credit report Archives - Page 2 of 2 - Real Estate News and Commentary

January 11, 2010October 5, 2019

How to dispute credit report errors

Recently I told you about the growing importance of your credit report and why you need to ensure it’s accurate. The accuracy of your credit report is more important today than it ever was, not just because mortgage lenders have tightened credit qualifying guidelines, but also because of the growing reliance on credit reports from employers, insurers and other creditors to get information about you.

It is not unusual to find discrepancies or incomplete information within the report, including old credit accounts and outdated personal history. Errors in personal information and credit history sometimes occur due to transposed social security numbers and confusing people with similar names (including confusing the Jr and Sr name suffix). The Fair Credit Reporting Act (FTC.gov) requires accurate and complete data about to be reported by credit reporting companies and those providing information about you.

The first step in correcting errors is to review your report. As I have previously described, you have the opportunity to receive a free credit report from each of the three credit repositories (other factors may allow you to receive additional free reports). Additionally, since fraud and identity theft is a serious threat to your credit history and a growing concern among law enforcement; a regular review of your credit report is a good idea even if you have previously deemed the information accurate. You can contact each of the three credit repositories directly Equifax (equifax.com), Experian (experian.com), and Trans Union (www.transunion.com), or you can visit annualcreditreport.com (a central credit service created by the three credit repositories). The Office of the Maryland Attorney General cautions people when entering website addresses; when entering website addresses, accuracy is important because of the many similar commercial websites that charge for similar services.

If you determine that errors exist in your report, you must notify the credit reporting company in writing to dispute the information. To document your letter delivery, the Federal Trade Commission suggests that your letter be sent via certified mail with return receipt requested. Besides showing your complete name and address, your dispute letter should clearly identify all disputed items with an explanation of the facts as to why the information is disputed along with a request to remove the information. Additionally, your dispute letter should contain the report with disputed items circled, as well as any copy of supporting material to defend your claim.

The credit reporting company has thirty days to investigate the disputed items. The credit reporting company will forward your dispute, along with any supporting materials, to the provider of the disputed information to initiate an investigation of their own. If the disputed information is found to be inaccurate, then the provider must report the corrected accurate data to all three credit repositories. The credit reporting company must provide you notice of the outcome of the investigation along with an updated report showing any changes.

Sometimes credit reporting companies will determine a dispute is “frivolous” (often when insufficient information is provided) and will terminate an investigation. If your dispute was determined to be “frivolous,” the credit reporting company must notify you along with the reasons for this determination.

Additional and updated credit report dispute resolution information as well as resources are offered by the Federal Trade Commission (ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm), and the Office of the Maryland Attorney General (www.oag.state.md.us/consumer/edge121.htm).

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of January 11, 2010. Using this this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell

October 1, 2009October 5, 2019

Your credit report = Your permanent record

by Dan Krell &copy 2009
www.DanKrell.com

Did you have a “permanent record” in school? Well, believe it or not, you still have a permanent record; it is called your credit report. Because your credit report can influence more than your ability to get a mortgage, it’s important to ensure that it is accurate.

Many in the credit industry call the credit report a “snapshot” of your credit use; how much credit you take and how you pay it back. In truth, it’s a bit more; it’s a snapshot of your life. The Federal Reserve board of San Francisco (frbsf.org) describes a typical credit report as containing personal identifying information, credit information, public information, and inquires into your credit report. Besides indicating your name (and aliases), birthday and social security number, your credit report may also indicate your current and past addresses, current and past telephone numbers, and current and past employers. Your credit report may also indicate your present and past spouses along with their personal information!

The credit information indicated on your credit report usually includes revolving credit (such as credit cards) and installment loans (which includes mortgages, auto loans, and student loans). The information reported includes the date the account was opened, the amount loaned and/or credit limit, the type of account, any co-signer, and of course your payment history. Additionally, the report also indicates collection activity undertaken to have you repay any unpaid accounts. Collection activity can be reported for charged off credit cards, foreclosure, and for such items ranging from hospital bills to child support.

