Consumer Corner

February 1, 2010

How to Identify A U.S. Census Worker

A badge, Department of Commerce's Census Bureau canvas bag and confidentiality leaflet are the three items a resident should look for before giving information to anyone who says they work for the U.S. Census. If you still are not certain about their identity, please call the Regional Census Bureau in your area at a telephone number you know to be accurate to confirm they're employed by the Census Bureau.

You should note that Census workers are out now verifying addresses, however the Census Bureau will NEVER, under any circumstances, ask to enter your home. What a U.S. Census worker will ask residents prior to April 1, 2010 is how many people live at your address.

This is IMPORTANT - what they will NEVER ask for is your Social Security Number, Bank Account or Credit Card numbers or for any other personal financial information or numbers.

January 14, 2010

Haitian Earthquake Relief Fraud Alert

The FBI reminds consumers who receive appeals to donate money in the aftermath of Tuesday's earthquake in Haiti to apply a critical eye and do their due diligence before responding to those requests. Past tragedies and natural disasters have prompted individuals with criminal intent to solicit contributions for a charitable organization and/or a good cause.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, including:

• Do not respond to any unsolicited (spam) incoming emails, including clicking links contained within those messages.
• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations visa email or social networking sites.
• Verify the legitimacy of nonprofit organizations by utilizing various internet-based resources that may assist in confirming the group's existence and it's nonprofit status rather than following a link to the site.
• Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for the intended purposes.
• Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.

Anyone who has received an email referencing the above information or anyone who may have been a victim of this or a similar incident should notify the IC3 via www.ic3.gov.

January 4, 2010

Consumer Credit Report Fee Drops 50 Cents!

The maximum that a consumer reporting agency can charge for providing a consumer a copy of their credit report has been reduced from $11 to $10.50 as of January 1, 2010.

Consumers are entitled to one free credit report from each of the three national consumer reporting agencies every 12 months, but a fee can be charged on additional reports requested during that period.

The fees are set according to provisions of the fair credit Reporting Act. Originally set at $8 in 1997, the fee has grown since with changes in the consumer price index (CPI). The CPI calculation in September showed a slight decrease in CPI growth during the covered period. The fee is revised to $10.50 due to rounding requirement.

To receive a free copy of your credit report (if you haven't in the last 12 months) visit the only site authorized under federal law to provide consumers with their credit reports free of charge, www.annualcreditreport.com. Remember, if you are asked for payment information.....it is not free!

December 24, 2009

You Can and Should Check Your Credit Profile For FREE!

Smart consumers view offers for "free" products with the same skepticism reserved for weight-loss pills, work-at-home opportunities and spray-on hair.

This skepticism is usually justified, particularly when it comes to credit reports. We have all seen and heard the commercials offering free credit reports to sell expensive credit monitoring or other subscription services. The best known example, which uses entertaining commercials with scruffy actors with poor credit has paid the Federal Trade Commission $1.25 million to settle charges that its ads are misleading.

The good news is that in recent months, several companies have launched websites that provides a credit profile at no cost.

The score you will get from these sites is NOT the widely used FICO score lenders use when you apply for a mortgage, credit card or car loan. But if you are simply looking to improve your credit standing in 2010, these sites provide a useful snapshot of where you stand.

Neither of the websites mentioned here require you to enter a credit or debit card number, which means you don't have to worry about surprise charges on your account. These sites rely on advertising for revenue, so be prepared to see a lot of ads for credit cards, mortgages and other products.

Credit Karma (www.creditkarma.com). This site offers a score based on information provided by TrueCredit, a division of TransUnion. This is NOT a FICO score, but it does give you an idea of whether lenders consider you an excellent, average or poor credit risk.

Credit.com. This site's Report Card tells you whether your score is bad, poor, fair, good or excellent, and how that translates into an actual credit score. You will also get a grade for components of your score. Credit.com uses information from TransUnion.

