Save your credit

You are entitled by law to correct any inaccurate information that appears in your credit bureau file. If a creditor rejects your application because of negative information in your credit bureau report, it must identify the credit bureau involved. At your request, the credit bureau must disclose the contents of your credit file. If you act within 30 days of being turned down, there is no charge for this service.

Check to see whether the information reported on you is accurate and complete. You have the right, under the Fair Credit Reporting Act, to dispute the completeness or accuracy of any information in your report. When you do so, it will help if you tell the credit bureau, in writing, why you think the information is not correct. Unless your dispute is frivolous or irrelevant, the credit bureau then must reinvestigate the matter.

If the credit bureau cannot verify the disputed information, it must delete the information from your report. If you disagree with the results of the reinvestigation, you must write a brief statement explaining your side. The information you provide becomes part of your credit bureau report.

Don’t be misled by ads aimed at people with bad credit histories, judgments or bankruptcies. Promises to “repair” or “clean up” a bad credit history can almost never be kept.

Automobile loans present special problems. Most automobile financing agreements permit your creditor to repossess your car any time that you are in default on your payments. Try to solve the problem with your creditor when you realize you will not be able to meet your payments. It may be better to sell the car yourself and pay off your debt than to incur the added cost of repossession.

If you are having trouble paying your bills, you may be tempted to turn to a company that claims to offer assistance in solving debt problems. Such businesses may offer debt consolidation loans, debt counseling or debt reorganization plans that are “guaranteed” to stop creditors’ collection efforts. Before signing up with such a business, investigate it thoroughly. Do not rely on oral promises that do not appear in your contract. Also, Northeast COMBAT may be able to tell you whether other consumers have registered complaints about the business.

Consumers who turn to such businesses for help sometimes encounter additional problems. For example, debt consolidation or other large short-term loans may have high hidden costs and may require your home as collateral.

If you need help in dealing with your debts, you may want to contact Consumer Credit Counseling Services, a non-profit organization. CCCS counselors will try to arrange a repayment plan that is acceptable to you and your creditors. They also will help you set up a realistic budget and plan future expenses. These services are offered at little or no charge to you. If you wish to get in touch with CCCS, write Northeast COMBAT, Box 1183, Bangor 04402-1183, requesting that information. Please enclose a stamped, self-addressed envelope.

Consumer Forum is a collaborative effort of the Bangor Daily News and Northeast COMBAT. Send your questions to Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329. COMBAT is a membership organization with basic dues of $10 a year. For membership information write to the above address. Please enclose a large, stamped, self-addressed envelope.