In Tarpon Spring, Florida a Port Richey couple has been accused of stealing approximately 8,000 credit card numbers. Jail records show 30-year-old Angel Toland and 23-year-old Gary Blair were being detained Thursday at Pinellas County Jail on $5,000 bonds—it is not known if either will hire an attorney for their credit card trafficking charges.

A sheriff’s office report claims the pair attempted to sell undercover officers the credit card numbers and personal information of approximately 200 people for $1,500. Subsequent investigations revleaed the couple had roughly 8,000 credit card numbers—the information was secured on lead sheets from a telemarketing agency. 

 Detectives say the suspects may have stolen the paperwork when they helped the company with an office move; once the investigation concludes, the lead sheets will be destroyed. 

Layaway, a payment plan established by some retailers which allows purchasers to put items aside until they are fully paid off, is making a comeback from many larger retailers, especially for the holiday season. 

Layaway was a popular method before credit cards became easily obtainable and commonplace.  Now consumers, armed with the knowledge of the dangers of credit cards, can practice financial discipline with the help of retailers such as WalMart, Toys R Us, and Sears, which have all put layaway payment programs in place.  

While the practice of layaway does have costs for the retailer, as they must keep track of payments and hold the items within the store until they are paid off, a small fee is charged in order to make up for any losses.  Likewise, consumers may cancel their payments, however they will be subject to fees.  

Many of us have become familiar with the all too common “help” of a retail store employee informing us that we can save 15% on our purchase if we sign up with the store’s credit card.  However, while they may provide savings, many find that the percentage they save now may come at the expense of damaged credit and inflated rates later.  

Store credit cards are very similar to standard issued Visa or Discover cards, except that they are often attached with special offers and the promises of future discounts and rewards.  However, they also come with the same risks, as interest rates are often very large and spending limits tempting.  

Younger consumers, who may not understand the implications of credit card debt, are at risk of damaging their credit and becoming indebted for purchases that seem like a bargain.  Most, if not all financial experts, advise that younger consumers should stay away from such credit cards and focus on building their credit in much less riskier methods.  

The Credit Card Act of 2009 provided much needed reform to consumer credit cards which had subjected cardholders to unreasonable fees, soaring interest rates and arbitrary rules.  These rules took effect on February 22, 2010.

Minimum payments – credit card companies must display on their bill how long it will take for the consumer to pay off the balance is only the minimum payment is made every month.  Whenever the consumer pays more than the minimum balance, the leftover amount will go towards paying the next balance with the highest interest.  

Billing cycles – credit card companies may no longer charge retroactive fees for the previous billing cycle if there is not a valid reason such as disputed purchases or payments for insufficient funds.

Due dates – the new credit card rules dictate that the due date for monthly payments must be consistent every month and if the date falls on a holiday or weekend, the payment is due on the next business day, without penalty.

Change of Address – a credit card company changes its mailing address which in turn, leads to delays in processing cardholder’s payments, the card company may not charge late fees for sixty days after the change.

Interest rates – the new credit card rules ban retroactive interest rate hikes, with some exceptions.

– An expressed introductory period ends; the law now requires this period to be at least six months.

– The interest rate is variable.

– The cardholder fails to comply with a debt consolidation plan.

– The cardholder misses a payment for 60 days, even then, the rate must return to normal after the cardholder makes six months of on-time payments.

– A military service member leaves active duty which no longer entitles the cardholder to a government mandated cap of 6% APR.

Most importantly, a credit card company cannot raise rates if the cardholder fails to pay balances on other accounts such as utilities or other credit cards.

“Over-limit fees” – usually a credit card is declined when it exceeds its limit.  Over-limit fees cover the balance, often with substantial fees.  The new credit card law lets consumers opt out of over-limit fees and ensures it can only be charged once per billing cycle.  The law also requires those than opt into the fees understand the amount to be charged and retain the right to opt out at any time.

Paying balances – the credit card company is now required by law to not charge additional fees for any methods of payment, unless it is an expedited service to avoid late fees.  Statements must now be mailed to the cardholder at least 21 days in advance.  Fees may not be applied until 21 days after any declared “grace period” has ended.

Subprime cards have been known as “fee harvesters” as the holders typically incur several unforeseen fees which especially victimize individuals with poor credit worthiness.  Credit card companies can no longer charge upfront fees that exceed 25% of the credit limit.

The new credit card laws also contain provisions for gift and prepaid cards as well as gift certificates.  Unless the issuer specifically discloses it, these items cannot expire within five years.  Dormancy, inactivity and service fees are all expressly banned unless it is expressly disclosed and the inactivity exceeds one year.  In this case, only one fee may occur per month.

Issuing credit cards to persons under 21 is now banned unless there is an adult co-signer.  Alternatively, they may show proof that they have the means to pay back the balance.  Credit card companies may no longer solicit persons under 21 with prescreened credit card offers.

