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Is your credit report correct? The reason for sharp rise in consumer complaints is as clear as mud

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CLEVELAND — Your credit score can determine your insurance rates, percentage rates on loans, even employment. In a year that’s seen so many problems with the pandemic add credit reporting to the list. The issue? Well, in our search for that answer we found out it depends who you ask. It’s a bit of a mess.

“What’s it like trying to buy a house right now?” we asked Eric Eisenmann, 34, from Parma Heights.

“It’s extremely stressful,” he replied.

Eisenmann told us his bank mistakenly closed his account.

They admitted to it. They ended up opening back up my account,” he said, but his credit score went down 120 points impacting him getting a home. “I hope that my credit score gets fixed so I can buy a house at an APR that I was supposed to be at,” Eisenmann said.

CONSUMER FINANCIAL PROTECTION BUREAU

“What we witnessed in 2020 compared to 2019 was an enormous increase in complaints about credit reporting,” said John McNamara. He’s the Principal Assistant Director of Markets at the Consumer Financial Protection Bureau. The CFPB says it ensures financial institutions are in compliance with federal consumer laws.

“This year we observed that the nationwide consumer reporting companies Equifax, TransUnion, and Experian stopped providing complete and accurate responses,” McNamara told us.

Responses to the 107% jump in credit reporting complaints against companies. In 2019, there were 165,000, but it went to 319,000 during 2020.

“We have enforcement authority over players in the space and we have supervisory authority,” said McNamara.

That’s true, but enforcement against the big three bureaus is rare. In the past 2+ years, the CFPB has only taken action against Equifax and that was for a massive, widely-publicized 2017 data breach.

“Do you find that the actions taken lead to positive results for consumers?” we asked McNamara.

“One would hope,” he responded.

CFPB said 99% of the complaints have gotten a timely response. We found in CFPB records that in Ohio, there are thousands of credit-related complaints in the last 3 years. Some claiming that the investigation was taking more than 30 days, plus, bad credit info, and notification issues.

CONSUMER REPORTS WEIGHS IN

“Because reports have such a big impact on our financial lives, it’s a major concern for consumers,” said Chuck Bell. He’s the Programs Director at Consumer Reports, an organization that has long highlighted problems with errors in people’s credit reports. “There are very weak incentives to investigate it and correct it. So even if you raise an issue, they’re often very slow to respond and correct your information,” said Bell.

CONSUMER DATA INDUSTRY ASSOCIATION

“On this point, they’re wrong,” said Francis Creighton about Bell’s claims. Creighton is the President and CEO of the Consumer Data Industry Association which is a trade group that represents the credit industry. Experian, Equifax, and TransUnion are all members of the group. “We’ve got to fix (errors),” said Creighton. “The law requires us to fix it, but more importantly, our whole business is about getting it right every single time.”

He attributed the jump in credit reporting complaints to businesses that claim they can fix your credit scores.

“They stem from credit repair companies that are attempting to remove accurate but negative information off people’s credit reports,” Creighton told us.

Nobody expects perfection, but what we found out is there’s a big disconnect among the agencies, experts, and businesses overseeing your credit scores. Disagreements and finger-pointing can leave the consumer in the middle when there are issues.

“Be proactive,” said house hunter Eisenmann. “Don’t rely on other people to fix your problem. Call everyone you can about it.”

We contacted Experian, Equifax and TransUnion each for an interview. Equifax and TransUnion did not respond. Experian did not go on camera, but did help facilitate the interview with Creighton.

Here are a few things you can do to help your credit score knowledge. Check your credit reports. Because of the pandemic, you can check your scores for free right now every week. Plan ahead. If yo know you’ll be buying a house or a car in the next 6-12 months, start examining your scores now so there are no surprises when you sit down to buy. And, file a complaint. The Consumer Financial Protection Bureau has an online form here.

