Collections/Credit

Question 1. How do I clear up marks on my credit report?
First, order a copy of your credit report from a credit agency and check it for accuracy. If there are any items you believe are not your debts, you need to dispute those items with the credit reporting agency in writing. If the credit reporting agency verifies the debt and you still dispute it, you then need to dispute the item with the original creditor in writing. If the mark remains on your credit report, call an attorney. However, if the debt is properly and accurately reported on your credit report there may be nothing that can be done to remove it.

Question 2. How do I find the CRA that has my report?
Contact the CRAs listed in the Yellow Pages under "credit" or "credit rating and reporting." Because more than one CRA may have a file on you, call each until you have located all the agencies maintaining your file. The three major credit bureaus are:

In addition, anyone who takes action against you in response to a report supplied by a CRA—such as denying your application for credit, insurance, or employment—must give you the name, address, and telephone number of the CRA that provided the report.

Question 3. Do I have a right to know what's in my report?
Yes, if you ask for it. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information. The CRA also must give you a list of everyone who has requested your report within the past year—two years for employment related requests.

Question 4. Is there a charge for my report?
Sometimes. There's no charge if a company takes adverse action against you, such as denying your application for credit, insurance or employment, and you request your report within 60 days of receiving the notice of the action. The notice will give you the name, address, and phone number of the CRA. In addition, you're entitled to one free report a year if you certify in writing that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a CRA may charge you up to $8.50 for a copy of your report.

Even if you have not been denied credit, you may want to find out what information is in your credit report. Some financial advisors suggest that you review your credit report periodically for inaccuracies or omissions. This could be especially important if you're considering a major purchase, such as buying a home or a car. Checking in advance on the accuracy of the information in your credit report could speed the credit-granting process.

Question 5. What type of information do credit bureaus collect and sell?
Credit bureaus collect and sell four basic types of information.

1. Identification and employment information–Your name, birth date, Social Security number, employer, and spouse's name are routinely noted. The CRA also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information.
2. Payment history–Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted.
3. Inquiries–CRAs must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years.
4. Public record information–Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Question 6. What can I do about inaccurate or incomplete information?
Under the new law, both the CRA and the information provider have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under this law, contact both the CRA and the information provider.

First, tell the CRA in writing what information you believe is inaccurate. CRAs must reinvestigate the items in question - usually within 30 days -- unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can correct this information in your file.

When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Second, tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct -- that is, if the information is inaccurate -- the information provider may not use it again.

Question 7. What can I do if the CRA or information provider won't correct the information I dispute?
A reinvestigation may not resolve your dispute with the CRA. If that's the case, ask the CRA to include your statement of the dispute in your file and in future reports. If you request, the CRA also will provide your statement to anyone who received a copy of the old report in the recent past. There usually is a fee for this service.

If you tell the information provider that you dispute an item, a notice of your dispute must be included anytime the information provider reports the item to a CRA.

Question 8. Can my employer get my report?
Only if you say it's okay. A CRA may not supply information about you to your employer, or to a prospective employer, without your consent.

Question 9. Can creditors, employers, or insurers get a report that contains medical information about me?
Not without your approval.

Question 10. What should I know about "investigative consumer reports"?
"Investigative consumer reports" are detailed reports that involve interviews with your neighbors or acquaintances about your lifestyle, character, and reputation. They may be used in connection with insurance and employment applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request certain information about the report from the company you applied to. If your application is rejected, you may get additional information from the CRA. However, the CRA does not have to reveal the sources of the information.

Question 11. How long can a CRA report negative information?
Seven years. There are certain exceptions:

• Information about criminal convictions may be reported without any time limitation.
• Bankruptcy information may be reported for 10 years.
• Information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
• Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
• Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

Question 12. Can anyone get a copy of my report?
No. Only people with a legitimate business need, as recognized by the FCRA. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment.

Question 13. How can I stop a CRA from including me on lists for unsolicited credit and insurance offers?
Creditors and insurers may use CRA file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the CRA provides for this purpose will keep your name off the lists permanently.

Question 14. Do I have the right to sue for damages?
You may sue a CRA, a user or -- in some cases -- a provider of CRA data, in state or federal court for most violations of the FCRA. If you win, the defendant will have to pay damages and reimburse you for attorney fees to the extent ordered by the court.

Question 15. Are there other laws I should know about?
Yes. If your credit application was denied, the Equal Credit Opportunity Act requires creditors to specify why -- if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file" with a CRA or because the CRA says you have "delinquent obligations." The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the CRA.

