Posts Tagged ‘Credit Repair’

FICO Reveals How Common Credit Mistakes Affect Scores

Monday, November 30th, 2009

by Jeremy M. Simon
Sunday, November 29, 2009

Disclosed for the 1st time, ‘damage points’ taken off for late payments

Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.

Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.

The “damage points” data, unveiled recently by FICO, are part of the most revealing glimpse into the firm’s once-secret — and still mysterious — credit scoring model. The new information discloses how many points borrowers’ scores will drop when they make the most-common mistakes.

‘Help People Understand’ Scores

“I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble,” says FICO spokesman Craig Watts. “Getting and maintaining a good score isn’t complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. ”

The greater transparency about FICO scores is important because American consumers’ ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit. Other companies also offer scores, but FICO’s version is the most widely used by lenders in determining whether a consumer can borrow, and at what rate.

FICO’s credit score has been around for decades, but only within the past decade have consumers gradually gained access to theirs. Though the raw numbers can be purchased, how they’re figured remains a FICO secret, as closely guarded as the formula for Coca-Cola. Until Thursday, FICO revealed only broad categories of factors influencing the score, but not the number of points at stake for consumers who fail to pay as agreed. The “damage points” information, revealed in a report by personal finance writer Liz Pulliam Weston, will be made available through its myFICO.com Web site starting this weekend.

FICO’s information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).

Those with good or excellent credit — so-called prime borrowers — put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score — 780 — that same delinquency can send a FICO score tumbling by 90 to 100 points.

The Cost in Dollars

In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with members of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card. While all the industry insiders stressed that a FICO score isn’t the only factor in determining who gets credit and at what cost (other factors they cited include the borrower’s debt-to-income ratio and whether they have already established a relationship with the lender), they were able to provide an idea of what a borrower who had the following credit scores could expect.

For a Consumer Who Started With a FICO Score of 780:

Following a 30-day late payment, the consumer’s car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.

Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a Consumer Who Started With a FICO Score of 680:

Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.

Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.

Following a debt settlement, the consumer would no longer qualify for a credit card.

Some Surprised By the Details

Consumer advocates say it’s important for borrowers to know what can damage their FICO scores. “If they know it in advance, they won’t go out and step in a pile of doo-doo. They won’t go out and do some of these things,” says Linda Sherry, director of national priorities with advocacy group Consumer Action. Even experts found some surprises in today’s news. “FICO imposes bigger hits than I would have thought for being maxed out or 30-days late just once, reinforcing my view that it is a cruder, blunter instrument than they like to claim. Nevertheless, it is a powerful, widely used crude blunt instrument,” says Ed Mierzwinski, consumer program director for the U.S. PIRG consumer advocacy group.

Of course, knowing the impact on a FICO score and actually avoiding these mistakes are two separate things: Amid rising unemployment and other daily financial struggles, paying bills and staying on-track financially becomes a much bigger challenge for many borrowers.

“Some of these things are out of their control,” Sherry says of consumers.

Additionally, as Weston points out, consumers with identical FICO scores can have different credit histories. That means the same slip-up — such as maxing out a credit card — could have different impacts on consumers who have the same FICO score. In the examples they provided, FICO assumed each borrower had several active major credit cards, a mortgage, car loan and student loans.

Sherry acknowledges the benefit of putting a number to a financial blunder. “I don’t think we necessarily knew the numbers that a bankruptcy could apply to a credit score,” Sherry says.

Helping You Make Better Decisions

While knowing the numbers may not keep you filing for bankruptcy if given no other choice, the information may help you make the best decision when faced with a bad situation.

FICO scores — and the access to credit they provide — are a valuable asset to consumers and supply a safety net when incomes are stretched. It’s an asset that needs to be protected, Sherry says, even if job loss or catastrophic illness makes bill paying problematic.

“In that period of time, paying down debt is the last thing on your mind. Paying the minimum payment may also be the last thing on your mind, but you’ll be doing yourself a big favor if you do,” Sherry says.

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Credit: Know Your Limits

Thursday, November 5th, 2009

by Jessica Dickler
Monday, September 29, 2008

You may not spend much time mulling your debt-to-credit ratio, but it weighs heavily on your credit score and can determine your ability to get a loan
Consumers know all too well that going over their credit limit can mean a nasty fee, a higher interest rate and maybe even a lower credit score.

But few people are aware that merely approaching their limit can have costly consequences as well.

That’s because your debt-to-limit ratio, or “debt utilization,” is a key component of your credit score. Your debt-to-limit ratio is calculated by dividing what you’ve spent by your total credit limit.

