Credit Justice Services BLOG

The concept of peer lending has been around for ages. Families or communities would pool money together to help out those who needed loans. Each family who contributed would take a turn at being the recipient of the money. Still alive today and known in different cultures by different names, this concept has found its way into the Internet and has become a growing alternative resource for people seeking loans.

Peer lending simply matches up individuals willing to loan money to people who want to borrow money. The borrower must qualify to receive money by individual standards set by the person who will be lending the money. On the Internet sites, the qualifications involve credit scores and debt to income ratio. But other factors can influence the lender, such as the reason for the loan.

According to Celent, a research firm, peer lending sources are expected to grow 800% over the next three years. Some good advice, if you’re planning on using an Internet company – do your homework. Peer lending sites profit from fees they charge borrowers and lenders. Peer lending creates a win / win situation for both borrower and lender.

For Brandon and Amanda Mendelson, it had all the elements of a paperback thriller: the innocent newlyweds, the mysterious account held by an obscure bank in Boca Raton, the faceless corporation controlling everything behind the scenes. But when the Mendelsons discovered the strange overdue loan mistakenly listed on Amanda’s credit report, they weren’t exactly thrilled. The Glens Falls, N.Y., couple had never done business with that bank, and the error spoiled Amanda’s credit history. Making matters worse, their call to a national credit bureau yielded nothing more than a form letter stating that the accuracy of the entry had been “investigated” and “verified.” Now they can’t help but wonder: investigated how? Verified by whom? Brandon studied organizational leadership in school, but even he can’t imagine how the bureau failed to fix such an obvious mistake. “Maybe it fell through the cracks,” he says.

Or maybe the process worked pretty much as it was designed to. Although they generally decline to discuss specific cases, the three major credit bureaus – Experian, Equifax and TransUnion—each attest to their commitment to accuracy and accountability in their record keeping. But while consumers might assume that each bureau employs an army of dedicated sleuths who carefully investigate and correct errors, all the bureaus actually process most disputes using a system that’s almost entirely automated—and where human beings are involved, they’re often working at a harried pace. The bureaus say the system, dubbed with the Muppety acronym e-OSCAR, is the most efficient way to handle the more than 20,000 disputes a day they receive. In practice, most complaints are electronically zapped straight to the lender, and according to consumer advocates, many lenders respond by simply re-reporting the erroneous data.

Credit-report accuracy is profoundly important now, because an error can wreak more havoc than ever on your financial life. Before the nation heard the words credit crisis, just about anyone with a pulse could get a loan. Now many banks are refusing credit to anyone who looks remotely risky. And as legions of anxious job hunters know, a growing number of employers routinely check credit reports before they make a hire. It’s no wonder, then, that the National Foundation for Credit Counseling says call volume is up 31 percent in the past 12 months. “Credit is on consumers’ minds more than ever before,” says Curtis Arnold, CEO of CardRatings.com.

But according to a 2007 survey by pollster Zogby, 37 percent of consumers who obtain their credit reports find errors, and half of those said they could not easily correct the mistakes. An earlier study by the U.S. Public Interest Research Group, a nonprofit consumer advocacy organization, found that one in four reports contained “serious errors.” For its part, the Consumer Data Industry Association, the industry’s trade group, says only 11 percent of consumers who get their credit report file a dispute and just 5 percent of those challenge the results. “That’s an excellent satisfaction rate,” says the group’s president, Stuart Pratt. Still, even some industry insiders say there’s a problem. Testifying before Congress, one CEO of an independent Arizona credit bureau likened the dispute process to “having an IRS audit, brain surgery, getting a tooth pulled or going to your own funeral.”

And when the dispute process fails, consumers say they are left feeling powerless. Martha Soto, a 63-year-old Antioch, Calif., shipping manager, says she couldn’t get the mortgage she needed last fall because Experian listed her as the defendant in an unpaid court judgment. She says she’s faxed records proving that she’s actually the plaintiff; Experian says they’re the wrong records, and the dispute is still unresolved, leaving Soto increasingly frustrated. “They’re defaming you, and you can’t do anything about it,” says Soto. “It’s scary to think an agency like that can control your life.”

From: SmartMoney Magazine by Anne Kadet – Feb.2, 2009

For complete article visit: http://www.smartmoney.com/Spending/Rip-offs/Why-The-Credit-Bureaus-Cannot-Get-it-Right/?page=all


Sometimes it takes an expert in the field of credit repair to assist consumers in removing negative information from their credit reports and helping them to not feel powerless. Founded by a former owner of a collection agency, Credit Justice Services helps consumers protect their credit rights using our 75 Day Credit Makeover Process. Our process is backed by knowledge, experience and know-how. We personally educate and assist the consumer to move forward in a positive direction. We do it ethically, affordably and quickly. Call 904-757-0880 today to speak to a Certified Credit Consultant and get on your way to freedom!

In some markets more than 1 out of 10 homeowners are dealing with a pending foreclosure. The most common initial reaction is to avoid the lender and bury one's head like an ostrich hoping to avoid danger. It is impossible to hide from mortgage obligations without dire consequences but a proactive strategy can produce positive results.

The first step is to stare the problem right in the face. You've got to deal honestly with the questions at hand. For instance:

· Could you afford to stay if the payment was lower?
· Are you expecting that you can catch up on arrears?
· Do have the money to move if evicted or sold as a short sale?
· What would be the effect of a deficiency judgment on your financial condition, both present and future?
Next is to determine the goals of your strategy. Where do want to be when this is over?
· Do you want to stay in the house if the payment can be made affordable?
· Do you owe much more than the house is worth and just want a way out with some damage control?
· Do you need to stay in the house for as long as possible without being able to make any mortgage payments?
Your options will be dictated by how you have addressed the above questions and defined your immediate goals. The most common options include a refinance or modification of the mortgage, a sale of the property, negotiating a deed in lieu of foreclosure or just stalling what may be an inevitable foreclosure. Most important to remember is that a foreclosure is a legal procedure. Richard Weinstein, an attorney in Jupiter, Fl specializes in foreclosure defenses and explains that, "there is much too much at stake for the average individual to try to properly address all the issues of the foreclosure process. The homeowner has rights they must demand and possibly assets they need to protect. Unrepresented borrowers very often find themselves unnecessarily homeless and still hopelessly in debt."

I couldn't agree more! I have seen too many regretful real life experiences with disastrous results that could have been averted if the homeowner in distress had gotten proper advice before it became too late. The sooner the dangers are acknowledged the more options that remain available, both practical and legal.

Some have advised that the first person to talk to is your lender. Here I disagree. Doesn't it make more sense to first speak with someone who is already prepared for your lender's response and knows what information should be shared? If you find yourself in the position that you cannot meet your mortgage obligations I encourage you to speak to a mortgage professional that is well versed in all possible remedies. Elite Lending offers free consultations for homeowner's in need. Please call 516-575-5626 for more information and visit www.EliteLending.biz.

Danny Poulos
516-575-5626