Credit Protection and Identity Theft
Building a Better Credit Report on the Federal Trade Commission’s site: www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
Identity Theft resource center on the Federal Trade Commission’s site: www.ftc.gov/bcp/edu/microsites/idtheft/consumers/deter.html.
Provide answers to three of the following questions based on your readings and your personal experiences. Answers should be 100-to 150-words each.
1. If you find errors on your credit report, what steps would you take to correct them?
One very important thing is to document everything you do (dates and times of phone calls, people you spoke with, what they said, what your action was, etc.), and keep copies of everything you send them. Don't send original documents, just send copies. Remember to be aggressive and persistent. This process may take a while usually three to six months. Re-reviewing your credit report when you get a written response from the credit agency, you'll also get a new copy of your credit report. If any information is changed on the report, the CRA cannot change it back unless the creditor provides proof that it was accurate. You'll receive the contact information for the creditor or merchant so you can begin your battle (if you know you're right).
2. There are many organizations that claim they will repair your credit for a fee. From your readings, should someone use a credit repair service? Why or why not? What are some actions these organizations can take that should be a red flag?
Some credit repair clinics use practices that are fraudulent, deceptive, and even illegal stealing the credit files or Social Security numbers of people who are under 18 or have died, and substituting these for the files of people with poor credit histories, and advising clients to create a new identity by applying for an IRS Employer Identification number (EIN), a nine-digit...