Here is more information given to us by the CFPB:

The CFPB’s Office of Consumer Response currently has approximately 110 FTEs and is able to process the increased complaint volume at this time. Consumer Response routes consumers’ complaints about financial products and services—and any documents they provide—directly to financial companies, and works to get consumers a timely response. In 2020, the CFPB sent approximately 456,100 complaints to approximately 3,300 companies for review and response. Of those complaints, 99% received a timely response. Consumers’ complaints and companies’ responses provide the Bureau with important information about the types of challenges consumers are experiencing with financial products and services and how companies are responding to consumers’ concerns. Consumer Response uses a variety of approaches to identify trends and possible consumer harm in consumers’ complaints. Examples include:

  • Reviewing cohorts of complaints and company responses to assess the accuracy, timeliness, and completeness of an individual company’s responses to complaints sent to them for response
  • Conducting text analytics to identify emerging trends and statistical anomalies in large volumes of complaints
  • Visualizing data to highlight geographic and temporal patterns and using tools to filter, sort, and search complaints
  • Consumer Response’s analyses support the Bureau’s work to supervise companies, enforce federal consumer financial laws, propose rules, spot and assess emerging issues, and develop tools that help empower consumers to make informed financial decisions.

Here is more information given to us by CDIA:

Hi Jonathan,

Thanks for reaching out. Below is a statement that can be attributed to Francis Creighton, President and CEO of the Consumer Data industry Association (CDIA):

“Getting credit reports right for consumers is our most important job and that’s reflected by our industry’s 97+ percent accuracy rate. The industry’s internal data shows no evidence that the increased complaint activity over the last year is a result of a problem with credit reporting. In fact, recent data show that credit scores are rising and are at a record high, despite the pandemic.

We do not believe the complaints in the CFPB database are an accurate reflection of consumers’ experiences with credit reporting agencies. Over the last year, America’s credit reporting agencies have seen an increase in complaints submitted by organizations like credit repair companies. Many of these companies misrepresent their ability to help consumers through unfair, deceptive and abusive practices. They essentially spam the complaint portal, making it difficult to help consumers with legitimate problems.

We strongly encourage the CFPB and the FTC to take real action against predatory credit repair companies. Credit repair scams clog up the database and the credit bureaus’ dispute processes with meritless disputes. The CFPB and FTC should take extensive enforcement action against credit repair companies that rip off consumers and block the waves of complaints that come from the same IP address.

This has been a challenging year for all Americans. Our industry has worked diligently across the financial ecosystem to make sure people have frequent, free access to their credit reports and are able to maintain their financial health as best as possible. At the beginning of the pandemic, Equifax, Experian and TransUnion increased the accessibility for people to check their credit reports weekly for free and have extended that access for an additional year. We strongly encourage consumers to continue to check their credit reports for free every week by visiting www.annualcreditreport.com.”



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Can You Buy Crypto With a Credit Card? – MoneyWise.com

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Ask Gareth Shaw: ‘I’m scared I’ll get rejected for credit card because of mistakes I made in the past’

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‘Credit-builder’ cards can be used to demonstrate that you are a responsible borrower

Answer: Well done to you for getting back on your financial feet. Climbing your way out of debt is a marathon – it takes sacrifices and planning, so you’ve taken some really important steps in your financial journey.

The good news is that the negative information – the records of missed payments, defaults and even county court judgments – won’t stay on your credit report forever. Details of your late payments can be viewed for six years after they were settled. Searches and rejections of credit typically disappear after 12 months. So this dark cloud won’t hang over you forever.

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Before we talk about applying for credit again, there are steps you can take to improve your credit health. Firstly, you should review your credit reports and make sure there are no errors that could be holding your score back. You can get your credit report for free from each of the three credit reference agencies – TransUnion, Equifax and Experian – and can ask them to investigate errors. Lenders and credit reference agencies have 28 days to respond to disputes.

Registering to vote by getting on the electoral roll can boost your credit score, while you may even be able to add the record of your monthly rent payments to your credit score by asking your landlord to report rental payments to firms like The Rental Exchange, CreditLadder or Canopy.

