Tuesday, October 9, 2007

Is Credit Repair Legal?

One question that gets asked to me often is "Is credit repair legal?" My answer is always the same. Yes! It is legal. Not only is it legal, it is your right as a consumer, and owner of the information reported about you on your credit report.

Why do people have doubts about the legality of repairing their credit? Well, mainly because the credit bureaus spend a lot of money confusing people about changing or improving their credit reports. They want to deter as many consumers as possible. Why? Why else? It always boils down to one thing. MONEY! 2 things actually. The second one is money also, but let's call it what it is. PROFIT. Whose profit? The credit bureaus!

I've written before what their main purpose is, it is to make money! They make more money selling the information of consumers with bad credit than those with good credit. This is because there are many lenders or credit card companies that want to extend credit to people with poor credit. Sounds crazy, but again, it comes down to MONEY!

Who are they going to make more money off of? The consumer with good credit who pays their bills off every month, and who also gets a very low interest rate? Or, the consumer with not so great credit, several accounts with late pays? It's obvious. They will make more money off of the consumer with poor credit.

Usually the consumer with poor credit could use another credit card. They are usually short on money. So, in exchange for a new credit card, that consumer will pay a higher interest rate - more money for the creditor. They will most likely make a few late payments - ooooooh, lots more money for the creditor! They may even go over their credit limit - ooooh, ooooh, more money again for the creditor! Then the icing for the creditor - cash advances! The consumer better pay this one off fast because in addition to the regular interest rate the consumer has on that card, they get charged an additional fee and interest rate for the cash advance. Plus, the creditor will not apply anything to the other balance on the card until the cash advance and the accumulating fees are paid off! The price of a cash advance is so high, I consider it to be legal loan sharking!

So back to credit repair being legal. You have a right to challenge ANYTHING on your credit report that you don't think is accurate. There have been laws written regarding your credit: how it's reported, how long it can be reported, the accuracy of the reporting, and so much more. What is most important to know about these laws is that they are written to PROTECT THE CONSUMER!!!

Here are the main groups of laws and a short description of some of what they do:
The Fair Credit Reporting Act (FCRA)- This act is mainly for the credit bureaus but furnishers of the information must comply with it also. This act details what can be reported, how long it can be reported, how it can be reported, how it can be changed or removed. It forces the credit bureaus to maintain accurate information.
The Fact Act (FACTA)- This act entitles you to a free credit report every year. It also forces the credit bureaus to disclose the factors that are affecting your FICO scores.
The Fair Credit Billing Act (FCBA)- This act is for original creditors. It forces them to bill correctly, notify the consumer correctly, handle disputes properly, and report accurately.
The Fair Debt Collections Practices Act (FDCPA)- This act is for 3rd party creditors, or what we call collectors. In some states, original creditors have to adhere to this act also. California is one of those states. This act says what collectors can and cannot do when attempting to collect a debt. It also includes rules they have to follow in reporting information to the credit bureaus.

Each of these acts states your rights as a consumer. Each act has multiple sections for different things that affect your credit. When repairing your credit, you can just dispute what you think is inaccurate. The credit bureaus will even give you forms to fill out. But that's not the best way to repair your credit. A better way is to get to know the laws that are written to protect you and use them in your disputes to force them to behave according to the law.

It is in your best interest to let them know you're no dummy who will just take what they say as fact. They stall, lie, break laws all the time. They are repeatedly sued. Sure, sometimes they win, but many, many times, they have been found to be in violation of the law. Multiple laws actually. Many times the court cases become case law. Then, in your disputes, you can quote these case laws to them to intensify your demand to correct or delete your bad credit.

You can repair your credit. Even if you remember that some of the bad stuff might be yours. Is it accurate though? 100% accurate? It has to be. The dates have to be 100% correct. The amount has to be 100% correct. The category, account number, everything has to be 100% correct. Above that, guess what? Whether it is or isn't 100% accurate, YOU HAVE THE RIGHT TO DISPUTE IT! Here's the clincher - this excites me! The creditor reporting the information has the BURDEN OF PROOF!!!! They HAVE to PROVE it or REMOVE it! Isn't that fantastic!

It's very hard to affordably get back up on your feet and start rebuilding if all you're going to get is high interest rates, expensive annual fees and rejection because of old negative credit. You can listen to the propaganda of the bureaus. You can wait 7 to 10 years and hope they remember to take the old crap off. Or, you can start attacking the information reported about you and forcing them to remove it. You can force them to prove what they submit and report about you or remove it NOW!

Credit repair doesn't happen overnight. It takes commitment and passion for good credit. It takes time, knowledge, drive. You can do it yourself. If you don't want to take the time to dispute or invest in learning the laws written to protect you, I would love to fight for you!

I love going up against collectors, creditors and bureaus. I love challenging them. I know many of the laws and use them. I love researching the laws and statutes of limitations to protect the rights of consumers. I love creating unique, original letters using different laws to force them to return a credit report back to my clients with deletes on it! It is boring for some, but I get a kick out of it. I get excited for my clients. I love seeing the little guy come out on top of the money grubbing credit bureaus, collectors and creditors. I'm thrilled every time I help my clients stick it to them!

Contact me Now! Go up to the top of this page and in the right hand corner you will see how to contact me. Contacting me is easy and fast. I want to fight for you. You can improve your credit if you just decide to start and take the action now!

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