CreditFactors

Category: Systemic violations

  • myFICO still creates entirely fictitious late payments on Equifax reports

    I just posted the screenshots of a Dell account with fictitious lates and the resulting myFICO negative score factor at 3/19/13 myFICO STILL creates fictitious late payments.

    In 2007 I notified Fair Isaac (myFICO) of this BUG in their software and I can only imagine how many people lost their homes, got divorced and/or sick because these entirely FICTITIOUS late payments caused credit declines and maybe worse, resulted in high rate mortgages.

    Imagine how many people are declined for credit cards or have only very low limits and end up getting payday loans because their FICO scores are 50 or 100 points lower than they would be without the fictitious lates.

    I hope to find the time to notify the Consumer Financial Protection Bureau as the FTC couldn’t care less.

    Until either regulators or courts force myFICO to fix their software, be sure to carefully look for these fictitious lates and try to have the creditor remove those chargeoff notations.

    My client sued Dell because it refused to settle the account and last week Dell offered to settle the lawsuit by reporting a $0 balance.  So now we’re asking Dell to also remove the “CO” reporting to Equifax.

  • Suing Experian for failing to investigate and Chase for reporting FALSE late payments

    A client disputed several accounts with Experian.  It refused to investigate a Household 2nd mortgage and a Chase account with a balance that it had forgiven (1099) because Experian previously investigated the accounts in 2011.  My client had included the Chase 1099 with the dispute.  Trans Union promptly changed the balance to $0 after it received the dispute.  However, Chase also verified completely BOGUS late payments for this account, charged off in 2007.

    I had contacted Chase about the lates on the Equifax myFICO last year and they refused to correct! The account was charged off in 2007.

    Recently my client was DECLINED when he applied for a mortgage because his FICO scores are too low.

    So now it’s time to sue Experian, Chase and possibly CSC.  Of course I’m helping my client since he doesn’t have an attorney and it’s fairly easy to sue in his small claims court.  I’m not even charging my client for helping him with legal research such as finding the registered agent to serve the lawsuit and summons and I won’t prepare the documents for him.   But I decided to post the complaint as I would file it at the CreditFactors member forum and if he wishes to copy the complaint, he can do so — I’m not practicing law, but I post what I would do.

    If he doesn’t get fast results with the small claims suit, he’ll retain an attorney.

    UPDATE 7/8/13:  I just posted the details about the Chase ordeal and the lawsuit:

    Suing Chase and Equifax for verifying incorrect late payments and balance

     

     

     

  • Complaint to NM AG: debt buyer interest charges while account NOT owned

    Like so many debt buyers, Asset Acceptance ignored the dispute and it charges outrageous interest without providing any documentation allowing it to charge interest.

    My client’s complaint and my declaration submitted to the New Mexico attorney general.

    I have never seen Citi or Chase charge interest after an account was charged off.  Yet, debt buyers routinely file lawsuits demanding interest from the date the account was charged off and while they did NOT own the accounts.  In this case Asset is collecting a Citi account and its compliance department advised me that my client’s ONLY right is to pay the account.

    Here is a screenshot of another client’s Citi chargeoff: (more…)

  • FICO scores STILL create fictitious late payments on Equifax reports

    Over three years ago I documented that Equifax myFICO reports often contain entirely FICTITIOUS and extremely FICO score lowering RECENT late payments.  A FICO scoring software “bug” misinterpreted the charge-off reporting as late payment.

    This can NOT be fixed by Equifax as the Equifax direct report does not contain these late payments.

    I notified Fair Isaac, but of course they didn’t care.

    Recently two clients had these FICTITIOUS late payments on their myFICO Equifax reports.  I’ve been meaning to start a new blog about it at Liars and Cheats EXPOSED, but I’ve been so busy.  I hope to take new screenshots of the reporting and the FICO score factors on a new blog in the next few weeks and in the meantime, here’s my OLD 2007 page:

    5/4/07 – FICO scores add FICTITIOUS Equifax late payments long after charge-off

    MyFICO changed the report format and some data labels,  but they did NOT fix this known problem.

