Steve Klinger
- Sep 28, 2019
- 2 min
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updatedtradelines
Defeating Bad Credit
The United States ordered the Credit Repair Organizations Act which sets exacting laws and rules that all "Credit Fix" organizations must keep by law.
While there are many of the companies out there, when all is said and done, organizations that fully submit to these rules can typically be trusted. Those that do not follow U.S. guidelines may presumably be deceptive.
No known or specific laws find these types of organizations to be illegal simply because they help consumers repair their credit, but there are guidelines that must be followed.
To decide which company may offer the best reliability and credit repair options for you, we suggest that consumers weigh: notoriety, consistency, and client response time, in other words, are they prompt to reply to your queries.
Afraid your Credit Repair Company may charge you then do nothing? Great news is here because the Credit Repair Organization Act disallows this type of behavior.
Organizations are just permitted to charge after the work as been finished, not before. However, beginning expenses at start-up are permitted as a one-time charge in some scenarios.
How does it work? Credit Repair Companies work by forcing collection companies that are improperly reporting data to remove the negative tradelines, using the FCRA rules and regulations protecting consumers from bad lenders and bad reporting.
Is Credit Repair Legal?
Credit Repair Services and Companies
Credit repair companies can’t deliver an improved credit report using the misleading tactics they promote.
No one can remove accurate negative information from your credit report.
Some signs that a company providing credit repair services may not be legit-
The organization requests payment for credit repair services prior to the services being provided-
Per the Credit Repair Organizations Act, credit repair organizations are not permitted to require payment prior to the completion of the services they have contracted to perform.
The organization recommends that you engage in fraudulent deceptive practices-
When a company claims they can erase accurate negative credit tradelines from your credit report by disputing them or proposes that you create an alternate credit file identity utilizing an Employer Identification Number in place of the Social Security number assigned to you, do not do it.
Consumers that perpetrate fraud by following their advice, will find themselves open to some potential legal action, themselves. Purposefully misrepresenting yourself, EIN, or SSN on a loan application is a Federal Crime. Companies that suggest such practices are setting you up to fall, so do not fall for it.
Remember, just because they are providing the credit repair services, doesn’t mean you cannot be held responsible for your part in providing the false information. Always do your research and look for the best credit repair companies and services.
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