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Questions Flashcards

1
Q

What federal law governs INC cases?

A

The federal law that governs Inaccuracy (INC) cases is the Fair Credit Reporting Act (FCRA).

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2
Q

What does INC stand for?

A

INC stands for Inaccuracy.

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3
Q

What is the main difference between an INC case and an IDT case?

A

The main difference between an Inaccuracy (INC) case and an Identity Theft (IDT) case is account ownership.

In an INC case, the client recognizes the account.

In an IDT case, the client does not recognize the account.

Both INC and IDT cases require a dispute to be filed with the CRAs before a lawsuit can be filed.

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4
Q

What proof is needed to bring an INC lawsuit?

A
  1. Proof of Inaccuracy.
  2. Proof of Harm (ex: Adverse Action Notice (AAN))
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5
Q

Can we sue the credit reporting agencies if they corrected the inaccurate information after we sent dispute letters?

A

You cannot sue the credit reporting agencies if they correct the inaccurate information after receiving the dispute letters, unless the consumer suffered provable harm as a result of the inaccuracy before it was corrected.

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6
Q

What are the three major credit reporting agencies in the United States?

A

The three major credit reporting agencies in the United States are Equifax, Experian, and TransUnion.

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7
Q

Is a letter from a debt collector considered valid proof for an INC case?

A

A letter from a debt collector is not considered valid proof for an Inaccuracy (INC) case.

(Debt collectors are not considered to be a trusted source of information because they have a financial interest in getting consumers to pay their debts.)

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8
Q

How should the documents for an INC case be named before uploading them to Salesforce?

A

YYMMDD Surname, Name - Issuer + Type of document

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9
Q

What is an Adverse Action Notice (AAN)?

A

An Adverse Action Notice (AAN) is a document that a company or organization is required to send to an individual when they are denied credit, employment, housing, insurance, or other benefits or opportunities based on information in a consumer report

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10
Q

What information should be included in an Adverse Action Notice?

A
  1. The decision made.
  2. The name and contact information of the CRA that provided the report
  3. A statement that the CRA did not make the decision and cannot provide specific reasons for it.
  4. A statement that the consumer has the right to dispute the accuracy or completeness of the information in their consumer report.
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11
Q

If a client has an AAN dated before the dispute letters were sent, can we use it as proof of harm?

A

Yes, an AAN (Adverse Action Notice) dated before the dispute letters were sent can be valuable evidence of harm in an INC lawsuit.

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12
Q

What are the stages of an INC case?

A
  1. Initial Contact and Document Collection
  2. Dispute Letter Preparation and Sending
  3. Waiting for CRA Response and Updated Reports
  4. Case Analysis and Attorney Review
  5. Litigation
  6. Resolution
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13
Q

What are the sub-stages in the “Disputes” stage of an INC case?

A
  1. Drafting Letters
  2. Compiling Packet
  3. Replies (This sub-stage begins after the LA receives and uploads the Certified Mail Receipts (CMRs) and adds the dispute records to the Salesforce platform.)
  4. Reports
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14
Q

When does the 45-day waiting period for an INC case start?

A

The 45-day waiting period for an Inaccuracy (INC) case starts on the date the credit reporting agency (CRA) receives the dispute letters.

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15
Q

What should you do if the dispute letters were sent back as undeliverable?

A
  1. If the address is incorrect, the LA should verify the CRA’s address and resend the letter via Certified Mail.
  2. If the CRA refused delivery, the LA should contact the CRA to determine why they refused the letter. Once the issue is resolved, the LA should resend the letter via Certified Mail.
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16
Q

What is the “Reports Due Date”?

A

The “Reports Due Date” is the date the updated credit reports are due from the client after the 45-day waiting period following the delivery of dispute letters to the credit reporting agencies (CRAs).

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17
Q

In what situations is a merchant call needed for an INC case?

A

A merchant call might be needed in an INC case if, after reviewing the client’s documentation, it is unclear if the account actually belongs to the client. (rare)

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17
Q

What is a merchant call?

