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If you’ve ever opened your monthly credit card statement and found that you were erroneously – billed twice, not credited for a payment, charged for an item you never purchased or overcharged by your credit card company – You are not alone. For people with open-end credit, the Fair Credit Billing Act (FCBA) protects your rights as consumers. Open-end credit accounts include credit cards, and revolving charge card accounts – such as department store accounts. The FCBA does NOT cover installment accounts (loans or extensions of credit you repay on a fixed scheduled; for example, loans made to finance a car, furniture, boat, etc.).

What types of disputes are covered?

According to the Federal Trade Commission (FTC), the FCBA settlement procedures apply only to disputes about “billing errors.” For example:

• unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• charges that list the wrong date or amount;
• charges for goods and services you didn’t accept or weren’t delivered as agreed;
• math errors;
• failure to post payments and other credits, such as returns;
• failure to send bills to your current address – provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
• charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

An error on your statement may be tremendously frustrating and inconvenient. But, these errors can be corrected!Under the law if you are disputing a charge, creditors cannot report your account as delinquent during the investigation. If you question an item on your statement you are responsible for notifying the creditor in writing within 60 days of receiving the bill. The creditor must acknowledge the notice within 30 days and may not do anything to damage your consumer credit rating while the item is in dispute. In addition the creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.It is very important that take action on your dispute immediately – Put your dispute in writing (a phone call, fax or email or won’t protect you). Then, mail it. To get you started here’s a simple sample letter recommended by the FTC.Date
Your Name
Your Address
Your City, State, Zip Code
Your Account NumberName of Creditor
Billing Inquiries
Address
City, State, Zip CodeDear Sir or Madam:I am writing to dispute a billing error in the amount of $______on my account. The amount is inaccurate because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.Enclosed are copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my position. Please investigate this matter and correct the billing error as soon as possible.Sincerely,
Your name
Enclosures: (List what you are enclosing – include any documentation such as copies of receipts, to support your argument. Keep the originals for your records)Also, very important – make sure you send it to the right address and department. Use the address for Billing Inquiries listed at the back of your credit bill.

To learn more about billing and other errors on your credit, how they affect your credit score and the different methods you can use to resolve them, check out chapters 3 and 5 of my book “7 Steps to a 720 Credit Score.

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”

“How does being married affect my credit score?” My clients are often surprised by my response to this question – Do not open joint credit accounts! In this session we’ll pull excerpts from my book 7 Steps to a 720 Credit Score to explain why couples should keep their credit separate.If you are married…
“Establish credit separately and encourage your spouse to do the same. This way you can leverage each others credit when necessary. For instance, if you need a new line of credit and have a high utilization rate on your card (a balance of over 30 per cent), you can transfer a portion of your balance to your spouse’s credit cards. You can then walk into the loan application with a low personal debt and higher-than-usual credit score.” If you are going through a divorce…
“If you own a home or joint credit card accounts, you will need to protect your credit during and after a divorce. When the courts decide, who will retain ownership of your house; make sure your bank knows as well. Refinance your house in your name or in your spouses name, depending on which of you retains ownership of the home after a divorce. If your spouse retains ownership without refinancing, you credit will be damaged if s/he becomes delinquents payments. For the same reasons, you will need to cancel all joint credit card accounts. Call your credit card company and ask for the procedure to cancel an account.”
Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available a www.720score.com or by calling 1-888-254-2702.

Check your credit report immediately – if you’re one of 10 million Sallie Mae borrowers! On Tuesday, MSN Money reported that a blunder by the nations top student loan provider “briefly trashed the scores of thousands of oblivious borrowers.” Scores nosedived after Sallie Mae mistakenly reported their borrowers’ graduated loans as arrangements for partial payments. Graduated loans benefit borrowers by – allowing them to initially start with lower (sometimes interest only) payments for the first few years of the loan with a gradual increase to full payments over time. An arrangement for partial payment typically signals the credit bureaus to code your account as delinquent – precisely what Equifax proceeded to do when Sallie Mae reported these loans to them. The loans were coded as delinquent, with past due balances and a recent history of missed payments – even though they were current.Sallie Mae has since reported that it has rectified the problem; that only 10 per cent of all customers were affected by the error and these customers’ scores have been readjusted to previous levels. To be safe, I would advise Sallie Mae borrowers to take a proactive approach and personally double check their credit reports to ensure that that this error has been removed – It is a high priority error. High priority errors can do significant damage to your credit score and need to be removed immediately. After notification from his credit monitoring service, one affected borrower found that his credit score had dropped from 727 to 646 – the difference between qualifying for a loan with a low interest rate and a high one. With a 720 and above credit score most lenders will automatically approve you for the best available loans with the lowest interest rate. Vice versa, a poor credit score can ruin your chances for buying, refinancing or renting a home or getting a better deal on your auto insurance premiums, car loan and credit cards, and it may even affect an employer choice in hiring you.

