Credit reporting agencies are planning to remove some tax liens and civil debts from your credit report. By doing so, you may see an increase in your credit score if your credit score is currently being penalized by a tax lien or civil debt...
CitiMortgage and CitiFinancial Servicing have been fined $28.8 million by the Consumer Financial Protection Bureau for failing to help homeowners avoid foreclosure by using bad loss mitigation practices...
TransUnion and Equifax are refunding $17.7 million to consumers and paying $5.5 million in fines for giving consumers misleading and deceptive credit scores.
Credit Reports are Improving Since the Housing Crisis
Homeowners that suffered from foreclosure during the housing crisis and Great Recession are starting to get their foreclosure histories taken off their credit reports. Removing foreclosure from a credit report can make it easier for a consumer to increase their credit score. Doucet & Associates Co., L.P.A. helps consumers’ correct errors on their credit reports and assists homeowners fight foreclosure.
The Great Recession refers to the economic decline during the financial crisis and the housing crisis that happened between 2007 and 2009. The rise of unemployment during the financial crisis caused many homeowners to fall into foreclosure, which negatively impacted their credit reports. Foreclosure stays on a consumer credit report for seven years.
There are many reasons that simultaneously caused the recession. The rise in foreclosures and drop in number of people buying homes at that time led to the United States housing bubble collapsing. The prices of homes were dropping, current homeowners were struggling to pay back mortgages, and people were frantically looking for jobs after being laid off. The recession left many Americans with long-lasting consequences.
If your foreclosure history is not being removed from your credit report, the Fair Credit Reporting Act (FCRA) grants consumers the right to write a letter asking the credit reporting agency investigate the error. The removal of foreclosure from a credit report is going to influence consumers getting approved for lower interest rates. If the credit reporting agency is denying your request to have foreclosure cleared from your credit report after seven years the lawyers at Doucet & Associates Co., L.P.A. can provide legal assistance. Contact us today at (614)-944-5219.
Doucet & Associates Co., L.P.A. Attorneys Receive Rising Stars Honor
Attorneys Troy J. Doucet and Andrew Gerling are being recognized as a 2017 Ohio Rising Star by Super Lawyers. This honor is reserved for lawyers who exhibit excellence in practice. Doucet & Associates Co., L.P.A. focuses on helping our clients fight foreclosure, consumer law, and small business litigation.
Troy Doucet established this law firm to help people fight against banks, mortgage companies, and debt collectors. He also wrote the foreclosure defense book 23 Legal Defenses to Foreclosure: How to Beat the Bank, trains new attorneys in consumer law, and has taught CLE courses for lawyers. Troy works hard to make sure that our clients get outstanding legal representation and is proud of the consumer-friendly case law this firm helps establish every day.
Andrew Gerling is a senior associate and litigator at Doucet & Associates. He has significant experience helping people in consumer protection lawsuits such as foreclosure defense, abusive debt collection, and consumer fraud. Andrew and Troy have great experience working with consumer matters that involve the Real Estate Settlement Procedures Act, Consumer Sales Protection Act, the Fair Debt Collection Practices Act, Truth in Lending Act, and the Fair Credit Reporting Act.
Troy Doucet and Andrew Gerling are honored to have received the 2017 Ohio Rising Stars Award for consumer law. The dedication the attorneys at Doucet & Associates give our clients has helped our law firm become one of the most recognized foreclosure defense and consumer law firms in Ohio.
Contact Doucet & Associates Co., L.P.A. at (614)944-5219 for legal assistance with a foreclosure lawsuit or consumer protection matter.
Do You Want to Improve Your Credit Score?
Experian estimated Columbus, Ohio’s average credit score to be 666 in 2015. That is only three points below the 669 national average. If your credit score falls below these averages, there are steps you can take as a consumer to gain some points. The lawyers at Doucet & Associates Co., L.P.A. can also offer advice about the Fair Credit Reporting Act (FCRA) and how to correct problems on your credit report.
Ways to Improve Your Credit Score
1.You should first check your credit report for errors using at least one of the three main credit reporting agencies (Equifax, Experian and TransUnion). Your credit score may differ a little on each report based on resources the agency used to develop your score. If there is an error on your credit report, the FCRA says you can send a letter to the credit reporting agency asking for the error to be corrected. If the credit reporting agency fails to correct the error, you can contact Doucet & Associates Co., L.P.A. for help on correcting your report or read more about the FCRA on our website by clicking here and they may have to pay our fees. Correcting the errors on your credit report can improve your credit score.
2.Get a credit card. Having a credit card shows that a creditor can trust you to pay back borrowed money. If you use the credit card correctly without developing debt, then you can increase your credit score.
3.Pay off your credit card debt. Some people cannot pay off all their debt in one payment. If that is the situation for you, stop using your credit cards and focus on minimizing your debt by making the required minimum payments every month.
4.Pay your bills on time. This includes all bills such as credit card bills, utility bills, medical bills and student bills. Failure to pay bills on time lowers your credit score.
5.Ask for a raise on your credit card limit. Getting a raise does not mean you have to spend more on your credit card, but shows that your creditors trust you more.
