Attachment 2 Santa Ana. California 92701 April 25, 1990 Dan Marx Legislative Update BHA Consumer Action Agency 560 Herndon Parkway Ste 120 Herndon, VA 22070 Dear Mr. Marx: I enjoyed reading the Legislative Update article for the March/April 1990 Vol 10 No. 2 issue of Bankcard Consumer News Newsletter. Many thanks to the Congress Representatives Richard Lehman and Charles Schumer for showing an interest in helping us with our credit needs. I would like to also suggest the following area be also included in the current bill or a future amendment to the Fair Credit Reporting Act (FCRA). The Credit Card Companies as well as the Credit Bureaus should be required to cross reference the identity of the person to whose file they are reporting information into. That is, they should use one's birthdate, social security number, driver's license, country, state, city of birth and/or mother's maiden name before automatically reporting information. I spent three to six months with TRW, CBI and TRANS UNION CREDIT BUREAUS, trying to get a wrong social security number, a fictious husband and a collection account off my record. I found myself making threats to the credit bureaus of suiting them in order to get them to do their research so that I could reapply for credit or have them forward letters to the companies that had turned me down because of that incorrect information. I am currently having trouble getting a copy of my credit reports from the bureaus even though I sent them copies of the denial letters of creditors. Many thanks to those who are working so hard at helping us get more credit protection. Dear Sirs: I cannot resist your invitation to comment on credit bureaus, as per the issue of Bankcard Consumer News just received. I have two matters to suggest for legislative consideration. One is that when you are provided with a copy of your credit report by one of the reporting agencies, it takes an expert with patience and a magnifying glass to understand the codes, symbols, and what it all means. The explanatory type on the back of the forms is not only small, it is in colored ink which makes it even harder to read. How can one ask for a correction when one can't even interpret what's good, bad, or indifferent on a credit report? My major complaint is that the credit agencies seem to have an attitude that they are there to ferret out anything negative that might cause credit to be denied, and the public be damned as far as trying to present a fair or accurate picture of a creditor. I went through divorce a few years ago, and as a consequence of that and a business partner's undeclared bankruptcy, I wound up with a few bad marks on my record. Forty years worth of good credit suddenly made no difference to the "bean counters"--I was branded with the scarlet letter. When I attempted to have a statement added to my record at TRW to the effect that certain delinquencies were due to our estate being hung up in court during the divorce, and that some of the credit card bills were my wife's and not mine, I was told that they would not accept such a statement, which was an excuse andhot a disclaimer of the accuracy of what was reported. When I persisted in trying to get some things corrected, as I was advised I had a right to do, I finally wound up talking to a supervisor--identified as a "Ms. Gonzales," which was probably nom de guerre--who told me haughtily that since they suspected I had been advised by a credit repair firm, they didn't have to do anything to correct my record. Period, end of conversation. The only "credit repair" counsel I had received at that time was a conversation with my banker, who read through the TRW report and showed me the things that a bank would typically look for in approving or denying credit. In order to lease a new car two years ago, I had to go to a lease company and say, "If you punch me up on the credit bureaus, you are going to find these three items which probably would be cause for disqualification. Here is verification that all three items were taken care of some time ago (letter from bank, copy of tax and court records) even though the credit agencies refuse to change their records." I got the car. Small wonder that whenever conversations turn to the subject of credit and credit reporting agencies, just about everyone pitches in with an unpleasant experience. Small wonder that people sometimes feel like they are helpless. No amount of income matters, no decades of buying houses, raising families and paying bills counts, to the aloof and almighty beancounters who see us as dangerous blips in the Richter Scale of life. Stub your toe once and you're dead. Not only dead but disgraced. The "Legistative Update" article in the March/April 1990 Bankcard Consumer I would like to have the following considered: o Item 1 under "both bills would" should include a specific time in days from the time the consumer inquire. Item 2 under "Lehman's bill" Items that has a zero balance for one year be removed from the file provided that they have not been Item 4 under "Lehaan's bill" to include credit card company that Tran Union Credit Information Co. Charges $25.00 to obtain a copy of ones Enclosed is a copy of my credit report which has information pertaining The "In File Since" is incorrect; in 58 I was 14 years old. I have never established credit under the name I have never lived in Texas. I have just started to get the information corrected. Sincerely, I am very interested in the events surrounding the credit bureau controversy. I have been "burned" several times by irresponsible use of credit bureau information and by inaccurate reporting as well. The biggest flaw in the system permitting abuses as I see it, is the ability of subscribers to access a file by remote terminals. In my case, I was being denied a mortage because of the apparent default five years previously on a bill totalling $7.50! The banker violated regulations by telling me what debt to research. It was an old bill for a rented musical instrument which was incorrectly reported, or rather not removed from my credit report at the time the instrument was returned to the me his billing was not handled in-house, the next month's rental had been chargedbeing never paid, and never rebilled either it remained on the credit bureau record. The credit bureau allowed the addition of a manual file explaining this situation. BUT the electronic users do not bother to request the manual files. I have questioned more than one remote user about this situation, and they all stated that they do notice "flagged" files, but "do not bother" to investigate further. One even stated that eventhough the amount in question was very small (in my case only less than $10) he would consider that delinguent bill "an indicator" and deny credit, regardless of other A+ account standings and three paid-off mortgages. More recently, I wasdnvestigated by Equifax, for a license, and Equifax advised me to check my credit file. Checking revealed a large number of inaccuracies including: "former address" in a city I have never lived in. outstanding account with Belk, where I have not had an account for changed their number system and in process had fouled up In both instances, I benefitted from advice given by credit bureau subscribers. But the burden of proof was on me and was no easily obtained. Something needs to be done to limit electronic access. Thank for all your help. Sincerely. This is a follow up to our telephone conversation detailing my experience with the credit Bureaus, particularly TRW. Six Items currently appear on my file with TRW: (1) Sovran Bank/Md A call to the bank The report shows 2 late payment In 48 month. (2) J.C. Penney Merchandise purchased This account is listed as being in collection. me with a $0.00 balance. my credit slip which apparently was misplaced when I moved. To date, this account is still in dipute and I have not heard from TRW. (3) Citicorp/Choice This is a current account in good standing; but it does not belong to me. I requested that it be removed. (4) General American Financial - 2 accounts ($600 and $400). These two accounts are listed as chargeoffs. A call to GAF verified that these are not my accounts. GAF sent me a copy of a TRW correction card which they promise to send to TRW. (5) 1.C Systems This account is listed as "No status" and balance is "less than $100". r the six items appearing on the TRW report, all six proved to be either inaccurate or Incorrect. My experience with TRW has been educational. A reading of the FAIR CREDIT REPORTING ACT which you sent me does not provide any means to enforce the credit bureaus to obey provisions of the ACT. If the bureaus refuse to follow the law, the only recourse I have is to sue the bureaus which can be quite costly. |