While credit scores and snapshots are useful tools, you should obtain your credit report at least annually from the three major credit reporting agencies, Experian, Equifax and TransUnion. Remember that by law you are entitled to a free copy of your credit report from each of these agencies once every 12 months which can be obtained at the only truly free website for free credit reports, www.annualcreditreport.com.

Free Credit Report Scams

Under federal law the only source authorized to provide consumers with their Credit Reports FREE OF CHARGE is AnnualCreditReport.com. We have said this many times in the past, but it is worth saying again, if you have to provide payment information, like a debit or credit card number, it is NOT free! It’s as simple as that.

The Fair Credit Reporting Act guarantees you access to your credit report from each of the 3 Credit Report Agencies, Experian, Equifax and Trans Union, every 12 months – FREE OF CHARGE – and AnnualCreditReport.com is the only company federally authorized to offer this service.

How Do You Request Your Free Credit Reports?

You can request your Free Credit Reports every 12 months online, by telephone at 1-877-322-8228 or by mail by writing to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your credit report from all 3 Credit Reporting Agencies at one time, or you may order 1 at a time during the year and more closely monitor your credit.

Why You Should Order Your Credit Reports

Information contained in your credit reports is used to evaluate your applications for credit, insurance, employment and even affects your credit worthiness with your current creditors. It is very important to make sure the information in your credit report is accurate and up-to-date. Additionally, reviewing your credit reports is an effective way to detect unauthorized activity and stop potential identity theft.

What You Should Look For In Your Credit Reports

First, make sure that all the personal identifying information is correct, including past addresses and employers. Carefully review all of the accounts that are listed to ensure they are being reported and recorded accurately and are accounts you opened.

If you do find inaccuracies or errors in your credit reports, contact the Credit reporting Agency and the information provider. The Federal Trade Commission has a great Tip Sheet, How To Dispute Credit Errors to assist consumers.

If you suspect identity theft, you may need to place a Fraud Alert on your credit report, close any accounts that may have been compromised, file a police report, or file a complaint with the Federal Trade Commission. For more information and step by step instructions on what to do if you suspect your identity has been stolen visit the FTC’s Identity Theft website.

If you have been scammed by a phony Free Credit Report company the Federal Trade Commission wants to hear from you!

Beware of Mortgage Foreclosure Rescue Scams! - Help is FREE!!!

Warnings have been issued by the Federal Trade Commission that scam artists are preying on vulnerable homeowners who are facing the possibility of foreclosure.

So-called foreclosure rescue companies or foreclosures assistance firms claim they can help you save your home. Some even offer a money-back guarantee. Their goal is to make a quick profit through "fees" or mortgage payments they collect directly from you, but do not pass on to your mortgage lender. Sometimes they even assume ownership of your home by deceiving you!

If you or someone you know needs assistance with a possible foreclosure, avoid any business that:

• asks for fees, or any money at all up front
• guarantees to stop the foreclosure process
• instructs you not to contact your lender, lawyer, or credit counselor
• encourages you to lease the home to them and then "buy it back"
• tells you to make your mortgage payments directly to them rather than your lender
• tells you to transfer your property title to them
• offers to buy your home for a fixed price that is not supported by the current market
• offers to complete paperwork for you
• pressures you to sign documents even if you don't understand them

For assistance with your mortgage you should contact your lender directly or a Housing and Urban Development (HUD) housing counselor at 1-888-995-HOPE (4673).

The Office of Thrift Supervision has also published a comprehensive guide to protecting yourself from becoming a victim of foreclosure rescue fraud.

If you believe you or someone you know is being victimized or has been victimized by a foreclosure rescue scam, immediately contact the Federal Trade Commission (FTC) at 1-877-382-4357 to report it!

Financial Literacy

The credit union industry firmly believes that financial literacy is key to living a financially responsible and secure life.

The National Financial Literacy and Education Commission launched a web site designed to provide consumer with information about personal finance matters and is administered by the General Cervices Administration's Federal Citizen Information Center.

We believe the the information and resources this web site makes available are very valuable and urge you to visit www.MyMoney.gov.