Help, Erica Sandberg Gave Me Bad Credit Advice!

While reading FoxBusiness.com recently, I came across an identity theft article by Erica Sandberg. It had a catchy title, 'Help, My Mom Stole My Identity'.

Unfortunately, the content under the promising headline was useless drivel, consisting of credit bureau and credit card industry talking points.

The article was a Q and A format from Erica Sandberg's 'Opening Credits' column also published on a spammy credit card offers website called CreditCards.com.

A reader, Tina, asked Erica this question:

"Dear Opening Credits,
I'm 19 and about to go to college and have been trying to educate myself about getting good credit. So I pulled my free credit reports and found out I already have miserable credit. I spoke to my mom, and she got all squirrely. I called my dad -- they're recently divorced -- and he basically said mom had opened the accounts after the divorce when things were tough financially. So, great, my mom stole my identity. Obviously, I don't want to call the cops on her, but what do I do? Any help would be appreciated. --Tina

OK, an answer to such a question should make a great article hey? It was a terrific opportunity to offer Tina (and the readers) some very useful advice on an important topic, identity theft/credit repair.

Erica Sandberg whiffed. She gave no helpful advice plus the 'advice' she did give was wrong. So, in this article, I will repair the damage done by Erica Sandberg and answer Tina's question correctly.

Along the way I will expose Erica Sandberg as just another false consumer advocate/reporter who shills for the credit bureaus, credit card companies and collection agencies. I will reveal how and why Erica Sandberg actually hurts consumers who are victims of an unjust, unfair and incompetent credit reporting system.

Erica begins her response to Tina by offering solace:

"I really hate to hear a story like this. It breaks my heart. Sadly, I've heard it many times before, so if company gives you some solace, please take it."

She goes on to say that, although it is a crime, perhaps Tina's Mom "...wasn't thinking right at the time." Then, if Tina's Mom can't pay the outstanding debt, incredibly, Sandberg tells her to get her dad (who is divorced from mom) to pay the bills!

Let me explain why this is very bad advice. Contrary to Erica Sandberg's recommended first step of paying the bills, my first step would be to get the erroneous bad credit off Tina's credit reports. Not one penny of the charged off debts has to be paid to accomplish this.

Why? Because the bad credit debt information on Tina's credit reports does not belong to her- it is not her information. Tina should immediately dispute all the misleading, erroneous credit information, caused by her mother's actions, with the three major credit reporting agencies, Experian, Equifax and Trans Union.

A disputed item on a credit report must be researched and completely verified as accurate by the credit bureau within a reasonable period of time, usually 30 days. If the disputed item cannot be completely verified, then it must by law, be immediately deleted.

We know that none of these bad credit marks belong to Tina, so, if the credit bureaus actually do their job, all the misleading negative bad credit should be deleted from her credit reports in a reasonably short time, right? Well, the truth is credit bureaus and creditors do a terrible job verifying consumer disputes. Learn more about the credit bureaus' shoddy verification techniques in this article, Credit Repair Disputes.

Some of the mistakes will be removed from Tina's credit reports but the ones that come back as verified will need additional credit repair work and persistence, consisting of repeated truthful disputes with the credit bureaus and creditors along with a commitment to be willing to sue an obdurate credit bureau in smalls claims court.

I'm sensitive to Tina's desire not to implicate her mom in a crime but the good news is Tina can have her good credit standing again without giving all the background information about what occurred. You see, Tina is not required to do the credit bureau's work for them. The credit reporting agencies and their shills like Erica Sandberg will never tell Tina this but if the bureaus and creditors cannot prove the disputed bad credit items belong to Tina (and we know it's impossible for them to do so because the information doesn't belong to her), the Fair Credit Reporting Act requires they be permanently deleted.

This is what disturbs me about Erica Sandberg's advice. She wants her readers to take for granted that because all the errors on Tina's reports were caused by another using her identity, somehow the major credit bureaus bear no responsibility for publishing these erroneous and misleading credit reports.

Erica does not even address the credit bureaus' culpability in allowing this mess to occur in the first place. I'm not excusing Tina's mom in any way but I am pointing out that Erica's silence on the credit bureaus' failed, fractured system should be a red flag to readers that Erica is part of the credit bureau cabal and not a true consumer advocate.

Erica's column and reports appear in publications and websites that derive advertising revenue from the major credit reporting agencies and major creditors. Sites like the Wall Street Journal, Redbook, Bank Investment Consultant, MSNMoney, SmartMoney and others. These are respected outlets but they rarely, if ever publish exposes on the inept and inaccurate credit reporting system.