Public information refers to records kept in the county, state, and federal courts (and is available to the public). Information that may appear in the public records section includes bankruptcies, personal liens, and judgments.

Anyone claiming that they have a legitimate need to see your credit report can order it through one of the credit reporting agencies; these inquiries are listed in your credit report. Besides banks, lenders, and those who extend credit, others who may be able to view your credit report include (but not limited to) employers, landlords, child support enforcement, and government agencies.

Credit reporting agencies such as Equifax (equifax.com), Experian (experian.com), and Tran Union (transunion.com) act as information repositories and collect all the information described above. Besides collecting information about you from creditors and public records, it is possible that credit reporting agencies may accrue information from other sources too. The information that is accrued about you is analyzed to produce your risk score. Each credit reporting agency uses a complex algorithm to compute your score which is widely used in decisions to extend you credit.

Given the amount of information that is processed by credit reporting agencies, it is common for errors to appear. To ensure your credit report information is accurate, you have the right to receive your credit report from each of the credit reporting agencies once a year. You can order your credit report either from annualcreditreport.com or from each of the credit reporting agencies (see above). You can dispute any errors by following the instructions for each credit reporting agency. For additional information on disputing credit report information you can refer to each of the crediting reporting agencies above as well as the Federal Trade Commission (FTC.gov).

This column is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of September 14, 2009. Copyright © 2009 Dan Krell

January 15, 2008October 5, 2019

New legislation affects home owners and home buyers

by Dan Krell

As the end of the year is a time of reflection, let’s reflect on the new legislation that directly affects home owners and home buyers. Although this is not a complete list of new laws, here are a select few that concern taxation, eminent domain, and privacy.

Buying a home in Montgomery County will cost a bit more next year as recordation tax rates will increase effective March 1, 2008. Current recordation tax rate is $3.45 per $500 (or more commonly described as $6.90 per $1,000); the first $50,000 of the purchase price is exempt from this tax if the purchaser will live in the home. The new recordation tax rate will add an additional $1.55 per $500 (a total of $5.00 per $500) for any amount over $500,000.

Confusion about property taxes and new tax assessments will hopefully be a thing of the past as the property tax disclosure requirement will go into effect April 1, 2008. The law requires any home seller to disclose present and estimated future property taxes for the property for sale. The tax amount must contain the current state, county, and municipality tax as well as any special services tax imposed. The estimated future tax must represent an accurate portrayal of any future tax increase. Estimating future property tax increases may sound tough, but don’t worry – the Montgomery County Department of Consumer Protection is required to assist home sellers and real estate agents with the tax estimations.

Additional property tax legislation includes the Homestead Tax Credit. The credit caps any property tax increase due when the home is reassessed. For homes purchased after December 31, 2007, the law requires home owners to file the one-time application within 180 days of the purchase. All other home owners have until December 31, 2012 to file the application.

Eminent domain has been a recent hot topic. Four changes to eminent domain in Maryland went into effect July 1, 2007. The first is the requirement to file for condemnation within four years of the decision to acquire the property. Subsequent changes increased the cap on mandatory payments to the displaced: the cap to displaced property owners increased to $45,000; the cap to displaced tenants of rental property increased to $10, 500; and the cap for moving and relocation expenses increased to $60,000.

Privacy protection is always a concern. However, effective January 1, 2008, all businesses including real estate brokers are required to take “reasonable steps” to ensure that personal information is protected when client records are destroyed. Additionally, businesses are required to notify their clients as well as the Maryland Attorney General’s office if there is a security breach of electronic files containing client information.

Also becoming effective January 1, 2008 is the ability for a consumer to place a security freeze on their credit report. Without the freeze, anyone with basic information can request a credit report. If the freeze is requested, the information can not be accessed without express prior authorization of the consumer.

For more information on the new legislation, you can go to the Maryland General Assembly website (http://mlis.state.md.us) or the homepage for the County Council of Montgomery County (www.montgomerycountymd.gov/csltmpl.asp?url=/content/council/index.asp).