Wednesday, February 13, 2008
New scoring system
The big 3 have come out with this brand new scoring system called Vantage Point. We'll have to see how this plays out. Be sure, it's not in our advantage, however we still need to research this firm and see exactly what they're up to.
Thursday, February 7, 2008
Amendment of the Fair Debt Collection Practices Act (FDCPA) needed - URGENT!
or at the very minimum enforcement sheesh:
Collectors need to DELETE disputed collections prior to validation
Currently, the FDCPA requires that collectors report a collection as DISPUTED after receiving the consumer's dispute. The dispute notations are IGNORED by FICO scores!
This is a transcript of an actual collector call:
Baker: Christine …. Hello?
Hurd: Yes, Christina please.
Baker: This is Christine.
Hurd: I was calling about your DirecTV account, ma’am, this is Jim, from Focus Receivables, there is a balance of $250 left on your account. We were wondering if you had any intention of paying the bill.
Baker: No.
Hurd: And why is that?
Baker: Because I don’t owe it. As a matter of fact, they owe me money.
Hurd: You don’t think you owe $250 to DirecTV?
Baker: That is correct.
Hurd: Do you know that they are going to place this against your credit as a negative credit rating for $250?
Baker: They will?
Hurd: Yes, ma’am.
Baker: Why would they do that?
Hurd: Because they state that you owe them $250.
Baker: Well …, does that mean that there is nothing I can do about them reporting on my credit until I pay it?
Hurd: Absolutely right.
Baker: That’s right?
Hurd: That’s right. … Why don’t you think you owe it?
Baker: Like I just told you, they owe me money.
Hurd: Why do they owe you, uh, funds, Ms. Baker?
Baker: Well because they were supposed to give me the entire service for free, actually.
Hurd: You may want to call them, because, uhm, they put your account in collection and there is nothing we could do about it, except go against it, you may want to …
Baker: What do you mean by go against it?
Hurd: Make the recommendation for further action to be taken and that will be the legal ramification that was in your DirecTV contract.
Baker: I’m not quite sure what you’re telling me.
Hurd: Ah, there are legal provisions in your DirectTV contract, if you refuse to pay them, that they would take action against you. So they’ve already started that process, placing your account in collections and filing a civil claim against you. So the next step, will be reporting to your credit bureau, ah, agency, that this is a negative account that you refuse to pay and then they will continue to try to extract the funds from you. 13
Baker: And you’re going to do that even though I just told you that I don’t owe them any money?
Hurd: Ah, yes, ma’am. They sent it to us, we didn’t buy the account, we didn’t make this stuff up, DirecTV retained our services to pursue you for the balance of $250.
Baker: And you said something about a legal claim, are you saying they’re going to sue me?
Hurd: I’m not … I don’t know what they’re going to do. I don’t know what the ramifications were in your DirecTV contract.
Baker: Well, that sure is all very strange, and, ah ... have you actually, ah, like, mailed me anything, or are you only making phone calls?
Hurd: Yeah, DirecTV mailed you something for the last three months, we mailed you a letter as well.
Baker: Where did you mail it to?
Hurd: Uhm, to [address redacted.]
Baker: When did that go out?
Hurd: Last month.
Baker: I didn’t receive that.
Hurd: Yeah, I don’t know why, we sent it. That’s why we’re calling you now, because there was no response from the letter that we sent out. So we want to record a statement of intention to find out exactly how you want to handle this, so we know how to proceed against you.
Baker: Now, what’s not quite clear to me is that you’re saying ... when are you going to report that on my credit?
Hurd: This month.
Baker: This month?
Hurd: Yes, ma’am.
Baker: And you’re going to do that even though I’m telling you now that I don’t owe that money?
Hurd: Yes, ma’am.…
Baker: And what is your name please?
Hurd: My name is James Hurd, H – U – R – D is my last name.
Baker: And you work for who?
Hurd: Focus Receivable Management.