A

A merchant call is a three-way call between a legal assistant (LA), the prospective client (PC), and a creditor (also called a merchant). The main purpose of a merchant call is to determine whether an account on the PC’s credit report actually belongs to the PC.

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18
Q

What is the main piece of evidence used to determine if an account belongs to the client in an IDT case?

A

Merchant call recording

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19
Q

What is the primary proof that Consumer Attorneys relies upon to demonstrate identity theft to the credit reporting agencies?

A

FTC Identity Theft Report/Affidavit

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20
Q

What is a “block letter,” and what is its purpose in an IDT case?

A

A block letter is a dispute letter specifically used in identity theft cases that requests the credit reporting agencies to block fraudulent information from the client’s credit report.

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21
Q

When should the legal assistant (LA) file an FTC Identity Theft Report for a client?

A

After the initial call and review of the client’s credit reports and supporting documentation; before drafting the block letter.

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22
Q

List three red flags the LA should look for during a merchant call that might indicate identity theft.

A
  1. Account opened in a location unfamiliar to the client
  2. Contact information on the account does not match the client’s
  3. Account opened using the client’s SSN but with a different name, DOB, or address)
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23
Q

What are the 2 types of fraud alerts that a client can place on their credit report?

A
  1. Initial Fraud Alert
  2. Extended Fraud Alert
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24
Q

How long does an Initial Fraud Alert last, and how is it set?

A

One year; the client can contact any of the three major CRAs to place an alert. The contacted CRA is required to notify the other two CRAs.

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25
Q

If a client has an Experian Premium membership, what should the LA advise the client to do regarding their credit reports?

A

Advise the client to cancel their Experian Premium subscription and obtain their credit reports from AnnualCreditReport.com, as Experian Premium includes an arbitration clause that can hinder litigation efforts.

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26
Q

Besides an FTC Identity Theft Report, what other documentation might be helpful to include with a block letter?

A

Police report

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27
Q

What information should the LA include in the “Status Notes” field in Salesforce after each interaction with an IDT case?

A

Initials, date, action taken, for example: RT 06/23 Called, VM left

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28
Q

Potential Defendants for IDT

A
  1. Credit Bureaus
  2. Credit Furnishers
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29
Q

Potential Defendants for Mixed Files

A

Credit Bureaus

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30
Q

Potential Defendants for Deceased

A

Credit Buereaus

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31
Q

Potential Defendants for Background Checks

A
  1. Background Screening Companies
  2. Tennance Screening Companies
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32
Q

Potential Defendants for Post-Bankruptcies cases

A

Credit Bureaus

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33
Q

Potential Defendants for FDCPA

A

Debt Collectors

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34
Q

Potential Defendants for TCPA

A
  1. Telemarketers
  2. Other companies placing automated calls.
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35
Q

Potential Defendants for FCBA

A

Creditors

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36
Q

Potential Defendants for EFTA

A

Debit/Checking/Savings account providers/

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37
Q

CRA culpability for INC cases

A

After the 30th day from the delivery date of the dispute letter;

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38
Q

Proof for INC cases

A
  1. Proof of payment or equivalent documents
  2. Credit reports
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39
Q

Subtypes of INC cases

A
  1. Inaccurate and misleading
  2. Technically accurate, but materialy misleading.
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40
Q

Proof for IDT cases

A
  1. Merchant call
  2. FTC Identity Theft Report
  3. Credit reports
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41
Q

CRA culpability for IDT cases

A

After the 30th day from the delivery date of the block letter;

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42
Q

What is a Mixed File?

A

A Mixed File is a credit report error where another person’s account information is wrongly associated with the wrong individual.

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43
Q

Why do Mixed Files happen?

A
  1. Personal information overlaps
  2. Credit bureau systems struggle to distinguish individuals.
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44
Q

Can CRAs defend themselves in case of a Mixe File case?

A

No, they cannot, they should have known about the mistake.

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45
Q

What 2 case types may start the same, but it’s determined to be one or the other during a merchant call?

A

Identity theft and Mixed File cases.

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46
Q

In what case can we sue the CRAs in a Mixed File case right from the get go, even if the mistake was corrected in the meantime and what proof is needed?

