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 > CREDIT REPAIR |
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What is credit repair?
Credit repair is a general term that refers to the practice of a consumer
challenging inaccurate, misleading, or unverifiable information on the
consumer's credit report to improve one's inaccurate credit standing.
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Is credit repair legal?
Yes, although it depends on the method. For example, while it is legal to
challenge negative items on your credit reports which you believe to be
inaccurate, misleading, or unverifiable, accurate information is supposed to
remain on your credit report. By contrast, it is entirely illegal to create
a "new" identity by applying for an Employer Identification Number to use
instead of one's Social Security Number — a process known as file
segregation — in order to escape responsibility by hiding one's credit
history. File segregation is a serious crime and can result in fines or
imprisonment.
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Why does credit repair carry a negative connotation?
Credit repair's reputation can be traced directly to exploitative and
predatory companies operating within the credit repair arena such as those
advocating file segregation. Many are reckless fly-by-night operations
seeking a quick profit. Unsuspecting consumers are the unfortunate victims
of such operations, and the damage inflicted upon them reflects negatively
on the industry as a whole.
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How can I avoid becoming a victim of credit repair scams?
* Avoid any credit repair company which requires payment for services in
advance.
* Avoid any credit repair company that will not tell you your legal rights
and what you can do for free.
* Avoid any credit repair company that tells you not to contact a credit
reporting company directly.
* Avoid any credit repair company that advises you to dispute all of the
information in your credit report.
* Avoid any company that suggests creating a “new” credit identity – and
then, a new credit report – by applying for an Employer Identification
Number to use instead of your Social Security number. This process is known
as file segregation, and it is against the law. If you follow illegal advice
and commit fraud, you also may be subject to prosecution.
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Aren't there laws regulating the credit repair industry?
There are indeed. The most prominent one is the Credit Repair Organizations
Act (CROA), a bill signed into law in 1996 to protect the public from unfair
and deceptive advertising practices by credit repair organizations. Among
other things, CROA requires that you be given a copy of the "Consumer Credit
File Rights Under State and Federal Law" before you sign a contract, as well
as a contract that spells out your rights and obligations. Credit Attorney
does both.
Additionally, the Federal Trade Commission (FTC) investigates complaints
about credit repair organizations and takes appropriate legal action.
Fraudulent credit repair organizations have long been the target of FTC
investigations, culminating most recently in Project Credit Despair which
has snared 20 credit repair scammers to date.
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After filling up the form how long will it take you to contact me?
Once you have completed the sign up process, we will contact you within next
working day. However, if you are not available over phone, our endeavor will
continue until we can get you in the discussion. If the phone is not working
at all, we will consider sending mails as well. |
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