Baker: And you are a collection agency?
Hurd: Yes, ma’am. We were retained by DirecTV to pursue you for the balance.
Baker: Ok. All right. Well all I can do is tell you that one, I did not receive your letter … Do you think you could fax me that letter maybe?
Hurd: It’s actually unlawful for us to send it, two letters in a 30 day timeframe.
Baker: Well, like I just told you, I have not received your letter and I would like to get a copy of that letter by fax if possible.
Hurd: If uh, if our records were audited, we would get in trouble for that. 14
Baker: You would get in trouble for sending me a letter that I didn’t receive after I requested it?
Hurd: Yeah, because it’s unlawful to send two letters. We didn’t have a returned mail, so the US post deems that delivered.
Baker: Well, like, I’m just telling you, do you hear me?
Hurd: Yeah.
Baker: I did NOT receive your letter and I’m asking you to fax me a duplicate of that letter.
Hurd: Yeah, it’s just policies and procedures, ma’am.
Baker: Could I speak to your supervisor?
Hurd: Sure …
Un fucking believable.................
Collectors need to DELETE disputed collections prior to validation
Currently, the FDCPA requires that collectors report a collection as DISPUTED after receiving the consumer's dispute. The dispute notations are IGNORED by FICO scores!
This is a transcript of an actual collector call:
Baker: Christine …. Hello?
Hurd: Yes, Christina please.
Baker: This is Christine.
Hurd: I was calling about your DirecTV account, ma’am, this is Jim, from Focus Receivables, there is a balance of $250 left on your account. We were wondering if you had any intention of paying the bill.
Baker: No.
Hurd: And why is that?
Baker: Because I don’t owe it. As a matter of fact, they owe me money.
Hurd: You don’t think you owe $250 to DirecTV?
Baker: That is correct.
Hurd: Do you know that they are going to place this against your credit as a negative credit rating for $250?
Baker: They will?
Hurd: Yes, ma’am.
Baker: Why would they do that?
Hurd: Because they state that you owe them $250.
Baker: Well …, does that mean that there is nothing I can do about them reporting on my credit until I pay it?
Hurd: Absolutely right.
Baker: That’s right?
Hurd: That’s right. … Why don’t you think you owe it?
Baker: Like I just told you, they owe me money.
Hurd: Why do they owe you, uh, funds, Ms. Baker?
Baker: Well because they were supposed to give me the entire service for free, actually.
Hurd: You may want to call them, because, uhm, they put your account in collection and there is nothing we could do about it, except go against it, you may want to …
Baker: What do you mean by go against it?
Hurd: Make the recommendation for further action to be taken and that will be the legal ramification that was in your DirecTV contract.
Baker: I’m not quite sure what you’re telling me.
Hurd: Ah, there are legal provisions in your DirectTV contract, if you refuse to pay them, that they would take action against you. So they’ve already started that process, placing your account in collections and filing a civil claim against you. So the next step, will be reporting to your credit bureau, ah, agency, that this is a negative account that you refuse to pay and then they will continue to try to extract the funds from you. 13
Baker: And you’re going to do that even though I just told you that I don’t owe them any money?
Hurd: Ah, yes, ma’am. They sent it to us, we didn’t buy the account, we didn’t make this stuff up, DirecTV retained our services to pursue you for the balance of $250.
Baker: And you said something about a legal claim, are you saying they’re going to sue me?
Hurd: I’m not … I don’t know what they’re going to do. I don’t know what the ramifications were in your DirecTV contract.
Baker: Well, that sure is all very strange, and, ah ... have you actually, ah, like, mailed me anything, or are you only making phone calls?
Hurd: Yeah, DirecTV mailed you something for the last three months, we mailed you a letter as well.
Baker: Where did you mail it to?
Hurd: Uhm, to [address redacted.]
Baker: When did that go out?
Hurd: Last month.
Baker: I didn’t receive that.