If you have a $5,000 limit and you’ve charged $4,000 this month, your debt-to-limit ratio is 80%, which is enough to signal to lenders that you are a high risk borrower.

As a result, lenders may increase your annual percentage rate (APR) or deny you a loan - even if you pay off your credit card balance every month and have never exceeded your limit.

About 14% of Americans use at least 50% of their available credit, according to Experian’s 2007 national score index study. But, experts recommend keeping your debt-to-limit ratio under 30%, or even under 10% if possible.

That means if your limit is $5,000, then you should aim to charge less than $500 a month.

The lower your debt-to-limit ratio, the better your credit score will be. And to that end, there are two basic ways to improve your debt utilization: raise your credit limit or lower your debt.

Raise Your Limit, Lower Your Debt

Your credit card limit is listed on your monthly bill, but it can change from one billing cycle to the next. That’s because credit card issuers can raise or lower your limit as they see fit.

But even though credit card issuers generally dictate what your limit is, consumers do have a say. You can call and request that your limit be raised, as the more available credit you have, the better your debt-to-credit ratio will be.

“If you have a good credit history your credit card issuer will up your limit, but if your history isn’t great then they can say ‘No,’ which isn’t necessarily a bad thing,” according to Bill Hardekopf, CEO of LowCards.com.

“Getting turned down for a higher credit limit may be a blessing in disguise,” Hardekopf said. Chances are it’s a signal that you should reduce your spending or pay down your credit card balances instead.

When paying down debt, it’s important to consider that your debt utilization is calculated per card and cumulatively. That means that leaving one card nearly maxed out will negate all the hard work you’ve done paying down the balances on other cards.

And a higher limit isn’t always better. “If you are a spender and the temptation is there to spend more than what you can really afford, [then a higher credit card limit] can send you into the debt spiral,” Hardekopf said.

It’s also possible that potential lenders will view a sky-high credit limit as potential debt, which can count against you if you are trying to get a mortgage or a car loan.

Ultimately, “it boils down to how you handle debt. If you handle debt responsibly, then go for a higher limit,” said Greg McBride, senior financial analyst at Bankrate.com. But, consider whether “that higher credit limit is going to represent temptation to run up additional debt.”

Ideally, you want to illustrate that you can keep your spending under control, and that means “your focus should be on paying down debt, not racking up more,” McBride said.
Pitfalls to Avoid

Signing up for new cards to boost your total available credit and make your debt utilization appear lower can work against you, experts say. In fact, opening new accounts can even lower your credit score.

“Recent credit inquiries constitute 10% of your score,” McBride said. And each new inquiry means potential points subtracted from your total.

Additionally, closing unused cards is also a bad idea.

“When you close an account the amount of ‘overall’ available credit decreases, which could cause an increase in your [debt] utilization and inadvertently lower your score,” said Deanna Templeton, director of consumer education for Credit.com.

Templeton also recommends using old credit cards periodically, just to prevent your issuer from closing them because of inactivity. “Every so often charge something small like gas or dinner, and then pay it off when you get the bill,” she said.

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Credit Card Mistakes - Grade Yours on a 10-Point Scale

Thursday, October 29th, 2009

by Erin Peterson
Wednesday, October 21, 2009

Grade yours on a 10-point scale

Nobody’s perfect. When it comes to our financial lives, we’ve all done things we later regretted — whether it’s getting slapped with a $3 fee for using an out-of-network ATM or going on a Las Vegas bender and losing the house on an overly aggressive poker bet.

The key is to understand the scale of the transgression. With credit card blunders, that’s no easy task — is it worse to take a cash advance or to pay a bill a day or two late? Experts graded a range of credit card mistakes on a scale from 1 (losing a few bucks to a cash machine) to 10 (losing the house). Find out which worry the pros most — and which may (almost) get a free pass.

Paying Late
How bad is it? 6
The details: Credit card companies are notoriously prickly about late payments — even a payment that’s late by a few minutes can pile up fees, interest charges and other penalties. Depending on how late the payment is, your card issuer may also report the problem to any of the credit bureaus, which can wreak havoc on your credit score. The good news, says Stacy Francis, president of Francis Financial, is that the error may be reversible. “You do have the option of giving the credit card company a call and asking them not to report it,” she says. “If you’ve generally been an on-time payer, they may waive the fees and not report it.”