Erica Sandberg's background reveals a stint working for Consumer Credit Counseling Services of San Francisco. Contrary to what many consumers believe, CCCS offers zero credit repair advice. Plus these outfits are in bed with major creditors and credit reporting agencies.

They derive their income from set up fees, monthly fees and large 'kickbacks' from the very creditors they purport to negotiate with on a consumer's behalf! They often criticize credit repair companies but the fact is Consumer Credit Counseling Services charge outrageous fees to consumers amounting to several thousands of dollars.

They, like Erica Sandberg, are part of the creditor/banking industry/credit bureau cabal. There is so much money to be made in this corrupt circle (advertising revenue, credit report income, creditor 'kickbacks', high interest rates, etc.), that consumers will never be told the truth about credit reporting, credit repair or identity theft from a 'consumer watchdog', organization, principal or employee associated with the corrupt, fractured credit reporting system.

For more information on how 'consumer advocates' and even our own Government have failed consumers by allowing a dishonest credit reporting system (that any criminal syndicate would be proud of) to run roughshod over innocent consumers like Tina see this article about 'Zero Day Threat'.

Mom, of course, must step up and face the music. It's the morally correct thing to do plus all avenues of resolution have the potential to lead to her anyway. I'm assuming all the accounts have gone to charge off/collection and can no longer be misused. If not, Tina must make sure that all the accounts are closed to avoid further damage.

Although mom should resolve any debts she ran up under her daughter's name, her situation poses an interesting problem. Tina has the right to a clean credit report without paying a dime of the bad debt while mom has none of this bad credit on her credit report but should do the right thing and pay what she charged.

The thing is, our credit reporting system is so flawed, so fractured that mom's payments could trigger more erroneous bad credit data to appear on daughter Tina's credit reports. It's a hornets nest for sure. A flawed credit reporting system coupled with fraudulent charges like mom's make for a very painful situation for Tina.

Erica offers no help when she writes:

"If the debt has migrated over to a collection agency, however, talking won't do a lot of good. Collectors typically don't accept installment payments, so once you have the cash -- from your mom or dad, hopefully -- pay the cards off in full. As time passes, the delinquencies and charge-offs will have less and less impact on your credit history and score. After seven years, all evidence of the problem will come off your report."

This is appallingly bad advice about dealing with a collection agency. Here's what Erica Sandberg should have told Tina.

If Tina has been harassed by a collection agency she will be encouraged to learn that a collection agency has no power, no ability to collect a debt if Tina tells them not to. I assure you this is 100% true. It's called the Fair Debt Collections Practices Act.

Tina should send a dispute verification and cease and desist request to the collection agency. It should be mailed 'return receipt requested' so Tina has proof the collector received it.

It could be a simple request for the collection agency to never contact Tina again and this would work fine BUT an even better way to handle this would to include the following in her letter:


Your Name
Your Address

Collector's Name
Collector's Address
Date

Re: account number_____________

Dear Sir:


This is to inform you that I dispute the validity of this alleged debt.

As per the FDCPA, I demand that you cease all contact with me at home,
work or anywhere with the exception of sending me the following information
in a timely manner as outlined in the FDCPA.

The original application, with my signature, showing that I applied for this account.

The entire history of this account, including when charges where made,
when payments were due and when payments were made.

The contract between you and the original creditor that gives you
the authorization to collect this alleged debt.

All pertinent documents proving you are registered and bonded with the state
of ____________ to collect debts as a collection agency.

As per federal law you are prohibited from continuing any collection activities on
this account including reporting any information about this account on any of my
credit reports while the validity of this alleged debt is in dispute.

Sincerely,

Your Signature
Your Name

This letter accomplishes many things. All phone calls and dunning letters will immediately stop. If the collection agency cannot produce the original application, Tina does not have to pay. If they can't provide the complete account history, Tina doesn't have to pay. If they don't have a contract with the original creditor giving them authorization to collect the debt, they have no legal right to collect it. If they are not bonded and registered as a collection agency in Tina's state, they cannot do squat.

Plus, all negative data about the accounts in question must be immediately deleted from all credit reports until all requirements of the dispute verification letters have been met.

In over 23 years helping consumers deal with these issues, I have never seen a collection agency or collection lawyer fulfill all the requirements in the above letter. Collection agencies are all bark and no bite. They are completely powerless to collect a debt from a consumer who exercises his rights under state and federal law.

With the collection agency out of the way, consumers have the absolute right to resolve the issue with the original creditor. In Tina's case, she doesn't have to pay the creditor either because she never made the charges.

