Credit Tips: Problem With Credit History

Posted On: December 1, 2005

Author: rick nats
Posted: Wed Jun 30, 2004 9:59 pm
Post subject: Problem With Credit History
7/31/2002 12:40 am CDT

I had cancelled one of my credit cards almost 2 yrs ago. (formerly GTE Visa card, now Verizon Visa card). At that time, there was a balance of about $20. However, they did *not* send me a statement for the remaining balance. I too forgot about it (my bad) and destroyed my card. After more than a year and a half, i got a collection agency letter. Several frantic calls later, I figured out what happened and immediately paid the balance to the collection agency (about $300!). Now, the problem is that they will not cancel my credit card account (the account is supposed to be ‘closed’) nor will they allow me to reopen it. So that a ’serious delinquency’ is there on my credit reports and I am unable to get rid of it. My credit history id screwed up. Even though it was my mistake also, I feel that I am being punished unfairly for it. Is there anything I can do about it?

Author: LB59
Posted: Wed Jun 30, 2004 10:00 pm
Post subject: Problem With Credit History

7/31/2002 4:25 pm CDT

You bet they are. I’ve just had a similar, equaly unbelieveable experience. Today, a dispute i sent them came back as verified, depite a letter from the creditor that the account was never late, and as of this month is paid in full. When I called Experian, they said that the creditor had verified the information. I said what about my letter? They responded it didn’t apply. I called the creditor, who said that they have had no communication with Ex since sending them their update to correct the late pay three weeks ago. EX is LYING. No question. I am at my wits end. I have asked the creditor to call directly and discuss the matter with EX, which they said they would do. But I am skeptical that anything will happen. Unfortuantely, I do not have time to sue, because my refinacning which depends on these deletions won’t go through, and I will go under by then.

Author: Verne
Posted: Wed Jun 30, 2004 10:00 pm
Post subject: Problem With Credit History

7/31/2002 9:04 pm CDT
LB59,

Here’s a thought if the false information is only on the experian credit report and you don’t have a lot of time.

If the refinancing loan is close to going through, perhaps the bank doing the refinancing would listen to you and agree to throw out the Experian Report and use the other credit bureaus, TransUnion and Equifax.

I know that banks will do some strange things to approve a loan. They will “gross up” untaxed income by 25% to 40% to get a home equity loan, yet when it suits them, allow a 15% gross up if at all.

I have more respect for the casino industry. At least, in a casino they want the customer to know what the odds are and not feel cheated. In fact, the house doesn’t need to cheat. They know the percentages are in their favor.

Yet with the banking/credit card industry they hide as much as they can from the consumer.

Only in the very fine print will a cardholder discover that payments will be applied to that part of the loan with the lowest interest first.

Only in very fine print do they “notify” you of a change in the agreement and interest rate. Usually in the form of a tiny insert mixed in with the junk mail enclosed in your statement. Wasn’t it in large bold print that the original agreement boasted a low “fixed” interest rate for the life of the loan?

Only in very fine print do they tell you the enclosed “convenience checks” will be treated like cash advances with the higher interest rate and fees. Yet in large print they urge you to transfer high-interest balances using these checks.

Only in fine print do they tell you the interest on the shipping and handling for those “free gifts” will be at a higher interest rate. And then “buried” beneath your balance at that great fixed rate.

Only in very fine print do they tell you they may charge the penalty interest rate if you have any adverse information on your credit report - which they may check monthly.

In even finer print they tell you they reserve the right to change the agreement for “any reason”. Which is why a cardholder with a high FICO score, a perfect payment history and no adverse information on any credit reports may still get hit with a change in terms to a higher interest.

It has nothing to do with the credit score and everything to do with the debt balance to available credit ratio. If they think they have you over a barrel and you can’t move the balance to a lower-interest card, they will jack up the interest rate.

If they think you are trapped they will move in for the kill. If you move your balance and close the account, they beg you to come back. “We would hate to lose you”. “We promise not to mistreat you again”, they plead. “Well, at least, not until the next time we mistreat you”.

Sort of like the cost of plywood as a hurricane approaches or the price of gas right after 9/11. They do whatever they can get away with.

We need real consumer protection and real credit card/banking reform. In what other industry would a prevailing business strategy that seeks to first deceive then trap the customer be allowed? I mean besides the Carinval.