Get to know these alternate credit bureaus

Most adults in the United States are familiar with Equifax, Trans Union and Experian. These are the "Big 3" credit bureaus in the United States.  In the consumer law profession, we call credit bureaus "Credit Reporting Agencies", or CRAs for short, because that is the term used in the Fair Credit Reporting Act. 

Most people don't know that there are man more consumer reporting agencies other than the Big 3.  One of them, Innovis, is trying to catch up to the Big 3, and I have heard the term "Big 4" to include Innovis. 

Most of the alternate credit reporting agencies have a niche specialty, for example focusing on rent history as a tool for landlords to screen tenants.  Rental bureaus in clude Tenant Data Services and Corelogic Saferent.  Bureaus relating to acceptance of checks and screening for opening of bank accounts include Telecheck, Chexsystems and Certegy Credit Services. 

Linked Here is a table of alternative credit bureaus at Wallethub.com.  You should not consider this list to be exclusive though.

The most important thing to remember when dealing with special purpose credit bureaus is that, for the most part, they have to comply with all the laws and regulations concerning credit reporting that apply to the Big 3.  This means that you should be entitled to a free annual report upon request, you need to be notified when data from the bureau is used to deny you credit or insurance, or if you are charged more because of the data.  You have the right to dispute inaccurate information in your credit file, and the CRA has the duty to conduct a reasonable inquiry upon receiving a dispute.

You have special rights when it comes to reports used for employment screening ("investigative reports" under the FCRA).  These rights include the right to be told in advance and in writing that an investigative report will be done, and to be notified of your rights to dispute the results of the investigative report.  Prospective employers often violate these provisions.   Sometimes landlords commission what is in fact an investigative report. In these cases special procedures must be followed as well. 

Lately we have been investigating complaints from former auto dealers that information from a business database the "KO Book" has been used to screen them from jobs in the auto industry.  Our working theory is that to use the business database in this way violates the Fair Credit Reporting Act, and perhaps the database publisher and the prospective employer are liable for misuse of the information.  If you have been denied employment due to the KO Book, please contact me. 

CFPB fines Pension Assignment Scam Honcho ONE DOLLAR

The Consumer Financial Protection Bureau, under Trump appointee Mick Mulvaney has virtually abandoned it's consumer protection role. Never has that been more apparent than the agency fining Mark Corbett, the man behind a number of pension assignment scam companies, the whopping sum of $1.00.  That's one whole dollar. 

With the neutering of the CFPB, it is clear that the Trump administration thinks that pensioners, including military pensioners, should just be money donors to all fast-talking scam operators. 

If you find yourself the victim of a pension assignment scam, feel free to call my office.  We may be able to help you if you are a pensioner who has assigned a piece of your pension. If you invested in a pension obligation, we MIGHT be able to help you, but it is a tougher case.  Once the scammers have implemented their exit strategy, we really have to look at intermediaries, like the life insurance agents who sell the pension annuity, because these obligations generally are illegal securities. 

When looking up stuff for this post, I found a complaint from a lawsuit filed in 2017 in USDC South Carolina, Lyons et al vs BAIC, Inc., et al, 6:17-cv-02362-MGL.  (A Pacer.gov search showed that this case is still open, with 149 documents having been filed in the case so far.) I found a number of things interesting in this complaint.  First, one of the atttorneys for the plaintiff works for the Jones Day lawfirm. This is a big law firm that consumer advocate attoneys usually see on the other side of their cases, because Jones Day represents credit reporting agencies and other corporate defendants.  Secondly, the group of defendants they sued - listed below. 

BAIC, Inc., VFG, Inc, (f/k/a Voyager Financial Group), SoBell Ridge Corp., Bradling Financial Group, Veterans Benefit Leverage, Strategic Marketing Innovators, Inc., Performance Arbitrage Company, , Andrew Gamber, Mark Corbett, Candy KernFuller, and Upstate Law Group,

I filed a suit in 2015 against Upstate Law Group, LLC on behalf of a client in 2015 based on their collection activities on behalf of a buyer of a pension security.  At that time the firm's defense was based on the isolated nature of this collection effort.   I didn't give that argument much credence then, and I would give it none today.

If you get any collection correspondence from Upstate Law Group, LLC on behalf of any pension assignee, please call my office. We may be able to help you bring an action for damages even if you don't pay them any money.