Martin Pelmore Add Credit Info to Credit File

Sample Letter 7 – Request to add Credit Information

Your Name
123 Your Street Address
Your City, ST 01234

Big Credit Bureau
Their Street Address
Some City, ST 56789

01/01/2011

Dear Credit Bureau,

This letter is a formal request that you include the attached information to my credit report.

Credit reporting laws ensure that bureaus report only 100% accurate and complete credit information. Every step must be taken to assure the information reported is accurate, complete, and correct.

Federal law also requires that you maintain reasonable procedures in your operations to assure maximum possible accuracy and completeness in the credit reports you publish. To that end, I may supplement my credit report with relevant credit history, so as to present a more complete and fair picture of my consumer credit experience and payment history. In this regard, you are respectfully directed to include the information enclosed as part of my credit history.

You are further directed to supply a corrected credit profile to me, as well as all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes.

Additionally, please provide the name, address, and telephone number of each credit grantor or other subscriber.

Under federal law, you have 30 days to complete this request. Be advised that the description of the procedure used to determine the accuracy and completeness of credit history information is hereby requested as well, to be provided within 15 days of the completion of your efforts.

Sincerely,

your signature

Your Name
SSN# 123-45-6789

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Martin Pelmore Building Good Credit

Building Good Credit
The basics of good credit start with having three open trade lines, with twelve months of good payment history. For example, get three credit cards, even secured credit cards, and use them responsibly for a year. Charge only small purchases, such as your groceries and gas for your car, and always, always, always pay on time, every time, and in full if you can manage. Do not foolishly fall back into a poor credit ituation fter all of the hard work just to get to this point.

Another way to get some good credit history is by getting and paying a loan. Borrow $10,000 from your bank to use for a $10,000 certificate of deposit (CD). You pledge the CD as collateral for the loan, and they hold the CD for safe keeping. Of course, there is some expense to you involved, you will have to pay a small spread on the loan. For example, if the CD pays 4% and the loan is at 8%, so your cost is 4%. You may be able to arrange to have the CD interest paid automatically against the loan payment, with the rest deducted from your checking account, with the final balance of the loan due when the CD matures. Make sure to pay the loan monthly, to create a pay history on the loan. Also, make sure that your bank agrees to report the loan to the credit bureaus, and request that it be listed “secured” and not “secured by CD”. This is just an example, and should work with any amount of money. Of course, keep in mind that the larger the loan, the greater the loan costs in interest. Your credit rating will improve with a good payment history.

If you have good payment history which is not reflected on your credit report, perhaps because the lender does not report to the credit bureaus, you do have the right to have this information included. Obtain from your lender a current payment history or similiar statement, something that shows that you have paid regularly, on time, and without penalties, for a period of at least 3 months. Use Sample Letter 7 to get the credit bureaus to include this history in your credit report. Remember, follow the mailing instructions.

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martin pelmore “New Credit File” Scam

The “New Credit File” Scam
By now, you have undoubtedly seen many ads and some Spam e-mail regarding a “fool-proof” way to create a “new credit file”, otherwise know as “File Segregation”.

What is “File Segregation”?

File Segregation, (known as ‘Getting a New Credit File’) is the process of obtaining a separate identification number, usually a federally issued EIN (Employer Identification Number) or TIN (Taxpayer Identification Number), and using it in place of your Social Security number when applying for credit. This is intended to shield an applicant’s true credit history from an inquiring agency. So far, this may sound like a reasonable idea.

So, what’s the scam?

The are many, many sites and scammers offering File Segregation Services, and each in turn is shut down by government investigators, but not before many people fall prey to the site operators first. What these operations are trying to do is to give you a “new identity”. You pay their fee and sign up for their services. Then you are directed to apply for an Employer Identification Number. Sometimes, they even provide you the forms and some instructions on how to fill them out.

When you get the EIN, you will be told to use that instead of your Social Security number when you apply for credit. They’ll probably also tell you to use a new mailing address.

OK, so what’s wrong with “File Segregation”?

Basically, some of the acts to required accomplish this new credit file are ILLEGAL!

First, you are applying for an EIN, when in fact you have no intentions of using the number provided by the IRS for the intended purposes. Since the form requires you to sign it under penalties of perjury, well, you can see the problem there. You can view the application form at http://ftp.fedworld.gov/pub/irs-fill/fss4.pdf.

Second, under the Federal Trade Commission’s Credit Repair Act, it may be a felony to use a false identification number.

Third, if you use any means of interstate commerce, such as the mails, telephone, or fax, to submit an application for credit, you can also be prosecuted for mail or telecommunications fraud.

And finally, if a creditor is damaged (they lose money) because you defaulted on a loan obtained by an application with false statements, they can sue you for fraud as well.

Though it may be tempting and a quick fix for your present credit problems, it could cost you thousands of dollars and maybe even jail or prison time. And while you will have a second file for a while, it will not take very long for the credit bureaus to catch on. This scam has been around long enough that the credit bureaus are quite familiar with it, as soon as they detect it, they will merge the real and the “new” files, with an additional notation that you are using a false SSN.