Here's where Erica Sandberg hurts consumers though. She correctly chastised mom for her illegal behavior but neglected to criticize the much more egregious conduct of the three major credit reporting agencies, Equifax, Experian and Trans Union, for creating and profiting from a credit reporting system that makes identity theft so easy for criminals and so painful and frustrating for innocent consumers like Tina.

Credit Repair Dispute Duel to the Death

Each year millions of consumers fall victim to erroneous credit reporting. In my work as a credit repair specialist I witness first hand the frustration and anger good folks feel towards credit bureaus and creditors who don't seem to care how devastating their credit reporting lies can be to innocent consumers.

Presently, credit reporting errors are at an all time high but this article is about a credit reporting repair dispute that took place in 1826 Scotland. it is a true story.

Linen merchant and pillar of the community David Landale was so angry and upset at Bank of Scotland agent George Morgan's erroneous credit reporting and subsequent actions that he challenged the banker to a duel.

The two had quarreled over a bank loan, an argument that had led the banker to spread rumors about Landale's creditworthiness. On August 23, 1826 the two men faced each other at dawn in a field just outside Kirkcaldy in southern Fife.

Morgan was a soldier-turned-banker with an explosive temper and a crack shot; Landale, the merchant, had never fired a pistol in his life. Only one walked away alive.

Put your feet up and grab your favorite beverage because once you click 'play' below you will be riveted to the screen. It is an amazing, edge of your seat documentary that brings you back in time for a credit reporting dispute duel to the death.

Click here to watch The Last Duel.

Copy Machines Are Loaded With Identity Secrets

Digital copiers manufactured after 2002 have a hard drive that records each and every document copied or faxed. If you upgrade to a new copy machine, do you realize all the documents and information you copied and faxed will go right out the door with your old copy machine?

Criminals could download all the documents stored on a digital copier's hard drive using a software program available free online. They could then engage in identity theft to steal money from innocent consumers. Watch this video report to learn more:



TechNewsWorld reports the FTC to Look Into Copy Machine Privacy Breakdown.

No Matter What Swindler Phil Mulkins says Credit Repair is Legal and Ethical

Tulsa World reporter Phil Mulkins recently swindled consumers with a pack of lies about credit repair. Mulkins wrote a misleading piece in the Business section of Tulsa World claiming all credit repair companies were "scam operators".

This irresponsible journalist then went on to make the outrageous claim that "credit repair has never been possible". Such a statement is laughable of course but when added to the decades long anti credit repair smear campaign perpetuated by the three major credit bureaus and their confederates, it only serves to harm innocent consumers victimized by an unjust, unfair and fractured credit reporting system.

Mulkins seemed to base his argument on the ridiculous premise that all consumer credit reports are accurate. This is absurd because most credit reports are riddled with inaccuracies, errors, false data and misleading, incomplete information. In my 23 years helping victims of the credit reporting system, I have never seen an accurate initial credit report. Credit repair professionals help consumers deal with these credit reports errors.

The credit reporting agencies, Experian, Equifax and Trans Union make money by controlling the reporting of negative information. They do not want consumers to have effective control over their own credit histories. Therefore they use a variety of tactics to frustrate, delay and obstruct consumers from correcting their credit reports. A knowledgeable credit repair expert can assist consumers in overcoming these stalling and delaying tactics. It's often the only option that works.

However, let's explore Mulkins' false premise.  He cites the FTC fact sheet that claims "no one can remove accurate negative information from your credit report". While the FTC has made claims along these lines in the past, we know it's a red herring, because credit repair companies help consumers deal with inaccurate, misleading, obsolete, outdated, incomplete and unverifiable information.

It is extremely rare for a (pre-credit repair) consumer to have a completely accurate negative trade line or public record published on his credit report. But for the sake of argument let's assume one exists. Phil Mulkins wrote that the removal of accurate negative data from a credit report is illegal. Once again he cites a misleading FTC comment that "only the passage of time can assure it will be removed".

The fact is it is completely legal and ethical to remove even an accurate negative item from a credit report. Here are some examples:

1. If the creditor or public record repository can no longer verify the accurate negative data, it must, by law, be deleted when challenged. For example, a bankruptcy court does not report anything to a credit bureau. The bureaus pay stringers to gather public record data. Does anyone really believe one of these low paid stringers will diligently report the complete bankruptcy history to a credit bureau? I assure you, they never do.

2. If a creditor agrees to remove an accurate negative item from a customer's credit history, it is completely legal to do so.There is no law requiring anything be reported on a credit report except delinquent child support payments over $1000 and certain student loan information (however even these items may be removed if they are not reported correctly).

3. Certain accurate, negative student loan payment histories are routinely deleted from credit reports. This is required by specific federal laws regulating amnesty and student loan default cures.

