Wednesday, February 15, 2017

CFPB adds 23,000 Complaints to Database in December

WASHINGTON, D.C. - With debt collection continuing to be one of the primary triggers, the Consumer Financial Protection Bureau’s latest update about its complaint database indicated the bureau has handled approximately 1,080,700 consumer complaints across all products as of Jan. 1.
For December, the CFPB reported that debt collection again was the most-complained-about financial product or service. Of the approximately 23,000 complaints handled in December, there were 7,196 complaints about debt collection.
The second most-complained-about consumer product was credit reporting, which accounted for 3,837 complaints. The third most-complained-about financial product or service was mortgages, accounting for 3,762 complaints.
Agency officials noticed Alaska, Georgia, and Louisiana experienced the greatest year-to-year complaint volume increases from October to December versus the same time period 12 months earlier. The data showed Alaska was up 57 percent, Georgia climbed 46 percent and Louisiana rose 32 percent.
The CFPB added the top three companies that received the most complaints from August through October of last year were Equifax, Wells Fargo, and TransUnion.
The bureau’s latest update also highlighted complaints from Tennessee. As of Jan. 1, the CFPB tabulated that consumers in Tennessee submitted 17,800 of the 1,080,700 complaints the bureau has handled.
Of those complaints, 4,700 and 5,800 have come from consumers in the Memphis and Nashville metro areas respectively.
Consumers in Tennessee most often submitted complaints about debt collection. Officials found that debt collection complaints accounted for 34 percent of the complaints submitted to the bureau by consumers from Tennessee, while nationally debt collection complaints account for 27 percent of complaints.  
Equifax, Experian and TransUnion were the most-complained-about companies for consumers in Tennessee.

Next Post: Why Are My Credit Scores Constantly Changing?  By John Ulzheimer

How Student Loan Debt Factors Into your Credit Score:

Visit the Credit Restoration Associates Website  
Back to the CRA blog homepage:Credit Repair Va:
CRA Resources:
Credit Repair:
About CRA:

Saturday, February 11, 2017

Why Are My Credit Scores Constantly Changing?

By John Ulzheimer
The Ulzheimer Group 
One of the most common questions I receive has to do with the changing nature of credit scores. One month, one of your scores is, say, 700, and the next month it’s either higher or lower; it’s rarely the same. What is the explanation for this natural ebb and flow?
First things first: let’s dispense with a pesky myth about credit scores. Your credit score isn’t a continuously changing quantity, like temperature or body weight. Your credit score is like a snapshot; it reflects your situation at a given moment in time. As with snapshots, a new score taken weeks, days, or even minutes from now will reflect a different reality – but it doesn’t replace or update the first score; both are accurate reflections of your circumstances at the time they were created.
A credit score is created when it is calculated by one of the three credit reporting companies (CRCs—Equifax, Experian and TransUnion), based on data stored in their respective consumer-credit databases. The only time a CRC calculates your score is when some entity asks for it. Most typically, that entity would be a financial institution, like a bank, or a credit union or credit card issuer to which you have applied for credit or a loan. But landlords and utility companies may also request scores, and you may even request one yourself when you buy a score or check it through a free-score service. Each time someone makes a score request, or inquiry, a new score is calculated using the information in the credit file maintained by the CRC supplying the score. (Some of these inquiries can impact your credit score, but many others, including those you request yourself, cannot.) 
Credit scores are determined by considering a variety of factors from your credit reports, including the presence or absence of derogatory information, your types and amounts of debts, how long you’ve had credit, the variety of information appearing on your credit reports, and how often you apply for credit. These factors represent dozens of different individual metrics, each having some influence on your final three-digit credit score. Continual changes in these factors mean it’s very likely that scores based on each report will differ, at least a small amount, every time they’re calculated. But here’s the catch: because your score isn’t part of your credit reports, you may not even know about changes in your credit score unless you track them over time. 
If you do track your scores over time and discover that they are always different month after month, don’t panic. Your credit scores will migrate up and down as the information in your credit reports change. Every month, your credit report data becomes older, inquiries age further, credit card balances go up or down, and maybe derogatory information disappears or, unfortunately, lands on your credit reports. All of these things will likely cause your credit scores to be different from the last time they were calculated. This difference in credit scores is perceived as “change,” when in reality your scores have simply been recalculated based on slightly different credit report data. 
If you were to compare the information on your credit reports today to the information on your same credit reports 30 days ago, you’ll likely see many subtle differences, principally to the balances of your credit card accounts. These changes result in a different number of points you’ll earn across the many credit scoring metrics, which is why your scores are likely to be slightly different today than they were at the same time last month.

