How to Dispute Errors in Your Credit Report

January 2, 2015 by Eric Stephenson

Credit report errors are far too common. Indeed, studies suggest that as many as 25 percent of credit reports could contain serious errors. The most common errors are identity errors, incorrect account information, and fraudulent accounts. There are certainly many other kinds of errors but these are the most prevalent.

Identity Errors

Identity errors occur when the credit bureaus or creditors inadvertently report someone else’s payment history, names, addresses, or other information on your credit reports. Mostly this happens when your name, Social Security Number, or address is similar to someone else. These identity errors are common among family members with the same or similar names.

Incorrect Account Details

Sometimes the lenders, creditors, and debt collectors provide incorrect information about your accounts to the credit bureaus. Other times, the credit bureaus incorrectly process the information provided. These errors could be seriously reducing your credit scores in some cases. For example, an incorrect credit limit or balance could impact your credit utilization ratio. Similarly, if a credit card or other account is showing the opening date incorrectly, the age of that account could lower your score unfairly. In more extreme cases, you could have a fully paid account showing as delinquent which would lower your score.

Fraudulent Accounts

Fraudulent accounts can be one of the most serious errors in your credit reports. These accounts can drastically impact your credit utilization ratio, average age of your accounts, and can trigger abusive or unfair debt collection actions against you. The emotional impact of identity theft also cannot be overstated. Victims of identity theft often suffer from serious emotional distress due to the invasion of privacy identity theft causes.

Steps to Dispute Credit Report Errors

Step 1. Order Your Free Credit Reports

The first step in disputing credit report errors is to obtain your credit reports. You can get your reports for free once every twelve months from each of the three major bureaus, Equifax, Experian and TransUnion. Be sure to check all three. Each bureau is independent and reports information differently. You cannot assume that an error in one report is also reporting inaccurately in the other two. Check each one to be sure.

You are also entitled to a free report if a company takes adverse action against you based on information in your report. For example, denying your application for credit, insurance, or employment would give you the right to a free report as long as you request this free report within 60 days of receiving notice of the action. The adverse action notice will give you the name, address, and phone number of the credit reporting company so you know which credit bureau reported the information.

If you are unemployed and plan to look for a job within 60 days, on welfare, or if your report is inaccurate because of fraud, including identity theft, you are also entitled to a free report.

Step 2. Dispute Credit Report Errors

The next step is to tell the credit bureaus, in writing, what information is reporting inaccurately, why you dispute the information, and what you want the credit bureau to do with the incorrect listing. Do not use a form letter from the Internet. Write your own letter or hire an experienced credit repair attorney to help you. Sample letters from the Internet are helpful to get you started but copying one directly could get your dispute rejected.

If you have documentation to show why the information is reporting inaccurately, include copies with your dispute. This would include copies of your identity theft affidavit, police reports, proof of your identity, proof of your residency, or an entire identity theft report if applicable to your situation. You may also want to include a copy of your report with the incorrect information highlighted to simplify the dispute process.

Be sure to send your dispute letter by certified mail with a “return receipt requested,” so you can document what the credit reporting company received and when they received it. Keep a detailed file including copies of your dispute letters, their enclosures, and any responses you get back from the credit bureaus.

Once the credit bureau receives your dispute, it must conduct an investigation within 30 days, called a “reinvestigation,” unless it deems your dispute to be frivolous. Then it can reject your dispute. Normally, the reinvestigation consists of the bureau contacting the provider of the information and either verifying, deleting, or updating the information as it deems appropriate. The credit bureau will then report the results of the reinvestigation back to you.

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

If you ask, the credit reporting company must send notices of any corrections to anyone who received your report in the past six months. You can also have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

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

Step 3. Dispute Errors Directly with the Information Provider

If the credit bureaus do not respond appropriately to your dispute, you should send a letter directly to the information provider. As before, do so in writing and send the letter certified mail with a return receipt requested. You should also include copies of important documentation to assist their investigation.

If the provider continues to report the item you disputed to a credit reporting company, it must let the credit reporting company know about your dispute. And if the provider finds your information to be inaccurate or incomplete, it must notify the credit reporting agency to either update or delete the item.