Paying Only the Minimum on Your Card
How bad is it? 4
The details: Credit card companies love it when you pay off your debt slowly, but you should loathe it. It won’t necessarily affect your credit score, but that doesn’t mean it’s a good practice. Sending in only the minimum payment “is definitely going to keep you in debt longer, and you’re going to pay a heck of a lot more in interest,” says Francis. “You may be paying twice as much — or more — as you would by paying in cash.”

Buying On a Card Just For Rewards
How bad is it? 1
The details: If you’re paying off your balance on time and in full, using your cards to grab extra rewards isn’t necessarily a bad plan, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “You can win the rewards card game if you know how to play,” she says. “But you do have to know yourself.” Because most people spend more when they’re paying with plastic than with cash, be cautious and recognize when you’re buying something only because plastic makes the purchase painless.

Missing a Payment
How bad is it? 9
The details: Not only are you going to be slammed with fees, interest charges and other penalties when you miss a payment, but you’ll likely see a rise in your interest rates. If that weren’t bad enough, you’ll also have to contend with a significant hit to your credit report — about 35 percent of your credit score is based on your ability to pay bills on time. As a result, you’ll pay more when you try to get a loan. “Missing a payment has both immediate and long-term consequences,” says Clarky Davis, Care One Debt Relief’s Debt Diva. “You may be dealing with the fallout for years.”

Having Too Many Cards
How bad is it? 6
The details: If you’re the type to apply for a card just so you can grab a discount on clothes or other merchandise, you likely have a huge stack of cards in your purse or wallet. You’re probably not getting enough value from the card to make it worth the high interest rates or additional complications from additional bills and junk cluttering your mailbox — and you’re increasing the likelihood that a payment slips through the cracks or that you’ll be a victim of identity theft. “There’s rarely a good reason to get a new card if you’ve already got a general-purpose card, a rewards card and a low interest card,” says Cunningham.

Maxing Out a Card
How bad is it? 7
The details: Maxing out a card can have a serious impact on your credit score, since about 30 percent of your score is based on “credit utilization” — the amount of credit you’ve used relative to the amount you have available. More important, says Davis, is the fact that it likely signifies a distressing trend in your personal finances. “Maxing out a card may not have an immediate financial pull, but it’s a sign that you’re not budgeting or spending your money wisely,” she says. “It means you don’t have enough saved up to cover unexpected expenses.”

Playing the Balance Transfer Game
How bad is it? 5
The details: Moving your debt from a high-interest card to a low-interest card with a balance transfer isn’t as smart a move as you think, says Francis. “About 15 percent of your credit score is affected by your recent credit applications,” she notes. Pile up a few transfers and your score will take a hit. “Credit bureaus don’t (differentiate) that these cards are for the same [debt], they just see it as you getting pre-approved for more and more credit.” Add in the fees that generally accompany balance transfers and you’re not gaming the system — you’re getting hammered by it.

Debt Settlement Plans
How bad is it? 9.5
The details: If you’re overwhelmed by debt, negotiating down your balance with the credit card company (also called debt settlement) sometimes helps you pay pennies on the dollar on your debt — but you’ll pay a steep price. First, there’s the tax hit you’ll take for the amount of debt that’s forgiven — it will count as income during that tax year. And your credit score will be decimated, so don’t expect you’ll be able to take out a loan soon after consolidation. Next to bankruptcy, debt settlement “is the most negative thing you can do to your credit score,” says Francis.

Getting a Cash Advance?
How bad is it? 8
The details: It may feel like free money, but the truth is that it’s anything but: You’ll likely have a fee associated with the advance, and you’ll likely pay a higher interest rate than you would by using the card associated with it. “You also have no grace period,” notes Cunningham. “You’ll start accruing interest from the moment you get the money.” While these are all dangerous attributes in and of themselves, they’re not the worst part, says Cunningham. “When you start using cash advances, you have to understand why you’re using them as they’re likely symptomatic of a deep financial problem.”

Using a Card in a Pinch
How bad is it? 2
The details: If the fridge went on the fritz or the furnace conked out in mid-January, you might not have the means to fund its immediate replacement. Putting the bill on a credit card — and paying it off quickly over the course of a few months — is a pretty solid option, says Cunningham. “You don’t want something like that to become standard operating procedure,” says Cunningham. “But it’s OK to have a balance on a card for a few months when you’re going through a rough patch in your financial life. Just make sure it’s on a card without an annual fee or with a very low annual fee.”

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Poor credit auto loans

Friday, October 16th, 2009

When you fall into the problem of a poor credit score, you’ll find that loans become very difficult to obtain. Creditors who are willing to lend money to you often impose inflated interest rates and/or difficult-to-meet terms and conditions. The worst disappointments come when applying for poor credit auto loans.

