Archived Outrages

Those who forget the past are condemned to repeat it

Credit Bureaus/Banks redefine your right to bankruptcy

Washington DC, June 10,'98 - In an unusual display of hardball politics, the House of Representatives has caved in to industry special interest groups and adopted the Bankruptcy reform measures. Consumer groups nationwide opposed the bill but were badly outgunned by the wealth and power of credit bureaus and banks. It is widely acknowledged that the banking industries reliance on credit reports for marketing has been a prime factor in increased bankruptcies even in good times. Once again this industry seeks to hide its own responsibility and punish US citizens for the consequences of its own greed.

Vice President Gore unveils new Privacy Plan

May 14, 1998 Al Gore unveiled a new White House plan to ensure "medical record and credit report privacy" today. Part of the plan was the creation of an FTC Opt out page which links victims to the three credit bureaus (2004 - now a generic disclaimer page). Unfortunately the "opt out" option is not new and covers only mailing lists---not things that really matter like credit reports or medical records.

Starr gets credit reports in Whitewater Investigation

May 8, 1998 In an effort to prove President Clinton had sex with Monica Lewinsky, Kenneth Starr has obtained the credit reports of numerous figures in the Whitewater investigation. Starr, a long time friend of credit bureaus, recognizes that these dossiers hold far more information than most lawmakers realize and hopes to find evidence of White house misconduct. (Is this really the type of scoring credit reports are supposed to work with?) Spokesmen from the Associated Credit Bureaus are all over the talk shows trying to hide the fact that so called "credit reports" show alot more than credit. Heads up though--when politicians become victims like the rest of us things change. Video rental records appeared during the Supreme Court nomination hearings of Judge Bork and Congress immediately passed stringent privacy rules for video rental records.

Public Interest Research Group

PIRG has issued their latest annual Credit Report study and once again it accurately highlights the problems of the credit report industry. This site is worth spending time on.

Experian (TRW) merging with Junk Mailers

8/17/98 Update-See Adforce May '98 If you thought your mailbox was full already, just wait a few months. Experian and Metromail have now merged and are rapidly establishing alliances with others in the business of saturating your mailbox, answering machine, and email with unwanted junk. (Did you know that 2 of the 3 big bureaus have moved their ownership outside of the US and the 3rd is a private company so you have no access to their records?)

Car Salesmen and your credit report

The FTC has issued a letter outlining what car salesman can and cannot do with credit reports. A typical practice has been to run credit reports on everyone who walks into the lot so the salesman knows all the gossip and dirt about you during price negotiations, including what other dealers you have talked to. The letter is welcome, but non binding and implies that anyone who may get paid by check has a right to run a credit report.

National Association of Attorneys General

The National Association of Attorneys General released a list of most common consumer complaints. The press is reporting that credit reports are a factor in all five of the most common ones.

Federal Loan Giant takes another look at Credit Report value

Freddie-Mac. This public/private agency takes back some of the nice things they have been saying about credit scoring after it was announced that their new system was rejecting 50% more applicants than manual review. See alsoFreddie Scores from the Washington Post.

National Association of Insurance Commissioners

The National Association of Insurance Commissioners has adopted a "white paper" restricting the use of credit reports in insurance underwriting. Testimony indicated there was no connection between a credit report and insurance claims. 50% of insurance companies currently use reports and insist they are objective and useful. More enlightened analysts indicate it is just another way of excluding those least able to defend themselves and raise rates on those who can. Industry lobbyists now hint that plans are in the works to require your doctor to report your genetic code to central data repositories used by insurance companies.

Equifax Division Purchased by Dutch Investors

VNU Purchases NDS Division seems like a insignificant news release. Not so. This acquisition ultimately puts your credit and marketing data under the ownership of VNU, based in the Netherlands. The Netherlands (aka Holland) has the strongest anti-credit report laws in the world to protect its own citizens. With TRW now owned by the British, (with strong libel laws) our warnings about excluding those who own credit bureaus from the effects of credit reports are more timely than ever. Just as we suggested 3 years ago, those who inflict credit reports on the US tend to live where they are not personally subjected to reports. Just watch Equifax now use the Dutch privacy laws to keep their own financial records secret while continuing to sell yours like peanuts at a ball game.

