Why is an entire town in Vermont having trouble borrowing money? Apparently TRW accidentally gave everyone in the town of Norwich, Vermont, a bad credit report. An anomaly, says TRW. The problem began with Margaret Herr, a Vermont housewife who works part-time for a Georgia company that gathers information for TRW on delinquent property taxes, among other things. In the course of her duties, Ms. Herr came to Norwich to acqu...

There are two kinds of credit reports; consumer credit reports and investigative consumer reports. Consumer credit reports list credit history, place of employment, social security number, and marital status. This is the most common kind of credit report and it is used primarily by potential creditors. The second kind of credit report, the investigative consumer report, provides much more detailed information. It is usually...

Three agencies virtually monopolize the credit reporting industry:

lRW, Trans Union, and CBl/Equifax. Equifax's reach is not limited to the United States; it is also a primary credit information supplier in Canada. These three agencies pro...

In their quest to become more competitive, credit bureaus have become more resourceful in their methods of data collection. In some cases they may even cross the boundaries of legality. In general, however, they use several legal sources of information.

• Current and previous creditors.
• Public records.
• Internal analysis.
• Credit applications.

Current ...

The Fair Credit Collection Act protects consumers from unreasonable collection action. Although the federal act only applies to outside collection agencies and to legal firms doing collection work, some states, as has been said, have passed state acts that have authority over in-house collection agencies. The acts prohibit the following practices:

• Using profane or obscene language.
• Threatening to harm...

• Fifty-nine million Americans are addicted to shopping or spending.
• About 1 million Americans filed for personal bankruptcy in 1991. That's nearly one in every 200 people.
• The number of non business bankruptcy filings rose to 580,459 for the year ending 30 June 1989. That figure was up 10 percent from the same period the previous year, according to the administrative office of the U.S. Courts.
...

Credit costs vary. By remembering two terms, you can compare credit prices from different sources. Under truth in-lending laws, the creditor must tell you-in writing and before you sign any agreement-the finance charge and the annual percentage rate (APR).The finance charge is the total dollar amount you pay to use credit. It includes interest fees, as well as service charges and some credit-related insurance premiums. For ...

Even when you understand the terms a creditor is offering, it's easy to underestimate the difference in dollars various terms can make. Suppose you're buying a $7,500 car. You put $1,500 down and need to borrow $6,000. Compare the three credit arrangements shown in the chart at the top of page 11. How do these choices stack up? The answer de...