The area of consumer law is one that greatly effects many of our low income clients.  Our ability to spot these type of issues and link them with proper services could be the difference between homelessness and keeping their apartment, between obtaining work or being unemployed, between remaining in an abusive relationship for financial security and starting a new life free of fear. Often when our clients come in we provide assistance for their immediate needs. You are struggling to put food on the table? Let me help you apply for foodstamps. You have rental arrears? Lets apply for a one shot deal. We help them to gain some immediate financial stability but what do we do to help promote real long lasting financial security? Our services often remain focused on the present needs and we neglect to note the circumstances surrounding the situation and to develop a strategy for avoiding similar problems in the future.

Credit reports are the “gatekeeper” to many of the basic necessities our client’s are attempting to access. Credit reports can be pulled by potential new landlords, by creditors, utility companies and, in some states, even prospective employers. Knowing what information is on your credit report, good or bad, is the first step toward getting your foot in that gate, so to speak.  Under federal law, consumers are entitled to one free credit report a year from each of the three big companies (Experian, TransUnion and Equifax.) We should encourage our clients to take advantage of this through annualcreditreport.com.

Credit reports should be reviewed carefully for errors,  information that is inaccurate or incomplete. Examples, according to the Consumer Finance Protection Bureau, are:  accounts that do not belong to you, addresses of places where you did not live, names of employers you did not work for, or information that should no longer be on your credit report, such as a bankruptcy that is more than ten years old.

If there is an error on one’s credit report, it should be disputed. Each of three big credit reporting companies allows you to file the dispute on their website. The report itself will also provide further detail on how to dispute claims. If the disputed claims are not removed from the report, a consumer has the right to add a statement to  their report explaining the reasons for dispute. Anyone who pulls the report, will see the statement. The National Consumer Law Center discusses the dispute process here.