In Step 5 of my book 7 Steps to a 720 Credit Score, Fourth Edition (pages 76 -94), I discuss high priority errors such as – mistakes in payment history, incorrect credit limits, duplicate collection notices and collection notices that are not yours. Removing these types of mistakes can positively impact your score by 20, 50 or even 100 points. My recommendations if you are a Sallie Mae borrower – is to do the following now:

1. Contact www.AnnualCreditReport.com for a free copy of your credit report (you are allowed one free report every year). Or purchase a copy at www.myFICO.com. Find your Sallie Mae account on the report. If it states that “Arrangements made with credit grantor to make partial payments,” contact Equifax now: www.Equifax.com.Dispute the error. Let them know that the account is being paid as agreed upon with Sallie Mae and – it is not delinquent.When dealing with the credit bureaus sometimes it’s sometimes helpful to have an already pre-formatted letter you can tailor to your specific needs – My “Mistakes in your payment History” template letter found in “Applying the 7Steps to a 720 Score Workbook” may help you find the words. Send this letter along with a copy of the portion of your credit report that has the Sallie Mae error listed and include any other supporting documents. Send this via certified mail, return receipt requested.

1. If this doesn’t work contact Sallie Mae directly at 1-888-2-SALLIE. They have promised to provide references and other related help to accommodate customers with concerns and questions.It is especially important if you’re having trouble with other lenders or companies that need a credit score to qualify you for programs or services offered – to call Sallie Mae right now for a reference!

Your credit is your financial reputation… Stay on top of it!
Philip Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”

Borrowers are belting the blues with higher credit minimums!

Wells Fargo recently tightened credit restrictions on its non-conforming loans – loans of more than 417K. Effective April 25, the financial services company now requires borrowers of non-conforming loans to have a minimum credit score of 700. Additionally, in March Fannie Mae and Freddie Mac, the government-chartered mortgage buyers increased interest rates for borrowers with credit scores below 700 – formerly higher rates were triggered by a 680 score.To bring things into even more perspective – prior to the latter part of last year, 620 was the minimum demarcation line required to garner respectable mortgage rates and terms. This line has since then been elevated to 680. And, now it seems that – lenders petrified and frustrated by the ongoing sub-prime mortgage crisis are sifting through loan portfolios with a fine tooth comb. They’re cautious and guarded with even their most credit-eligible customers. This resurgence of stricter underwriting standards have left borrowers with fewer financing options as lenders now require higher credit scores for loan approvals. How does this “borrowers barred” climate affect your credit worthiness? Clearly, it is even more crucial that you have an impeccable credit score. There is no real problem lending to people with great credit scores. The credit crunch mostly affects the lower end of acceptable credit. In my book “7 Steps to a 720 Credit Score” I encourage behavior alteration to rebuild, strengthen and protect your credit for a lifetime – no matter your credit level or current market conditions.You can start the process by becoming proactive about your credit health. From ensuring that the information on your credit report is accurate, maintaining low credit card balances, reviewing your credit card and bank statements regularly, avoiding late payments to checking your credit history with all three bureaus frequently – Your own best advocate is you! Pessimistic bankers, mortgage companies and other lenders faced with a bitter forecast are squeezing borrowers out of the American Dream.The writing on the wall couldn’t be clearer – “Think twice before you come to us for a loan!” To avoid trouble lenders are avoiding all risk. Fortunately, borrowers with a great credit score have less to worry about than those who don’t. And, even if you don’t have the credit score you need at this moment, there’s hope. By changing your credit mindset and cultivating the habits required to make the leap to a 720 plus credit score – you won’t have to worry about meeting your lenders’ minimum.