Archive for the ‘Management’ Category

New York Times Editorial on Credit Bureaus

Posted by Joel pate in Credit Repair, Management. Tagged: , , , , , , , , ,

Even the NYT has gotten in on the recent publicity regarding the Bureaus. The next step is to get one these publications to say that the consumer really does need credit repair companies. We are working on that now.

Here’s the article:

Victimized by Credit Reports

The companies that compile and sell credit reports on 200 million Americans have often dismissed allegations of widespread errors in the reports. But a long-awaited study issued this week by the Federal Trade Commission shows that the problem is quite real — with one in five consumers having confirmed errors in their reports.

Given the evidence, it is imperative that the federal government do more to make the credit-reporting process transparent and to protect consumers from errors that can drive up their borrowing costs and cause them to be denied jobs or be turned away by landlords.

The F.T.C. report, which was required by Congress, is the first major study that examines all of the main components of the consumer credit reporting and scoring system. It is based on work with 1,001 consumers who reviewed a total of nearly 3,000 credit reports with the help of a research associate who helped them identify errors and seek corrections from the credit-reporting companies.

It turned out that 21 percent of the participants found an error in one or more of their credit reports that was later corrected by a credit agency. For more than 5 percent, the errors were serious enough to reduce the credit score, making it more likely that they would have to pay more for things like automobile loans, insurance or mortgages. If the same ratio is true for the general population, as many as 10 million consumers could be living with undeserved financial penalties.

The study’s participants were fortunate to be given help to resolve the mistakes. For some consumers, however, straightening out a bad report is no easy task. Some of those who have had their financial lives ruined by egregious errors try for years to have the mistakes corrected only to have the problems persist. One major reason is that credit-reporting agencies, as well as the creditors and others who furnish them with data, often fail to investigate consumer complaints, allowing errors to live on and on.

The F.T.C. recommends that people check their credit reports regularly, which is a good idea. But that is not nearly enough. Congress could help consumers in other ways. It could require all credit or background check agencies to register with the federal government and to adhere to strict accuracy standards. It could give consumers the right to view all credit information that agencies collect about them.

Finally, it could strengthen an existing law that requires that consumers receive notice when they are denied jobs, credit or are in any way disadvantaged by unfavorable credit report information. Sometimes such notices are never sent; Congress should give the consumers the right to sue when this happens.

A version of this editorial appeared in print on February 13, 2013, on page A26 of the New York edition with the headline: Victimized by Credit Reports.

How Credit Bureaus Experian, Equifax and TransUnion Rose to Power as the “Big Three”

Posted by Joel pate in Auto Loans, Credit Cards, Credit Repair, Management. Tagged: , , , , , , , , , ,

Most of us at one time or another have had to take out a loan to buy a new car or a home. During the process, the lender will pull your credit report and score to find out if you’re worthy of receiving a line of credit. They want to know whether you can repay the money that you’ve borrowed on time, or have a history of being late with your payments. The rates or fees you have to pay on your loan may be based on how well you’ve handled credit over the years.

We’ve all come to accept the fact that we’ll have our credit checked these days when trying to get a loan, but where did the process originate and when did the the three major credit bureaus rise to power?

History of the Credit Bureau

So when did the idea of the credit bureau get it’s start? As far as back as the 1860s we can find traces of the ideas behind credit bureaus. Local merchants would share and maintain lists of individuals who were high credit risks. That allowed them to offer more credit to people who weren’t on the lists, whereas previously, most merchants only extended credit to people they knew personally.

Later on as populations became more mobile and a wider group of merchants across the country needed information to help determine the creditworthiness of individuals, credit bureaus as we know them today began cropping up.

What Are the Three Credit Bureaus?

Over the years, as the number of people seeking credit grew, the ability to find consolidated credit reporting information took on added importance. Today, some 2 billion data points are entered every month into credit records in the U.S, and approximately 1 billion credit cards are actively being used in the U.S. That’s a lot of data to process!

