Congressman Lacy Clay and Donna Perkins

Congressman Lacy Clay and Donna Perkins photographed at an event August 5th as a fundraiser for Congressman Clay's reelection.  At this event, Ms Perkins was representing the National Association of Credit Services Organizations (NACSO), the organization that scrutinizes and monitors the best practices of those Credit Restoration firms who voluntarily participate for the good of the industry.

Ms. Perkins serves as a member of the Board of Directors of that organization, and as the chair of Membership.  It is vitally important that the general public understand the kinds of things going on in the industry.  That is why, as a board member, Ms. Perkins supports Congressman Clay who is working with other members of Congress towards a solution.

It is well known, and now documented by 60 minutes, that the three credit reporting agencies:  TransUnion, Equifax, and Experian are attempting to influence Congress to change the consumer protection laws in their favor.  They want us to believe that we would be better off if THEY are the only ones who can solve credit report problems.  But consider this:  if the people who gather the data, decide what information to use, then arbitrarily decide what your credit score will be, then report different information to the lenders – have control over fixing their broken system, how will the public benefit?  Can you say "wolf guarding the hen house"?

Congressman Clay is gathering infomation to take back to committees that he sits on or chairs in order to formulate an answer to this outrageous request by the 3 bureaus.  If they are allowed to have their way, all people in the US will suffer.  The banks who lend money to us rely on the information provided to them by the 3 bureaus.  If it is not accurate, every American will be allowed less and less credit.  The way our banking system sits today, that means that the 3 bureaus will make more and more money selling their data to the banks.  The banks rely on the 3 bureaus for accuracy, and recently on 60 minutes, it was reported that 40 million mistakes are to be found within the 3 credit reporting agencies.  Ms. Perkins and others involved in the credit restoration business, are dedicated to working out a solution to this conundrum.  See 60 minutes video here:  60 minutes:  40 million innacuracies.

Donna Perkins

With 23 years in the business of credit restoration, and more than 110,000 happy customers, KC Credit Services can solve your credit report problems.  Contact us today!

In addition to removing negatives from your credit, we teach you how to negotiate your debts with creditors, give you access to an educational financial program that is self-administered at your leisure, set up protection for you against creditor violations of the Fair Debt Collection Practices Act (FDCPA), get you off the list that the bureaus sell to creditors, and help you locate postiive trade lines to help improve your scores.

Donna Perkins

If you have already enrolled with us, CONGRATULATIONS!  You are on your way to financial freedom!  If you have not committed yet, please take a moment to consider this article.  Also, you can browse our website to become more familiar with our range of services of credit repair and more.  Get Started Today!  Click Here.

In the first editorial in this series, we defined a myth as:  something you believe because you heard it from someone else or saw it on a website like "credit repair is a scam".  This is soooooo not true.

Today's "myth" talks about:

PAYING OFF YOUR OLD DEBTS WILL REMOVE NEGATIVE INFORMATION ON YOUR CREDIT REPORT.

This myth is one of the most prevalent, and most damaging.  Paying off your debt helps you have no debt, but it does not necessarily help your credit score.  It can take two years for a paid off account to register as an improved score. 

Remember, your score is made up of five different categories:

1)   35% of your score is made up of your payment history.  The fewer late pays and partial pays that you have, the higher this percentage will count.

2)   30% of your score is made up of the amounts you owe, versus the overall credit limit you have.  For instance, if you have 3 credit cards, each one with a $5,000 limit, your available credit is $15,000.  If you have charged $3,000 on a combination of those cards, then your debt to credit ratio is 20%.  If you have charged up $12,000, then your debt to credit ratio is 80%.  The bureaus count 30% or below as good; the higher amount you owe, the lower your score.

3)   15% of your score is based upon how many years you have had credit.  Your parents may have had credit for 30 years, but you may only have had credit 2 years.  The bureaus take this into account, and favor the consumers who have a longer history.

4)   10% of your score is based upon how long it has been since you received new credit.

5)   10% of the score is weighed based on the types of credit you are using:  mortgage, installment payments like a car or furniture, vs. unsecured credit card debt.  The more diverse, the better your score.

