Lauren Smith: Denise tell us, what is your book about? 

Give Me Back My Credit

Lauren Smith: Why did you write it? 

Denise Richardson: Give Me Back My Credit was born out of a combination of overwhelming frustration, unbridled passion and an overpowering sense of obligation to use my story to make a difference. I have always believed in the old adage that “everything happens for a reason” and to not use my story to try to make a difference, would be as though I turned a blind eye to my longstanding conviction that there are no coincidences and everything does in fact happen for a reason. Often, we just need to figure out what that reason is! The point of my story is not to say hey, I am a victim, but rather to say…hey! What the heck is going on here? How is this allowed to happen? Why can’t we fix the system?  Over the course of my battles, I was contacted by countless consumers who were also harmed by this same broken system. Their stories inspired me and often gave me the much needed strength to endure. I wanted to tell my story also to validate their plights and encourage others to become proactive when protecting their credit and their identities. I needed to share my experiences and my many lessons learned while in the trenches, if I wanted to effectively shed light on the ongoing problems and work towards much needed change in the industry. The credit industry is the only industry I am aware of that can get away with selling a product that the consumer is responsible for both building and maintaining. A brilliant maneuver! 

Lauren Smith: Is there a #1 reason why consumers end up with bad credit? 

Denise Richardson: The number one reason why consumers end up with bad credit –is remarkably lack of knowledge as to what is transpiring within our credit reports. The second cause is something that we often have little control of…fraud or someone else’s errors. Let me explain. When it comes to buying an automobile, financing a home or obtaining credit, it's all about the numbers –our three digit credit score. These all powerful numbers can affect both the affordability of insurance premiums and the interest rates and ultimately, may be a deciding factor in whether or not we can drive the car we want, purchase the home that seems perfect for our family or even obtain that career advancement we’ve applied for. But what happens when those numbers lie?  Some studies have shown that one in four credit reports has inaccurate information that harms a consumer’s credit rating. When consumers are hit with the disturbing news that their credit reports don't portray the truth about them, they’re often stunned first, and then when the magnitude of the problems rises to the surface, angry and overwhelmed. They find themselves forced to spend months and often years correcting errors caused by someone else. 

Lauren Smith: What can a consumer do to protect themselves from “accidental” bad credit? 

Denise Richardson: Be proactive! Remember two simple, but well-known adages... an ounce of prevention is worth a pound of cure –and knowledge is power. Whoever said numbers don’t lie was dead -wrong. When it comes to the world of credit, numbers can, and often do lie. We all like to think we are in control of our lives. We feel confident that our unique identities, reputations and even our credit scores are completely governed by our own actions. That perception is a myth – and one that can get you in serious trouble. With news of corporate data breaches and identity theft hitting the papers every day, the odds are pretty good that a credit thief will eventually find you. But, if you take proactive steps now, you just might spare yourself some major hassles down the road. Here are five key steps to take to prevent credit errors from harming your credit identity: 1. Check to ensure all loan payments are applied accurately. Misapplications of your loan payments can prove costly. Watch for erroneously applied late fees for payments made timely, misapplied additional principal payments and ascertain if your escrow accounts (taxes and insurance) were paid in time If you don’t receive monthly statements, and don’t have access to a statement on line, call your lender and ask for a payment history schedule at least every six months. 2. Order your free annual credit report from the right place 877-322-8228. Watch for deceptive advertisements and websites that offer “free credit reports” but end up costing you money and often allow your personal information to be sold to third parties. 3. Detect and dispute inaccurate addresses, erroneous employment notations or mistaken name variations. These types of inaccuracies can be an early tip off that someone else’s credit is co-mingled with yours or that someone else is using your credit and must also be disputed. 4. Check to see if accounts you closed reflect “closed by consumer”.  If accounts don’t reflect that you requested the account to be closed it can wrongly appear that the creditor chose to close the account for poor performance. Also watch for any new credit inquiries you did not initiate and dispute any accounts that do not belong to you or are more than 7 years old –they should be disputed and removed. 5. Examine your credit card statements closely.  Aside from reviewing current charges applied to your credit card, it is equally important to pay close attention to your interest rates...any rate spike can be a predictor of unknown, derogatory credit data contaminating your credit file that will also affect the price of your auto and homeowners insurance premiums.

Lauren Smith: What should someone do if they find out they have a problem with their credit report? 

Denise Richardson: If you find you’re credit report is in chaos, it’s imperative that you turn to “right” people, agencies and/or attorneys for the proper guidance. All too often consumers tell me they are further harmed by turning to inexperienced attorneys, costly debt repair clinics or taking the advice, leading to inappropriate actions that don’t clean up the mess effectively.  Do your much-needed homework. If you are a victim of identity theft you should report it to the police department and complete a police report. Additionally, contact the Federal Trade Commission to report the theft and complete the Identity theft Victims Affidavit, report it to your State Attorney General and take the required steps to place fraud alerts on your credit reports. Be sure to review your credit reports and statements on a regular basis as oftentimes victims are targeted on a repeat basis when their personal information is sold to multiple thieves who are just waiting to reuse it. 

Denise Richardson is a freelance writer, member of the National Association of Consumer Advocates and board member of American Consumer Credit Education Support Services, a non-profit organization dedicated to educating consumers, and responsible businesses, on issues such as privacy rights, credit reporting, and financial fraud.

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