Every square inch of the North Shore of Staten Island is being
developed for new town houses, which range in price from $300,000
and $475,000. That's about the price of a studio apartment at
Manhattan, and many young buyers are eagerly signing up for
first-time buyer programs that provide assistance in financing.
The process may also be the first time that these potential
homeowners learn about the value of good credit, and about how a
negative credit report can harm their chances of becoming a
homeowner.
One close relative of mine, who thought he had a perfect record,
found to his dismay that his mortgage request was being held up
because a collection agency had listed a charge-off on his credit
report for an old cell-phone account with a major provider that
was closed two years ago.
He contacted the provider and was told the charge was for early
account termination - and the company conceded it had never sent
him a bill. His account was sold to the collection agency, based
in Westchester County. The agent at that company informed the
young man that he had better pay the $288 to clear his record and
ended the conversation by saying: "Don't say we didn't warn
you."
It turns out that my relative's was not an isolated case. The
young man was about to pay the bill to clear his credit but
decided to check up on the collection agency. He did a Google
search linking the cell company and the collection agency and, lo
and behold, he found complaints from consumers all over the
country involving the same parties and the same threatening
language. Several of those consumers said they never even had a
cell phone but the collection agency refused to adjust the
negative report unless it received payment of the disputed bill.
I'm not revealing the name of the cell-phone provider and the
collection agency because many of the complaints posted online
are anecdotal and warrant more investigation. I did speak with a
press officer at the cell-phone provider, who confirmed the
company had sold accounts to that collection agency. Such
agencies, she said, were required to follow all the guidelines of
the Federal Fair Debt Collection Law.
I also spoke with a representative of the New York attorney
general's office, Maritere Arce, who said the office had received
21 complaints against the collection agency in 2004. The nature
of those complaints, however, is still to be forwarded to me. She
also referred me to the New York City Department of Consumer
Affairs, which handles the licensing of collection agencies
dealing with city residents. I spoke there to the agency
spokeswoman, Dina Importa, who was very helpful and suggested
that the young man file a complaint with the agency. She directed
me to the agency's Web site, which contains a consumer complaint
form.
For prospective home-buyers here at Staten Island, time is of the
essence. Prices are climbing rapidly for houses at the North
Shore, especially the areas of St. George, Stapleton, and
Tompkinsville, which are all within walking distance of the ferry
and an easy commute to Lower Manhattan.
The executive director of the Downtown Staten Island Council,
Roberta Jacobowitz, said: "This is the area of Staten Island
that is edgy, funky." Central Perk-type coffeehouses, art
galleries, antique shops, open-mike bars, ethnic restaurants, and
beauty salons all dot Stapleton, my home for the past 26 years.
Suddenly, my neighborhood is trendy and may soon be way too
pricey for anyone of modest means.
Some real-estate companies deal only with those who have
preapproved mortgages. Negative reports can take a while to be
cleared. Thanks to a new federal law, everyone can take a free
look at his credit report once every 12 months, at
www.annualcreditreport.com, or by phone, at 877-322-8228. You may
also send a request by mail to Annual Credit Report Request
Service, P.O. Box 105281,Atlanta,GA,30348-5281.Everyone should
take advantage of that offer, whether you're in the market for
housing or new employment.
Ms. Importa, of the city consumer agency, recommends checking the
report carefully and reporting any disputed entries directly to
the credit bureau. Any consumer who suspects that a collection
agency is using unfair or unscrupulous tactics is encouraged to
file a complaint with the Department of Consumer Affairs.
With identity theft on the rise, don't wait until you're denied
credit to discover what's on your credit report - especially if
you've ever had a cell phone.