Confessions of a Credit Repair Agency
Marc Chase asked:
Credit Repair is a very debated topic on the net right now as to whether it’s legal, effective, ethical and an avenue worth pursuing for individuals with negative, inaccurate or unverifiable information on their credit reports. No matter where you search, you will find varying opinions in regard the legitimacy of the credit repair industry, from the FTC and Attorney General, to debt consolidation companies and law firms practicing credit repair companies.
First off to answer the question “is credit repair and its practitioners legal,” the answer is yes! There is a specific body of legislation, the Credit Repair Organizations Act (CROA) that outlines how credit repair companies may legally operate. This Federal regulation is proof that the industry as a whole is legal and not a scam. I think the negative overtones are more likely a case of a few hundred bad apples taking advantage of people.
The second most debated topic in many of the popular credit forums is whether or not one should even use a credit repair company, or give it a go themselves? The art of credit repair or credit restoration is not necessarily a difficult one to grasp and despite what a lot of the credit repair companies and lawyers would like you to believe, there is no “magical, proprietary dispute letter.” Remember, the Fair Credit Reporting Act (FCRA) was set up so that consumers could fix errors on their credit reports on their own. It was not set up so consumers could fix errors If they had the magic letter. It really is almost as simple as saying…
“Hey this is not my account, please verify the information and remove from my report”
So why would you consider hiring a company to improve your credit score if it is so easy? The art of credit repair is not perfectly written letter, but more of knowing the little tricks credit bureaus and collection agents use to avoid eliminating the debt.
As much bad press credit repair agencies have received, bureaus and collection agencies are no angels either. They try and trick you, they don’t always follow procedure and we’ve seen numerous cases of them breaking promises consumers have made with them when negotiating debt.
Credit report repair agencies should be well versed and know what to expect and exactly how to negotiate through all the little tricks that the average consumer wouldn’t. If you are lucky enough to be working with an ethical company that does its job and at a good price, it can work wonders for your credit score.
The people we spoke with that do favor using an agency to fix their credit, do so because typically it’s only 30.00 to 50.00 per month and they just don’t feel like dealing with the headaches, nor do they want to be their own guinea pigs.
If you do make the decision you would rather leave it to the pros, what steps should you take to make sure you’re hiring the right company? At the time of writing this there is very little governing the industry outside of CROA and it is a craps shoot for the most part.
However, there is hope on the horizon. Currently a non-profit organization is being formed called the National Credit Repair Association (NCRA) This industry organization brings overdue legitimacy and integrity to the credit repair field, and represents all certified credit repair organizations. The idea is that accredited credit repair firms are overseen to ensure they embody top standards and ethics, and adhere to all applicable state and federal laws in their practices. In other words, the “BBB” of the Credit Repair Industry.
We highly recommend that you utilize this service when fully launched as it will force legitimate companies to sign up much like they would the BBB and it will also weed out the unscrupulous credit repair companies who do not wish to adhere to standards. The credit repair industry is a legal and much needed industry, but much like any “new fad” it’s going to take time to get regulated, weed out the scum and let the professionals rise to the top.
In closing, credit repair is something that most Americans will probably have to deal with at some point in their lives. It can be done by you with a little homework, accurate record keeping and patience, or you can hire a firm just as long as you’ve done your homework, insist the company is a member of The NCRA and make sure they are not breaking laws when dealing with your personal credit scores.
Credit Repair is a very debated topic on the net right now as to whether it’s legal, effective, ethical and an avenue worth pursuing for individuals with negative, inaccurate or unverifiable information on their credit reports. No matter where you search, you will find varying opinions in regard the legitimacy of the credit repair industry, from the FTC and Attorney General, to debt consolidation companies and law firms practicing credit repair companies.
First off to answer the question “is credit repair and its practitioners legal,” the answer is yes! There is a specific body of legislation, the Credit Repair Organizations Act (CROA) that outlines how credit repair companies may legally operate. This Federal regulation is proof that the industry as a whole is legal and not a scam. I think the negative overtones are more likely a case of a few hundred bad apples taking advantage of people.
