It Isn't Fair Pt. 2

Last week we discussed some of the issues and rights under the Fair Credit Reporting Act. Now, we can continue the discussion.

Below is an expert from a little booklet called Making the Most of Your Credit Report: Your personal guide. This booklet is put out by Kroll Background America, Inc. who is the largest backround investigation company in America. They also are one of the leading credit repositories used in providing Tri-merge credit reports for mortgage lenders, credit card companies and auto lenders.

It is critical in understanding our credit, what our rights are regarding the reporting of our credit history. Please take the time to review this information to gain more understanding as you learn to manage your credit more efficiently.

Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. Keep in mind that any verified information the consumer reporting agency verifies as correct may continue to be reported.

Consumer reporting agencies may not report outdated negative information. In most cases, 7 years is the maximum amount of time for consumer credit tradelines. Some Bankruptcies may continue on the report for up to 10 years.

Access to your file is limited. A consumer reporting agency may provide information about you only to people who have a valid need. These needs include applications with creditors, insurance requests, landlords or other business. Under the FCRA, verification of the specific need is required for access.

You must give your consent for reports to be provided to employers. A consumer reporting agency is restricted from giving out any information about you to an employer or potential employer without written consent from you. The trucking industry is generally exempt from written consent. For more information, go to http://www.ftc.gov/credit.

You may limit "prescreened" offers of credit and insurance you get based on information in your credit report. Unsolicited "prescreened" offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt out with the nationwide credit bureaus at 1-888-5 Optout (1-888-567-8688).

You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.

Identity theft victims and active duty military personnel have additional rights. For more information, visit http://ftc.gov/credit.

There is a lot to know about understanding your rights under the Fair Credit Reporting Act. However, you should never feel overwhelmed if you have a trusted advisor you work with who knows the information or can access it very easily.

If you would like to discuss this more, you're more than welcome to contact me at jchristensen@legacymortgagenm.com.

Shopping? Protect Your Identity

Well the holiday shopping season is upon us once again. This is the time of year when we are thinking about the people we love most. What in the world are we going to get for each of them. Some are easy and some are so incredibly hard to shop for. Don't worry, there is still plenty of time and plenty of ways to get your shopping done.

Please keep in mind that this is also the time of year when Identity Thieves are out looking for their latest victims. While you're out doing your shopping this year, please keep in mind some very simple things to protect yourself and your identity.

1. Your Trash is NOT Garbage... To these ID thieves, trash is a treasure chest of vital information that many unsuspecting people throw away. Be careful to shred your unwanted mail and solicitations that may have your vital information like social security numbers, birthdays, name spelling, address, and phone numbers. It doesn't take much for an ID thief to become a new person. Treat your Trash like a Treasure and this will thwart many thieves. To opt out of receiving pre-screened offers of credit in the mail, call 1-888-5-OPT-OUT (1-888-567-8688). You will be asked to provide your Social Security Number, which the consumer reporting companies need to match you with your file.

2. Mail outgoing bills and parcels in Post Office collection boxes...make sure to remove your mail from your mail box promptly so thieves don't riffle through looking for a new ID. If you're planning on being away during the Holidays, contact the Postal Service at 1-800-275-8777 or online at http://www.usps.gov to request a vacation hold. The Post Office will hold your mail at the local office until you can pick it up or are home to receive it.

3. Be on guard using the Internet to do your shopping...Every year, more and more people are using the internet for their Holiday shopping to avoid the crowds at the malls and to save themselves time. The internet also never closes, so shop til you drop in your PJ's if that's your joy. However, be aware of the scammers and ID thieves lurking on the net. For some practical tips to protect your personal information, visit http://www.OnGuardOnlinve.gov.

4. Be aware while at the Register...While you are out shopping, more and more of the stores now allow a quick swipe of credit and debit cards at the register. Be aware of wandering eyes that may be watching for a PIN entry. Also, keep alert to cashiers who may be acting funny as they process your transaction. If you suspect any kind of strange activity, report it immediately to the store manager.

5. Protect your wallet and purses...Many of us carry large wallets and purses with us while out shopping. In those wallets and purses are the very items many thieves are looking for. Consider leaving the wallet or purse in the car or at home when entering a store. Secure only the cash, ID, and/or credit card in your pocket while shopping to make it more difficult for a thief to swipe your entire ID vessel of choice.

6. Identity Theft Insurance...ID Theft Insurance will not deter a thief, however, it can in many circumstances minimize any loss associated with ID Theft. Things to consider when looking into ID Theft Insurance are 1) the amount of coverage the policy provides, 2) whether it covers lost wages, 3) the amount of deductible, if any, 4) any exclusions to the policy (is the thief a family member), 5) does the policy provide a counselor to help resolve the problems of id theft, and 6) Does your homeowner's policy already contain some provision for ID Theft (if so, how much will your premiums be affected if used. The biggest "cost" of ID theft is the time you will spend cleaning up your credit and recovering your identity.

Personally, I spent 4.5 years cleaning up my credit and my wife's credit after a box of checks was stolen from our home in 1998. It nearly cost us approval on our first home. 36 checks, 135 collection accounts, $39.95 for credit reports every 4 months for 4.5 years, and a day in court to convict the thief later we got it all cleaned up.

Consider an Identity Theft protection like Identity Theft Shield, which will do all the work for you when a theft occurs. I wish I had this when I went through the mess. For only $12.95 per month, they take the worry out of clean up. http://www.prepaidlegal.com/hub/christensenj

Have a safe Holiday Season!