The good news is that you can get around this problem either by providing some collateral with your loan application, or by finding a person whose credit score is high and agrees to be your co-signee for the loan.

A word of advice – use your credit carefully after you avail of poor credit auto loans this way. If you pay on time you’ll be able to use this same loan to improve your credit score; if not, you will lose not only your newly bought auto, but your credit score will also plummet.

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Trade Lines Exposed

Tuesday, January 27th, 2009

An iteresting article posted by the FTC discussing the boderline legality of Trade Lines. Trade Lines are often offered by supect credit Repair agencies. The legalities of this practice is still under debate and may well be outlawed in the near future.

A seasoned trade line is a line of credit that the borrower has held open in good standing for a long period of time, typically at least 2 years. A controversial practice involving seasoned trade lines, sometimes called piggybacking, uses a creditworthy borrower’s accounts to improve the credit rating of an unrelated third party.

The creditworthy borrower adds the third party as an authorized user of his lines of credit, but does not actually provide the third party with materials (credit cards, account numbers, etc.) that would permit the third party to make charges against that account. The benefit to the third party is an improvement in their personal credit rating they now appear to have a long and favorable credit history, and their credit score increases. This makes the third party look like a better credit risk, and improves the third party’s access to new credit. If the third party is dealing with a lender who uses risk-based pricing, then their artificially inflated credit score may translate into a substantially lower interest rate.

The third party pays money in exchange for this service, typically between $500 and $2000, depending on the age and quality of the trade lines. The creditworthy borrower gets a portion of this, typically between $100 and $150, while the broker who sets up the deal keeps the rest.

The risk to the “donor” is that the other person might actually make charges against the account, and not pay it back. The brokers who provide this service claim that they do not reveal the entire account number to the recipient, or do not themselves have access to the account number. It is possible a recipient might learn the account number in some other way, for example if it appears on his own credit report. However, this is often insufficient information to make use of the account - a PIN, expiration date, or security code is typically also required. These measures further lower the risk to the “donor”.

Legality
FTC spokesman Frank Dorman said: “What I’ve gathered from attorneys here is that it is legal , however, the agency is not saying that it is legal technically.”[1] Other law enforcement agencies, like the Florida Attorney General’s Office, are reviewing whether such activities are legal.[2]

If a contract requires the borrower to disclose pertinent facts relating to his ability to pay back a loan, and the borrower does not do so, then this practice may constitute fraud.[citation needed]

With FICO 08 on the horizon many brokers who used to add “authorized users” to existing credit card accounts have switched to brokering “Seasoned Primary” accounts. A “primary” account is an account in the borrower’s own name. This practice is not yet tested in the courts as the lender now has no way of telling your real credit from that of the former owner who had “seasoned the account”. With an authorized user account the credit report clearly marks the account as authorized user, this new practice however the lender is not alerted to the true status of the account history. One case has been filed in Federal Court Case CV-08-0694 John Bronson Vs. TradeLine Solutions, Inc. TradeLineSolutions.com, Ted Stearns, April Richards and others.

American Lives Destroyed “The Credit Bureau Nightmare and How to wakeup from it” Written by Martin Pelmore touches on the subject of Trade lines and the whole Credit repair industry.

Industry effects
Fair Isaac, the creator of the widely used FICO score, announced in 2007 that they would no longer consider accounts on which the borrower is an authorized user. These changes would take effect in September 2007.[3] However, as of February 2008 this change had not yet been rolled out and Authorized user accounts still affected credit scores.[citation needed]

Implementation of this change would stop the practice of piggybacking. It would also decrease the credit scores of borrowers such as children or spouses that are legitimate authorized users of another person’s credit lines. Because of the Fair Credit Reporting Act and privacy laws, there is no way for a lender to be able to tell who the other party of an authorized account is, and thus no way to distinguish legitimate use from fraud.[citation needed]

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Mortage loan victims get money back

Monday, January 26th, 2009

FTC Launches Redress Program for Mortgage Loan Victims

Almost $28 Million Returned to 86,000 Consumers Harmed by Mortgage Servicing Practices

The Federal Trade Commission today announced that the agency returned almost $28 million to consumers this week as a result of a settlement with The Bear Stearns Companies, LLC and EMC Mortgage Corporation. Using the defendants’ records, about 86,000 consumers who had mortgage loans serviced by EMC have been mailed redress checks.

