New Orleans - 1 Million Bankrupt or Hit with Bad Credit

As catastrophe victims are displaced from their homes and jobs, how will the credit reporting agencies treat these people and their credit reports?

(PRWEB) September 2, 2005 -- The Financial Maturity Blog is doing some special coverage regarding how credit bureaus are planning to help Hurricane Katrina crisis victims with regards to bad credit caused by inability to make payments.

THE PROBLEM:

Creditors automatically report electronically a person's payment or late payments to the credit reporting agencies at their given reporting period.

FINANCIAL MATURITY BLOG'S CONCERN:

If crisis victim's are displaced from their jobs and homes, they may not be able to make their payments in a timely fashion. This is not due to a lack of diligence on their part.

We are concerned that Equifax, TransUnion and Experian may not be able to keep up with the volume of requests with regards to ensuring that the reporting is correct once the crisis is over.

Monty Loree - owner of the Financial Maturity Blog has contacted each of the three major credit bureaus by phone and email and will continue to post information received from the credit bureaus as he receives it.

BACKGROUND HISTORY

We're in a 'mechanical' credit society. The creditors and credit bureaus seem to have no mercy for people and their credit.

The reports from news stations such as CNN and MSNBC are that there are one million displaced people in New Orleans and Mississippi, etc., who are homeless and without jobs.

These million people have:

* Mortgages

* Lines of Credit

* Credit Cards

* Other types of credit.

ONE MILLION PEOPLE WITH BAD CREDIT OR BANKRUPT?

If these unfortunate people are displaced from their homes and jobs because of Hurricane Katrina, they are going to default on their credit payments for the next several months. Many are going to be forced into bankruptcy.

All credit items and lack of payments are recorded 'electronically' by the creditors to the credit bureaus Equifax, TransUnion and Experian.

MECHANICALLY REPORTED DEFINED:

At each reporting date, a creditor will send an electronic computer data file of all of their customers' accounts and payment histories to the major credit reporting agencies. This information is all generated programatically.

'Late payments' will be recorded automatically when the crisis victims can't make their payments. These automatic records will not be describing the true credit history or 'intent to pay' of the crisis victims.

If you would be interested to hear from the credit companies and the credit bureaus how they intend to show some reasonability with these hurricane victims, the Financial Maturity Blog is bringing regular updates.

We are covering this so that the crisis victims, the victims' friends or relatives may need information about this subject, please visit the Financial Maturity Blog at the address given.

The Financial Maturity Blog is a discussion of the emotional and financial maturity aspect of how people use their money. The subject material is relevant to people of all ages, financial levels, net worths, etc.

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