Credit Economy

 

Many consumers are aware that they have the right to one free credit report each year. They've been told that there are sometimes issues with the data in their credit reports and are encouraged to check them for accuracy. Very few consumers, however, are aware that they also have the right to one free copy of their C.L.U.E. report each year.
 
Choicepoint, an initial spin-off of Equifax, is a consumer reporting agency that provides information about you to potential employers and insurance carriers. Given that your insurance premiums and ability to obtain employment are greatly influenced by the data Choicepoint sells, it's your responsibility to ensure it's accurate.

Under the 2003 amendments to the Fair Credit Reporting Act, you are entitled to one free copy of your report each year. ChoicePoint makes several of their "products" available to you: C.L.U.E (for insurance); Workplace Solutions (employment screening); and Tenant History (apartment rentals). You can order your copy of the "Full File Disclosure" online by visiting

Other Resources:

• Getting Behind The Numbers All you ever wanted to know about raising your credit score, but didn't know whom to ask
• Protecting Your Privacy
• Fair Credit Reporting Act Links

ChoicePoint.
 
While there have been far fewer independent studies done on the accuracy of the information ChoicePoint sells than the Credit Bureaus, there are plenty of stories of consumers being negatively impacted thru higher premiums or denial of coverage.
 
Do you know what's in your report?

It's unfortunate, but it's not entirely uncommon for someone to be harassed by a collection agency or junk debt buyer on a collection that doesn't belong to them. Most people first respond by explaining to the collection agency that the debt doesn't belong to them and they should be left alone. Problem is that people that really owe them money say the same thing! You can't really blame the Collection Agencies for not falling for the "hey, that collection isn't mine" excuse.

So, what should you do if you continue to get calls even after letting them know they clearly have the wrong person? One option is to send them a Cease and Desist letter. Essentially, you are requesting that the collection agency no longer contact you in any manner. It would be wise to also provide any documentation, if possible, demonstrating that you are not the person they are trying to contact or collect from. To learn more, you can reference Section 805 of the Fair Debt Collection Practices Act (FDCPA).
 
This puts the Collection Agency in a precarious position and they typically have two options. They can either choose to give up and walk way or they can take legal action and file a law suit against you in attempts to collect the debt.
 
Since you will be backing the Collection Agency into a legal corner, it's best to advise an Attorney prior to sending the Cease and Desist letter to know your legal options.

Other Resources:

• Stop Calling Me!
• How to Get Out of Credit Card Debt
• From Debt to Wealth on $10 a Day

 

Watch the nightly news and you’re almost certain to see something related to credit cards and debt. Americans lead the world in credit card usage with the average credit card debt of an American household at around $8,400.  Unfortunately, not all card holders manage their cards or their debt responsibly. According to recent statistics, nearly 40% of American families annually spend more than they earn and about 60% of active credit card accounts are not paid off monthly. One of the best features of credit cards is that they are easy to use but that shouldn’t mean that they can be carelessly managed. 

Careful management includes:

Charging only what you can afford to pay off each month.

Carefully reviewing your statements each and every month.

Periodically reviewing your credit report.

Knowing your “grace period” and timing your payments so they are posted in advance of that date.

Making certain to follow these simple steps can help keep you from becoming another credit card statistic.

Other Resources:

• Mortgage Woes Boost Credit Card Debt
• Appetite for Credit Card Debt Grows
• Easy Credit Can Mean Long-Term Hardship for College Students
  

Whether you’re shopping for clothes, going to a movie, or stopping by the gas station, it’s hard to imagine getting through a day without credit cards.  Ours is a credit card economy – driven by and increasingly reliant on making purchases with plastic and often, on credit.  According to a government report issued in 2005, the U.S. leads the world in credit card usage with an average of 2.53 credit cards or charge cards per person.  But, it doesn’t take a government report to see how important credit and credit cards have become to our economy. 

In 2003, Americans charged nearly $1.5 trillion to their credit cards and, that number continues to rise.  Credit cards are and will continue to be a fact of life, at least for the foreseeable future.  For one thing, they’re more convenient than paper currency.  However, because they are so important to our economy, good credit management is even more critical.  And, that comes down to the basics such as; not borrowing more than you can afford to repay; not using credit cards for impulse purchases and making timely payments on time, every time. 

Other Resources:

• It's Far to Easy to Get Credit These Days 
• Too Much Credit
• Managing Holiday Credit, Debt and Bankrutptcy in Today's Economy