In an "industry sponsored" report

If phone numbers to offshore to people without the ability to do anything for the customer, and PO Boxes are provided that go into a dead letter hole (and the PO box numbers are often changed without notice, so your request goes to the dead letter file at the USPS), then how is a consumer to get justice and change for their credit reports?  Working with a company like ours, with nearly a quarter century fighting for your rights and WINNING!  Give us a call today to learn how working with KC Credit Services can benefit you.

Donna Perkins

1.  Policies and procedures must be put in place to RECOGNIZE the red flags of identity theft that may occur in a company's day-to-day operations.  Red Flags, in this instance, may be described as suspicious patterns or practices, or specific activites that indicate the possibility of identity theft.  If a customer must provide proof of his/her identity to you, and the method they use looks suspicious, that is considered a Red Flag.

2.  Coming up with a list of Red Flag issues for your business is imperative.  It you do not put procedures in place to recognize a red flag, as in fake, forged or altered identification sources, then you have not fully fulfilled the requirements of a good program.

3.  Describe the specific actions you will take to detect and act when given a fake ID.

4.  Put into place a timetable to review the Red Flag list you have implemented in order to keep up with the changing financial landscape within which you operate.

Just because you have written things like this down, it doesn't constitute having taken care of the problem.  You must have procedures in place to implement, review, act and/or change the identified threats in the daily round of your business.  Determining the risks to your business and how to act when they do pop up is of paramount importance to having a successful program im place.

Donna Perkins

Security of any data you collect is crucial.  We've all heard the stories on the news of corporation's having their computer's hacked, and losing large amounts of consumer data.  What will you put in place to keep this from happening?

In our next article, we will continue this subject and discuss who must comply with Red Flag Rules.  Stay Tuned.

It's The Little Things. When kids get into the first grade, they are introduced to coins. They are taught their amounts, how to count coins, and what combinations of coins equal a dollar. Addition and subtraction are also studied, and the beginnings of multiplication and division are explored. But learning these things doesn't actually help them UNDERSTAND money, and its uses. You can help. By giving them "play money", and talking to them each time you take them to the grocery or other store about how to decide which items they want and how much money they have to spend on those items, sets the pace. Just like in every-day life for us grownups, they will have to put things back and make good decisions. Be prepared for some tears and upsets, but it is all done in the spirit of learning. Encourage the kids to use their play money at home playing "store" as well.

Allowances. A weekly allowance, especially for doing chores, is a great way to get kids into the spirit of budgeting and saving. An allowance of $5.00 per week, as an example, for doing a series of chores to help out around the house provides a rich medium for kids to learn that there is "no free lunch" in life. No matter what "chores" you give them to do, it is important to keep a chart of their progress, and give out "stars" for completing tasks. Have a savings "piggy bank" of any type where kids need to deposit their allowance. It is important that they cannot retrieve it at will, so they get into the habit of socking it away for the future. Be sure to give them the allowance in small denominations so they have to count it out to be sure of how much they have. Keep a chart with them of their savings, just like a passbook at the bank, so they can keep track of their funds. Saving up for a big purchase can be an exciting lesson.

Needs Versus Wants. Kids, like many adults, want everything they see. All you have to do to confirm this is to spend an hour watching TV with them. Almost every commercial aimed at kids causes them to say "I want that". It is the same in life. But we can't always afford what we want. Hopefully, we can afford our "needs". Teaching kids about the necessities is a hard lesson for them…remember, they have been given everything up to this point with no consequences, so this is a very hard thing to grasp. Needs include: water, food, shelter, clothing. Kids will think that the fifth need is "toys". But you can explain that one! School supplies, lunch money, participation in after-school sports, ballet lessons…these are all needs that can be met after the basic needs are met. Consider "matching" what they save in some way, such as they save $20, and you give them $5 to add to it. In this way, a child may save $300 in a year.

