Do Credit Bureaus Enable Extortion Schemes?

In an article written by Cathy Moran, a California Bankruptcy Lawyer, the term “extortion” is again used. In her article, “Doesn’t this seem like extortion,” she talks about the June 2006 AARP magazine and the touting in that magazine about an AARP sponsored law enacted in Arizona that prevents theft of one’s identity for a fee. Arizonans will now be able to bar credit reporting agencies from releasing their personal financial information to banks and businesses for a fee of $ 5.00 per credit reporting agency. This sounds like the credit agencies are saying “We have personal financial information about you that might harm you. However, if you pay us, we won’t release it to anyone.” Cathy Moran, a lawyer, states that this seems like extortion to her. Cathy exclaims:”Why should that information be available in the first place and why does one have to pay to prevent misuse of the information? What am I missing here?”

Brian Nelson, writer for the Finance Gourmet, in his article, “Credit Monitoring Scam” exclaims:

“One of the biggest financial scams in America comes courtesy of the credit reporting industry and the three major credit reporting bureaus. In class Mafia-style extortion, a tough looking guy visits a local business. He says that bad things might happen to his business. In order to be safe, he should pay for “protection”. Of course, the only protection the business needs is from the crooks offering the protection. Credit reports and credit report monitoring work the same way.”

In his article, Brain goes on to say “The credit bureau’s extortion scheme works exactly the same way. You see, bad things might happen to your credit report. Someone might put false, damaging information on your file. The “smart” thing to do is to check your credit report often. To do that, you have to pay your protection money a credit monitoring service so that you can be informed when negative information goes on your credit report. Of course, the only thing you need “protection” from is the credit bureaus and their lackadaisical efforts to ensure that only accurate information is on your credit report. Not surprisingly, Transunion, Experian, and Equifax all gladly offer high-priced credit monitoring protection.”

There are big questions in the credit reporting industry. Example: If a porn service bills people who never used their services. Is that attempted fraud? If the porn service then turns over the charge to be collected to a collection agency, is the collection agency then an accomplice to attempted fraud? If the porn company phones the people, that supposedly owe for services, and threatens to put the charges on their credit report if they don’t pay, is that extortion? If the credit reporting agency adds this unfavorable item to the people’s credit report and they are denied a home or auto purchase due to this item, is this then extortion. Is it legal for the credit bureau to enable crooks to extort money from consumers? The idea for this example came from rip-off reports currently on the Internet.

John Smalley is owner at an Austin web design company and advocate for consumer rights. If you have had a bad experience with credit bureaus and would like your story published online to expose their dealings, e-mail me at or write to JF Smalley, 12343 Hunters Chase Dr., Apt. 1515, Austin, Texas 78729.

Kind Credit Bureaus photographs

Various nice credit agencies pictures I found:

Clarke County
credit reporting agencies
Image by Mississippi Department of Archives and Record
Collection: Mississippi Farm Bureau Federation Range
Phone quantity: PI/2010.0002/Series II
Program ID: 107920.
Backlink to the catalog

Clarke County.

Please see our profile web page for informative data on ordering.

Scanned as TIFF in 2011/10/27 by MDAH.

Credit: Courtesy of the Mississippi Department of Archives and record

Carroll Co. Co-op, Vaiden Branch
credit agencies
Image by Mississippi Department of Archives and Record
Range: Mississippi Farm Bureau Federation Collection
Call quantity: PI/2010.0002/Series II
Program ID: 107836.
Url to the catalog

Carroll Co. Co-op, Vaiden Department.

Please see our account web page for all about ordering.

Scanned as TIFF in 2011/10/26 by MDAH.

Credit: Courtesy of the Mississippi division of Archives and History

Sweet Credit Agencies photographs

Some cool credit bureaus photos:

Unidentified guy and woman at podium
credit reporting agencies
Image by Mississippi Department of Archives and Record
Collection: Mississippi Farm Bureau Federation Collection
Phone quantity: PI/2010.0002/Series II
Program ID: 107781.
Url to the catalog

Unidentified guy and woman at podium.

Please see our account page for information about ordering.

Scanned as TIFF in 2011/10/18 by MDAH.

Credit: Courtesy of the Mississippi division of Archives and record

Alcorn Co. Co-op. Co-op Farmer.
credit agencies
Image by Mississippi Department of Archives and History
Collection: Mississippi Farm Bureau Federation Range
Phone number: PI/2010.0002/Series II
System ID: 106544.
Backlink to the catalog

Alcorn Co. Co-op. Co-op Farmer.

Just see our account page for all about ordering.

