Experian

[benos]

This morning I get an email from American Express, notifying me that the single purchase limit for my biz silver card (that I only use for biz expenses) has been lowered from $21,000 to $1,000.

I thought the email was spam at first, but I called them anyway. Turns out it's true. The rep tells me the reason is that they received 2 negative reports for Experian. The first said I had poor mortgage lender payment history, and the second strike was that my FICO score had dropped. Great.

Both are pure BS. My mortage payment auto-deducts, and I've paid every bill or credit card statement every month for my entire life.

I'm a member of LifeLock, so I call them. And the sales rep-woman was awesome. She conference called my mortgage company with me and they tell me that my payment history is spotless. Never late ever. Then she tells me to get credit reports from all 3 companies and FICO scores, to figure out why my score dropped. What a nightmare that was - their websites are the most confusing sites ever.

So I finally wade through that - and I find that in Experian only there's an overdue debit against me for $1,100. Which I'm certainly unaware of. I finally figure out in their site that it's a bill from my old merchant account company - Total Merchant Services (before I swtiched to Wells Fargo). Now it's all starting to come back to me. I shut down all my old bank accounts and merchant accout at the same time when I switched to Wells Fargo. (I changed all my accounts in Sept., and this was in Nov.) My monthly fees for my merchant account auto-debited from my old BofA account. So TMS couldn't get paid for my last month of service with them. I remember realizing that at the time, but I figured they would just send me a bill or call me and I'd give them a credit card number.

A couple months after I changed my accounts I get a call from --- wow... I just now remembered this as I was typing right now --- I'm pretty sure it was a bill collection company. Up until now I thought it was TMS who called.) I had forgotten about the last months payment for TMS, and I think I remember now... slowly piecing to together. So I get off the phone with them and tell them and call TMS. I think I even remember yelling at the guy for turning the bill over to debit collection w/o even calling me or sending me a bill. (They were just a BS operation anyway.) So I tell him to send me the bill and I'll send him a check. Which I did, at the end of November.

So I disputed the debit with Experian. But they say it takes 30 - 45 days to resolve. So I called AmEx and told them the whole story. But they won't budge. They told me the only credit reprot company the get their info from is Experian. They didn't care that Equifax and whatever the other companies name is didn't show the debit. They also didn't care if I mailed them a copy of the cashed check. The only way they would review my account is after they got new info from Experian. The rep at AmEx apologize profusely, and said "you'd be surprised how often this sort of (bad info from the credit report companies) thing happens.

Now I have to figure out how to deal with the poor mortgage payment history thing, with Experian.

This took up my entire day. These credit report companies have too much power.

be

[shootingchef]

Try to get them to drop old charges, won't happen. You have to get a lawyer to fight these guys, I agree they have too much power.

[kimel]

Call the AZ Attorney General's office. You'd be surprised at how fast the rules change.

Contrary to popular belief, the AG's office in most if not all states can and will really help citizens out.

[Paul B]

Don't mean to sound paranoid, but you may also be the victim of something bigger at AMEX. Just yesterday, there was a headline that AMEX was actually paying some customers to cancel their accounts. Seems AMEX is taking a very conservative approach right now even with their best customers.

[BigDave]

Call the AZ Attorney General's office. You'd be surprised at how fast the rules change.

Contrary to popular belief, the AG's office in most if not all states can and will really help citizens out.

+1 Call the AG. Consumer protection is their main gig. My wife is an deputy AG.

[Vulture]

I have a Sears card from Citi bank. They sent me a notice that my APR was going up to 26%. I called and asked why and they said the current economic climate bla bla bla. I said my Credit score is almost 800 and your still raising my rate. They said yup. So now i will use the card to scrape old bubble gum off the bottom of park benches...

[larry cazes]

Brian, how come lifelock didnt catch this when the change first happened to your rating at Experian?

[benos]

Don't mean to sound paranoid, but you may also be the victim of something bigger at AMEX. Just yesterday, there was a headline that AMEX was actually paying some customers to cancel their accounts. Seems AMEX is taking a very conservative approach right now even with their best customers.

Call the AZ Attorney General's office. You'd be surprised at how fast the rules change.

Contrary to popular belief, the AG's office in most if not all states can and will really help citizens out.

+1 Call the AG. Consumer protection is their main gig. My wife is an deputy AG.

Thanks guys.

Brian, how come lifelock didnt catch this when the change first happened to your rating at Experian?

Good question. I'll ask them.

