Credit Counseling Program Helps Consumers Find and Fix Credit Reporting Errors

Unique program piloted by Springboard Nonprofit Consumer Credit Management and AMC Mortgage Services, Inc, offers incentives and phone-based counseling that teach consumers strategies for improving their credit score

Riverside, CA; Irvine, CA (PRWEB) September 30, 2006 -- Springboard Nonprofit Consumer Credit Management and AMC Mortgage Services, Inc, announced today the initial findings of a unique Credit Education pilot project for homeowners. Results of the program showed that virtually all of the participants were able to improve their credit scores by correcting inaccurate information on the credit reports and managing their credit more effectively.

“The results on this pilot project show that consumers can improve their credit scores by taking proactive steps to be well-informed about their credit report and correcting old or outdated information,” said Springboard President Dianne Wilkman. “Making sure a credit report is accurate and following some simple credit management techniques can have a real positive impact on one’s credit score.”

The program, funded by a one-year grant from AMC and administered by Springboard, offers personal credit report and score reviews, financial education on budgeting and money management, and assistance with dispute of credit report inaccuracies to selected AMC clients, at no cost to participants.

AMC contacted thousands of its customers via direct mail offers and outbound calls and offered a variety of incentives for program participation, resulting in a nearly 89% initial acceptance rate for those interested in the program.

The education sessions were conducted via phone with Springboard’s certified credit counselors, who were able to pull credit reports on demand and discuss details with the consumers, as well as provide personalized action plans. Each participant will be tracked for a year, with three follow up counseling appointments and three more credit report reviews. Dispute results and score improvements are captured at each appointment and progress tracked.

Findings at the program’s mid-year point indicate that 96% of the initial participants had outdated or inaccurate items on their credit reports, and these were disputed directly with credit bureaus for removal. In addition, participants made positive changes in their financial lives, such as bringing credit accounts current, paying down debt, and refraining from taking on new credit. The combination of updated reports and modified consumer behavior raised participant’s credit scores by an average of 17 points in the first quarter.

“We are very pleased with the positive effect this has had on our client’s credit scores, and their enthusiastic response to the program,” said Jane Johnson, Executive Vice President of Loan Servicing, AMC Mortgage Services. “Clearly, it’s more than just making sure that credit reports are accurate -- it’s also educating our customers on the steps they need to take to improve their credit through their own money management. These are skills that will help them over the long-term.”

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