  • Experian refusal to investigate factual credit disputes and FALSE accusations of FRAUD

    Here is the repost from the new Liars and Cheats EXPOSED blog at FTC complaint about Experian refusal to investigate factual credit disputes and the documentation and correspondence is posted there.

    My client actually INCLUDED a copy of his drivers license and utility bill with his factual disputes AND Experian provided him with his credit report prior to receiving the disputes.

    Trans Union and Equifax processed the disputes, but on 1/20/10, Experian not only refused to investigate, but also made the most bizarre and FALSE accusation:

    We received a suspicious request regarding your personal credit information that we have determined was not sent by you. This could be deemed as deceptive or fraudulent use of your information. We have not taken any action on this request. Any future requests made in this manner will not be processed and will not receive a response. Suspicious requests are taken seriously and reviewed by Experian security personnel who will report deceptive activity, including copies of letters deemed as suspicious, to law enforcement officials and to state or federal regulatory agencies.

    The SCAN of the 1/20/10 Experian notice.

    We hoped that the law enforcement and regulatory agencies would contact my client after receiving  reports of this fraud from the Experian security personnel.  However, my client was not contacted by anyone.

    On 4/19/10, my client submitted his complaint to the Federal Trade Commission.

    On 5/3/10, he wrote to Experian with the following requests:

    • Identification of all law enforcement and agencies Experian contacted regarding his disputes.
    • The Experian explanation of how it determined that fraud was committed.
    • Deletion of the incorrectly reported and disputed LVNV accounts (this will be addressed in detail at the new LVNV blog)
    • Correction of the student loans.  This is a known systemic problem as all CRAs report the “high balance” as the INITIAL loan amount and they refuse to include the DEFERRED interest that’s added to the loan amount every month.In 9/08 I explained in detail how this INCORRECT reporting lowers FICO scores:

    Credit bureaus and Sallie Mae REFUSE to correct student loan high credit reporting

    • Deletion of several derogatory accounts because Experian does NOT disclose the scheduled deletion date.  Presumably, the accounts are not scheduled for deletion.

    I can’t wait for the response from Experian and it sure would be nice if the FTC actually contacted Experian as per their new policy, for details please read How to File Complaints with the FTC and Other Regulators.

    Of course we will update with the results of disputes at the Liars and Cheats EXPOSED blog:

    FTC complaint about Experian refusal to investigate factual credit disputes

    I’d like to hear from others who received this bizarre Experian decline to investigate and you can post comments at Liars and Cheats EXPOSED.

  • Experian REFUSING to correct rehabbed student loan and incomplete and false Afni collection reporting

    Here we go again, another student loan Experian reporting problem and insane investigation results along with SYSTEMIC false and incomplete Afni collection reporting and strange Experian legal advice.  My email to attorney Chang (Jones Day, counsel for Experian in my case against it) is posted below.

    1) Experian’s refusal to report the rehabbed student loan as “paid as agreed” and refusal to update the 2/07 balance.

    This student loan was rehabbed and it is correctly reported as paid as agreed by Trans Union.

    My client disputed with Experian:

    3) The Dept. of Education loan was rehabbed and must be reported as paid as agreed with the current balance.

    The 8/24/09 Experian investigation results:

    8-24-09-us-debt-investigation-results

    I sure do NOT see any updated information:

    dept-of-ed-8-24-09-experian-results

    The account is reported as derogatory:

    Status: Claim filed with government/Never late.  

    Account history: Claim filed with government as of Feb 2007.

    Creditor’s statement: “Student loan permanently assigned to government.

    Don’t assume that it is a positive account because it’s reported as “never late.”   This is how they TRICK people into NOT disputing extremely derogatory data. 

    In fact, this student loan is as derogatory as any charge-off.

    HINT:  The Experian direct report lists derogatory accounts in the  beginning and derogs are only reported for 7 years.  

    This account is scheduled to continue on record until November 2013.

    Apparently the account became permanently delinquent in 2006.  If it was a positive account, it would be reported for 10 years from payment in full.

    Please note that the account was LAST REPORTED to Experian in 2/2007 with the $15,500 balance.  My client has been PAYING the account and it is CORRECTLY reported  by Trans Union, although the reporting also has not been updated since 1/2008.

