How To Remove Judgments and Bankruptcy / BK From Your Credit Report

Have  you searched everywhere online to find out how to remove judgments or a bankruptcy and asked all kinds of people, self proclaimed credit repair specialists or mortgage brokers, real estate agents, YouTube videos, DIY articles, answer websites, and other places?  If you've run into anything that is slightly related to the credit bureaus or strongly related to them, such as the bureau sites themselves, or credit report sites, or the FTC website, you will get the same regurgitated answers.  They will always tell you they have to stay on for 10 years. Hogwash, I declare!  I dare one of them to show me the law that says it has to stay on there that long.  In fact, that's almost the opposite of what the law says.

If you read articles and ads from credit repair sites, they will stop short of telling you how they do it because they want your business.  Oh, and the FTC doesn't want your business, but it sure seems like they want to help the bureaus make money off of you.  They prefer to deter you from getting help from someone who knows how by saying you should never pay someone because you can do it yourself.  Of course there's always the sites that are promoting the annoying Lexington "Law" type credit repair sites.  Click on that link, which is pretty much always an affiliate link, and someone's gonna make money off of you.  "Law firm" credit sites will tell you they take them off all the time but they are not interested in helping you learn how to do it because they want to make a couple thousand bucks off of you, or maybe just a grand before you get fed up and cancel months down the line.

I'm gonna tell you how to do it.  But first, one more thing.  The law about how long it has to stay on there. The FCRA says that negative accurate information CAN stay on NO LONGER than 7 years plus 180 days from the date of first delinquency and 10 years for things like judgments and bankruptcies.  See how they spin it to make you feel defeated?  I really get irritated with the misinformation and spin they all put out there.  And if you really want to help people get rid of negative items off their credit, why don't you give them the information if you're such an expert?  Are you really that worried that you will lose customers if you help people who want or need to do it themselves?  What? Are there really so few people out there with bad credit that you have to grab everyone you can?  Puhleeease!  Seems to me there are millions of people out there that need help with their credit.  There's enough work to go around while still helping those who want to do it on their own.

Okay, removing these items is for the most part, a 3 step process.  I'm not saying it works all the time, but if the bureaus would obey the law, it would work 100% of the time.  However, you will have a much higher chance of success if you do it this way.

Step 1:  Send a letter to the credit bureaus that are reporting the judgments and/or bankruptcy and tell them that you do not have a judgment or BK for $XXX dollars. Don't lie about the amount.  Now, if the amount is 100% correct, to the penny, remember, they don't report the change (35 cents, etc.) so if there's any change noted in the judgment at the courthouse, what is reported on your credit report is an error.  Same thing for BK. Usually I see bankruptcy reporting with $0.  Really?  $0 liability? Why on earth would someone file if they owed nothing?  If the public record is actually reporting a correct amount, then use a different mistake.  If you can't find one, make up something by claiming you "don't recall" having a bk or judgment on 01/01/2008 or whatever date. Not recalling the exact date that the county recorder entered into the record is not a lie, its a spin.  They have the burden of proof.  Also, many times they list the wrong court house.  Make sure you look at that also.  Okay, so that's the first step.  Dispute the negative judgment or bk (or both) with the credit bureaus.

Step 2:  Take a look at the address for the court for who is supposedly furnishing the information.  Judgments are usually county or local courts, bankruptcies are in federal court.  You need to write a letter to each of the clerks of the courts that are supposedly furnishing the information to the credit bureaus.  I keep saying "supposedly" because really they are not furnishing the information 99.99% of the time.  This letter you send the clerk is very basic.  You say, Dear Clerk of the Court,  I recently disputed information that was on my credit report that is not reporting accurately.  They verified the information and have told me I need to contact the furnisher of the information.  I am requesting that you send me your procedure for verifying information with the credit bureaus.  Thank you for your assistance.   Sincerely, pissed off consumer.  Okay, maybe you're not pissed off but in my opinion, you have every right to be!  Do not wait until you get the response from the bureaus to send this out.  Send it out at the same time as your bureau dispute to shorten the time for getting it off your credit report.