The second most debated topic in many of the popular credit forums is whether or not one should even use a credit repair company, or give it a go themselves? The art of credit repair or credit restoration is not necessarily a difficult one to grasp and despite what a lot of the credit repair companies and lawyers would like you to believe, there is no “magical, proprietary dispute letter.” Remember, the Fair Credit Reporting Act (FCRA) was set up so that consumers could fix errors on their credit reports on their own. It was not set up so consumers could fix errors If they had the magic letter. It really is almost as simple as saying…
“Hey this is not my account, please verify the information and remove from my report”
So why would you consider hiring a company to improve your credit score if it is so easy? The art of credit repair is not perfectly written letter, but more of knowing the little tricks credit bureaus and collection agents use to avoid eliminating the debt.
As much bad press credit repair agencies have received, bureaus and collection agencies are no angels either. They try and trick you, they don’t always follow procedure and we’ve seen numerous cases of them breaking promises consumers have made with them when negotiating debt.
Credit report repair agencies should be well versed and know what to expect and exactly how to negotiate through all the little tricks that the average consumer wouldn’t. If you are lucky enough to be working with an ethical company that does its job and at a good price, it can work wonders for your credit score.
The people we spoke with that do favor using an agency to fix their credit, do so because typically it’s only 30.00 to 50.00 per month and they just don’t feel like dealing with the headaches, nor do they want to be their own guinea pigs.
If you do make the decision you would rather leave it to the pros, what steps should you take to make sure you’re hiring the right company? At the time of writing this there is very little governing the industry outside of CROA and it is a craps shoot for the most part.
However, there is hope on the horizon. Currently a non-profit organization is being formed called the National Credit Repair Association (NCRA) This industry organization brings overdue legitimacy and integrity to the credit repair field, and represents all certified credit repair organizations. The idea is that accredited credit repair firms are overseen to ensure they embody top standards and ethics, and adhere to all applicable state and federal laws in their practices. In other words, the “BBB” of the Credit Repair Industry.
We highly recommend that you utilize this service when fully launched as it will force legitimate companies to sign up much like they would the BBB and it will also weed out the unscrupulous credit repair companies who do not wish to adhere to standards. The credit repair industry is a legal and much needed industry, but much like any “new fad” it’s going to take time to get regulated, weed out the scum and let the professionals rise to the top.
In closing, credit repair is something that most Americans will probably have to deal with at some point in their lives. It can be done by you with a little homework, accurate record keeping and patience, or you can hire a firm just as long as you’ve done your homework, insist the company is a member of The NCRA and make sure they are not breaking laws when dealing with your personal credit scores.
Categories: Credit Tags: Bad Apples, Credit Bureaus, Credit Repair Organizations
The Fundamentals of Credit Repair Success
Jim Kemish asked:
You Can Achieve Real Credit Repair Success
There are several important issues to consider before starting your credit repair effort. The time you invest in preparation will save you time and effort, and more importantly, insure that you get the results you deserve from your credit repair project. Take a moment, plan your approach, and proceed thoughtfully. You will succeed!
Make Your Payments on Time
If you are currently not able to keep up with your existing obligations, credit repair is not the right option for you. Before starting a credit repair effort your finances should be stabilized and you should be able to pay your bills on time. There is no point in cleaning up your credit report while derogatory events continue to occur. If you are having trouble paying your bills you should investigate other options, including consumer credit counseling and debt negotiation. You should also consider consulting a bankruptcy attorney.
Get Your Credit Reports
You will need all three reports from the major CRAs (credit reporting agencies) for your credit repair project; they are Experian, Equifax, and TransUnion. You can get them for free at AnnualCreditReport.com, but I am sorry to say that I advise against this option, as it is difficult and frustrating. And in the end, should you succeed, you will have three credit reports in different formats, and all about as clear to the layman as reading Chinese. I suggest purchasing a nice tri-merged report. They are easily available on the Internet and should cost less than $20. A good investment in your credit repair success.
