Credit Report Disputes

Alabama insurance struggles: Disputes from tornadoes begin to gain traction

Across tornado-affected areas of Alabama, thousands of property owners are grappling with insurers about how much money they are owed to rebuild.

Already, nearly 500 people have contacted the state Insurance Department. State regulators now expect around 90,000 claims because of April’s storms , and even if the industry resolves 98 percent of them, there could be close to 2,000 disputes.

Many other people are likely to be left feeling burned, if only because they didn’t understand what was in their policy. Lawyers and consumer advocates advise people to treat their claim like a business negotiation or buying a car, and not to settle for whatever an insurer first offers.

"There are a lot of people who don’t dispute their claim that probably should," said Tina Nicholson, a lawyer for the Merlin Law Group. That Florida-based firm, which specializes in fighting insurers, has opened a Birmingham office to handle tornado disputes.

Alabama Insurance Commissioner Jim Ridling said that although insurers had trouble at first responding to the number of claims, things have improved. "The process, though bumpy in spots, is running pretty smoothly," he said last week.

Ridling said that initially, his department got inquiries about what a person’s policy covered or complaints about slow insurer response.

Now, though, the calls come from policyholders who don’t think insurers have offered them enough money.

SPECIAL REPORT

This article is part of a special series in which journalists from The Birmingham News, The Huntsville Times and the Press-Register in Mobile examine statewide issues related to insurance coverage following the deadly and devastating outbreak of tornadoes that struck Alabama on April 27, 2011.

LIVE CHAT: Got questions about insurance? State Insurance Department officials and representatives of the State Farm Cos. will take part in an online chat Tuesday, June 28, 2011, at 2 p.m. The following day at 2 p.m., ask questions of Amy Bach, the executive director of United Policyholders, a group that tries to help guide policyholders through the claims process. Join both chats at al.com , the online home of The Birmingham News, the Press-Register and The Huntsville Times.

In Alabama, disputes that linger will typically be resolved in one of three ways. Lawsuits could grind away for years, though a check last week of state and federal courts indicated no related actions as of yet. Other claims will end in state-sponsored mediation or a little-publicized form of arbitration called appraisal that’s included in most policies.

Dispute credit report start, creditors calling again! [dispute ...

What is the name of your state? Michigan

After the separation with ex I could not keep up with credit alone. I stopped paying all my credit cards, cell phone and even my car loan. My car was repo'd and everyone called me non-stop. At some point it stopped. The last time was PYMT was on every 1998th In Jan, 2002 I ran credit report and some were gathering, some were paid off. I did try to start clearing everything together, so I wrote the credit reporting agencies, ask the due for each account. After doing so, I got calls all over again! It has been four years since pymt made by the letter and inquiries about these accts. I have made them all start over again? If these on my credit report for 7 years? Or are they only there for 3 more? I will take care of them, but some of them, the monthly interest for the last 4 years and have more than doubled!

Thanks! Best Answer: If you pay off your old debts, they will not be removed from your credit report. As far as the 7 year mark starting all over again when debt buyers purchase the accounts:

According to the Fair Credit Reporting Act:

"§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. §1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection report by more than seven years."

If a debt buyer purchases your old debt, the 7 year mark should NOT start over again. If you have any debts on your credit report that have been "re-aged", dispute them with the credit reporting agency by pointing out the date that the original debt was first reported as deliquent. The credit reporting agency must investigate your claim. "Re-aging" is a violation of the Fair Credit Reporting Act and should be reported to the Fair Trade Commission.

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