Conclusion

If your reports show credit lines that are inaccurate or items are reporting in your name that you did not open you should act immediately. The credit reporting companies and information providers should be responsive to your disputes. Start by obtaining copies of your reports and reviewing them for errors. Next, send dispute letters to the credit reporting agencies and, if needed, to the information providers. Provide them with appropriate documentation to help their reinvestigation efforts and don’t give up if your initial letters are unsuccessful. It sometimes takes multiple dispute attempts to get results. If you are a victim of identity theft, start your dispute efforts by putting a fraud alert on your reports and fill out an identity theft affidavit. Next file a police report and let the credit bureaus and information providers know the account is the result of identity theft. If necessary, hire an experienced identity recovery attorney to assist you. Repairing your credit can be a time-consuming and difficult process. The results of credit reports free from errors, are well worth the effort however. Good credit saves you money. Review your reports for errors and take control of your credit health and financial future.

Identity Theft Debt Collection

November 25, 2014 by Eric Stephenson

Identity theft debt collection causes millions of Americans undue financial and emotional hardship every year. Debt collectors can be ruthless in their efforts to collect debt and are often skeptical and unsympathetic when a consumer claims to be a victim of identity theft. Restoring your credit after your identity is stolen can take time, money, and effort but is not impossible if you are diligent and persistent. If you are a victim of identity theft, here are a few basic but critical steps you can take to repair your stolen credit.

Set Initial Fraud Alerts

Contact at least one major credit bureau (Experian, Equifax, or TransUnion) and set an initial fraud alert. The initial fraud alert is only good for 90 days but can stop identity theft from continuing while you take the next steps. You actually only need to contact one credit bureau as the credit bureaus are required to report the initial fraud alert to the other bureaus, but to be sure the initial fraud alert is set you may want to contact more than one bureau. It is free to set initial fraud alerts.

Pull Your Credit Reports

Once you have set the initial fraud alert, pull a copy of your credit reports. Identity theft victims can get the credit reports for free and it doesn’t hurt your credit score to pull your own credit report so don’t hesitate to pull it. There might be other identity theft debts on your reports so you need to check each of them before moving on to the next steps.

File an Identity Theft Report with the Police

Be sure to also quickly report the identity theft to the police and file a police report. Provide law enforcement as much information as possible and maintain a copy of your identity theft law enforcement report. The report should also contain the name of the officer that took the report and a case number. You will be expected to sign the identity theft report under oath and penalty of perjury so be sure all the information you provide is accurate or you could be held criminally responsible.

Complete an Identity Theft Affidavit

The FTC has an identity theft affidavit that most creditors and debt collectors will honor. Some require their own forms but if those forms request information different from the FTC identity theft affidavit, check with a credit attorney to be sure you don’t waive any rights by using that form. In most cases, the FTC identity theft affidavit is the appropriate form to use. Be sure to have the FTC identity theft affidavit notarized. Most creditors and debt collectors require notarization before they will accept it.

Dispute the Identity Theft Debt

Your next step is to dispute the identity theft debt in writing. Don’t just call the debt collector or creditor. You need a paper trail to show that you informed them the debt was the result of identity theft. Include a copy of your police report and FTC identity theft affidavit with your dispute letter. Once the debt collector or creditor knows the debt is the result of identity theft they must stop collecting it. If they do not, they will be in violation of several state and federal debt collection and credit reporting laws.

Dispute the Credit Listing of the Identity Theft Debt

Many debt collectors and creditors will report the identity theft debt to the credit bureaus. If so, the debt will usually lower your credit score unfairly. Debt that results from identity theft should not count against your credit score or factor into determining your creditworthiness. Send the major credit bureaus (Experian, Equifax, and TransUnion) a dispute letter explaining that the debt is the result of identity theft. Include a copy of your FTC identity theft affidavit and police report with your credit bureau dispute letters for best results.

Set Extended Fraud Alerts

Once you have your police report and FTC identity theft affidavit, you should contact the credit bureaus and set an extended fraud alert. The extended fraud alert is similar to the initial fraud alert but lasts for seven years so it provides you additional protection from identity theft for a longer period of time.

Pull Your Credit Reports

You should pull your credit reports periodically to be sure no other identity theft debts appear later. Even with the initial fraud alerts and extended fraud alerts, some identity theft can still occur, though it is relatively rare. Pull your credit reports every three to six months for at least the first year to be sure no other instances of identity theft have occurred. If you do find additional identity theft debt in these periodic reviews, you will have to walk through each of these steps again to repair your credit and stop the collections.

Conclusion

Identity theft debt can be stressful and difficult to repair but following these steps is an effective way to repair your credit and stop collections of the identity theft debt.