A variety of big and small credit bureaus have been on the scene to help track credit, but a majority of lenders and financial institutions now use one of the “Big Three” credit bureaus in order to assess whether someone is worthy of receiving a loan. The 3 agencies include Equifax, TransUnion and Experian. Let’s take a brief look at their history.

History of Equifax

Equifax was founded way back in 1899 as the Retail Credit Company. They grew at a furious pace and had offices throughout North America by the 1920s. By the time the 1960s rolled around, they had credit information for millions of Americans on file, and weren’t afraid to share it with just about anyone.

The passage of the Fair Credit Reporting Act of 1970 placed some limits on what information could be shared with who, as well as put laws in place to govern the credit industry and protect consumers. Retail Credit Company suffered a bit of an image problem, but by 1975 they had successfully re-branded as Equifax.

TransUnion History

TransUnion was the second of the Big Three to come along. Founded in 1968 as the holding company of Union Tank Car, a rail transportation equipment company, TransUnion jumped into the credit sphere in 1969 when they began acquiring regional and major city credit bureaus. They’ve grown over the years to the point where they now have over 250 offices across the U.S., as well as in 24 other countries.

History of Experian

Experian is the latecomer to the Big Three. They were founded in 1980 in England as CCN Systems. They expanded to the United States in 1996 by acquiring a company called TRW Information Services. They’ve continued to grow their operations to the point where they now have a presence in 36 countries.

Credit in the Internet Age

With the dawn of the internet age, credit bureaus now offer the ability for consumers to view their credit reports online, as well as give them access to dispute incorrect items that may have shown up on their credit. In the past, this process would have to be done by mail.

Consumers can also now get a free annual credit report from each of the big three agencies through the government’s website at There are also ways to get a look at your credit score from one of the three agencies via other free or paid services more than once a year, so it’s easier than ever to for you to determine how good, or bad, your credit situation is.

Justice Department Requires Credit Repair?

Posted by Joel pate in Credit Repair, Management. Tagged: , , , , , , , , ,

The Justice Department announced that it had reached a settlement of alleged violations of the Servicemembers Civil Relief Act (SCRA) providing damages and credit repair to 26 servicemembers whose cars were towed and sold while they were on active duty without obtaining court orders as SCRA requires. The settlement resolves allegations that B.C. Enterprises Inc ., d/b/a Aristocrat Towing and Aristocrat Towing Inc. (collectively “Aristocrat Towing”), violated the SCRA when it towed and sold these servicemembers’ vehicles without obtaining court orders. The case began with a referral from the United States Navy to the Justice Department after Navy Lieutenant Yahya Jaboori returned from deployment in Iraq to find that Aristocrat Towing had towed and sold his vehicle without a court order while he was deployed.

The SCRA protects the rights of servicemembers while on active duty in the military by suspending or modifying certain civil obligations. Under the terms of the settlement, which must be approved by a federal court in Virginia, Aristocrat Towing must pay a total of $75,000 in damages and repair the credit of the identified aggrieved servicemembers.

“Servicemembers make great personal sacrifices. We will ensure that the rights of the brave men and women who serve and protect us are protected at home,” said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “This settlement sends a strong message to businesses nationwide that the Justice Department will enforce the SCRA to protect against the taking of servicemembers’ property without first seeking court orders as is required by law.”

“No member of the military should come home from deployment to find their car has been towed and sold,” said United States Attorney for the Eastern District of Virginia Neil MacBride. “Businesses should be aware of the many rights that SCRA gives to servicemembers and their families, and businesses should also be certain that we’ll work tirelessly to ensure that those rights are protected.”

This lawsuit, filed in 2008, was the first filed by the Civil Rights Division under the SCRA. The Civil Rights Division received enforcement authority under the SCRA in 2006, and has since filed suit and entered into a number of settlements with defendants ranging from local landlords to the nation’s five largest mortgage servicers.

Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Please consult the military legal assistance office locator at Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at . Related Material: Consent Order

Contact: Department of Justice Main Switchboard – 202-514-2000


Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Dear Friends,

In life we are fortunate when we can say that any court ruled in our favor but when it is the Supreme Court of the United States, it is definitely a great day.

