Will Paying A Charge-Off Improve My Credit Score

I get asked quite often if paying a collection or charge off or some other negative item listed on a credit report will improve a credit score.  The answer is always the same...

NO.  Once a negative tradeline always a negative tradeline.  

A charge off is when a creditor does not receive payment for around 6 months and eventually 'charges it off'' on the company's receivables as a loss and closes the account so that you own't be able to use it anymore.  Once this happens the creditor will report the charge off to the credit bureaus so that it can be placed on your credit report.  This does not mean that the debt is no longer owed (although I have my personal beliefs about this rule).  The company will still report both your past due amount and the amount owed on your credit report.

The effects of a charge off can be detrimental If the consumer had a pretty high credit score at the time the charge off was reported.  If the credit score was not that high due to other negative information being reported, there won't be much of a drop in the score. 

The charged off account can remain on the credit report 7 years from the date the first payment was missed - often referred to as 'Date of Last Activity' (DLA).  The amount showing charged off on your credit report should be for the balance that was written off. Now if you notice, I said that the charge off can remain on your credit report for 7 years; NOT THAT IT HAS TO.*

If you decide to pay off a charge off just keep in mind that it will do nothing to positively increase your credit score.  It'll just change the reporting message from 'Charge-Off' to 'Paid Charge-Off'.  The original amount written off will still be reported in the account history as well.  Thus, whatever positive payment(s) you've made on the account after it was reported as a charge off won't matter - it will not be reflect or reported on your credit.  The damage has been done.  The only way to repair the damage done to your credit is to replace it with newer, positive credit information.  

Now, I am not advocating not to pay off your past due debts, I just want you to know what to expect - or not expect - when you do as it relates to your credit score.  From a lending perspective, they like to see 'paid' charge off rather than just 'charge off' depending on how old the debt is.  If it's a charged off debt that is over 3 years old and you've managed to add additional positive tradelines to your credit report since then; that'll have more weight on their decision to lend to you than an old charge off lurking around.  

Hope this helps!  As always if you have any questions, feel free to contact me; and if you'd like assistance removing negative charge offs, collections, and settlements from your credit report; give us a call!  We've successfully removed over 480,000 of these accounts from our client's credit reports!  

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Can I Remove An Unpaid Tax Lien From My Credit Report?

The short answer is yes. Anything that is inaccurate or unverifiable can be removed from your credit profile. With tax liens, however, if it remains unpaid you cannot avoid them. 'Them' meaning the IRS.  Just because it is not on your credit report does not mean you no longer have to pay them. It also does not keep lenders from finding out you have a tax lien and not granting you credit; most underwriters conduct a lien search prior to approving you for a loan.

The best method of permanent removal is to pay them either in full (if you have the money); negotiate an Offer in Compromise (pretty simple to do and the form with instructions are available on the IRS website; you can hire an attorney or accountant to do it for you as well) or to do a payment arrangement.

Since 2011, federal tax lien codes changed disallowing tax liens under $10,000 from being placed on credit reports. Any tax lien over $10,000 can be reported on a consumer's credit report, but can be removed by entering into a payment agreement and making 3 successful, consecutive auto-debited payments (Fresh Start Initiative). The lien will be released and removed from credit reports. I've only seen this happen for debts less than $25,000 but I've been told that persons with debts under $50,000 are eligible. You will not be approved for this if you have any other outstanding IRS debts. Once you've made your 3rd payment (or final payment) you can go on the irs.gov website and complete form 12277; which is an application for withdrawal. You will be notified of the approval (it's not automatic) within 90 days. I have had some tax attorneys get it in 2 days if you have the money to spare. They will usually mail you the letter and you can send it with a dispute letter to the credit bureaus for immediate deletion. They do report it to the credit reporting agencies, but I've been told it can take forever. There are some other qualifying factors as well, which can be read using the irs.gov link provided above.

Now, some credit specialist demand validation from the IRS to prove that the debt belongs to the consumer. Yes, this can be done since the IRS is a collector and not a government agency (it's true! Look it up!). The thing to remember is this; they are a collector working for the government! If you demand validation it can often wake a sleeping giant, so to speak and turn your life in to a living h$ll. Sometimes it's best to seek professional help.

If you don't recognize a tax lien as being yours, review your credit report, look at what county clerk's office is furnishing the information and research the public record with that county's clerk office.

If you have a debt that you're not sure has been paid off or not; consult with an attorney and have them file a Freedom of Information Act Request form for you (I've had clients contact the IRS directly and it did not go well!).

If it's an old tax lien there is a 10 year statute of limitation on the collection of that debt; however there are quite a few exceptions to that rule.

I do have tax professionals who act as advisers for MNH Credit Solutions' clients and I'd be more than happy to pass their information along. If you want someone to assist you with repairing your credit that has a proven track record of success and over a decade of experience; contact me right away!  My contact information is provided at the top right hand side of this page.

I hope you found this information helpful!

Help Your Kids Avoid Student Loan Debt

Student Loan debt equals $1 trillion in America - and growing. One of the things I regret is not researching all of my options prior to just jumping up and going to an extremely expensive college that I'm still paying for over a decade later - but that's another post all together .

So I've listed a few things to consider to help your kids avoid a 5-digit student loan debt when they graduate college:

1. Consider community college for 2 years and an in-state university for the remaining 2 years.
2. Scholarships - Apply! Apply! Apply! (did I say that enough?) Research programs that your child can get in to now to increase the chances of a grant/scholarship.
3. Discuss obtaining and maintaining a job. Believe it or not this gets much resistance. However, there are work-study programs at the school or part time jobs that have been negotiated by the school that will allow your child to meet their school demands. And let's face it; tuition and fees are not getting any cheaper the last time I checked.
4. Consider a free tuition college! Do I WISH I would have known about this when I went to school! I've left a link for you guys to research on your own; most charge room and board but nothing beats free!

Hope this helps! Feel free to add any tips you have on how to avoid the 'student loan debt trap'.

Credit Bureaus - Who They Really Are

Most people assume that the three credit reporting agencies – Equifax, Experian, & Transunion are government agencies whose job is to protect the consumer. That couldn’t be furthest from the truth. If you look on any of their websites in the ‘About Us’, ‘Who We Are’ or ‘What We Do’ section you won’t find one mention of ‘rights’ as it relates to consumers. They really could give two squats about us.

Credit bureaus are privately held, billion dollar companies whose main purpose is to make money, that's what for-profit companies do right?  They store data that lenders furnish them – whether accurate or inaccurate – about our credit relationship with them and sell it. Simple right?  This simple business model generates over $4 Billion a year!

One source of income for them comes from selling the information on our credit reports to other lenders, employers, insurance companies, credit card companies – and whoever else you authorize to view your credit information. Not only do they provide them with raw data; but they also sell them different ways of analyzing the data to determine the risk of extending credit to us. In addition to selling our information to lenders they also sell our information to us – credit scores, credit monitoring services, fraud protection, identity theft prevention - interestingly enough this area has quickly become one of their biggest sources of income. And those pre-approved offers in our mailbox every week; or junk mail? Yep, they got our information from the credit bureaus too. Companies subscribe to a service provided by the three credit bureaus that sell them a list of consumer’s credit information that fit a pre-determined criteria.

Now, contrary to popular belief, credit bureaus do not have any input on whether you should be approved for a loan or not; that is purely based on the credit criteria of the lender you’re working with. However, by using all of the information that has been placed on your credit report (payment history, personal information, and credit habits) and FICO’s method of scoring that data, they do provide them with how creditworthy you are.

