Credit Repair

Know The Laws before You Hire Credit Repair Companies

There are certain laws that credit repair companies must follow. There are several agencies out there that make highly alluring claims in their advertising campaigns. Many times, they even go against the laws while doing aggressive marketing. For example, you may have come across many services that give you guarantee that they can fix everything wrong appearing on your credit report. The Federal Trade Commission has warned consumers to stay away from such services, as they are often scams. As per the Fair Credit Reporting Act, certain restrictions have been imposed on these companies (the way they market their services and the way they go with the procedure). At the same time, consumers have also got certain legal rights in this regard.

What Does the Law Say About Scams?

The FTC has issued official warning to consumers that credit repair companies that give guarantee to remove negative entries from credit report are often unscrupulous ones because there is no way to improve one’s credit worthiness instantly if the information appearing on the report is correct. After all, it doesn’t make sense to fix errors when there are no errors at all. If someone still promises to improve your FICO score instantly, it only means they have some illegal or unscrupulous plan, where you will be eventually at loss.

Right to Request Investigation

If you have doubt about the authenticity of certain entries on your report, you have the legal right to request the bureau to do a thorough investigation on whether the entries are correct and complete. It is very important for you to understand that the process here is very simple and it takes very little time. You do not need credit repair companies to do it on your behalf. Why paying others for something you can do on your own?

Free Copy of Credit Reports

In general, all consumers are legally entitled to one free copy of credit report at least once a year. However, there can be an array of other situations as well when you may request for additional free copies during the same year. As per the Fair Credit Reporting Act, you can request an additional free copy of the report from the bureaus when you are denied a job or when your application for insurance, loans, or credit cards gets rejected. Those who become a victim of fraud or identity theft are also entitled to additional free copy.

Where to Order the Reports From?

There are three main credit bureaus (TransUnion, Equifax, and Experian) that maintain your credit file. You can order your free copy from all of them through their authorized centralized website. If you do not want to order online, you can place your request on phone by calling at 1-877-322-8228, a toll-free number. Alternatively, you can get a form from FTC, fill the same, and send it by post to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga., 30348-5281.

Filing Disputes

While you review your reports, you may find that some of the entries are incomplete, incorrect, or appear to be incomplete or incorrect. In such cases, you can with the bureaus in writing. Even if you are using services from credit repair companies, make sure that you have the basic understanding of the process. Your application must cite the reasons for disputing those entries. In order to make your claim stronger, it is always better to attach relevant documents (as evidences) with your application. Make sure you get a return receipt (a proof that your dispute has been filed). It is legally mandatory for the credit bureaus to do a thorough investigation and respond within 30 days after dispute filing.

Overall, when it comes to making the best use of the services offered by , your awareness about the laws will help you make an informed decision.


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Posted in Credit Repair, Credit Repair Services | 1 Comment »

One Response to “Know The Laws before You Hire Credit Repair Companies”

  1. Peter says:

    Credit Repair Companies can lead us in the frauds, scams etc. This article can tell you about the legal rights you have. Before going to take help from the credit repair companies, every individual should be well aware of the legal rights. The FTC has given many guidelines to the customers about choosing the genuine credit repair companies. No company can improve your credit score in a very short span of time. It should be done through a proper channel. One more point is very good that no company can delete the negative entries from your report. First of all you need to get your credit report from the credit Bureau and study it very thoroughly. It can give you an idea about wrong entries, and then if you found yourself sure, you have the rights to file a dispute with the bureau. The Bureau will do all the investigations required and will respond you. You can also request for the originality of any entry in the report. It is fine to get the help of credit repair companies to improve your score but it’s also equally important to be very well aware of your legal rights.

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