Home

Posts Tagged ‘credit repair’

Friday, March 19th, 2010

Financial News This Week: More Consumer Protection

The FTC has recently settled several cases relevant to consumer protection and financial stability. Here’s a summary of those cases and how they may impact you.

LifeLock Pays $12 Million, Stops Deceptive Claims

Not long ago, LifeLock ran a campaign offering comprehensive protection against identity theft for consumers. However, the FTC reports that 35 states’ Attorneys General challenged those claims, since the protection LifeLock offered was less than stellar.

In its ads, LifeLock claimed that it:

  • Guaranteed protection against identity thieves ever getting their hands on subscribers’ information
  • Was the first company to offer such complete and comprehensive protection
  • Stopped identity theft before it occurred
  • Stored all personal data in encrypted electronic files
  • Gave access to sensitive information only to secured individuals
  • Used “highly secure” protection (physical, electronic and managerial) to prevent fraud

These services were offered for the price of $10 per month. Because these claims somewhat overstated the actual protection the company offered, many consumers lodged complaints and now LifeLock is prohibited from advertising services they can’t actually offer.

Refund Checks Coming to Victims of Health-Related Scams

The company Roex, Inc. reportedly sold a range of products, including infrared saunas and dietary supplements, which they claimed would cure or alleviate symptoms of numerous serious diseases.

But the results didn't match the advertisements, and the FTC has ordered the company to make payments to past customers. The average amount of the refund check is $500.

Consumers who bought products from Roex, Inc. should be on the lookout for these checks, mailed March 5, 2010, and deposit or cash them – they are not a scam. The FTC notes that 5,700 checks were mailed, with a total value near $3 million.

Credit Repair Scammers Settle with the FTC

An Illinois-based credit repair scammer has recently come to a cash settlement with the FTC for falsely indicating to consumers that it could remove negative entries on their credit reports, even if they were accurate and current, which violates federal laws. Some consumers who filed bankruptcy were targeted by the scam.

To avoid credit repair scams, keep in mind:

  • Accuracy isn’t negotiable: Correct information on your credit report cannot be legally removed for seven years.
  • Don’t pay upfront: If someone asks for money before performing a service, watch out.
  • There’s no easy fix: Credit repair takes time and diligent effort. Shortcuts will only get you way off the track.

Tags: , ,
Posted in Identity Theft | 2 Comments »

Thursday, April 2nd, 2009

Credit After Filing Bankruptcy: Steps to Success

Credit traps are dangerous to everyone, but they can be especially damaging to those trying to rebuild credit after filing bankruptcy.

As you work your way to financial health, make sure you steer clear of these common post-bankruptcy pitfalls.

  1. Failing to Plan: When you receive your bankruptcy discharge, you’ll likely be debt-free; but that will only last as long as you spend less than you make. It may sound simple, but many people forget that continued financial health depends on continual, conscious planning.

Solution: Make sure you develop a budget and stick with it.

  1. Slipping into Old Habits: If you’re like most Americans, you needed bankruptcy protection because some crisis (like divorce, death, layoff, injury or a lawsuit) pushed you over the edge; but you may have also had financial habits that left you unable to weather a storm: over-reliance on credit cards, use of payday loans, having little or no savings, etc. After bankruptcy, it’s more important than ever to avoid such costly sources of credit.

Solution: Take advantage of the tips offered in the financial management course you’ll take during your bankruptcy – they’re designed to help you stay out of debt!

  1. Credit Repair Scams: Solutions that promise to wipe out bad credit, erase your credit history or achieve any other feat that seems too good to be true should be avoided. There’s no quick way to improve your credit and most offers of this type will likely cost you money and hurt your credit.

Solution: Take the slow-and-steady route to better credit: pay off your bills every month, don’t open more credit cards than you need and stick with your budget. Over the course of a couple years, you should see your credit improve.

  1. Picking the Wrong Plastic: As you rebuild your credit, you’ll want to open a credit card account. But be wary of the offers you receive in the mail. Your post-bankruptcy status may mean you’ll have to pay higher interest rates or fees than a borrower with stronger credit, but don’t settle for shoddy terms. Know which credit cards to avoid.

Solution: Consult with your bankruptcy lawyer if you’re not sure about the terms of a credit card agreement and consider visiting a site like bestcreditcards.com to see the variety of options available to you.

With some planning, discipline and perseverance, YOU CAN rebuild your credit after filing bankruptcy.

Tags: , , , ,
Posted in Post-Bankruptcy Debtor Education | 1 Comment »