Having explained that, one can see that paying off your debt completely, and closing an account could actually be harmful.  Lets use that same $15,000 total available credit scenario.  You decide to pay off one of your credit cards and close it.  Now you only have $10,000 in available credit.  If you owed the same $3,000, your debt to credit ratio is now at 33.3% instead of 20%.

Donna Perkins

Credit bureaus will most often remove negative credit information that is not verifiable. This is why we work so hard on your behalf.  If you wish it, and select this path of credit restoration, we will challenge the creditors for you.  They must be able to provide the paperwork that proves you owe the debt.  If they cannot do so, we can most likely get the debt voided and removed.

However, let us be clear.  We cannot claim to remove “accurate” reporting.  So if you have a negative item that can be verified, it may need to be paid off to take the next steps to a better report.  Ask your Credit Concierge™ for more information.  Click here.

In the last editorial, we defined a myth as:  something you believe because you heard it from someone else or saw it on a website like "credit repair is a scam".  This is soooooo not true.

Today's "myth" talks about:

CREDIT BUREAUS ARE REQUIRED BY LAW TO KEEP DEROGATORY OR NEGATIVE ITEMS ON YOUR CREDIT REPORT FOR 7 TO 10 YEARS.

This statement is untroe.  There is absolutely no requirement of law that credit bureaus report ANYTHING ON YOU AT ALL! 

Credit bureaus, commonly known as Experian, TransUnion, and CSC/Equifax, are private companies.  They make their income by collecting and selling your personal information.  WHAT! you say?  That's right.  Let's delve deeper into this multi-billion dollar business.

First, you purchase something from a creditor (Sears, Arco, Home Depot and more), and you put it on a credit card.  It could be the credit card offered by the creditor, or it could be a general credit card you got from Visa or Mastercard through a lender like CitiBank, Chase, etc.  The company is saying that they will trust you to take the item you are purchasing home with you without paying for it today.  You have just applied for and received "credit".  The credit card comes with a set of rules that must be adhered to:  for instance, if you pay off the balance in full before the next billing cycle date, there will be no interest charged.  If you do not pay the balance in full, whatever balance exists at the time of the billing cycle change, an interest rate will be applied to that balance.  And so it goes, month after month until paid off. 

In addition, if you miss a payment, or go over the credit limit they have granted you, there will be additional charges.

The creditor (Sears, Arco, Home Depot) may choose to report your credit activity and history to one or more bureaus.  That's right…not every creditor reports to all three bureaus.  Wonder why?  It costs them money to do so.  Each bureau charges the creditor to receive your information on a monthly, quarterly, or annual basis.  And you usually do not know what the creditor's standard practice for reporting is until it bites you.

Whether or not the information they convey to the bureaus is accurate, it is all done electronically.  So a typographical error can occur in the transmission of data, or at the receiving end of the transmission.  This makes the number of mistakes grow.  Add to that the fact that in some cases, the data they are conveying to the bureau is inaccurate (as in the example of a debt that has been paid off, but not yet shown in the data), and you can easily see why so many mistakes occur.

Donna Perkins

The bureaus do have rules they have to follow.  But at present, there is no "effective" body that has oversight over their methods.  Enforcement is a problem.  But one thing is clear.  If you have had a bankruptcy, the bureaus are required to report that data for 7-10 years:  7 years in the case of a Chapter 13 bankruptcy, and 10 years in the case of a Chapter 7 bankruptcy.  They are required to report liens for up to 15 years.  Usually, when you have a derogatory item on your report, such as a late payment or other less serious infringement, it can stay on your report for up to 7 years…however, creditors who are reviewing the report usually do not look beyond the last two years on your history.  So the timing is critical to you applying for new credit or for a credit increase.

Myth #2 is debunked.  Stay tuned for Myth #3.  If there is something we can do to help you clean up your credit history, click here.

(Note to consumers:  This is the first in a series regarding common misconceptions about credit repair or credit restoration.  The information contained is deemed to be accurate, but not guaranteed.)