This is why it’s so important to ensure that the information they are reporting is accurate. It would be nice if they would do their job according to the Fair Credit Reporting Act and make sure they have proof that the information they are storing is true and up-to-date – after all those inaccuracies could cost you $1,000s - but that won’t happen. Thus the burden of ensuring accuracy is on YOU. You are responsible for catching errors; they could care less if it’s wrong and they hate it even more when we challenge this inaccurate information by disputing it. Why? Because it’s time consuming and time is money. Remember, I said they’re main purpose is to make money? Credit bureaus store more than 200 million files on consumers; do you know how much money (time) it would take to ensure that everything is accurate and to store proof of accuracy?

We've seen the statistics; I have 2 videos that show proof of consumers having inaccurate information on their reports, the credit reporting agencies knowing this and still refusing to correct it!  The latest statistic shows that more than 40,000,000 Million Americans are walking around with errors on their credit reports right now. I personally think this number is off; I've honestly never seen a credit report that was 100% accurate; like NEVER.  Now you may say, well you work with people with bad credit so of course you see the worst of the worst, right?  WRONG! I've been a Realtor for 12 years and I've seen people with great credit have errors as well. What’s my point? Hmm, how can I put this?

CHECK YOUR CREDIT REPORT OFTEN!

Now you might say; but what about all the rules and regulations that the government has in place to make the credit bureaus act in the best interest of the consumer? My answer is what about them? Look on the FTC’s website and see how many complaints are out there right now regarding credit bureaus; look on the Consumer Financial Protection Bureau’s website and see how many complaints have been filed as well!  There are thousands!  But remember, this is about money.  So, if you’re making billions of dollars and you’re getting fined a few million you’re still winning, right?  What’s the incentive to change?  I rest my case. I recommend pulling one credit report every 4 months from www.annualcreditreport.com.  Don’t worry about a score; focus on the data and if errors are found; dispute them right away. Opt out of those list sold to other companies to prevent them from selling your information (optoutprescreen.com). Don’t let the credit bureaus cost you $1000s while they make billions.

If assistance is needed; contact us right away. We take pleasure in making sure the credit bureaus take their precious time, resources and money to verify and prove that the information on your credit is 100% accurate.

Payday Loans And Your Credit

I have been seeing a surge of clients with issues stemming from Payday Loans - harassing phone calls, threats of suing, garnishing wages, robbing their bank accounts, etc.  I always tell people, similar to the name; if you can pay off the loan by your next paycheck find another way to borrow the money - legally.

Payday loans can be a lifesaver if it's truly used for an emergency - only you can decide what's truly an emergency.  Most times something comes up; we freak out and instead of thinking things through and finding other alternatives we quickly react and put ourselves in a worst position than we initially started out; hence the existence of payday loans and car title loans and every other high interest loans available to those with less than stellar credit.

To borrow a payday loan is simple; you typically pay $20 per $100 borrowed or more.  The appeal is all you need is a job, proof of employment and a check with a future date stamped on it - easy, right? No hassle, and most importantly no credit check.  I'd rather you avoid them completely but if you must please choose one that is with the CFSA; an association that provides guidelines that protect the consumer.

The most negative thing about a payday loan are the interest rates/fees!  It comes to about 400% interest on a loan!  That's absurd. But if you need your car fixed; furnace repaired, water heater replaced - it suddenly doesn't seem that bad.  The key thing to remember is not to borrow more than you need.  The payday loan clerk is a salesman; just because he/she states you can borrow up to $1000 does not mean you should accept it.  Borrow only what you need!!!  And if they offer you the monthly payment plan don't fall for it; remember their job is to sell so that THEY can make more money.  Pay if off all at once and avoid the pitfall of the monthly payments that make them more money and cause a financial strain on your budget.

So; what if you ignored everything that I've just said and borrow more than you can pay back by the next pay period?  Well if they're a member with the CFSA, all you need to do is tell them you can't make the payment by the due date.  As a member of the CFSA, they'll need to stop all collection activity and give you 4 additional pay periods to pay back the loan in full.  Oh, and they can't charge you any additional fees during this period either.  This must be done before the due date; or at least before close of business on the day before the loan is due; preferably in person; and it can only be done once on the same loan.  It's called an Extended Payment Plan. If they deny you or state they don't offer this; call CFSA directly at 888-572-9329.

Now I must admit the collection activity from payday loan companies are THE WORST!  They call your job; threaten automatic wage garnishments, threaten to sue you; file a police report for bank fraud to send you to jail (based on the post-dated check you wrote them); the list goes on and on - and its illegal. State laws govern the collection activities of original creditors; and fortunately most state laws closely follow the laws of the Fair Debt Collection Practices Act so all you need to do is look up your state's laws on payday loans collection activities and rules.  The list is usually found on your state's Attorney General's website; your state's Consumer Affairs website will have some valuable information as well.

To look up your state's laws on payday loans CLICK HERE; it'll provide you with information on borrowing limits, if they're legal, if they're able to pursue you on criminal activity; rules about their collection activity and who to contact for assistance and complaints.

Hope this helps; and if
the damage to your credit has been done because of payday loan collection activity; contact us right away!  Ph: 708-872-0811

Are You A Victim of Identity Theft? What Are Your Options?

Recently, I became the face of my own advertisements!  Interestingly enough; the same week 3 of my clients came forth as victims of credit card or debit card fraud as well.  So, if your identity, bank or credit information has been compromised; what are your options?

Obviously, you want to notify the institutions you bank with and have credit extended through.  You also want to pull and monitor your credit often to ensure that no further attempts have been made to steal your identity - or merge some of your personal information with theirs.  But what next?

There are several options ranging from free to $50+ a month; the most popular are credit monitoring services, identity theft protection services, credit fraud alerts and credit freezes.

Credit Monitoring services alerts you when someone attempts to open - or actually opens - a new line of credit in your name.  However, it won't stop the potentially fraudulent account from being opened. The purpose is to notify you so that you can catch it early enough to avoid extensive damage. So to sum it up; credit monitoring does just want the name suggests - monitors, notifies; but does not prevent.  From a credit repair perspective I love credit monitoring services because it monitors credit scores as well.  Providing a client with the means to see their scores rising during the process is an awesome testament to what I do.  Other than that; if you're looking to protect your identity you're going to need another form of protection.  The most a credit monitoring service can do is offer to assist you to resolve any fraud by working with the 3 credit bureaus; which has been known to be inefficient for those having an identity theft crisis.

Identity Theft Protection - There are so many companies that provide this service and just as there are many companies - there are varying services offered as well.  For the most part most identity theft protection companies include credit monitoring because that's where fraudulent usage information pops up first.  In addition; most offer a 'lost wallet' feature that will replace the contents of your wallet - credit cards, insurance cards, etc.  Some other features you must have are Internet scans, change of address monitoring, surveillance alerts by email and/or text messaging, fraud resolution and at least a $1 Million dollars worth of identity theft insurances.  There are some additional features available - for a fee - that can really be beneficial; credit inquiry alerts, data breach alerts, checking/savings/investment account alerts, child identity alerts, court records scanning - to name a few. Most identity theft packages start as low as $10 a month and can go as high as $50 depending on the additional protection features you as on.  Some flaws that I've noticed is in the areas of utilities and tax fraud.  If someone opens up an account with a cable, gas, or some other utility company you usually won't find out until you attempt to open up your own or payments have been missed and it pops up on your credit. Tax fraud is huge now; I haven't seen any that protect against that or medicare/medicaid, social security, and welfare fraud either.

Credit Fraud (Security) Alerts - This is a must if you feel your identity has been compromised. You simply call in to the credit bureaus and ask for a fraud alert to be placed on your account.  It lasts for 90 days but can be placed back on by simply calling and asking.  If you have documented proof of identity theft (i.e. police report) it can stay on for up to 7 years.  This feature is offered for free through all 3 credit bureaus and requires the creditor to contact you for permission prior to opening up any new line of credit.  If you place a security alert with 1 bureau they're supposed to notify the other 2; but I would just notify all 3.  You might want to contact Innovis as well - the 4th lesser known credit bureau - just to be on the safe side.

Credit Freeze - A credit freeze gives you the option of locking "freezing" your access to anyone attempting to get credit in your name - even you.  This means an identity thief can't open a new account in your name because the creditor/lender won't be able to check your credit file.  When you're applying for credit; you'd need to call in to temporarily lift the freeze in order for the credit application to be processed.  Most states allow this for free; others charge roughly $10 or so. You can check your state's guidelines here.

Opt-Out - Another option is topre-screening offers.  Doing so removes your name, address and personal identity information from lists supplied by all 4 credit bureaus to credit card and insurance companies.  You can do this by visiting www.optoutprescreen.com. You can opt out for up to 5 years online; or print out a mail in form to opt out indefinitely.
opt out of

I hope this helps!  I do offer LifeLock Identity Theft Protection for $9/month or $99/year.  I always suggest this with fraud alerts and opting out of pre-screening offers for the best protection.

How To Dispute Your Negative Information With The Original Creditor

Most people are familiar with disputing negative information with the Credit Bureaus via the verification method. However, many times we get the 'it's been verified' letter back and have to wonder... Did they really verify? Especially if it's incorrect. In their response letters, the credit bureaus will even tell you to consult with the original creditor for further investigation.

Verification letters can be used with original creditors as well; however they often come back with the same 'it's been verified" response as well. What now? 

There are some other tactics to use with the credit bureau; but in relation to original creditors; the 623 dispute method may be a good option. Section 623(a)(8) of the Fair Credit Reporting Act allows you to request an investigation with the company furnishing data on your credit report - in this case the original creditor - to do a thorough investigation that backs up their claim that the information on your credit report is accurate. As of 2010 they are required to respond to your claims per the Fair & Accurate Credit Transactions Act of 2003 (FACTA) . Like the verification dispute letter, the original creditor has 30 days to respond.

What separates this dispute method from the other verification/validation methods is that you are asking for an investigation. This investigation is asking if the original creditor's records are accurate regarding your account. Why is this a good option? Surely the original credit is keeping good records, right? You'd be surprised.

Most companies only keep records for 1- 2 years; 3 years tops so they won't have the proof that you are requesting. This means they will need to prove that the information is accurate. Further; if you have a debt with a company that has been sold or has merged with another company; you've pretty much increased your chances that they don't have record of your late payment/charge off - yet they're still reporting negative information on hundreds of customers credit reports anyway; talk about illegal!

In your dispute be specific as to what you are disputing (late payment/charge-off) but not specific about anything that will prevent them from having to 'prove' anything. If your dispute letter is not detailed enough the original creditor will deem your letter as frivolous and will not be required to investigate.  If they fail to respond in 30 days; then you can sue for a $1000 fine for violating the FCRA. Most consumers are not willing to take it to court and will just file a complaint with their state's Attorney General or the Consumer Financial Protection Bureau. Your choice.

It is important to remember that original creditors are not skilled in the area of answering dispute letters.  Thus they will do everything possible to deem your letter frivolous.  So, provide enough documentation - at the very least place the account number and reason why you're initiating an investigation; and write the letter in your own words!  There are several form templates online; if you use them expect a 'form-like' response.  Use the letters as a guide; but personalize it to your situation.

Upon receipt of your letter the original credit must: Conduct an investigation; Review all the information provided by you about the dispute; Respond within 30 days of the investigation; If the information is inaccurate notify the credit bureaus of the mistake for corrections.

Important things to remember:

1. You must dispute with the credit bureaus first!  If you don't you will not have a right to sue.  By disputing with the credit bureaus first; the original creditor should have already been contacted by the credit bureaus anyway; which is why it was verified right?  Thus you will be able to sue them directly as a private citizen for furnishing unverifiable/inaccurate information on your credit report. 
2. If they do not respond in 30 days; send a letter to their legal department stating they have violated FCRA and of your intent to sue (you will have to sue to get it off).
3. If they have responded that they've investigated and it's yours; feel free to ask them for a copy of the documented proof they have on file to verify this information.  If they don't provide you with proof; send letter to legal department with violation and intent to sue.
4. This does not work on recent debt.  It is a tactic best used for debts that are over 2 years old.

Head spinning?  Feel free to request a Free Consultation below. I'll also include a *Free* 623 Dispute Letter Template to Assist You In Using This Method.

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Don't Let the Credit Bureaus Fool You!

If you've started repairing your credit, you'll quickly realize it's not as easy as some would make it appear.

You've probably also noticed that the credit bureaus will do anything and everything to dissuade you from pursuing your dispute with every response. I visited Experian's website to find a fax number and came across an educational page that had the gall to state that the burden of proof to verify if a debt is valid lies in the hand of the consumer; LIES. The credit bureaus need to PROVE that they have been placing accurate and up to date information on your credit file - especially if it's negative.

Another credit bureau's website stated that a customer's 'file' is also known as their credit report... Umm No. A credit report and the credit file they are supposed to keep on every consumer with a credit report are 2 completely different things. Your credit report is self explanatory; your credit file contains disputes, your written authorization to report information - negative or positive - on your credit report; any 100 - word statements; copies and contact information used to verify that a debt is truly yours pursuant to sections 603 and 604 of the Fair Credit Reporting Act. Don't let the credit bureaus throw lies at you; fight back!

If you need help; give us a call! 708-872-0811; MNH Credit Solutions.

Are You Living Above Your Means?

Credit restoration and proper budgeting tactics go hand in hand; whether you are doing it yourself or hiring a professional. Let's face it, if you're getting items removed from your credit and 2 months later new late payments, collections and charge offs are being reported; you're kind of wasting your time, right?

This is when we would pause the credit repair process and work on your budgeting skills.  Most people know when they need some help; but there are a select few that are in denial.  So; how do you know if you are living above your means?

1.  Your Credit Report.  If your revolving lines of credit are over the 50% mark just about maxed out; chances are you are living above your means.  The best way to use your credit cards - which I feel are a credit tool - is to keep balances below 30%; if you want the best boost to your score make it below 20%.

2.  Your Savings Account.  Do you have one?  That you don't touch on a monthly basis?  People who are living above their means are not able to save the suggested 10% or even 5%!  If you are saving less than 5% of your gross income then chances are you are living above your means.  This means that if a financial emergency were to take place; you'd be ruined.

3.  You're only paying the minimum required payments on your lines of credit - credit cards, installment loans, etc.  Making the minimum payments means you are racking hundreds of dollars more in interest and is not doing anything to boost your credit score.  With credit cards; only charge what you can pay off each month or make multiple payments to pay off faster; consider each pay period.  As to installment loans; an extra payment or even half payment on your car, mortgage, etc can cut your interest payments over the life of the loan dramatically.

4.  60% for Essential Expenses.  Your essential expenses are - Housing, Groceries, Utilities, Transportation.  If more than 60% of your take home pay is going towards these items; you're more than likely living above your means.  Most lenders require no more than 28% of your net pay go towards housing (some 35%); leaving the rest of your income to go towards your other essential expenses, financial obligations and personal care.

5.  You're Robbing Peter To Pay Paul.  Basically your bills are getting out of control almost forcing you to finance something each month on your credit card.  The installment - monthly payment option is crippling to Americans today.  It sounds great at first; dream vacation; big television; furniture package for only $50 a month!  However, when you actually add all of those monthly expenses to your budget you quickly find you're stretched thin.

Most people who start a spending plan start with their utilities, entertainment, cell phone and cable packages.  What we think we need is often what we want.  Living within your means involves recognizing your necessities and making sacrifices.  Being able to purchase that vacation, television, furniture package outright is more rewarding; your budget and savings account will thank you later.

MNHCS offers budgeting assistance to all of their clients; helping them cut unnecessary expenses and work on a debt repayment plan while starting their emergency savings fund.  If you need assistance with your credit and monthly budget; give us a call!  708-872-0811.

How Safe Are WiFi Hotspots?

Have you ever wondered how safe you are when using open hotspots at your local bookstore or coffee shop?

With the level of hackings going on, I'm paranoid about almost everything!  I mean let's face it; we can' even go to our local McD's without wondering if one of the employees are skimming our card.

I hardly ever work out of my office; my local Starbucks/Panera Bread/Barnes & Nobles are my haven; so when I sat down to plug into the free wifi and read the sign that has always been posted about the wifi being provided over an unsecure network I kinda freaked out (and immediately pumped up my vpn security).  I began looking up ways to protect ourselves while plugging into this modern convenience.

Be mindful that wifi networks are never secure; so even if it's password protected you're always at rick in a hacker's paradise:

1. Confirm the network's name. Hackers will create a name similar to the establishment you're at in order to trap you. For instance, if you're at Panera Bread; you might see options such as "Panera Free" and "Free PB WiFi" in the same option list.  Don't Assume.  Ask and protect yourself.
2. Turn off Sharing.  When you're at home; obviously your sharing feature is on; but before logging into a public wifi spot; turn it off!  
3. Check for "https".  This means that your info is encrypted and therefore protected.  It may have a padlock picture on there as well to signal your information is protected. If you use a popular website that does not have this feature download HTTPS Everywhere that forces an encryption.
4. Get A VPN. A Virtual Private Network routes your Internet traffic through a secure network that guarantees all of the data you're sending/receiving on a public network is encrypted and secure.  Basically it allows you to browse the Internet anonymously.  There are some free ones out there, but you get what you pay for or don't pay for).  They're relatively inexpensive at about $5-$8 a month.
5. Run an anti-virus software. Although an anti-virus software doesn't catch all compromising activity, it catches most of them.  By having one installed you'll get an alert if your system has been put at risk while logged into an unsecured network.
6. Turn off the "Auto Connect To WiFi" feature on your phone or tablet.  Keeping this feature on allows your devices - and your information - to connect to any available open wifi connection without your knowledge; thereby putting you at risk.  
7. Protect your passwords.  This involves changing them often, never auto-saving them via your browser; if you do decide to save them considering downloading LastPass.  This puts your passwords on a cloud instead of on your system so they remain safe. 
8. Turn on your system's firewall.  Operating systems come with a built in firewall usually found in the System/Security/Privacy section.
9. Wait until you get home.  This is the easiest; if you can let it wait!  If your online banking, shopping, etc can wait until you get home - then wait!

I hope this helps; if you have ways that you protect yourself I'd love to hear about it!

Identity Theft & Your Child's Book Bag

One of the mother's at my child's school shared this article with me from Today Parents and I had to share.  Hopefully it is as eye-opening for you as it was for me.

While you’re out searching for the perfect back-to-school backpack for your child, the more important consideration than style, size and color should be — what can happen if a dishonest person gets a hold of it? The things your child carries in his or her rucksack can become weapons of your financial destruction if they fall into the wrong hands.

With identity-related crimes at historic levels, the odds are better than ever that a dishonest person will know the basics of taking advantage of the kinds of personally identifiable information, sensitive data (like passwords and credit card numbers) and the many other keys to your household economy that often lurk in your child’s backpack.

Here’s a shortlist of what a relatively creative bad guy might find in your child’s backpack, and what you can do to keep anything bad from happening.

1. A Smartphone

While obvious to you (hopefully), does your child understand the serious potential for disaster that a walkabout smartphone can bring to your doorstep?

It can be as simple as a scammer dialing 611 and ordering new services. Chances are good that there’s enough information in your child’s backpack for a motivated thief to get your name and thus the keys to your telephonic kingdom.

But there are other identity indignities that can be done. Many people store user name and password information on the Notes app of their phones. The Notes may contain other informational cracks and crevasses as well and open up unsuspecting third parties — relatives and friends — to scams. Email scams,grandparent scams, a just-to-be-a-jerk iTunes or apps shopping spree, malware installation — so many tasty tidbits to exploit.

What to do: Talk to your kids about the dangers of an unsecured phone and discuss basic data hygiene with them — like what information shouldn’t be on their phones. Have them set strong (think creatively alpha-numeric) passwords, and a Find Me app to erase the contents should the device fall into the wrong hands.

2. Their Laptop

You don’t need to be a movie buff to know that a computer is a dangerous thing in the wrong hands. Most issues associated with a lost phone come to bear here as well. Emails can be sent to relatives or strangers in the service of sucking up money or wreaking havoc.

Beyond the irresistible cornucopia of files that may well be saved on the device, email is a treasure trove of personally identifiable information — everything from credit card numbers to more digestible data tidbits like name, address, email address and birthdays — pieces of a puzzle that can be assembled to present a believable story to an unwitting customer service representative and then steal valuable goods and services or used as a fly trap to accumulate even more personally identifiable information.

Does your child have access to your Netflix account? How about Amazon or iTunes? Where else have they gone in cyberspace that might have their information — or yours? Open social media sites that are set to login automatically afford a wide vista of scamming opportunities to a bad guy.

What to do: Make sure your child gets into the habit of logging out of all their online accounts, and that they don’t store sensitive information on their laptops. Talk to them about the wisdom of not saving user ID and password information (I know, I know, it’s just so darn inefficient to demand security over convenience),and how to make a good one. Finally, have your child set a password — shared with you — to protect their device against the wrong person accessing it.

3. Keys and Name Tags

So, this is pretty straightforward: If your child uses a karabiner to attach his or her keys to their backpack, you’ve got a robbery waiting to happen. Backpacks don’t have to have a nametag with your child’s address and your home phone number to lead a thief to your home. Better to put your office number.

Additionally, there are apps like KeyMe, that allow a fraudster (as well as a person who might want to use the app to avoid unnecessary inconvenience) to make a copy of a key that any locksmith can duplicate.

What to do: Tell your child to keep the keys to your home in their pocket rather than on their back.

4. Gaming Device

Playstation Vita is a popular gaming device — and not the only device that could cause you a world of woe should it fall into the wrong hands — but we’ll single it out for the sake of illustration.

The good news: Your personally identifiable information is safe even if someone grabs the device, because it’s password-protected and associated with your little gamer’s access to the network.

That doesn’t mean that a bad player can’t do some damage. First, and perhaps most terrifying, they can play games and wreck your kid’s sterling reputation in the community. Worse: Whoever has that device can buy games and run up a hefty bill. One-click purchased games are something any malicious third party can rack up in the way of a very expensive just-because crime. (I know, unthinkable among school-aged children.)

What to do: Have your child set a passcode for access to the device and make sure they share it with you.

When it comes to data security, best practices are universal. It’s your job to pass on what your kids need to know to stay safe and keep your family out of the crosshairs in a new data landscape where “getting got” is the third certainty in life. Basic data hygiene is a must. Until our education system catches up with the realities of today’s data-insecure world and best data practices are taught as part of home economics, it’s something we all must do to keep our home sweet home safe.

Proposed Improvements to the Fair Credit Reporting Act

Dem. Representative Maxine Waters introduced the Fair Credit Reporting Improvement Act of 2014 yesterday and I'm hoping with a passion it passes.  The benefits are phenomenal!!!  I'll summarize some of the main items below.

There are roughly 20 reporting changes she wants to improve in order to help millions of Americans obtain better mortgage, auto and student loan rates:

1. Shorten the time negative information remains on a credit report from 7 years to 4 years.
2. Remove all debts from credit report that has been settled or paid.
3. Erase Private Student Loan Defaults for borrowers who have made 9 consecutive on-time payments - which typically gets them out of default; this provision is already available with Federal Student Loans.
4. *My Fav* Prevent companies from using an applicant's credit as a means of separating the 'good' candidates from the 'bad'.
5. Force creditors to maintain all documentation about the debt they are reporting for as long as it remains on the credit report so that consumers can check for accuracy and completeness during this time.

There are definitely some perks to this proposal; however we know how long it takes for something to get passed don't we?  Fingers crossed; we definitely need this one!

Full Story

Been to Home Depot From April 2014 to Present? Check Your Credit/Bank Statements!

Home Depot has confirmed that their systems were in fact hacked this Monday. They are still investigating, however it's been confirmed that debit and credit card information has been compromised. As of right now,  PIN numbers for debit cards are not believed to be at risk, however withdrawals from ATMs have been made from victims' accounts since the hack.  So, I would definitely change your PIN just to be safe; or better yet; just order a new card.  Credit cards have fraud protection in place but debit cards work much differently, so take the measures to protect yourself now before you become a victim.

Home Depot reports: “Last Tuesday, September 2, we disclosed that we were investigating a possible breach of our payment data systems. We want you to know that we have now confirmed that those systems have in fact been breached, which could potentially impact any customer that has used their payment card at our U.S. and Canadian stores, from April forward."  Home Depot is working with the US Secret Service to determine how many millions have been affected.  So far it's believed that only those who shopped at the actual stores - and NOT those who shopped online - are at risk.

Like most companies Home Depot is offering free identity protection and credit monitoring to anyone who has shopped there since April; they are also replacing their card swiping terminals to a more secure one (chip enabled EMV cards).

"We apologize for the frustration and anxiety this causes our customers, and I want to thank them for their patience and support as we work through this issue," said Home Depot CEO Frank Blake in a statement late Monday.

The list of companies who's payment systems have been breached is growing; we as consumers must have an identity theft protection plan in place to guard our personal and financial information. MNHCS offers LifeLock Identity Theft Protection for as low as $9 a month.  For more information; please review our Additional Services tab; or feel free to give us a call!  708-872-0811

The Average Credit Score Has Gone Up

FICO released their update in April; stating that the average FICO score among American consumers has hit an all time high at 692; six points from October 2009's score of 686.

Looking at other statistics, mainly since the recession, we see that consumers are not acquiring as much debt; lenders are not extending credit to those with a lower credit rating, and the younger generation - millennials - aren't partaking in the credit world at all; thus it's no wonder the average score has increased.

Anthony Sprauve, senior consumer credit specialist at FICO, attributes the increase to consumers "paying more attention to their finances. “They’re more educated and more aware, and I also think there are fewer confusing financial products in the marketplace.” Hmm... If lenders are have decided to only work with persons who have a good to great credit score, while others with a poor to fair credit rating being left in the dark; obviously the average scores would increase. Those with good credit have more options to obtain additional credit, which improve their credit rating, while those with less than perfect credit are shut completely out.

Since the recession, the sub-prime lenders have been 'ghosts' for the most part; meaning those with a FICO score of 620 and under have had a hard time getting approved for a loan at a decent interest rate with agreeable terms. Thus, they've either given up their quests, have started using cash only, or have put things on the back burner until they can improve their credit. If you shut certain consumers out of the market place; of course the averages will increase.

This past recession caused lenders to be more cautious of extending credit to persons with a less than perfect credit score; and it taught consumers to be less trusting that their lending 'expert' will provide them with a financial product that is truly in their best interest.

The take-away message? It's URGENT that you take the necessary steps to achieve a good credit score! Credit affects every aspect of our lives and if home ownership; owning a vehicle, obtaining a cell phone, utilities, employment are important to you... the time to fix your credit is NOW! Pull your credit report from www.annualcreditreport.com; see what items you need to tackle. Create a game plan; financial education is the key.

If you need assistance, please do not hesitate to contact us; we'd love to help! For an overview of our credit restoration services; check out our video under "About MNHCS".

Millennials Miss More Credit Card Payments Than Any Other Age Group

If you're between the ages of 18 & 29 you are a millennial.  Bankrate.com did a recent survey, which found that millennials miss more credit card payments than any other age group that owned credit cards.

Interestingly enough; millennials also own the fewest credit cards, with 63% not owning a credit card at all.  From a budgeting and debt management perspective this is awesome! From a credit management perspective this is awful!  Credit cards boost credit scores faster than any other form of credit. Credit, in general, is of the utmost importance for this age group since eventually they'll want to purchase a vehicle, rent an apartment, buy their first home, even obtain employment!  So, why are millennials running away from credit cards?

Well the recession is one huge factor.  To think; most people in the age group graduated college at a time when unemployment was high and debts were even higher.  They watched first had as many lost everything they had due to the effects of the economy and living above their means. Why follow in their footsteps?  Most have entered the workforce themselves with astronomical amounts of student loan debt and no lucrative job offers; why add another bill to the mix? And add in the fact that statistically most individuals in this age group are not paying off their balances each month or have been known to miss a payment completely (that's a big ding to a credit score); most wonder why add another headache; another thing to remember to pay each month?

Well, credit matters more to this generation than any other. Almost everything is based off of your credit! You can't even get utilities or a cell phone without your credit being checked. Most lenders will tell you that a 'bad credit score is better than no credit score!'

Millennials "have to understand that it costs you money not to use credit just as it costs you money to use credit," says Mike Sullivan, director of education at nonprofit credit and debt counseling agency Take Charge America, because low credit scores or no credit scores won't qualify for low loan rates.

If you need assistance in strengthening your credit profile; choosing the right credit card for you; and other tactics to establish a strong credit score; give us a call; we'd love to help! (708) 872-0811

Child Identity Theft - Warning Signs

According to the Juvenile Justice Information Exchange; children under the age of 18 are 51 times more likely to become victims of identity theft than their parents. One source found that child identity theft was 35 times the rate for adults in the same population and it's growing.

Children make easy and appealing victims for identity thieves because of the ease of our credit application process.  Because the age of the applicant is not verified; once a thief has a child's social security number; the rest is pretty easy. They can simply use the child's personal information with a little bit of their own, and voila! - new identity created. From here they can apply for lines of credit, a new driver's license, jobs, government benefits, medical care, or utilities.  Further, kids have no credit history; thus a person can steal a child's SSN and it won't be detected for a decade or more. This is mainly because parents don't check their children's credit reports until they are adults themselves; typically when they're applying for college assistance.

What are some warning signs to look out for to keep your child safe?

Preapproved credit card offers in your child’s name - Most pre-approved card offers receive their information from other creditors, credit reporting agencies or cookies from searches on the Internet. Thus, this is an indication that your child's personal information is somewhere it should not be; sure mistakes are made, but a quick call to the person making the offer wouldn't hurt just to make sure.

Calls from collection agencies - This is beyond a warning; this is a red flag. There is no reason a collection agency should be calling your under-aged child regarding any account; they shouldn't have any bills in their name at this point.

Denied a financial account - If a banking/financial institution refuses to open an account for your child it's usually because they already have one or because of a poor credit rating. If you know they don't have an account anywhere and obviously he/she shouldn't have a credit score if they're under the age of 18; this is a huge warning sign as well.

Your child has a credit report - In general, only public records or applications for credit would cause a company/institution to furnish any information to the credit bureaus. Thus, make it a habit to check if your child has a credit report; between the ages of 15-18 especially.

IRS notifications in child's name - If the IRS is sending notices in the mail for your child it will more than likely be associated with income taxes. If your child's social security number is associated with any form of income and you know they're not working anywhere - someone has more than likely used their SSN to work under.

Denial of government benefits - If you or your child are turned down for government assistance because they have been paid to another account using your child's SSN; your child's identity has been compromised.

Desperate Family Members/Friends – 36% of child ID theft cases involve a relative; 35% involve a family friend; thus watch those around you, especially those with access to important information about your child. If you know someone close to you that is having financial difficulties but suddenly appears with a new credit card or loan; that's a red flag. If a family member’s license has been suspended or revoked, but they somehow got it quickly reinstated, that’s another red flag.

The FTC gives some great information on what to do if you believe your child has been a victim of identity theft.  The first step is obviously check for a credit report/history.  You want to ask for a full manual search; not just a standard search. 

They also list the following as prevention methods:

• Shredding all important documents prior to disposing of them
• Look for "https" prior to entering any personal information online; this indicates the information is encrypted
• Never carry your child's SSN or your own
• Ask Questions - A lot of paperwork for doctor visits, schools, and programs ask for a social security number.  Ask how it's stored, protected and if it's absolutely necessary for identity purposes.  
•  Don't give your child their SSN.  If you're around children you know that they talk and often reveal personal things that should remain private.  An adult can take advantage of that information quite easily. If they're too young to use the SSN responsibly; it'sbest to leave them in the dark.
• Store all of your financial and personal information versus leaving it out in the open - a safe; safety deposit box; or consider MNH Credit Solutions's "Financial Lockbox".     It's an online storage lockbox that safely stores all of your financial assets, contacts and personal information; it's available 24/7 and forwarded to a contact of your choice in case of emergencies.  We also offer "LifeLock Identity Theft Protection" that provides a $1 Million guarantee and helps to proactively safeguard your credit, finances and your good name by alerting you of any potential threats before the damage is done.  

If you would like to inquire about any of our services please do not hesitate to contact us; you can either complete the 'Contact Form' in the right column; or give us a call! (708) 872-0811.

How poor credit costs you on homeowners insurance

CNBC News Reports: Lower credit scores are widely known to impact mortgage availability and rates, but what most home buyers don't know is that they also increase the cost of homeowners insurance.

Homeowners with poor credit pay 91 percent more for homeowners insurance than people with excellent credit, according to a new report from Bankrate.com in conjunction with insuranceQuotes.com, part of Bankrate Insurance. Homeowners with median credit pay 29 percent more than those with excellent credit.

"This is another example of why credit is such an important part of your financial life," said Laura Adams, senior analyst with insuranceQuotes.com. "Maintaining a good credit history suggests that you're a less risky customer and can lead to several hundred dollars in annual homeowner's insurance savings."

Millions of Americans are still rebuilding their credit after the last recession, while younger potential home buyers are just building their credit for the first time. The widely use FICO credit score is used by about 85 percent of home insurers; three states, however—California, Massachusetts and Maryland—prohibit insurers from using credit scores in their insurance calculations.

"There is an undeniable correlation between credit information and insurance risk," said Anna Bryant, a spokeswoman for State Farm Insurance, which does use credit scores to determine individual homeowner insurance rates. "It is a correlation in terms of the frequency a person could have a claim and the severity of their claim."

Bryant added that State Farm does not look at the entire credit score, but just aspects of it to determine someone's rate. She could not provide information as to what scores correlate to specific increases or decreases in insurance rates.

FICO recently announced it would be implementing a new version of its credit score this fall, one that will not penalize people for medical debt or for late payments that have already been rectified. FICO scores run on a 300-850 point scale, and for most home buyers a score above 700 is required to get the best mortgage rates.

Banks are beginning to ease credit conditions for prime borrowers. Eighteen percent of banks in the latest Federal Reserve Senior Loan Officer Survey reported loosening prime mortgage credit conditions in the second quarter of 2014.

"This was the largest loosening in lending standards in the 24 year history of the data," analysts at Capital Economics noted.

Some argue, however, that credit conditions today are no worse than they were before the loose lending days of the last housing boom. Instead, housing demand is still weak because incomes and employment have not recovered enough to support home buying, even six years into the economic recovery.

"This is an income and assets story," said Logan Mohtashami, a Southern California-based mortgage lender. "It's pretty much been the strong middle class and the rich that are buying homes."

At the beginning of the recovery, it was all-cash investors at the very lowest, distressed end of the market fueling sales. As that supply of homes has dried up, and investors have moved out, the market is left to mortgage-dependent buyers, and that is why sales activity has shifted to the higher end of the market.

These buyers would be less affected by higher homeowner insurance costs. It is the potential buyers on the margins, the first-time home buyers, who are being priced out of home ownership due to lower credit scores and higher debt levels. They continue to rent, despite rising rental rates, because they do not qualify on an income and asset basis for a home loan. The vast majority of today's borrowers have higher FICO scores because they are simply more wealthy.

"I've looked at all my buyers, and if I gave them the worst pricing on mortgage insurance and raised their homeowners insurance costs, they would still be easily qualified to buy a home," Mohtashami said.

If you need assistance improving your credit scores to guarantee the best rates possible; contact us for a free consultation; 708-872-0811

A Billion Internet Usernames, Passwords Hacked! What You Should Know.....

If you've been following the news over the last 48 hours, you may have heard that over a billion usernames and passwords, along with half a billion emails were stolen by a Russian crime ring. This could be the largest data breach known to date.

We're writing today to update you on what has happened since the news broke, what we're doing about it, and what you can do.

What Did the Russian Crime Ring Do?

A Russian cybergang amassed over 4.5 billion records, mostly consisting of stolen usernames and passwords. 1.2 billion of these credentials appear to be unique, belonging to more than 500 million e-mail addresses. To collect such an astonishing number of credentials, the crime ring, dubbed "CyberVors" ("vor" meaning "thief" in Russian), robbed over 420,000 web and FTP sites, according to Hold Security.

What You Can Do

Due to the enormity of this breach, at least one or more of the online sites you have visited may have been compromised. You should take immediate action by changing the passwords for your email accounts and websites that contain your sensitive information, such as financial, health and credit card data. Use unique passwords for each site.

What LifeLock is Doing

Identity thieves may use this stolen data to collect more of your personal information. They could then commit other types of fraud: Open new credit accounts in your name, apply for loans, file fraudulent tax returns, take over your existing bank accounts, and more.

As a LifeLock member, if your personal information was stolen or misused, we're here to help.

Your LifeLock protection is constantly scanning over a trillion data points to watch for the kinds of fraud that go far beyond the misuse of an email address or website account. We will alert you if we see anything suspicious in our network.

MNH Credit Solutions offers LifeLock at $9 per month or $99 per year. Call today: 708-872-0811.

The Credit Bureaus Verified My Debt As Mines

A Realtor in my office said this to me. She's attempting to repair her credit on her own using a DIY kit purchased online and is quickly finding it's not as simple or easy as advertised. When we send out a dispute or validation letter, very rarely will the credit bureaus, collection agency or original creditor say "You know what? All of this stuff is wrong; we'll delete right away!". Too much money for them to lose by making it that easy. So what to do....

Did the credit bureaus really verify? According to Black Law Dictionary; to verify means to "To confirm or substantiate by oath ; to show to be true" and "Confirmation of the correctness, truth, or authenticity of a pleading, account, or other paper, by an affidavit, oath, or deposition." Oath here means a sworn testimony. Someone with first hand knowledge that the debt is yours.

Basically the credit bureaus cannot just say "It's Verified!". They need to provide proof. Who did they verify with? Whom did they speak with? What is their contact information? What methods did they used to verify if none of the above can be provided? And...

Did you give this person whom they verified with (if applicable) permission to furnish information on your credit report? Look at Fair Credit Reporting Act §603(o)(5)(A)(i; iii) {available on FTC website). Is there a form on file with your signature; or a court order authorizing them to furnish this information?

It may take several attempts to get an item removed from your credit report; it takes persistence and knowledge of the law. DON'T GIVE UP!

If would like to partner with someone to assist you in removing derogatory items from your credit report; give us a cal! We've successfully removed over 750,000 items from our client's credit reports by using our knowledge of the law; legal definitions as described above; the verbiage in our dispute letters; and the way we follow up using legal enforcement. We are very good at what we do and it shows in the improvement of our client's credit scores. Ph: 708-872-0811

How A Simple Friend Request Can Lead To Identity Theft

Consider this scenario: You're on Facebook, and you receive two friend requests, both from people you don't know. With one person, you have no mutual friends, and with the other, you have some. Do you accept either request? Both? Just the one who shares your friends?

Scammers are banking on the likelihood you'll accept the request if you have mutual friends -- the more, the better -- even if you have no clue who the requester is. From there, they'll have access to everything you share with friends, and they'll start friending your friends and family to see what they share. All that good stuff helps them reach their ultimate goal: identity theft. A growing trend among cybercriminals is called farcing, when strangers send friend requests on social media to steal information for fraud or identity theft.

Cybercriminals are exploiting the popularity of social media sites to worm themselves into inner social circles. Once a cybercriminal has managed to gain access to an individual’s network of friends and family, he or she can then become friends with others to pilfer their information, according to a study by the University of Buffalo.

With the personal information social media users put out on their profiles and in status updates, identity thieves could collect this data for fraudulent purpose while disguising themselves as legitimate users.

Arun Vishwanath, associate professor of communication at the University of Buffalo, conducted the study, which involved making fake Facebook profiles. He found that 1 in 5 social media users approved the fake friend requests.

One of the reasons social media users allowed them to be friends was because of their photos or list of contacts, because Facebook can show how many mutual friends users have. However, Vishwanath said those who fell for the ruse could be fooled because cybercriminals performing farcing attacks often scope out other victims from available friends’ lists.

Teens are especially vulnerable

The impact of these farcing attacks may become worse as users are increasingly sharing sensitive information, from where they work to where they live, with their friends.

Teens may be especially vulnerable to farcing attacks, because they may not protect their information as seriously as other users, according to a study by the Pew Research Internet Project.

The Pew study showed that teens are sharing more information about themselves on their social media networks compared with past years. More than 7 in 10 teens said they listed their school name, and 53 percent said they posted their email address. In addition to posting these private details, 82 percent said they made their date of birth available, which is one key piece of information that could be exploited by identity thieves.

As oversharing becomes a problem on social media sites, Vishwanath warns users to be careful about who they allow to join their circle of friends.

Protecting the personal information you share online is vital to keeping your identity safe. An identity thief can use your information to open new accounts in your name, which can do massive damage to your credit.

Your best line of defense is to monitor your financial accounts regularly. It’s smart to pull your credit reports often. Any large, unexpected change in your credit scores could signal identity theft, and you should pull your credit reports to confirm.


Patricia Oliver, Credit.com
Christine DiGangi, Daily Financial

Goodwill/Home Depot - Latest Victims In Security Breach

NEW YORK (AP) -- Home Depot may be the latest retailer to suffer a major credit card data breach. Multiple banks reported "evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards" that went on sale on the black market earlier Tuesday.

It's not clear how many stores were affected but preliminary analysis indicates the breach may have affected all 2,200 Home Depot stores in the U.S. Several banks that were contacted said they believe the breach may have started in late April or early May. If this is true, and even a portion of HD stores were compromised; this breach could be much larger than Target's that had 40 million credit and debit cards stolen over a three-week period. The party responsible for the breach may be the same group of Russian and Ukrainian hackers suspected in the Target breach late last year.

In a separate statement Tuesday, Goodwill said its customers' credit and debit card numbers had been stolen at more than 300 stores in 19 states and Washington, D.C. From February 2013 through Aug. 14. Goodwill blamed the security lapse on an unidentified contractor's payment processing system. Reports about fraud linked to shoppers' cards have been "very limited," Goodwill said. List of affected stores.

Full Story

MNHCS offers LifeLock Identity Theft Protection for $9/Month or $99/year. 

Contact us for details!

Hospital network hacked, 4.5 million records stolen

(CNNMoney) — Community Health Systems, which operates 206 hospitals across the United States, announced on Monday that hackers recently broke into its computers and stole data on 4.5 million patients.

Hackers have taken 4.5 million Social Security numbers from patients who attended any one of Community Health Systems’ 206 hospitals this year.

Hackers have gained access to their names, Social Security numbers, physical addresses, birthdays and telephone numbers.

Anyone who received treatment from a network-owned hospital in the last five years — or was merely referred there by an outside doctor — is affected.

The large data breach puts these people at heightened risk of identity fraud. That allows criminals to open bank accounts and credit cards on their behalf, take out loans and ruin personal credit history.

The company’s hospitals operate in 28 states but have their most significant presence in Alabama, Florida, Mississippi, Oklahoma, Pennsylvania, Tennessee and Texas.

According to the Chicago Tribune, Community Health operates nine hospitals in Illinois, including three in the Chicago area. The three Chicago-area facilities are: Vista Medical Center and Vista Medical Center West in Waukegan as well as MetroSouth Medical Center in Blue Island. For a list of hospitals in all areas CLICK HERE.

Community Health Systems hired cybersecurity experts at Mandiant to consult on the hack. They have determined the hackers were in China and used high-end, sophisticated malware to launch the attacks sometime in April and June this year.

Federal investigators and Mandiant told the hospital network those hackers have previously been spotted conducting corporate espionage, targeting valuable information about medical devices.

But this time, the hackers stole patient data instead. Hackers did not manage to steal information related to patients’ medical histories, clinical operations or credit cards.

Still, the lost personal information is protected by the Health Insurance Portability and Accountability Act, the federal health records protection law. That means patients could sue the hospital network for damages.

Shares of the publicly-traded Community Health Systems edged lower Monday morning. But the company tried to stem worries about the damages in a filing Monday with the Securities and Exchange Commission, saying that it “carries cyber/privacy liability insurance to protect it against certain losses related to matters of this nature.”

The hospital network said that, it managed to wipe the hackers’ malware from its computer systems and implemented protections to prevent similar break-ins.

The network plans to offer identity theft protection to the 4.5 million victims of the data breach. If you're in need of additional protection; MNHCS offers LifeLock Identity Theft Protection for as low as $9/month.

TM & © 2014 Cable News Network, Inc., a Time Warner Company. All rights reserved.

9 Surprising Ways Identity Theft Can Hurt You

What ailment is so devastating that its symptoms can range from an incorrect medical diagnosis to (virtually) killing you or to hurting your kids’ chances of getting college financial aid?

That distinctly digital-age malady? Identity theft.

When an impostor uses a victim’s identity to buy something and fails to pay the bill, the headache can last for years. Unpaid bills leave a big blemish on your credit report, which can have far-reaching financial implications. It might prevent you from buying a home, for example.

But the impact of identity theft can spread much further and wider than money. Today, we’re going to examine the radioactive byproducts of having your identity stolen.

1. Hurt your job prospects
Many employers now routinely look at credit history when assessing job candidates (about half, according to a 2012 study by the Society for Human Resource Management). A report pockmarked by ID theft-related errors could sink your application.

Employers can’t reject you because of what they see on your credit report without telling you, but then, employers can also gin up any old excuse for rejecting you.

Legislation to eliminate the practice has been proposed by U.S. Sen. Elizabeth Warren, D-Mass., and others, and a few states limit it, but odds are you live in a place where an impostor can steal your money and your job prospects.

P.S.: In a related way, posting your resume online or on job boards can also increase your chances of becoming an identity theft victim.

2. Cause your auto insurance rates to rise
Virtually all auto insurers use credit scores to set rates, wherever it’s legal (California and Massachusetts ban the practice). A low score can hike premiums by 20 to 50 percent.

Insurers can’t outright reject you because of your credit score without telling you, but they can use the score to offer you higher rates without giving you an explanation. ID theft victims who are struggling to clean up their credit reports are almost certainly paying higher auto insurance rates as a result and have no way of learning how much the identity theft victim “tax” is.

3. Get you a surprise tax bill
Identity theft isn’t just for stealing money. One form of ID theft known as SSN-only ID theft involves using a victim’s Social Security number in job applications, generally to fulfill government residency status requirements. These impostors can work for years without discovery, paying their bills and their taxes, using their own name (or a separate victim’s name) and the victim’s SSN.

But if the impostor ultimately fails to pay taxes, the Internal Revenue Service will try to collect from the rightful holder of the SSN. Then, it’s up to the victim to prove he or she didn’t actually earn the money.

4. Impact your Social Security income credits
In a similar way, SSN-only imposters pay into the Social Security system and build up earnings credits that can theoretically be used to draw out Social Security payments later in the life. Rarely are SSN-only imposters able to pull off that caper, but earnings erroneously credited to an SSN can cause chaos when the rightful SSN holder tries to apply for benefits.

5. Slow down your tax refund
Tax return ID theft has skyrocketed in recent years, according to the Internal Revenue Service. The Treasury Department’s inspector general says 1.6 million taxpayers were impacted by identity theft in the first six months of 2013.

This can affect you even if your identity wasn’t stolen. The IRS has massively stepped up its anti-ID theft efforts and turned up its fraud filters, which means it has slowed returns for many legitimate taxpayers.

6. Leave you with a criminal record/get you arrested
Criminal identity theft, perhaps the most dangerous form of identity theft, doesn’t even have to involve theft of money or credit. If a criminal is arrested and uses your name or your stolen driver’s license during booking, you could end up with a criminal record.

Innocent people have been arrested during routine traffic stops and in front of their children, and some have been thrown in jail on murder allegations. The problem became so serious at one point that several states created a special document called an “identity theft passport” to be carried by victims to prevent an erroneous arrest.

7. Kill you (virtually)
July Rivers of Alabama went to a bank with a simple request: She wanted to open an account. The bank refused, with this odd explanation: According to its information, she was dead. Soon, she found she was unable to get credit anywhere for the same reason: “The system” had “offed” her.

Perhaps it’s a surprise to you, perhaps not, that a living, breathing human being could not convince financial institutions that she was alive. They trusted their databases instead. Rivers lived through a digital murder mystery, trying to understand who “killed” her. Eventually, she learned an ID thief was using her information and apparently decided that registering himself/herself as dead was the best way to run away from creditors. Rivers had to spend years cleaning up the mess.

The Social Security Administration wrongly declares about 14,000 people dead every year.

8. Get you the wrong treatment at a hospital
Medical ID theft takes many forms, and the most common is what you’d expect — a criminal trying to steal money. Doctors can create fake patients and file fake claims, for example. One such victim discovered falsified claims for psychiatric sessions when he applied for a job, according to the World Privacy Forum.

The crime is growing. Last year, the Ponemon Institute said that medical ID theft impacts an estimated 1.84 million people. But the most frightening side effect of medical identity theft would be creation of a medical record by the impostor that impacts the victim’s future treatment.

Ponemon surveyed victims, who said the impacts were real. They told survey takers they’d experienced a misdiagnosis (15 percent), mistreatment (13 percent), delay in treatment (14 percent), or were prescribed the wrong drugs (11 percent).

9. Keep your kids from getting college financial aid
Child ID theft is tragic on many levels, but perhaps the worst part of the crime is that it often goes undetected for years. There’s a simple reason for this: 10-year-old kids have no reason to check their credit.

The crime is usually discovered when would-be college students fill out their first financial aid forms. Almost always, those forms are filled out under extreme time pressure and there is no time to clean up a pockmarked credit history. Even worse, fraudulent earnings that end up attached to an underaged child can have a direct impact on that student’s eligibility for financial aid and, in extreme circumstances, delay enrollment in college.

This is why it can be helpful to contact the three major credit reporting agencies – Equifax, Experian and TransUnion – and request your child’s credit reports far in advance (if your child has a credit file). If your child is younger than 18, he or she typically should not have a credit file; if they do, it may be because someone used their identity to open accounts.

You can avoid – or lessen the impact of – at least some of these issues if you regularly check your credit reports (here’s how to get them for free). By checking them at least once a year (more often if you’ve had identity theft problems in the past), you can spot errors or signs of fraud, like fraudulent accounts or bills in collections that aren’t yours. It can take time to clean up the mess, but being aware of the problem is an important first step.

If you monitor your credit scores, and you notice a big, unexpected drop, that’s a sign to check your credit reports for problems.

This post comes from Bob Sullivan at Credit.com

(Remember, MNH Credit Solutions offers LifeLock Identity Protection for $99/yr or $9/mth; check out more information under our 'Additional Services' tab.)