Step 3.  You now received the letter back from the clerk of the court.  Holy cow! It says that they do not verify with the credit bureaus. What a shock!  This means that those blood suckers are going to be sending you a credit report with a big fat lie on it!  Be prepared.  Now, you also get back the response from the credit bureaus, and you're gonna get it and say, "Shannon was absolutely right!  Now there's a real expert" - haha, just kidding!  But, 99.99% of the time, I will be right.  You may be a lucky one who got a data entry peon who felt like deleting just because, and that is great!  But for the rest of you victims, the report will claim it is verified and contact the furnisher of the information.  Its time for the 3rd action.  You send back a letter to the bureaus.  You say, "I sent you a dispute because this information is not accurate.  You verified it.  Please see the enclosed letter from the clerk of the court. You lied about verifying it with them. Further, please see the letter from the legal counsel for the FTC that I have enclosed.  I've highlighted where they have stated that public records often have mistakes on them.  YOU LIED about verifying a mistake.  PLEASE DELETE THIS IMMEDIATELY!"  I would say, 75% of the time, your response from the credit bureaus will show the item deleted.

And that's how its done!  Now, I mentioned an opinion letter from legal counsel for the FTC.  You can go on their website and read through all of the boring opinion letters till you find it, or you can email me and I'll email it to you, for only $499, but today only I'm reducing it to ONLY $47.  JUST KIDDING AGAIN!  I'll send it to you for free! You like free? I sure do. (Yes, I'm making fun of marketers, in case you didn't catch it).

Do you want to know some background on how the bureaus break the law, or at the very least, don't comply with the law, when it comes to removing public records?  If you do, keep reading, if not, then just email me if you need the letter.  Okay, here goes.

Except for the very minuscule number of courts that do furnish information or verify information to the credit bureaus, courts, their clerks, their secretaries, the judges, the trustees, etc., do not furnish information to credit bureaus.  They receive information from subcontracted scavengers that scour the public records and LexisNexis to find the judgment and bankruptcy dirt on consumers. So the furnishers of the information have no actual knowledge of anything, have no first hand information, are not a party to any of it.  They dig it up, read it and furnish it, then get paid. 

When you dispute, the bureaus have a responsibility to "investigate" but they do not contact the court or any other entity that could possibly have actual first hand knowledge. They put the courts' addresses on there to make you think that the courts furnish and verify, but that's a BIG FAT LIE!  What they really should have on there is the name and contact information for their little gophers who go dig up this stuff.  But, by law, or by legal definition, they have no right to "VERIFY" anything.  

Black's Law Dictionary 2nd Ed. - Verification:  Confirmation of the correctness, truth, or authenticity of a pleading, account, or other paper, by an affidavit, oath, or deposition. See McDonald v. Rosengarten, 134 111. 126, 25 N. E. 429; Summerfield v. Phoenix Assur. Co. (C. C-) 65 Fed. 296; Patterson v. Brooklyn, 6 App. Div. 127, 40 N. Y. Supp. 581. 

What this definition is saying is that the person "verifying" must be able to testify to its accuracy under oath, either by affidavit or in court or court proceedings such as a deposition. Now, in order to testify to such accuracy, the "person" would have to have 1st hand knowledge otherwise it is considered "hearsay" because the furnisher of the information is relying solely on public information that has been known to have mistakes. Here's what the courts say about "hearsay": 

“Testimony, whether live or in the form of an affidavit, to the effect that the witness has reviewed a file and that the file shows that the debtor is in default is hearsay and incompetent; rather, the records must be introduced after a proper foundation is provided.” New England Savings Bank v. Bedford Realty Corp., 238 Conn. 745, 680 A.2d 301, 308-09 (1996), later opinion, 246 Conn. 594, 717 A.2d 713 (1998); Cole Taylor Bank v. 
Corrigan, supra, 230 Ill.App.3d 122, 595 N.E.2d 177, 181 (2d Dist. 1992). 

“It is the business records that constitute the evidence, not the testimony of the witness referring to them.” (In re A.B., 308 Ill.App. 3d 227, 719 N.E.2d 348 (2d Dist. 1999) 

These are both Federal court cases on hearsay.

