What is a Credit Freeze and should I use it?
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Steps to Take if You Have Been a Victim of Identity Theft
Identity thieves are opportunistic and exploit vulnerabilities in individuals’ personal information security practices. Identity theft is more than a simple inconvenience. It’s a crime that can seriously complicate your life—potentially costing you time, money and opportunities.
According to the Federal Trade Commission (FTC) the number of reported cases of identity fraud in 2020 doubled in the United States. Each piece of information or account they gain access to can help them steal more. Unfortunately, signs of fraud can take weeks or months to reveal themselves, leaving us even more vulnerable.
Here are the best steps you can take if you have become a victim of identity theft:
- Check for inaccuracies from Your credit reports and make a list of any suspicious information you discover. You will need these details later when you work on fixing your credit later.
- Change all your account PINs and passwords.
- Review your mail & credit card statements to confirm none of your accounts have been hijacked.
- Place a fraud alert on your credit report. When a fraud alert is on your credit report, lenders must confirm your identity (usually via phone) before they can open new accounts in your name.
- Freeze your credit report. When you freeze your credit report, you take it out of circulation. So, if someone applies for credit your name, the lender will not be able to access your credit report. As a result, the application for credit will be denied.
- Contact your creditors and ask them to freeze the compromised accounts and to dispute fraudulent charges. Federal laws like the Fair Credit Billing Act and the Electronic Funds Transfer Act can limit your liability for bogus charges on your credit cards or debit cards. The trick is to report the theft in a timely manner. Otherwise, you could be responsible for some or perhaps all of the unauthorized purchases.
- The final step in this process is to fix your credit. Start with filing an identity theft report. The easiest way to create an identity theft report is to visit IdentityTheft.gov. Once you have this report you will need to contact the 3 credit reporting agencies and ask them to block the account(s) from your credit report within four business days. They should suppress any fraudulent accounts.
If your case of identity theft has not been resolved to your satisfaction or you need help in this process, email us at erik@thdcreditconsulting.com or call us at 1-800-822-7120. THD Credit can help.
-Erik Kaplan
Are you liable for your spouse’s debt?
Whether you are liable for your spouse’s debts depends on factors such as; if you live in a common-law state or a community property state and what kind of debt it is.
Common-Law State or a Community Property State
The IRS says most states operate under what is called common law. If a married couple opens a joint account or gets a shared credit card, they will both be responsible for paying back the debt.
In common law states, you’re usually only liable for credit card debt if the obligation is in your name. So, if the credit card is only in your spouse’s name, you’re typically not liable for that debt. Additionally, assets acquired by one member of a married couple are typically deemed to belong to that person, unless they were put in the names of both.
The laws are very different in America’s nine community property states, where the laws require that any property acquired, debt accumulated, and income earned during the marriage is the property or debt of each spouse.
What Kind of Debt is It?
In most states, you are not legally responsible for bills racked up before getting married. However, if you and your spouse open a joint account or get a shared credit card, you both will be responsible for paying back the debt. Even if the spending was done solely by your spouse.
Similarly, If you’re the cosigner on a loan for your spouse, your credit score will be hurt if your partner misses a payment. That’s because when you cosign for a loan, you’re signing on to be equally responsible for the debt. If they miss payments, the debtor could come after you for payments. The same situation applies if you and your spouse use a joint credit card.
In Common law states, property can be individually owned unless both names are on the contract. However, in community property states, assets and liabilities that either person acquires during the marriage become the joint property of both spouses.
There are some exceptions for necessary joint household expenses. Debt that was racked up for things like child care, housing or food must be shared by both parties, even if a joint account was not created.
If you have any questions at all please call us at (800) 822-7120.
-Erik Kaplan
WHY DEBT COLLECTORS CAN NOW TEXT OR DM YOU!
A recent change in rules by the US Consumer Financial Protection Bureau (CFPB) allows debt collectors to contact you by direct message on social networks, email, or text message.
No one likes debt collector calls and emails or text messages most certainly will not be welcomed, especially when you have no debts to collect. You could block the number used for text messages, but whether it’s a scam text or a legitimate debt collector, they can always contact you from yet another phone number.
There is some good news here… the rules do require debt collectors to provide you a way to opt-out of further messages, whether from email, text message, or direct message. You might have to call or email the debt collector back in order to opt-out as they are not being mandated to have to provide that in text or social networks directly.
If you have any questions about this ruling or if THD Credit can be of assistance to you in anyway – call us at 800- 822-7120. We are here to help!
-Erik Kaplan
A Special 50% Discount for You
With the increase in consumer credit complaints – with issues ranging from credit report mistakes to problems related to debt collection, credit cards or mortgages, it is more important than ever to monitor your credit report.
According to the Federal Consumer Program U.S. PIRG, the number of complaints during the pandemic has surged by 86 percent. In fact, the credit reporting complaints has been driven by nearly double the number of complaints about incorrect information on credit reports.
The accuracy of your credit reports is important because lenders determine how much to charge you for a loan or credit card based on a credit score derived from your report. In addition, if you are looking for work, potential employers might decide whether or not to hire you based on your credit report.
The best part of my job is helping people, and nothing makes me happier than helping someone qualify for a loan, get lower interest rates, an increased line of credit or a healthier credit standing.
If you or one of your clients, friends or family members need help with credit repair, in any way – please email me at erik@thdcreditconsulting.com We would like to offer 50% off of our fees to anyone we can help during this challenging time.
-Erik Kaplan