Get Your Credit Scores, Maybe
It seems like a nice idea to obtain your credit scores at the outset of your credit repair project so you can track the progress of this important number. Should you choose to do this, you need to be aware of a controversial battle between the credit bureaus and Fair Isaac Corp, the developer of the FICO scoring model. Lenders purchase FICO scores from the credit bureaus to make loan decisions. The credit bureaus, however, will not sell these genuine FICO scores to consumers. Instead they have created their own scores which are meant to mimic the behavior of FICO scores. Unfortunately, they often differ by as much as 100 points. At the moment consumers can purchase genuine FICO scores for their Equifax and TransUnion reports directly from Fair Isaac at MyFICO.com. A single Equifax FICO score is available at Equifax.com. Experian FICO scores are not available to the public.
Read the Fair Credit Reporting Act
You cannot hope to succeed at credit repair without knowing the compliance requirements imposed on the credit bureaus. These requirements are codified in the Fair Credit Reporting Act (FCRA). Many people starting a credit repair program assume that it is only necessary to spot and dispute the obvious derogatory errors. If you make this mistake you are likely to leave half of your potential improvement untapped. If you take the time to grasp the essential reporting guidelines of the FCRA you will gain the legal leverage you need to get the credit repair results you deserve.
Read the Fair Debt Collection Practices Act
If you have any collection issues at all you will need a working knowledge of the Fair Debt Collection Practices Act (FDCPA). This is not a difficult read and will give you a significant advantage in dealing with both active collections as well as dormant collection accounts on your credit report. Armed with your legal rights you will be able to stop collectors from bothering you, force them to validate their legitimacy, provide you with an accounting of the debt, and force them to remove erroneous and outdated entries from your credit report.
Learn Your Statutes of Limitation
Statutes of limitation define the time limit for collectors to enforce collection of a debt through the court system and are an essential tool in your credit repair arsenal. A statute of limitation (SOL) has no bearing on the reporting period limits that the CRAs are required to enforce. Reporting period limits are generally seven years for derogatory events, whereas SOLs are often as short as three years. When an SOL has expired, a collector has no way to enforce the collection of a debt. This gives you a powerful credit repair advantage; you may opt to ignore the debt with no fear of being sued, or you may choose to negotiate a very favorable payoff.
Consider Professional Help
If you are going to manage your own credit repair effort you must invest the time in understanding your rights and the compliance requirements of all parties involved in the reporting process. But if you decide that you cannot manage the effort it takes to manage the credit repair task properly you should hire a professional. Should you decide on this path I suggest that you write down a list of questions relevant to your case and call several reputable credit repair services and interview them. Choose the company that you are comfortable with and put them to work. Good luck!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
You Can Achieve Real Credit Repair Success
There are several important issues to consider before starting your credit repair effort. The time you invest in preparation will save you time and effort, and more importantly, insure that you get the results you deserve from your credit repair project. Take a moment, plan your approach, and proceed thoughtfully. You will succeed!
Make Your Payments on Time
If you are currently not able to keep up with your existing obligations, credit repair is not the right option for you. Before starting a credit repair effort your finances should be stabilized and you should be able to pay your bills on time. There is no point in cleaning up your credit report while derogatory events continue to occur. If you are having trouble paying your bills you should investigate other options, including consumer credit counseling and debt negotiation. You should also consider consulting a bankruptcy attorney.
Get Your Credit Reports
You will need all three reports from the major CRAs (credit reporting agencies) for your credit repair project; they are Experian, Equifax, and TransUnion. You can get them for free at AnnualCreditReport.com, but I am sorry to say that I advise against this option, as it is difficult and frustrating. And in the end, should you succeed, you will have three credit reports in different formats, and all about as clear to the layman as reading Chinese. I suggest purchasing a nice tri-merged report. They are easily available on the Internet and should cost less than $20. A good investment in your credit repair success.
Get Your Credit Scores, Maybe
It seems like a nice idea to obtain your credit scores at the outset of your credit repair project so you can track the progress of this important number. Should you choose to do this, you need to be aware of a controversial battle between the credit bureaus and Fair Isaac Corp, the developer of the FICO scoring model. Lenders purchase FICO scores from the credit bureaus to make loan decisions. The credit bureaus, however, will not sell these genuine FICO scores to consumers. Instead they have created their own scores which are meant to mimic the behavior of FICO scores. Unfortunately, they often differ by as much as 100 points. At the moment consumers can purchase genuine FICO scores for their Equifax and TransUnion reports directly from Fair Isaac at MyFICO.com. A single Equifax FICO score is available at Equifax.com. Experian FICO scores are not available to the public.