What is a myth?  Merriam Webster's Dictionary defines a myth as "a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural phenomenon – parable, allegory".  Well I don't know about you, but you might as well have spoken Greek to me!  I didn't get that.  So let's look at a simpler definition:  Parable-a usually short fictitious story that illustrates a moral attitude or a religious principle.  OK, we're getting closer.  Let's look at allegory:  the expression by means of symbolic fictional figures and actions of truths or generalizations abut human existence.  Now I'm confused again.

Can we suffice it to say "a myth is something you believe based on someone telling you something that may or may not be true?"

In the case of credit repair, myths are things that you believe because you have heard it from someone or on a website, like "credit repair is a scam".  That is soooooo untrue.  So, let's explore one myth that you might believe about credit repair: 

Myth #1:  INFORMATION ON YOUR CREDIT REPORT CANNOT BE CHANGED!

Exactly the opposite is true!  In fact, the Fair Credit Reporting Act which was enacted in the 1970's was put into place by Congress to make sure that consumers have a way to correct things on their reports that are misleading, outdated, inaccurate or unverifiable.  There have been many changes to this act to further strengthen it's enforcement abilities. 

However, the general public does not have a clue how to go about getting something changed.  The typical consumer who does his own credit repair goes about it this way:  he types out a letter, or handwrites it, stating why he thinks an item on his credit report is inaccurate.  He mails it to one of the bureaus, or perhaps all three bureaus:  Experian, TransUnion, or CSC/Equifax.  They all provide PO Boxes for this type of dispute. 

He mails it in.  When the bureau(s) receives it, their system tries to scan it and upload it into their computer program called E-Oscar.  The computer attempts, by the use of word recognition, to determine which category the complaint should be referred to.  The Bureau has 30 days with which to reply.  Often times, the Bureau simply sends out a form letter stating that there is not enough information provided to verify the complaint.  This is a delay tactic that gets most people to give up at that point.

It takes an experienced company who has done this tens of thousands of times to know the exact wording to use to get the result desired.  The manner in which the letter is prepared can also make the difference between the complaint getting handled or not.

Remember, while FCRA gives you the RIGHT to dispute, it does not guarantee that disputes will be handled at all, nor does it discuss what happens when you get one of the dismissal letters discussed above. 

At KC Credit Services, when you enroll with us, we perform a forensic audit of all three bureau reports, and work with you to determine what is misleading, outdated, inaccurate or unverifiable.  We then get to work to resolve all inequities.  While we do warrant that we will obtain improvement to your reports, we do not guarantee results, as we hve no control over the bureaus.  We rely on the experience we have gained since 1999 with more than 110,000 customers.

Donna Perkins

The process of improvement can take 7-12 months, depending upon the types of complaints and the number of inaccuracies.  You did not get into this position overnight, and there is no reputable credit restoration company who can legitimately tell you that they can do this any quicker. 

Myth #1 is debunked.  Stay tuned for Myth #2!  Meanwhile, if we can help you in any way, click here.

At KC Credit Services, our 22 year spotless record speaks for itself.  With more than 110,000 customers served, our Credit Concierges™ know what can and cannot be done.  If you hear it here, you can bank on it.  The BBB gives us an A+ rating…very difficult to come by in the industry.

So…is credit repair a scam?  According to the Fair Credit Reporting Act, you have the RIGHT to dispute inaccuracies on your credit reports.  The bureaus have an OBLIGATION to assist you in removing inaccurate information.  However, getting to do that can sometimes be difficult.

Companies like ours excel at getting these inequities taken care of.  While we will not guarantee any specific results, we do guarantee credit improvement.  And we guarantee that an item removed by us will not come back later to haunt you, or we will work on it for free.

Credit repair is a delicate balance between what you say happened, the creditor says happened, and what the bureaus say happened.  This is why you need a professional company with loads of experience to assist you.  Without the finite knowledge that we have, a consumer has little chance of achieving their score goals.

As we practice the craft, credit repair is NOT a scam.  Be sure that you thoroughly check out any company that you are considering using for this purpose.  Use www.ripoffreport.com to check out the company as well as the representative before making a decision to move forward.  You can also check through www.creditboards.com and www.debtbords.com to see if your choice for credit repair has any kind of negative press about them.