Companies Screwing Up Your Credit Because You Pay On Time

  • If you think you couldn't possibly be blacklisted because you always pay quickly, think again. GE is the latest firm to consider you a deadbeat for not paying late. When any card is canceled because you didn't incur late fees or interest, it shows up on your credit report as "closed by the creditor". At that point scoring systems brand you as unworthy to enter a pay toilet, let alone get another card.

    • "A little solvent to be applying for a SEARS card, aren't you?"

  • SEARS declines debt free applicants with clean credit records in their 40s for "Age Grouping". The victims can't find what nefarious scoring practice this phrase refers to, but it likely means that good customers that age should have at least 10 thousand in credit card debt and a few glitches on their credit record. Our Translation: Sears wants only customers who have debt problems so they can collect late charges. (It is well known this is the case with many banks.) As if to prove our point, Sears just blew $165 million to settle charges that they were making deals with those already in bankruptcy so they could go right from the courthouse and rack up more debt on their SEARS card. Now we know what they mean by "Come see the softer side of Sears!"

    • Federal Reserve Governor Can't Get "Toy's R Us" Credit Card

    A salary of $123,000 and a seat on the Board of the Federal Reserve wasn't enough to convince computers at the Bank of New York to grant Lawrence B. Lindsey a Visa Card. Lindsey spoke to a forum on credit card problems sponsored by Rep. Joe Kennedy. Published reports indicate the credit scoring program rejected the application because the applicant had 8 reports issued in a 12 month period. Both Toys R Us and Bank of New York issued statements regretting the incident and offering Mr. Lindsey a card. No mention was made in either statement of the millions of ordinary citizens who are victimized the same way each year.

    Mr. Lindsey has been a vocal critic of credit scoring systems for some time. The Associated Press quotes him as saying "If human beings are taken out of the loop, some rationality and common sense is lost in the process." Amen to that!

    Protect Your Mail --- Lose Your Credit

    1989-1997 Several members throughout the country are reporting the sudden inability to get credit after opening Post Office Boxes on the advice of postal officials and law enforcement. Mail theft is an increasing problem in urban areas, where residents of many neighborhoods are advised to have mail sent to PO boxes to avoid having it stolen. The credit bureaus promptly use lists supplied by your US Post Office, including private PO Box street addresses, to put boxholders on "fraud alert". Understand that it is not the use of a box in applying for credit that gets you blacklisted, but the mere possesion of a box even if not listed on the loan application. This "special" designation (or the outdated/erroneous addresses and their sources) seldom show up on your copy of the report, but results in application rejection. Reason for rejection is usually listed as "past delinquent accounts" even when no accounts are reported.
  • May '97 Update - The mail privacy situation has gotten much worse. Experian is now retaining address and PO Box records permanently. Reports obtained in May 1997 are showing PO Box addresses from 18 years ago--including several which were obtained from magazine subscription databases and at least one political campaign. Experian is the only bureau honest enough to at least show the erronous data to victims, but we have never seen as blatant a violation of the 7 year rule, especially since the reports often show the source as a collection agency. Credit scoring systems can scour these ancient addresses (and who reported them) for any evidence of debt well over the legal reporting time and presto, "past delinquent accounts" haunt you from the Johnson administration. You can complain to the bureaus by writing to them at their own PO Boxes.

    FTC allows age discrimination

  • The Federal Trade Commission hosts some pro bureau web pages that are so anti-victim you have to hold your nose to read them. The FTCs weak apologies for allowing clearly discriminatory practices is illuminating. (Did you know that it is not age discrimination to treat everyone ages 30 to 50 as though they have massive debt, regardless of the actual debt of the individual?) Co-sponsored by two extremely pro-banker groups, it appears the pages were written to deflect consumer demands that change occur in credit evaluation practices. (The FTC has failed to bring criminal charges against a single person in the credit bureau racket, despite huge numbers of complaints and a lot of fluff from the commission.) The web site is worth reading, if only to see how credit bureau marketing fantasies are repeated as fact by a government agency.

