The Coalition Against Payday Predators (CAPP) recently posted about major banks enabling payday loans to continue. A new poll of North Carolina residents found that 72% of respondents said they would be less likely to vote for a lawmaker who supports a bill that would allow payday lending in North Carolina.

Coalition Against Payday Predators

According to the New York Times, “Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.

While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.”

http://www.nytimes.com/2013/02/24/business/major-banks-aid-in-payday-loans-banned-by-states.html?_r=0

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Consumers should also have access to their credit scores for FREE, considering how important the score can be in determining your cost/access to loans, employment decisions, and whether or not you can rent an apartment. Rebuilding your credit after a foreclosure or short sale? Read our earlier blog: https://foreclosurehelpscc.wordpress.com/2012/09/07/rebuilding-credit-after-a-foreclosure-or-short-sale/

Consumerist

While the three major credit bureaus each allow you to access your credit report once a year at no charge through annualcreditreport.com, getting your actual credit score will likely cost you some money.

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New Report: 1 in 10 Consumers Have Incorrect Credit Score

FTC Finds High Number of errors in credit reports

By Sean Coffey, Program Manager, Foreclosure Help

The Federal Trade Commission released a report today (focused on credit report errors at the three large credit reporting agencies (Experian, Equifax, and Transunion) and found significant mistakes, with one in ten consumers reporting a change in their credit score AFTER they contacted the agency to dispute inaccurate information.

Regular readers of our blog may recall that the Consumer Financial Protection Bureau also released a report  (Analysis of Differences between Consumer- and Creditor-Purchased Credit Scores) with a similar focus in September 2012, which found that one in five consumers would see a different score than their lenders.   See our blog on the topic here: “1 in 5 consumers receive a different credit score than their lender”

In the most recent report by the Federal Trade Commission, (Report to Congress
Under Section 319 of the Fair and Accurate Credit Transactions Act of 2003) the researchers found:

  • 25% of consumers identified errors on their credit reports, potentially affecting their credit scores;
  • 20% of consumers had their errors corrected by at least one of the agencies after the consumer disputed it;
  • About 1 out of 20 consumers saw their credit score change more than 25 points, while 1 in 250 customers saw a credit score change of more than 100 points.

We’re glad to see that the Consumer Financial Protection Bureau is now overseeing credit reporting agencies.  The consumers who were interviewed last night on 60 Minutes (40 Million Mistakes: Is your credit report accurate?) had some pretty harrowing tales about trying to correct their credit reports, with some choosing to hire attorneys because the process was so slow/unsuccessful when they attempted to contact the credit reporting agencies.

You may find our previous blog postings helpful:

If you are struggling with foreclosure in San Jose or Sunnyvale, please give us a call. The sooner you pick up the phone, the sooner we can help, and the earlier you start in the process, the more options you will have to create a plan forward.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.

Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.

Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

How Can the Consumer Financial Projection Bureau Assist You With Credit Reporting Issues? Our Blog Explains How.

Consumer Financial Protection BureauBy JoAnn Parrott, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

WHAT IS THE CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)?

In July 2010, Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Part of this Act created the CFPB which consolidates most Federal consumer financial protection authority into one place.  The services of the CFPG became effective on October 22, 2012.  The goal of the CFPB is:  watch out for American consumers in the market for consumer financial products and services.

HOW CAN THE CFPB HELP YOU WITH CREDIT REPORT PROBLEMS?

The CFPB can help with:

  1. Consumer reporting agency’s investigations,
  2. Incorrect credit report information,
  3. Improper use of a credit report,
  4. Assistance to get a copy of a credit score or report, and
  5. Problems with credit monitoring or identify protection services.

WHAT DO YOU NEED TO DO?

This step is covered under the Fair Credit Reporting Act (FCRA).  If you are experiencing any problems with your credit report, you should first of all send a letter to the credit bureau in question stating the complaint or error that needs to be addressed or resolved.  You must include copies of supporting documents as well as your complete name and address, and your letter should clearly identify each item in dispute.  You must request that the information be removed or corrected.  Send the letter by certified mail, ‘return receipt requested,’ so you can document that the credit bureau received the letter.

TIP:  Include a copy of the credit report with the error highlighted or circled and keep a copy of the letter and supporting documents.

If the credit bureau deems your complaint as legitimate, they have 30 days to investigate.  They must also forward the information you provide about the inaccuracy to the organization that provided the information.  The information provider must investigate, review the relevant information, and report the results back to the credit bureau.  If the information provider finds the disputed information is inaccurate, it must notify all the credit bureaus so they can correct the information they have in your file.

When the investigation is complete, the credit bureau must give you the results in writing and a free copy of your report if the dispute results in a change to your credit report.  This free credit report does not count as your annual free report.  If an item is changed or deleted, the credit bureau cannot put the disputed information back in your file unless the information provider verifies it is accurate and complete.  The credit bureau also must send you written notice that includes the name, address, and phone number of the information provider.

If you wish, you can request that the credit bureau send notices of any corrections to anyone who received your credit report in the past six months.  You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

If the investigation doesn’t resolve your dispute or problem, you can ask that a statement of the dispute be included in your file and in future reports.  You also can ask the credit bureau to provide your statement to anyone who received a copy of your report in the recent past.  You can expect to pay a fee for this service.

A credit bureau can report negative but correct information for seven years and bankruptcy information for 10 years.  There is no time limit for reporting criminal conviction; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.  In general the seven-year reporting period runs from the date that the event took place.

WHAT IF THE PROBLEM IS NOT FIXED?

If the problem is not resolved, you can:

  1. Contact the CFPB at 1-855-411-2372 or TTY/TDD 1-855-729-2372;
  2. File a complaint with the CFPB at  http://www.consumerfinance.gov/blog/headline-now-accepting-credit-reporting-complaints/ ;
  3. Send a letter to Consumer Financial Protection Bureau, P. O. Box 4503, Iowa City, Iowa 52244.

You may also enjoy reading our previous blog post, “Rebuilding Credit After a Short Sale”  en español:  “Mejorando El Credito Despues De Una Ejecución De Hipoteca O Venta Corta”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293 -6000, o visite nuestro sitio: www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Lee nuestros otros blogs en ​​español:

¿Por Qué Trabajar Con Un Consejero de Casa?

5 Programas importante para los propietarios de California