Credit Reporting Agencies: Errors, Impacts and Problems

If this can happen to a well known reporter on NPR then it can happen to you!

Terry Gross and her husband recently had a tusssle with credit rating agencies when they assigned credit problems inadvertently to her husband. They had to hire an attorney to help straighten out the mess with the rating agencies.

Terry discusses the impact of credit agencies on our lives with Prof. Elizabeth Warren, a specialist in bankruptcy and contract law at Harvard Law School. It is a very informative discussion.

http://www.npr.org/templates/story/story.php?storyId=92049490

Protecting the Elderly from Telemarketing Scams

The Elderly are frequent targets of fraud. Here is a very scary article from the New York Times. I recommend sending or reading this article to all your elderly relatives.

I also suggest you check the credit of all your elderly relatives if they will let you help them. See the blog article regarding Identity Theft.

I would also place all my elderly relatives on the Do Not Call List which should eliminate most solicitation calls. Telemarketing calls are a way many scammers bilk the elderly.

Since mail can easily be stolen, a secured (locking) mailbox is a great idea. I would also register all of my elderly relatives on the no credit card solicitation list. This list is legitamite and is endorsed by the Federal Trade Commission.

In fact, it would be smart to implement many of these ideas for yourself. A little time now could save you from becoming an identity theft victim

HOW TO PROTECT YOURSELF FROM IDENTITY THEFT

Identity theft has become a very common crime. Law enforcement agencies are reporting that identity theft criminals have become increasingly organized and sophisticated. Simply stated, a thief or organized group of thieves acquire your personal information and use it to access your accounts or set up new ones in your name.

Much of this information is readily available in the public domain. Other information may be simply stolen from an unsecure mailbox, or obtained through fraudulent means such as “phishing” on the internet. Phishers attempt to fraudulently acquire sensitive information, such as usernames, passwords and credit cards details, by masquerading as a trustworthy entity in an electronic communication. eBay and PayPal are two of the most targeted companies, and online banks are also a common targets. Phishing is typically carried out using email or an instant message, and often directs users to give details at a website, although phone contact has been used as well. Once a person logs in to the phony site, the log-in information is captured and used by the thieves to access the real account on the real site.

Still other thefts involve tricking computer users to unwittingly download viruses or spyware by pretending to offer (ironically enough) free software that will improve their computer’s security. Once installed, these programs secretly transmit data (such as usernames and passwords) to the thieves, who are often overseas. These are just a few examples of how identify theft can take place, but approaches are always evolving so it pays to be skeptical and vigilant before providing any information to an unknown source, whether by phone, internet or in person.

The ease and speed with which identify theft can be accomplished, the losses that result, and the complexity and time required to stop the activity, are costly and nerve-wracking. Actual losses are seldom recoverable; furthermore, they are greatly exacerbated by the huge ongoing stress and hassle.

What should you do?
At a minimum, please consider the following that have been recommended by the U.S. Postal Inspection Service:

• Secure your mail by either obtaining and installing a secure mailbox (if you do not currently have a slot in your door or garage door) or re-routing your mail to a P.O. Box.
  
• Use a paper shredder to shred all personal documents before throwing them away, including the pre-approved junk mail you receive.
  
• Remove yourself from marketing lists by contacting the Mail Preference Section, Direct Marketing Association, P.O. Box 9008, Farmingdale, N.Y. 11735, (212) 768-7277, (www.dmaconsumers.org/offmailinglist.html).
  
• Regularly check your credit report at one of the three major credit agencies:
  1. TransUnion, 800-888-4213 (www.tuc.com); or
  2. Experian, 888-EXPERIAN (www.experian.com); or
  3. Equifax, 800-685-1111 (www.equifax.com).
  
• Use extreme caution about providing personal information when using the Internet. Do not download unknown programs or respond to unsolicited email notices. Links provided in email notices can be made to appear legitimate, such that the web address that is displayed in the link is not the one to which the link is connected. Scammers have been known to create elaborate duplicates of legitimate sites just for the purpose of collecting account information. If you aren’t sure about an emailed account notice, just ignore the link in the email and go directly to site on your own.

I am not suggesting that you become obsessive or paranoid, but a few relatively simple steps will go a long way towards protecting yourself. For further information, check out the U. S. Postal Inspection Service brochure and website.

Brochure (www.usps.com/cpim/ftp/pubs/pub280.pdf )
Website (www.usps.com/postalinspectors/)

The Financial Pragmatist

Libby Mihalka