Hurd: Yeah, I don’t know why, we sent it. That’s why we’re calling you now, because there was no response from the letter that we sent out. So we want to record a statement of intention to find out exactly how you want to handle this, so we know how to proceed against you.
Baker: Now, what’s not quite clear to me is that you’re saying ... when are you going to report that on my credit?
Hurd: This month.
Baker: This month?
Hurd: Yes, ma’am.
Baker: And you’re going to do that even though I’m telling you now that I don’t owe that money?
Hurd: Yes, ma’am.…
Baker: And what is your name please?
Hurd: My name is James Hurd, H – U – R – D is my last name.
Baker: And you work for who?
Hurd: Focus Receivable Management.
Baker: And you are a collection agency?
Hurd: Yes, ma’am. We were retained by DirecTV to pursue you for the balance.
Baker: Ok. All right. Well all I can do is tell you that one, I did not receive your letter … Do you think you could fax me that letter maybe?
Hurd: It’s actually unlawful for us to send it, two letters in a 30 day timeframe.
Baker: Well, like I just told you, I have not received your letter and I would like to get a copy of that letter by fax if possible.
Hurd: If uh, if our records were audited, we would get in trouble for that. 14
Baker: You would get in trouble for sending me a letter that I didn’t receive after I requested it?
Hurd: Yeah, because it’s unlawful to send two letters. We didn’t have a returned mail, so the US post deems that delivered.
Baker: Well, like, I’m just telling you, do you hear me?
Hurd: Yeah.
Baker: I did NOT receive your letter and I’m asking you to fax me a duplicate of that letter.
Hurd: Yeah, it’s just policies and procedures, ma’am.
Baker: Could I speak to your supervisor?
Hurd: Sure …
Un fucking believable.................
The subprime mortgage crisis: LIES, incorrect credit reporting, regulators refusal to enforce laws
I touched on this briefly last night on the podcast regarding the credit bureaus and some of their illegal underhanded activities. Christine Baker is on a mission to bring the credit bureaus to justice and I have her back 100%. She runs a series of forums and I consider her one of the foremost experts on credit repair in the country. Not only that she's ethical.
The bureaus are ignoring the laws BLATANTLY, and instead of properly reporting issues, they continue to rake in the profits, then pay the fine from the gov't. How can they do this? Well for one they're publicly traded and PROFITABLE. 1 of the big 3 pulls close to 500,000 reports a day. At $9 you do the math..............
So in today's reality the credit bureaus has a vested interest in having derogatories remain on your report. Part of this blog's missions is to chronicle my personal credit challenges and disputes as i embark on a mission to push my score to 750. Also what I'll be doing is informing you of you rights and late breaking news. In the near future I will be interviewing experts in credit repair and mortgage lending, people such as Tracy Ballard, Bob Zimmerman, Donna Fox of Credit Millionaire fame, and of course Christine Baker. Look here for up to date relevant credit focused content.
The bureaus are ignoring the laws BLATANTLY, and instead of properly reporting issues, they continue to rake in the profits, then pay the fine from the gov't. How can they do this? Well for one they're publicly traded and PROFITABLE. 1 of the big 3 pulls close to 500,000 reports a day. At $9 you do the math..............
So in today's reality the credit bureaus has a vested interest in having derogatories remain on your report. Part of this blog's missions is to chronicle my personal credit challenges and disputes as i embark on a mission to push my score to 750. Also what I'll be doing is informing you of you rights and late breaking news. In the near future I will be interviewing experts in credit repair and mortgage lending, people such as Tracy Ballard, Bob Zimmerman, Donna Fox of Credit Millionaire fame, and of course Christine Baker. Look here for up to date relevant credit focused content.
How to get a mortgage with bad credit!
Contrary to CNBC and popular belief, there are still some mortgage companies in business. AND you can buy a house even when your credit is in the toilet.
