Credit Card Theft Hurts Retailers And Credit Card Consumers

Thanks to the zero liability policy offered by most credit card issuers, if your credit card is stolen you’re typically only liable for a very small portion of the unauthorized purchases- if any. Even if a thief charges thousands of dollars on your credit card, a zero liability policy means you don’t pay for it.

You’re not the only one affected by your stolen credit card, though. The retailers who accepted the stolen credit card (not knowing it was stolen, of course) lose price of the merchandise purchased with the credit card, and also considerable amounts of time and effort as they attempt to recover some of their costs.

Who do you think pays for the costs of credit card theft? If the cardholder of the stolen credit card is not required to pay for the unauthorized charges; and the thief is rarely caught; and the retailers are out the merchandise that was purchased with the stolen credit card- who pays for all of these financial damages? Consumers. Retailers raise their prices and credit card issuers raise their interest rates and fees to help compensate for credit card theft.

So while the cardholder of the stolen credit card doesn’t pay for the unauthorized purchases; the rest of the consumers who are already paying for their purchases are paying higher fees to compensate for the stolen cards.

Attorney General Larry Long spoke to the South Dakota Retailers Association about loss prevention in Sioux Falls on April 3, 2007. Long says that retailers need a plan for how to catch shoplifters, in order to alleviate some of these escalating costs. The seminar that Long spoke at was sponsored by the South Dakota Retailers Association and aimed to assist retailers for developing strategies to stop theft, fraud and scams.

Statistics provided by The Retailers’ Association indicate an annual inventory loss of over $37 billion nationwide for theft from employees, shoplifting, vendor fraud and administrative errors.

The Vice President of Loss Prevention for the National Retail Federation based in Washington, DC, Joseph LaRocca, said they have developed a system that law enforcement and businesses can use in order to track nationwide theft. It’s a secure online database system created because LaRocca insists that the issues of theft, fraud and scams effect everyone.

Attorney General Long, and the office of the Attorney General are not directly involved in the prosecution of shoplifters and thieves, but the state assists people and businesses who have been targets of such crimes. The local law enforcement handles the prosecution. While the goal is to be advocates of consumers, Long realizes that doesn’t necessarily mean in order to do that we have to be on the opposing side of merchants and retailers.

It’s estimated that only about one out of every eight or nine cases of fraud are reported to the state’s consumer protection office. Scams and fraud are extremely common, and more so than most people fully understand. Long says, “There is not a week that goes by that we don’t have at least one person who says they’ve been a victim of such a scam.”

Under laws in South Dakota, retailers can attempt to recoup lost merchandise and expenses from the thieves. In order to effectively do this, Long believes that retailers must have a plan in place to catch shoplifters.
A plan would require retailers to effectively and properly detain thieves until law enforcement arrives once they are identified as thieves, and as Long suggests, there should be a standard policy in place for handling such activity.

Identity Theft: They Caught Him

His hard earned money? Gone. Creditors on his back everyday. The cops knocking on his door. His family strained to the breaking point. He didn’t do anything wrong but my business partner’s life got turned upside down afew years back. He became a victim of what is now the fastest growing crime in the world. Identity theft.

According to the Federal Trade Commission, since 1999 over 27 million people in the US alone became victims of this epidemic 10 million more last year. Harris InterActive,a marketing research company, reports that between 2002 and 2003 more roughly 19,178 people per day fell victim.

Your identity can be stolen in many ways. For my partner, the thief gained access to his social security number and address then applied for a series of loans in his name. When the bills came due, guess who the creditors and law enforcement held accountable?

He and his family felt the full impact. Identity theft can cripple and even destroy a person’s life. The time loss trying to recover your identity as well as the out of pocket expense U.S.Treasury Secretary John Snow calls identity theft “the greatest threat to consumers and far more insidious and harmful to our national welfare than many people realize.”
The internet doesn’t make it any better with its almost limitless access to information but a great deal of identity theft still comes from the offline world. Wherever it comes from the goal stays the same. To get your personnal information and steal what belongs to you for as long as possible.