A

If the the PC has suffered negative consequences due to the inaccurate reporting of the CRA, leading to denial of credit, housing, etc.

We need a copy of the inaccurate report from the CRA.

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47
Q

Define what is a Deceased case.

A

A case where the consumer is incorectly reported as deceased on CRAs reports.

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48
Q

What are the sources of errors in case of Deceased case?

A
  1. Credit Bureau / Credit Furnishers
  2. SSA
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49
Q

What is an SSA?

A

SSA stands for the Social Security Administration.

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50
Q

What to do when a consumer is marked as deceased in a SSA database?

A

Dispute with the SSA agency directly.

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51
Q

What proof for Deceased cases do we need?

A
  1. SSA benefits letter.
  2. Adverse Action Notice with a “deceased notation”
  3. Consumer Reports with a “deceased notation”
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52
Q

What is a SSA benefits letter?

A

An SSA benefits letter is an official document issued by the Social Security Administration (SSA) that confirms an individual’s eligibility for and details about their Social Security benefits.

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53
Q

Is proof of harm necessary for a Deceased case?

A

We may not require proof of harm for deceased cases.

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54
Q

What is a Background Check case?

A

Erroneous information being reported on an individual’s background check.

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55
Q

What information can be reported wrong on a Background Check?

A
  1. Incorrect Charges.
  2. Unrecognized Charges.
  3. Showing sealed or expunged information.
  4. Unrecognized evictions.
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56
Q

What can be the sources of a Background Check file?

A
  1. CRAs
  2. The public record.
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57
Q

What to do when the Public Record is repsonsible for the error on the Background Check file?

A

Dispute with the Public Record entity is needed (usually the court)

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58
Q

What are the 2 variations of the Background Check case type?

A
  1. Mixed file.
  2. Inaccuracy
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59
Q

What are dismissed charges?

A

Dismissed charges in a criminal case mean that the prosecution has decided to formally drop the accusations against the defendant.

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60
Q

How long do dismissed charges appear on the BG for?

A

For up to 7 years and…
*indefinitely if the job someone is applying for has a salary
exceeding $75,000

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61
Q

What is a dropped charge?

A

A dropped charge means the prosecution has decided to stop pursuing the case against a defendant

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62
Q

What is the difference between a dropped and a dismissed charge?

A

None

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63
Q

What is a sealed charge/record?

A

Generally, it means the charge/arrest/conviction still exists, but that it has been hidden or “sealed” from the public.

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64
Q

For how long do sealed charges/records appear on the BG?

A

Sealed charges/records do not appear on BG

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65
Q

What is an expunged record?

A

An expunged record is a criminal record that has been officially erased or sealed from public view.

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66
Q

For how long do expunged records appear in the BG?

A

Expunged records do not appear in the the BG report.

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67
Q

Subtypes of the Background Check case

A
  1. Unrecognized criminal records/evictions.
  2. Inaccurate infromation about charges/evictions.
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68
Q

What proof do we need to gather in a Background Check case?

A
  1. Adverse Action Notice
  2. Background Report.
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69
Q

CRAs Culpability for Background Check case?

A
  1. From the get-go most of the time.
  2. After the 30th day of the delivery date of a dispute letter.
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70
Q

What is a Post-Bankruptcy case?

A

Inaccurate information related ot the Bankruptcies reported on a consumers credit report?

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71
Q

What proof do we need to have for a Post-Bankruptcy case?

A
  1. Bankruptcy Discharge
  2. Bankruptcy Schedules.
  3. Credit Reports.
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72
Q

Define what a Bankruptcy Discharge is.

A

A bankruptcy discharge is a court order that releases a debtor from personal liability for certain specified types of debts.

In simpler terms, it means that the debtor is no longer legally required to pay any debts that are discharged.

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73
Q

Define FDCPA

A

Fair Debt Collection Practices Ac

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74
Q

What are the 7 categories of the FDCPA?

A
  1. Call Frequency
  2. Call Placement
  3. Collection Letters
  4. Collection Emails
  5. Collection Text Messages
  6. Collection Credit Reporting
  7. Abusive language.
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75
Q

What proof of harm do we require to bring justice to the consumer in an FDCPA case?