4. Some state laws require accurate negative data be deleted from consumer credit reports. For example, in Massachusetts it is illegal for a collection agency to report accurate negative data on a Massachusetts resident's credit report.

5. Under the Fair Debt Collection Practices Act it is perfectly legal, in fact a requirement, for a collection agency or collection lawyer to delete an accurate, negative item from a consumer's credit report when that consumer has disputed the validity of a debt, in writing, with the collection agency.

How can a consumer reporter like Phil Mulkins be so ignorant about legal, ethical credit repair? His article is so glaringly inaccurate, it appears he's just a shill for the three major credit reporting agencies. Mulkins seems hell bent on harming consumers. He should resign as the Tulsa World consumer reporter. His actions are disgraceful and shameful. With this grossly inaccurate and completely misleading article on credit repair, Phil Mulkins has done a great disservice to readers of Tulsa World.

His article is a swindle. It gives readers the false impression that credit repair is impossible! That is a lie. Credit repair is a completely legal and ethical activity. Companies that engage in credit repair do so under the federal law, CROA. Although there are bad apples in all industies, men and women who offer credit repair help to victims of an unjust, unfair credit reporting system are honest, ethical folks.

Credit Repair Boot Camp

On April 23 - 25th, Mike Citron of DisputeSuite.com presents The Credit Repair Boot Camp, a three day live training event where experts teach credit repair, marketing, advertising, business development and much more.

If you are in the credit repair field or considering entering this lucrative industry you must attend this life changing event.

Here is some information direct from The Credit Repair Boot Camp website:

"Credit industry experts from around the world will be gathering for this awesome education and networking event. The credit repair industry WAS a secretive industry. Resources to help credit repair business owners succeed were scarce. NOW the credit repair industry is finally changing its old habits. Credit repair professionals gathered at the first live credit repair training event and decided that TRUE CHANGE is necessary.

Change starts with EDUCATION. Making advanced credit repair industry knowledge and credit repair tactics available to everyone in a live training event has quickly empowered credit repair professionals to expand their businesses and get better results! If credit repair professionals do a job better, more clients will be happier, and the entire industry succeeds as a whole."

Mike goes on to say:

"Whether you're an industry veteran or a rookie, there are endless tricks and tactics to learn. The credit bureaus, collection agencies, and creditors spend millions of dollars every year trying to make the credit repair industry fail! Do you know the most recent tricks to defeat them? Have you aligned yourself with a group of like-minded professionals that want to help boost each other’s success and profits?"

This is the credit repair event of the year. Here is just a sneak peak at what you will learn at The Credit Repair Boot Camp:

• Advanced Credit Repair Tactics - Industry insiders teach you STEP by STEP how to master the toughest items in credit repair! Bankruptcies, charge-offs, Judgments and collections will seem effortless to remove once these strategies are taught.
• Avoid Industry PITFALLS - Veterans of the industry share their trials and tribulations… Learn from others mistakes and learn how to avoid them… Whether it’s advertising, marketing, sales or compliance mistakes- any of them can be costly – if not critical to your business.
• The “Myth” Conceptions - Learn the most common “Myth-Conceptions” of the credit repair industry and how you can leverage this education into massive profits.
• Anatomy of a UNSTOPPABLE dispute letter -Learn the secrets of an unstoppable dispute letter, and how to ensure that all of your letters get the proper attention. Stop making the mistakes that cost you deletions, and cost your clients money!
• OCR - What is OCR and how will that affect EVERY one of your clients disputes??
• Authorized User Accounts -The truth about authorized users accounts and how to legally, morally, and ethically counsel consumers to instantly get new credit quickly without toting the charcoal gray area of authorized users. This isn't’ the typical “Tradeline Rental” garbage that you see everywhere!

There is so much more. Visit the Credit Repair Boot Camp website to see for yourself. Register today.

How To Get Free Credit Reports

Here is a video report from the U.S. Treasury Department that explains how to obtain free credit reports from the credit bureaus. It also explains how Fraud Alerts work and how to activate them. 

Identity Thief Max Ray Butler Gets 13 years for Stealing $86 Million

Acting US Attorney Robert S. Cessar announced on February 12, 2010 that Max Ray Butler, 37, also known as Max Ray Vision and Iceman, of San Francisco, California, has been sentenced in federal court in Pittsburgh to 13 years in prison, followed by five years supervised release, and was ordered to pay $27.5 million in restitution on his conviction on wire fraud charges.

