OBleedingMe

Okay, so I have a bit of a complicated problem here. Please bear with me, and anyone knowledgeable in these sectors please respond.

Back in mid-August, I found out I had no credit. I found that quite laughable, being that I had a credit card for over a year and I had made all my payments on time and in full.
So naturally, I called my credit card company, Chase. I found out that the imbeciles had mixed up my SSN/birth date with my FATHER'S, who also had a Chase card. I supposed something like was bound to happen, being that I was Charles, Jr. and he was Charles, Sr. Credit is reported by SSN, so everything I was doing was going on my father's credit report, not mine.
So I had to fax a letter, license, and my SSN card to Chase's Credit Update Bureau so they could change my info and send out updates to the three major credit bureaus, Experian, Equifax, and TransUnion. I sent out the fax and they changed my account info and sent out the update to all three bureaus. Chase sent me evidence that they sent out updates and letters of confirmation. Within a month, Experian and Equifax updated my files. I had a scores of over 750 with both of them. I was happy.
Fast-forward to mid-September. I try to get an insurance quote for the Mustang, and they give me a quote of over $5,500 dollars!!!!! I asked why in God's name it was so high - I had a PERFECT driving record. They said it was because I had no credit. I laughed and said yes I did, check with Experian or Equifax. They said nope, we only use TransUnion. So I checked my TransUnion credit report, and (you guessed it) no credit. I called Chase and asked why TransUnion hadn't updated my files. They said TransUnion was a little slow but it should be done within another month. I said all right.
Fast-forward mid-October. I call TransUnion... still no credit on my file. I call Chase. They tell me to fax them ANOTHER letter to their Credit Update Bureau stating my situation, and gave me the fax number for urgent problems. I did as I was asked.
Fast-forward to present. Still no credit with TransUnion, and my car is coming in on the 24th of November. I have been calling TransUnion/Chase for updates. I have received a letter from Chase stating they did an audit on my account, which should expedite my update process and have it updated with 7-10 days. That was on Nov. 2nd.
The people at TransUnion are quite heartless. Most of them can't speak English too well, and whenever I explain my situation (as in what am I going to do with a car with no insurance), they either say "I cannot comment on that" or "thank you for calling", *click*. I have been more than cordial with these people, and have received nothing but snide comments and being hung up on (even by supervisors). I am contacting an attorney tomorrow morning to see if I have a case. If my credit file isn't updated by Friday, I am going to call TransUnion and inform them of my pending legal action.
Any advice, anyone?
Also, why in heck do insurance companies ONLY use TransUnion!? That's completely unfair, in my opinion, especially since TransUnion is the slowest/most inefficent/smallest of the three credit bureaus. I could sit there and show them reports from Experian/Equifax and it means NOTHING to these scumbags. They just sit there with blank expressions on their faces and say okay, well, we still have to go by TransUnion, as if the company was a freaking bible. Do I have any recourse with the insurance companies??
Thanks for anyone who bothered to read this. Any advice is appreciated.

PS Since my car is coming on the 24th, when should I look for insurance? Any advice on that?

DJEmert

Just do this...either 1 look for another insurance agent or 2 get insured by you company and when you get everything worked out, your company should adjust your payments and it will even out.

Donna

I thought all three credit reporting agencys had 30 days to do an investigation and correct or make a ruling on their findings. Seems they have had plenty of time to get it right.

Are you not transferring insurance from a present vehicle? If not then I would try some other companies and ask them straight up which reporting agency they use. Good Luck with your dilema.

Radman

Definitely shop around, and tell your insurance agent that you are looking elsewhere. Maybe that will light a fire under them.

Jason

tonywar

Bleeding,

I am a credit manager that uses all three reporting agencies, although not in the insurance industry. I can tell you that a single credit card trade line will not do much to help your score, regardless of the agency used. Additionally, many insurance companies (I had to get mine to make a special exception to insure my '65) will not even consider insuring a Mustang, regardless of the driver and his/her record. Your age and the car have much more to do with your rate than your credit.

I would recommend going to a local broker, one that is not tied to any specific insurance carrier and have them shop you around. Get to know the broker and explain your situation and let them see what a great person you are and they will go to bat for you. It worked for me as I moved from one of the "big" agencies to a smaller carrier and ended up with much better coverage at a better rate. Additionally, try Progressive and Geico online. While they could not touch my local broker's rates, it is free to try.

Best of luck.

Sheri24

Your insurance is so high because you're a young single male that is insuring a mustang GT, the insurance symbol on that is 22 in NJ. (The new symbols aren't out yet, so they have to base it on last years symbol). The higher the symbol of the vehicle, the more your insurance is going to be. Since your a male, the insurance is almost double what it would cost if you were a female. Also, with the whole credit scoring, insurance companies only use that to give you a discount on your rate. NJ is just a terrible state and no matter what your insurance is going to be high. I am an insurance agent in NJ, but right now NJ is so bad that we only write for high risk drivers, meaning you would need to have over 7 points or have been previously cancelled for non-payment with a 30 day lapse. We are getting Mercury Insurance in our agency, I would love to help you out, but that deal probably won't be finalizied for another month or so. I don't know what company you are trying right now, but I would try Geico or Liberty Mutual. I have Liberty Mutual, but the only reason they let me go on my own policy is because I was listed under my moms policy for 3 continuous years.

icemant180

Shop around and get new quotes from several companies.