Colleges and universities must disclose all marketing and promotional relationships with credit card companies including contracts that disclose student and alumni information to credit card companies.  These disclosures are subject to inspection by the federal government.  

The new credit card laws mandate that credit and debt management courses become part of new student orientation at colleges.  Free offers may not accompany credit card promotions at or near (within 1,000 feet of) college campuses.  Colleges and universities are now required to limit the number and locations of credit card marketing events.

The new credit cards laws ensure that all fees, penalties and terms are disclosed and that there is at least 45 days notice of changes to credit card agreements.  They must also inform the cardholder of how long it will take to pay off their balance when making only the minimum monthly payment.  The Federal Reserve must collect electronic copies of all credit card agreements for public record.  The Federal Reserve also issues guidelines for card issuers to set up toll-free credit counseling and debt management assistance.

Consumers are entitled to one free credit report a year at AnnualCreditReport.com.  Other companies that offer free credit reports must disclose both visually and audibly that their credit report is not the “free one” provided by federal law.  

The right of consumers to opt out of significant change to their account is affirmed by the new credit card law and prevents opting out to be at the discretion of the card company.  Card companies that have account holder close accounts due to radical changes may collect the remaining balance over the next five years, charge a minimum payment amount that is up to twice the percentage charged before the change in terms or hold the former account holder to the same terms of the original agreement.  

Consumers cannot be punished for opting out of rate increases.  However, consumers are not allowed to opt out of minimum balance increases.  Consumers who are more than 60 days late on payments are also not allowed to opt out of rate increases

When applying for credit, lenders can inquire for a copy of an individual’s credit report from one of the major credit bureaus. These inquiries or credit checks can be listed on a credit report. While these inquiries may cause a credit score to drop, it will not change drastically. Sometimes, looking for a new credit line can mean a higher risk, but most credit scores do not get affected by multiple inquiries from mortgage, auto, or student loan lenders.

A credit check can be useful to determine an individual’s credit score, which many businesses, employers, creditors, and insurers use. The best way to go about doing a credit check is by getting a credit report. This provides information on an individual’s location, how the individual pays bills, record of lawsuits and arrests, and any history of bankruptcy. The credit report contains three different reports from the three major credit bureaus.

 A credit check can come in two forms. There is the soft pull which is just a basic credit check to determine a credit score. It is only use for informational purposes in order to find out a score. There is also a hard pull credit check, which results in more complicated reports. Lenders will often use hard pull credit checks for new accounts. These are the credit checks that can affect credit score.

The impression from applying for credit and having a credit check done will vary on a person to person basis based on their unique credit histories. For most people, one additional credit inquiry takes less than five points off. However, inquiries can show a greater impact with less accounts or a shorter credit history.

Large amounts inquiries also imply greater risk. An individual with at least six inquiries on their credit reports statically can be up to eight times more likely to declare bankruptcy in comparison to people with no inquiries. While inquiries can help assess risk, they play a minor part in doing so. How an individual pays bills and his overall debt burden as shown on your credit report is much more influential.

Performing a credit check through a credit report can help improve the chances of getting a job or a loan. Credit reports can show an individual what their credit score is and how it can be improved as opposed to jut a number.

Under the Fair Credit Reporting Act along with the Fair & Accurate Credit Transactions Act, everyone is entitled to free credit report annually from the major credit bureaus. This law was created in order to provide individuals with a free copy annually of their credit report upon request, making them more aware of their financial position. Free credit reports can be obtained by providing a name, date of birth, address, and social security number. 

There is no way to quickly fix credit scores since the process takes time to be successful. The best way to fix credit scores is to take care of it in a responsible way steadily over time in order or to repair credit history. Here are some tips for accomplishing that.

Fix Credit Scores: First Steps

• Check a credit report: Free copies can be requested and will provide information used to calculate a credit score. There can be potential errors such as incorrect late payments or amounts owed. Any errors should be disputed and corrected through the credit bureau as well as the reporting agency.

• Setting up payment reminders in order to prevent late payments, which can have a very harmful effect to a credit score. Banks will often provide this service through the online banking sections of their websites. Automatic payments are another possible way to avoid late payments.

• Reduce owed debt by reducing credit card use, and having more effective payment plans.

• If there are no credit cards associated to an individual, a credit card can help to help show regular payments.

• Showing payments to installment loans such as auto loans, personal loans, mortgages, or student loans can help fix credit scores.

• Paying off credit cards and other revolving credit lines is also an extremely effective way to fix credit scores. It is best to show large gaps credit available and credit used. Typically it is ideal to stay below 30%. Two effective ways of paying off or down credit cards are by either paying the cards with the highest interest rates or those that are closest to their limits.

• Instead of accumulating large balances on credit cards, using less than 30% or especially less than 10%. Balances are reported to credit unions so they should be kept as low as possible.

• Verify limits to be sure the lender is not showing a lower limit. If a lender is doing this, the lender can update this information quickly upon request.