As you may know, Compucredit was sued a few years ago under the Credit Repair Organizations Act.
The details of the case are important but the really important facts are that the Supreme Court ruled that Consumers can be required to be compelled to arbitrate a case, if the company has the proper provisions in their Contract.
So act quickly to make sure that your contract has the appropriate and legally binding clause to protect yourself against consumer lawsuit.

For more information follow this link.


Joel S. Pate, President

Ox Publishing

Execution-The Key to Un-Lock your Success

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Execution-The Key to Un-Lock your Success


Execution is the key to your success. Without the systematic rigorous process of tenaciously following through, while ensuring accountability, your business and personal life will be less rewarding than it could be.

Of course you need to plan, and you need to prepare. Many articles on that subject. But without execution nothing happens. Without continuous execution, not enough continues to happen.

On a daily basis, I speak with mortgage companies and credit repair companies from all over the country. If I had a nickel for every time that I have heard “I’m about to do… name it” I would have a lot of nickels.

Every day I see business owners stuck in what I have deemed to be Work Avoidance Behavior.

Now these are good folks. Smart, well-educated but none the less stuck in some type of rut.

So if you are stuck in this type of rut, how to you break free?

Determine just like Microsoft has:

  • Good is good enough-there is always a 2.0 that you can roll out
  • Make your list today but tackle first the one thing that you are avoiding
  • Yes that’s right-don’t do everything else to “get it out of the way”
  • Execute on the one thing that you know you need to do-do it now
  • You will only change your behavior when you change it

Getting ready to get ready is another way of saying work avoidance behavior. It’s time to execute your plan, roll out your website, purchase those online key words, schedule presentation meetings, etc. Do it today, you will be glad you did.

To your Success



Join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:

Pro-Active vs. Re-Active Credit Repair

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Pro-Active vs. Re-Active Credit Repair


What is Pro-Active Credit Repair?

Before I answer that, let’s define Re-Active Credit Repair. As the President of a credit repair backend processing company, I have the good fortune to counsel with mortgage and real estate professionals as well as Credit Service Organization company owners from all across the county on a daily basis.

Typically in consultive roles you are looking at the problems in a business. In nearly every conversation with both large and small operators they state that their greatest problem is:


But is this the problem or a symptom of the real problem?

When digging deeper into these conversations, the real problem begins to surface. It is really a lack of ability to view the results being obtained by the industry professional on their customer’s files in a timely fashion. Why? The customers do not send in their results on a consistent basis, if at all. And, if you pull credit for credit repair from a mortgage company or other source you are violating their Terms of Service and they are subject to losing the valuable privilege with the Bureaus.

But how does this affect so many other areas of the business?

  • Since results are the primary driver of the business, the reason that consumers signed up with you and thus your deliverable, just in time delivery of this natural resource or inventory item is crucial to your business model
  • Your sales are affected due to the fact that you spend unproductive time chasing down bureau results instead of focusing on acquiring new sales and servicing the accounts you’ve already sold. Remember referrals are king.
  • Every un-planned contact from your customer is very time consuming. To increase profits you must develop a system that reduces customer communication interaction.

Whether your business is based on the Monthly Fee model or the new Pay For Delete model that is sweeping the industry, lack of control of the timely delivery of your demonstrable results impacts your ability to schedule your work and that of your production staff. Result: You have Cash Flow Instability.

Just imagine for a moment an auto assembly plant not knowing if they have enough steering wheels, bumpers or transmissions for today’s production. Can you imagine in today’s competitive landscape how that would affect their business? It’s the same for you.

So what is the solution? Credit Monitoring

It sounds ridiculous but it is true.

The timely access to credit monitoring allows you to systemize your work flow and thus drive your process without unproductive and needless contacts with you customers to chase down results.

Additionally, as you have experienced, the results arrive over a period of days if not weeks. As a result, the consumer is touching you up to three times and then you are required to examine three different reports at potentially three unique times.

Each of these extra steps takes time away from sales, meaningful customer touches and ultimately profits.

Only with a durable credit monitoring account can you plan your work and work your plan. How does it work?

