against any consumer reporting agency, any user of information, or any person who furnishes information to a consumer reporting agency, based on information disclosed pursuant to section 609, 610, or 615, except as to false information furnished with malice or willful intent to injure such consumer.

Sec. 1681i. Procedure in case of disputed accuracy

(a) Dispute; reinvestigation. If the completeness or accuracy of any item of information contained in his file is disputed by a consumer, and such dispute is directly conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant. If after such reinvestigation such information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information. The presence of contradictory information in the consumer’s file does not in and of itself constitute reasonable grounds for believing the dispute is frivolous or irrelevant.

(b) Statement of dispute. If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit such statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.

(c) Notification of consumer dispute in subsequent consumer reports. Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary thereof.

(d) Notification of deletion of disputed information. Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the port for any item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer re other purpose, which contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his rights to make such a request. Such disclosure shall be made at or prior to the time the information is deleted or the consumer’s statement regarding the disputed information is received.

Sec. 1681j. Charges for disclosures

A consumer reporting agency shall make all disclosures pursuant to section 609 and furnish all consumer reports pursuant to section 611(d) without charge to the consumer if, within thirty days after receipt by such consumer of a notification pursuant to section 615 or notification from a debt collection agency affiliated with such consumer reporting agency stating that the consumer’s credit rating may be or has been adversely affected, the consumer makes a request under section 609 or 611(d) . Otherwise, the consumer reporting agency may impose a reasonable charge on the consumer for making disclosure to such consumer pursuant to section 609 , the charge for which shall be indicated to the consumer prior to making disclosure; and for furnishing notifications, statements, summaries, or codifications to person designated by the consumer pursuant to section 611(d), the charge for which shall be indicated to the consumer prior to furnishing such information and shall not exceed the charge that the consumer reporting agency would impose on each designated recipient for a consumer report except that no charge may be made for notifying such persons of the deletion of information which is found to be inaccurate or which can no longer be verified.

Sec. 1681k. Public record information for employment purposes

A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment shall–

(1) at the time such public record information is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom such information is being reported; or

(2) maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.

Sec. 1681l. Restrictions on investigative consumer reports

Whenever a consumer reporting agency prepares an investigative consumer report, no adverse information in the consumer report (other than information which is a matter of public record) may be included in a subsequent consumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.

Sec. 1681m. Requirements on users of consumer reports

(a) Adverse action based on reports of consumer reporting agencies. Whenever credit or insurance for personal, family, or household purposes, or employment involving a consumer is denied or the charge for such credit or insurance is increased either wholly or partly because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall so advise the consumer against whom such adverse action has been taken and supply the name and address of the consumer reporting agency making the report.

(b) Adverse action based on reports of persons other than consumer reporting agencies. Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time, upon the consumer’s written request for the reasons for such adverse action received within sixty days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.

(c) Reasonable procedures to assure compliance. No person shall be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b).

Sec. 1681n. Civil liability for willful noncompliance

Any consumer reporting agency or user of information which willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of–

(1) any actual damages sustained by the consumer as a result of the failure;

(2) such amount of punitive damages as the court may allow; and

(3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.

Sec. 1681o. Civil liability for negligent noncompliance

Any consumer reporting agency or user of information which is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of–
(1) any actual damages sustained by the consumer as a result of the failure;

(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.

Sec. 1681p. Jurisdiction of courts; limitation of actions

An action to enforce any liability created under this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within two years from the date on which the liability arises, except that where a defendant has materially and willfully misrepresented any information required under this title to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant’s liability to that individual under this title, the action may be brought at any time within two years after discovery by the individual of the misrepresentation.

Sec. 1681q. Obtaining information under false pretenses

Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined not more than $ 5,000 or imprisoned not more than one year, or both.

Sec. 1681r. Unauthorized disclosures by officers or employees

Any officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency’s files to a person not authorized to receive that information shall be fined not more than $ 5,000 or imprisoned not more than one year, or both.

