New York SBDC Research Network

Written by LaToya Irby Find more at The Balance A 609 letter is one of the latest internet credit repair “secrets” that claim the ability to remove any kind of information from your credit report - even accurate information––based on a “loophole” in the credit reporting law. If you’ve been working to improve your credit, a 609 letter sounds like exactly what you need to get negative accounts taken off your credit report. What is a 609 letter and does it really work? Credit bureaus collect consumer credit information from various sources, like banks, then resell that information to businesses who need to evaluate consumer credit applications. Credit bureaus are governed by the Fair Credit Reporting Act, which details what credit reporting agencies and information furnishers can and cannot do when they’re reporting consumer information. One of the credit bureaus’ responsibilities is to only include accurate and verifiable information in consumer credit reports. Use of the 609 lett...

The Federal Trade Commission has created new guidance for businesses aimed at giving employment background screening companies information on how to comply with the Fair Credit Reporting Act (FCRA). The guidance helps companies understand when their work defines them as a consumer reporting agency under the FCRA. Consumer reporting agencies must meet a number of obligations outlined in the FCRA, including investigating consumer disputes and correcting inaccurate information. The FTC’s guidance outlines the requirements that employment background screening companies face under FCRA, including their requirements in dealing with their clients and how they interact with consumers. The guidance can be found on the FTC’s website.

Have you found a mistake in one or more of your credit reports?  The Mid-Hudson SBDC has compiled guidance on how to fix an error on your report.   How To Dispute an Error in Your Equifax Credit Report If you find an error in your Equifax Credit Report or in any of the products that contain information from your file, you should initiate an investigation with us free of charge using one of the three methods described below. We will investigate your concerns directly at the source (creditor, collection agency or courthouse), respond to you within 30 days, and send you an updated copy of your Equifax Credit Report via US Mail. If you are in the process of applying for a loan, immediately notify your lender of any incorrect information in your file. Your lender will need to reorder your credit file and score once any changes have been made to your information at Equifax. To initiate an investigation, you will need to have a current copy of your Equifax Credit Report. If you...

Building good financial credit is important. It can affect your ability to make large purchases and qualify for a loan or mortgage. Learn more about credit: How Credit Works Why Credit Scores Matter Build a Better Credit Report General Credit Tips

In answer to a question about websites or other resources that offer free credit score information, as opposed to just free credit reports , a colleague pointed out a Wall Street Journal article, Credit Scores: Can You Get Them Free? If you are curious about your credit scores, you may have tried one of the plethora of Web sites and services that offer some free credit information, then lure you into paying for your scores, usually as part of a credit-monitoring package. Consumers are entitled by law to a free credit report— which is simply a record of your borrowing and repayment history — but the numerical scores derived from these reports will cost you, in part because credit-reporting agencies aren't required by law to provide them for free to consumers along with the reports. Now, a handful of companies are launching services that give consumers at least a glimpse at their credit scores free of charge. The sites— Credit.com Inc., Credit Karma Inc.'s CreditKarma.com and Qu...

The NYS SBDC Central office has been getting an inordinate number of pre-recorded phone calls lately. Many of them are apparently random-number generated and have messages that start: "We're pleased to let you know that you are eligible for our debt reduction service..." Quoting Simon & Garfunkel: "And blah, blah, blah." Since someone has recently asked us about how to build their credit, here are some do's and don'ts. DO establish credit by getting at least one credit card. DO choose a credit card wisely . DON'T, if you do get into credit difficulty, hide the overdue bills in a drawer, but rather talk with your creditors. DO get your credit report . You can get it for free . DO dispute credit report errors - yes, they do make mistakes, especially if your name is common. DON'T believe claims such as "We can erase your bad credit — 100% guaranteed" . DON'T try to hide unfavorable credit information by establishing a new credit ...

An advisor at one of our regional centers asked me to share some information he learned while working with a client last week. During the course of the counseling session, the client revealed she had signed up with a credit counseling service, Clear Your Debt LLC, from Austin, TX. The advisor was concerned when he read the contract the client signed, which prompted him to investigate the company. The Better Business Bureau in Austin told the advisor they had received numerous complaints against Clear Your Debt LLC. Though Clear Your Debt promised financing, counseling and other assistance, the advisor’s conclusion - after reading their confusing contract and talking to the BBB - was that the client would pay $15,000 for basically nothing. At that point, the advisor encouraged the client to return the contract she signed and cancel the agreement (this was within 3 days of the client signing the agreement). The advisor called me and asked that I share the information with other SBDC advi...

We've written occasionally about Melissa Data's website before. There is a wealth of data available. Instead of me listing the highlights for you, below is a list of information that is provided by the site. I've broken it down by the level of geography by which data can be found. With respect to providing research for our clients, I find the links for home sales, nonprofit organizations, business credit reports, and income tax returns especially useful. General U.S. Addresses - Verify & correct any U.S. address. Canadian Addresses - Look up & correct Canadian addresses. Carrier Routes Radius - Displays the Carrier Routes in a radius around a given street address. People Finder - Locate anyone anywhere with public records. Business Credit Report - Comprehensive financials and credit risk facts. Easy-to-read format. By ZIP Code Home Sales - Get the monthly home sales and selling price by ZIP Code. Income Tax Statistics - Income statistics by ZIP Code. House Numbers ...