In many cases, this can lead to the victim filing for bankruptcy or worse. As reported by the Orlando Sentinel, one man whose identity got stolen recently spent 54 days in jail before authorities realized their mistake.

Yet even when the thief finally gets caught, victims find out all too often the worse part still lies ahead. The recovery of their identity. For my partner, that meant never ending battles with the same credit bureaus that previously gave him good ratings.

They destroyed his credit almost overnight eventhough he did everything they told him to get it restored. The agencies refused to clear his record and instead, started sharing his information with each other. His mortgage rates went thru the roof. He paid more for everything but still got declined. With all of this came the burden and fear of him not knowing if he would ever recover his identity.

Six years later he finally did. He started working with a company that within 90 days restored his credit. His mortgage rate dropped and he went back to paying full price for everything like the rest of us.

And like my partner, all of us risk becoming victims. In San Antonio Texas, television station KENS 5 spoke with a man convicted of identity theft who warned “Don’t take for granted what you have because anybody could take it away – I mean at the snap of a finger.”

He would know. The ways of stealing an identity have turned this crime from nuisance to worldwide crisis.

Free Credit Report – What Is An Employer Looking For In A Credit Report?

If you’ve ever applied for a job or are in the process of looking for a job now you may be wondering why your future potential employer wants a copy of your credit report. Of course you always want to maintain a good credit report and FICO or credit score because there are many ways it can be used for or against you including with potential employers.

A credit report to an employer is just another means of gathering more information about you and gives them background information. They can find various ways on your credit report to verify what you’re reporting on your resume. For example, you may have included past employment information on a credit card or loan application and they want to see if it matches, if you have left something out or have used different dates.

If you’re applying for a job that involves handling money such as bank tellers, financial loan officers or any finance-related business or cash handling businesses such as restaurants or retail operations they’ll want to check you out thoroughly.

Also if you’re thinking about working in any kind of business where you would be handling valuables such as jewelry that could easily be hidden you may go through a more thorough background check including your credit report and credit score.

A prospective employer will look for bankruptcies, although they cannot reject you for this, to see how you’ve handled your money and finances in the past.

They’ll always certainly try to match your past employment history with what you’re reporting on your resume so make sure you get your dates right. You don’t want to be rejected because you forgot what dates you worked for a particular business or company.

Employers will check your credit report for any evictions from past housing. Of course some landlords and property management companies don’t report evictions but a good reason to see what’s on your current credit report for yourself so you know just where you stand.

They’ll also look for any repossessions, foreclosures or reports from collection agencies and verify your social security number.

A big concern they have is theft by employees. To cut down on this they look for bounced checks on your credit report or any other indications you’re not honest.

Your employer does have to get your written permission to take a look at your credit report. So make sure you get a copy of your current report and look it over so you know what’s in it. You can get a free personal, online annual credit report in an instant. Even if you had one a year ago you want to get a free report now. You want to look over your credit history to know where you stand.

To answer the question what is an employer looking for in a credit report this is basically it although there are a few other things. Get you credit report as soon as possible so you’ll be fully informed when you apply for a job and it’ll pay off for you. You don’t want to be turned down on the basis of something in the report that you aren’t aware of or just overlooked.

Problem: “I have a debt with XYZ company that has gone into collections. I got phone calls from a law firm trying to collect from me. I asked for debt validation and all that I received from them was a copy of the latest card statement. This account had earlier been pursued by another collection agency, which gave up midway. Yesterday, I received a summons from court upon which I called the office of XYZ to enquire. The representative who picked up my call said she had no records since the account had gone into collections.

My question is, if they have provided the right documents in response to the validation letter that I sent them? I do intend to pay back the debt but right now have some financial problems. What should I do about the summons? Do I have a case in court?”