Schedule the new credit monitoring pull in your calendar for each customer for a particular date. Or better yet push that down to a lower paid employee. By using your CRM platform to schedule your time to review the “results” allows you to become more productive-like a normal business.

This easy to implement process gives you “inventory” control over your work flow scheduling and thus the ability to manage your cash flow in a more businesslike fashion.

As always, many company owners were initially skeptical of this enhancement to their business and have had these objections: “That won’t work in my market….But then I’ve got to stop what I’m doing to log into the account….What if their credit card fails and I can’t access the report?… It’s too expensive… the customer cannot pay any more…”

These are all valid objections but ones that have been overcome by numerous successful operations:

  • In every market we have found that if you train your sales staff effectively you can overcome the objections from the customer of the added expense
  • The time it takes for one of your staff to log into a credit monitoring account is less than two to three minutes
  • Credit cards fail on approximately 20% of the accounts-but that is better than chasing down 100% of the consumers for results
  • The customer doesn’t want to help you do your job, the consumer wants results

Running a successful business requires that you become Pro-Active instead of Re-Active in your approach.

You do this by systemizing every possible event and by wringing out of the organization unproductive time wasters.

Ultimately you will find more time and energy for the growth drivers in your business:

  • Marketing
  • Lead Management
  • Affiliate Development
  • Sales
  • Productive Customer Interaction
  • Which leads to referrals

If you are ready to improve the results you achieve in your business, begin to implement this plan today on your next sales call.

To your Success

Joel S. Pate

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at


PS: Plan to join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link:

How To Get Organized In One Week-Part 1

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

Are you tired of facing organizational crisis? bigstock_Crisis_4188304

Have you missed your last deadline?

Well join the ever growing crowd that is tired of it right along with you.

But here’s the real question: Are you willing to join the ranks of those that need you to do something about it?

It’s time to get organized. Shall I show you were to start?

Time to put first things first!

The first step is to step back from the day to day grind to determine what is actually important in your life. You know we are individuals before we are family of men and women. Yes that’s right, your job or business is not the most important thing in your life. Thus, putting first things first is the only place to start.

What does that mean? The fact is that life is pretty short so do what is important first and continuously.

Do it for yourself. That’s right put you first. At first, this seems selfish. In the wrong context it is selfish. Realize that you can only get organized when YOU take control of what is important. You’ve got to start with you. One example of this is deciding to get into shape physically.

That journey began for me two years ago when I made a ninety day commitment to hire a trainer. What does this have to do with getting organized? It has everything to do with it. I have found that when you organize the basic element of your life, then it centers you; thus empowering you to get focused. But unfortunately it takes more than the physical element.

Next, take time out for those you care about most

The next step is focusing on your family. The key here is to set aside time, time block INTO your day and week, the events that when you look back on your life, you will be proud that you spent that time. And then, get off the damn phone and be in the moment.

Until you accomplish these two critical elements of control, you will always have a mountain of regrets and a pit of unresolved issues to transverse before you can get down to real organization.

Now we can discuss the business. Whether you work in a large organization or you work alone or in a small organization, you are the CEO of your life. In today’s integrated world, even the smallest qink in your “just in time inventory” life style causes disruption. The key to getting and remaining organized is in the selection of vendors, partners, and customers you do business with that become an integral part of your organization and thus play a huge role in determining how “organized” your life can be.

As a former homebuilder I can attest to this fact. No matter how well I planned the schedule, if one person did not show up or complete their part of the project on time, everyone had to be rescheduled. Thus to maintain an appropriate level of organization, I had to build into the schedule the realities of the frailty of mankind and the fact that it rains sometimes.

The cold reality: you still must rely on others

Overtime, I understood that no matter how organized I wanted to be, I relied upon others and their habits, lack of organization, and even worse, the use of wiggle words and even outright lies that they used to “manage “ their organization to get what they wanted.

For example, one dirt contractor when asked would say “yes, the trucks are on the road.” I took that to mean that the trucks I had been waiting on were on the way. The man I was paying to install the dirt could do his job and the plumber could then do his job and the framer who was also on the road heading to my job could do his job. But no. I discovered over time he was essentially lying by telling me that the trucks were on the road. The truth, but they were not heading to my job.