A

We do not need proof of harm in order to bring justice to the customers in FDCPA case.

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76
Q

What “Call Frequency Violations” do we have?

A
  1. More than 7 calls in 7 consecutive days.
  2. Back to Back calls.
  3. In less than 7 days after a call that was answered by the cosnumer.
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77
Q

What is a “Back to Back” call?

A

2 Calls in under 5 mins.

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78
Q

According to the FCBA, when is prohibited to call a consumer?

A
  1. After receiving a Stop Calling Notice.
  2. Outside specific times the consumer is comfortable with.
  3. After being notified that a consumer no longer holds any debt.
  4. When calling a third party and information about a client’s debt is revealed.
  5. Calling a party more than once to find the location’s information.
  6. After receiving a Ceast and Desist.
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79
Q

What does TCPA stands for?

A

Telephone Consumer Protection Act

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80
Q

List all the TCPA violations.

A
  1. Making telemarketing calls before 8 AM and after 9 PM, wihtout the consumer’s consent.
  2. Using ATDS’es or Pre-Recorded Voice Messages to call or text a consumer’s cell phone.
  3. Calling a consumer who has registered their phone number on the National Do Not Call Registry
  4. Failing to comply with the request of the customer of being placed on the internal “Do Not Call List”
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81
Q

What proof do we need for TCPA?

A
  1. Call Recordings.
  2. Screenshots with the call history.
  3. Voice mails.
  4. Text messages.
  5. Emails.
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82
Q

What does FCBA stands for?

A

Fair Credit Billing Act

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83
Q

What does FCBA cover?

A

The client recognize the account, but does not recognize one or more transactions.

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84
Q

What does the consumer have to do after finding an FCBA violation?

A

Notifying the financial institution within 60 days from the date of bank statement that includes the charge that was issued.

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85
Q

What to do if the customer did not manage to notify the financial institution within 60 days from the bank statement that includes the issued charge in time?

A

We can claim it as an Identity Theft case if the unauthorized charges are being reflected on the report.

86
Q

What proof do we need for the FCBA cases?

A
  1. Account Statement
  2. Proof of written dispute.
  3. CMR
87
Q

What does the EFTA stand for?

A

Electronic Funds Transfer Act

88
Q

What territories does EFTA cover?

A

The EFTA primarily focuses on protecting consumers who are residents of the United States, regardless of where the financial institution is located.

89
Q

What does the consumer have to do if it’s an EFTA case?

A

The consumer must notify the financial institution within the 60 days from the date the periodic statement was issued.

90
Q

What proof do we need in EFTA cases?

A
  1. Account Statement
  2. Proof of written dispute
  3. CMR
91
Q

What is the “Lemon Law”?

A

The Lemon Law is a state law designed to protect consumers who purchase defective vehicles.

It allows consumers to seek a refund or replacement for a vehicle that repeatedly fails to meet quality or performance standards.

92
Q

How often should Superhot leads be followed up?

A

Every other business day for 4 weeks.

93
Q

How often should Hot leads be followed up?

A

Every 3 business days for 4 weeks.

94
Q

How often should Warm leads be followed up?

A

Every 3 business days for 3 weeks.

95
Q

How often should Cold leads be followed up?

A

Once per week for 3 weeks.

96
Q

What is ACR?

A

Annual Credit Report

The annual credit report is a comprehensive record of your credit history maintained by the three major credit bureaus: Equifax, Experian, and TransUnion.

97
Q

What is ACRRF?

A

Annual Credit Report Request Form

98
Q

Define ATM?

A

Automated teller machine - an electronic banking device that allows customers to perform basic banking transactions without the need for a human teller.

99
Q

What is ATT?

A

Attorney Review

100
Q

What is BBB?

A

Better Business Bureau

The Better Business Bureau (BBB) is a private organization that provides the public with information on businesses and charities. It also handles consumer complaints about firms.

101
Q

What is BOA?

A

It is one of the largest banks in the United States, with operations in more than 35 countries worldwide.