Sec. 1681s. Administrative enforcement

(a) Federal Trade Commission; powers. Compliance with the requirements imposed under this title shall be enforced under the Federal Trade Commission Act by the Federal Trade Commission with respect to consumer reporting agencies and all other persons subject thereto, except to the extent that enforcement of the requirements imposed under this title is specifically committed to some other government agency under subsection (b) hereof. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act, a violation of any requirement or prohibition imposed under this title shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal Trade Commission Act and shall be subject to enforcement by the Federal Trade Commission under section 5(b) thereof with respect to any consumer reporting agency or person subject to enforcement by the Federal Trade Commission pursuant to this subsection, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act. The Federal Trade Commission shall have such procedural, investigative, and enforcement powers, including the power to issue procedural rules in enforcing compliance with the requirements imposed under this title and to require the filing of reports, the production of documents, and the appearance of witnesses as though the applicable terms and conditions of the Federal Trade Commission Act were part of this title. Any person violating any of the provisions of this title shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act as though the applicable terms and provisions thereof were part of this title.

(b) Other administrative bodies. Compliance with the requirements imposed under this title with respect to consumer reporting agencies and persons who use consumer reports from such agencies shall be enforced under–

(1) section 8 of the Federal Deposit Insurance Act, in the case of–

(A) national banks, and Federal branches and Federal agencies of foreign banks, by the Office of the Comptroller of the Currency;

(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25(a)of the Federal Reserve Act , by the Board of Governors of the Federal Reserve System; and

(C) banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System) and insured State branches of foreign banks, by the Board of Directors of the Federal Deposit Insurance Corporation.

(2) section 8 of the Federal Deposit Insurance Act, by the Director of the Office of Thrift Supervision, in the case of a savings association the deposits of which are insured by the Federal Deposit Insurance Corporation;

(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union;

(4) the Acts to regulate commerce, by the Interstate Commerce Commission with respect to any common carrier subject to those Acts;

(5) the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or foreign air carrier subject to that Act ; and

(6) the Packers and Stockyards Act, 1921(except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act.

The terms used in paragraph (1) that are not defined in this title or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).

(c) Enforcement under other authority. For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any other authority conferred on it by law.

Sec. 1681t. Relation to State laws

This title does not annul, alter, affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to the collection, distribution, or use of any information on consumers, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency.

Fair Debt Collection Practice Act

Section 801 Short Title

This title may be cited as the “Fair Debt Collection Practice Act.”

Section 802 Findings and Purpose

(a) There is an abundant evidence of the user’s abusive, deceptive, and unfair debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to martial instability, to the loss of jobs, and to invasions of privacy. (b) Existing laws and procedures for redressing these inquiries are inadequate to protect consumers. (c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts. (d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce. (e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

Section 803 Definitions

As used in this title- (1) The term “Commission” means the Federal Trade Commission. (2) The term “communication” means the conveying of information regarding a debt directly or indirectly to any person through any medium. (3) The term “consumer” means any natural person obligated or allegedly obligated to pay any debt. (4) The term “creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another. (5) The term “debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment. (6) The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails on any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (G) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(G), such term also includes any person who uses any instrumentality of interstate commerce or the mails on any business the principal purpose of which is the enforcement for security interest. The term does not include- (A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor; (B) any person while acting as a debt collector for another person, both of who are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for the persons to whom it is to related or affiliated and if the principal business of such person is not the collection of debts; (C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties; (D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt; (E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; (F) any attorney-at-law collecting a debt as an attorney on behalf of and in the name of a client; and (G) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (I) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such a person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such a person as a secured party in commercial credit transaction involving the creditor. (7) The term “location information” means a consumer’s place of abode and his telephone number at such place, or his place of employment (8) The term “State” means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing.

Section 804 Acquisition of Location Information

Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall – (1) indemnify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer; (2) not state that such consumer owes any debts; (3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information; (4) not communicate by postcard; (5) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection of a debt; and (6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney’s name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to communicate with the debt collector.