Used Car Buying Tips

February 12, 2014 by Eric Stephenson

Bill Gephardt posted an article on KSL warning consumers of the dangers of buying a used car.

Gephardt’s warning arises mostly because Utah has no lemon law that applies to the purchase of a used car. Buyer beware is the watchword. Gephardt is right that if you purchase a used car and its engine explodes five minutes later, you are usually stuck. There are car dealers that will repair such damage when it occurs so close after the purchase, but most won’t so don’t count on it.

What can you do to protect yourself when buying a used car? Here are a few tips:

Research Used Cars

Your first step when purchasing a used car is to research your available options. Consumer Reports is a good place to start. Consumer Reports publishes a Used Car Buying Guide every year and it will help you quickly pinpoint which cars are historically reliable and which cars are less reliable. Don’t let your unreasonable desires for a particular car convince you to buy one that has spotty reliability. You will regret it. Poor reliability costs you more than just increased costs for repairs. Periodic maintenance is more expensive and most, but not all, historically unreliable cars suffer from poor resale value as well. You lose money every step of the way if you buy an unreliable car.

Research Used Car Values

After you have narrowed your used car search down to a few options, go online at check the values of the cars. Kelly Blue Book and Edmunds are two excellent ways to compare cars and check current pricing. I particularly like Edmunds’ True Market Value (TMV) page. It allows a real-world comparison of all the costs of used car ownership. With TMV you can see just how much that dream car is really going to cost you over the years. It is eye opening to say the least.

Research the Local Used Car Market

Once you have decided on a particular make and model to buy start looking on the Internet and local newspapers to get an idea of what is available and where the original asking prices are set. Don’t use this to determine value or the price you should pay however. Sellers are notoriously unreasonable in their advertised prices because they expect to haggle down. Many of the ads are also scams. Browsing the ads however is crucial to understanding what else is available and may lead you to the perfect used car.

Have an Inspection Performed

Once you find the car you want, drive it, closely inspect it yourself, and have it inspected professionally by an independent mechanic. I cannot stress this enough. No matter how good the car looks, runs, and feels, it may have hidden problems that can only be revealed by taking off the wheels, checking the compression, checking the electrical system, and performing dozens of other inspections that you cannot do without the proper equipment and tools. Get an inspection! If the seller won’t let you take the car for a few hours to do one, RUN away from the deal. They are hiding something.

Get Everything in Writing

When you are ready to make your purchase keep in mind that you will probably be buying the used car on an “as-is” basis. That means once you sign for it anything that goes wrong is yours to fix. If the seller makes any specific claims of recent work, reliability, or dependability get those claims in writing. If you don’t and he lied, his claims are very difficult, if not impossible, to prove in court. Get everything in writing.

Extra Used Car Purchasing Tips

There are other tips you should also follow to get the best deal. For example, when buying a used car from a dealer always obtain outside financing from your bank or credit union before going to the dealership. Don’t discuss financing until the price of the car is set and don’t take financing from the dealer unless you want to overpay for both.

Failing to come prepared with prearranged financing can also subject you to a common car dealer scam known as a yo-yo sale. In yo-yo sales, unscrupulous car dealers let you take the car home before the financing is finalized. They wait a few weeks and then call with a demand for you to either sign more expensive financing arrangements or return the car. You lose money no matter which option you select and in many cases, you also lose your trade-in vehicle.

You should also never give your trade-in to the dealer without a spare set of keys on hand. A well-known dealer trick is to keep you captive by pretending to lose your keys when you want to walk away from a bad deal. Bring the extra set and don’t play that game.

Perhaps my best advice to follow when buying a used car is to always be willing to walk away from the negotiating table. If the seller is being unreasonable, walking away is the best way to bring him back to reality. Never fall in love with a particular car so much that it clouds your judgment. If you do, the seller will make you pay more.

Conclusion

Hopefully these tips will help you next time you purchase a used car. Be cautious and walk away if anything seems wrong. Do your homework, bring outside financing, and get an inspection for the best deal on a used car.

Is a Collection Agency Threatening to Arrest You?

February 3, 2014 by Eric Stephenson

Is a collection agency threatening to arrest you or charge you with a crime? Although it is illegal to do so, many debt collectors use false threats of criminal prosecution or arrest to scare consumers into paying debt. Under these threats many consumers end up paying debt that they do not owe, even when they know they don’t owe the debt. Fear is a powerful tool.