It is impossible to get organized when relying upon vendors like this.

So what is your example? More importantly, are you doing this?

The bedrock material of our life and thus your ability to organize is dependent entirely upon words and agreements and the words and agreements of those around you. The more reliable everyone in your life is to their word the more organized you can become.

Real organization requires that when you commit to something that you have every reasonable expectation of knowing it can be done. If the accomplishment of a certain obligation requires the requisition of various resources beyond your current means, then, be honest with yourself and everyone that relies upon you for this affirmative statement. If manna from heaven is required, and you’ve never seen any manna, ever, then you should disclose this fact to everyone involved, BEFORE THEY RELY UPON YOU.

What does this have to do with organization? Everything.

Saying what you mean and meaning what you say is the bedrock of a solid organization.

It is the foundation of your effort to bring your most precious asset — your time — under control. If you make obligations that cannot be accomplished in the time frame that you establish, and others place reliance upon your claims, your organizations foundation is weakened by every unmet obligation. You can’t build a solid organization on empty promises to others or to yourself.

To build a solid organization and thus be organized, you must wring out of your organization vendors, contributors and participants that do not hold to this same standard of excellence. It is the only way to deliver on your own promises and commitments and thus make the most of your energy and effort.

Always remember that unresolved issues dam up your creative power, your organizational strength and make you ineffective. As a result, you accomplish even less.

Stay tuned for Part 2 next week…

To your success,


Joel S. Pate, Ox Publishing
Chairman & President

Would you like to receive more information from Joel? Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and derogatory credit industry. For more information on Joel, contact him at

Fixation leads to death

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Doorway_To_Heaven_88666You’ve got to look up and out. That is where you build your business.

According to world renown business management author Peter Drucker, “Growth for any company is found outside of its four walls, not from within.” That is where you will find the business – outside of your four walls.

Regardless of the size of your enterprise, it is easy to find yourself fixated on the details. Now, don’t get me wrong, you’ve got to focus on the details but not to the point that you do not have sufficient outward focus. There is a balance and you must find it. So I’m sure you’re wondering…

“How do I find it?”

Glad you asked. The only way is to time block activities into your day. Again, regardless of the size of your company, you will be required to focus on internal details, Key Performance Indicators as well call them. These KPIs tell you how your business is running. So, part of the day, you’ve got to time block out for review of the KPIs.

The same goes for your focus outside of your business. You need to literally block out appointment time on your calendar a week or more in advance when you will make sales calls, follow up with your existing and past clients, seek referrals, build new marketing campaigns, attend tradeshows, participate in webinars and of course give webinars.

But if you are like just about everyone else, you find yourself fixated (my word) either too much on the details or on the sales. You have a pre-disposition to either be internally focused or externally focused. But you can’t become fixated.

bigstock_Electronic_Altimeter_Close_Up_1571269Fixation for a pilot of an airplane will surely lead to death. A pilot must have a heads up display of multiple instruments-and not become fixated on just the compass for instance. Many pilots have crashed their plane by fixating too intently on the direction they are flying while losing focus on the altitude. They were indeed flying in the proper direction but straight towards the ground.

But as the CEO of your life, your enterprise, your department, to be successful it dictates a multi-faceted approach, a multifaceted approach is what you have to give it.

So, let’s start on Monday. Over the weekend, pull out the old day planner and time block in the things you need to do to grow your business. And of course time block in an appropriate amount of time for the KPI’s of your business. And time block in time for outward focus and for family time and for time for yourself too.

I say time block in because you can’t time block out time. You never started doing a new thing by ceasing to do anything. You must fill your day with activities on purpose in order to obtain the purpose for which the day was planned.

By next week, I promise that if you implement this approach you will have accomplished more and be on the way to making more money and keeping more of it too.

To your success.


Joel S. Pate

Ox Publishing

Would you like to receive more information from Joel?