Now, do you see that not only are the bureaus liars, they are committing fraud, both mail and wire fraud, when they send you the report through the mail or make it available for you to check it online, and see "Verified"?  The person who furnished the information cannot possibly have 1st hand knowledge.  They shouldn't even be allowed to submit information to the bureaus because the FCRA commands ACCURACY and there's no way these scum can know if the information they found in the public records or elsewhere was input accurately.  They are not a party to the action, they are NOBODIES! 

Well, that was fun right?  It was for me.  I have fun teaching you this information and love that I am one of the few that tell you the actual truth.  Hopefully I have helped some of you fight this corrupt system that is supposed to be consumer friendly, but has so many loop holes for creditors and collectors, and sabotages aimed at consumers.  Here's to your success removing those judgments and bankruptcy entries from your credit reports!  

Please remember, if you just don't want to do it by yourself, I would love to assist you.  Give me a call or shoot me an email.  My contact info is right up  at the top of this page on the right.

If you have found this blog helpful to you, please consider donating as a sign of your appreciation for information I have freely given to you.  The "Donate" button is on the right side bar.  Thank you for your generosity.

How To Deal With Collection Agencies ~ Part 4 (States With License and/or Bonding Requirements)

This is my final post in this series and I'm sorry that I'm so late in getting it out, especially for those of you who have been checking and waiting for it.  This post is about a very important tool to use against the collection agencies who are harassing you, badgering you, or simply just trying to take your money from you.  I cannot stress enough how important it is that you don't just go and pay these 3rd party collectors.  It will add years of negative credit to your credit reports and can be so much harder to get them to come off when they've been paid.

Now, we've covered a couple tools already. States that have their own version of the FDCPA, and my little bonus of UCC codes on that one. Then, the Statute of Limitations (SOL) for each state.  Here's a little bonus on the SOL that I recently discovered, and those of you in states that have ridiculously long SOL's are going to love this.  UCC 3-118(g) and UCC 4-111 state that the SOL is 3 years!

Yep, 3 years. UCC 3-118(g) is important for credit because this has to do with negotiable instruments and conversion of an instrument.  That's what they do with credit accounts, be it credit cards, credit lines, mortgages, "money lent" by financial institutions. They don't lend money, they lend credit, which is illegal, and they convert the loan docs, application, eg. promissory note or negotiable instrument, whatever you want to call it, into "money. 3 years, folks, 3 years!

Okay, lets get into this last tool.  Many of you are going to love it. This tool is a list of the states that require debt collectors to be licensed and/or bonded to conduct collection activity within their borders.  This usually goes for debt collection law firms as well.  They used to love that they could get away with their sleazy tactics because they were a law firm. But now, if debt collection is the main function of their law firm, they are lumped in the pile of cow poo that is the 3rd party collectors and junk debt buyers that try to collect from consumers.

Most states publish a list of all the licensed debt collection companies.  Some states allow collection acts if they are licensed in other states with similar licensing requirements.  Also, some states have cities that have license requirements as well, to protect the residents of their cities from these scum.  It is wonderful!  I've included the web addresses to look up the collection company or information how to get a list of the 3rd party collectors to see if the ones bugging you are licensed. Most of these state sites have links or instructions how to file complaints against them too.

I want to apologize to those of you who live in states that don't seem to care enough to enact legislation that requires these bullies to get licensed or bonded.  I know, its not me that should apologize, it's them, but you know they will never issue a sincere apology to you. I'm in that same boat as many of you. I'm in California and they don't require licensing or bonding for debt collectors here either.  Its sad. Personally, I think its because its such a money making business for the state to get the court fees from all of them and all the consumers who get sued and lose or have to pay a court filing fee to fight the collectors.  They probably make much more by allowing all that fraudulent nonsense than they would through licensing fees.

Well, read on!  Here's the list!