Don’t Panic

If a debt collector is threatening to arrest you or to charge you with a crime there are several steps you should take to protect yourself. First, realize that the collection agency is generally lying to you when they threaten to arrest you or charge you with a crime. There are a few circumstances in which you could be criminally responsible for fraud, identity theft, or other similar crimes, but in the vast majority of debt collection cases, those circumstances will not apply. Calm down and think it through. If you are in doubt call an attorney immediately to see if you are in any real danger of being charged with a crime or arrested. In most cases the collection agency is lying to you when they threaten to have you arrested or charged with a crime.

Don’t Pay

Do not pay a collection agency just because they are threatening to arrest you or charge you criminally. Similarly, and just as important, don’t promise to pay either. Find out first if the debt is actually yours, still within the statute of limitations, and has not yet been fully paid. Many collectors collect on debts that consumers do not legally have to pay. Find out first. When a collector is threatening to arrest you or charge you with a crime it is usually because they can’t get you to pay any other way. Call a lawyer before paying when these threats are being made.

Take Detailed Collection Notes

It is also important for you to detailed notes of every threat including the date and time of the call, the name of the company calling you, the name of the person calling you, and the details of everything they say. Don’t record the calls unless you are absolutely certain that it is legal to record calls in your state and the state in which the caller is located. Some states prohibit recording calls without the consent of both parties and your detailed notes are sufficient proof in most cases.

Tell the Collection Agency to Stop the Calls

You should also tell the collection agency to stop the calls and that you do not give consent to call you. If the debt collector is calling your cell phone, you should tell them it is a cell phone and to stop calling. Follow up by sending the collection agency a letter telling it to stop calling and that it is calling your cell phone without your permission. Keep a copy of the letter and get proof the collection agency received it by sending the letter by certified mail.

Get Legal Help

Another important step to take when a collection agency is threatening to arrest you or charge you with a crime is to call a consumer rights attorney. A good attorney can stop the calls, stop the collection agencies from threatening to arrest you or charge you with a crime, and can even obtain monetary damages on your behalf in many cases.

Don’t Fear Collection Threats

One of the most egregious consumer rights violations occurs when a collection agency threatens to arrest you. The threat of arrest or criminal prosecution for failing to pay a debt is a powerful tool in a debt collector’s arsenal. Don’t be afraid, don’t panic, and don’t make a payment until you call a consumer rights lawyer who can guide you through the threats and help you understand your legal rights in these situations.

Remove Your Phone Number to Stop the Calls

January 29, 2014 by Eric Stephenson

Don’t Press 1 to Remove Your Phone Number

Some telemarketers use robodialers and automated messages to sell their services. Con artists use the same technology. Either way, anytime you pick up the phone and a recorded voice tells you to “press 1 to remove your phone number” do not press any buttons. If you press 1 or any other buttons for that matter, the telemarketer or con artist will ADD your number to a call-more-frequently list. No kidding. They won’t remove your phone number but will actually call you more often because now they know they have connected to a live person with a good telephone number. Press 1 to remove your phone number is a lie. The telephone sales companies won’t just call more frequently however. They will also sell and share your number to other annoying telemarketers and scam artists.

Hang Up to Stop the Calls

Your best protection from telemarketers and con artists is to hang up the phone. The last thing you want to do is press any buttons. Don’t let a telemarketer or scam artist know they have connected to a working phone number. Hang up.

Stop Telemarketing Calls

Despite my advice to hang up on certain scam calls you should not hang up on telemarketing calls from reputable telemarketing companies. A reputable company is one that will accurately identify itself on your caller ID and will tell you who they are. When such a telemarketing company calls the best way to stop the calls is to ask to be placed on its internal do not call list. Tell them they are calling a cell phone if true and ask them to remove your phone number and stop calling. Take detailed notes of who you spoke with, what was said, what number they were calling from, and take a picture of the caller ID for each and every call. If they call you more than a dozen times after you tell them to stop, contact a consumer protection attorney. A good attorney can stop the calls from legitimate telemarketers pretty fast.

Stop Debt Collection Calls

My advice to hang up on scam calls and annoying sales calls from unknown companies also doesn’t apply to debt collection calls. Debt collection calls need to be handled more directly. Especially if they are calling more than two or three times per week.