OBleedingMe

To Tonywar: Not true. They would give me quote of around 3500 (which I was expecting), but then, after they saw that TransUnion stated I had no credit, they upped it $2,000!!!!!
For me, my credit card line DOES make a huge difference. With Experian and Equifax, I have a score of over 750 points and "Excellent" rating, while with TransUnion, I have zero and "no Rating", which is WORSE than a "Poor" raiting. I think the reason that credit card is helping so much is because I've ran up very high bills on the card and paid them off all in one shot. One bill was as high as $3,500, and I paid that off in one billing period no problem.

To Sheri: Well, I've tried Geico, gotten quotes for over 6 grand, and when I called, they said it was because of my 0 credit rating, that if I didn't have that problem, it would be around $3,400. Progressive doesn't give out insurance in my area.

The cheapest rate I've found so far before they checked my credit was All State. They wanted around $3,100 before car alarm/air bag discounts. So it would probably come to a little under $2,950, which would be a great rate for me... that is, until they checked my credit and upped it to $4,900!!
For whatever reason, every insurance company I talk to tells me they weigh credit ratings almost as much as they weigh a driving record!! It's NUTS... and very unfair that they only go by ONE BUREAU. I really feel like taking my beater and going over 120 MPH in it, because apparently driving safely and obeying the laws doesn't mean a dog gone thing in NJ!
And man, what sexist crap is that with upping my insurance because I am a man? If they pulled that on a women, you'd see the likes of Gloria Allred screeching her ugly little head off... Feminism - The Movement for Misandrist Hypocrites.
Sorry. Venting. I can't believe this... it's almost 10 AM... hopefully some lawyer offices will open soon.

ace0215

sorry buddy but i don't think a lawyer is gonna help you just because the credit companies are slow to update the info.

Do you live at home? If you do then I would jump on your parent's policy

clintoris

you're probably going to have to write a letter to TransUnion and threaten action with the Federal Trade Commision. If you go onto the FTCs website, there is a form letter that you can take and personalize it.

sample dispute letter

Unfortunately, there really isn't anything that can be done legally until you take certain steps.... the first of which is to send a letter with proof that there is a discrepancy. I know you have already sent correspondence, so this may be mute at this point.
The Credit Reporting Agencies have 30 days from the time they are notified to make the correction. If that doesn't happen, then you can file a complaint with the FTC. There are online complaint forms for them as well on their site. I've been doing this for months now with my own credit.... and sending a letter like the example on the link above worked for me, but I had to send one to each of the friggin' CRAs. Do you have a copy of your credit report? Not one that you obtained online, but one that was mailed to you directly from TU? What I did was made a copy of the credit report and then circled the discrepancies in red, so that even an idiot would notice it and made reference to it in the letter. Then I mailed the letter, the copied pages of the report with the red ink on it, and documents to prove that their report was incorrect.
you might be starting over, but it worked, and things were corrected inside a week, once they received the letter.
I don't know which department you had made contact with, but you may not have been talking to the right person. I didn't bother trying to make a phone call, because I figured nobody would even care about my personal problem if I even got to a live body. So.... by sending the letter, I had proof that a letter was sent on such 'n such date and if nothing had been changed 30 days from when I guessed they received the letter, I at least had a legal leg to stand on.... I did my part, then I could take action to make them do their part.

ace0215

clint is correct, you have to send a letter with proof to the credit agency

Stadifer

Calm down there guys... First thing is first. No institution is obligated to report to all three credit bureaus. This is why they suggest that you get all three credit reports because different reports may have different items on them. A perfect example of this is a local loan I have is reported only to two of the three (Equifax and TransUnion).

Furthermore I have a hard time believe that 1 year and 1 credit card, despite perfect payments would even register on the radar for credit rating. It took me 5 years and two cards (plus an oil card) and a few minor loans that I carried on my name only. After this I stopped getting "No established credit" notices. I have virtually no debt today but I still have my original cards (the longer you keep a credit account open the better. Conversely the more accounts you have open the more negative effect it has on your credit).

Most institutions out here would scoff at such a small amount of established credit. I would suggest going to State Farm. While they use credit checks it doesn't play as massive a roll it sounds like the place you went to is. I have no doubt you can find better credit... If you can't a good insurance rate because of insufficient credit history can you not just sign up underneath your parents? At that point it isn't directly on you and your credit history.

icemant180

Charlie, I don't want to sound preachy but once you get insurance watch your speed. One speeding ticket will haunt $$ you for years.