Section 805 Communication with Debt Collection

(a) Communication with the consumer generally, without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer with the collection for any debt- (1) At any unusual item or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge or circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8am and before 9pm, local time at the consumer’s location; (2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain such attorney’s address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or (3) at the consumer’s place of employment if the debt collector knows or has reason to know that the consumer’s employer prohibits the consumer from receiving such communication. (b) Communication with third parties. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post-judgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any other person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector. (c) Ceasing communication. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except- (1) to advise the consumer that the debt collector’s further efforts are being terminated; (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specific remedy. (d) For the purpose of this selection, the term “consumer” includes the consumer’s spouse, parent (if the consumer is a minor), guardian, executor, or administrator.

Section 806 Harassment or Abuse

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of the section: (1) The use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person. (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or the reader. (3) The publication of a list of customers who allegedly refuse to pay debts, except a consumer reporting agency or to persons meeting the requirements of section 803(f) or 804(3) of this Act. (4) The advertisement for sale of any debt to coerce payment of the debt. (5) Causing a telephone to ring or engaging in any telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. (6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure to the caller’s identity.

Section 807 False of Misleading Representation

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof. (2) The false representation of- (A) the character amount, or legal status of any debt, or (B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of debt. (3) The false representation or implication that any individual is an attorney or that any communication is from an attorney. (4) The representation or implication that nonpayment of any debt with result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. (5) The threat to take any action that cannot legally be taken or that is not intended to be taken. (6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to- (A) lose any claim or defense to payment of the debt; or (B) become subject to any practices prohibited by this title (7) The false representation or implication that the consumer committed any crime or any conduct in order to disgrace the consumer. (8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. (9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized issued, or approved by any court, official, or agency of the United States or any State, or which create a false impression as to its source, authorization, or approval. (10) The use of any false representation or deceptive means to collect, or attempt to collect, any debt or to obtain information concerning a consumer. (11) Except as otherwise provided for communication to acquire location information under section 804, failure to disclose clearly in all communications made to collect a debt or to obtain information about a consumer, that debt collector is attempting to collect a debt and that any information obtained will be used for that purpose. (12) The false representation or implication that accounts have been turned over to innocent purchasers for value. (13) The false representation or implication the documents are legal process. (14) The use of any business, company, or organization name other than the true name of the debt collector’s business, company, or any other organization. (15) The false representation or implication that documents are not legal process forms or do not require action by the consumer. (16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.

Section 808 Unfair Practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of the section: (1) The collection of any amount including any interest, fee, charge, or expense incidental to the expressly authorized by the agreement creating the debt or permitted by law. (2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector’s intent to deposit such a check or instrument not more than ten nor less than three business days prior to such deposit. (3) The solicitation by a debt collector of any postdated check or other postdated payment instrument purpose of threatening or instituting criminal prosecution. (4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. (5) Causing charges to be made to any person for communications by the concealment of the true purpose of the communication. Such charges include, but are no limited to, collect telephone calls or telegram fees. (6) Talking or threatening to take any non-judicial action to effect dispossession or disablement of the property if- (A) there is no present right to the property claimed as collateral through an enforceable security interest; (B) there is no present limitation to take possession of the property; or (C) The property is exempt by law from such dispossession or disablement. (7) Communicating with a consumer regarding a debt by postcard. (8) Using any language or symbol, other than the debt collector’s address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is the debt collection business.

Section 809 Validation of Debts

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication, or the consumer has paid the debt, send the consumer a written notice containing- (1) the amount of the debt; (2) the name of the creditor to whom it is owed; (3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector. (4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer by debt collector; and (5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. (b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification or judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or the name and address of the original creditor, is mailed by the consumer by the debt collector. (c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

Section 810 Multiple Debts

If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer, and, where applicable, shall not apply such payment in accordance with the consumer’s directions.