Scanned as TIFF in 2011/10/17 by MDAH.

Credit: due to the Mississippi division of Archives and record

How To Dispute Credit Bureaus and Correct Your Credit Report

If you have recently checked your credit reports and have found negative items you can file a dispute with the credit bureaus and have them investigate these marks. It is incredibly important to ensure that you have a clean credit record as many lending institutions have instituted new approval requirements as a result of the financial crisis.

There are a number of reasons why you can file a dispute with the credit bureaus and have them remove an item from your credit report, reasons include: the debt is not mine, the dates on the account are incorrect, the balance due is wrong, the account is paid… A common tactic collection agencies use to manipulate individuals into paying a debt is by reporting a the debt on their credit history for longer than the legally allowed seven years.

The Steps Required To File A Dispute

You are going to need to write a credit dispute letter and mail one to each bureau. In this letter you need to include your name, your personal information, the item you are disputing, supporting evidence, and it would also be a good idea to include a reference to the Fair Credit Reporting Act. The Fair Credit Reporting Act is a piece of federal law that requires the credit bureaus to investigate any item on your credit report that you file a dispute on.

What Items Should You Dispute?

The Fair Credit Reporting Act says that every citizen is entitled to dispute any item they believe is inaccurate. As we mentioned earlier there are all types of reasons that an item on your credit report can be wrong.

While it may not be morally correct it would be in your credit scores best interest for you to dispute every negative item on your credit report. You should know that you will never be liable for any legal proceedings for disputing an item that you know is correct. In other words you have nothing to lose if you dispute every item on your credit reports.

What Happens After I File My Dispute

Typically the credit bureaus are going to respond by requesting more information however this is nothing more than a stall tactic on their behalf. The credit bureaus have discovered that it is in their financial interest to avoid consumer credit disputes because there is no profit to be had by correcting information they collected about a consumer.

The reality is the only reason the credit bureaus do investigate consumer disputes is because of the Fair Credit Reporting Act. Even with this piece of federal law the credit bureaus have still been fined multiple times by the FTC for violating federal regulation.

You can dispute items on your credit report yourself or if you have trouble we would encourage you to consider hiring a professional credit repair attorney to assist you. The credit bureaus are required to investigate every consumer dispute according to federal law, you don’t just have to live with bad credit.

Once the credit bureaus get your dispute letter and deem it valid they are going to conduct an investigation. They will contact the debt collector or creditor that has created the negative entry on your credit report and ask them to verify that the account is yours and all the related information such as the balance due.

If the credit bureaus are unable to verify this information then they are required to remove the bad credit items from your credit report. It is estimated by experts that up to 80% of all bureau of investigations result in the removal of an item.

For a free credit analysis call (toll free) 1-800-298-4297 or for more about how to dispute credit history and erasing bad credit items on your record visit us.

Related Credit Bureaus Articles

FICO scores and credit bureaus

< iframe width="425" elevation="355" src="" frameborder="0" allowfullscreen > Do you recognize who regulates credit history? Why is credit score a lot more essential than cash? How can a person win in today’s society if they are residing in hardship? Is it reasonable for your credit report history to be used as a measure of personality and also viability for employment? What’s the genuine reason behind retailers’ as well as food store’ commitment cards? The solution to these therefore lots of other interesting inquiries are exposed by Corey P. Smith
Video clip Score:/ 5

Why Banks and Credit Bureaus Love Low Credit rating

The majority of people recognize having a reduced credit history sets you back greater than having a high one. Nevertheless, what couple of customers ever learn is simply how pricey their reduced credit rating truly is. Today …

* We WO N’T speak regarding the truth a reduced credit rating can cost you a great work (due to the fact that over 50% of employers are currently running debt look at task applicants).

* We WO N’T speak about the fact you could finish up paying up to 40% more for your vehicle insurance policy (since most insurance firms currently examine credit scores when estimating premiums).

* We WO N’T speak about the reality most energy business for Electric, Gas, Water or Wire now require a deposit prior to solutions can be transformed on due to the fact that of a low credit report.

as well as

* We WO N’T discuss the other FIVE ways a reduced credit report will certainly cost you money and also make life harder monthly.

