San Francisco Bankruptcy Lawyer Blog

The Fair and Accurate Credit Transactions Act of 2003 (FACTA) allows consumers to annually request a free credit report from each of the consumer credit reporting companies (Equifax, Experian and TransUnion), and creates compliance obligations to reduce identity theft.

FACTA also amended the Fair Credit Reporting Act (FCRA) to require federal agencies to implement rules to increase accuracy, integrity of information that furnishers provide to consumer reporting agencies.

On July 1, 2009, the Federal Trade Commission (FTC), Federal Reserve Board, and the Federal Deposit Insurance Corporation issued a joint Final Rule effective July 1, 2010 that imposes regulatory requirements on businesses, including employers, that provide consumer information to consumer reporting agencies.

A "furnisher" may be a bank or credit card company that provides credit-related information about a consumer to the three major credit bureaus, a reference checking provider for employers, or employers that provide payroll and other employee-related information to consumer reporting agencies in connection with outsourced services, such as unemployment processing and reference checking.

Under the FCRA, employers that are required to investigate disputes the current or former employee presents directly to the consumer reporting agency to relay to the employer. If the employer discovers that inaccurate or incomplete information about an employee was furnished to a consumer reporting agency, the employer has a duty to provide any recipient with complete and accurate information. The Final Rule allows an employee to challenge the accuracy or completeness of information contained in a consumer report by contacting a current or prior employer.

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New data from the credit bureau TransUnion indicates a clear link between credit card delinquency rates and foreclosure rates nationwide. The results highlight both economic distress and the ways in which individual consumers seem to be coping with the threat of bankruptcy.

The good news is that credit card delinquencies were down six percent during the third quarter of this year, according to an analysis of the data at eCreditDaily. Delinquencies are highest in Nevada, Florida, Arizona and California (in that order). Together, the website notes, those four states also accounted for 43 percent of all foreclosures nationwide during the same period. TransUnion also reports a drop in the national savings rate during the same period, even as the average total credit card debt held by US households also edged down slightly. Taken together, all of this data implies that many people are focusing on paying down debt in a bid to stay afloat financially.

When faced with financial difficulties consultation with a Bay Area bankruptcy lawyer can be a useful step toward getting your affairs in order. Many consumers think of a bankruptcy lawyer as someone to file court papers and help with a financial reorganization plan, but a full-service Walnut Creek bankruptcy law firm can also offer advice on loan modifications and with the renegotiation of credit card debt and other ways to avoid a California bankruptcy.

At a time when consumers are being more cautious and shopping around for the best deals, taking the time to consider all of your financial options makes more sense than ever.

eCreditDaily: Credit Card Delinquencies Highest in Foreclosure Hit States