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What is a soft inquiry?

A soft inquiry is an informal classification of a credit check. It includes any type of consumer credit pull in which the score is exempt from penalty. This is the opposite of a hard inquiry, in which the consumer would normally be penalized for the credit check. Continue reading

What is a promotional inquiry?

A promotional inquiry is a credit check by a lender for the purpose of soliciting your business. It is normally a result of your name appearing on a marketing list that was sold by one of the three main credit bureaus. Continue reading

What is a hard inquiry?

A hard inquiry is any credit check that results in a penalty. It represents an attempt to obtain debt by applying for a credit account. It is distinguished in this way from soft inquiries, which include all other credit checks absent of an attempt to open new credit. Continue reading

Credit Bureau Collection Services Fined for Violating Federal Laws

Credit Bureau Collection Services and its officers, Brian Striker and Larry Ebert, have been charged with violating consumer protection laws through illegal debt collection tactics. As a result, the company will pay a $1.1 million civil fine to the Federal Trade Commission. Continue reading

Review of Briesch Debt Settlement Study

Dr. Richard A. Briesch, PhD authored a study into debt relief programs titled Economic Factors and the Debt Management Industry on August 6, 2009. His conclusion was only a vague assertion that debt settlement provided greater consumer welfare than debt management plans. However many of his findings contradict those of regulators and consumer protection advocates. This review of his white paper shows the source of this misinformation, an incomplete set of client data. The result is a cleverly crafted white paper that appears to provide academic support for debt settlement companies and the plans they administer.

Debt settlement companies have been very quick to refer prospective clients to this study, since it appears to provide academic support for their activities. See how the following review of Briesch’s study yielded a much bleaker picture about the state of debt settlement companies.

Download the Review of Briesch Debt Settlement Study: Economic Factors and the Debt Management Industry.