Section 811 Legal Actions by Debt Collectors

(a) Any debt collector who brings any legal action on a debt against any consumer shall- (1) in case of any action to enforce an interest in real property securing the consumer’s obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or (2) in case of an action not described in paragraph (1), bring such action only in a judicial district or similar length entity- (A) in which such consumer signed the contract sued upon; or (B) in which such consumer resides at the commencement of the action. (b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors.

Section 812 Furnishing Certain Deceptive Forms

(a) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when the fact is such person is not so participating. (b) Any person who violated this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 for failure to comply with a provision of this title.

How Credit Reports Works

Build My Scores utilizes a multiple phase audit process to have the inaccurate items removed from your credit reports. There are Federal and State laws in place to protect the consumer from inaccurate and unverifiable credit reporting. We assist you in enforcing these laws by implementing our strategy.

Credit Repair Services

Thorough research and investigation of credit and collection agencies information, inquires, public records, and source of information.

Carefully audit the Credit bureaus; Equifax, Experian, and TransUnion

Reinvestigate the credit bureaus and ask for method of their investigation.

Validation of Debt Audits, demanding creditors/collection companies produce original documentation.

Revised Validation of Debt to the collection agencies as needed.

Offer of Performance Audits to the collection agencies.

Omission by Silence packets back to Bureaus supplying all audits to the collection agencies/ creditors and failure to comply.

Estoppel letters and FTC complaints to those who do not comply with audits.

We utilize Delivery Confirmation mail when auditing the creditors and collection agencies to create a paper trail of documented proof.

We don’t just write letters or dispute online with the credit bureaus. We do validations of debt and audit the creditors directly. We professionally audit the creditors and collection agencies using over 400 different custom letters. We continue to create new custom letters. We don’t use form letters like most credit repair companies. We tailor it to your needs. Our intense audit demands validation and verification of derogatory information using the:

Fair Debt Collection Practices Act

Fair Credit Reporting Act

Fair and Accurate Credit Transaction Act

Health Insurance Portability and Accountability Act

These four Federal laws have been established to protect consumers’ credit reports. Creditors and credit bureaus are legally obligated to produce documented evidence within a reasonable amount of time, generally 30 days, to prove the information they are reporting. If they cannot validate their claims, they must promptly remove any undocumented information from the consumer’s credit report.

Source

Contact Us Today To Fix Your Credit Score!

Self Credit Repair

Do you check your credit reports regularly? Credit reports are your credit references, as reported by your lenders. And, unfortunately, some lenders may accidentally report inaccurate information about your payment history. This is why it’s important for everyone to monitor their credit reports regularly and to dispute any information that is inaccurate. Today we wanted to show you a complete guide to do-it-yourself credit repair.

If you ever need to fix your credit report, here are the steps to take (and online apps you need) to get your credit report updated quickly – without paying hundreds or thousands of dollars to “credit repair” clinics.

Step 1: Request your free credit report from each credit bureau

The Fair and Accurate Credit Transactions Act (FACTA) entitles you to one free credit report each year from Experian, Equifax, and TransUnion and you can get this through AnnualCreditReport.com or by calling 1-877-322-8228.

In addition, you may request a free report directly from the credit reporting companies in certain circumstances. “Under the Fair Credit Reporting Act, consumers who receive public assistance, are unemployed (and seeking employment), or believe their credit report contains fraudulent data, are also entitled to a free report,” says Maxine Sweet, Vice President of Public Education at Experian.

Request your free credit report from each bureau

CREDIT TIP: You can keep a close eye on the credit activity that is being reported for you simply by requesting a free credit report every four months. For example, get your Experian Report in January, Equifax in May, and TransUnion in September.

Step 2: Audit your credit reports carefully

“Remember that credit report information comes from the companies who have accounts with you. The goal is not just to fix your credit report, but to make sure that your information is correct with the source so that it will be reported correctly to everyone who checks your credit references. Reviewing your credit report can help you discover and resolve those inaccuracies,” says Sweet.