Read the Fair Credit Reporting Act
You cannot hope to succeed at credit repair without knowing the compliance requirements imposed on the credit bureaus. These requirements are codified in the Fair Credit Reporting Act (FCRA). Many people starting a credit repair program assume that it is only necessary to spot and dispute the obvious derogatory errors. If you make this mistake you are likely to leave half of your potential improvement untapped. If you take the time to grasp the essential reporting guidelines of the FCRA you will gain the legal leverage you need to get the credit repair results you deserve.
Read the Fair Debt Collection Practices Act
If you have any collection issues at all you will need a working knowledge of the Fair Debt Collection Practices Act (FDCPA). This is not a difficult read and will give you a significant advantage in dealing with both active collections as well as dormant collection accounts on your credit report. Armed with your legal rights you will be able to stop collectors from bothering you, force them to validate their legitimacy, provide you with an accounting of the debt, and force them to remove erroneous and outdated entries from your credit report.
Learn Your Statutes of Limitation
Statutes of limitation define the time limit for collectors to enforce collection of a debt through the court system and are an essential tool in your credit repair arsenal. A statute of limitation (SOL) has no bearing on the reporting period limits that the CRAs are required to enforce. Reporting period limits are generally seven years for derogatory events, whereas SOLs are often as short as three years. When an SOL has expired, a collector has no way to enforce the collection of a debt. This gives you a powerful credit repair advantage; you may opt to ignore the debt with no fear of being sued, or you may choose to negotiate a very favorable payoff.
Consider Professional Help
If you are going to manage your own credit repair effort you must invest the time in understanding your rights and the compliance requirements of all parties involved in the reporting process. But if you decide that you cannot manage the effort it takes to manage the credit repair task properly you should hire a professional. Should you decide on this path I suggest that you write down a list of questions relevant to your case and call several reputable credit repair services and interview them. Choose the company that you are comfortable with and put them to work. Good luck!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Categories: Credit Tags: Credit Bureaus, Equifax, Lenders
The Gift of Credit Repair
Jim Kemish asked:
Credit Repair Just For You
The holidays are a time of giving, and a time for reflection. If you have credit issues credit repair might be the perfect gift to give yourself. But how should you get started? You can manage your own credit repair project, or you can hire a reputable credit repair service to do the work for you. Both options are reasonable, but which is right for you?
Starting Credit Repair on Your Own
Managing your own credit repair project can be very rewarding, but it will take some time and effort. Every single do-it-yourself advocate in the credit repair field will tell you the same thing; don’t do anything until you have done your homework. You may do more damage than good. So pick up a good credit repair book and settle in for a nice mid-winter’s read. Proper preparation will avert problems and insure credit repair success.
Get a New Frame of Mind
If you are going to manage your own credit repair project, it is essential that you embrace a whole new frame of mind about your credit report. In a nutshell, don’t believe your eyes. That’s right; it’s time for you to give yourself the benefit of the doubt. One of the worst mistakes you can make is to ignore derogatory items on your credit report simply because they look familiar. The vast majority of errors on credit reports are generated by real events and will look familiar, but should not be reported as a matter of law. As you take the time to educate yourself about credit repair you will understand how common these terrible errors are, and what you need to do to correct them.
Get Organized
Another great tip for anyone about to start the credit repair process is to get organized. You will need to dispute your issues with all three credit bureaus individually, so it is essential to treat each bureau as a separate project. Set up three files, one for each bureau and plan on keeping meticulous records of all correspondence. Examine each report individually and you will notice some surprising differences that you must incorporate into your credit repair efforts. You may be surprised to see that the bureaus often report different account numbers for the same accounts, and even different variations of creditor names. For the best results customize each bureau dispute to match the info they report.
