Many Credit Repair Organizations communicate only with the bureaus. While this can be effective, often times it requires a bit more deliberate and pointed approach to get resolution. In this circumstance, we communicated with the bureaus and found there to be discrepancies between what each bureau was reporting in terms of a late payment on one of our client's tradelines.
In this case, we gathered the responses, thanks to our wonderful client who uploaded them, and issued these responses to the creditor asking for an explanation as to why the information was different.
The client just got this response back.
First off, my apologies for the lack of recent posts. Typically the holidays represent a time when we can catch up on things, as folks have a tendency to take a pause when it comes to their credit.
I don't know if it's the elections, the warm(er) weather, or simply an anomoly in the country, but the haitus we've expected didn't come; and it's been all hands on deck for the last few weeks.
And we are just about to enter into the 'busy season'...
However, all that aside, I piece of news came across today. The much anticipated rate increase. That's right, the feds have increased the key interest rate by 25 basis points. What does this mean?? Well, it means that the economy is improving, or at least our friends at the federal reserve think so. Such may not be the case in your part of the world, and in our part of the world, we are in a bit of a recession due to the oil industry pulling out of a lot of segments due to several factors; most of which is the price of a barrel of oil.
Regardless, I am writing this largely because we receive several phone calls weekly by both clients and folks who just have questions, because they are concerned about the much anticipated rate increase. Typically, I ask them...
'what is the amount of house you are considering buying..?'
Most respond in the neighborhood of $250,000.00.
So, for the purposes of this excersize, let's view the circumstances through that scope.
The current rate according to google is around say.. 3.92%:
So we are currently looking at a payment of $1,182.00 for a 30 year mortgage at a rate of 3.92%
Now, when the new rate of 4.17% takes effect, that payment will change:
Now, please, understand, I am not advocating the idea of passing on a great oppurtunity to save a bit of money and get that mortgage locked in now. No question, considering over the term of the loan, that equals an additional $13,000.00 in interest. However, I do think it's valuable to understand that there really isn't a need to panic. A difference of $36.00 monthly is something that can be compensated for simply by say... going to Starbucks a few less times a month.
The point is; mathmatics is our friend. And I think; I hope, after reading this, you may be comforted by the fact that the increase in lending rates isn't the end of the world. Certainly; higher interest does result in us paying more for stuff, and that's really no fun, but big picture? I think if we were really savvy, we could absorb this, and the next interest rate increase simply by tightening our monthly budget.
Yes, you want to take advantage of low interest rates
Yes, you want to pay less for stuff
A 25 basis point increase, when we are talking about the lowest rates we've seen in several decades? Not a big deal. Truly.
There are other ways to save a dollar a day.
I for one have decided to use cheaper meat from the market for lunches for the office.
Don't tell anyone though.
wanted to share this with you. A clear cut example of a violation of the Statute of Limitations.
By our friends at Experian. It is rare they are this blatant. Typically they will re-age the account. However, in this case, it's pretty straight forward, by their own admission.
In short, we have a response, from them stating the account is slated to be removed in September:
So, pretty clear right? 'This account is scheduled to continue on record until sepr 2016...'
Another 'error' by the bureaus... That's ok folks, we will keep you posted on this one and update you after we've worked on the account.
A little advanced credit reporting 101 here.
We get this question asked a lot:
Can a creditor continue to report a charged off account every month?? And, if so, doesn't this hurt my credit because it looks like it just happened??
Here's the answer, and my apologies if it's a bit complicated.
Basically, a creditor can report 'CO' every month, so long as it is in fact a 'Charged Off' Account. However, what they cannot do, is update the 'Date Major Delinquency 1st Reported', which is in effect the date of the charge off.
If the creditor does not update that date, then the Charge Off does not appear as new, hence the credit will not be more adversely effected, aside from the general fact, that it is a charge off account.
However, if that date is renewed, which happens, then it appears as though the account was more recently charged off, hence the credit scores will in fact be more negatively effected than if the date was not changed.
What does all this mean?? It means, if you are engaged in credit repair, either on your own, or working with a credit repair organization, you need to be reviewing those responses.
The devil is in the details gang, and if you aren't reading those responses, or if the Credit Repair Organization is not reading the responses, you aren't being as effective at reviewing the credit as you can/need to be.
If not, call us.
Greetings Creditphiles - (that's a new word)
I present to you today another deletion from our friend at Stellar Recovery, which begs the question, their 'recovery' isn't so 'stellar' after all.