    From the TU myFICO report in 7/09:

    7-21-09-dept-ed-tu-correct-reporting

    Note the LOWER BALANCE and that there are NO derogatory remarks. 

    However, the government should obviously update the balance every month.  So many people start paying their defaulted student loans because they are promised that the loans will be reported as POSITIVE accounts after 12 timely payments.   As so often, the government breaks its promises.

    2) Experian’s odd investigation results, refusal to delete collections that were NOT validated and SYSTEMIC false and incomplete reporting of collections.


    My client also disputed the Afni collection.            

    2) Please delete these disputed collections: AFNI, Kenneth Eisen & Assoc and National Credit Adjuster. AFNI and National Credit failed to provide any documentation for the accounts after my disputes.

    The 8/24/09 Experian results state that the account was “reviewed” and the Afni reporting states: “This item was verified and updated on Aug. 2009.”

    afni-reviewed-8-24-09-experian-results

    8-24-09-afni-reporting-experian-results

    Most important: Experian does NOT report the DATE of the DEFAULT to creditors.

    It also reports MANY collections incorrectly as installment loans such as this Afni collection, reports OBVIOUSLY FALSE status dates and it  allows collectors like AFNI to report FALSE information about DISPUTED and usually undocumented collections. 

    Afni has been sued by the MN AG and even featured in a TV news report as a collector notorious for collecting bogus  accounts.

    Since the credit bureau profits INCREASE as they report false and misleading derogatory information, they condone the Afni reporting.

    The Experian employees commit perjury with impunity and claim that Experian implemented procedures to ensure that credit reports are as accurate as possible.  The Experian INVESTIGATION RESULTS prove that Experian in fact takes many measures to deliberately DESTROY consumers’ credit rating, to confuse and deceive consumers with strange statements and it even gives the bizarre legal advice claiming that the INCORRECT reporting complies with the FCRA!

    NOBODY should have to pay me to TRY to explain the absurd credit bureau investigation results.

    Please see my published FTC / state AG complaints at http://credit-reporting-collection-ftc-complaints.info/  Unless Experian changes its SYSTEMIC bizarre credit reporting practices, the Experian collection reporting will become another published regulatory complaint. 

    My email with many questions to attorney Chang:

    (more…)

  • My published complaint to the FTC about the Experian lates after charge-off or collection

    My DRAFT complaint to the FTC is posted at http://liarsandcheats.info/credit-bureau-experian-and-devry-reporting-false-late-payments-refusal-to-delete/

    I have not received a response from Experian or DeVry and I’ll snail mail everything next week to the FTC. That DeVry would DELIBERATELY destroy their former students’ credit and lives is beyond belief.   Obviously, that’s a school to be avoided at any cost.

    Very important, I also addressed Experian’s refusal to disclose when derogatory accounts will be deleted and the possibly re-aging of collections and charge-offs.

  • Experian’s LACK of reasonable procedures: lates after chargeoff

    TYPICAL Experian OBVIOUS incorrect reporting includes late payments AFTER an account was charged off.

    The Trans Union FICO score WITH this account (including an incorrect balance), 5 public records and 2 collections is 689.

    As POSITIVE TU score factor Fair Isaac lists:

    You’ve recently been paying your bills on time.

    Your most recent late payment happened 6 Years ago

    The time since the most recent late payment is CRITICAL for FICO scores and obviously the scores will be LOWER when it’s been 3 years instead of 6 years since the last delinquency.

    We can’t get the Experian FICO scores anymore (unless your mortgage lender gives you the report), but since this is the only derogatory tradeline, the Experian FICO score is at least 20 points lower than it SHOULD be.

    As always, IGNORE the totally fraudulent Experian snake oil score which is often 100 points higher or lower than the FICO scores used by creditors. In this case, the 588 “Plus” score is artificially low.

    Very FEW people would notice these BIZARRE late payments AFTER the charge-off:

    Most credit repair people will NOT notice the crucial INCORRECT data and will NOT properly dispute it.

    They write some idiotic dispute about not remembering the account or the “right” to verification under the FCRA and the creditor obviously VERIFIES because it IS the consumer’s account.