Don’t Give Up
A final word of wisdom for your do-it-yourself credit repair project, don’t give up. If the item you disputed is verified you should re-dispute it. You have the legal right to demand that the credit bureau request proper research by the creditor. If you re-dispute an item raise your voice! As your studies continue you will learn all about your legal rights under the Fair Credit Reporting Act. Most good books on credit repair will point out that the credit bureaus won’t do much for you voluntarily. You must become your own advocate. Prepare to stand your ground.
Brush up On Collection Laws
Another tip of value is to familiarize yourself with your rights under the Fair Debt Collection Practices Act. Most decent credit repair books will include a section on dealing with collectors. If you ever had an account charged-off, or currently have any active collections make sure to read carefully. If you know your rights you can deal with collectors from a position of power, and that can make a world of difference in your credit repair project.
Or Hire a Credit Repair Service
If all of this is too much, if you have enough on your mind already, just hire a credit repair service. Just take the time to check them out, look at their Better Business Bureau rating, consider their years in business, and most important give them a call. I suggest you make a list of questions and have a chat. Hire someone you feel comfortable with and let them guide you through the maze to credit repair success. You can do it! Good luck!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Credit Repair Just For You
The holidays are a time of giving, and a time for reflection. If you have credit issues credit repair might be the perfect gift to give yourself. But how should you get started? You can manage your own credit repair project, or you can hire a reputable credit repair service to do the work for you. Both options are reasonable, but which is right for you?
Starting Credit Repair on Your Own
Managing your own credit repair project can be very rewarding, but it will take some time and effort. Every single do-it-yourself advocate in the credit repair field will tell you the same thing; don’t do anything until you have done your homework. You may do more damage than good. So pick up a good credit repair book and settle in for a nice mid-winter’s read. Proper preparation will avert problems and insure credit repair success.
Get a New Frame of Mind
If you are going to manage your own credit repair project, it is essential that you embrace a whole new frame of mind about your credit report. In a nutshell, don’t believe your eyes. That’s right; it’s time for you to give yourself the benefit of the doubt. One of the worst mistakes you can make is to ignore derogatory items on your credit report simply because they look familiar. The vast majority of errors on credit reports are generated by real events and will look familiar, but should not be reported as a matter of law. As you take the time to educate yourself about credit repair you will understand how common these terrible errors are, and what you need to do to correct them.
Get Organized
Another great tip for anyone about to start the credit repair process is to get organized. You will need to dispute your issues with all three credit bureaus individually, so it is essential to treat each bureau as a separate project. Set up three files, one for each bureau and plan on keeping meticulous records of all correspondence. Examine each report individually and you will notice some surprising differences that you must incorporate into your credit repair efforts. You may be surprised to see that the bureaus often report different account numbers for the same accounts, and even different variations of creditor names. For the best results customize each bureau dispute to match the info they report.
Don’t Give Up
A final word of wisdom for your do-it-yourself credit repair project, don’t give up. If the item you disputed is verified you should re-dispute it. You have the legal right to demand that the credit bureau request proper research by the creditor. If you re-dispute an item raise your voice! As your studies continue you will learn all about your legal rights under the Fair Credit Reporting Act. Most good books on credit repair will point out that the credit bureaus won’t do much for you voluntarily. You must become your own advocate. Prepare to stand your ground.
Brush up On Collection Laws
Another tip of value is to familiarize yourself with your rights under the Fair Debt Collection Practices Act. Most decent credit repair books will include a section on dealing with collectors. If you ever had an account charged-off, or currently have any active collections make sure to read carefully. If you know your rights you can deal with collectors from a position of power, and that can make a world of difference in your credit repair project.
Or Hire a Credit Repair Service
If all of this is too much, if you have enough on your mind already, just hire a credit repair service. Just take the time to check them out, look at their Better Business Bureau rating, consider their years in business, and most important give them a call. I suggest you make a list of questions and have a chat. Hire someone you feel comfortable with and let them guide you through the maze to credit repair success. You can do it! Good luck!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Categories: Credit Tags: Credit Bureaus, Mid Winter, New Frame