Butler was charged with engaging in computer hacking and identity theft on a massive scale, including hacking into banks and credit card processing centers to steal customers' data. Butler would give the victims' financial information to an accomplice, Christopher Aragon, 47, of Capistrano Beach, California, who would use the information to manufacture fake credit cards, then buy merchandise, or sell the private information online.

Butler and Aragon also created a website called "Cardersmarket," to acquire, use and sell credit card information. They recruited approximately 4,500 people through their website.

The Secret Service arrested Butler back on September 5, 2007 in San Francisco. A search of his computer revealed more than 1.8 million stolen credit card account numbers. Visa, MasterCard, American Express and Discover have reported that the amount of fraudulent charges on the cards totaled approximately $86.4 million.

Max Ray Butler is a fascinating and tragic figure. To learn more about him and the three lives he led, check out Richard Gazarik's excellent article in the Pittsburgh Tribune-Review, "Hacker, FBI informant, identity thief led many lives". To read about the entire sordid tale with all the shady characters you must read Kevin Poulsen's riveting piece in Wired Magazine, "One Hacker's Audacious Plan to Rule the Black Market in Stolen Credit Cards"

In the video below, Detective Bob Watts of the Newport Beach Police Department demonstrates Christopher Aragon's sophisticated credit card forgery operation. It's scary stuff.

FTC Juggles Credit Repair, Credit Bureau Complaints

The Federal Trade Commission seems to hate the credit repair industry just as much as the three major credit bureaus do. In this article we'll explore the reasons why the credit bureaus mislead the public about credit repair. What is more difficult to explain or even begin to understand is why the FTC, an agency that protects consumers, does essentially the same thing.

After reading what is revealed in this article you will discover that the FTC has a fierce bias against credit repair companies and a love affair with the billion dollar credit reporting industry.

The credit reporting industry has been lying about credit repair for decades. Credit repair companies provide a much needed service for consumers who are frustrated with misleading, inaccurate and unverifiable credit reports but the credit bureaus know they will have to spend money, lots of money, to clean up a deeply flawed and fractured credit reporting system.

So instead of cleaning up their act, the credit bureaus decided long ago to dishonestly attack and smear the industry, credit repair, that helps consumers force credit bureaus to correct errors on credit reports.  Honestly and truthfully verifying a consumer dispute involves a time consuming process of communication and research. The credit bureau should request the entire history of an account in question, then painstakingly review the complete payment history of the account (including the original application) to ensure that only accurate information is reported. This is mandated by federal law.

It's also common sense. However, credit bureaus DO NOT employ common sense, honesty, integrity or any real research when verifying a consumer dispute. The bureaus consistently violate federal law and the FTC consistently let's them get away with it. I wrote about this in an earlier article entitled "Credit Repair Disputes" published in Ezine Articles. Here is a pertinent section of that article:


"Today I am going to help you understand what a credit reporting agency does after you submit your credit dispute to them, and why persistence and perseverance are so important for your credit repair success. Under the Fair Credit Reporting Act a credit reporting agency is required to research your dispute with the source of the information. The credit bureau should check the entire record of the account in question and compare it with what they reported. This would allow them to make the appropriate changes and return a corrected, accurate credit report to you, the consumer, within thirty days.

However, the credit bureaus never do this. What they actually do with your credit dispute is shoddy and shocking. They shrink each dispute to a two digit code called a consumer dispute verification. Often this CDV is sent to independent contractors located in third world countries all over the globe. Just picture such a verification process. Whether you get approved for a car loan, home financing, credit card, apartment, job or insurance now rests in the hands of an overworked, poorly paid, quota driven third world Joe using a two digit code 5,000 miles away from the original creditor. It's absurd, outrageous and not proof of verification by any reasonable definition."

Although no less upsetting, it is understandable why the credit reporting industry hates the credit repair industry. Credit repair specialists force credit bureaus to do their jobs, a job, when performed correctly, that costs credit bureaus much time and money.  Equifax, Experian and Trans Union don't want to spend this money. Therefore they consider it much more cost effective to run a public relations smear campaign against honest, ethical men and women who's only "fault" is trying to help consumers deal with obdurate, uncaring and incompetent credit bureaus.

This unfair attack against credit repair services is not limited to a well financed PR smear campaign. Starting over twenty years ago, the credit reporting industry, their associates and confederates, worked diligently to have Congress pass draconian legislation that would cripple the credit repair industry.

I was there from the beginning. There were over 100 small credit repair business men and women who called, mailed, faxed and visited Senators and members of Congress (entirely at our own expense) after we had read some of the proposed legislation regulating our beloved credit repair industry. We faced a major challenge. Our enemy was the credit reporting industry along with the banking and insurance sectors. They had billions of dollars and a pack of lies. We had one lobbyist, a minimal budget and the truth.