Donna Perkins

Teenagers And Money. Today, teenagers want everything. A cell phone, an IPad, an IPod, GameBoy, WII, concerts, and internet games. Money is a part of that. They also want the clothes and accessories that help them feel a part of the group, and cash to spend extemporaneously when they are with their friends. Today's harried and hectic parents just want to throw cash at their kids and move on. But this practice can lead to uncontrolled spending, and some startling bills. Giving a teenager a prepaid card is a good way to limit their expenses. Sit down with them and make a budget for a month, and let them see what kinds of things can be purchased within their budget. Are you going to give them $50 or $300 each month? What will you allow them to use the card for, versus those things that you pay extra for on their behalf (like concert tickets). Make sure that they understand that a prepaid card is an advance on their allowance, and there are chores that must be performed in order to earn those deposits. If you skip this step and do not make them accountable, there will be war at home. Of course there will always be the un-planned-for expense. Just like for us parents. But these can be minimized by sitting down with your teenager and discussing the upcoming month's activities. At the end of the month, when the statement comes from the prepaid card, be sure to sit down with your teenager and go over the list, so he/she can learn from the experience.

If you are concerned about how to teach your kids the basics of money management, please give us a call.

As a responsible parent, it is important to teach your kids about the wonders and pitfalls of money management. But if you are in financial trouble yourself, how do you teach your kids anything that will have meaning for them? Remember, just because you are having temporary financial troubles, does not mean that you don't know what needs to be done. Teaching them will also remind you of the best ways to handle money issues. Here are some ideas to help keep them safe:

What About the College-Aged Kid?  When a child is in college, the parent loses much more control over the spending issues…especially if the college student is motivated to earn their own money by working part time. If a parent has done a good job with the teenage phase, then this will not be so hard. A prepaid card can also work in this situation, but it is no longer an "allowance" unless they are living at home. If you are going to provide a credit card to your college student, be sure to teach them responsible credit card use. Although college kids have opportunities to open their own credit cards, make an agreement with them to assist them by having access to the online account so you can keep tabs on the spending and catch problems before they become catastrophes. If your college student has activated his own cards without you co-signing for them, then be sure that he/she gets a regular monthly credit report from a service. Sit down at least once per quarter and show them the effects of their financial choices.

Protecting Your Child's Credit.  "Monitor your mail, and be suspicious if materials such as offers for pre-approved credit cards show up in your child's name. Suspicious credit documents could be cause for alarm. Monitor your child's online activity, particularly if your child is frequenting social networking sites and/or chat rooms, and making online purchases. Educate your child about the importance of keeping personal information, such as last name, address, etc., private when sharing information online. Educate your child about unsolicited email scams – "phishing" emails – that ask for personal information. Be sure that your child knows to delete fraudulent emails of this sort. Don't allow children to carry their Social Security cards in their wallet or backpack, and don't carry them in yours. Instead, retain ownership of these cards, and keep them in a safe place."…Experian Credit Education

Donna Perkins

Watch for Part Two in this series.

Consequently, my own son who is 42 and has two children, has thought long and hard about these issues.  In fact, he has already arranged for my burial plot!  LOL!  But he learned the value of saving, of putting something aside for the future, and hopefully your children do as well.

Today we're mostly discussing the importance of parents talking to children about money, but it’s just as important for adult children to engage their parents in this discussion. If your parents, or a single parent, are entering their golden years, it may be time for you to have that conversation about money.  He/she may have debt that needs disposition.  But even more frequently, our precious elders are prey in an ever increasing game of money.  You want to talk about lots of things with him/her, including:

• Have a budget based upon income, and do not exceed that in expenditures.  As a retired person, they may not have the opportunity to earn more to pay off those debts.
• Stick to the budget at all costs.  It would be better for them to borrow a bit from you for an emergency situation than to incur lots of debt.
• If your loved one can no longer make sense of the check book, it may be time for you to handle that for them.  Nothing is worse than turning their checking account over to a clerk at the nursing home and have them decimate your loved ones finances.
• Budget a set amount for charitable gift giving, and be sure to stick to that figure.  One of the biggest problems for seniors is watching TV all day.  Because of that, your loved one may be susceptible to scams, religious zealtry, home shopping, starving children…you get the picture.  Gift giving is appropriate…but help your senior distinguish between their set commitments and what they see on TV or receive in the mail.
• Put something away for the end of live expenses.  If you loved one has not yet made a commitment to pay for their funeral expenses, now is the time to set something up.  In this way, your family is not financially decimated when that event occurs.
• If your loved one has ongoing debt left over from previous situations, help them decide upon a course of action and run with that.  Doing nothing does not help the situation, and your loved one will be harassed by creditors which can cause health and mental problems for them.

Donna Perkins

Your loved one may not wish to have this credit and debt conversation.  You must be patient, but firm.  It needs to be done for the long term health of your relationship with them, and with your own immediate family.  Submitted by Carole Carlson.