Each credit report differs in how information is presented, but here’s a breakdown of what you’ll typically find:

Personal Identification (addresses, employment history, name, social security number)

Types of Accounts (revolving, installment, loans, joint accounts, credit limits, debts)

Collections (if any accounts went to collections)

Public Records (about financial obligations)

Consumer Statement (such as a statement of dispute if you do not agree with your lender about the status of your account)

Hard Credit Inquiries (showing you applied for new credit or services)

Soft Credit Inquiries (showing requests made by lenders who sent you an offer or that you requested your own report — soft inquiries are shown only to you)

Here’s a sample credit report [pdf] from Experian explaining the different parts of your report:

Audit your credit reports carefully

As you audit your credit report, pay close attention to these areas:

Missed Payments
Your payment history makes up the biggest part of your credit scores, so any past-due amounts or late payments will damage your scores (especially missed mortgage payments). If you have any missed payments on your report that are incorrect, make sure to dispute the inaccuracy because it can make a big impact on your scores. You may need to talk to your lender to find out why your records do not agree about the payment.

Length of Time Using Credit (Depth of Credit)
Many people don’t realize that older credit accounts with good credit history actually help you. It shows you have managed credit well for a significant amount of time. Consider the pros of cons before you close any accounts (if they are tempting you to overspend).

The Variety of Accounts
Having a mix of different credit accounts can help you because it shows you know how to manage different types of credit. Managing a car loan with a fixed monthly payment is very different from managing a credit card where you control the amount you owe and pay each month.

Recent Credit Accounts
If you’ve recently taken out a loan or credit card, you’ll want to make sure it’s appearing on your credit report. New credit accounts can signal risk (and could lower your scores at first), but the added credit mix and consistent payment history will likely improve your scores over time.

Amount of Credit
It’s important to make sure you’re using less than 30% of your available credit on revolving credit accounts. For example, if you have a $10,000 credit limit on a credit card – you never want to carry a balance over $3,000 because it can hurt your credit scores. The lower, the better.

So while auditing your credit report, make sure the credit limit assigned on your revolving accounts are accurate – and the amount owed is under 30% of your credit limit. If not, consider requesting a higher credit limit on that credit card to lower your utilization rate. Even better, pay down your balances so that you are only charging what you can pay in full each month.

CREDIT TIP: If you notice any fraud, you can set a fraud alert right away which cautions lenders to verify your identity before opening any new credit accounts. It’s simple to set-up fraud alerts by using these direct links to Experian, Equifax, and TransUnion. “You can also freeze your credit reports for a small fee to prevent new creditors from accessing your report. However, freezing your credit reports means you will have to temporarily unfreeze them when you need services, which can be inconvenient,” says Sweet.

Step 3: Dispute incorrect data

There is no cost to dispute any items on your credit report. And you can dispute incorrect information in a variety of ways. Always start with a current copy of your credit report. Then, you can call the phone number on your credit report or use one of the following online apps from one of the following credit bureaus:

Experian credit dispute app

Screenshot of the Experian Credit Dispute App

Equifax credit dispute app

Screenshot of the Equifax Credit Dispute App

TransUnion credit dispute app

Screenshot of the TransUnion Credit Dispute App

“In most cases, you only need to ask one credit bureau to dispute an account on your behalf .. If your lender responds to a disputed item with a correction, they are required to report that corrected information to any credit reporting company to which they provide their data,” according to Sweet.

Some people think that disputing information on your credit report can hurt your credit scores, but that is not true. Disputes are not reported in your history and are not scored. Disputing inaccurate information is exactly what you should do to help ensure your credit history is correct. Another myth is that disputing information you believe is inaccurate will cause info to remain longer on your credit. Information is deleted based on the dates of missed payments or when the account was closed, for example.

CREDIT TIP: If you cannot resolve a disputed item with your lender, you may add a “Statement of Dispute” to your credit report explaining why the information is incorrect. The statement you write must be under 100 words, and should address why the info the lender is reporting is incorrect. For example, “Never missed any payments with [Lender Name].” This statement will remain on your report for two years and visible to anyone who has permission to review your report.