-James Barto

Solution: The first most important thing is to not ignore any summons from the court. Reply to the summons within the due date mentioned. If there is anything you want the court to know, you may mention it in your reply. Besides, you will also be given an opportunity to defend yourself in court. So, you may collect as much evidence to prove your point. The final verdict, however, will be given by the judge.

The law firm that tried to collect from you must be the CA that your Original Creditor (OC) sold the debt to. When you send a debt validation letter to a collection agency, they are required to send you:

• Written proof that they hold your debt and that the debt has been sold off to them.
• A statement of the payment history of your account till date. You can find out if there has been any extra fees charged, and if it has been, then how the CA has charged it.
• A copy of your original contract to prove whether or not you still are liable to pay off the debt. The CA may also provide account statements from your original creditor.

If the CA does not validate properly you have the right to provide that evidence in court. Tell the judge that you have not received proper validation for your debt.

If there is time after you send your response to the summons, you may call the CA’s office and try and speak with them regarding your debt. If you intend to pay back the debt then speak with the CA and let them know about your situation. Tell them why you have defaulted on the loan but let them also feel that you sincerely wish to repay the debt. If you can arrange for some money, then try and settle the debt outside court. It may take you some time to convince the CA, but you should at least try. You will find more solutions to your credit related problems in numerous credit forums across the internet.

As most of you know, short sales do negatively affect your credit. With regard to your FICO Scores, the credit ramifications are very similar to that of a foreclosure. In fact, the largest difference between the two on your credit report is the ability to obtain a mortgage. After a short sale, it is possible to obtain a mortgage in as little as 24 months (or even sooner, more on this later) whereas with a foreclosure, it typically takes 3-7 years for people to qualify for a home mortgage.

Moreover, if you’ve gone through any of the above scenarios, most likely your credit report is riddled with 30/60/90 day late payments which further reduces your FICO score, especially 90 day late payments (which has often been said to be as bad as a short sale or foreclosure itself).

So here is the question of the day:

Can Short Sale Credit Repair & Foreclosure Credit Repair Companies truly REMOVE these items from your credit report?

Many believe that this is not possible simply because of the fact that the items are negative. Well, as a nationally recognized short sale expert, I am here to tell you that this is far from the truth.

Within the Fair Credit Reporting Act, there exists a loophole that attorneys have taken advantage of for years on behalf of their clients. The key to removing negative items from your credit report is not to question the accuracy of the items, but rather, how verifiable the items are, according to FCRA requirements.

This is not something that people should try on their own. There is a specific list of items that must be documented in the event of these kind of disputes, and without proper knowledge of what these items are, creditors will not take you seriously. This is why attorneys are best known for this line of work. There are multiple, virtually unknown resources out there that have been proven to reduce & eliminate the typical consequences of a short sale & foreclosure. I highly suggest taking advantage of these built in “short-cuts” within our system.

Now Pay Close Attention –

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If you get your free annual credit report and discover there are some inaccuracies, you will want to dispute the information and work to get it corrected on your credit report. When you dispute the information, you are protected by the Fair Credit Reporting Act which requires that all credit reporting agencies (like Experian, TransUnion, etc) respond with an investigation of your creditors.

If the information disputed is found to be inaccurate- it will either be removed from your credit report or corrected within thirty days. Also, if the creditor is unable to proof their information is correct, it will be considered inaccurate and will have to be changed.

What Might Need to be Disputed?

When you get your credit report, you will want to look out for the following common areas that mistakes are found:

Inaccurate details- you may find that creditors have reported late payments to your file that you don’t agree with. If you have back up information, like canceled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.

Old, outdated information- on your credit report, negative account information can only be reported for seven years after the first delinquency; except Chapter 7 bankruptcy.

Fraudulent Accounts–definitely look out for accounts appearing on your credit report that you didn’t open. This could signify that you have been the victim of identity theft, or that account information from someone with a name similar to yours has been mixed up with your information.

How to File a Credit Dispute

You should file your dispute in writing. This includes mailing a letter to the credit reporting agency or using their online form for filing disputes. The Fair Credit Report Act gives 30 days for the credit reporting agency to investigate the dispute claim and come to a conclusion on the situation. You will then receive the written results and a free copy of your credit report if any changes have been made.