For a few years we were able to stop the laws from passing. I was honored to be selected by our group to testify in Congress. The Congressional Hearing was covered by C-Span and all the major media outlets. It was a big deal. A couple of days later I asked to speak privately with then Committee Chairman Joseph P. Kennedy (my Congressman from Massachusetts). He invited me up to his office on Capitol Hill.

I showed up with two others from our industry, had a photo op and sat down to plead our case. Congressman Kennedy was gracious. He gave me plenty of time to speak. After listening to me he said I made a compelling argument but the FTC testified that credit repair was a scam; "...are they lying?" he asked.

I'd like to report I had a "Mr. Smith Goes To Washington" Hollywood type ending, but the truth is we suffered a crushing defeat. The bill passed and was signed into law by President Clinton. I was left with a civics lesson never taught in any schoolbook. Those with the money make the laws. The small business man and woman are ignored by their elected officials whose only concern is raising enough money to run successful reelection campaigns.

This brings me to the Federal Trade Commission. Congressman Kennedy rightly gave a great deal of weight to what they said about the credit repair industry. I couldn't call them liars when prompted by Kennedy. I did tell him that the FTC seems to have a vested interest in helping the credit bureaus and therefore did not tell the complete story about credit repair or credit reporting. Joe Kennedy voted against us.

It's because I have great respect for the FTC that their position on credit repair has confused and conflicted me for years. Back when I was lobbying and testifying in Congress I met and spoke with several people from the Federal Trade Commission. These were intelligent, honest, caring folks.

The top FTC Commissioners are appointed by the President with advice and consent of the Senate. Other appointments can be made by the President, department heads or the courts. Then there are thousands of civil service positions that keep the FTC running efficiently. These are some of the brightest minds in the country. They do great work. They care about protecting American consumers.

Why do they hate credit repair so much? Why do they cheer the credit reporting industry? An industry that has gone unchecked by the FTC as it runs roughshod over consumers year after year on such a colossal scale that it's mind boggling.

It is baffling but make no mistake about it, they don't like credit repair companies. The FTC has never filed a significant action against a credit reporting agency. The few times they did cite a credit bureau for abuses, the bureau was punished with a slap on the wrist. Yet when they go after a credit repair service, the FTC uses everything in its considerable power to crush the company. No credit repair company can afford to defend a federal lawsuit so they settle by signing a consent decree. Lives are ruined, reputations tarnished and jobs lost. For what? Trying to help consumers deal with an unfair, unjust and incompetent credit reporting system.

At the hearing I listened as the FTC spokesperson claimed that he has never heard of a legitimate credit repair company! A line they still repeat like a mantra to this day. I remember speaking with a FTC employee who told me she felt it was illegal for a person to sell a book on how to repair one's credit reports! She was unfazed when I reminded her of the First Amendment.

One only has to look at the FTC's annual report of consumer complaints to see they have a huge bias against the credit repair industry and an almost love affair relationship with credit bureaus. First, let's look at what the FTC publishes, then I'll show you how the statistics and facts were skewed to misrepresent the truth.

FTC Issues Report of 2009 Top Consumer Complaints

Rank	Category	No. of Complaints	Percentages
1	Identity Theft	278,078	21%
2	Third Party and Creditor Debt Collection	119,549	9%
3	Internet Services	83,067	6%
4	Shop-at-Home and Catalog Sales	74,581	6%
5	Foreign Money Offers and Counterfeit Check Scams	61,736	5%
6	Internet Auction	57,821	4%
7	Credit Cards	45,203	3%
8	Prizes, Sweepstakes and Lotteries	41,763	3%
9	Advance-Fee Loans and Credit Protection/Repair	41,448	3%
10	Banks and Lenders	32,443	2%
11	Credit Bureaus, Information Furnishers and Report Users	31,629	2%
12	Television and Electronic Media	26,568	2%
13	Health Care	25,414	2%
14	Business Opportunities, Employment Agencies and Work-at-Home Plans	22,896	2%
15	Computer Equipment and Software	22,621	2%

OK, if you look at number 9 on the list you'll see the complaints about credit repair. If you believe this list at first glance then according to the FTC, there are more complaints about credit repair companies each year in the US than there are about credit bureaus (listed as number 11)!

Of course this is absurd. The actual number of consumer complaints about credit repair companies is insignificant. It's a tiny fraction of 1%! It doesn't even belong on this important list. So why is it listed by the FTC? How did credit repair make it to number 9, two positions ahead of credit bureaus?