• Keep older cards to maintain an older credit history, but make sure to use them occasionally otherwise the issuer may stop sending updates to credit bureaus, lessening its weight on a credit report.

• If there is just one late payment, a lender may be willing to overlook and erase it from the record. Any requests must be made in writing.

• Don’t lower credit limits because it will lower the gap between available credit and balances, which can lower a credit score.

• Avoid any late payments since they hurt good scores even harder than bad ones. They are not as damaging to an already bad score, but they should still be avoided.

• Consolidating accounts may lead to a big balance on one account as opposed to smaller balances on multiple accounts, which can hurt credit scores.

In order to do a credit fix, it is important to know how to avoid some scams and claims. Many companies will claim to be able to remove judgments, bankruptcies, bad loans, or liens from a credit file. Some companies may even claim to remove bad credit or make a new credit identity. 

According to the Federal trade Commissions, most of these are just scams. Even attorneys from the country’s consumer protection agency have yet to find a legitimate credit fix operation that has followed through on such claims.

Legally, no one is allowed to do a credit fix by removing timely and accurate negative information from a credit report, so it is important not to believe that these credit fixes will really work. The only thing that is allowed is removing negative information that is incomplete or inaccurate.

Here are some credit fixes that will help improve a credit score:

• If the bad information on a credit report is the result from an outstanding debt, work to repay these debts as rapidly as possible. It is ideal to pay off debts that have the highest interest rates before those with lower interest rates.

• If the debts are too overwhelming, a nonprofit credit-counseling organization may be helpful in making a plan to repay debts. A counselor can help consolidate debts and can talk to debtors to try to eliminate or reduce extra finance charges.

• Attempt to maintain a lifestyle that can help with the credit fix. Make sure to make all payments for rent, mortgages, and utilities before they become late, maintain the same job and residence, and keep a savings and checking account. Furthermore, create and follow a budget.

• Punctually paying off monthly credit card balances in order to avoid late fees is an effective credit fix to follow.

• Cut off credit card use to avoid even more debt.

• Setting up payment reminders in order to prevent late payments, which can have a very harmful effect to a credit score. Banks will often provide this service through the online banking sections of their websites. Automatic payments are another possible way to avoid late payments.

• Pay more than just the minimum on the monthly payments.

• Ask for a copy of a credit report and check for any errors. If there are, they should be corrected.

• Avoid large purchases until paying off all the credit card debt.

• Transfer the debt to a lower interest credit card.

• Pay half the minimum twice the month to reduce the monthly average, which will reduce the finance charges that are assessed.

• Close the newest accounts to make the average age of credit history older.

To ease the effects of the recession and more specifically the credit crunch, President Barack Obama has signed a plethora of new credit card laws that aim to ease the financial burdens experienced by American consumers. These new credit card laws are federal laws, meaning they must be adhered to by all issuing credit card companies, financial institutions engaged in issuing credit cards and various lending institutions in the United States. 

The new credit card laws instituted by President Obama aim protect the millions of American consumers who rely on credit cards. These new credit card laws will aid in effecting one’s budget and will restrict the issuing organizations in regards to how much interest they can charge as well as limit the amount of usage fees and finance charges found in a credit card application. 

President Obama’s new credit card laws will make credit cards more transparent; the terms and fees attached to credit cards, under these new laws, will be easier to understand for everyday consumers. Credit card companies are now required to offer their holders an advanced notice of changes in their credit card terms. Including in these terms are fewer penalty fees, interest payments and late charges.

To prevent the over-extension of credit—one of the predominant factors that precipitated the economic collapse—new credit card laws will make the ability to obtain credit cards more difficult. Prior to 2008, credit card companies would issue credit cards and sources of financing with little regard to the individual’s credit history or rating. 

Those individuals with low credit scores or a lack of credit history would be given a credit card with a high interest rate or APR—issuers would give these cards with a low credit amount as a way to profit off risky borrowers. In addition, debts were commonly packaged and sold as CDO’s—a profitable economic mechanism that eventually failed and fueled the recession. 

As a result of the mass defaults, the issuance of credit cards will be placed under a more stringent scope; those individuals with low credit scores or low-income families will typically be unable to access a line of credit.

New credit card laws will also allow the holder to pay-off their bills immediately. These no credit card laws essentially do away with the month-long grace period that was typically attached to a holder’s credit card bill. 

New credit card laws will do away with retroactive interest rate increases on existing balances. Furthermore, new credit card laws will only allow for interest rate hikes on existing balances under limited conditions, such as when a promotional interest rate ends, the cardholder makes a late payment, or if there is a variable rate of interest attached to the credit card. 

Interest rates on new transactions, under the new credit card laws, may only increase after the first year of the agreement. Significant changes in the terms and conditions of the credit card cannot occur without 45 days of advanced notice. And lastly, in regards to universal default, the practice of raising interest rates on holders, based on their payment records with other unrelated credit issuers is no longer permitted under the new credit card laws.