To be honest, I feel like the industry needs a major face lift. Since credit repair is such a in demand field, all types of scumbags are jumping into the industry.
Here are few things that people need to know before they enlist in any service to correct or repair your credit. THERE ARE NO GUARANTEES! Although I've seen magic happen on clients files there is no guarantee that it will work, and if that company says they can then check your pockets to make sure your wallet is intact and run. Second, you can always do the work yourself. As part of the Fair Credit Reporting Act you have the right to dispute inaccurate information on your file.
Here are few things that people need to know before they enlist in any service to correct or repair your credit. THERE ARE NO GUARANTEES! Although I've seen magic happen on clients files there is no guarantee that it will work, and if that company says they can then check your pockets to make sure your wallet is intact and run. Second, you can always do the work yourself. As part of the Fair Credit Reporting Act you have the right to dispute inaccurate information on your file.
Secret number one. Most credit repair companies fix credit by asking the credit agencies and bureaus to verify the accuracy of the information on the report like the amount, time of reporting, or the status. Whether the debt or the late history is yours is another story. Part of the rules is that the bureaus must respond in 30 days to your request or they have to take it off your file. Disputing a item on your credit report that is accurate by saying that it isn't yours will get you a reply saying your request is "frivolous"...and your just plain lying. Frivolous response is the bureaus way of saying "your full of crap and don't talk to us because we wont listen anymore". Game over from there, good luck trying to take that item off.
Secret number two. When sending disputes, do not use the online system. There are a different set of guidelines that the bureaus can use when you send a electronic dispute as opposed to sending in the written dispute via certified mail. Don't go cheap on this people. Send your dispute via certified mail or your chances of success are greatly diminished. Transunion seems to miraculously lose most of the mail they get thats not certified. Ya I said it Transunion! Speaking from my personal experiences Ive had through the years.
Secret number three. Dont use those stupid templates you can find from a book or buying a credit repair software. The bureaus have a special way of scanning letters and if the format matches other files they have scanned before numerous times they are going to think your a credit repair company and red flag your dispute immediately. Remember that the credit bureaus want the consumer to initiate the dispute themselves. My thoughts on how a lower credit score brings more profits to the banks is a blog for another time. Bottom line is that there are certain laws that credit repair companies know and cite directly from the FCRA that lite a fire under them that consumers wont know. Heres is one of them:
§ 623. (b) Duties of furnishers of information upon notice of dispute.
(1) In general. After receiving notice pursuant to section 611(a)(2) [§ 1681i] of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer reporting agency pursuant to section 611(a)(2) [§ 1681i];
(C) report the results of the investigation to the consumer reporting agency;
(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and
(E) if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph (1), for purposes of reporting to a consumer reporting agency only, as appropriate, based on the results of the reinvestigation promptly --
(i) modify that item of information;
(ii) delete that item of information; or
(iii) permanently block the reporting of that item of information.
Secret number four. And this relates to part three. Send the disputes directly to the furnishers or most cases the banks that are reporting the information. Make sure to include in your dispute some type of hardship story that makes you want to cry like "I was so embarrassed when I got turned down for that credit card at Macy's. You dont know that sleep I lost over how that cashier shook her head looked at me. I'm now lost in life".
Secret number five. And one of my favorite ones. First keep all correspondence from the bureaus. If the information is inaccurate and you know it is, and those jerks still wont take off the derogatory information you can take them to small claims court and sue them for damages. When they receive notice that your are going to file any type of claim against them, watch them drop the file like your are playing a game hot potato.
To be fair to the industry I'm not going to reveal the step by step process in how to do the work. I'm not trying to put anyone out of business but I do want to weed out the scam artists and fly by night companies. Credit repair companies are a great service to the nation and it definitely is a great service, especially now that identity theft is the fastest growing crime. I want to let those people know that where there is a problem there is always a solution.
Bottom line is that if you have the time and patience, you can definitely do the work yourself. Dont be fooled into thinking that you cant. But instead when evaluating a company think of your personal situation and if the time and expertise trade-off is worth the few thousand you are paying. The next question of evaluating a credit repair company you should be asking yourself is accessibility and the professionalism of the company. Honestly I used to work out of my home, and my former partner used to bounce from office to office bumming off other peoples spaces. In a professional industry if the company you are working with doesn't have the capability of paying for a actual location, what does that say about their finances? What does that have to say about how established they are?
For me, after being in business for so many years, I prefer to deal with people that are local. Id want to deal with a person who has a set location of business so I can go punch them in the face if they burn me.
For me, after being in business for so many years, I prefer to deal with people that are local. Id want to deal with a person who has a set location of business so I can go punch them in the face if they burn me.
If you like this post please like this page and let me know what are some concerns about credit that I haven't addressed yet. Thanks for reading and share the knowledge, its power!
-Henry
"If you fail to plan, you plan to fail"
henry@creditconscience.com
