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'Re-aging' accounts illegal

[published on Tue, Mar 22, 2005]
Q: I've been working at cleaning up my credit report, but a collection agency keeps changing the date on my oldest debts so they look more recent than they really are.

These debts are all more than seven years old and should have fallen off my report by now. But they're still there, depressing my credit score. What can I do?

A: Changing delinquency dates on old debts is called "re-aging" and it is illegal.

One collection agency, NCO Group, recently was fined $1.5 million for the practice.

Your first step is to write a letter to the credit bureaus that are reporting the inaccurate information. Make it clear the collection agency has illegally re-aged the accounts and ask that the accounts be deleted from your files.

Send this, and all other correspondence about the matter, by certified mail, return receipt requested. You should keep a good paper trail.

Unfortunately, the bureaus might make only a cursory check with the collection agency, which probably will insist the information is accurate. Then, you will need to dispute the accounts directly with the collector, pointing out that re-aging is illegal and insisting the agency provide the correct delinquency dates to the bureaus.

Debt expert Gerri Detweiler recommended sending copies of your letter to the Federal Trade Commission, your state's attorney general, your U.S. senators and congressional representative and the Better Business Bureau in the city where the collection agency is located.

The collection agency "may decide they don't want any more trouble and resolve it for her," said Detweiler, founder of StopDebtCollectorsCold.com. "If not, she [the reader] will need an attorney."

Paying the old debt probably would make matters worse because it would make the delinquencies seem even more recent to the FICO credit scoring formula most lenders use.

* Liz Pulliam Weston, author of "Your Credit Score: How to Fix, Improve and Protect the 3-Digit Number That Shapes Your Financial Future," writes a consumer finance column. Questions can be sent to her at 3940 Laurel Canyon Blvd. No. 238, Studio City, Calif, 91604 or via her World Wide Web site at www.lizweston.com.

Answer the Phone: Your Identity is on the Line

Beverly Hills, CA -- (ArriveNet - May 06, 2005) -- There hasn't been much good news in the battle against identity theft lately, with fraudsters staying one step ahead of the game. But don't panic, our old friend the telephone has come to the rescue.

We're all aware of the problem of identity theft, but did you know that your local pizza chain has had a solution for years? You recognize it as the system that prevents little Johnny from having twenty pizzas delivered to your door at midnight: the pizza chain calls you immediately after the order is placed to verify the validity of the order. Because little Johnny is afraid to be caught, he'll think twice about causing this pizza-related havoc.

TeleSign's patent-pending verification system has transferred this pizza concept to the high-tech world. It works like this: after filling out a form on a website, the user is prompted to enter his phone number. A robotic system then places a call to that number and speaks aloud a unique three digit code. Once that code is entered into the website, the authentication is complete. This system can be implemented at any point on a website: at registration, purchase, a specific time interval, or at the request of a user.

Email verification is the current standard for user authentication, but email may end up filtered, junked, bulked, or trashed. Because of spam, viruses, and phishing, email filtering has become so aggressive that even legitimate emails don't reach the inbox. But a telephone call cannot be stopped, making this the perfect time for the introduction of TeleSign’s solution.

The future of ecommerce is threatened by rampant fraud and lack of trust. TeleSign will force anonymous users to expose their faces by revealing their working phone numbers.

To try an interactive demo, visit (http://www.telesign.com/demo2/demo.asp) and have your phone ready.

For more information about TeleSign’s products and services, visit (http://www.telesign.com/demo2/) or email press2@telesign.com.

About TeleSign Corp.
TeleSign is a leader in innovative internet security solutions and provider of intelligent telephone-based verification solutions for any entity conducting business online where trust is essential and where fraud is a concern. TeleSign’s patent-pending Verification System provides a critical layer of security for the e-commerce world and is a proven deterrent against ill-intentioned web users. The company’s first product, the TeleSign Verification System, blends the latest internet, security and telephony technologies into a powerful new tool to combat fraud and enhance trust in e-business.

TeleSign Corp. seeks to provide simplified solutions for any company conducting business online where trust is essential and where fraud is a concern. TeleSign’s patent-pending Verification System provides a critical layer of security for the e-commerce world and is a proven deterrent against ill-intentioned web users. TeleSign’s Verification System is able to legitimize a web user’s claimed identification at a miniscule cost and with little inconvenience to all parties involved.

TeleSign’s Verification System is based upon the premise that ill-intentioned web users hesitate to disclose their working phone numbers. By placing a computer-generated telephone call coupled with a unique security code, we insist that a web user provide a legitimate telephone number or be rooted out. The company’s first product, the TeleSign Verification System, blends the latest internet, security and telephony technologies into a powerful new tool to combat fraud in e-commerce.

Visit http://www.telesign.com/demo2/ or call 310-276-5900 for more information.

TeleSign Corporation
Contact: Sam Gonen
Telephone: (310) 276-7843
Email: press2@telesign.com