No … today we’re going to chat regarding the one way a low credit history will cost you a lot of money as well as why the banks as well as credit score bureaus enjoy your reduced credit report (if you pick to not do anything concerning it). This one aspect of credit rating if not dealt with will certainly set you back the average American over $ 100,000. Even even worse, it can cost the ordinary mortgage broker or financing police officer over $ 100,000 … each year. The saddest part of all? The banks as well as credit rating bureaus win if you pick to do nothing because its’ your loss and your loss IS their gain. Allow us explain … We all understand the largest acquisition a customer will certainly make in their life time is their house. As a result, the best quantity of passion ever paid in a customers’ life time will get on the lending, for that house. Again, many consumers understand with a reduced credit report score they’re going to pay a higher rate of interest on that particular car loan. However, couple of customers ever find out the REAL amount that raised interest ends up costing them over the life of the loan. Nevertheless, the regular American Customer now lives in a world where their only emphasis when funding anything, is all about,

The MONTHLY Repayment.

This kind of assuming feels great in the brief run yet becomes expensive in the future. Allow’s look at some accurate numbers about why with the tale of Costs and Ted. Bill and also Ted both acquired homes in the very same area, on the same road as well as for the very same price. Costs had a high credit score and also borrowed $ 180,000 to buy a 4 bed room 3 bath house. Since of his high credit rating score he obtained a 30 year dealt with price lending at 5.5% interest. Right here’s what Bills loan looked like:

His car loan quantity was $ 180,000 His rate of interest rate was 5.5% This provided Expense a monthly repayment of $ 1022.02 His repayments over Thirty Years totaled $ 367,927.00 His passion paid over the term completed $ 187,927.00 (Of his $ 367,927 in complete repayments … $ 187,927 mosted likely to passion). Costs spent for his residence two times after passion, however don’t cringe till we’re done speaking about Ted.

Ted had a reduced credit report rating and borrowed $ 180,000 to buy a 4 bed room 3 bath residence on the very same road as Bill. He obtained a Three Decade taken care of loan also, yet due to his reduced credit report his rates of interest was 8.0% rather than Costs 5.5%. Here’s exactly what Teds financing for the same $ 180,000 car loan looked like:

Teds funding quantity was $ 180,000 His rates of interest was 8.0% This provided Ted a regular monthly repayment of $ 1320.78 (about $ 300 more monthly than Expenses) Teds settlements over Thirty Years totaled $ 475,479.00 Teds interest paid over the term amounted to $ 295,479.00 The problem is NOT that Ted paid over $ 295,000 in rate of interest on his car loan of $ 180,000. The actual concern is that Ted paid $ 108,000 MORE in passion than Bill simply due to the fact that his credit history was lower!

Teds amount to home mortgage interest paid = $ 295,479.00 Bills overall home mortgage passion paid = $ 187,927.00 Distinction = $ 107,552.00 The rough fact is that Ted’s credit rating cost him $ 107,000 … Yet that’s not the actual disaster of the story … The most awful component is Expense as well as Ted were siblings and also both had bad credit rating at the exact same time (years before getting their residences). The only difference was Expense acted to repair his credit report, while Ted really did not. Currently, ask yourself “That obtained Teds’ $ 107,000 in additional rate of interest settlements?” SOLUTION: The Bank. As well as that’s why financial institutions love reduced credit rating. Customers like Ted are even more lucrative than clients like his bro Costs. All because a lower credit rating implies they have to pay a higher rates of interest as well as a lot of people like Ted do not see the large photo, rather they only focus on …

The MONTHLY Payment they can manage.

Financial institutions like people like Ted since they make millions off them. Will you wind up resembling Ted as well as discarding over $ 100,000 in interest settlements on your residence? Hopefully not … Since we’ve covered why banks love low credit report ratings … allow’s speak about why Credit history Bureaus like them just as much (otherwise even more). “Why Credit scores Bureaus Love Low Debt Scores …” If you ask 10 Americans on the road … “Just how do Credit report Bureaus generate income?” You will certainly invariable obtain the same answer all 10 times: “By Selling Credit News of Program!” While this response is true, it’s not … the entire reality. The truth is that Credit rating Bureaus make the bulk of their loan offering individual info, not running credit score records. In the instance of Costs and Ted one doesn’t need to be smart to realize that Ted is a more successful customer to the bank then Bill, because Ted needs to pay a higher rates of interest as a result of his credit rating. This is since Ted is just what’s known as …

“A SUB-PRIME Debtor” Considering that sub-prime consumers are much more lucrative consumers since they pay greater rates of interest, there is a successful organisation for Debt Bureaus to market lead data to Mortgage Lenders. Remember, Credit report bureaus make the MASS of their loan NOT by offering credit history records yet by marketing personal info. As well as, the only thing a lot more profitable compared to offering individual information, is when you can sell that very same individual information, over as well as over to, multiple customers. Let us complete with simply one example …