Step 4: Wait 30 days for removal or response from creditor

When you dispute an item on your report, the credit bureau will contact the creditor to respond to the dispute. If no response is received within 30-45 days, the credit bureau will remove the account or correct the negative information and notify you of the results. “If you disagree with the results, you may need to contact the creditor directly and provide additional documentation if your records do not agree with theirs,” says Sweet.

CREDIT TIP: If you need additional help with debt or your credit, avoid going to a “credit repair clinic,” which could cost you hundreds (if not thousands) of dollars. Instead, seek out an accredited non-profit credit counseling agency. And, if you know of a great non-profit credit counseling agency, please share in the comments.

Step 5: Request a new credit report from each credit agency

After an item is corrected with one credit reporting company, wait three or four weeks before requesting a fresh credit report from the other credit bureaus. You want to give the creditor some time to report the corrected data. Getting a fresh report will ensure that the item has been removed or updated. You may also choose to purchase a credit score to see if your risk level has improved.

A Perfect Credit Score – Is it worth?

A Perfect Credit Score:

Your credit score can mean the distinction between being declined or accepted for credit and a high or low interest rate. A good score can help you to be eligible for a residence lease and even help you to get resources linked without a deposit.

What is it?

Your credit score contains a 3-digit number produced by statistical criteria using details in your credit score. It is developed to predict threat, particularly, the possibility that you will become seriously delinquent on your credit responsibilities in the 2 years after scoring.

There’re several different credit-scoring models present, but there is one that rules the market: the FICO credit score. As per the myFICO.com statement, the customer site for the FICO score developer, “90 % of all banking organizations in the U.S. use FICO scoring in their decision-making procedure.”

FICO score varied from 300-850, where a greater variety indicates reduced threat. A customer has 3 FICO scores, one for each credit report offered by the 3 significant credit bureaus: Experian, TransUnion and Equifax. Regrettably, customers presently have access to only their TransUnion and Equifax FICO scores. Experian ended its contract with myFICO.com during 2009.

If your objective is to enhance your score to the level where you specify for the best interest rates, financial perks, offers, and advantages, 760 is your miracle number.

In an excellent piece at LearnVest, Jacqui Kenyon explains her own pursuit to enhance her credit score, regularly verifying it, remodelling her investing and saving habits every time she discovered new guidelines or discovered a little more about the strange magical arithmetic FICO uses to figure out it. She was attempting for a perfect 850, but easily discovered that there’s really little point:

Anthony Sprauve, director of PR at FICO, states, “If you have a FICO score above 760 then you are going to get the best rates and possibilities”, the statistics organization whose credit score ratings are most frequently used to figure out a borrower’s stability. “While it’s awesome to draw a bead on, you really do not need to,” he says.

Bingham stated that a perfect 850 may not even be possible.

“The maximum I have ever seen was an 847,” says Bingham, who monitored 1,500 credit scores for many decades while exploring scoring techniques. Sprauve says that when FICO investigates credit scores, they do so in variety, so even if someone did have an 850, they would never even see it.

So the significance of the story is that while there is nothing incorrect with trying to increase your credit score specifically if you are in a place where your previous investing habits or old financial debt have left your credit a little missing, the best advantages of a higher score come around 760, and it’s a much more obtainable number than 850. Sure, greater scoring get the best rates on credit cards, loans, financing and more, but you do not need to pursuit excellence to be able to obtain those advantages.

Don’t forget that your score is measured in variety, so if something happens to make your score fall from 760, your advantages may fall down a level. Still, enhancing your score is beneficial, but it’s nothing to get stuck over. As we have described, the people with the best scores are the ones who perspective credit as a device they’ve management over, not a power they have to fight.