The best way to file a dispute is to make a photo copy of your credit report and enclose it with your letter. Circle the dispute on the credit report and number it. In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.

For fast processing, be sure to include:

Your full name and mailing address
Your date of birth
Social security number
Name of creditor and the account number of the item you are disputing
And of course, don’t forget to sign it!

Alternative Dispute Options

The other method of disputing information found on your credit report is to contact the creditor directly. If you contact a creditor and indicate that they have reported information incorrectly to your credit report, the FCRA states that they cannot then report that item at all to the credit report without including a note that you are disputing the information. Of course, if the information is found to be inaccurate or an error, it must be corrected on your report or removed.

What to Do if The Dispute Doesn’t Result in a Settlement

It’s not always simple to get a settlement on your dispute. If following the dispute process leaves you with an unsatisfactory result, you can then file a dispute with the National Consumer Assistance Center. Having the case re-investigated may or may not result in the deletion of an item off your credit report; but you can bet that you will need to have documentary evidence to get the credit bureaus to remove any information. Unfortunately, if you are successful in having items removed from your credit report, you may find them to reappear due to the instance of the creditor!

Another option is to contact your Attorney General’s Office if you believe the credit bureau has violated the FCRA. You have the option to sue the credit bureau and/or creditor in either state or federal court if you feel they are in violation. If you win, all of your attorney fees and damages w ould be reimbursed to you.

Credit Repair and BBB Reports

Thinking about repairing your credit? If so, you have two options: do it yourself or hire a company to handle it for you. If you choose to hire a company, make sure you do a little research. Focus on items that the company itself does not create.

Testimonials are nice, but no company is going to print a bad one. Many are just made up. Also, membership in organizations may be beneficial, but sometimes organizations are created by companies just to help make them appear legitimate. Some deceptive companies try to trick potential customers into feeling comfortable. Separate websites are created and professional logos are presented all in an effort to make the alleged third party organization appear legitimate. Suprisingly, several companies use this deceptive tactic so always confirm that the organization is independent and credible. One organization that is definitely independent and credible is the Better Business Bureau.

The Better Business Bureau (BBB) is a great source of information. Before working with any credit repair company, you should check their BBB reports. In the same way that your own credit reports are designed to inform potential lenders of your credit risks, BBB reports are designed to inform potential customers of the potential risks of working with a particular company. To view a BBB report, visit www.bbb.org. By visiting the site directly, you can be assured that the information you are receiving is correct and accurate.

There are two major legitimate companies that operate in the credit repair industry: Ovation Credit and Lexington Law. If we look at their BBB reports, we can learn about other client experiences.

Ovation Credit is listed as an accredited business. If a business has been accredited by BBB, it means BBB has determined that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. Ovation Credit has an A- rating. (Think of school, A is best, F is worst) Ovation Credit’s report has the following information:

Ovation Credit’s BBB report shows that the BBB processed a total of 8 complaints about Ovation Credit in the last 36 months. Of the total of 8 complaints closed in 36 months, 1 was closed in the last year. Here is a breakdown of the complaints:

Service Issues(2 complaints)

Credit or Billing Disputes(2 complaints)

Product Quality(1 complaints)

Contract Disputes(1 complaints)

Guarantee or Warranty Issues(1 complaints)

Repair Issues(1 complaints)

Lexington Law is not listed as an accredited company. We were surprised to see that. Lexington Law also has an A- rating. Lexington Law’s BBB report shows that the BBB processed a total of 283 complaints about Lexington Law in the last 36 months. Of the total of 283 complaints closed in 36 months, 89 were closed in the last year. Here is a break down of the complaints:

Advertising Issues (6 complaints)

Billing or Collection Issues (95 complaints)

Contract Issues (14 complaints)

Customer Service Issues (24 complaints)

Delivery Issues (4 complaints)

Guarantee or Warranty Issues (25 complaints)

Product Issues (1 complaint)

Refund or Exchange Issues (73 complaints)

Repair Issues (3 complaints)

Sales Practice Issues (9 complaints)

Service Issues (29 complaints)

Both companies have tens of thousands of credit report repaircustomers, so it is fair to compare their reports directly. Also, any company that handles that many clients will have some BBB complaints. That’s consistent with the old saying that you can’t please all the people all the time. However, based on these reports, it appears that there is a greater chance that you will have a better experience with Ovation Credit over Lexington Law.

