How a loan modification can damage your credit
An article released in The New York Times on Jan. 1 reports that economists and housing
industry experts believe that President Obama’s plan to fight the foreclosure crisis is
not working. In fact, many believe that the
President’s $75 billion plan, which compels banks to lower monthly mortgage payments, has
backfired and prolonged the recovery process.
The article mentions briefly an important and little-known consequence
of the program: the fact that some borrowers who accept a loan modification receive
adverse reporting on their credit reports.
Certain banks, such as Bank of America, have reported to credit rating
agencies that homeowners are making only partial payments. This occurred despite some borrowers being
told by their mortgage companies that their credit would not be damaged.
Continue reading "How a loan modification can damage your credit" »
Greetings! I’m Kevin D. Johnson, a small business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica last October, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