Friday, July 31, 2015

WAYS TO AUDIT YOUR CREDIT REPORTS

Be careful. Not all websites that provide credit reports and scores are forthright in their offerings. While it’s factual that upon sign up you’ll get your 3 bureau credit reports for free, fine print for quite a lot of these products will consist of automatic enrollment into their trial credit monitoring programs. Most of these free trials run for either 1 week or a month, then your visa or master card will be charged for continuation of the service.

top credit monitoring service

If someone purchases an automobile in your name, commits a crime in your business and law enforcement come and arrest you, is Lifelock going to receive out of jail?

Finally, crucial to call your local police department. If you beloved this article and you simply would like to obtain more info pertaining to top credit monitoring service nicely visit our web page. Give them your regarding items were being in your wallet. Possibly that your wallet will not be recovered, but you will want to have an accurate record of when your wallet was taken the was associated with it. There have been instances where cardholders are required to provide this info. You may get asked to gone down and sign a police report, so be to be able to do therefore asked.

There are ways to boost the entire process of protecting yourself after the theft of the credit note cards. A credit card master list is a helpful tool in remembering exactly how it is you carry in your wallet. It’s keep copies of linkedin profile each credit card you carry in your wallet, but additionally your personal identifications and other cards. Keep these copies in a good place, preferably a safety deposit box. If your wallet is stolen, you can readily retrieve these documents and build your required messages or calls.

Next, observing want collection your sights on apply for auto lender. In preparation for that, have one (or all three) of similar to credit monitoring agencies pull credit score report. Then, peruse it carefully, line by line, while trying to find any errors or blunders. If you find any, write a formal letter of protest to your respective agency and make it fixed.

You are just like doubt short on funds, but any cash you get together in your down payment will build up your odds even more. Even offering only a few hundred dollars as a symptom of good faith can display your lender than own every aim of sharing danger of of this vehicle loan with these folks.

Before passing along Credit Card info or any private information over the web, you should definitely are using SSL. Totally . know this when services URL starts off with HTTPS:// as opposed to HTTP://. If you might be not sure, call the technical support department to be sure the transaction are usually safe.

Why should you repair your credit regularly?

Your credit score is a crucial aspect of your financial profile – it provides information about your eligibility to qualify for a mortgage, credit card, job, rental home, business loan and vehicle. Surprisingly, many of us remain oblivious of our credit score until we are denied a mortgage, quoted a high interest rate on an auto loan or disqualified from our dream job.

This is why you need to keep a close check on your credit report. It is essential to be aware of your credit score and learn how to improve it. Federal laws entitle you to check your credit report for free from any of the major credit bureaus (Equifax, TransUnion and Experian), once a year. You are also eligible to request an additional report if you are denied credit.

Credit Score vs. Credit Report

Credit Score

Your credit score, also known as Fair Isaac Corporation (FICO) score, is a three digit number that shows your creditworthiness. Ranging from 300 to 850, your credit score helps lenders to determine your ability to repay credit; in this regard, the primary score issued by FICO is considered to be the most accurate assessment. In addition, the credit score issued by each of the three major credit bureaus may have some disparity.

Credit Report

A credit report, on the other hand, contains your credit history and helps in analyzing the components that determine your credit score. It is suggested that you regularly check your credit report in order to identify any discrepancy and get it rectified at the earliest. Errors in your credit report may happen frequently and can wreck your credit score.

Tips to Monitor your Credit Report

Examine your Credit Score

The main rule of thumb is to check your credit report from the credit bureaus, at least once every four months. For instance, you can check Experian in January, TransUnion in May and Equifax in September. The bottom line is to keep a regular check on your credit report in order to detect any discrepancy, at the earliest. Check the accuracy of all credit information available in your credit report, verify your payment history, account numbers and balances, ensuring there are no errors or discrepancies.

Compare Reports

Compare the information that is provided by each of the credit reporting bureaus. It might happen that all the creditors may not report their information to all three bureaus. Hence why the information provided by each of them may differ.

Take a smart approach and responsibly use your credit. Proactive monitoring of your credit report is an effective solution to keep your finances in control and achieve your financial goals.