馃攳
Banks break the law when they report you as delinquent during COVID-19. - YouTube
Channel: unknown
[0]
In this video I'll be talking about the Cares
Act and how it could affect your credit reporting.
[7]
Hi, I'm consumer protection attorney Bill
Clanton and I've helped hundreds of consumers
[12]
deal with debt collection, credit reporting
and all kinds of other consumer related problems.
[18]
This video is going to cover the Cares Act
and how it is going to affect and can affect
[25]
and will affect credit reporting.
[29]
The latest news this morning was that 26 million
people have lost their jobs in the last five
[34]
weeks.
[35]
That's one in six people who were employed
before this COVID crisis started.
[41]
So there's going to be lots and lots of unemployed
people who need lots of help.
[46]
The Cares Act was passed to help people out
and in a number of different ways.
[53]
But at the end of this video, you'll understand
how the Cares Act can help you out with your
[59]
credit report during this time.
[63]
So the Cares Act allows...
[66]
It applies to furnishers.
[68]
Now in the context of the Fair Credit Reporting
Act, a furnisher is a bank, creditor or other
[73]
lender that provides information to the credit
reporting agencies.
[77]
Credit reporting agencies then report all
the information provided by furnishers.
[85]
When you dispute information with a credit
reporting agency, then they forward your dispute
[90]
onto the furnishers who do investigation.
[93]
So there's a relationship there between furnishers
and credit reporting agencies.
[99]
The Cares Act applies to furnishers.
[102]
Now it says that if you make a deal, you reach
what's called an accommodation with one of
[109]
your creditors, then they cannot report you
as anything other than current to the credit
[115]
reporting agencies.
[117]
So what kind of accommodations are covered?
[119]
Deferral of one or more payments, making it
a partial payment to forebear, an agreement
[128]
to forebear any delinquent payments, an agreement
to modify a loan or contract or any other
[135]
assistance or relief granted to you.
[140]
It's broad in scope.
[142]
If you have one of those deals with a furnisher,
with your bank or mortgage lender or the bank
[148]
holding your note or any other creditor, then
they cannot report you as anything other than
[154]
current.
[157]
But the law also says that if you were not
current before this COVID crisis, then they
[166]
can report you as not current.
[168]
If your account was charged off before this
COVID crisis, then they can continue to report
[174]
it as charged off.
[176]
But if you were current when this started
and you made a deal with your bank or other
[185]
furnisher data, lender, bank or other creditor,
then they cannot report you as anything other
[192]
than current.
[195]
This is great news, especially for the 26
million people who have recently lost their
[200]
jobs.
[203]
This will not...
[206]
It'll keep your credit score from lowering
while everybody gets this thing, this mess
[212]
sorted out.
[214]
This is a good thing.
[215]
It means you can continue to apply for and
get credit on better terms.
[220]
Having a higher credit score means you get
a lower interest rate.
[226]
But here's the thing.
[230]
Lots of furnishers, lots of banks are, well,
not always 100% honest, and they're probably
[239]
overwhelmed with 26 million claims and applications
for relief.
[245]
So what do you need to do to ensure that your
credit report is reported accurately, reported
[253]
in line with the Cares Act, that you're reporting
as current when you've asked for a deferral
[259]
or partial payment or forbearance or loan
mod?
[262]
Well, you need to get this in writing.
[267]
If you have a telephone conversation, follow
up with a email or a text message that says,
[273]
"Per our conversation on this date, we have
agreed to forebear, modify, accept a partial
[280]
payment or give me some other relief.
[283]
If this is not our agreement, please let me
know as soon as possible."
[288]
You can mail them a letter that has the same
language, but get something in writing.
[294]
If they don't give you something in writing,
send that letter or email or text message
[299]
so that you have some proof that you entered
into a deal with them.
[305]
If you have applied for some kind of accommodation
and a furnisher is reporting your account
[313]
as other than current, then I'd be happy to
talk to you about whether or not you can make
[317]
some kind of a claim against them.
[319]
My number is 210-226-0800.
[322]
I'd be happy to talk to you free of charge
and see what we can do.
[330]
Again, 210-226-0800 and thanks for watching.
Most Recent Videos:
You can go back to the homepage right here: Homepage