In September 2008, Bear Stearns and EMC agreed to pay $28 million to settle FTC charges that they engaged in unlawful practices in servicing consumers’ home mortgage loans. The companies allegedly misrepresented the amounts borrowers owed, charged unauthorized fees, such as late fees, property inspection fees, and loan modification fees, and engaged in unlawful and abusive collection practices. Consumers who have been mailed redress checks paid unauthorized fees to EMC and/or had a home foreclosed upon by EMC.

Consumers with questions should call: 1-877-225-7510.

source: ftc.gov

This is great news. We love to hear these criminals get punished and victims reimbursed.

If you need help understanding your credit scores visit us at: www.creditbureauexperts.com

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Credit Fraud and Identity Theft

Thursday, January 22nd, 2009

How identity theft can ruin your credit history

Identity theft and other forms of credit fraud can be psychologically devastating in addition to the obvious economic struggles.  With the advancement of technology and the continuous automation of our economy, it’s become increasingly easier for thieves to steal your money, or worse, your identity.  The term “identity theft” usually refers to a criminal impersonating you through a variety of con tricks.  For example, they may go through your garbage and find receipts that have your social security number, credit card information, and other personal information.  They then use this information to access your bank account or open loans in your name.   The identity thief will usually forward your mail & email to a different address and possibly change your phone number so that any warning signs to their activity is diverted.  The thief takes the loan and runs, while leaving the bank trying to collect money for long periods of time.  They’ll be sending notices that you owe X amount of money and if you don’t pay, you’ll be sent to a credit collection service.  However, since the criminal changed the contact information, you aren’t receiving these notices!  This all leads to your credit history being wiped out and a significant lowering of your credit score.

Don’t Distress - there is hope after credit fraud!

Credit repair is absolutely possible  after being attacked with credit fraud.   In fact, it’s one of the easier problems to fix.  Thankfully, the U.S. government has finally caught on that this is a serious problem.  There have been recent laws that make it easier to get back on your feet.  For a free consultation on how we can help you, call us at 1-866-371-3536.  We guarantee our results: If you do not see positive improvements for any month, that month is free.

Unfortunately there is little you can do to prevent being a target of credit fraud

The fact is, in today’s society, there are too many ways for someone to get your personal information:

  • by trash cans and dumpsters
  • by sales clerks and waiters when you use a credit card
  • from your mailbox in the form of tax receipts, bank account statements and other bills
  • from your employer’s files - difficult
  • from your hospital records - very difficult
  • from your various financial files
  • from your landlord’s files
  • online stores, anywhere on the internet you put personal information is a possible breach of security
  • stolen from a merchant database through computer hacking (This is not as simple as other forms of theft.)
  • stolen through hacking into commercial Web sites or your personal computer
  • found through public records
  • through “phishing” scams, people sending fake emails or websites like: Find out your horoscope! simply enter in your birthday, your name, address, etc.

A few scary examples:

FTC Says Mortgage Broker Broke Data Security Laws: Dumpster Wrong Place for Consumers’ Personal Information

The Federal Trade Commission has charged a mortgage broker with discarding consumers’ tax returns, credit reports, and other sensitive personal and financial information in an unsecured dumpster, in violation of federal law.

According to the FTC, in December 2006, approximately 40 boxes containing consumer records were found in a publicly-accessible dumpster. The records included tax returns, mortgage applications, bank statements, photocopies of credit cards and drivers’ licenses, and at least 230 credit reports. The FTC alleges that the defendant, who has owned numerous companies that handle sensitive consumer information, kept the documents in an insecure manner in his garage before improperly disposing of them.

As charged in the FTC’s complaint, the defendant has failed to implement and monitor policies and procedures requiring secure disposal of credit reports; ensure that employees or third parties assigned to transport such documents for disposal are qualified to do so and have received appropriate guidance or training; alert employees or third parties to such documents’ sensitive nature or instruct them to take precautions; and oversee the transport of such documents for disposal, or otherwise confirm that the documents are disposed of in a way that ensures that they cannot practicably be read or reconstructed.

NEW YORK (CNN) - The Secret Service and the FBI confirmed Wednesday they have been involved for the past two weeks in trying to track down the computer hacker who breached the security system of Data Processors International, which processes credit card transactions on behalf of merchants.

MasterCard, Visa, Discover Financial Services and American Express all have said this week that some of their card accounts had been affected by the breach.

