Looks like more of us are cutting up our credit cards, or putting them in the freezer for safe keeping.

The Associated Press is reporting that the Fed says consumers cut debt by a record $21.6 billion in July from June, the most since 1943.

Looks as if the bad economy could be making people think a little harder about how they use credit. Perhaps, the free spending ways of the last decade are behind us.

Anyone else finding that they are depending less on credit? Where else are you cutting back?

Posted by Andrea Walker at 5:38 PM | Permalink | Comments (1)
Categories: Budgeting, Credit cards, Credit reports, Debt
        

Maryland residents can review their credit reports from each of the three credit reporting bureaus twice a year. But what about the other organizations keeping tabs on your habits, including your insurance claims, your employment record and your rental history?

Under the Fair Credit Reporting Act, you're entitled to not only the credit reports but also other specialty reports, about your check-cashing history, your personal medical history if you have private insurance and other information. Details from these reports can affect whether you're approved for an insurance policy, the premium you're charged, your chances for getting a job or even a new lease on a home or apartment.

To check for errors ... 

Continue reading "Save money on insurance: Consumer Web Site of the Week" »

Posted by Liz Kay at 10:59 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Consumer Web Site of the Week, Credit reports, How To, Identity theft, Insurance
        

How can you avoid turning credit repair into credit despair? Here are a few suggestions from the Federal Trade Commission:

Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law.

Avoid any credit repair company that will not tell you your legal rights and what you can do, yourself, for free.

Avoid any credit repair company that tells you not to contact a credit reporting company directly.

Avoid any credit repair company that advises you to dispute all of the information in your credit report.

Avoid any company that suggests creating a 'new' credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number. That is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution.

Be safe out there.

Posted by Dan Thanh Dang at 9:11 AM | Permalink | Comments (3)
Categories: Consumer protection, Consumer safety, Credit reports, Debt, How To, Personal finance
        

I wrote about credit monitoring services and how they don't fully protect you against identity theft in today's Q&A. If you haven't read it, check it out since we discuss LifeLock, an identity theft protection company whose CEO has been flaunting his Social Security Number all over the place in an attempt to prove to potential customers how safe he feels using his company's services..

Too bad he's had dozens of attempts by various people to steal his identity with at least one person being successful.

In the column, I talk about credit freezes so I just wanted to remind everyone how we've told you before how to request a credit freeze here.

Continue reading "Credit monitoring services can be costly and ineffective" »

Posted by Dan Thanh Dang at 1:20 PM | Permalink | Comments (0)
Categories: Consumer protection, Credit reports, Identity theft
        

My story about a Web site for landlords to post reviews about problem renters online discussed the difficulties property managers face when checking out potential tenants -- and advice for renters who fear they've been blackballed.

Remember when we first alerted you to donotrentto.com? It's a situation rife with thorny issues, especially when you're potentially smearing people's reputations.

But what source can landlords rely upon? Even court records about rentals should be taken with a grain of salt, said John Nethercut, executive director of the Public Justice Center.

"Public records are of course a better source of information than Web sites that may pick and choose which information to display. However, there are particular problems with the eviction records at the Baltimore City District Court," he said.

More than 130,000 eviction cases are filed annually in the city. But Baltimore's rent court is not computerized.

In a small percentage of those cases, landlords take their tenants to small claims court to try to get their back rent. If the renter pays up, the landlord is supposed to file documents to reflect that.

Continue reading "More advice for tenants and landlords" »

Posted by Liz Kay at 4:07 PM | Permalink | Comments (0)
        

Have you ever wanted to hire a financial advisor to give you tips on saving and investing money? How much would you pay someone for valuable tips on buying and keeping a home? Would you pay money to listen to someone give you advice on how to start your own business?

Saturday's your lucky day, my friends. The Baltimore CASH Campaign -- which is working with Congressman Elijah Cummings and other community and financial institution partners -- is holding its 3rd Annual Money Power Day on Feb. 16 at the Baltimore Polytechnic Institute, 1400 W. Coldspring Lane, Baltimore, MD. from 10 a.m. to 3 p.m.

This year's theme is "Road Map to Financial Success." The event will feature an exhibit area with over 40 organizations providing information to working families who need help obtaining and understanding a credit report, legal advice on taxes and information about grants to help people purchase homes in the city. There will also be workshops and services on a range of financial topics from credit counseling to tax preparation assistance.

Continue reading "Get Money Smart" »

Posted by Dan Thanh Dang at 8:06 AM | Permalink | Comments (0)
Categories: Budgeting, College/Financial aid, Credit cards, Credit reports, Debt, Personal finance
        

Remember when I told you that a new law went into effect on Jan. 1 that allows consumers to put a freeze on your credit reports to stop thieves from opening fraudulent new accounts in your name? It's supposed to help prevent identity theft.