“TRIGGER Leads” A while back the Credit history Bureaus developed an exceptionally profitable item to offer to home mortgage brokers called “TRIGGER LEADS.” The very best method we want to clarify a “Trigger Lead” to consumers, is to have them envision they working from their neighborhood Constables office responding to the telephone. Then, every time a person calls as well as offers their name, address as well as telephone number in order to submit a cops record that their house was just burglarized … they then take that information as well as reverse and also market it as a “Lead” to 20 different “House Security Companies” so they can contact the current victim regarding acquiring a safety and security system for their house. Besides, you can’t locate a “Warmer Lead” for a home safety system compared to a person whose simply had their home burglarized within the last 1 Day! Triggers Leads essentially function the very same way other than they’re sold to home mortgage brokers. It functions like this: Joe Customer goes to his regional bank or home loan broker to obtain pre-qualified to acquire a residence. Because of this, the lending institution pulls his credit rating while doing so. The Credit history Bureau see that Joe Customer is going shopping for a loan so they then offer his name, address and also phone number to various other home loan brokers as a “Trigger Lead” within 1 Day, so they can call him as well as pitch him a much better bargain. Audio fascinating … It gets much better. In some instances the “Trigger Lead” will be offered 20 times in much less than 24 hrs. Stunned? Don’t be … not until you learn that “Trigger Leads” can cost around $ 5 each (or more relying on the data chooses). So allow’s damage down the numbers actual fast. Joe Customer gets his debt drew in the process of “pre-qualifying” for a residence mortgage. His personal info is after that cost $ 5 as a “Trigger Lead” to up to 20 various home loan brokers within 1 Day. Merely math informs us that if 20 Individuals Each Pay $ 5 for Joe’s Get in touch with Details that’s $ 100 generated off Joe’s Call! Currently envision the number of “Joe’s” are created every day by the Credit report Bureaus? Marketing sales leads for financings as well as bank card offers allows company for the Credit report Bureaus. Just how lots of other services have a data source of over 200 million names they can make loan off offering repeatedly? Now, imagine WHO is the most rewarding “LEAD” they can offer? An individual with a HIGH credit rating? Or An individual with a LOW credit rating? The solution is noticeable. As well as, it additionally ends up being noticeable why the Credit history Bureaus have automated a lot of their customer disagreement refines overseas. It’s additionally the reason the Credit scores Bureaus have actually revealed no genuine incentive to decrease the number of destructive errors in customer credit rating reports with passing stricter information administration. Ultimately “SUB-PRIME Debtors” are extra hopeless and extra successful which’s the reason that the Credit scores Bureaus love your low credit report.

Jay Peters is the creator of Debt Repair Posting and also has been publishing credit repair service info considering that 1994. For their free book titled “28 Debt Secrets the Banks, Collections Agencies and also Government Do not Want You to Know!” See their site at:

Nice Credit Bureaus photos

Look into these credit history bureaus pictures:

Claiborne Co. Co-op< img alt=" debt bureaus" src="" width=" 400"/ >
Picture by < a href=" "> Mississippi Department of Archives as well as History Collection: Mississippi Ranch Bureau Federation Collection
Call number: PI/2010.0002/ Collection II
System ID: 107863.
Web link to the brochure Claiborne Co. Co-op.

Please see our profile web page for details on purchasing.

Scanned as TIFF in 2011/10/26 by MDAH.

Credit rating: Courtesy of the Mississippi Division of Archives and Background

Farm Bureau, Claiborne Royalty

Some awesome credit rating bureaus pictures:

Ranch Bureau, Claiborne Aristocracy
credit bureaus
< img alt=" debt bureaus" src="" size=" 400"/ > Photo by< a href=" "> Mississippi Division of Archives and also Background Collection: Mississippi Farm Bureau Federation Collection
Call number: PI/2010.0002/ Collection II
System ID: 107850.
< a href=http://”
” rel=” nofollow ” > Connect to the directory Farm Bureau, Claiborne Royalty. Please see our

account web page for details
credit bureaus
on buying. Scanned as TIFF in 2011/10/26 by MDAH. Debt: Thanks to the Mississippi Division of Archives as well as History

Claiborne County< img alt=" credit bureaus" src="" size=" 400"/ > Picture by< a href="" > Mississippi Department of Archives and History Collection: Mississippi Farm Bureau Federation Collection Call number: PI/2010.0002/ Collection II System ID: 107862.
< a href=http://”” rel=” nofollow” > Link to the magazine Claiborne Area.

Please see our < a href="" > profile page for details on getting.

Checked as TIFF in 2011/10/26 by MDAH.

Credit rating: Thanks to the Mississippi Department of Archives and also History