The reality is be prepared to pay slightly higher fees as the lender's taking on more risk funding you. However with proper due diligence you can find a good loan program that fits your needs and raises your credit. Also, once you have a mortgage your credit score instantly goes up 60-75 points.
Here are some tips to keep in mind when looking for a mortgage:
* Assess your financial situation carefully. Before considering applying for a bad credit mortgage, think about how a new loan will affect your financial situation. Have you made plans on how you’ll be able to keep up with your mortgage payments? Are you sure that you are prepared to take on a new responsibility? If your car needs brakes will you be able to pay for that repair and keep your payments current? It's one thing to get a house and it's another thing altogether to keep it.
* Compare rates. It’s important to choose from several lending companies before choosing a particular lender. Don’t just compare interest rates but compare all costs involved in your loan. Although it is expected that do come with higher interest compared to standard mortgage, you can still find a company that offers reasonable rates. Use the internet to shop around for possible lending companies more conveniently.
* When shopping for your home loan, talk to your potential lender before giving them your social security number. Pull your credit yourself and fax it to these lenders and ask them based on what you have sent them what the rate, term and fees will be. Let them know that you understand they will have to pull your credit later if you decide on accepting their loan. Try to limit the number of pulls to your credit as much as possible.
* Watch out for predatory mortgage lenders. Many of the people facing the loss of their home are victims of predatory lenders. These lenders are on the look out for people with bad credit and will take advantage of you if you let them. Don’t let mortgage predators take advantage of you. Read the fine print on any loan documents you receive. The purchase of a home is a HUGE step. If you have questions, ask, if you don’t feel right about the lender, get up and leave.
* Be careful with adjustable rate mortgages. Keep in mind that adjustable mortgage loans may unexpectedly rise in the middle of your payment term. See to it that you are aware of the loan’s life cap and that it is clearly included in your contract. In today's market I would highly recommend NOT getting an ARM. ARMs are a big cause of the large amount of defaults happening today.
* Ask for a copy of Good Faith Estimate. The good faith estimate should be handed to you days before the actual closing takes place. The good faith estimate includes the fees involved in your loan that you will be paying your lender. FYI the majority of fees you pay at closing will be fees to your lender.
* Inquire how much is your down payment. Bad credit mortgage loans usually require a down payment. Make sure that you are aware of how much down payment is exactly needed before accepting the loan. Watch out for last minute changes. Its not unheard of that at the signing table these predatory lenders may say, wow you didn’t quite qualify for this loan amount but to help you out, since we are here at the closing table, we have approved you for a second mortgage. This tactic works for the lenders because you are so excited about getting into your new home that you say ok, I can afford the additional payment. Unfortunately you didn’t look closely at the rate and term on this second. I’ve seen some second mortgages that adjust monthly.
* Negotiate with your lender. Even though you may have bad credit, don’t be afraid to negotiate with your prospective lender. Lending companies also face tough competition in the market and although some lenders may refuse to negotiate, there is no harm in trying.
Remember that a mortgage loan involves what will become your family home. By failing to pay, not only will you ruin your credit but put your family into a severe strain, and possibly make them homeless. Therefore, if you think are not financially ready, then it’s better to wait until you gain more control with your finances. In the meantime, you can work on improving your credit. Pay your debts and be timely in your payments. Avoid incurring new debt and limit the use of your credit cards. Set aside some savings for your mortgage loan down payment. This will help you be more prepared when you finally apply for your mortgage.
The reality is be prepared to pay slightly higher fees as the lender's taking on more risk funding you. However with proper due diligence you can find a good loan program that fits your needs and raises your credit. Also, once you have a mortgage your credit score instantly goes up 60-75 points.
Here are some tips to keep in mind when looking for a mortgage:
* Assess your financial situation carefully. Before considering applying for a bad credit mortgage, think about how a new loan will affect your financial situation. Have you made plans on how you’ll be able to keep up with your mortgage payments? Are you sure that you are prepared to take on a new responsibility? If your car needs brakes will you be able to pay for that repair and keep your payments current? It's one thing to get a house and it's another thing altogether to keep it.
