A new lawsuit, filed in a California federal court seeking class action status, accuses credit score company Experian of falsely marketing its credit report and credit monitoring services.
The Red Tape Chronicles reports that California consumers are often being defrauded in their search for a credit report. The suit accuses Experian of intentionally confusing costumers through false advertising and failure to provide customers with the service they pay for. Experian operates the popular sites FreeCreditReport.com and FreeCreditScore.com.
"It's a classic consumer fraud case," said David Woodward, one of the lawyers who filed the case. "The law is designed to prohibit exactly this kind of egregious advertising practice. ... The defendant is profiting from deception."
A Modesto bankruptcy lawyer should be quick to inform you that many aspects can affect your credit score: credit cards, bad debt, medical bills, foreclosures. By law, you are allowed one free report from each credit report agency each year. As freecreditreport.com is not a bad service for those who are trying to rehab their credit, it is also not a necessary service.
Late payments have trashed the credit ratings of most consumers by the time they seek bankruptcy protection. In many cases, they may also have been preyed upon by credit counseling or debt management services. Consulting a bankruptcy attorney is the best course of action for getting your financial house in order.
Credit report companies, including TransUnion, Equifax and Experian, are producing credit scores with the formula from FICO. Those scores are then reported to lenders. The federal suit, filed against Experian, accuses the company of fraud because the Experian PLUS score is not the same score shown to lenders.
The Federal Foundation for Credit Counseling offers answers to some FAQ's about bankruptcy and debt:
-Can I be terminated from my job for filing for bankruptcy? The Bankruptcy Code typically prohibits termination, or discrimination, because an employee has not paid a discharged debt, filed a bankruptcy case or has been insolvent before the case was filed.
-Is professional credit counseling for me and worthwhile? If your credit is going down the tubes and you're looking to try and solve the problem, then professional credit counseling could be for you. Professional credit counselors can offer you knowledgeable advice on how to repair your credit. They can also provide you with help because they are familiar with what kinds of habits and patterns to look for in a suffering client. However, you may also expose yourself to predatory companies that charge high fees for "counseling services." And if your overall problem is an insurmountable level of debt, these agencies may not be able to help you get your financial house in order.
-Am I able to keep my credit cards after filing for bankruptcy? Typically no, unless you don't file bankruptcy on a given card. Then you may keep the card -- however the company may close the account anyway. Typically, clients are able to reestablish a good payment history through secured and non-secured credit cards within a few years.
-Will I need to hire an attorney to file for bankruptcy? While you are not required to be represented by an attorney, is it highly recommended as they can provide you with advice to help you understand your rights and the consequences of your bankruptcy case.
If you or a loved one needs to speak to a bankruptcy attorney in Modesto, contact the Law Offices of Ben Roberts for a free and confidential consultation to discuss your rights. Call (209) 522-7500.