One way to stop debt collection calls is to tell the collection agency to stop calling and that you refuse to pay. Under the Fair Debt Collection Practices Act they have to stop calling when you do. They might sue you however, so talk to a consumer rights attorney before taking such a drastic step. If they keep calling after you tell them to stop, track the details of each call and keep the same detailed records as you would with a telemarketer.

Don’t Stop Debt Collection Calls

In many cases you may want to let debt collectors call you. Track every call as discussed above, however. Take detailed notes, caller ID pictures, and keep track of every call. If the debt collector is abusive, the information you gather now will be evidence against them later. In many cases you should record abusive telephone calls with collection agencies but contact an attorney to assist and advise you first. Recording telephone calls is illegal in many states and punishable as a crime. Don’t record a call unless you are 100% certain that it is legal to do so in both your state and the caller’s state.

Remove Your Phone Number, Maybe

There are times you want to remove your phone number from a telemarketing list but never push a button to do so. Tell the caller to stop the calls and keep detailed records for later use in court if they won’t stop the calls. Of course, if a company calls you more than a dozen times after you tell it to stop, contact a consumer protection attorney for assistance.

Mortgage Investors Corporation Telemarketing Harassment

January 24, 2014 by Eric Stephenson

If Mortgage Investors Corporation is harassing you with repeated unwanted telemarketing calls you are not alone. Many consumers complain about abusive and harassing telemarketing practices by Mortgage Investors Corporation (MIC). Here are my recommendations to stop the calls.

Telephone Consumer Protection Act

Federal law protects you from telemarketing harassment by Mortgage Investors Corporation and other telemarketers. Under the Telephone Consumer Protection Act (TCPA) telemarketers can be liable to you for between $500 and $1500 per call if it calls after you tell it to stop calling. Don’t sue these companies on your own, however. Hire a consumer protection attorney for these cases. Yes, you can take a Mortgage Investors Corporation lawsuit to small claims court but you will almost certainly get better results hiring a consumer protection attorney and taking a Mortgage Investors Corporation lawsuit to federal court.

Stop Mortgage Investors Corporation Telemarketing Harassment

Before you file any lawsuits you should first try to resolve the problem with Mortgage Investors Corporation (MIC) by telling it to stop harassing you with repeated telemarketing calls. Most companies honor these requests and if MIC doesn’t you should then begin tracking each subsequent call. Take notes of each and every call including the date, time, caller, and what you said to each other. Take pictures or screenshots of the caller ID for each call. You will need these pictures if a lawsuit against Mortgage Investors Corporation ever becomes necessary.

Do Not Call Registry

If you haven’t done so already, place your telephone number on the federal do not call list. This will help stop many calls from other telemarketers and may help stop the calls from Mortgage Investors.

Telemarketing Harassment Lawsuits

If you tell Mortgage Investors Corporation to stop calling you and it doesn’t stop, call an experienced consumer protection attorney. If you have a dozen or more calls most consumer rights lawyers will take your case on a contingency basis so you won’t have to pay anything unless you win or settle your case. Complaints about Mortgage Investors Corporation and its abusive telemarketing strategies are all over the Internet. Don’t be a victim of these practices. A lawsuit stops the calls but an online complaint does not.

If Mortgage Investors Corporation is harassing you with dozens of unwanted telemarketing calls, please contact us now for a free case evaluation. We can stop the calls from MIC.

Scam Telephone Calls

December 9, 2013 by Eric Stephenson

It seems that no matter what we do we just can’t prevent all scam telephone calls. Placing your number on the do-not-call list and keeping your telephone number unlisted are old techniques that just don’t work as well as they used to. Telemarketing scams are everywhere and everyone with a phone eventually gets them. The good news is that most calls can be stopped. The bad news is that many scam telephone calls will always be an issue.

Who Called Me

The biggest problem with scam telephone calls is not knowing who is calling. Caller ID information can, and usually is, faked. Callers perpetrating these scams are trained to lie about where and who they are. And telephone numbers are routed through fake or complicit companies making the numbers very difficult to track to their real source.

To compound the problem, telephone companies are not only complicit in allowing these con artists to operate, but in many cases, actively conceal the true identities of these criminals. Indeed, because scam telemarketers pay telephone companies many millions of dollars every year, telephone companies are eager to assist them in ripping off unsuspecting consumers.