Of course, this is just one criterion and there are more companies out there that you may want to consider. Just be sure to check BBB reports as a source for information when considering any company.

Having negative credit can affect your entire life. Not only are banks, lenders and credit card issuers pulling your credit file, employers are now using credit history as a determinant in hiring. It is getting harder to escape the consequences of having bad credit. Not everyone with bad credit is late paying all of their financial obligations. You may be timely with your rent, utility, cable, cell phone, child support and even daycare obligations. Now you have an alternative way to prove your creditworthiness. Payment Reporting Builds Credit (aPRBCa) is a national consumer reporting agency and credit bureau which collects, stores and reports bill payment information.

Payment Reporting Builds Credit (aPRBCa)

Since 2002, PRBC has been collecting, storing, scoring and reporting data for consumers and small businesses in accordance with Fair Credit Reporting Act. PRBC gives the consumer and small business owner a way to build a credit file and demonstrate creditworthiness that is different from the traditional credit reporting agencies. Payment Reporting Builds Credit produces a PRBC credit report and bill payment score based upon your payment history with non-reporting rent and recurring bills which are not traditionally reported to Experian, Equifax and Transunion credit reporting agencies. A PRBC credit report can show you have paid your bills on time. They maintain your bill payment history in your file for up to seven years and this information will only be shared with your permission.
Types of information contained in PRBC credit report

The information contained in a PRBC Report include rent, utility, cable, telephone, insurance, cell phone, loans from friends and family members, child support and even daycare provider payments.

How it works

Consumers or small business owners sign-up for enrollment and once enrolled, you will be able to document positive payment history in a PRBC credit file by reporting your payments for these types of bills. You will be able to view your report for free at any time. When applying for credit you can request the credit issuer pull your PRBC report and the credit issuer will pay a fee to PRBC to view your report. Not all credit issuers will agree to pull your PRBC report.

How much does it cost to create a PRBC report

While there is no fee for creating a PRBC credit file, there is a fee to the consumer for PRBC to verify the timely payments you report to your file. Credit issuers requesting your PRBC credit file also pay a fee to view your file. If you choose to use one of PRBC’s online bill payment partners, you can request your payments be reported to PRBC automatically as you pay your bills and no verification fee will be charged.

The cost for verification of your credit file

There is a six (6) month minimum payment history requirement in order to have your payments verified. After the six-month payment history requirement has ended, the cost of verification will vary depending on the type of information you request verified. For instance, rent payment history verification may be $20.00 while utility payment verification may be $15.00. You can request package deals for verifications which include cable, phone and electric bills.

Who views PRBC credit files?

Upon your consent PRBC sells credit reports to lenders, banks, employers and other companies when you apply for housing, a mortgage loan, credit, insurance, or employment. PRBC does not sell your information to telemarketers or other marketing firms. Unlike the three major credit bureaus, you can view your PRBC report as often as you like, free of charge. You maintain control over who will view your PRBC report.

Not all credit issuers, lenders and employers accept PRBC reports. You will have to inquire and request this type of report supplement your traditional credit information. Recently, Fannie Mae and Freddie Mac began accepting PRBC Credit Reports for underwriting purposes. A PRBC credit report may be an excellent way to increase your chances of getting approved with good rates when you apply for credit. For more information on Payment Reporting Builds Credit visit their website at www.prbc.com

For tips on improving your credit score visit: Rebuild Credit Scores