Consumer Credit
Consumer Credit
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Victims of Credit Card Fraud
or Identity Theft
1) Report the crime to the police immediately. Get a
copy of the police report or case number. Credit card
companies, the bank, or insurance companies may
ask for the reference to verify the crime.
2) Immediately contact the credit card issuers. Get replacement
cards with new account numbers and ask
that the old account be processed as “account closed
at consumer’s request” for credit record purposes.
Follow up with a letter to the credit card company
that summarizes the request in writing.
3) Call the fraud units of the three credit reporting bureaus
to report the theft. Ask that the accounts be
flagged. Also, add a victim’s statement to the report
requesting contact to verify future credit applications.
• Equifax Credit Information Services—Consumer Fraud
Division
P.O. Box 740256, Atlanta, GA 30374
Call: (888) 766-0008
Website: www.equifax.com
• Experian, P.O. Box 9554, Allen, TX 75013-9554
Call: (888) EXPERIAN (397-3742)
Website: www.experian.com
• Trans Union Fraud Victim Assistance Department
P.O. Box 2000, Chester, PA 19016-2000
Call: (800) 680-7289
Website: www.transunion.com
4) Notify the Social Security Administration’s Office of
Inspector General if the Social Security Number has been
Used fraudulently.
Consumer Credit
Counselors discuss the person’s entire financial situation
and help develop a personalized plan. A reputable
credit counseling agency should send free information
about the services it provides without requiring any details
about the individual’s situation. If a firm doesn’t
do that, consider it a red flag and go elsewhere for help.
Check out potential credit counseling agencies with
the state Attorney General, local consumer protection
agency, and Better Business Bureau.
Debt Management Plan (DMP)
How a DMP Works
Money is deposited each month with the credit counseling
organization. The organization uses the deposits to
pay unsecured debts, such as credit card bills, student
loans, and medical bills, according to a planned payment
schedule.
Creditors may agree to lower interest rates and waive
certain fees, but check with all the creditors to be sure
that they offer the concessions that a credit counseling
organization describes. A successful DMP requires regular
timely payments, and could take 48 months or longer
to complete.
Avoid organizations that push a DMP as the only option
before they do an analysis of the individual’s financial
situation.
Counselors discuss the person’s entire financial situation
and help develop a personalized plan. A reputable
credit counseling agency should send free information
about the services it provides without requiring any details
about the individual’s situation. If a firm doesn’t
do that, consider it a red flag and go elsewhere for help.
Check out potential credit counseling agencies with
the state Attorney General, local consumer protection
agency, and Better Business Bureau.
Debt Negotiation Programs
Debt negotiation is not the same thing as credit counseling
or a DMP. It can be risky and have a negative impact
on the individual’s credit report. Many states have laws
regulating debt negotiation companies and the services
they offer. Just because a debt negotiation company
describes itself as a “nonprofit” organization, there’s no
guarantee that the services offered are legitimate. Most
debt negotiation companies charge consumers substantial
fees for their services, including a fee to establish the
account with the debt negotiator, a monthly service fee,
and a final fee of a percentage of the money supposedly
saved.
5) File a complaint with the Federal Trade Commission.
• By phone:
Toll-free 1-877-ID-THEFT (438-4338),
TTY 1-866-653-4261
• By mail: Consumer Response Center, Federal Trade
Commission, 600 Pennsylvania Ave. NW, Washington,
DC 20580
• Website: www.consumer.ftc.gov
For More Information
To file a complaint or get free information about consumer
issues from the Federal Trade Commission:
• Phone: 1-877-382-4357
• TTY: 1-866-653-4261
• Internet: ftc.gov
• Free annual credit report: www.annualreport.com
Credit Counselors
Most credit counselors offer services through local offices,
the internet, or on the telephone. Many universities,
military bases, credit unions, housing authorities,
and branches of the U.S. Cooperative Extension Service
operate nonprofit credit counseling programs. A financial
institution or local consumer protection agency may
also be good sources of information and referrals.
Choosing a Credit Counseling Organization
Reputable credit counseling organizations advise on
managing money and debts, help develop a budget,
and usually offer free educational materials and workshops.
Counselors are certified and trained in the areas
of consumer credit, money and debt management, and
budgeting.
Tip-Offs
Be careful of debt negotiation companies that:
• Guarantee they can remove unsecured debt.
• Promise that unsecured debts can be paid off with
pennies on the dollar.
• Require substantial monthly service fees.
• Demand payment of a percentage of savings.
• Tell the individual to stop making payments or
communicating with creditors.
• Require the individual to make monthly payments to
them rather than the creditor.
• Claim that creditors never sue consumers for
non-payment of unsecured debt.
• Promise that using their system will have no negative
impact on the individual’s credit report.
• Claim that they can remove accurate negative
information from the individual’s credit report
Protect Yourself
• Never provide personal financial information
over the phone or internet if you did not initiate
the contact. Instead, call the company yourself for
verification.
• Do not be intimidated by an email or phone call.
Any communication suggesting dire consequences
for failing to provide or verify financial information
should be ignored.
• Review account statements regularly to ensure all
charges are correct. If your account statement is late in
arriving, contact the lending institution immediately.
• Don’t fall for an IRS imposter. The IRS does not
send out unsolicited emails asking for personal
information.
Contact Us
There are many events that occur during the year that can affect
your tax situation. Preparation of your tax return involves summarizing
transactions and events that occurred during the prior
year. In most situations, treatment is firmly established at the
time the transaction occurs. However, negative tax effects can
be avoided by proper planning. Please contact us in advance
if you have questions about the tax effects of a transaction or
event, including the following:
• Pension or IRA distributions.
• Significant change in income or
deductions.
• Job change.
• Marriage.
• Attainment of age 59½ or 70½.
• Sale or purchase of a business.
• Sale or purchase of a residence
or other real estate.
• Retirement.
• Notice from IRS or other
revenue department.
• Divorce or separation.
• Self-employment.
• Charitable contributions
of property in excess of
$5,000.