STATE and TERMS	WHERE TO FIND LIST
Alaska - Only requires license for companies located in Alaska or out of state collecting for original creditors located in Alaska.	http://commerce.alaska.gov/CBP/Main/SearchInfo.aspx
Arizona - Allows collection agencies that have a valid license in another state that has similar licensing requirements and has a reciprocity clause to collect without obtaining an AZ license	http://azdfi.gov/lists/CA_List.HTML
Arkansas - Requires a license whether they are located in the state or not, if attempting collection on a resident of Arkansas	http://www.asbca.org/collect_search/
Colorado - Requires all debt collectors to be licensed and to maintain an office in the state, open to the public, if they want to try and collect from residents.	http://www.coloradoattorneygeneral.gov/sites/default/files/uploads/cab/CabReport.pdf They update the list every month I think, but I believe the link stays the same.
Connecticut - Have to have a license to collect, regardless of whether they are located in state or not.	http://www.ct.gov/dob/cwp/view.asp?a=2233&q=297872  There's a link at the bottom that is updated to view current licensees and also a tab on the left to verify a license.
Delaware - Must be licensed to collect in the state. They pay $75 to be licensed as Mercantile/collection agency but sometimes they license under personal or professional services as well.	https://dorweb.revenue.delaware.gov/bussrch/ This page has a search feature and the ability to download the list of licensed businesses.
Florida - Must be licensed if located in state. Must be licensed if out of state and collecting for creditor in state or soliciting accounts from creditors in state. Are not allowed to collect on medical bills for services covered under HMO's.	https://real.flofr.com/ConsumerServices/SearchLicensingRecords/Search.aspx
Hawaii - Must be licensed and bonded. However, for out of state collection companies, if they are licensed and bonded in another state, they can apply for an exemption. But, the exemption is not automatic. It must be approved and granted by the state.	http://pvl.ehawaii.gov/pvlsearch/app This link is to search for licenses. http://hawaii.gov/dcca/pvl/programs/collection/ This page has a link to file complaints against the collectors and look up their complaint history as well!
Idaho - Must be licensed whether in state or not to try to collect alleged debts from residents	http://finance.idaho.gov/CollectionAgency/CollectionAgencyLicense.aspx
Illinois - Must be licensed unless they are out of state and are licensed with equivalent requirements from that state	https://www.idfpr.com/licenselookup/licenselookup.asp
Illinois - City of Chicago Only - Must have a license in both Chicago and the state license. However, if they have an exemption with the state of Illinois, they can get one in Chicago too.	https://data.cityofchicago.org/Community-Economic-Development/Business-Licenses-Current-Active/uupf-x98q
Indiana - Must be licensed and bonded.	http://www.in.gov/apps/sos/securities/sos_securities
Iowa - Not required to be licensed but must register if they collect $25,000 or more in a calendar year. Applies to creditors and collectors	http://www.state.ia.us/government/ag/images/pdfs/Contacts_ICCC_Notification_Fe.pdf
Louisiana - Must be licensed and bonded	http://www.sos.la.gov/BusinessServices/SearchForLouisianaBusinessFilings/Pages/default.aspx
Maine - Must be licensed and bonded	http://pfr.informe.org/ALMSOnline/ALMSQuery/Welcome.aspx
Maryland - Must be licensed and bonded	http://www.dllr.state.md.us/finance/industry/licsearch.shtml  You can search by name or location.
Massachusetts - Must be licensed and they use a service called Nationwide Multistate Licensing System (NMLS)	http://www.nmlsconsumeraccess.org/  Looks like its for mortgage brokers but its actually for debt collectors too
Michigan - Must be licensed whether in state or not to try to collect alleged debts from residents	http://www.dleg.state.mi.us/verify.htm
Minnesota - Individual debt collector (human being) and the collection company they work for must be licensed.	http://mn.gov/commerce/banking-and-finance/consumers/license-lookup/license-lookup.jsp
Nebraska - Must be licensed and bonded	http://www.sos.ne.gov/licensing/collection/pdf/licensed-collection-agencies.pdf
Nevada - Must be licensed and bonded	https://fid.online.nv.gov/datamart/selSearchType.do?from=loginPage
New Jersey - Must be bonded whether in state or not to try to collect alleged debts from residents	http://www.nj.gov/treasury/revenue/collagency.shtml  You have to request a verification of the bond by mail.
New Mexico - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents	http://rldverification.rld.state.nm.us/Verification/Search.aspx?facility=Y  In the "License Type" drop down list, select collection agency
New York - City of Buffalo Only - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents	http://www.city-buffalo.com/Home/City_Departments/EDPIS/Licenses/LicensedContractors
New York - New York City Only - Must be licensed whether in state or not to try to collect alleged debts from residents and must include license number on all correspondence	http://www.nyc.gov/html/dca/html/licenses/license_check.shtml
North Carolina - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents.	https://sbs-nc.naic.org/Lion-Web/jsp/sbsreports/CompanySearchLookup.jsp Use "company type" for drop down to collection agency http://www.ncdoi.com/ASD/ASD_Consumer.aspx  Use this link to file a complaint!
North Dakota - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents. This includes every branch office they may use for collection activity	http://www.nd.gov/dfi/regulate/reg/regulated.asp
Oregon - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents.	http://www4.cbs.state.or.us/ex/all/mylicsearch/index.cfm?fuseaction=main.show_main&group_id=20&profession_id=22&profession_sub_id=22000&profession_name=Collection%20Agencies
Rhode Island - Must be licensed whether in state or not to try to collect alleged debts from residents.  May also have to have a bond.	http://www.dbr.state.ri.us/documents/divisions/banking/program_operations/List_of_Debt_Collectors.pdf
Tennessee - Must be licensed and bonded. However, for out of state collection companies, if they are licensed and bonded in another state, they can apply for an exemption. But, the exemption is not automatic. It must be approved and granted by the state.	http://verify.tn.gov/
Texas - Must be bonded whether in state or not to try to collect alleged debts from residents	https://direct.sos.state.tx.us/debtcollectors/dcsearch.asp
Utah - Must be registered with the Div. of Corporations and Commercial code and bonded whether in state or not to try to collect alleged debts from residents	https://secure.utah.gov/bes/
Washington - Must be licensed and bonded whether in state or not to try to collect alleged debts from residents. Also includes debt buyers.	https://fortress.wa.gov/dol/dolprod/bpdLicenseQuery/
West Virginia - Must be licensed and bonded and have an office in state to perform collection activities	http://apps.sos.wv.gov/business/corporations/
Wisconsin - Must be licensed and bonded to collect in state. Out of state exemption if only performing collection activity via "interstate telecommunications and interstate mail."  ~ To me, this sounds like they can't sue you if they are out of the state and don't have a license or bond and they have an exemption.	http://www.wdfi.org/fi/lfs/licensee_lists/
Wyoming - Must be licensed and bonded and have an actual office with resident manager in the state. Every office or branch must be licensed and bonded. Exemptions for collecting business and or commercial debt or law firm collecting for the TRUE name of the original creditor.  Also, do not have to be licensed if the alleged debt they are attempting to collect originated out of state on the internet or by mail.	http://audit.state.wy.us/banking/cab/cablicensees.htm