102
Q

What is CC?

A

Credit Card

103
Q

Define CFPB.

A

Consumer Financial Protection Bureau

A federal agency in the United States responsible for regulating consumer financial products and services.

104
Q

Define CMDR

A

Certified Mail Delivery Receipt

A document that provides proof of mailing and delivery for a letter or package sent through the United States Postal Service’s (USPS) Certified Mail service.

105
Q

Define CMR

A

Certified Mail Receipt

A document that serves as proof of mailing for a letter or package sent through the United States Postal Service’s (USPS) Certified Mail service;

106
Q

What is CO?

A

Charge Off

Happens when a lender gives up on trying to collect a debt from a borrower and marks it in their records as a loss.

It’s like saying: “We’re not getting our money back, so let’s move on”

107
Q

What is CR?

A

Credit Report

108
Q

What is a CRA?

A

Credit Reporting Agency

109
Q

What is a DCA?

A

This is a debt collection agency.

A company that collects overdue debts on behalf of creditors or lenders.

110
Q

What is DEC?

A

DEC is the Deceased case type

111
Q

What is DL?

A

Dispute Letter

112
Q

What is DOB?

A

Date of Birth

113
Q

What is DVL and what it does?

A

Debt Validation Letter

A “Debt Validation Letter” is a formal request you send to a debt collector.

It asks the debt collector to prove that the debt they are trying to collect is actually yours and that they are legally allowed to collect it.

114
Q

What is an EFA and what does it do?

A

Extended Fraud Alert

A type of fraud alert that can be placed on a consumer’s credit report by a credit reporting agency if the consumer believes they are or have been a victim of identity theft.

It lasts for 7 years

115
Q

What is EOB and what does it do?

A

Explanation of Benefits

A statement that is typically provided by an insurance company to an individual who has received medical treatment or services;

116
Q

What is EQ?

A

Equifax

117
Q

What is EX?

A

Experian

118
Q

What is FA and what does it do?

A

First Advantage

First Advantage is a leading provider of background screening and identity verification services

119
Q

What is FTC and what does it do?

A

Federal Trade Comissions

an independent agency of the United States government that is responsible for protecting consumers and promoting competition in the marketplace,

120
Q

What is the FTCITR and why is it important?

A

FTC Identity Theft Report

A tool provided by the Federal Trade Commission (FTC) to help victims of identity theft and recover from the crime; also known as FTC Affidavit.

121
Q

What is IFA and what does it do?

A

Initial Fraud Alert

a free service provided by the three major credit reporting agencies
(Equifax, Experian, and TransUnion) to help protect consumers from identity theft;

122
Q

What would IIBK mean?

A

Included in Bankruptcy.

123
Q

What is JPMCB?

A

JP Morgan Chase Bank

124
Q

What is LLC?

A

Limited Liability Company

125
Q

What is LLP?

A

Limted Liability Partnership

126
Q

What is MZL?

A

Marcus Zelman Law, a partner law firm.

127
Q

What is OC?

A

Original Creditor
(the original entity that credited you)

128
Q

What is PC?

A

Prospective Client

129
Q

What is POA?

A

Proof of Address.

130
Q

What is POP?

A

Proof of payment.

131
Q

What is an RMC and what does it do?

A

Rental Management Company

A type of business that provides services to landlords and property owners for the management of their rental properties;

132
Q

What is SS?

A

Stein Saks, a partner law firm.

133
Q

What is an SSN and why is it important?

A

A unique nine-digit identification number issued by the Social Security Administration (SSA) to U.S. citizens, permanent residents, and some temporary residents;

134
Q

What is SRKP?

A

Salesforce Record-Keeping Protocol – the protocols we have in place whenever we use Salesforce.

135
Q

What is a TD?

A

Turndown.

136
Q

What is a TSC and what does it do?

A

Tennancy Screening Company

A company in the business of background screening potential tenants who wish to rent a property.

137
Q

What is TU?

A

TransUnion

138
Q

What is USPS?

A

United States Postal Services

139
Q

What does a ‘consistent story’ mean?