FTC Complaints, Attorney General Complaints, and FBI Investigations

The FTC, state attorneys general, and the FBI all advertise ways to file complaints against scam telemarketers. I can’t figure out why, however. These agencies do very little to actually stop scam telemarketing. Sure they occasionally file small lawsuits, pursue minor criminal charges, or take insignificant administrative action against the callers but they rarely, if ever, go after the telephone companies involved in the scams and criminal prosecutions are few and far between. If these agencies were more active we would eventually see a meaningful reduction in scam telephone calls. Cutting off the head of a snake is an effective way to kill it after all.

Telemarketer Lawsuits

For consumers, it is difficult and often impossible to file lawsuits against these scam telemarketers. Identifying the company involved is the key. Once you identify the specific company responsible for calling you illegally you can take legal action but collecting any judgment you get is another barrier you will face. Scam telemarketers are very good at hiding and protecting assets. Yes, these criminals are very rich and they have no problem holding money in offshore accounts, fraudulent companies, and even in the names of spouses or other close relatives. They are also very good at filing bankruptcy and unreasonably encumbering assets to make themselves judgment proof. Legitimate telemarketers like Mortgage Investors Corporation are easier to locate but even they are getting better at escaping accountability for abusive telemarketing practices.

Scam Telephone Calls Conclusion

In a perfect world scam telephone calls would never occur. Unfortunately, our world is far from perfect. Rip-off con artists are getting better at escaping liability for stealing from consumers and they are growing increasingly efficient in doing so. If you are a victim of a scam telephone call, document the calls and contact a consumer law attorney to see if he can help. In many cases a good attorney can track down the source of the calls and seek compensation on your behalf. The FBI, FTC, and state attorneys general can’t effectively stop these calls but, in many cases, you can.

How to Stop Harassment

November 25, 2013 by Eric Stephenson

Consumers often ask me how to stop harassment from debt collectors, collection attorneys, or telemarketers. My answer may surprise you but often I recommend that you don’t stop the calls. In many cases it may be better to sue the abusive companies that to merely stop the calls.

Stop Harassment from Debt Collectors, Collection Agencies, and Collection Attorneys

The simple way to stop harassment from collection calls is to simply ask the debt collector in writing to stop the calls. Under the Fair Debt Collection Practices Act (FDCPA) the collector is then required to stop calling you. Yes, it is that easy to stop collection calls. This applies to any collection agency or collection attorney collecting consumer debt that it obtained from another while that debt was in default. Don’t be hasty, however. It is often preferable to let the calls continue.

One reason you should let collection agencies call you is because if you tell them to stop calling, they might sue you. Being sued is stressful and can result in a bad outcome compared to answering the phone once in a while. Contact an attorney before asking a debt collector to stop calling.

Another circumstance in which you should let collection agencies keep calling you is when you need to sue a debt collector for other abuses. Under the FDCPA you can, and should, sue debt collectors, collection agencies, and collection attorneys when they are abusive, unfair, or treat you in an undignified manner. If such conduct is taking place, allowing the calls to continue while you gather evidence can help bolster your case against the collection agency.

Stop Harassment from Telemarketers

It is easy to stop harassment from most telemarketers. First, put your telephone number on the do not call registry. Not all telemarketing will stop by putting your number on the do not call list but it will certainly help reduce such calls. Next, tell the telemarketer to stop calling and ask for a copy of its do not call policy. Those two steps alone will stop harassment in most cases.

In more extreme situations you may need to sue to stop harassment from telemarketers. In that case your first priority is keep a call log of the date, time, and caller of every call. Answer every telemarketing call and tell the telemarketer to stop calling you and make a note that you did so in your log. Take pictures of the caller ID for every call to later prove who called and what number they called from. You can also compare the caller ID information to call records to determine whether or not the telemarketer altered the caller ID information. You should also get copies of your telephone records to bolster the information from your caller ID pictures and call log.

Conclusion

When consumers ask me how to stop harassment from debt collectors, collection agencies, or collection attorneys my answer is often don’t stop the calls. Instead, use the calls to gather evidence. For telemarketing calls, the same advice rings true. Tell the caller to stop calling but keep good records in case they don’t. In any event, stopping these annoying calls is easy to do in most cases. If the calls don’t stop after your repeated efforts, contact a consumer rights attorney. In many cases, we can stop the calls and make these abusive companies pay you for their harassment and abuse.