Donna Perkins

Now is the time to work on your credit profile…before you NEED it to qualify for a loan, whether it be for a home, car, or other large purchase…even a credit card.  If you want to pay the lowest possible interest, your score needs to be above 740 in today’s environment.  If you credit score is not at that number, you may need a firm like ours to help you get there.  Click here for more information.

The Federal Trade Commission[1], who along with the help of the Consumer Finance Protection Bureau, has long been the watchdog of the credit repair industry.  In the past five years, the number of complaints by consumers about unfair dealings with credit repair companies has diminished each year.  In 2012, there were about 2,000,000 complaints across all sectors of business.  There were less than 2,000 complaints against companies engaged in this work, with 999 out of 1,000 related to something other than credit repair work. 

In the past, many of the companies who advertise these services have, in their zeal to get their message out there, promised things that are not possible or unlawful.  Guaranteeing that a specific item or a specific type of item can be removed from a consumers reports, charging for their work up front, and suggesting alternative identities are the kinds of practices that have pretty much been stopped by the top firms.

One of the ways this has occurred is that companies like KC Credit Services, who is one of the oldest firms in this field at 22 years and counting, have joined forces with other like-minded companies to create a voluntary oversight organization called the National Association of Credit Services Organizations[2] (NACSO).  Companies who want to do business the right way join this organization and abide by its guidelines and compliance requirements.

NACSO President, Randall Chesnutt, recently said “Credit repair has never been more important for consumers, especially in this economy, where identity theft and errors in credit reporting are rampant.  NACSO has maintained this view and recent Federal Trade Commission reports affirm the same with data.”

Identity theft is the number one complaint by consumers received by the Federal Trade Commission in 

2012.  The top offenders across all categories on their list include debt collection agencies, banks and lenders, shop-at-home and catalog sales. 

According to Donna Perkins, President of KC Credit Services and Secretary of the current NACSO Board of Directors “identity theft is widespread and growing, so consumers should check their credit reports frequently.  If consumers find they have erroneous, outdated or unverifiable listings on their credit reports, they should act immediately.”

Ms. Perkins continued “mistakes on the credit reports are costing consumers thousands of dollars in higher interest rates on credit cards, car loans and mortgages.”  If you suspect there are errors on your reports, you should contact an experienced credit restoration firm.  Contact us today!  Click Here.

Donna Perkins

 

 

 

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[1] Federal Trade Commission.  www.ftc.gov

 

 

 

[2] National Association of Credit Services Organizations.  www.nacso.org

 

 

 

Everything we do today, unless we live in a cave, in one way or another affects our credit life.  If we miss a payment, even by one day, it can be reported to one of the credit bureaus.  Every time we apply for a new credit card, or try to buy a car or qualify for a home loan, an "inquiry" is put on our credit.  If we fall behind on medical bills, go over our limit on a credit card because our child got sick, or mom fell and broke her hip…it all gets reported to the bureaus.

Sound familiar?  Does Big Brother ring a bell?  The Orwellian view of the future is becoming truer and truer.  Especially in the digital age.  It is almost impossible to live off the "grid", and try to keep what you do private.  But with the popularity of Facebook, Twitter, Linked In, Pinterest…most people have no idea that what they are putting out there is being monitored.  That is not to say that the bureaus are watching your account on Facebook…just making the point about our lives being "out there".

In an extreme case, on the 60 Minutes expose http://www.cbsnews.com/video/watch/?id=50140748n, a woman has been fighting the bureaus for more than 5 years to separate her credit history from someone THEY mixed it up with.  It's been a nightmare for her.  There's nobody to talk to in order to solve the problem.  Because the bureaus are completely automated, it's difficult to get a live body on the phone, and when you do, it's coming from a foreign country.

Most of the time, errors on your credit reports can be removed.  It's a matter of knowing how.  The Fair Credit Reporting Act (FCRA) was put into place in 1980 to regulate the way that the bureaus handle your data.  Even though they are required to abide by the law, those of us who work in this field know that they do not…and blatantly.  The Consumer Finance Protection Bureau (CFPB) was instituted in 2010 to do something about this, and several other troubling issues related to our precious credit histories.  So far, they are still for the most part gathering information.

