Ask Liz Weston

Get smart with your money

q&a

Q&A: How to get results when you complain to your mortgage company

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Dear Liz: Last year my mortgage was sold to another company. I didn’t know that I had a new loan number, so my automatic payments weren’t posted properly. With the help of my bank, I was able to sort this out but not before the new company reported me as delinquent to the credit bureaus. I have never been late with a payment in 15 years.

I pleaded with the company to remove the delinquency from my credit report, but they declined, saying their records show that they fulfilled their obligation by notifying me that they are my new lender. Do I have any recourse and what are my options in getting this delinquency removed from my credit report?

Answer: You can try disputing the delinquency with the credit bureaus, but that is a highly automated process. The company may check its records and respond to the bureaus as it did to you, refusing to remove the black mark. It’s worth a shot, but far from guaranteed.

You most likely will need to get to the right human being to help you. Sometimes when you run into a brick wall with customer service, you can turn things around by appealing to someone’s expertise. Asking the customer service rep, “If this happened to you, what would you do to fix it?” may get you pointed in the right direction.

Of course, you may have been talking to a call center worker with little training and even less authority. If that’s the case, ask to speak to the manager. You might also write a letter to the company’s chief executive, asking directly for help.

Another option is to involve regulators. Filing a complaint with the Consumer Financial Protection Bureau or your state attorney general may get results.

A single missed payment can knock more than 100 points off good credit scores, plunging you into the “average” category and causing you to pay more for such things as credit card interest, insurance and cellphone coverage. It may take considerable effort, but it’s worth fighting back.

Q&A: Moving for cheaper foreign healthcare can be stressful

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Dear Liz: My husband is 55 and we are hoping to retire in five years. That gives us time to clean up our outstanding debt (the house, car and credit card debt from medical bills). We have a little over $1 million saved. He was recently offered early retirement but didn’t take it because of our debt and my health problems. I have end-stage liver disease and recovered from liver cancer. I have been collecting disability for a while.

I’m doing relatively well for my condition. However, at any time my health can take a bad turn. So I was interested in what you said about living in other countries to get affordable healthcare. If we were to do that, how long would we need to live there to qualify for healthcare? Should we talk to a tax preparer and financial advisor?

Answer: Residency requirements to qualify for public healthcare vary by country, said Kathleen Peddicord, founder of the international living site Live and Invest Overseas. “In some cases it’s instant, in others it could take years,” she says.

In most countries, anyone who is employed or self-employed can instantly access the public system. Some countries allow non-workers to opt into this system by volunteering to pay into it, but there may be restrictions for those with pre-existing conditions. If you’re collecting Social Security disability, you probably have Medicare, but that coverage typically doesn’t extend abroad.

Expatriates in good health can use an international medical plan to bridge any gaps in coverage, but those policies also typically exclude preexisting conditions. You might have to settle for a more limited travel medical plan that would expire after six months and need to be renewed, she said. Given your serious health issues, that could be problematic.

Then there’s the potentially enormous stress of moving to a foreign country, adapting to a different culture and possibly learning a new language. Even in countries with excellent healthcare, finding specialists who can help you manage your condition, and who can communicate clearly with you, can be a hassle.

If you can find advisors familiar with life in the country of your choice, that could be helpful, but you’ll probably be doing a lot of research on your own. Before you decide to move, you should make at least one and preferably a few trips to the country to get a better idea of the challenges.

Q&A: Reporting Social Security fraud

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Dear Liz: You’ve written about Social Security survivor benefits and how after one spouse dies, the other gets only one check, which is supposed to be the larger of the two the couple previously received. I know a woman who is still collecting both her own and her deceased husband’s check. How is that possible?

Answer: That can happen if the death wasn’t properly reported to the Social Security Administration. Continuing to collect and cash the dead person’s checks is fraud. You can report it by calling Social Security’s fraud hotline at (800) 269-0271 from 10 a.m. to 4 p.m.

Q&A: Do credit scores punish you for not carrying debt?

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Dear Liz: I am fortunate to be able to afford homeownership without having to obtain a mortgage. The same is true of owning cars without a car loan. I pay my credit card bills in full each month. In short, I do not carry any debt.

However, it seems to me that I am being “punished” by not carrying a load of debt. My credit score is reduced by this lack of debt and I am wondering why this is.

Answer: The most commonly used credit scores don’t “know” if you’re carrying credit card debt or not. The balances used in credit score calculations are the balances the card issuers report to the bureaus on a given day (often your statement balances). You could pay the balance off the next day, or carry it for the next month, and it would have no impact on your scores.

A small part of credit scoring formulas measure your mix of credit, or whether you have both revolving accounts (such as credit cards) and installment loans (mortgages, car loans, student loans, etc.) You may get higher scores if you added an installment loan to your mix. If your scores are low, it can be worth adding a small personal loan to boost them. If your scores are good, though, it may not be worth the effort and interest expense.

Q&A: Social Security spousal benefits

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Dear Liz: In a recent article, you mentioned spousal benefits. If someone started her own Social Security benefit at 62, is there no way of drawing a spousal benefit at a later date?

Answer: When you apply for Social Security now, you’re “deemed” (considered by the Social Security Administration) to be applying for both your own benefit and any available spousal benefit. If a spousal benefit is larger, you’ll get that, and you can’t switch back to your own benefit later.

You may be able to switch from your own benefit to a spousal benefit, however. Let’s say that when you applied at 62, your spouse had not yet applied for his or her own benefit. When he or she does apply, you’ll be automatically switched to a spousal benefit if it’s larger than your own.

Before Congress changed the rules, it was possible for one spouse to “file and suspend” — file and immediately suspend an application for retirement benefits, which was enough to allow a spouse to collect a spousal benefit. Today, a spousal benefit is typically only available if the primary earner has started his or her own retirement benefits.

Q&A: The fat in your genes/jeans

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Dear Liz: In one of your recent answers, you said “avoiding obesity” was part of choosing healthier lifestyles. The problem with that statement is that a large percentage of people cannot avoid obesity, because obesity is “wired” into their genes or otherwise into their personal biological makeup. People range all over the spectrum. I personally knew a guy who would normally eat four Double Double burgers plus fries when he ate at In-N-Out Burger, and he didn’t exercise, but he was trim as a telephone pole. But guys in my family have large lumps of extra fat on their bodies, even if we don’t eat that much.

Your casual mention unfortunately reinforced the false notion that people who have obese bodies always are that way because they eat poorly or too much, while people with trim bodies are always that way because they eat wisely and exercise. That false notion just makes life harder for those of us who have obesity regardless of how we eat. I’m sure you didn’t intend to make my life more difficult at all, but that’s the effect that such casual allusions have. It would be best to stick with unassailable phrases such as “eating wisely.”

Answer: Some people definitely are blessed with faster metabolisms, and research indicates that others have a genetic predisposition to packing on weight. But obesity is largely preventable, according to the World Health Organization and other medical authorities.

The WHO recommends that individuals limit the fats and sugars they eat, increase consumption of fruit and vegetables, as well as legumes, whole grains and nuts; and engage in regular physical activity (60 minutes a day for children and 150 minutes spread through the week for adults). Programs such as Weight Watchers or 12-step groups such as Overeaters Anonymous can help provide support. You may never be skinny, but you can definitely take steps to improve your health.