As I said in my earlier post, if a creditor can't check your credit history, it's unlikely they'd extend new credit to you or anyone else trying to open accounts in your name. The freeze lessens your chances of becoming a victim.

It's a useful tool, but I've been wondering how easy or difficult it is to request the freeze, which can require a number of steps on your part to get it started.  

Good Consumer Jane wrote in to say:

I just put a security freeze on all three accouints and received a letter from Experian today that said..."In accordance with state legislation and pursuant to your request to have a Security Freeze placed on your Experian Credit Report, we are required to notify you that within the last 30 days, changes to your name, address or Social Security Number have been posted to your file."

When you call the 877 they give to inquire about this, a recording tells you that if you receive one of these letters, you should request a credit report and review it for accuracy or unauthorized changes. Is this a way of conning consumers who put on a security freeze to order a credit report? Luckily I haven't used my free report from Experian in the past years, so I'll get mine free.

I have a hard time believing some change really took place at exactly the same time I put on the security freeze. I suspiciously suspect that the change that took place WAS the security freeze, and they're just trying to get unsuspecting people to order the report.

Or maybe I'm being too cynical.

Continue reading "Security freeze = Brain freeze" »

Posted by Dan Thanh Dang at 10:43 AM | Permalink | Comments (2)
Categories: Complaints, Consumer protection, Consumer safety, Credit reports
        

Remember when I told you that you can now request a credit freeze in the state of Maryland? Remember when I said that by putting a security freeze on your credit reports, you can help stop thieves from opening fraudulent new accounts in your name?

Remember how I told you it would only cost $5 at each of the credit agencies to put the freeze into effect? And that it would be free to those who have been a victim of identity theft?

Well, now I'm wondering how many of you have tried it?  Anyone request a credit freeze yet and want to share it with us? Was it easy? Difficult? Would you rather have a tooth pulled without novocaine than try it again? Do you feel protected or has it caused any problems for you? Let us know.

Apparently, the Federal Trade Commission is also wondering how it's working out for you. The Commission is inviting interested parties to submit written comments on the impact and effectiveness of state credit freeze laws, as well as the credit freeze options offered by nationwide consumer reporting agencies.

There are about 24 questions the feds want you to answer about your experience, but don't feel like you have to answer them all. But do try to voice your opinion so they don't think it's a non-issue. You have until Feb. 25 to let the feds know whether you love or hate the freeze.

(AP Photo)

Posted by Dan Thanh Dang at 8:04 AM | Permalink | Comments (0)
Categories: Credit cards, Credit reports
        

I meant to remind everyone of this last week, but I figure better late than never... Marylanders now have a new tool to stop identity theft. Thanks to a new state law that went into effect on New Year's Day, consumers here now have the ability to put a security freeze on your credit reports to stop thieves from opening fraudulent new accounts in your name.

By placing a freeze on your reports, it prevents a credit reporting bureau from releasing information about your credit history. If a creditor can't check your credit history, it's unlikely they'd extend new credit to you or anyone else trying to open accounts in your name. The freeze lessens your chances of becoming a victim.

As my colleague Eileen wrote on Dec. 9, "Marylanders can't be charged more than $5 to freeze a report or to have a freeze lifted. That is half the amount that credit bureaus are charging residents in most other states."

And victims of identity theft don't have to pay any fee, no matter where they live.

Do keep in mind that putting a freeze in place will make it harder for you to get instant credit. So if you're shopping for a car or like signing up for new credit cards (a bad habit!) often, you might want to hold off on putting a freeze on your reports. You can lift the freeze, of course, but you'll have to pay each time you ask to lift it.

To request a freeze:

Continue reading "Security freeze is now available" »

Posted by Dan Thanh Dang at 2:32 PM | Permalink | Comments (3)
Categories: Consumer protection, Credit reports, How To, Personal finance
        

Angela P. Williams is likely a hero to any consumer who has struggled to get credit bureaus to correct mistakes on a credit report. The Florida woman says she disputed information on the Equifax report but the credit bureau continued to circulate the errors and ruined her credit. After eight years, she had enough. She sued. A Florida jury awarded her nearly $3 million in damages. Read her story in the Orlando Sentinel.

 Her tale is a good reminder to check your credit report for mistakes. Order a free annual report here. Equifax is likely to appeal the court’s decision. Still, judgments like that are a warning that credit bureaus need to take consumers seriously.

Posted by Eileen Ambrose at 3:28 PM | Permalink | Comments (0)
Categories: Credit reports