* Compare rates. It’s important to choose from several lending companies before choosing a particular lender. Don’t just compare interest rates but compare all costs involved in your loan. Although it is expected that do come with higher interest compared to standard mortgage, you can still find a company that offers reasonable rates. Use the internet to shop around for possible lending companies more conveniently.
* When shopping for your home loan, talk to your potential lender before giving them your social security number. Pull your credit yourself and fax it to these lenders and ask them based on what you have sent them what the rate, term and fees will be. Let them know that you understand they will have to pull your credit later if you decide on accepting their loan. Try to limit the number of pulls to your credit as much as possible.
* Watch out for predatory mortgage lenders. Many of the people facing the loss of their home are victims of predatory lenders. These lenders are on the look out for people with bad credit and will take advantage of you if you let them. Don’t let mortgage predators take advantage of you. Read the fine print on any loan documents you receive. The purchase of a home is a HUGE step. If you have questions, ask, if you don’t feel right about the lender, get up and leave.
* Be careful with adjustable rate mortgages. Keep in mind that adjustable mortgage loans may unexpectedly rise in the middle of your payment term. See to it that you are aware of the loan’s life cap and that it is clearly included in your contract. In today's market I would highly recommend NOT getting an ARM. ARMs are a big cause of the large amount of defaults happening today.
* Ask for a copy of Good Faith Estimate. The good faith estimate should be handed to you days before the actual closing takes place. The good faith estimate includes the fees involved in your loan that you will be paying your lender. FYI the majority of fees you pay at closing will be fees to your lender.
* Inquire how much is your down payment. Bad credit mortgage loans usually require a down payment. Make sure that you are aware of how much down payment is exactly needed before accepting the loan. Watch out for last minute changes. Its not unheard of that at the signing table these predatory lenders may say, wow you didn’t quite qualify for this loan amount but to help you out, since we are here at the closing table, we have approved you for a second mortgage. This tactic works for the lenders because you are so excited about getting into your new home that you say ok, I can afford the additional payment. Unfortunately you didn’t look closely at the rate and term on this second. I’ve seen some second mortgages that adjust monthly.
* Negotiate with your lender. Even though you may have bad credit, don’t be afraid to negotiate with your prospective lender. Lending companies also face tough competition in the market and although some lenders may refuse to negotiate, there is no harm in trying.
Remember that a mortgage loan involves what will become your family home. By failing to pay, not only will you ruin your credit but put your family into a severe strain, and possibly make them homeless. Therefore, if you think are not financially ready, then it’s better to wait until you gain more control with your finances. In the meantime, you can work on improving your credit. Pay your debts and be timely in your payments. Avoid incurring new debt and limit the use of your credit cards. Set aside some savings for your mortgage loan down payment. This will help you be more prepared when you finally apply for your mortgage.
Is now a good time to buy a house?
In light of all the foreclosures, and subprime mortgage meltdown I'm seeing a recurring theme across the country- People are wondering is now a good time to buy a house? Will I lose money if I buy now? Can I get a good mortgage? Do I have to have perfect credit?
Well, a colleague and I had a phone conversation last night about this topic and others and in a word, YES YES YES you can buy and NOOOOOOOOO you don't have to have perfect credit.
Click here to listen
Well, a colleague and I had a phone conversation last night about this topic and others and in a word, YES YES YES you can buy and NOOOOOOOOO you don't have to have perfect credit.
Click here to listen
No B.S. Credit Info
Hi, Welcome to credit bureaus suck! The name's self explanatory. I won't have to build much of a case to show you that the bureaus suck, I'm sure you may already know that based on an experience you may have had. On this blog, we're going to chronicle REAL WORLD credit strategies to improve your FICO score, as well as provide pertinent information regarding credit that the Big 3 NEVER hope you find out. Stay tuned.............
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