Call us soon to help you make choices for your loved ones, and deal with any credit or debt issues that are lingering.

Happy Fathers Day!

 

I'll bet you didn't know those collector calls can mean gold for you.  It is probable that one or more collectors are violating your rights.  The only way to prove that and make a case that we can work with is to keep good records.  By keeping accurate records of these calls, and in some cases letters you get, we may be able to sue your creditors and obtain some penalty fees for you.

You can help yourself protect your rights if you keep a record of those calls.  This can be accomplished in one of two ways:

1)  write it down on a log.  Keep this information on the log:  name of caller, company he/she represents, time of the call, start and stop time of the call, what was said during the call, especially if abusive language, threatening language, or untrue/unfair statements are made.  Note the call back number if your phone shows it.

2)  record the call.  Discover whether your phone system or cell phone can record calls, then be sure you hit the record button at the start of the call.  If necessary, have the person repeat what might have been missed at the beginning of the call while you were recording it.

Donna Perkins

3)  be sure to mention you are recording the call, as required by law.

Keep those records in one place.  When it comes time to do something about it, call us and one of our Credit Concierges(tm) will discuss with you the next steps.  When creditors or collectors violate your rights, it is possible that we can obtain some money for you.  It's about time!

Be sure to ask about our Debt Negotiation services, and our debt relief program for total debts over $20,000 and up to $300,000, including business debts that were signed for personally.

It is important to understand this distinction. The creditors nor the bureaus have any vested interest in having your credit report be cleaned up. As mentioned in previous emails, the bureaus make the most money from your troubles. The creditors make the most money when your scores are lower, as they can charge you higher interest rates and fees. So there is no incentive to paying old debts except to get out of debt!

Credit Bureaus will most often remove negative credit information that is not verifiable.  But it is important the WAY it is requested. You need a credit restoration specialist to assist you with this task.

Donna Perkins

If you are in this type of situation, our Credit Concierges(tm) can help. Call us today to get started on your personal path to financial freedom!

Each creditor has established their own set of guidelines and rules for extending credit. A creditor will usually require a full application that asks for many things: your income, your employment history, current level of committed expenses, your spending habits, and your credit history.

If you falsify any part of the application, you have committed credit fraud. The creditor will subjectively review all facts available, and make a decision for or against giving you credit based upon their own review criteria.

You may never know what that criteria consists of. Remember, this is not an OBJECTIVE decision. It is SUBJECTIVE. That means that the creditor may make any decision he wishes, except where the law dictates his actions (as in race, color or creed discrimination.  New credit can be granted even though your current score is weak, if other factors support it.

Donna Perkins

So your FICO credit score is only one of many facts that the creditor will consider in reviewing your application and granting credit to you.

Let us help you with your credit restoration needs so you can once again qualify for new credit lines.

If you paid cash for everything, you would have no credit history.

If you have no credit history, you have no credit!

Use of credit is important to developing a great credit score. But you must follow the guidelines for keeping it great, which include:

1) keep your debt-to-credit ration under 30% per card

2) pay your bills on time, every time

3) pay every bill, every month it is due

4) don't ask for more credit than you can afford.

By following these guidelines, you will develop the best credit history possible.

Donna Perkins

And remember…as your income rises, more credit is appropriate. But be selective, and be sure not to overdo it.

Our professional Credit Concierges(tm) can help you with understanding these concepts. Call us today!

A good credit score is made from the history of charging and paying off credit cards and other debts. But paying off your credit cards each month is not the best way to develop a credit history. You need to owe a bit, and pay a bit to develop it.

Paying everything off each month is a good way to stay out of debt, but won't necessarily help your credit score.

By charging something and paying it off over time, a short time, you develop the kind of history that the bureaus want to see.  Remember, they benefit most as a business when you do not pay off your debts quickly.  The merchant makes money on interest and fees, and the bureaus make money selling lists to them.  The more you owe without going over the 30% rule (don't spend more than 30% of your available credit), the less the bureaus benefit.  When you owe more than 30%, they classify you as a "bad risk", and this is what makes them money.

Donna Perkins

To keep yourself in a good situation all around, charge something, then pay off your credit cards over 2-4 months.  Try to never charge something more than the 30% rule, pay your bills on time every time, pay early and pay a little more than the minimum required, and you'll develop the best possible credit history.

To learn more about this practice, contact us today!