Thursday, December 22, 2016

Are American Consumers Taking on Too Much Debt?

This is a very cool infographic from Equifax. Wow!


http://2oqz471sa19h3vbwa53m33yj.wpengine.netdna-cdn.com/wp-content/uploads/2016/12/infographic-consumer-debt.jpg



Visit the Credit Restoration Associates Website 
Back to the CRA blog homepage:
Credit Repair Va
Credit Repair Resources:
Credit Repair

Monday, October 24, 2016

Did You Know… Delinquent Accounts can Only be Charged-Off ONCE - Not 29 times in a Row....Hmmm



A troubling series of lawsuits has been filed in several states, improperly accusing lenders and the three national credit reporting companies (CRCs—Equifax, Experian and TransUnion) of mishandling the way they report credit card charge-off events on consumer credit reports. 

More specifically, the suits allege—erroneously—that lenders and the CRCs are improperly treating a single charge-off as an event that recurs month after month after month, lowering the consumer’s credit score each time the event appears on the credit file.
To understand the mistaken assumptions behind these unfounded lawsuits, a bit of background is in order, starting with an explanation of what a charge-off is in the first place. A lender performs a charge-off when a consumer has defaulted on a debt, and the lender determines it will never be able to collect that debt. The lender reports the charge-off to the CRCs, who add it to the consumer’s credit files. 
The relevant account in the consumer credit file is then assigned a charged-off status, and that status is applied to each monthly entry for that account, dating back to the month that the account first went delinquent. The date of the original delinquency is known as the anchor date for the charge-off. Charge-offs remain on consumer credit files for seven years from the anchor date.
The process described here represents accurate credit reporting, and complies with standards set forth by the credit reporting industry’s trade association, the Consumer Data Industry Association. One source of confusion surrounding the process may involve the fact that an interval of several months typically passes from the time when an account goes delinquent, to the date when the lender decides to write the account off and report the write-off to the CRCs. If the consumer obtains a credit report during that interval, the account status for the delinquency month, and any intervening months, will be listed as delinquent. Credit reports pulled after the charge-off is final will show the account status for those months as charged-off instead of delinquent. 
The lawsuits allege that reporting the account status as charged-off for multiple months somehow indicates that the account was subjected to a brand new charge-off for each of those months, and that each monthly status triggers a new anchor date, which resets the seven-year clock that determines when the charge-off will be removed from the credit file.
That is categorically not the case. A charge-off is a single event which an account can only be subjected to once. Accounts cannot go into and out of charged-off status and the anchor date does not vary once it is set. Credit scoring systems, including VantageScore models, are designed to recognize the industry-standard methods for reporting charge-offs, and the models do not handle a series of charge-off statuses for a single account as multiple events.
A charge-off in a credit file is a significant negative event. It causes significant reductions in credit scores. Like all negative events in a credit file, its impact on a credit score diminishes over time. When calculating a score using a credit file that contains a charge-off, scoring models use the anchor date to properly age the defaulted account.

Link to Original article: https://thescore.vantagescore.com/article/291/did-you-know-accounts-can-only-be-charged-once

There is never a charge for a consult and good advice. Call today: 804-823-9601. Visit us on the web: http://www.CreditRA.com. 

We are honored to help you repair your credit profile to qualify to purchase a new home for you and your family!