    Equifax Accused Of Selling Voting Records To Bill Collectors

  • A recently aquired subsidiary of Equifax (CDB-California Data Bureau) faces a private lawsuit over the illegal sale of voting records to skip tracers and bill collectors, reports Businesswire. (Californias Attorney General was apparently too busy taping commercials for the credit bureaus to handle this himself.) The same firm was caught selling social security and voter information in Arizona in 1995 and was subject to a 1993 consent decree which was apparently filed in a drawer and forgotten. This is so outrageous even Equifax shareholders demanded an explanation.

    Car Rental Companies do it to Victims yet again

  • The rental car industry has made life miserable for Credit Report Victims for some time. Even though there is little, if any, evidence that holding a credit card makes you a better driver most rental agencies have raised their noses to the ceiling and said they do not wish to deal with customers who have debit, as opposed to credit cards. This was originally opposed by Mastercard and VISA. Debit cards are frequently used by those who dislike debt or do not want their private finances advertised on credit reports. Many folks who have escaped credit reports now have no choice but to put all their personal information into the system and apply for a credit card (Secured cards are likely the next target.) Incredibly, some "consumer groups" approved the move. More from CNN.

    When you can't win in court, just ruin 'em with a credit report

    The following is a direct quote from a web page maintained by a collection attorney. Only his name has been deleted. Does this make your blood boil or what? (Still online in March 1999)
  • Do credit reporting!

    As we say in our office, "WE DON'T JUST TALK, WE SUE." Sometimes, however, you may not wish to initiate suit, or we may simply advise you that we do not recommend suit, but you still want to "mark" your debtor's account in a permanent fashion. XXX - Your Collection Attorney will report your delinquent accounts to one or more of the three major credit bureaus for no additional charge beyond the percentage fee if the account is collected. All we need is your debtor's Social Security number.

    Thieves and Credit Agencies Team Up To Punish Victims

  • An ongoing fad in the credit reporting/scoring industry is to treat those who have debit/credit cards stolen as if they themselves are thieves. Credit bureaus now report the theft of a card on your report, and it is often scored in the same way as a major loan default.
  • Ready for the next step? Odds are good that within the next year other types of crimes will be used against the victim and credit bureaus will call it a public service! ("I'm sorry mam, but our other patrons would be uncomfortable with a rape victim eating next to them.") Thanks to the civic minded folks at credit bureaus, you are now forced to decide between reporting a crime to police and losing the ability to conduct business for seven years. So think carefully before you use that toll free number to report a stolen card--it may be better to just close the account without explanation.

    Dillards and May Company accused of violating Fair Credit Reporting Act

    The Federal Trade Commission conducted an investigation of Dillards and May Company. May Company Dillards

    More Credit Repair Firms under Investigation

    The FTC marches on in the odd saga of credit repair firms. (Take a look at this April 11, 1996 FTC press release on Credit Repair Investigations. If you get the mistaken impression that the FTC is always on your side, carefully read their press release from March 20 on the same topic Consumer Credit Advocates

    Insurance Denied To Credit Report Victims

    The November 6, 1995 Wall Street Journal front page annouced that Allstate Insurance has been declining auto, home and health insurance to those already victimized by credit reporting practices. In interviewing insurance executives for the article the Journal found that many large insurance firms will insure drivers with a DWI, but would decline applicants with so called poor credit histories. Legislation to curtail this obscene practice is currently pending in many states and is already illegal in many Washington State

    Federal Trade Commission says credit scores can be secret

    The Federal Trade Commision announced on September 1, 1995 that credit reporting agencies are not required to tell "consumers" (aka "victims") what scores or scoring totals were used in rejecting their applications (See our page on Credit Scoring.) When interviewed by the Seattle Times, FTC associate director for credit practices David Medine indicated that the fair credit reporting act was so outdated it's terms simply do not fit reality any longer. In the following press release, note the FTCs assumption that each person has a magic manila envelope containg their "credit history".

    The 5-0 decision will have little immediate effect, since most credit report agencies have just thumbed their nose at the FTC rule, even when scoring has been specifically requested by the victim.To see the FTC press release, click here FTC Press Release

    FTC holds medical reports accountable

    Not all the news from the FTC is bad. At least we can see our medical records (via a doctor) but we still can't delete even obvious errors. Was there ever any real question that we should have this right? FTC on Medical Records

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