Funny, this morning I got two messages from a collection company, regarding the "outstanding" bill to TMS. So I faxed them a copy of the cashed check. Which should clear that up. In about 30 days.

Now I just gotta deal with this not paying my mortgage on time thing!

[BayouSlide]

I hear you Brian...you're preaching to the choir. Guilty until YOU take the untold hours of time it takes to prove you're innocent.

I long ago gave up trying to convince the three credit reporting companies that a secondary address they had for me in California was bogus. Danged if I could figure where that one came from.

Keep fighting the good fight, brother.

Curtis

[Franklin D Wolverton]

Now I just gotta deal with this not paying my mortgage on time thing!

There's really only two ways that this happened... either your mortgage company screwed up, or someone else (not you) has a mortgage in your name.

Experian is only going to report a "past due mortgage" if your mortgage company sent it to them... you need to have the mortgage company send them (certified letter... have them send you a copy of the letter they sent, and the return receipt when they get it). Experian then has (i believe) 30 days from the receipt of the letter to remove the false report.

If they fail to within 30 days, you have grounds for a lawsuit...

Of course... I'm preaching to the choir here... you already know all this...

Frank

[DonT]

Brian, I don't like any of the credit reporting agencies but perhaps it's the credit card company.

Same thing happened to me last month. Got a letter stating that my business card credit line has been decreased from 38,500 to 5000 citing that I only use a small portion of my available credit and in their ongoing attempt to provide each customer with the best possible service, they thought this would better suit my needs. Well that really did a number on my FICO score considering part of it is based on your available unused credit. BTW my credit reports are spotless.

BS...the credit card companies are hurting and they don't have investors to buy our credit so they can't extend more credit and they have to take away credit. The way they are making any money now is in late fees, over-the-limit fees, and hoping you miss one payment so you jump to the default rate.

I have closed several accounts in the past year for credit cards that I considered good cards in the past that have turned to junk status IMHO.

They try every trick in the book to make you late on a payment. I had one company that would change it's payment address each month. Most of the companies have shortened their billing cycles to the point that when you get a statement, there's not enough time to send it back before it's due.

Good luck Brian, feel your frustration.

[Carlos]

Let there be NO mistake: the 3 big credit reporting companies are crooked, shady outfits that use questionable and "sharp business practices."

Want proof?

Start here:

MSNBC.com

[Flatland Shooter]

I have closed several accounts in the past year for credit cards that I considered good cards in the past that have turned to junk status

I only have two cards and have never had a late payment or carried a balance. I've had both cards for over 20 years. I also got a letter from one of them indicating that the next time I have a late payment, my account automatically goes to the default rate of around 29%.

Never late, never carried a balance and I end up getting threatening letters. It B.S. at its worst.

I'd close the card account but always heard that a canceled card destroys your FICO score. Hey DonT, any idea if it hurt your score when you closed several accounts?

Bill

[DonT]

I have closed several accounts in the past year for credit cards that I considered good cards in the past that have turned to junk status

I only have two cards and have never had a late payment or carried a balance. I've had both cards for over 20 years. I also got a letter from one of them indicating that the next time I have a late payment, my account automatically goes to the default rate of around 29%.

Never late, never carried a balance and I end up getting threatening letters. It B.S. at its worst.

I'd close the card account but always heard that a canceled card destroys your FICO score. Hey DonT, any idea if it hurt your score when you closed several accounts?

Bill

Bill, pm sent

Edited February 28, 2009 by DonT

[davidwiz]

Call the AZ Attorney General's office. You'd be surprised at how fast the rules change.

Contrary to popular belief, the AG's office in most if not all states can and will really help citizens out.

Sadly, that is not my experience. I've filed numerous reports with many different state AGs on behalf of clients and nothing has happened. Only if an AG gets thousands of similar complaints will they do anything, in my experience.

[JFlowers]

Funny, this morning I got two messages from a collection company, regarding the "outstanding" bill to TMS. So I faxed them a copy of the cashed check. Which should clear that up. In about 30 days.

Brian,

It has been my experience that the collection agencies could care less if you can provide proof that the debt has been paid. They will continue to try and collect until the originating agency tells them the debt has been paid.

My wife and I had a load company reject a payment because the two digits of the cents part of the check were reversed. They not only then sold the debt to a collection agency, but to multiple agencies simultaneously! And the mistake made the check 18 cents in their favor!

James

[davidwiz]

Brian,

If you are still having problems, call my office (or email me) and I'll see if I can help.

