The biggest news this week comes on the heels of a New York Times story about credit card companies sending consumers’ balances to collections agencies and suing borrowers despite not properly vetting the cases. It’s the new robo-signing scandal and it’s affecting a large group of Americans.
Thought robo-signing was relegated to the foreclosure glut? Think again.
Robo-testimony is the new scandal coming out in the wake of the Great Recession, and it’s putting a lot of consumers through a lot of turmoil.
Essentially, credit card companies are filing lawsuits without ensuring the information on the documents is accurate. The judges who oversee these cases say roughly 90% of the lawsuits filed are flawed in some way.
The minutes from the most recent Federal Open Market Committee show that another round of economic easing is on the way, but officials aren’t quite ready to pull the trigger just yet.
The big question discussed at the meeting was how the economic stimulus would come about. Another bond-buying program was mentioned, as well as other policy tools like interest rates. The committee decided not to take any action, however.
In a piece on an interesting credit repair strategy, Credit.com’s Community Manager Barry Paperno looked at whether consumers can try to game the credit score system and add some positive accounts to their credit files in order to “dilute” the bad accounts from their past.
His verdict: “To help with your score’s recovery, my recommendation is that you start adding positive information to your credit report and not worry about trying to get the remaining collections removed (unless they truly don’t belong to you). You can do this by obtaining another secured credit card or two, or by being added as an authorized user on the credit card account of someone you trust.”
Image: NS Newsflash, via Flickr