A

Visible from the start that this mostly a case for us?

140
Q

What does an ‘unclear story’ mean?

A

No description or not enough details, 50/50 case or not.

140
Q

What does an ‘inconsistent story’ mean?

A

Visible from the start that it si mostly not a case for us.

141
Q

What is the purpose of the Fair Credit Reporting Act (FCRA)?

A

The FCRA is a federal law enacted in 1970 to protect consumer privacy and ensure that credit reporting agencies (CRAs) maintain accurate and confidential information.

142
Q

What are the obligations of credit reporting agencies under the FCRA?

A

Credit reporting agencies are obligated to investigate and correct inaccurate or incomplete information in credit reports.

143
Q

Who enforces compliance with the FCRA?

A

The Federal Trade Commission (FTC) and private litigation, such as lawsuits brought by firms like Consumer Attorneys, enforce compliance with the FCRA.

144
Q

What rights does the FCRA give consumers?

A

The FCRA provides consumers with the right to access and dispute information on their credit reports.

145
Q

What is the role of Consumer Attorneys in relation to the FCRA?

A

Consumer Attorneys is a law firm that engages in private litigation to enforce compliance with the FCRA on behalf of consumers.

146
Q

What is a consumer report?

A

A consumer report is a collection of information about an individual used to make decisions about them, such as loan applications, employment, or insurance.

147
Q

What kind of information can be found in a consumer report?

A

Credit history (payment history, credit card balances, inquiries)
Employment history
Criminal records
Driving records
Medical history
Public records (like property ownership)

148
Q

Who gathers and maintains consumer report information?

A

Consumer reporting agencies (CRAs) gather and maintain this information from various sources, including public records, creditors, and other third parties.

149
Q

How are consumer reports used?

A

Various entities use consumer reports to assess risk and make decisions.

150
Q

Does the FCRA guarantee the complete accuracy of all information in a consumer report?

A

It doesn’t guarantee that every single piece of information is completely error-free.

151
Q

What is a credit report?

A

A credit report is a detailed record of an individual’s credit history.

152
Q

What kind of information is typically included in a credit report?

A
  1. Payment history on loans and credit cards
  2. Credit account information (types of accounts, credit limits)
    3, Outstanding debts
  3. Public records
153
Q

What is a credit score?

A

A credit score is a numerical representation of an individual’s creditworthiness.

154
Q

What factors are considered when calculating a credit score?

A
  1. Payment History
  2. Credit Utilization
  3. Length of Credit History
  4. Credit Mix
  5. Recent Credit Inquiries
155
Q

Who maintains credit reports?

A

Credit reports are maintained by credit reporting agencies (also known as credit bureaus), such as Equifax, Experian, and TransUnion.

156
Q

What is a background report?

A

A background report is a comprehensive document containing information about an individual’s personal and professional history.

157
Q

What kind of information might be included in a background report?

A
  1. Employment history
  2. Education
  3. Professional licenses
  4. Criminal records
  5. Driving records
  6. Credit history
  7. other personal information
158
Q

Who typically uses background reports?

A
  1. employers
  2. landlords
  3. other entities to assess an individual’s suitability for a job, tenancy
159
Q

What are some FCRA requirements that employers must follow when using background reports?

A
  1. Employers generally must obtain an individual’s consent before conducting a background check.
  2. They must also provide the individual with a copy of the report and an opportunity to dispute any inaccuracies before taking any adverse action based on the report.
160
Q

What is a credit score?

A

A credit score is a numerical representation of an individual’s creditworthiness, indicating the likelihood of them repaying1 borrowed money.

161
Q

What is the FICO credit score?

A

The FICO credit score is one of the most widely used credit scoring models, developed by the Fair Isaac Corporation.

162
Q

What are some key factors considered in the FICO credit score calculation?

A
  1. Payment history (35%)
  2. Amounts owed (30%)
  3. Length of credit history (15%)
  4. New credit (10%)
  5. Credit mix (10%).
163
Q

Can a few late payments completely ruin a credit score?

A

No, a few late payments may lower the score but won’t necessarily “ruin” it, especially if overall credit history is good.

