The Warning Signs
- Want you to pay for repair services before any services
are provided;
- Do not tell you your legal rights and what you can do
yourself for free;
- Recommend that you not contact a credit bureau directly;
- Suggest that
you try to invent a "new" credit
report by applying for an Employer Identification Number
to use instead of your Social Security Number;
- Advise you to dispute all information in your credit
report or take any action that seems illegal, such as creating
a new identity. If you follow illegal advice and commit
fraud, you may be subject to prosecution.
If you provide false information
while using the mail or telephone to apply for a loan, you
could be charged and prosecuted for mail or wire fraud. It's
a federal crime to make false statements on a loan application,
misrepresent your Social Security Number, or obtain an Employer
Identification Number from the Internal Revenue Service under
false pretenses. Under the CRO's Act, these companies
cannot require you to pay until they have completed the promised
services.
The Truth
No one can legally remove accurate and timely negative information
from a credit report. If you wish to dispute information
contained in your report, the law allows you to request a
reinvestigation of the information in question. There is
no charge for this. We offer a Free credit repair service page designed to help you fix your bureau. Everything one of these
scam companies can do for you legally, you can do for yourself
at little or no cost. According to the FCRA:
- You are entitled to a free copy of your report if you've
been denied credit, insurance or employment within the
last 60 days. If your application for a loan, insurance,
or employment is denied because of information supplied
by a bureau, the company you applied to must provide you
with that bureau's name, address, and telephone number.
- You can dispute mistakes or outdated items for free.
Ask the credit reporting agency for a dispute form or submit
your dispute in writing, along with any supporting documentation.
Do not send them original documents.
- Order your free credit report
Whether or not you are a victim of identity theft, take
advantage of your free annual credit reports, now a requirement
of federal law.
Clearly identify each item in
your report that you dispute, explain why you dispute the information,
and request a reinvestigation. If the new investigation reveals
an error, you may ask that a corrected version of the report
be sent to anyone who received your report within the past
six months. Job applicants can have corrected reports sent
to anyone who received a report for employment purposes during
the past two years.
When the reinvestigation is complete,
the credit bureau must give you the written results and a free
copy of your report if the dispute results in a change. If
an item is changed or removed, the credit bureau cannot put
the disputed information back in your file unless the information
provider verifies its accuracy and completeness, and the credit
bureau gives you a written notice that includes the name, address,
and phone number of the provider.
You
also should tell the creditor or other information provider
in writing that you dispute an item. Many providers specify
an address for disputes. If the provider then reports the
item to any credit bureau, it must include a notice of your
dispute. In addition, if you are correct, that is, if the
information is inaccurate, the information provider may not
use it again.
If the reinvestigation does not
resolve your dispute, have the credit bureau include your version
of the dispute in your file and in future reports. Remember,
there is no charge for a reinvestigation.
Reporting Negative Information
Accurate negative information generally can be reported for
seven years, but there are exceptions:
- Bankruptcy information can be reported for 10 years;
- Information reported because of an application for a
job with a salary of more than $75,000 has no time limitation;
- Information reported because of an application for more
than $150,000 worth of credit or life insurance has no
time limitation;
- Information concerning a lawsuit or a judgment against
you can be reported for seven years or until the statute
of limitations runs out, whichever is longer; and
- Default information concerning U.S. Government insured
or guaranteed student loans can be reported for seven years
after certain guarantor actions.
The Credit Repair Organizations
Act (CRO)
By law, CRO's must give you a copy of the "Consumer File
Rights Under State and Federal Law"
before you sign a contract. They also must give you a written
contract that spells out your rights and obligations. Read
these documents before signing the contract. The law contains
specific protections for you. For example, a credit repair
company cannot:
- make false claims about their services;
- charge you
until they have completed the promised services;
- perform any services until they have your signature on
a written contract and have completed a three-day waiting
period. During this time, you can cancel the contract without
paying any fees.
Your contract must specify:
- the payment terms for services, including their total
cost;
- a detailed description of the services to be performed;
- how long it will take to achieve the results;
- any guarantees
they offer;
- the company's name and business address.
|
Questions?
LendFast.com - Beware of Credit Repair Services
Credit Repair Tips and Tricks 