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at

Risk-Based Pricing Guidance in Plain English

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Law_School_2856177Information. It’s the key to knowledge and to success. I recently received this valuable information from a top law firm and top DC based political consulting firm. After receiving permission, I wanted to share it with you.

Understanding these changes will make you stand out as the expert in your field. Send me a note to let me know how you enjoy it. To your success…



If a consumer’s credit score is used in setting the material terms of credit, the risk-based pricing notice must provide the credit score and certain related information. These new content requirements also apply if a credit score of the consumer whose extension of credit is under review was used to increase the APR.

The final rule requires the following five (5) additional information to be included in risk-based pricing notices if a credit score of the consumer was used in setting the material terms of credit or in increasing the APR:

(1) the credit score used in making the credit decision;

(2) the range of possible credit scores under the model used to generate the credit score;

(3) all of the key factors that adversely affected the credit score. Note that the risk-based pricing notice generally may not list more than four key factors. However, if one of the key factors is the number of inquiries made with respect to the consumer report, up to five key factors may be used.

(4) the date on which the credit score was created; and

(5) the name of the consumer reporting agency or other person that provided the credit score.

The risk-based pricing notice also must include a statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer’s credit history. In addition, although the final rule is largely unchanged from the proposed rule, the final rule also requires the risk-based pricing notice to include a statement that the consumer’s credit score was used to set the terms of credit offered.

Credit score” is generally defined under FCRA to mean a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default. However, the definition of “credit score” expressly excludes any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the LTV ratio, the amount of down payment, or the financial assets of a consumer. Therefore, the final rule notes that some, but not all, proprietary scores would be excluded from the definition of a “credit score” and would not need to be disclosed to the consumer.

The final rule also provides model forms for situations where a credit score and information relating to the credit score must be disclosed. The FIRST NEW MODEL form provides a general risk-based pricing notice when a credit score is used in setting the material terms of credit. The SECOND MODEL FORM provides a risk-based pricing notice in connection with account review if a credit score is used in increasing the APR. The use of the model forms is optional. However, appropriate use of the model forms provides a safe harbor for compliance with the risk-based pricing notice requirements.

If the transaction involves two or more consumers, the lender must provide a separate notice to each consumer. However, if the consumers have the same address, and the notice does not include a credit score, lenders may provide a single notice addressed to both consumers. The final rule also addresses situations when multiple credit scores were obtained by the lender. If a lender obtains multiple credit scores but uses only one of the credit scores in setting the material terms of credit, such credit score that was used must be included in the disclosure. If a lender obtains and uses multiple credit scores (e.g., by computing the average of the credit scores), the final rule requires the lender to disclose any one of such credit scores. However, the lender has the option to include more than one credit score in the disclosure.

The final rule does not change the existing exception under Regulation V from the requirement to provide a risk-based pricing notice to a consumer whose credit score was used in setting the material terms of credit. Such exception continues to be available to lenders who provide a credit score disclosure exception notice to all consumers who apply for credit. (Dodd-Frank Section 1100Fand 15 U.S.C. 1681m)



The second final rule amends the model adverse action notices in Regulation B to satisfy the adverse action notice requirements under FCRA, as amended by the Dodd-Frank Act. Certain model notices in Regulation B include the content required by the adverse action provisions of both ECOA and FCRA so that creditors can use the model notices to comply with both statutes. The Board amended these model notices to include the disclosure of credit scores and related information if a credit score is used in taking adverse action.

FCRA requires a person to provide, in an adverse action notice, information regarding the consumer reporting agency that furnished the consumer report used in taking the adverse action. It also requires a person to disclose that a consumer has a right to a free consumer report and a right to dispute the accuracy or completeness of any information in a consumer report. The final rule applies to any person that (1) is required to provide an adverse action notice to a consumer; and (2) uses a credit score in making the credit decision requiring an adverse action notice.

Creditors also disclose additional information on certain adverse action notices. If a credit score is used in taking an adverse action, a FCRA adverse action notice must include the same information that was added by the Dodd-Frank Act with respect to risk-based pricing notices:

(1) a numerical credit score used in making the credit decision;

(2) the range of possible scores under the model used;

(3) up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor);

(4) the date on which the credit score was created; and

(5) the name of the person or entity that provided the credit score.