164
Q

What types of negative information can impact payment history?

A

Charge-offs, collections, bankruptcy, and tax liens

165
Q

What is a tax lien?

A

A tax lien is a legal claim against the assets of an individual or business that fails to pay taxes owed to the government.

166
Q

What is a forbearance?

A

Forbearance is an option that allows borrowers to temporarily suspend or reduce their loan payments for a set period of time, typically up to 12 months. Interest will still accrue during the forbearance period, and it will be added to the loan balance

167
Q

What is a defferment?

A

Deferment is an option that allows borrowers to temporarily stop making payments or reduce their monthly payments for a set period, typically up to 3 years. Unlike forbearance, most types of loans will not accrue interest during the deferment period.

168
Q

What is an amortizing loan?

A

An amortizing loan is a type of loan where each payment made goes towards both the principal (the original amount borrowed) and the interest accrued on the loan.

169
Q

What is Innovis and when do we use it?

A

Innovis is a Credit Reporting Agency.

We usually need the Innovis Credit Report during IDT cases.

170
Q

What is Lexis Nexis?

A

LexisNexis is an American data analytics company headquartered in New York.

It offers data analytics and risk assessment tools for various industries, including insurance, financial services, and government.

171
Q

Define Statute of Limitations?

A

A statute prescribing a period of limitation for the bringing of actions of certain kinds

172
Q

What is a hot transfer and when is it done ?

A

This is a called transferred directly to the attorney.

Hot transfer a lead if they are BG and/or DEC, have a consistent story, and have a copy of
the report already available;

173
Q

Example of a materially misleading case.

A

John’s credit report accurately states that he had a 30-day late payment on his credit card account.

The date of the late payment and the account information are correctly reported.

The credit report does not indicate that this was a one-time occurrence in an otherwise perfect payment history.

174
Q

What is a delinquent account and what accounts and information about them are marking the account delinquent?

A

If you miss a payment due on your credit card, it would be delinquent.

Examples of account that might make the account delinquent:
1. Credit Cards
2. Mortgages
3. Autoloans
4. Student Loans

175
Q

What is a Housing Background Check?

A

Also known as a Tenance Screening.

Is used by landlords or property managers to assess potential tenants.

176
Q

What information is displayed on a House Background Check?

A
  1. Credit Report
  2. Criminal Report
  3. Eviction History
  4. Rental History
  5. Employment and Income verification.
  6. Other personal information.
177
Q

What is APR?

A

APR stands for Annual Percentage Rate and represents the annualized cost of borrowing money over the term of a loan - interest rate

178
Q

What is an installment account?

A

Installment credit accounts allow you to borrow a lump sum of money from a lender.

Borrowed funds are paid back in fixed amounts or “installments,” usually on a monthly basis.

179
Q

Examples of Installment Accounts

A
  1. Mortgages
  2. Autoloans
  3. Student Loans
  4. Personal Loans
180
Q

What is a revolving account?

A

Revolving credit accounts offer access to an ongoing line of credit.

You can borrow from this line as needed, so long as you don’t exceed the credit limit determined by your lender.

With a revolving credit account, you’re expected to regularly repay what you borrow.

181
Q

Example of Revolving Accounts.

A
  1. Credit Cards
182
Q

What is the difference between an auto loan and an auto lease?

A

Auto Loan: You buy the car and own it after you finish paying it off.

Auto Lease: You rent the car for a set time and then return it.

183
Q

What is the difference between a co-signer and an authorized user?

A

Co-signer: You’re responsible for the debt if the other person doesn’t pay.

Authorized user: You can use the card, but you’re not responsible for the debt.

184
Q

Can re-financing hurt credit score?

A

Refinancing will hurt your credit score a bit initially, but might actually help in the long run.

Refinancing can significantly lower your debt amount and/or your monthly payment, and lenders like to see both of those.

185
Q

What is a Straight Bankruptcy?

A

Chapter 7

186
Q

For how long does Bankruptcy stay on your file?

A

Chapter 7 bankruptcy: Up to 10 years from the filing date.
Chapter 13 bankruptcy: Up to 7 years from the filing date.

