Protecting Your Identity

Because credit repair companies must handle sensitive information in order to help you improve your credit scores, it pays to find out exactly how they secure your information, and what type of policies they have in place to protect your identity. Stay away from credit repair companies that don’t have a clearly visible privacy policy, and/or don’t have any method of contact other than email. Ideally, you want to be able to contact the company via telephone and an actual physical address – not just a P.O. Box. By establishing a physical presence that is easily located, a reputable credit repair company is one that will be around for the long-term.

Online Precautions

You should be able to get answers about the methods used to secure your data, about encryption on the company’s website (if they have one) and who has access to your data, and when. You should also be able to revoke access to this data at any time, if you choose to end your business relationship with the company. Check the security certificates of the website – they should be current, and they should match the name of the website and the credit repair company. Be wary of any company that has an invalid or expired security certificate – without a valid certificate, your information is not safe.

Company Policies

Different credit repair companies will have different policies when it comes to how your information is handled. You should find out who will have access to that information before you sign up for service. While the credit repair company may take appropriate security steps, third-party vendors with access to your information may not, and this can cause troubles with identity theft down the line, if unauthorized people are able to view your information.

The Final Choice

When deciding on which credit repair company to use, always factor in the security of your personal information. Credit repair can benefit you in many ways, including improved credit scores, lower interest rates and better rates on insurance to name a few. Always make sure that your final choice for credit repair is one that protects these benefits by protecting your identity as well.

Related posts:

1. Recognizing Credit Repair Scams As the economic slump continues, more and more people are...
2. Credt Repair – Three Tips to Spot Scammers Credit repair scams are on the rise – and while...

Related posts brought to you by Yet Another Related Posts Plugin.

Online Monitoring – if your credit card company allows you to monitor your charges online, take advantage of that to keep track of your charges. Set up an email alert whenever your credit nears its limit, and check for unauthorized charges on a regular basis. Most credit card companies have a 0% fraud liability in place, but this only works on your behalf if you notice a suspicious charge and report it promptly – it can prove difficult to dispute a charge that you don’t notice until months later.

Set Spending Limits – don’t trust your credit card company to hold you to your credit limit. Many companies will allow you to go over your limit in charges, and then access an over-limit fee for each charge that is above your approved credit line. This could mean that a thief with your credit card number might still cash in, even if your cards are maxed out. The best way to handle this is to tell your credit card company not to allow courtesy over-limit spending. While it means you will have to be more careful about your own spending as well, it can prevent a host of problems with over-limit fees down the line.

Leave the Plastic at Home – unless you’re going on a major shopping spree, you probably don’t need every credit card you own in your wallet. Only take one or two, and you minimize your risk if your cards are ever lost or stolen. By keeping excessive cards out of your wallet, you may also cut down on impulse spending, which can help your budget and your credit score in return.

Be Smart about Online Shopping – only shop at reputable sites that you know you can trust. The holiday season is not the best time to be adventurous with online shopping. A merchant website can be up one day and gone the next, so be sure to deal with companies you can trust – and keep your anti-virus, firewall, and browser up-to-date to minimize security risks overall.

Consider Fraud Monitoring – if you can afford it, consider paying for a fraud monitoring service over the holiday season. This will make it simple for you to know if anyone has opened a new account in your name, or is making large purchases on accounts you may not have used actively in some time. Be sure to choose a reputable company, ideally one that will provide a monthly report, either through the mail or online, about your credit activity. Match what you see in the report to what you know you’ve charged, and if you notice discrepancies, contact your credit card company right away.

With credit card fraud and identity theft, the sooner the fraudulent actions are caught, the easier it is to straighten out any potential damage to your credit history. So be alert, shop safely, and always monitor your statements for unusual activity. If you follow these tips, you can enjoy your holiday shopping without worrying about a nasty New Year’s surprise on your credit score.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Where Did My Credit Rating Go?

The biggest, most obvious sign of identity theft would be when you are unexpectedly rejected when applying for extra credit, such as a credit card or loan. If you have always paid your bills on time, keep very low credit card balances, and have had credit for several years, there is no reason you should be denied a Sears credit card (or some other miscellaneous retailer).

A rejection might indicate that somebody has been doing something on your credit report of which you are unaware. You might want to get a free copy of your credit report as soon as possible and go over it with a fine-toothed comb.

Suspicious “Junk Mail”

Another good indicator of identity theft would be missing bills. The mailman is not perfect and one missing water bill is probably indicative of a haphazard postman and not identity theft. However, if you are missing several bills, it may be a concern. Purchase a post office box and change your addresses with the companies you do business with. Check with the credit bureaus and all of your creditors to see if anything suspicious has happened as of late. It would also not hurt to put fraud alerts on your credit report with all three credit bureaus, to protect yourself from any future damages.