Question 16. Where should I report violations of the law?
Although the FTC can't act as your lawyer in private disputes, information about your experiences and concerns is vital to the enforcement of the Fair Credit Reporting Act. Send your questions or complaints to: Consumer Response Center -- FCRA, Federal Trade Commission, Washington, D.C. 20580.

Question 17. I have terrible credit. What can I do to restore my credit?
There is no easy solution to this question. You either need to make arrangements to pay your bills or consider filing bankruptcy. (See "Bankruptcy" section). However, as a general rule your most recent history is more important than things in the past, so in addition to clearing up old debts that may still be owed you should focus on making sure that all your payments are made on time in the present. These on time payments will help your credit. In addition, get statements of good payments from sources that might not normally report to credit bureaus such as landlords, local merchants, or utilities.

Question 18. Collection agencies are harassing me at work and home. What can I do?
Collection agencies are allowed to call you at home and/or work. There is a South Carolina statute prohibiting unreasonable amounts of calls, and no calls can be made before 8:00 a.m. and after 9:00 p.m. without the prior consent of the debtor. South Carolina law provides administrative penalties, and/or civil remedies for violating this law. You can demand that collection agencies stop contacting you if you do so in writing. However, if you do so this leaves them no other option but to sue to collect their debt and may speed up this process.

Question 19. Someone is using my name, driver's license and/or social security card to impersonate me. What should I do?
You should report this information to the Department of Motor Vehicles, the Social Security Administration and/or the police department as applicable. Further, you should advise in writing any person or company who may have been the victim of someone else using your name. Check the Federal Trade Commission's website at www.ftc.gov for more information on this.

Question 20. I want to dispute a debt. Can I do this? How?
Yes. If someone, or a company, is attempting to collect a debt from you, you may challenge the debt in writing within thirty days of your receipt of the collection notice. The person or company attempting to collect the debt then must provide you with specific information about the debt in writing. If the collecting company still attempts to collect the debt without giving you the written information about the debt, you should call an attorney.

Question 21. Someone owes me/my business money. How can I collect?
Lawsuits to collect debts valued at $7,500.00 or less may be filed on your/your company's behalf in Magistrate's Court. If the amount is greater than $7,500.00 you should contact an attorney to file a lawsuit. Also, you may wish to contact an attorney to write a letter on behalf of you or your company before filing a lawsuit. (See "Civil Litigation" Section).

Question 1. Can I return a car once I buy it? Does South Carolina law allow me to cancel a contract within three (3) days?
NO. While there are laws in South Carolina that do allow a person to cancel a contract within three (3) business days. In order to qualify under the law, the contract must be from one of the following: a) A home solicitation sale; b) A contract for home repairs if the repairs have not begun; and/or c) If the written contract specifically says it can be cancelled within three (3) business days. There is no South Carolina law that allows the three (3) days to cancel an agreement for the purchase of a new car. There are no exceptions to this law unless the contract itself has specific cancellation language. Cancellation language in a contract for the purchase of a car is highly unusual and almost never occurs in South Carolina. Therefore, if you buy a car you cannot change your mind and return it a couple days later.

Question 2. If I lend someone money and he/she does not pay it back, what should I do?
If you are planning to lend someone money, you should have a written contract prepared which specifies when and how the money is to be repaid, and what is to happen if they do not repay the money. If you have previously loaned someone money, you may file a lawsuit to collect the money if the person failed to repay it within three (3) years.

Question 3. My car has been repossessed. What can I do?
Generally, the only way to get your car back is to pay the entire outstanding balance on the car or be the successful bidder at the auction that will follow. An offer to bring your payments current is usually not enough to get the car back. Sometimes, an attorney can successfully negotiate to get your car back, but there are no guarantees. Also, you should be aware that if your car is repossessed, and sold at auction for less money than you owe on the car, the creditor will likely sue you for the difference. Filing a bankruptcy under the right circumstances my allow you to get your vehicle back from the creditor, but only if it is filed before the car is sold.

Question 4. I received a letter or phone call threatening to garnish my wages and I have not been sued. Can my wages be garnished?
Wages may not be garnished under South Carolina law. If a creditor is threatening to do this then he is violating the law and you should contact an attorney. Please note that certain types of debts (including child support, taxes, and student loans) can be collected through garnishment in South Carolina.

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