The fact is that CSC/Equifax, Trans Union, and Experian, the three largest bureaus, have a 4 Billion dollar annual stake in the way they are currently doing business.  They make money from selling our data files to banks, lenders, and anyone else who lends money to us.  The more negative the information, the more money they make.  And there is nothing you as one person in the US can do about it.

Reality sets in when we get really upset with the situaiton, though.  The problems we face mostly come from our inability to handle our finances correctly.  We are careless about making payments on time, sometimes with good reason.  But rather than contact our creditors and inform them of our temporary troubles, like the loss of a job, military deployment, major illness in our family, or other catastrophic situation, we stick our collective  heads in the sand…and hope for the best.

Seems like there is no way out…right?  But there can be a light at the end of the tunnel.  A good credit restoration company can help.  They know the secrets and the tried and true ways to fix things.  They may not be able to fix EVERYTHING, but they can come close and make improvements you will like.  It may be time for you to take a serious look at your own credit reports.  If your scores are not where they need to be for you to live the life you desire, it is time to allow the experts to help.  Why not contact us today?  Click Here.

Donna Perkins

Consumer Financial Protection Bureau report details how the nation’s largest credit bureaus manage consumer data

Credit cards dominate consumer reports; Debt collection tops disputes

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) released a report on the consumer experience with the three largest nationwide credit reporting companies: Equifax Information Services, LLC; Experian Information Solutions Inc.; and TransUnion LLC. Among the key takeaways in the report, which is one of the most comprehensive studies of credit reporting to date, are that credit card history dominates the information in consumer reports and that debt collection items generate the highest rate of disputes.

“Today’s study is another step toward bringing more clarity to the confusing world of credit reports. It will help educate regulators and consumers about how this important industry works,” said CFPB Director Richard Cordray. “If consumers know how these companies handle their credit histories, they can make better decisions on how to handle their financial lives.”

Credit reporting companies, also called credit bureaus, are businesses that track a consumer’s credit history. The credit reports they generate – and the three-digit credit scores that are based on those reports – play an increasingly important role in the lives of American consumers. Most decisions to grant credit and set interest rates for loans are made using information contained in credit reports as a key decision factor.

Equifax, Experian, and TransUnion each have more than 200 million files on consumers. In a typical month, they receive updates from approximately 10,000 information “furnishers,” which are the entities that supply data on consumers. The furnishers do this on more than 1.3 billion “trade lines,” which are individual information sources on a consumer report such as a consumer’s accounts for a car loan, mortgage loan, or credit card.

The report is the result of the CFPB analyzing U.S. information from 2011, including information submitted by TransUnion, Equifax, and Experian. Among the key takeaways in the report:

• More than half of the trade lines in the credit bureau databases are supplied by the credit card industry: Credit reporting companies get their information from a variety of industries but more than half of the account information is supplied by credit card companies. Specifically, 40 percent comes from bank cards, such as general credit cards, and 18 percent comes from retail credit cards. Only 7 percent comes from mortgage lenders or servicers, and only 4 percent comes from auto lenders.
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• More than a third of disputes have to do with collections: In 2011, consumers reached out to the credit reporting companies roughly 8 million times, resulting in disputes of 32 to 38 million items in their credit files. Almost 40 percent of the disputes relate to debt in collections, and debt in collections is five times more likely to be disputed than mortgage information. According to the industry, some of this may have to do with consumers’ incentive to dispute any negative information on their reports.
•  
• Fewer than one in five people obtain copies of their credit report each year: The most effective way for consumers to identify errors in their reports is to obtain copies and review them. But only about 44 million consumers per year, or about one in five, obtain copies of their files.
•  
• Most information contained in credit reports comes from a few large companies: Most information contained in credit files comes from a small number of large banks and other financial institutions. In fact, the top 10 data furnishers provide 57 percent of the trade lines coming into the credit reporting companies. The top 50 furnishers provide 72 percent. And the top 100 furnishers provide 76 percent.
•  
• Most complaints are forwarded to the furnishers that provided the original information: The credit reporting companies resolve an average of 15 percent of consumer disputed items internally, without getting the data furnishers involved. The remaining 85 percent are passed on to the furnishers. Today’s report, however, found that the documentation consumers mail in to support their cases may not be getting passed on to the data furnishers for them to properly investigate and report back to the credit reporting company.