Qrazy

Don't even get me started on this thread!!!!!! As far as I am concerned Insurance companies should not have the right to even pull a credit report....The fact that companies want to do that for even a quote is RIDICULOUS......My personal information, should have no bearing on my rates to drive a specific car.

clintoris

I agree with J ..... I can understand a company trying to protect their interests, but using a credit report to determin what insurance rate a person should be charged is just horse shiz.... think about the vicious cycle that people get thrown into.... say someone is irresponsible with credit when they first get started. Not all people are, but quite a bit of the majority don't make the smartet decicions when they're 18.... However, say that person has never had a ticket and, not just by luck... they actually do have good driving habbits... well, because the credit they screwed up a couple of years ago, they have a high interest rate on their loan, which results in a huge loan payment, they also have a huge rent payment because their apparment lease was also based on their credit, and now their insurance is based on that... this person is strapped and there's now way that they can even have breathing room with any of their finances... it doesn't seem legal that a person can make a ton of money, but still be strapped at the end of the month because they want to drive a nice car and live in a decent neighborhood. .... I'm not talking an expensive nice car, or uppity neighborhood... this should be attainable for anyone with a good job. It's BS, I tell ya

Stadifer

It isn't so far fetched... Your credit score does show how responsible you are. Which of course is an indicator of how responsible you will be on the road. The only thing that is bad about using credit scores for insurance quotes is that it is so easy to have someone screw over your credit score. By no fault of your own the score could tank and drive up your insurance rates. But outside of these isolated problems the credit score is a fine indicator of responsibility.

This one will really get your goat... A new trend in hiring policies with some companies is to check your credit. Poor credit scores might eliminate you from a possible job with a company.

Welcome to the modern world.

PaulF

OBleedingMe,

You've hit a nerve here with me on this subject. The fact that an the entire insurance industry started doing this recently and can get away with it is the dumbest thing I have ever heard.

Take me for example...I went through a messy divorce a few years ago and my credit got messed up in the process....to make matters worse, my ex's parents were my insurance agents! So needless to say, I had to get new insurance...and I went through the same nightmare that you are going through right now.

My driving record was one speeding ticket in 1990 from being perfect....literally zero points and no insurance claims over 15 years of driving. I was told when I started to get crazy quotes it had to do with my credit rating. Now my insurance was never late, my car and house payments were never late, but because my ex-wife ran up credit card balances and hid them from me, I got hosed. :bang:

When I called the first insurance company on this, they told me "We've found that people that are credit risks are more prone to insurance claims." When I told them to pull my driving records and past insurance claims, they told me it wouldn't make a difference. WTF?!?!

Anyway, there is a fairly happy ending to this story....I did find insurance, it was a little higher than I normally would have had, but not too outrageous. What you might want to do is look up quotes from different companies, then look for agents in your area. This is what I did and the local agents were able to somehow get it done for me, without having to sacrifice coverage.

Sorry for the rant, but this really makes me angry AND it's counter productive. It just makes it all the more harder and more expensive for people that DON'T have insurance to get it, which is a huge problem in Philadelphia, so the uninsured are going to stay that way.

Good luck!

ZERO

i bought my car yesterday, and transfered the insurance while at the dealership.

the cost went up $299.00 dollars per year to my policy. that is for my GT and my wifes 98 chrysler cirrus with 250,000/500,000/100,000 coverage.

oh...and i use progressive. it actually isn't bad for a jump from a 97 honda civic to this. at least i think.

tonywar

Maybe, being a credit/risk manager, I have the unpopular position of saying using credit reports (not just scores, but the content and history of the report - again, one trade line may equal a good score, but not a good report) for insurance quotes and employment screening is a very good idea. Very good indicator of risk and character and keeps my rates low.

Pretty simple - keep it clean and you have no worries.

Qrazy

Maybe, being a credit/risk manager, I have the unpopular position of saying using credit reports (not just scores, but the content and history of the report - again, one trade line may equal a good score, but not a good report) for insurance quotes and employment screening is a very good idea. Very good indicator of risk and character and keeps my rates low.

Pretty simple - keep it clean and you have no worries. [/b][/quote]
Sure its great for the Insurance companies and policy writers, because anything negative means more money in their pockets....Where will it stop??? Next will be detailed medical records. Oh, Mr. Qrazy, I see you are about 100 lbs overweight, well lets see, you will probably be more likey to eat a donut while driving (increased risk) cha-ching, oh and you are a smoker, hmmm...More likey to drop a lit cigarette in your lap while driving (increased risk) cha-ching, lets not forget that the physical we made you take to get a quote showed you blink on average 1 and 1/2 times more often than an average person of your age and gender (increased risk) cha-ching.....THIS whole process isn't far from the reasoning used by companies to seek credit information. IT SHOULD HAVE NO BEARING on my insurance rates to DRIVE a vehicle(especially when you have no choice but to pay for full coverage on a liened vehicle).....