CREDIT REPORTS: THE HARM THEY CAUSE

(Article published in HWW Jan-Feb 2012)

by Herman de Jesus, NEDAP (Neighborhood Economic Development Advocacy Project)

Angel, a 43 year-old, single man from Manhattan, recently began looking for work and a place to live. Laid off from his job in 2009, he had spent the last year in poor health and out of work. By 2010, his health had improved, and with plenty of solid work experience and no late rent payments to speak of, Angel set out to find work and an apartment.

To his surprise, employers and landlords repeatedly denied his applications for work and housing. What was going on? Angel found out that negative information in his credit reports was blocking him from work and housing opportunities. He learned that people have a legal right to get their credit reports for free, once a year. Angel obtained his credit reports, and discovered that they contained lots of incorrect negative information.

At the advice of a friend, Angel contacted NEDAP’s Hotline, which works with low-income New Yorkers to address discriminatory and abusive banking, credit, and debt collection practices. Angel wanted to know whether he could correct the wrong information on his credit reports. NEDAP advised Angel of his legal rights, including his right to have his credit reports corrected. Angel also learned that NEDAP is working with community groups to address the unfair use of credit reports by employers and landlords.

If you would like to learn more about NEDAP, visit www.nedap.org, or call the NYC Financial Justice Hotline at (212) 925-4929. The Hotline is open Tuesdays 12-3 p.m., Wednesdays and Thursdays from 12-2 p.m. The Hotline can work with you to resolve legal issues connected to:

• Credit reporting

• Discriminatory lending and banking practices

• Prepaid debit card abuses

• Payday loans (which are illegal in New York)

• “Debt relief” or “credit repair” scams

• Unfair practices related to sending money home (remittances)

• Abusive debt collection practices