The hacking incident in which intruders accessed millions of credit cards has consumers confused. Many credit card issuers are not doing much and are waiting for consumers to call them…

MasterCard estimated that the hacker may have gotten access to information on as many as 8 million credit card accounts overall, including 2.2 million of its own cards. Visa said 3.4 million of its cards were affected, while Discover said only that a small percentage of its cards were involved. American Express, meanwhile, has not disclosed how many of its card accounts were affected.

Data Processors International, which does business as DPI Merchant Services in Omaha, Neb., and was recently acquired by TransFirst, said in a statement Thursday that “information targeted by the system intruder did not include any personal information that could relate a card number to an individual. … (P)ersonal information including account holder name, address, telephone number and Social Security number were not obtained through the attempted intrusion.”

Both DPI and a federal law enforcement official familiar with the case told CNNfn on Wednesday that so far there has been no reported misuse of the information stolen or evidence that any individual account has been tampered with.

Visa, American Express and Discover said earlier this week that they had not seen any fraudulent use of the stolen account numbers so far, and a MasterCard spokeswoman could not say whether any of its cards had been used fraudulently.

Federal Trade Commission (FTC) Information

This is the homepage for the FTC identity theft division: http://www.ftc.gov/bcp/edu/microsites/idtheft/

If you believe your identity has been stolen, we recommend you immediately contact the FTC and police. Depending on the situation, your case may be elevated to the FBI. Here are the next steps to take, which Credit Bureau Experts can help you with:

1) Place a fraud alert on all your credit reports.

TransUnion: phone 1-800-680-7289
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790
Equifax:phone 1-800-525-6285
P.O. Box 740241, Atlanta, GA 30374-0241
Experian:phone 1-888-EXPERIAN
P.O. Box 9532, Allen, TX 75013

2) Contact and Close all financial accounts you believe have been targeted.

3) Contact the FTC using their online complaint form at https://www.ftccomplaintassistant.gov/ or call the FTC’s Identity Theft Hotline: 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261; or write Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

Finding and prosecuting your attacker may be difficult, but there are strong penalties for these criminals:

Congress declared identity theft a federal crime in 1998 when it passed the Identity Theft and Assumption Deterrence Act. This offense, in most circumstances, carries a maximum term of 15 years imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense.

Identity fraud schemes may also involve violations of other statutes, such as identification fraud, credit card fraud, computer fraud, mail fraud, wire fraud, or financial institution fraud. Each of these federal offenses are felonies that carry substantial penalties -­ in some cases, up to 30 years imprisonment, fines and criminal forfeiture.

Federal prosecutors work with federal investigative agencies such as the Federal Bureau of Investigation, the United States Secret Service and the United States Postal Inspection Service to prosecute identity theft and fraud cases.

According to the Secret Service, its investigations show a jump in potential losses due to identity theft, from $851 million in 1998 to $1.4 billion in 2000. While some of this increase may be due to an increase in investigations of the crime, the most likely reason is the advancement of the Internet and technology in general.

Identity Theft Survey Report Page -2006, from ftc.gov

The Prevalence of ID Theft (Page 4)

A total of 3.7 percent of survey participants indicated that they had discovered they were victims of ID theft in 2005. This result suggests that approximately 8.3 million U.S. adults discovered that they were victims of some form of ID theft in 2005.

In this report, victims of ID theft are classified as belonging to one of three categories based on the most serious problem the victim reported. Each of these categories represents a form of identity theft as it is defined by federal law. The survey confirmed prior data indicating that the magnitude of harm to consumers, as a general matter, correlates with the kind of ID theft suffered by the victim. In order of the magnitude of harm, from least to most, the three categories are: “Existing Credit Card Only,” “Existing Non-Credit Card Account,” and “New Accounts & Other Frauds.”

For the calendar year 2005:

1.4 percent of survey participants, representing 3.2 million American adults, reported that the misuse of their information was limited to the misuse of one or more of their existing credit card accounts in 2005.4 These victims were placed in the “Existing Credit Cards Only” category because they did not report any more serious form of identity theft.

1.5 percent of participants, representing 3.3 million American adults, reported discovering in 2005 the misuse of one or more of their existing accounts other than credit cards—for example, checking or savings accounts or telephone accounts—but not experiencing the most serious form of identity theft. These victims were placed in the “Existing Non-Credit Card Accounts” category.

0.8 percent of survey participants, representing 1.8 million American adults, reported that in 2005 they had discovered that their personal information had been misused to open new accounts or to engage in types of fraud other than the misuse of existing or new financial accounts in the victim’s name. These victims were placed in the “New Accounts & Other Fraud” category, whether or not they also experienced another type of identity theft.

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