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martin pelmore How Long Items Stay on a Credit Report

martin pelmore How Long Items Stay on a Credit Report
In most cases, bankruptcy will remain on a credit report for 10 years following the discharge of the bankruptcy. Other entries remain for about 7 years from the date of the last activity. This means that, generally, the 7-year clock is reset whenever you generate any activity on a non-delinquent account, including making a payment. But once the account has gone and remained delinquent, the clock cannot be reset. Some unscrupulous creditors will try to reset the clock by reselling the account, but this is not correct. The FTC has made their position clear on this. Also each State has a statute of Limitation.
Current law generally prohibits consumer reporting agencies from including in a consumer report accounts placed for collection or charged to profit and loss which predate the report by more than 7 years. The law now specifies that the seven-year period with respect to information concerning a delinquent account charged to profit and loss may begin no more than 180 days after the commencement of the delinquency.
Congress intended to establish a single date — the start of the delinquency — to begin the obsolescence period (7 years plus 180 days). This avoids the “multiple date” problem that arguably existed prior to the 1996 amendments to the law. Thus, the date of the “commencement of the delinquency” that led to the creditor’s chargeoff or collection action would be the earliest date from which the account was continuously delinquent, plus 180 days.
The start of the 7 year period is now described with some precision by the statute, and subsequent events, including sale of the charged off account by the creditor, or a payment, or a dispute about the account by the consumer, do not change the allowable reporting period.
There is an exception for chargeoffs or collections that were first reported before December 29, 1997. Adverse information such as collections or chargeoffs reported before December 29, 1997, are not subject to the new “commencement of the delinquency” provision, and can be reported for 7 years from the date the creditor actually charged it off.

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martin pelmore Negotiate Your Credit Reporting

Negotiate Your Credit Reporting
Always ask for a “Good Pay Rating”. The ideal is to get the creditor to report your account after the settlement as “Paid as Agreed” or “Account Closed – Paid as Agreed”. Some creditors may not change the status to “Paid as Agreed”. At least, get the creditor list the account as “Paid”. Since this is an accurate statement on the status of the account, many creditors will agree to this wording. Of course, insist that the account show “Paid” only, and that all other negative notations (such as “Charge-off,” “Repossession,” late payments, or “Collection”) are deleted at the same time. A simple “Paid” notation on a regular trade line is neutral and should not hurt your credit.

If they think it to their advantage to restore your rating, they will do this. For example, “I know you would like to receive the $1500 balance on the account, but it will not help my credit report if you can’t change the account reporting to ‘Paid as Agreed’. This is all I have and I will pay it to the other creditors who agree to change my credit rating in writing.” Collection agencies will more readily agree to delete the negative reporting than banks or credit card companies, since the collector can change their reporting, but you remain stuck with the original creditor’s negative reporting. Better to negotiate with the original creditor, because the reporting on your “applied for” accounts that primarily determine your credit rating.

Finally, upon settlement of the account, verify that all three of your credit reports have been correctly updated. Send a copy of the letter you received showing the account has a zero balance to the credit bureau to have the collection account removed. The Fair Credit Reporting Act requires that you have no more than one listing per delinquent account (you can have the original creditor report you late but you cannot have a collection listed for this same account).

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Martin Pelmore Should Consumers Try Credit Repair On Their Own?

Martin Pelmore Should Consumers Try Credit Repair On Their Own?

This really depends on you and the amount of time you’re willing to allocate toward repairing your credit. While disputing items on your credit reports should be easy, getting results can often be time consuming.

You can do it yourself. That said, many consumers are not able or willing to dedicate the time to study effective credit repair methods and apply principles learned.

Also, credit repair is often simply sending dispute letters to the credit bureaus. Sometimes it eventually becomes necessary to do more than simply ask the credit bureaus to perform an investigation. Dealing with creditors, collection agencies and the courts may be required to repair your credit reports. It is important to know how to deal with these individual entities. By using the information in our Blog
will help you
Restoring your own credit is like representing yourself in court; you can do it, and you have the legal right, but you must decide if you are willing to do it yourself, and stick to it. It takes a few weeks to get results and you have to stick with it.

Using the information in our Blog, you can make improvements to your credit report in weeks.

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Martin Pelmore Federal Enforcement Agencies of Banks & Credit Reporting Companies

Federal Agencies that enforce the Fair Credit Reporting Act (FCRA)

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The FCRA gives a number of different federal agencies authority to enforce the FCRA. Following is a list of many of these federal agencies, and in which subject matter they may be able to enforce the FCRA.

Please Contact: for questions, concerns, and formal complaints regarding …
Federal Trade Commission (FTC)
Consumer Response Center – FCRA
Washington, DC 20580

877-382-4357 / 202-326-3761 Credit Reporting Agencies (CRAs), creditors, and others not listed below
Office of the Controller of the Currency
Compliance Management
Mail Stop 6-6
Washington DC 20219

800-613-6743 National banks, federal branches/agencies of foreign banks (word “National” or initials “N.A.” appear in or after bank’s name)
Federal Reserve Board
Division of Consumer & Community Affairs
Washington DC 20551

202-452-3693
Federal Reserve System member banks (except national banks, and federal; branches/agencies of foreign banks)
Office of Thrift Supervision
Consumer Complaints
Washington DC 20552

800-842-6929 Savings associations and federally chartered savings banks (word “federal” or initials “F.S.B..” appear in federal institution’s name)
National Credit Union Administration (NCUA)
1775 Duke Street
Alexandria, VA 22314

703-519-4600
Federal credit unions (words “federal Credit Union” appear in institution’s name)
Federal Deposit Insurance Corporation (FDIC)
Consumer Response Center
2345 Grand Avenue, Suite 100
Kansas City, Missouri 64108-2638

877-275-3342 / 800-934-FDIC State-charted banks that are not members of the Federal Reserve System
Department of Transportation
Office of Financial Management
Washington, DC 20590

202-366-1306 Air, surface, or rail common carriers regulated by former Civil Aeronautics Board or Interstate Commerce Commission.
Department of Agriculture
Office of Deputy Administrator – GIPSA
Washington, DC 20250

202-702-7051

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