The second final rule is largely unchanged from the proposed rule, but the Board made the following clarification changes:

The final rule added optional language in Forms C-1 through C-5 that may be used to direct the consumer to the entity that provided the credit score for any questions about the credit score, along with the entity’s contact information. Creditors may use or not use this additional language without losing the safe harbor, since the language is optional.

On Forms C-1 through C-5, references to “credit report” have been changed to “consumer report”.

Official Staff Comment # 9 to paragraph 9(b)(2) was revised to clarify that FCRA requires a creditor to disclose, in addition to the credit score used in taking adverse action, up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor).

Thank you Weiner, Brodsky and Herman Thordsen for the updates.

To your succes,


Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at


Need to Jump Start Your Plan?

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

To Jump bigstock_Jump_Start_The_Economy_2341107Start a plan or to get unstuck, you must accept that no matter how good the plan (to increase your sales) you will need to build into it The Law of Continuous Process Improvement for the plan to work over the long haul.

Every plan requires continuous analysis and adjustment to find the way forward. Even basic tasks require a plan and a process of continuous improvement. This is important.

In the mortgage and credit business there are a number of basic processes that must be developed for the business to become a business and not a complicated job. For just a moment, imagine the axle, the spoke, the tire, and for simplification the engine providing power for the movement of a vehicle. Now imagine yourself the person benefiting from the system that generated the advancement that began with the engine that transferred power to the axle, etc.

This example asks you the question: Would you prefer to be the device that spins the most (the axle) or at the other end of the spectrum, the person benefiting from the system/process that allows you to accomplish a goal without spinning around like crazy?

Well of course you don’t want to be the axle but if you are not very careful and plan NOT to be and actually place processes in place to take care of the axle’s job, you will be the axle!

Knowing that it is not possible to just wake up every day, open your bank account online to see money that was deposited directly into your bank account without you doing anything, let’s work to get as close to that reality as possible. But how?

Every great plan starts the same way:

  • Define the objective
  • Make a list
  • Now make a detailed step by step list (don’t be complicated just use pen and paper)
  • Even better if you use different pieces of paper
  • Tape it all to the wall in sequence
  • Begin to add details to each step and then more detail
  • Now STOP. Now you must spend the appropriate amount of time determining if this is the right plan and if you have the energy and resources to really pull it together before you go one more step.
  • Because if you do spend time and money working on a plan that does not work, for any reason, you would have been better off if you just simply stop right here.

It’s OK to stop right here until you can determine how to move forward.

Only after you have completed this exercise, assign the task with a deadline to a responsible and capable person whether that person is yourself or someone else

Yes, but you say, I work alone. It’s just me. Well it’s even more important that you have a process for everything. That may be why you are working alone and can barely afford yourself.

Since I am part owner of an outsource company, it has dawned on me that I should be outsourcing even more task of my business. I have my own IT staff, but we outsource special projects such as:

  • Website design
  • Email creation
  • Content creation
  • A contractor manages my Go to Webinar, and other blogs
  • I recently used Elance to hire a person to find computer suppliers
  • I even outsource my daughter to add pictures to my Facebook of my grandson ;)

According to world renowned management expert Peter Drucker:

The best plan is only good intentions unless it degenerates into work”

Then he asks of every business that he consults when told of a new plan:

Which of your best people have you put on this work today?….if you don’t have any best people or you can’t afford to place your best people on a project then you are simply admitting that you don’t have a plan.”

All this sounds good right. But what do you do if you need to increase sales, build a new website, etc. but you just simply feel overwhelmed and don’t know the next step to take and thus you have paralysis:

  • Step away from the office (and email and Text) JUST SIMPLY STOP
  • Use paper and pen to make a list of what is really important and needs immediate attention
  • Determine what you can and cannot do today and this week
  • Make a list of the resources that you have AND THE RESOURCES THAT YOU NEED
  • Determine what is needed, what is possible and what is likely.

It’s OK to not be able to do everything today. Take a breath.

More next time.

To your success,


Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at