The report, “Key Dimensions and Processes in the U.S. Credit Reporting System: A review of how the nation’s largest credit bureaus manage consumer data” is available at: http://files.consumerfinance.gov/f/201212_cfpb_credit-reporting-white-paper.pdf

The CFPB is the first federal government agency that supervises both consumer reporting companies and those that provide consumer reporting companies with consumers’ credit information, such as large banks and many types of nonbanks. In July, the CFPB adopted a rule to extend its supervision authority to cover larger consumer reporting agencies, and in September, it released the examination procedures it will use to examine these companies. Previously, these companies were not supervised at the federal level.

In September, the CFPB released a study examining credit scores that compared credit scores sold to creditors and those sold to consumers. It found that while credit scores sold by credit bureaus to consumers were generally highly correlated with credit scores used by lenders, about one in five consumers would likely receive a score that could be materially different from what a lender would see.

In October, the CFPB began accepting individual complaints about credit reporting companies. If a consumer files a complaint with a credit reporting company and is dissatisfied with the resolution, the CFPB is available to assist. Consumers can find out more at: https://help.consumerfinance.gov/app/creditreporting/ask

The CFPB also published a Consumer Advisory about credit reports earlier this year at: http://files.consumerfinance.gov/f/201207_cfpb_consumer-advisory_check-your-credit-score-every-year.pdf

See full artical at:  CFPB – December 2012

At one time, hundreds of websites were advertising that they could get you a new substitute EIN number with a new address, for the sole purpose of setting you up with a new identity.  In this way, your "bad credit" history would be bypassed, and you could start over.  Many people paid hundreds of dollars to these firms in hopes of getting that new financial life.

Then the Federal Trade Commission got involved, and put a stop to that practice for one reason…it is illegal. 50 of those firms were charged with crimes, and in this way, the word got out that to sell this type of service would get you in serious trouble.  Here are some of the ways that these firms set people up for a new identity:

PIN (personal identification number):  a pin was a "made up" number.  Using nine digits with the hypens in the right place, people starting using this new number as a social security number.  It was thought that by having at least one merchant accept this new number, it could be considered legitimate.

CPN (credit privacy number):  a CPN is a nine digit number, also "made up", that looks like a social security number. 

While both of these practices are actually legal in the formation of them, using them with any kind of lender is considered fraud.  Defauding a lender is a serious crime, punishable with fines and jail time.  In fact, in the case of using an alternative to a valid social security number for a mortgage, the fine can be $100,000 and  up to 30 years in jail for federal cases, and more for state cases.

In these uncertain times, you are much better off working with a credit restoration specialist who can assist you with cleaning up your credit report using your original social security number.  Using the Fair Credit Reporting Act, a seasoned expert can show you what needs to be addressed.  Remember, you have the RIGHT to dispute innacurate, incomplete, misleading, and aged information from your credit report.  By removing those negatives, your score can improve.  A credit restoration specialist can coach you on how to fight these inequities and win!  They can also provide you with strategies and information about adding positive lines of credit to your credit file.  CLICK HERE to get started today!

After this cleanup has been completed, and even during the process, there is one LEGITIMATE way you can stop using your social security number to personally guarantee loans for houses, vehicles, credit cards and more.  If you have a buisness, or have been considering starting one, then you can follow our plan to get you a Federal EIN number, and eventually a DUNS number.  Dun and Bradstreet is the premier purveyor of business credit monitoring.  Getting an 80+ PAYDEX score will assist you with putting everything you buy into a company, guaranteed by that company.  This frees up your personal credit, so it can remain as good as possible for the future.

To learn more about how you can get business credit started for yourself, CLICK HERE.

Donna Perkins