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How To Remove A Bad Authorized User Accounts

If you have an authorized user account that the primary cardholder is mismanaging; here is how you can remove it. for your client.

First you must have the primary cardholder contact the credit card issuer and remove the authorized user from the account. Once this is done the process of removing the card from their credit reports has begun. The next step is to have the authorized user contact the credit reporting agencies and let them know that they have been removed this person from the card and to please have the account removed from the credit report.

Give them 30 days to complete their work and they’ll send you a letter summarizing their actions.

Important: Once the account is removed you will lose ALL benefits from that authorized user account. Credit scores are calculated on the fly and will not remember that account. If that account was delinquent or heavily leveraged then it was probably hurting your credit scores. Therefore having it removed could result in an increase credit score(s) but that’s not a guarantee. The payment history of an account is extremely important in both your FICO and VantageScore credit scores, as is the debt-to-limit ratio measurements. However there could have been other factors that leaving that account on there could have helped your score e.g length of time or history.

If you’re removing one bad account and there are still negative items left behind just don’t bank on a better credit score. Negative information is not always valued as some believe therefore, you won’t increase your score by a certain number of points just because something bad was removed from your credit reports.

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Woman wins $18.6 million for two-year battle over credit report

Associate Press: PORTLAND, Ore. — A federal jury in Oregon has awarded $18.6 million to a woman who spent two years unsuccessfully trying to get Equifax Information Services to fix major mistakes on her credit report.

Julie Miller of Marion County was awarded $18.4 million in punitive damages and $180,000 in compensatory damages, though Friday’s award against one of the nation’s major credit bureaus is likely to be appealed, The Oregonian reported.

The jury was told she contacted Equifax eight times between 2009 and 2011 in an effort to correct inaccuracies, including erroneous accounts and collection attempts, as well as a wrong Social Security number and birthday. Her lawsuit alleged the Atlanta-based company failed to correct the mistakes.

“There was damage to her reputation, a breach of her privacy and the lost opportunity to seek credit,” said Justin Baxter, a Portland attorney who worked on the case with his father and law partner, Michael Baxter. “She has a brother who is disabled and who can’t get credit on his own, and she wasn’t able to help him.”

Tim Klein, an Equifax spokesman, declined to comment on specifics of the case, saying he didn’t have any details about the decision from the Oregon Federal District Court.

Miller discovered the problem when she was denied credit by a bank in early December 2009. She alerted Equifax and filled out multiple forms faxed by the credit agency seeking updated information. She had found similar mistakes in her reports with other credit bureaus, Baxter said, but those companies corrected their errors.

A Federal Trade Commission study earlier this year of 1,001 consumers who reviewed 2,968 of their credit reports found 21 percent contained errors. The survey found that 5 percent of the errors represented issues that would lead consumers to be denied credit.