Experian has launched a new tool that allows you to share information about your banking habits and subscriptions – information which is not traditionally factored into your credit score – in order to increase your score. That means paying your council tax or even paying for Netflix and Amazon Prime could give your score a boost.

If you still want a credit card, your choice is likely to be limited to a particular set of cards designed for people with poor or ‘thin’ credit histories. These are known as ‘credit-builder’ cards, or sometimes ‘bad credit’ cards.

These cards have higher interest rates compared to the most competitive products in the market, to reflect the risk that a lender is taking in by providing credit to someone with a history of repayment problems. You can expect to find an APR of around 29 per cent. They also have lower limits, so when you apply, don’t be surprised to find that the lender will initially only give you £250 to £500.

However, these cards can be used to demonstrate that you are a responsible borrower, can repay on time and stay within your credit limit.

Here’s the golden rule – avoid borrowing money on these credit cards. Purchases tend to be interest-free for 55 days, after which you’ll be charged a considerable amount of interest. So limit the use of these cards, and when you do use them, try to pay them off in full. If you don’t pay on time, you will lose any promotional offer, be hit with a fee and your provider will report your missed payment to the credit reference agencies, reversing any good work you might have done. Set up a direct debit to ensure that your minimum payments are met in advance of the credit card payment date.

When you apply, use an eligibility checker first. This will ask for some basic information and carry out a ‘soft search’ on your credit file, returning a list of cards and the probability of your application being successful. That would be a helpful guide to find a card that is likely to accept you.

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Credit Repair Services Market to Scale New Heights as Market

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Credit Repair Services

Credit Repair Services

A Latest intelligence report published by AMA Research with title “Credit Repair Services Market Outlook to 2026.A detailed study accumulated to offer Latest insights about acute features of the Global Credit Repair Services market. This report provides a detailed overview of key factors in the Credit Repair Services Market and factors such as driver, restraint, past and current trends, regulatory scenarios and technology development. A thorough analysis of these factors including economic slowdown, local & global reforms and COVID-19 Impact has been conducted to determine future growth prospects in the global market.

Free Sample Report + All Related Graphs & Charts @: https://www.advancemarketanalytics.com/sample-report/9361-global-credit-repair-services-market

Definition:
Credit repair services is known as a kind of service to remove negative items from credit reports like late payments, foreclosures, liens, repossessions, and more. Credit repair normally involves fixing the bad credit in any of the way, shape or form. Credit repair is the best option if anyone is thinking about applying for finance in near future. This can make it much easier to attain the loan at the wanted rate. This will also increase the chances of being approved in the first place. The market of Credit Repair Services is mainly driven due to the escalating number of small size and large size organizations, rising focus on the safety & security related to financial documents of the company and strict norms and policies framed by government considering disclosure of the taxation and financial documents considering to the global scenario. Also, Lack of Skilled Professional is hampering the total market growth. Some of the Mandatory Norms & Policies framed by Governments related to the disclosure of Taxation and Financial Documents are creating lucrative growth opportunities for market growth.

Major Players in This Report Include,
Lexington Law (United States),CreditRepair.com (United States),Sky Blue Credit Repair (United States),The Credit People (United States),Experian PLC (Ireland),Ovation (United States),MyCreditGroup (United States),Veracity Credit Consultants (United States),MSI Credit Solutions (United States),The Credit Pros (United States),Pyramid Credit Repair (United States)

Keep yourself up-to-date with latest market trends and changing dynamics due to COVID Impact and Economic Slowdown globally. Maintain a competitive edge by sizing up with available business opportunity in Credit Repair Services Market various segments and emerging territory.