Credit Repair Dispute Mistakes

November 11, 2013 by Eric Stephenson

Many credit repair companies fail to understand even the most basic concepts of ethical and legitimate credit repair. For them, credit repair dispute mistakes are common. Unfortunately, even many of the industry leaders lack the knowledge required to ethically and competently repair credit on behalf of consumers.

Ordering Credit Reports

Ordering credit reports is an important component of credit repair. Obviously, without the reports a consumer cannot make an informed assessment of whether or not there is any inaccurate information to dispute. Unfortunately, however, the proper procedure for obtaining credit reports is often grossly misunderstood by many credit repair organizations. Indeed, some credit repair organizations are so ignorant as to the proper method for obtaining credit reports that they actually provide the reports to their clients or even create fake reports based on information provided from other credit bureaus.

The proper method for obtaining a consumer credit report is for the consumer to order the report by mail. The reasons for this are critical yet simple. First, ordering reports from the credit bureaus online requires consumers to waive their consumer rights by agreeing to mandatory arbitration. Doing so essentially precludes consumers from suing the credit bureaus no matter how egregious the legal violations or damages. Mandatory arbitration is the antithesis of true consumer advocacy.

Obtaining reports online from third party sources can sometimes avoid the issue of subjecting the consumer to mandatory arbitration against the credit bureaus but introduces inaccuracies in the reports if you use the wrong source. Indeed, it is common in the industry for third party providers to merge information from different credit reports and some even omit important information. For credit repair purposes, third party credit reports are inherently unreliable and virtually useless if fair credit litigation ever becomes necessary.

Credit Repair Dispute Letters

Credit repair dispute letters are a critical component of competent credit repair. Most credit repair organizations fail miserably in this regard. The reason is focus. Credit repair organizations focus more on repairing credit than in protecting the legal rights of consumers. Accordingly, they send out letters that fail to adequately preserve, and in many cases, actually waive, consumers’ rights.

In addition to waiving the legal rights of consumers, credit dispute letters from credit repair organizations also often misconstrue, misquote, or ignore the legal statutes and precedents that govern credit reporting. Sending a letter that demonstrates a failure to comprehend the law is a clear sign to the credit bureaus, creditors, and debt collectors that they should not take the dispute seriously. Why would they? If the consumer demonstrates a lack of understanding about the applicable legal concepts, that consumer is no real legal threat and can therefore be ignored. This is also another indicator that the credit repair organization is sending generic form letters rather than the well-researched competent authority used by true consumer advocacy attorneys.

Electronic Disputes

Some credit repair organizations actually forgo a written letter altogether choosing instead to send disputes electronically. This is a catastrophic error for several reasons. Primarily, sending the disputes electronically not only waives the consumers’ right to sue the credit bureaus but also often results in failing to provide the credit bureaus information critical to the credit dispute process. A well-written dispute letter should provide the credit bureaus with enough information to actually investigate the dispute. Unfortunately, however, electronic disputes often do not allow consumers to satisfactorily provide the essential details.

Electronic disputes also fail to provide the consumer with adequate proof of exactly what was disputed, when it was disputed, and on what grounds the information was disputed. Written letters avoid this problem altogether. And as any competent consumer advocacy attorney can tell you evidentiary issues are greatly simplified with a written letter as opposed to an electronic dispute.

Reasons for Dispute

Perhaps the most egregious problem with most credit repair organizations is a lack of understanding on what constitutes a proper dispute. For example, it is common for credit repair organizations to dispute certain trade lines on the grounds that the underlying account was supposed to be paid by a divorced spouse. Since divorce decrees are not binding on the credit bureaus, creditors, or debt collectors, arguing that someone else was supposed to pay a debt listed in your name is not, by itself, a proper basis for dispute. The same argument is often also incorrectly used to dispute medical trade lines on the basis that medical bills were supposed to be paid by an insurance company. Disputes formulated on similar misunderstandings of student loan laws, truth-in-lending regulations, the federal tax code, the Fair Debt Collection Practices Act, and the bankruptcy code are also commonly misused by credit repair organizations.

The problem with sending disputes of this nature is threefold. First, the unsupported dispute demonstrates to the credit bureaus a genuine lack of competence on the part of the credit repair organization. The response is typically for the credit bureaus to stall or ignore the dispute. Another problem is that the reason for the dispute is often false. In addition to potentially giving rise to criminal liability under state and federal laws, making any false representation to the credit bureaus is a violation of the Credit Repair Organizations Act (CROA) and can result in an award for substantial damages against the credit repair organization. The third issue that arises when disputing without proper legal support is that doing so can trigger a loss of legal claims and defenses the consumer may have if litigation ever occurs.