Next Article: How Student Loan Debt Factors Into your Credit Score:


Visit the Credit Restoration Associates Website  
Back to the CRA blog homepage:Credit Repair Va:
CRA Resources:
Credit Repair:
About CRA:


Sunday, October 16, 2016

Credit Expert Teaching for Longwood University SBDC

It was an honor teaching three classes for Longwood University SBDC. There should be more education about business credit and personal credit in our schools.


For a full transcript of each of the two hour classes, please send an email to me requesting them: robert@creditra.com.

To discuss any credit issues, you can reach me at the office: (804) 823-9601. There is never a charge for good advice.

Robert W Linkonis Sr
President
Credit Restoration Associates
Alliant Business Credit & Funding






Tuesday, August 2, 2016

Og Mandino - The Choice

I just ordered this book for all of my leaders. I recommend that you do the same.


This is the offer that I used for the discount. : Credit Restoration Og Mandino. You should be able to get the really good deal, or else click HERE. Give this book to everyone in your organization. 


<iframe style="width:120px;height:240px;" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" src="//ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=US&source=ac&ref=tf_til&ad_type=product_link&tracking_id=c010b1-20&marketplace=amazon&region=US&placement=0553245767&asins=0553245767&linkId=623160554bebc85fd25d6e8e4d2ef353&show_border=false&link_opens_in_new_window=false&price_color=333333&title_color=0066c0&bg_color=ffffff">




Trending DataThe New Way that the Credit Bureaus Rate You.

The History of FICO

Visit the Credit Restoration Associates Website 
Back to the CRA blog homepage:
Credit Repair Va
Credit Repair Resources:
Credit Repair


Monday, July 4, 2016

Trade-level derogatory entries in your credit file, and why to avoid them




Many kinds of entries on a credit report can lower your credit score, but some are much more harmful than others. The entries that do the most damage and that tend to keep your score down for extended periods of time are what lenders call derogatory events—or just plain bad ones. Lenders view derogatory credit-report entries as evidence of mismanaged debt. That is why credit-scoring models typically treat them as grounds for steep, long lasting score reductions. That is also why you should avoid them at all costs.

This four-part series of articles is designed to help you “steer clear” of derogatory events, examining them in detail so you know what to avoid—and what the consequences could be if you don’t. We are covering the three categories of information that can be considered derogatory: The first part examined public records; part two looked at credit report narratives, this installment and part four will look at the somewhat complicated topic of non-performing trade lines—a fancy term used to describe accounts that aren’t being paid as agreed upon. Trade, as used in the credit industry, refers to an account on your credit report. So, a Bank of America credit card on your credit report, would be referred to, formally, as a trade line.


A trade line can contain a variety of negative entries, including current and historical late payments, past-due balances, and indicators of default or other serious delinquency associated with the account. This month we’re going to tackle historical late payments. Just for clarity, a late payment on a credit report isn’t the same as a late payment on an account. I know that doesn’t make any sense, so let me clarify. In order for you to be late on one of your credit accounts, you have to not make a payment on or before the due date. In order for a late payment to show up on your credit reports you have to be a full 30 days past the due date.


So, if a late payment shows up on your credit reports, then you know you went at least 30 days late, not just a few days late. In other words, there’s a more rigorous standard used in credit reporting. For the past several decades the three national credit reporting companies (CRCs—Equifax, Experian and TransUnion) have accepted late-payment reporting by creditors. So, if last year you were late on your credit card account by 30-59 days multiple times, it’s likely a record of those previous late payments will appear on your credit reports, associated with each respective account. And yes, those late payments do have the potential to lower your credit scores.


There are a variety of ways historical late payments are represented visually on credit reports. The most common is for the credit reporting companies to display a payment-history grid for each account, which indicates if you’ve made any late payments, how many days you were late, and when you were late.


Link to original article: HERE 


Next month, we’ll take a deeper look at trade-level credit-report entries, and additional types of records to avoid.


Trending DataThe New Way that the Credit Bureaus Rate You.

The History of FICO

Visit the Credit Restoration Associates Website 
Back to the CRA blog homepage:
Credit Repair Va:
Credit Repair Resources:
Credit Repair: