European Stars and Stripes (Newspaper) - September 25, 1991, Darmstadt, Hesse                                Page 18 the stars and stripes wednesday september 25. 1991 Money matter credit mix ups Spur lawmakers to study Reform by Robert Naylor or. The associated press Edward Ayuso ii knows disappointment and rejection. For years unfavourable credit reports kept the new York accountant from getting a loan or credit card even though he paid his Bills on time and had a Good Job. Ayuso a problem Wasny tall that uncommon his credit file had been combined with that of someone with a similar name. Fie took Days off work and spent More than a year trying to Clear up the problem almost giving up at one Point. A it was very frustrating a the single 30-year-old Man said of the ordeal. Such examples have come to the attention of Congress which is moving to tighten controls on an Industry that some critics say pays too Little attention to the accuracy a and confidentiality a of the information maintained on 90 percent of adult americans. The House consumer affairs and coinage subcommittee is considering revisions to the fair credit reporting act which governs the 122-year-old credit re porting Industry. The 20-year-old Law was adopted before computers disseminated credit information by the megabyte. A one of the problems arises from the sheer age of the act a said Albert Jac Quez an aide to rep. Esteban e. Torres d-calif., who chairs the subcommittee. A Aback then most credit reports were manually written and the amount of credit in Force was not As great As it is  these Days the credit bureaus a primarily try of Dallas Equi fax of Atlanta and trans Union of Chicago a sell about 450 million credit reports to Banks department stores finance companies and other businesses that offer credit. Creditors then report Back to the credit bureaus on the payment records of their customers. This month Jacquez said Torres will probably introduce revisions in the reporting act that encompass provisions of three pending pieces of legislation. It will Likely address privacy concerns and seek to make credit reports More accessible to Consumers a move backers say will help improve accuracy. Industry officials argue that they do a difficult Job Well Given the volume of information and the millions of unique circumstances they Deal with daily. Some mistakes they say will always creep through. A was desirable As it May be to have no incomplete or inaccurate information this utopian state cannot be achieved in today a marketplace a Walter Kurth president of associated credit bureaus the credit Industry a Trade association said during a House committee hearing in june. Part of the problem with accuracy he noted is that credit bureaus must try to determine whether people with like names addresses and social Security numbers might be the same person. For instance Are John Smith and Jack Smith the same person Are Bill Smith and Bill Smith or. At the same address the same person Are Elm Street and Elm Avenue the same do social Security numbers 123 45-6789 and 123-45-6798 perhaps belong to the same person is John b. Smith in Denver the same John b. Smith in new Orleans in sorting out that information mistakes Are made. That s what happened to Ayuso whose file was confused with someone who had a similar name but a different address and social Security number. Quot we do not deny that there Are errors and we information being our product understand As Well As anybody the great importance of the accuracy of the information a said Equi fax spokeswoman Tina Buckholtz. A any inconvenience the consumer experiences due to an inaccuracy in their credit report is unacceptable to  she said that while the company is a doing every thing we can to ensure the accuracy of its reports Consumers and creditor Gran tors also must help maintain the integrity of the information. One important thing Consumers can do she said is to make sure they always use the exact same name when applying for credit and make sure the numbers in their social Security numbers Are in the Correct  collector finds gentler approach works Best Schenectady n y. A you catch More lies with Honey than vinegar when it comes to collecting Bills from the beleaguered Consumers of the 1990s. 1 hats what be capital has found in its efforts to collect billions in unpaid Bills on behalf of retailers across the country. The finance company a subsidiary of general electric co., has developed a sophisticated software system that helps it pick the right approach in trying to nudge Consumers into coughing up late payments. The system determines scientifically what actions should be used with each customer such As phone Calls letters or simply sending out next months Bill. Even the combination of tactics and their frequency is statistically determined. A your technology has permanently changed the Way be capital manages delinquent consumer credit a said Bill makucl., who led the research Effort for the software system. Be capital handles $12 billion annually in retail credit Tor some 200 companies. Its clients include Apple ism Montgomery Ward and Mitsubishi. A better times More Consumers would probably be quicker in paying for that new sweater car or washing machine. But Consumers heavily Laden with debt from the 1980s, have fallen behind on payments. Last week the american Bankers association said 2.73 percent of consumer Loans were at least 30 Days past due in the second Quarter. It was the fifth consecutive quarterly increase and nearly the highest level since 1980. Be capital said about $1 billion on its accounts Are delinquent. Last year the firm wrote off losses of $500 million. Among the entire $220 billion retail consumer credit Industry be capital estimates delinquencies at about $ 15 billion at the end of 1990, with losses of $8 billion. Gets software system grew from a management science project four years ago at the be research and development Center in upstate new York. The project targeted the growing complexities of debt collection. In developing the program called payment researchers tested the effectiveness of different strategies used to collect overdue accounts such As letters and Telephone Calls. Findings showed that about 20 percent of late payers just need another monthly Bill. Phone Calls did not always net the Best results. In some cases gentle reminders worked Best. One of the most effective methods was to address the problem Early when customers Are no More than a month behind in their payments. Be researchers then developed mathematical programming formulations that Combine up to 200 variables about the customer such As repayment history and amount due with data on the effectiveness of various strategies. The result said research Leader Makuch is a scientific determination of what actions should be used with each kind of customer. That could include sending out next months Bill making phone Calls sending letters or leaving taped messages. Be statistician Bill Makuch studies information on delinquent consumer  help pry rental deposits from landlords by Andree Brooks the new York times for thousands of tenants the Prospect of losing the Security Deposit for a rental dwelling usually a month s rent is daunting. The predicament is the same whether your landlord is a Large corporation or an individual. A a it a a huge category of problems Quot said Ralph Warner a san Francisco lawyer and author of tenants rights ii edition. Some landlords legitimately claim they kept the Security Money because the tenant damaged the property or left a mess behind. Still others explain that a Deposit was held because the tenant owed rent Money. Some however purposely drag their heels in returning a Security Deposit hoping the tenant will give up trying to get it Back. If a Security Deposit is withheld a tenant is not helpless. Here Are some Steps that can be taken a if the tenant is still living in the dwelling has paid the rent on time and has not caused any damage he or she might forestall trouble by withholding payment of the final months rent pending the return of the Deposit or in lieu of the Deposit. A Many people protect themselves that Way a said Deborah Davis a Manhattan lawyer specializing in landlord tenant issues. She cautioned however that to do so is technically a breach of the lease and could cause the landlord to take Legal action. A but As a practical matter they rarely do a she said. A tenants should walk through the apartment with the landlord or the landlords representative and draw up a detailed list of conditions before they sign a lease Warner advised. Ask the landlord to sign it. If he will not or if for some reason making such a list is impractical Warner recommended that the tenant take photographs of the vacant apartment before moving in and More photos when moving out. That Way the landlord cannot refuse to return the Deposit because the Rug was torn or windows were cracked if the tenant can prove the items were in that condition when he or she moved in. A hiring a lawyer to get the Money Back is rarely Worth the Cost. But for a Small sum a usually no More than $25 a you can Register your complaint in Small claims court. The number to Call can be found in the City or state government listings of the Telephone director under a a judicial or  the limit on the amount you can collect in Small claims court ranges from $2,000 to $5,000, depending on individual state Law. However it is usually enough to cover a Security Deposit. Warren a. Estis a new York City lawyer specializing in landlord tenant matters maintains that going to Small claims court works Best when the landlord is claiming damage to the unit or unpaid Bills As a rationale for holding the Security Money. A let the court decide a he said. Ii the landlord tails to show up for the hearing the tenant May win by default. Often the Mere threat of a court appearance May be sufficient to pry the Money Loose. A intervention by a regulatory authority is another Way to go. Complaints normally Are made in writing. Your local consumer affairs Bureau can steer you in the right direction. L etting the landlord know you have contacted the authorities or the courts y sending him copies of your complaint May be sufficient clout to Speed the Money on its Way. It works More often than you might think Warner said