In this particular case, we have an account that was purchased by Stellar, aka 'debt buyer', and then pursued by both phone calls, as well as inclusion on the credit report.
Prior, mind you, to the account being verified.
See folks, here's the deal, I as a creditor, can report what ever I want to the bureaus, and the bureaus will happily place it on your report (for a fee mind you).
It isn't until I as a consumer say... 'hey, what a minute, what is this??' that the bureau/creditor/collectino agency has to then provide justification for the information; whether it be a late payment, a charged off credit card, a lien, or in this case, a collection account.
So, per the request of our client, we did exactly that, and lo and behold, we find that Stellar Recovery can't prove the account and has in fact sold it back to Comcast.
No apologies by the way. No... 'hey sorry for jacking up your credit, and causing you to pay 12% interest on that car...', nothing like that. No closure, no regret... just 'we have requested deletion to all credit reporting agencies for the account.
To add insult to injury, I am willing to bet, this client will bring a debt validation letter from another collection agency who recently bought it, in oh, about two months. I give it two months before Comcast sells this again.
Kind of sad isn't it??
Be well friends,
You may have stumbled across this page because you are wanting to learn more about the prospects of credit repair and if so, welcome!
We get a lot of call from folks from all over the country. Many of whom would like us to start investigating their credit to determine the accuracy of their tradelines.
That is after all, one of the main functions of what we do. However, is there a good time, or a bad time to work on the credit.
Yes, there is actually.
Scott, Edie and Myself believe we have a responsibility to people that call in, and have us review their files and sometimes, while those credit report contain clear errors and we believe we can help them, it still may not be wise to move forward. Below I will list a few circumstances we've run into where it may be worth reconsidering credit repair at this time.
As opposed to listing every scenario we have run into and why we discouraged credit repair for a particular individual, I think it would be more helpful to be positive and review the profile of someone who is typically very successful with us.
In short, you need to be ready. When we get calls from folks saying...'it's time I address this'; or 'I went through a rough period a few years back, but now I am back on my feet'... these are the indicators we look for when chatting with folks.
You need to be financially stable. You need to be willing to address the information and reconcile it if necessary; if it will help us achieve our goals.
Credit repair is a extremely rewarding and educational process!!! Be optimistic! Understand it is very cathartic.
If you are ready to learn about this world and engage your credit then let's do it together!
If now is not the right time, we completely understand. A partnership never works when both parties are in stride the whole way.
Oh, and have a good weekend. Do something fun for yourself on Labor Day.
You deserve it!
This one is going to be a bit of 'stream of consciousness' writing; so hopefully it will make sense in the end.
On the minds of many American's (mine too) is the economy.
The older I get, the less I care about peanut butter and jelly sandwiches, Tom and Jerry (yes, I am older), and whether or not that Alien Autopsy thing was real, and the more I care about the state of our economy.
Being directly involved in so many folk's lives causes us here to be concerned not only for our own welfare, but also, the welfare of our people in Texas, or Florida, or New York and California. Well, everywhere, really.
What this means is that Scott, Edie and I pay attention to what is going on. We have long ago transitioned from thinking about FCRA violations, FDCPA violations, Debt Validation Letters, and so on, to providing as much advice to our clients as they seem to need. When you develop a relationship with someone, even though it is professional, you realize you want to provide them with as much help as possible.
We are to the point now, after 6 years, to where we are giving advice on when to refinance your vehicle and with whom (there is a point where it doesn't make sense to refi your car...); whether getting another mortgage makes sense, how best to ask for a HELOC; whether or not a client should qualify for a loan, etc...
The three of us benefit from different backgrounds in finance, business, credit, merchant processing, auto sales, insurance, social media marketing etc. So while we are here mostly for the purpose of helping folks improve their credit, if we have insight into other areas that may assist or improve the lives of our clients, why not help?
Last week, I was on an hour call with a teenager and her mother talking about how to avoid bad credit and how important it is to make good financial decisions.
The week before that, the three of us were talking with a local client on how best to install a tile back splash.
what I am getting at here, is good relationships often times tend to bleed into many areas of life. While credit may be the initial reason, we accrue relationships with our clients that extend well beyond credit.
I enjoy it, and I think our clients enjoy it too. It's nice to have someone to bounce things off of.
And we have the chance to talk to folks in almost all 50 states. This means we can check the pulse of the country, in terms of trends, hiring, consumer confidence, housing prices, job trends, etc.
It's a fellowship of information if you will.
Ed-Jack Dvorak is National Affiliate Liaison at Credit Dr., a national credit restoration company. He works with clients and creditors to improve credit profiles.