Now, I hope you noticed that Illinois has a state licensing requirement but so does the city of Chicago. This means that if you live in Chicago, Illinois, the debt collector has to have a license for both the state and the city of Chicago.  I can honestly say, this is one thing that it appears Chicago is doing right!  If you get a bill from a debt collector, and you demand validation and they respond, you've got them.  Heck, you've got them if they aren't licensed. REPORT THEM IMMEDIATELY, at the same time you send them a "Ha, Ha, you're gonna get it" letter!

The state of New York DOES NOT have any licensing requirements. But the city of Buffalo does and New York City has licensing laws too!  Its not as good as Chicago, but heck, if you live in one of those two cities, you're faring better than the rest of the folks in the state of New York that live in other cities!

Make sure if you're in one of these states or cities that require licensing, registration or bonding, you look up that 3rd party collector. You never know, they may not be licensed, and that will make your credit repair efforts that much easier! Some states may have quirky little exemptions,  but for the most part, all of these states require some sort of licensing and/or bonding.

You should use this tool.  Also, I urge you to file complaints on these 3rd party collectors for every little violation that they do. You may have to do a little bit of searching on your state's correct government website to find how to file a complaint, but do it.  If they get repeated complaints from consumers, they will get fined and can get their licenses revoked. Getting these companies banned from collecting in your state helps all consumers. Then it may be a little easier to get bad debt removed from your credit reports because they will NOT be allowed to report on your credit reports in any way, shape or form because it is considered "collection activity" and without a license, it is blatantly illegal!

I like giving you assistance in your fight to rid your credit reports of these blood suckers and I hope that this information helps your pursuit of pretty credit a bit easier.  If cleaning up your credit is a bigger job than you want to handle on your own, please give me a call or email me.  I'd love to be the one you choose to help you.