The truth is the FTC juggled the facts and lumped credit repair in with Advance-Fee Loans and Credit Protection services like Life Lock, two industries that have absolutely nothing to do with credit repair! They did this to game the results. It makes it look like credit repair receives enough complaints annually to be ranked number 9 but the fact is if the FTC didn't lump credit repair in with two unrelated industries, credit repair complaints wouldn't make the top 1000 in an honest list.

But it gets better. The number one source of consumer complaints year in and year out has been the credit reporting industry, three companies, Equifax, Experian and Trans Union. No other industry even comes close. Why then does the FTC list credit bureaus way down at number 11?

For some reason they don't want to reveal the true picture to the American public. Look at number 1 on the above consumer complaints list. It's labeled "Identity Theft". That my friends is a euphemism for "Credit Bureaus"! Therefore, one must add the number of complaints from item 1 with item 11 to get the truth about the number of consumer complaints about credit bureaus each year in the US. That's over 300,000 complaints! Credit repair companies don't belong on this list at all. That's what the facts truthfully reveal. It's a clear example of FTC support of credit bureaus and bias against credit repair companies.

Chicago's Norma Reyes Misleads Public With Credit Repair Dog and Pony Show

In another colossal waste of taxpayers' money, the city of Chicago has charged nine credit repair companies with fraud while turning a blind eye on true culprits Trans Union, Equifax and Experian. Shockingly, Norma Reyes, Chicago's Commissioner of Consumer Services has teamed up with one of the nation's most corrupt and dishonest organizations, the Better Business Bureau, to pull the wool over Chicagoans' eyes about credit repair.

Norma Reyes's co-star in the credit repair show, the Better Business Bureau runs one of the country's largest con games. They don't police businesses and they certainly don't look out for consumers. They extort money from businesses by branding those who refuse to pay with low ratings.

Local BBBs are independently governed by their own board of directors but are "monitored" nationally by the Council of Better Business Bureaus. These charlatans receive the bulk of their income by charging annual tribute from the very businesses they report on! Depending on the size of the business, "accreditation" costs from several hundred to several thousand dollars a year. Only an accredited company (one that pays an annual fee) can receive the highest BBB rating, A+. It's a huge conflict of interest. They unduly protect businesses who pay them and unfairly rate businesses who refuse to pay up. It's crooked to the core. This is who Norma Reyes chose to associate with in presenting her dog and pony credit repair show to the press.

This witch hunt is just the latest chapter in a highly financed public relations smear campaign funded and rooted in the credit reporting industry's decades long effort to direct attention away from their failed data gathering systems and on to a straw man, the credit repair industry. Norma Reyes has hurt consumers by continuing this consumer credit charade.

How did the credit repair industry become the most regulated service industry in the United States? Was it because all credit repair organizations are "vultures" (as Reyes calls them) and "scam artists"? Of course not. The majority of credit repair services are honest and ethical. They provide much needed assistance to consumers victimized by obdurate, uncaring, unfair credit reporting companies like Chicago based Trans Union Corporation. Credit repair companies force credit bureaus to report accurately and the bureaus hate them for it. It costs money for the credit bureaus to accurately report consumer credit history. They would much rather deal with a public uneducated in the ways of credit bureau stalling tactics, high consumer credit payment history error rates and a two digit CDV dispute verification process that borders on the ridiculous.

More than twenty years ago the credit bureaus devised a plan to discredit and destroy the much needed credit repair industry. Through their lobbyists and associates they wrote draconian legislation that, if passed by Congress, would make it virtually impossible for credit repair companies to survive. Although hundreds of small credit repair business owners wrote and met with Senators and members of Congress to warn them what was really happening, they could not compete with the deep pockets of the credit bureaus, banks and insurance companies. In the end, the credit repair companies and American consumers lost.

Now a small business owner involved in credit repair has to jump through a number of regulatory hoops just to stay in business. Plus, he can't get paid until after all the services have been completed! Due to credit bureau stalling and delaying tactics it can take four to six months or longer to complete a credit repair case. What business can survive that long without cash flow? Does anyone actually believe these harsh rules were dropped on the credit repair industry for the sole purpose of protecting consumers? Of course they weren't. They were passed to destroy the credit repair industry because the powerful credit reporting industry wanted them out of the picture. It's that plain and simple. That's the way government works in America. Those with the money make the rules; those who try to earn a living helping victims of credit bureau abuses get the shaft.

However, the American entrepreneur is resilient. Many credit repair experts found they could abide by the restrictive rules and still make a living helping victims of an unjust, unfair credit reporting system. If they defined the services they provided then they could offer the public a fair contract that would pass muster and allow these companies to receive revenue on a monthly basis. Once again consumers had an effective option to fight the credit bureaus.

