Friday, August 18, 2017

Has a Company Been Damaging Your Credit Report and Scores?

By Daniel Sater – Nationally Recognized Credit Expert & Credit Expert Witness

In repairing your credit, you may need more that a Credit Repair service. You might be better served by having a Credit Expert Witness on your side as well. It will give you the best of both world. The more tools that a credit expert has in his/her tool belt, the more likely will be your success.

If a creditor, collection agency or the credit bureaus break the law, and then fail to correct the error, they can be brought into court. Having someone who not only knows about credit scoring and credit repair but about the credit damage inaccurate reporting does can be a valuable tool. At this point you need a good Lawyer, and, a Credit Expert Witness.

Tactics Used by the Credit Bureaus
One of the problems in repairing credit is the attitude of the credit bureaus. They will delay investigating your claims as long as they can, to slow down the process, and to make you so discouraged that you will just go away.

They really don’t care if the information reported is wrong and hurting you. As a matter of fact, the credit bureaus benefit from you having a lower credit score than you deserve. You see, they are really a data company. They sell data on groups of people that lenders use to market to consumers. The data and scores they sell tells the lenders what the performance risk of granting loans or extending credit.

If the scores are skewed showing you are a greater risk that you really are, they look good to their subscribers. Lenders price based on the risk of default for a specific group of people. If a consumer has a loan go bad, the lenders make a lot more money. Everyone is happy…except you of course.

Collection Agencies and Lenders aren’t any better.
Some Collection Agencies even fail to do an investigation because it takes time and they can’t be bothered to investigate if the information is accurate or not. I know one owner of a large collection agency who came in on Monday morning and just sent back to the bureaus that everything was verified as correct without checking on anything. As for some lenders, their mindset is, that if it shows in their computer, it has to be correct, and offer little help sometimes in correcting information that is being reported.

Having a Credit Expert Witness on Your Side
This is where a Credit Expert Witness comes in. As a Credit Expert Witness, I have helped companies from getting hit with excessive penalties in court, and helped individuals show the damage to their credit that was unjustly caused by companies that failed to report the account correctly. I just recently had a homeowner suffer through eight years of misreporting by a mortgage lender. When the final decision comes down on the damages, I imagine he could see an award of $500,000 to $700,000.

I have seen awards as high as $18,000,000 against a credit bureau causing unnecessary damage to a consumer credit report for over two years of misreporting, having failed to do a proper re-investigation.

Having someone in your corner who is not only a true Credit Expert, but a Credit Expert Witness can greatly benefit you and help your attorney make the best case for damages.
For more information call or email:
Credit Scoring Advisor Blog – Daniel Sater - Nationally Recognized Credit Expert & Credit Expert Witness

Thursday, May 18, 2017

Changes are Coming to Your Credit Scores

Introducing VantageScore 4.0
Billed as “Cutting-edge technological advancements to deliver unmatched credit scoring accuracy” 

Beginning September 24, 2016. Fannie Mae underwriting process required TRENDED CREDIT DATA to be reported on credit reports.This was designed to better understand Consumer Behavior and more accurately Predict Risk.  
Trended Data is only being used by Fannie Mae and now Freddie Mac to better define consumer risk on Mortgage Loans. Other lenders are NOT using this Trended Data to make credit decisions and Trended Data is not being scored in the FICO and VantageScore scoring models currently.

Changes are Coming
This may all change this fall!  VantageScore in releasing a new version in the Fall of 2017 named VantageScore 4.0, in an effort to get more lenders to use their scoring model instead of using the FICO scoring models, especially by the Mortgage Industries. This will be sold as a better, and more accurate risk model for ALL lenders. 
This is based on the analysis that consumers with balances on their credit cards who pay minimum payments or who pay more but with an increasing balance are 3 to 5 times riskier that Transactional borrowers who pay off the balances each month. A consumer with decreasing balance will fair somewhere in the middle. 
This will potentially affect an ability to get credit limit increases, and, will increase lender's profitability. It may make it harder to get loans or, approval for new credit if you carry hefty balances, especially if they show that the balances are increasing.

New Rules for Reporting and Scoring
  • May eliminate medical collections accounts, tax liens, and public records.
  • Penalizes unpaid medical collections less than other types of unpaid collections,
  • Ignores unpaid medical collections less than six months old
  • Paid collections (including paid medical collections) are excluded in the VantageScore 4.0 model
  • 4.0 model leveraged machine learning techniques to better score consumers with sparse credit histories (allow an additional 30 – 35 Million Consumers to have credit scores)

At Credit Scoring Advisor we are the experts, specializing in Rapid Credit Repair for our clients. Our founder, Daniel Sater is a Nationally Recognized Credit Expert, Author, Public Speaker, and Educator. In addition, Dan trains and Coaches numerous Credit Repair Companies across the country, he is a Certified C.E. Instructor for the Real Estate Industry for their continuing education credit. Mr. Sater is the Chairman of the Education Committee for NACSO – the trade association for the Credit Repair Industry.  His last book, "The Top 20 Toxic Credit Mistakes" is available on the Credit Scoring Advisor website and Amazon Kindle. He can be reached at 631-465-9565 or by e-mail at
Better Knowledge – Better Tactics –Better Results