Market Trends:
• Personalization in the Credit Repair Services

Market Drivers:
• A Growing Number of Large Size and Small Size Organizations
• Rising Focus on Safety & Security-Related To Company’s Financial Documents

Market Opportunities:
• Mandatory Norms & Policies Related To Disclosure of Taxation and Financial Documents Creating Lucrative Growth Opportunities

The Global Credit Repair Services Market segments and Market Data Break Down are illuminated below:
by Application (Private, Enterprise), Service Mode (Online, Offline)

Credit Repair Services the manufacturing cost structure analysis of the market is based on the core chain structure, engineering process, raw materials and suppliers. The manufacturing plant has been developed for market needs and new technology development. In addition, Credit Repair Services Market attractiveness according to country, end-user, and other measures is also provided, permitting the reader to gauge the most useful or commercial areas for investments. The study also provides special chapter designed (qualitative) to highlights issues faced by industry players in their production cycle and supply chain. However overall estimates and sizing, various tables and graphs presented in the study gives and impression how big is the impact of PANDEMIC.

Enquire for customization in Report @: https://www.advancemarketanalytics.com/enquiry-before-buy/9361-global-credit-repair-services-market

Geographically World Credit Repair Services markets can be classified as North America, Europe, Asia Pacific (APAC), Middle East and Africa and Latin America. North America has gained a leading position in the global market and is expected to remain in place for years to come. The growing demand for Credit Repair Services markets will drive growth in the North American market over the next few years.

Report Highlights:
• Comprehensive overview of parent market& substitute market
• Changing market dynamics in the industry (COVID & Economic Impact Analysis)
• In-depth market segmentation (Trends, Growth with Historical & Forecast Analysis)
• Recent industry trends and development activity
• Competitive landscape (Heat Map Analysis for Emerging Players & Market Share Analysis for Major Players along with detailed Profiles)

Strategic Points Covered in Table of Content of Global Credit Repair Services Market:
• Chapter 1 – Executive Summary
• Chapter 2 – COVID-19 Impacts on Credit Repair Services Market
• Chapter 3 – Credit Repair Services Market – Type Analysis
• Chapter 4 – Credit Repair Services Market – Application/End-User Analysis
• Chapter 5 – Credit Repair Services Market – Geographical Analysis
• Chapter 6 – Credit Repair Services Market – Competitive Analysis
• Chapter 7 – Company Profiles
• Chapter 8 – Credit Repair Services Industry Analysis
• Chapter 9 – Industrial Chain, Downstream Buyers, and Sourcing Strategy
• Chapter 10 – Marketing Strategy Analysis
• Chapter 11 – Report Conclusion and Key Insights
• Chapter 12 – Research Approach and Methodology

Buy this research @ https://www.advancemarketanalytics.com/reports/9361-global-credit-repair-services-market

Key questions answered
• Who are the Leading key players and what are their Key Business plans in the Credit Repair Services market?
• What are the key concerns of the five forces analysis of the Credit Repair Services market?
• What are different prospects and threats faced by the dealers in the Credit Repair Services market?
• What possible measures players are taking to overcome and stabilize the situation?

Thanks for reading this article; you can also get individual chapter wise section or region wise report version like North America, Middle East, Africa, Europe or LATAM, Asia.

Craig Francis (PR & Marketing Manager)
AMA Research & Media LLP
Unit No. 429, Parsonage Road Edison, NJ
New Jersey USA – 08837
Phone: +1 (206) 317 1218
[email protected]

About Author:
Advance Market Analytics is Global leaders of Market Research Industry provides the quantified B2B research to Fortune 500 companies on high growth emerging opportunities which will impact more than 80% of worldwide companies’ revenues.
Our Analyst is tracking high growth study with detailed statistical and in-depth analysis of market trends & dynamics that provide a complete overview of the industry. We follow an extensive research methodology coupled with critical insights related industry factors and market forces to generate the best value for our clients. We Provides reliable primary and secondary data sources, our analysts and consultants derive informative and usable data suited for our clients business needs. The research study enables clients to meet varied market objectives a from global footprint expansion to supply chain optimization and from competitor profiling to M&As.

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