This brings us to Chicago and Norma Reyes's credit repair witch hunt. These credit repair press conferences pop up every few years, usually on a state level or national stage. Their purpose is not to protect the public; it's to protect the credit bureaus by discrediting the credit repair industry. As I mentioned earlier, this negative PR campaign has been going on for over two decades. If these Government agencies were truly concerned about helping American consumers wouldn't you think they would go after the major credit reporting agencies like Trans Union, Equifax and Experian? Credit bureaus receive more complaints than all other major corporations combined, yet any action taken against them by state or federal authorities amounts to a slap on the wrist. Do you think Norma Reyes would have the courage, fortitude, honesty or political guts to go after Trans Union Corporation for the pain and misery they have foisted on many of the good people of Chicago? Of course she wouldn't. She's just another lawyer, another Chicago politician.

There are bad apples in all industries. Credit repair is no exception. However there were already plenty of laws in place to address these issues. In passing strict credit repair statutes, states and the federal government were now using a sledge hammer to swat a fly. As I mentioned earlier, these laws were not passed to protect consumers; they were enacted to hamper and destroy legitimate credit repair businesses so major credit bureaus would not have to spend money verifying the accuracy of credit reports.

What Norma Reyes could have done with the "Chicago 9" is so simple. If she discovered some questionable tactics, an instructive warning would have put any honest credit repair business owner right back on track. The owner would have thanked the Commissioner after putting in policies to correct his mistakes. The amount and interpretation of credit repair regulations can be very confusing and honest mistakes can be made. This doesn't make the business owner a "vulture".

If one or more of the companies in question ignored her warnings or was suspected of a more egregious violation, then Commissioner Reyes would serve the public well by charging them. I have no problem with that. However, look at what she did. She called a press conference to indict an entire industry! She stood next to a BBB flim flam man and used a broad brush to paint all the small businessmen as vultures. That is disgraceful.

Seeking help from Trans Union, Equifax or Experian to correct and improve your credit report is like going to Charles Ponzi or Bernie Madoff for investment advice. It's insane, yet it's precisely what Norma Reyes and other consumer watchdogs advise you to do. Credit bureaus make their huge profits by controlling the reporting of negative credit information. The last thing they want is a fair system that gives folks control over their own personal information. Credit bureaus don't view you as their customer. You're just a nuisance to them. They view banks, finance companies, insurance providers, large creditors, property owners and employers as their customers. A credit bureau will never provide thorough, complete credit repair advice. It would be against their best interest to do so. You will only achieve remarkable credit repair results by using the services of a competent credit repair expert or by learning all the powerful techniques on your own. Simply calling a credit bureau's consumer assistance line and expecting your credit reports to be corrected is naive at best.

I've always found it ridiculous when some consumer advocate knucklehead slams credit repair for being a service one can do for himself. Will he also disparage an oil change service like Jiffy Lube, a restaurant like Mortons or MacDonalds, a tax preparer like H & R Block, a cleaning lady, a real estate broker? All services that offer something you can do for yourself. Plus, a knowledgeable, effective credit repair expert is often the only way to obtain a credit report that accurately reflects your true credit worthiness.

The great 19th century actress, Sarah Bernhardt once said about Chicago, " I adore Chicago. It is the pulse of America." After Norma Reyes's specious performance, Sarah is surely turning in her grave.

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How Quickly Does Paying Down A Credit Card Affect Your Credit Score?

How quickly must you pay a credit card to affect your credit score? 

Often it doesn't take very long to reduce the balance in order to have a positive impact on your score. However, before a credit card can have a positive effect on your scores two things must happen:
1) the credit card issuer must report the depreciation to credit bureaus. 2) credit bureaus must update your credit record with the depreciation. 

The absence of a credit score 

Not all credit records are eligible for a credit score. There are minimum score requirements to ensure that results are delivered as specifically as possible. There are several reasons why credit scores may not appear on a credit report, including:

    * The consumer has no activity on the accounts over the last six months
    * The consumer has insufficient credit history to calculate the credit score again or not enough credit established. Generally, two years of credit history is required to obtain a score
    * The file parameters are too large, the file contains 100 lines or more of trade lines and combined search data
    * Incomplete data has been entered to access a report (eg, code generation and middle initial term required by the credit bureau to provide an archive and punctuation)
    * The consumer has been reported to the credit agencies as deceased
    * Consumers have reported being defrauded
    * The consumer has a new credit file without combining with one of the three reporting agencies
    * Incomplete history of residence was registered to access a credit report (2 years minimum)