6.Get involved in paying off different types of loans, whether it is all at the same time or separately. Your credit score can be improved if you have history of accurately paying off a credit card, an auto loan, student loans and a home mortgage loan. If you encounter problems paying off a home mortgage loan the lawyers at Doucet & Associates Co., L.P.A. have experience helping homeowners secure loan modifications and fighting foreclosure lawsuits.
Mistakenly Charged Off
A bank charging off a person’s bank account is harmful to a consumer credit report. Sometimes charge-offs can mistakenly continue after a consumer has paid off their debt. Troy Doucet, the firm principal at Doucet & Associates Co., L.P.A., shares his legal advice on what a consumer can do to protect their credit report from a false charge off in Help! The Bank Charged Off My Debt – After I Paid It.
A charge-off is when the bank writes off the consumers loan on its accounting financial statements. Usually this action will appear on a credit report as a charge-off and can lower a consumer’s credit score. There are ways to correct a false charge-off appearing on a consumer bank statement and credit report.
A consumer should notify the bank when seeing an invalid charge-off on a bank statement. The consumer should question if money is still owed on a previous debt and the reason for the charge-off if it is disputed. A consumer who discovers a false charge-off on a credit report has the right to correct the problem under the Fair Credit Reporting Act (FCRA).
The FCRA protects consumer right to have an accurate credit report distributed to lenders. A consumer can send a letter to a credit reporting agency such as TransUnion, Equifax, and Experian to request a change in false information. A consumer should provide all documents possible to support why the information is false. A credit reporting agency must then re investigate the credit report and verify with the consumer that the information was corrected. A false charge off on a credit report can substantially affect a consumers ability to receive a loan and low interest rates.
More information about the Fair Credit Reporting Act (FCRA) can be found in 23 Legal Defenses to Foreclosure: How to Beat the Bank by Troy Doucet.
Check out some of our related articles about credit report errors:
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to provide accurate information to lenders. The FCRA also creates legal rights for consumers whose information is being investigated and misrepresented by credit reporting agencies such as TransUnion, Experian, and Equifax.
Credit report agencies make money off of lenders who are requesting credit reports to justify loans and interest rates. Credit report agencies are not government funded. Credit reports are often required for loans on larger purchases such as cars and homes mortgages. Credit reporting agencies over report negative credit information to lenders, such as missed payments and debts. Lenders make more money off of people who are deemed a higher credit risk because they can enforce higher interest rates. Therefore, a lender will keep returning to a credit reporting agency who can help provide information that can support higher interest rates.
Consumer Rights Protected by the Fair Credit Reporting Act (FCRA)
A consumer has the right to have an accurate credit report distributed to lenders. A consumer also has the right to challenge credit report agencies who are providing false or inaccurate information. A lender must provide a consumer with the name of the credit reporting agency who allegedly provided inaccurate information on a credit report if requested.
The FCRA also made it illegal for credit reporting agencies to provide subjective information on a credit report such as religion, race, how long you have been committed to your job and details about other people you may live with.
How Can a Consumer Challenge a Credit Reporting Agency Under the FCRA?
A consumer must send a written letter to the credit report agency detailing the inaccurate information provided on the credit report. It is important for the consumer to provide as much documentation as possible to support why the information is inaccurate. Depending on the inaccurate information bank statements, records, and receipts of purchases are good examples of documents to provide.
A credit reporting agency who receives a letter must re investigate in the information being provided on the consumers credit report. Then must reply to the consumer detailing if the information was corrected or not. If a credit reporting agency refuses to fix inaccurate information, the consumer should then seek out a consumer lawyer to help sue the company.
What Type of FCRA Damages Can a Consumer Sue For?
- Actual damages are real losses for the consumer. Regarding the FCRA, a consumer might experience financial loss due to inaccurate information being provided on a credit report. A consumer who receives a higher interest rate on a loan or mortgage can experience economic loss and possibly debt.
- Statutory damages are when the credit reporting agency is providing inaccurate information, but the consumer has not financially been affected yet. The inaccurate information could be preventing the consumer from even acquiring a loan.
- Punitive damages are deliberate wrongdoings by a credit reporting agency. An example of a wrongdoing would be a credit report agency refusing to read a letter from a consumer or refusing to re investigate the information being provided on a credit report. Punitive damages are rare in cases regarding the FCRA.
A credit reporting agency will also be responsible for paying lawyer fees if the consumer wins the case.
Why May There Be Inaccurate Information on a Credit Report?
Mistaken identity is an issue the credit reporting agencies battle. These mistakes are often due to a merged file. Consumers with common last names and the same first names can be confused. False addresses can appear on credit reports from someone with the same name living at a different address. Seniors and Juniors can be commonly confused especially if they live at the same address to.
There are many complaints about credit report agencies. The Federal Trade Commission (FTC) does not have resources and funding to check all the information the credit report agencies are providing to lenders.
How Can a Consumer Check Their Credit Report?
Consumers are able to access their credit report annually from TransUnion, Experian, and Equifax. Most negative information is only listed on a credit report for seven years. Bankruptcy is usually listed for ten years. Also consumers have to give permission to lenders to look at their credit report.
You can find more information about the Fair Credit Reporting Act (FCRA) by reading 23 Legal Defenses to Foreclosure: How to Beat the Bank by Troy Doucet. If in Ohio, call Doucet & Associates Co., L.P.A. at (614) 944-5219 for a consultation.