187
Q

If an eviction was filed, who should the consumer fight this decision with?

A

The court.
We cannot help the consumer.

188
Q

What is Credit Karma?

A

Credit Karma is a multinational personal finance company that offers a free credit and financial management platform.

189
Q

What are statutory damages?

A

Statutory damages are a type of damages awarded in a successful claim to compensate for an injury or loss

190
Q

What is an arbitration clause?

A

An arbitration clause establishes what will happen if conflicts arise between parties during the fulfillment of a contract in advance.

191
Q

What is arbitration?

A

Arbitration is a private and confidential Alternative Dispute Resolution (ADR) procedure that allows contractual disputes to be settled out of court.

192
Q

What is the difference between arbitration and litigation?

A

The main difference between arbitration and litigation is that arbitration can never be compelled. If both parties can’t agree to meet for arbitration or honor the third-party arbitrator’s decision, then arbitration cannot occur.

193
Q

Having a premium account with which CRA include an Arbitration clause in their Terms and Conditions?

A

Experian

194
Q

What are limited scope retainers?

A

Limited scope retainers allow a lawyer to provide limited services to a client, such as representing the client for only part of a legal matter.

195
Q

What is a Fingerprint Background Check?

A

A fingerprint background check is when an organization cross-references an applicant’s prints with a law enforcement database to determine if they have a criminal record?

196
Q

Right to a Free Report

A

Federal law requires each of the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion - to give you a free credit report every 12 months if you ask for it.

197
Q

What is pre-screening?

A

Some potential lenders and insurers can access portions of your credit report without your permission in order to decide whether to send you unsolicited offers for credit or insurance.

198
Q

Security Freeze

A

It essentially blocks access to your credit reports, making it very difficult for someone to open new accounts in your name?

199
Q

Opt-Out

A

To “opt-out” means to choose not to participate in something, or to withdraw from something you were previously involved in.

200
Q

Credit Repair

A

Credit repair consists of finding and fixing mistakes on your credit report to boost your score.

You can do credit repair on your own for free, but it can be time-consuming.

Credit repair companies can make this process easier by working on your behalf in exchange for a fee.

201
Q

Identity Restoration

A

dentity restoration is the process of helping someone who has been a victim of identity theft to recover their identity and financial standing

202
Q

Private Right of Action

A

A “right of action” is the legal right to sue someone in court to seek a remedy for a wrong or injury.

203
Q

Actual Damages

A

Actual damages are monetary compensation awarded to a plaintiff in a lawsuit to cover the real, quantifiable losses they suffered as a direct result of the defendant’s actions.

They aim to restore the plaintiff to the financial position they were in before the harm occurred.

204
Q

Punitive Damages

A

Punitive damages are extra money awarded to punish the person who did wrong and to stop them from doing it again.

205
Q

Class Action Lawsuit

A

A class action lawsuit is a lawsuit where a large group of people with similar claims sue a defendant together as one group.

206
Q

Garnishment

A

Garnishment is a legal process where a court orders a third party (like an employer or bank) to withhold money owed to someone (like wages or bank funds) to pay off a debt they owe to a creditor.

207
Q

Bona Fide Error Defense

A

Legal defense where someone argues they should not be held liable because the violation they committed was an unintentional, good-faith mistake, despite having reasonable procedures in place to avoid such errors.

208
Q

What are the requirements to place an extended fraud alert on your credit report?

A
  1. You must be a victim of identity theft.
  2. You must have filed an identity theft report with the Federal Trade Commission (FTC) or a police report.
209
Q

How long does an extended fraud alert remain on your credit report?

A

7 Years

209
Q

How can you place an extended fraud alert?

A
  1. Online
  2. Phone
  3. Mail
210
Q

Does an Extended Fraud Alert Affect Your Credit?

A

The presence or absence of an extended fraud alert on your credit report has no effect at all on your credit scores or credit standing.

But because fraud alerts ask creditors to verify your identity, they can sometimes hinder your ability to be instantly approved for a new credit account at, say, a retail store counter.

Questions (7 decks)

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