-David

[benos]

Brian, I don't like any of the credit reporting agencies but perhaps it's the credit card company.

Same thing happened to me last month. Got a letter stating that my business card credit line has been decreased from 38,500 to 5000 citing that I only use a small portion of my available credit and in their ongoing attempt to provide each customer with the best possible service, they thought this would better suit my needs. Well that really did a number on my FICO score considering part of it is based on your available unused credit. BTW my credit reports are spotless.

BS...the credit card companies are hurting and they don't have investors to buy our credit so they can't extend more credit and they have to take away credit. The way they are making any money now is in late fees, over-the-limit fees, and hoping you miss one payment so you jump to the default rate.

Good luck Brian, feel your frustration.

Thanks Don. And yes, since my mortgage company said they did not send anything to the credit reporting companies, I wonder if AmEx is just making that "poor payment history" thing up. And it was also interesting that when I mentioned to the Amex rep that I might just cancel the card - they said nothing. I thought that was a bit odd. Normally they'd always try to pitch you something at that point. So if that's true, then it's probably not even worth trying to deal with the "poor history" "issue."

Brian,

If you are still having problems, call my office (or email me) and I'll see if I can help.

-David

Thanks David.

be

[HSMITH]

I am required to keep an AmEx as part of my job, but it will be a cold day in hell before a dime goes across it. AmEx is the worst credit card company out there to deal with, and I have never carried a balance on a credit card in my ENTIRE LIFE, nope, not even a dollar. If it is charged it is paid, and AmEx still managed to piss me off. I have a couple Visa, Mastercard and one Discover that are never a problem.

If you have the cash to tell them pack sand I urge you to do so.

[downlow411]

Now we need to get term limits for the house and senate so that people who live in the real world will worry about by the people and for the people.

Fifty years ago this was called loan sharking now its called legal.

[atbarr]

Now we need to get term limits for the house and senate

The voters are the term limits. They/we keep electing those idiots!

Stay Safe,

A.T.

[bbbean]

Now we need to get term limits for the house and senate

The voters are the term limits.

+10!!!!

[larry cazes]

Thanks Don. And yes, since my mortgage company said they did not send anything to the credit reporting companies, I wonder if AmEx is just making that "poor payment history" thing up. And it was also interesting that when I mentioned to the Amex rep that I might just cancel the card - they said nothing. I thought that was a bit odd. Normally they'd always try to pitch you something at that point. So if that's true, then it's probably not even worth trying to deal with the "poor history" "issue."

Brian, I would not be surprised if AmEx is playing you a bit on this. After my last few months of experiences with both Bank of America and my credit card companies it seems like the lenders do not want to lend. My credit rating is excellent and my history is clean but I get no love from these guys.

Edited March 5, 2009 by larry cazes

[walter hornby]

Brian

while not being really familiar with US law, could you not file a request for information giving you the details of the mortgage report? i would think you would want to do one for your home state, one for the state where the report was filed and for good measure a federal one just in case.

[Graham Smith]

As to this particular problem, I looked at LifeLock and have been considering signing up because it was my understanding that part of the fee was to help pay for assistance solving just this kind of problem! I may now be reconsidering.

As to everything else... I have a friend with the AG's office here and he said they are getting beaten up, along with everyone else the politicians can find to blame, for what happened with things like Maidoff and mortgage backed securities. "Why weren't they being proactive and catching things like this?" Little things like short staffing and a general lack of complaints while people thought they were making piles of money doesn't seem to play into any of this. Duh...

Anyway, between him and friends I have in the banking business, I've been hearing horror stories lately about people furiously rushing to cover their arses and locate any possible problems with any open accounts they have now. Stuff they used to ignore as probably insignificant are suddenly real important. In this case, it's likely the issue with Experian was considered to be an anomaly since the other two credit bureaus don't reflect the same problem, but now the automatic watchdogs have taken precedence and the ability to override them has been greatly reduced.

It's going to get a whole lot worse before it gets better. On the other hand, it may just be that people with minimal debt and a history of prompt payment are going to start getting the credit scores they deserve while those with 10 credit card balances start seeing them selves drop out of the 800's and down to the 500's where they belong.

And the possible silver lining is that for the first time in a long time, the rate credit card debt seems to be going down. In fact, my business partner just got a notice from Redstone Federal Credit Union that the APR on his credit card was being reduced. It seems they are trying to stimulate credit card use.

Good luck Brian with your battle, and keep us posted.