CFPB Orders TransUnion and Equifax to Pay for Deceiving Consumers in Marketing Credit Scores

The Consumer Financial Protection Bureau today announced it has taken action against Equifax and TransUnion for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers. The companies also lured consumers into costly recurring payments for credit-related products with false promises. The CFPB said that from 2011 to March 2014, TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores lenders typically use to make credit decisions. In fact, the scores were not typically used by lenders. Plus, TransUnion and Equifax falsely claimed that their credit...

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Credit Reporting by Mortgage Companies After Short Sales

Credit Reporting by Mortgage Companies After Short Sales In recent years, thousands of California homeowners sold their homes in short sales. In a short sale, the borrower sells the home to a third party for an amount that falls short of the outstanding loan balance. An open question has been whether the bank or mortgage company may collect the balance of the account from the borrower (absent an agreement to waive the balance). On January 21, 2016, the California Supreme Court held that no deficiency results after a short sale of an owner occupied property of four units or less....

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Specialized Credit Reports You Don’t Know About

Specialized Credit Reports You Don’t Know About Credit.com has a report on some relatively unknown credit reports. For example, Equifax has a report it calls “work number” that provides employment and income verification data obtained from private companies. Fannie Mae said mortgage companies could use this report in lieu of pay stubs effective mid-2016. Landlords often look at applicants’ credit reports before deciding whether to rent an apartment or other living space. There are many such credit reports that include former addresses, eviction history and the like. Cable companies and utilities have an “exchange” with information on customers’ history of...

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Getting and Keeping a Good Credit Score Depends on Your Credit Reports

Getting and Keeping a Good Credit Score Depends on Your Credit Reports Your credit scores depend on what is in your credit reports. Your credit reports have information on how you have used credit, how much credit you have available, how much credit you are using, whether you made payments when due, and whether any creditor has sent an account to a debt collector. Credit scores are numbers that designed to predict how likely you are to pay back a loan. The most basic and important actions you can take to get and keep a good credit score are as...

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Better Alternatives to Buying Credit Monitoring

Better Alternatives to Buying Credit Monitoring The credit agencies are eager to sell you credit monitoring at about $20/month. Here are reasons not to buy it. It doesn’t prevent ID theft, it only tells you after the theft has been committed – the proverbial shutting the barn door after the horse has run away. If you are really threatened with identity theft, you can put a security freeze on your credit files that actually prevents the ID theft by locking out access from the credit reports. Credit monitoring is not a good value proposition. You can check your credit report...

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