Sometimes junk mail is just that…complete and total junk. But, if you start receiving innumerable credit offers and credit cards for which you never applied, it may be a good sign to start auditing that credit report. A trigger for credit offers often happens when a financial company requests and receives a copy of your credit report. If you did not authorize it, somebody else out there did. This is definitely a sign.

Should you receive an actual credit card, ask about the application. When you file a police report, alert the police of this incident. They may be able to track down your attacker based on the credit application. For example, if someone applied online for a credit card with your information, the IP address of the computer they used to apply will be stored with the creditor. This address could be used to track down the thief and charge them with a Class C felony.

Strange, Small Errors and Charges

The most common type of identity theft manifests itself as a few unauthorized debits, charges, or withdrawals with one of your financial institutions. No matter how small the unauthorized amount may be, contact your creditor. Often times scammers will make small charges to see if the card is “good” before they really go on a spending spree. A five minute call to your financial institution can launch a fraud investigation and prevent your account from further unauthorized transactions.

If you start receiving collection calls from representatives of companies you have never dealt with, immediately request a copy of your credit report. Alert these companies that the inquiries are unauthorized, as you have never dealt with them. The company may require something in writing stating that the charges are unauthorized. Comply with any requests as quickly as possible so you can return to restoring your credit.

It can be an intimidating thing if one or more of these things happen to you. Take the first step and do not let it “work itself out” (it won’t). Scammers are out there making a living by conning you out of your hard-earned cash, reputation, and accomplishments. Be proactive and do not let any resistance stop your goal of returning back to normal consumer life.

Source: CreditIdentitySafe.com, a site full of identity theft protection tips, warnings and scam alerts.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Avoid Giving Out Personal Information over the Phone

It seems like a simple rule to follow, but in the reality is that many times it can be difficult to know whether or not a business is reputable or not. Con artists sound just as sincere as customer service representatives, and it can be impossible to ascertain a company’s legitimacy over the phone. For this reason, unless the call is initiated by the elderly individual, and he or she knows exactly who she is calling and why, no personal information should be given out over the phone. This includes phone calls from supposed charities, banks, churches, and other ‘good-will’ organizations. If you really want to do business with the company or charity involved, look up the phone number yourself and initiate the telephone call – the offer will still be available, and you won’t have to worry about giving information to an unscrupulous caller.

Do Not Trust Links in Email

For those senior citizens who are tech-savvy, the web brings a whole new host of potential problems. Banks, investment groups, online merchants and other businesses frequently send out emails to those who have an account with them. However, many scam artists take advantage of this fact and use ‘phishing’ techniques to mimic company emails in an attempt to trick users into entering account or credit card information. The best safeguard against such practices? Don’t trust the links in email. If you receive a notice from a company that needs you to verify a credit card number or account information, call the company to confirm – almost always, these types of emails are a scam. Never use the links in an email; always type the address into the browser rather than following the emailed link.

Pay Careful Attention to Financial Managers

Sadly, most cases of financial abuse and identity theft are often perpetrated by close friends or family members. So pay careful attention to any business investments, new accounts, or other activities that are initiated on your behalf. Keep a copy of all transactions and pay attention to your credit report – if you notice accounts opened in your name that you do not recognize, take steps to protect yourself immediately.

Credit Repair Services Can Help

Elderly individuals are often at a disadvantage when it comes to damage to their credit score. This is because seniors often do not have the luxury of waiting 7 to 10 years for negative items on their credit report to be removed. Also, because of the fact that many seniors live on a fixed income, the need to have access to affordable credit lines is an important one. Credit repair services can help to undo the damages caused by identity theft and fraud, while giving back control to the victim.

Credit repair programs are especially helpful in those situations where the elderly individual needs guidance and assistance in order to understand the credit repair process, or in those cases where the elderly individual cannot act on his or her own behalf. Finding a reputable company that cares for its clients can go a long way to undoing the damage caused by financial fraud. Fortunately, there are many such companies available – so the elderly do not have to suffer in silence due to the fraudulent actions of others.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

If you are a victim of identity theft, take the following four steps as soon as possible, and keep a record with the details of your conversations and copies of all correspondence.

1.Place a fraud alert on your credit reports, and review your credit reports.

Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too. If you do not receive a confirmation from a company, you should contact that company directly to place a fraud alert.

Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-525-6285;

Experian
P.O. Box 9532
Allen, TX 75013
1-888-EXPERIAN (397-3742)

TransUnion
Fraud Victim Assistance Division
P.O. Box 6790, Fullerton
CA 92834-6790
1-800-680-7289

Once you place the fraud alert in your file, you’re entitled to order one free copy of your credit report from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. Once you get your credit reports, review them carefully. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain. Check that information, like your Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed. See Correcting Fraudulent Information in Credit Reports to learn how. Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.

2. Close the accounts that you know, or believe, have been tampered with or opened fraudulently.

Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

If the identity thief has made charges or debits on your accounts, or has fraudulently opened accounts, ask the company for the forms to dispute those transactions:

For charges and debits on existing accounts, ask the representative to send you the company’s fraud dispute forms. If the company doesn’t have special forms, use the sample letter to dispute the fraudulent charges or debits. In either case, write to the company at the address given for “billing inquiries,” NOT the address for sending your payments.

For new unauthorized accounts, ask if the company accepts the ID Theft Affidavit (PDF, 56 KB). If not, ask the representative to send you the company’s fraud dispute forms. If the company already has reported these accounts or debts on your credit report, dispute this fraudulent information. See Correcting Fraudulent Information in Credit Reports to learn how.

Once you have resolved your identity theft dispute with the company, ask for a letter stating that the company has closed the disputed accounts and has discharged the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you are contacted again about the fraudulent debt.

3. File a complaint with the Federal Trade Commission.

By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC can refer victims’ complaints to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces.

You can file a complaint with the FTC using the online complaint form; or call the FTC’s Identity Theft Hotline, toll-free: 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.

Be sure to call the Hotline to update your complaint if you have any additional information or problems.

4. File a report with your local police or the police in the community where the identity theft took place.

Then, get a copy of the police report or at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a “Miscellaneous Incidents” report, or try another jurisdiction, like your state police. You also can check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check naag.org for a list of state Attorneys General.

When you go to your local police department to file a complaint, bring a printed copy of your ID Theft Complaint form and your supporting documentation. Ask the officer to attach or incorporate the Complaint into their police report. Also ask the officer to sign the “Law Enforcement Report” section of your Complaint. If the officer wants more information about the ID Theft Report, you can tell them it is available on the FTC’s Web site’s Section for Law Enforcement at the link for “Identity Theft Report”. Ask the officer to give you a copy of the official police report with your ID Theft Complaint attached or incorporated. (In some jurisdictions the officer will not be able to give you a copy of the official police report, but should be able to sign your complaint and write the police report number in the “Law Enforcement Report” section.)

The ID Theft Complaint can be used to supplement an automated police report. If you can file online an automated report, complete the “Automated Report Information” block of the ID Theft Complaint. Attach a copy of any confirmation received from the police to your ID Theft Complaint.

Soure: FTC.gov

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

DO…

• Consider closing unused and idle accounts. These accounts could be charging you unnecessary fees and are often targets for identity thieves. Close the accounts with annual fees or the highest interest rates first.

• Check your credit report online to see the status of your accounts. Look for late payments, high balances and signs of identity theft. As a bonus, checking your credit report can save you some research time by providing you with contact information for each of your creditors.

• Be aware that you can cancel accounts that have an active balance. You can ask your creditor to close the account to new charges and continue paying down the balance each month. This may be a good way for heavy credit users to prevent new spending while they are reducing their balances but watch out for hidden fees.

• Keep four to six credit accounts open. This will keep your credit score and debt balances healthy. Signs of active and responsible credit use are viewed positively by creditors.

• Designate one card for regular use and try to pay the balance in-full each month. Reserve the other cards for emergencies only so that you are not tempted to overspend.

DON’T…

• Don’t close the oldest account on your credit report. This could cause your credit history to appear shorter and could harm your credit score.

• Don’t just throw away old cards and expect your accounts to close automatically. The safest way to close an account is to send a certified letter to the customer service department of the credit company. You should receive an account closing confirmation letter in 10 days.

• You shouldn’t be pressured to cancel several accounts all at once. Gradually paying down and closing accounts may be the best plan if you are unsure about the impact on your credit score or the amount of debt you need to carry. If you want to cancel numerous credit accounts, spacing the closures over time will reduce the chance of attracting negative suspicion from potential creditors.

• Avoid over-consolidating balances onto one card. If your credit balances rise to above 35% of your available limits, you may see a drop in your credit score.

• Don’t forget to check your credit report for updates and errors after you close your credit accounts. Wait 30-60 days for the creditor to report the closed account and the credit reporting agencies to update your records. While the accounts and their payment histories will stay on your report for 7 or more years, they should be marked as “closed.”

Related posts:

1. Should I Close My Credit Card Account? Five Considerations to Keep in Mind When Closing Accounts With...

Related posts brought to you by Yet Another Related Posts Plugin.