    Sure, the account could be deleted, as the credit bureaus will when a creditor doesn’t respond to the dispute on time. But the chances of deletion are identical when you dispute factually:

    “Please delete all late payments after the account was charged off.”

    If they verify and especially if it’s the most recent late payment (as in this case), you might want to sue.

    If they verify after you submitted your FRIVOLOUS or FALSE dispute, you branded yourself as a lying moron and of course you can NOT expect correction of something you didn’t dispute.

    Of course, nobody should have to dispute such OBVIOUS incorrect data.

    I’m not aware of ANY procedures by Experian or any CRA to ensure maximum accuracy of credit data.

    Any first year programmer can write a routine that automatically flags late payments after the account was charged off.

    It’s child’s play.

    Instead, the CRAs strive to report INCORRECT and INCOMPLETE FICO score lowering data.

    Incorrect credit reporting PAYS!

    The worse the credit, the greater the CRAs’ profits from sales to consumers who try to improve their credit and to creditors who turn consumers down and/or look for the profitable SUBPRIME customer.

    If the incorrect credit reporting leads to additional defaults, the CRAs make even MORE money from credit report sales to collectors.

    The credit bureaus have NO incentive to provide COMPLETE and ACCURATE credit reports.

  • The extremely important Experian STATUS and DELETION dates

    (click on image for full size)

    When was this account charged off?

    How does a CREDITOR know how to rate this account?

    How does Experian determine when the account is to be deleted?

    How do FICO scores rate the account?

    Since Fair Isaac does NOT provide the DETAILS for the scores such as how many months ago an account was delinquent, I cannot prove how the account is rated.

    Experian should be ORDERED to provide the dates of the charge-off to creditors and the date of first permanent delinquency to creditors.  I’ve SUED Experian over this and the deposition is at CreditCourt.  That’s the case I had to dismiss because they filed my totally unredacted credit reports on PACER for ANYONE to download.

    To all you credit experts:

    Can you tell me when this account was charged off or when the account first became permanent delinquent?

    Can you tell me whether the scheduled deletion date is CORRECT?

    I’ll try to post how Fair Isaac reports the account soon.

  • Credit bureaus and Sallie Mae REFUSE to correct student loan high credit reporting

    Every month the balances on deferred student loans increase as the deferred interest is added, but the “high credit”, “original balance”, “highest amount owed” or whatever label is on the credit reports is NOT increased. 

    Obviously, it’s NOT good for credit scores to have installment loan balances higher than the original loan amounts and FICO scoring software does NOT exclude from the installment balance/limit ratio the student loans with the notation indicating that the loan is in deferment. 

    When consumers dispute, the credit bureaus update with the new increased balance, but they do NOT update the “high credit”, the most owed. 

    The Experian negative score factor:

    The remaining balance on your non-mortgage installment loans is too high.

    FICO scoring software determines that you are a poor credit risk because you’re owing more on your non-mortgage installment loans than when you got the loans.

    Current balance / high credit = percentage of amount still owed.

    In this case:

    $8,779 / $6,000 = 146%

    Several clients disputed TWICE and TWICE all three credit bureaus FAILED TO CORRECT!

    The first dispute of the Sallie Mae student loans to Equifax:

    2) Sallie Mae [account # redacted] and [account # redacted] – Please correct the High Credit. It can not possibly be LOWER than the current balance.

    Equifax VERIFIED with the incorrect reporting.

    The 8/18/08 2nd dispute :

    2) You VERIFIED the OBVIOUSLY incorrect reporting of the Sallie Mae student loans with the High Credit LOWER than the current Balance.  Please advise Sallie Mae to correct the reporting and to ensure that ALL student loans are reported correctly as FICO scores are lowered by this practice. 

    The 9/9/08 Equifax investigation results:

    HUH?

    (Click on picture for larger view) 

    These two Equifax screenshots are from the SAME investigation results. 

    This is a TYPICAL example of communications with credit bureaus.

    When a client disputed with Sallie Mae directly, it responded that it was reporting accurately and it failed to correct the credit reporting.