Conclusion

Unfortunately, incompetent credit repair organizations are the industry norm not the exception. If you need knowledgeable and ethical credit repair partner, a consumer protection attorney is your only reasonable choice. An ethical and competent credit repair lawyer will protect your interests, preserve your legal rights, and assert only those legal arguments that have merit; a credit repair organization usually won’t.

Debt Collectors Most Common FDCPA Violations

October 14, 2013 by Eric Stephenson

Debt collectors frequently violate the Fair Debt Collection Practices Act (FDCPA) when attempting to collect consumer debts. Here are some of the most of their most common FDCPA violations.

Calling your Cell Phone without Permission

In certain circumstances it is illegal for a debt collector to call your cell phone without your permission. Nonetheless, debt collectors often call consumer cell phones to collect debt. The reason for this common FDCPA violation is twofold. First, calling a consumer on their cell phone is an effective method of contact. Many consumers are hard to reach by any other method and debt collectors normally don’t collect if they cannot communicate with consumers. Second, debt collectors may have, or think they have, permission to call your cell phone.

To stop collection calls to your cell phone answer every collection call and instruct the caller that they are calling a cell phone and do not have your permission to do so. Even if you initially provided the original creditor with your cell phone number, once you tell the collection agency it doesn’t have permission to call they are in violation of the FDCPA and the Telephone Consumer Protection Act (TCPA) if they call again. You should also send a follow-up letter to advise the collection agency in writing that it is calling your cell phone and you do not give any further consent to do so.

Discussing Debt with your Family, Friends, or Employer

Another common FDCPA violation occurs when a debt collector discusses the debt with your family, friends, employer, or any other third party. Under the FDCPA debt collectors may speak only with you or your spouse about the debt. They are allowed to contact one third party to verify or update your contact information but they are strictly prohibited from discussing, or even disclosing the existence of, the debt to that third party. Debt collectors use these illegal third party contacts to effectively embarrass and pressure consumers into paying debt even though doing so is a common FDCPA violation and an invasion of your privacy.

Threatening Arrest or Criminal Charges

Another common but unlawful tactic is for debt collectors to threaten to have consumers arrested or criminally charged for failing to pay a debt. Collection agencies use these threats to bully consumers into paying even when they do not legitimately owe the debt. The fear of arrest, incarceration, or having a criminal record is an illegal, yet powerful collection tool. This common FDCPA violation generates substantial emotional harm to completely innocent consumers in many cases.

Using Profanity, Lies, or False Threats to Collect Debt

Some debt collectors resort to the common FDCPA violation of using lies, false threats, or even profanity to collect debt. Such aggression effectively manipulates consumers into paying the debt in many cases. Others go so far as to file bankruptcy to avoid the extreme stress caused by such antagonism. It is certainly overwhelming to many consumers to have a debt they cannot pay but that stress is needlessly and exponentially compounded when a debt collector is yelling, threatening, swearing, and lying to you.

Calling Consumers at Inconvenient Times

Under the FDCPA debt collectors may not call consumers at times that it knows to be inconvenient. Generally, this includes before 8:00 a.m. and after 9:00 p.m. but also includes any other time the collection agency knows is not convenient. For example, if the debt collector knows when the consumer is driving home from work and purposely calls during that time to catch the consumer in traffic, the debt collector could be found to have violated the FDCPA. Similarly, if a debt collector calls a consumer after the consumer requests all calls to stop, the collection agency would be liable under the FDCPA. To avoid this common FDCPA violation tell the collector when it is inconvenient to call you and send a follow-up letter to assure the matter is memorialized in writing.

Conclusion

Debt collectors commonly violate the FDCPA by abusing, threatening, embarrassing, and coercing consumers into paying debt. Don’t be a victim of these tactics. Take detailed notes of all collection calls including who called you, what they said or did, and what you told them. Send a follow-up letter to further memorialize the call and what took place and save a copy for your records. Once you have gathered evidence of these common FDCPA violations contact an experienced consumer protection attorney as quickly as possible. An experienced lawyer can help stop the calls and any abuse that may be occurring and in many cases can make debt collectors, collection agencies, and collection attorneys pay you damages for that abuse. You do not have to accept any abuse from a debt collector. The law requires collection agencies to treat you with fairness, truth, dignity, and respect.