University of Phoenix Material

Credit Protection and Identity Theft

Directions

Refer to:
Building a Better Credit Report on the Federal Trade Commission’s site: www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
Identity Theft resource center on the Federal Trade Commission’s site: www.ftc.gov/bcp/edu/microsites/idtheft/consumers/deter.html.

Provide answers to three of the following questions based on your readings and your personal experiences. Answers should be 100-to 150-words each.

1. If you find errors on your credit report, what steps would you take to correct them? Take time to collect all the information you'll need to prove your case, such as copies of canceled checks and creditor statements, and much more. The more the better. All paper work you can come up with is needed. Put everything in writing. I need to have proper document for everything. Contact the bureau whose report you believe is not accurate, give them all your info so that they can verify your information, if you’ve moved, give them your previous address if necessary. Write them as if you were writing a potential employer. Make sure to include what you are disuting, and write it out as clear as possible. Attach any documents, and have all transaction numbers and account numbers. Last but not least, don’t forget to sign the letter.

2. There are many organizations that claim they will repair your credit for a fee. From your readings, should someone use a credit repair service? Why or why not? What are some actions these organizations can take that should be a red flag? I personally would not use a credit repair company to help fix my credit when everything I need to know is open for you to do it your self. All the contacts to every bureau you owe is right there for you, and majority of the time if you owe a company, if you call and settle it, you will pay a lot less than what you owe. One creditor says I owe $965 but will settle for $500. They do not do anything that anyone else can do. You are basically just paying a company to be the middle man.

3. Have you, a family member, or a friend been a victim of identity theft? How did it happen? Describe the resolution process- ex. how much time did it take, what credit damage was corrected? My sister was actually a victim of identify theft. Someone was able to get her card info by sitting outside the mall and if you had a credit card they were able to get all your info if you came within 100 feet of them. So now she keeps her cards in an metal wallet. They took out $4,000 out of her account and used her credit card info to go to Amsterdam. Her credit card company is who actually called her, she didn’t even notice. It took a couple weeks and A LOT of paper work before they could repair the damage and return ALL OF HER MONEY.

4. Using the FTC site, what can you do to minimize the chance of your identity getting stolen? Keeping your important papers secure at all times is the number one thing. Never walk around with your social sercurity in your purse or wallet or even your car. When given the opportunity, shred documents with social sercurity or any other sensitive information before you put it in the trash. Also to reduce the risk, constantly check on your credit report to make sure you’re not a victim of theft, or just to make sure that you’re identity isn’t getting mixed up with someone with the same name as you. That actually happens a lot, so always check your credit score often.

Post the Credit Protection and Identity Theft worksheet as a Microsoft® Word attachment.