The implications of these errors are serious; people need to know to check not only their credit scores, but also the facts and figures used to create them.
Queens, NY (PRWEB) August 26, 2013
When clients come to Bruce Feinstein, Esq., a bankruptcy attorney in Queens, NY, they are looking for debt relief. This may mean stopping a foreclosure, removing a lien, or going through a Chapter 7 or Chapter 11 bankruptcy. Mr. Feinstein’s clients often want to improve their credit, but there may be more factors affecting their credit scores than missed loan payments.
Mr. Feinstein cites a recent study by the FTC (Federal Trade Commission) from December 2012, which states that one in four credit reports have errors. So along with the other best practices Mr. Feinstein gives his clients to ensure fiscal health and responsibility, he also supports keeping a close watch on the information used by credit agencies to make their scores.
The validity of credit scores has recently come under fire after a woman in Oregon was awarded over $18 million in punitive damages from Equifax, one of the three U.S. credit reporting agencies. The case, number 3:11-cv-01231 in the District Court for the District of Oregon, Portland Division, once again put the spotlight on credit agencies and their ability to cause serious harm with errors and misinformation. The FTC study further supports this claim; one in 4 American consumers have errors on their credit reports, while around one out of 20 had mistakes egregious enough to negatively affect their ability to get fair loans, and insurance. This can cause permanent, severe damage to a person’s finances.
“The implications of these errors are serious; people need to know to check not only their credit scores, but also the facts and figures used to create them,” says Mr. Feinstein. Mistakes on these reports are common, and are not so simple to fix. A New York Times article published August 2, 2013, explains that consumer reporting agencies (CRAs) often handle credit report disputes using automation. But errors are often a case of mistaken identity; for example, two people with the same name may end up having mixed files that affect their scores. But automation won’t fix these errors, causing more stress and hassle to consumers.
One options is to contact the Consumer Financial Protection Bureau (CFPB) with issues of credit report errors. The CFPB oversees the nation’s CRAs and can provide guidelines and rules that they must follow. Reporting to the CFPB increases the voice of consumers and the collective power they can have when it comes to governing large agencies.
Credit scores are just one part of the bankruptcy process in Queens, and Mr. Feinstein believes that consumers should keep their fingers on the pulse of their three major scores just like they would other parts of their financial profile.
Bruce Feinstein, Esq. and his team, located in Queens, New York, help clients who are filing for bankruptcy in Queens, Kings, and Nassau counties. Visit the Law Offices of Bruce Feinstein, Esq. at bfeinsteinesq.com or call (718) 514-9770 to reach his New York office.