Credit Report Analysis – Why is it Legally Required?
Credit Report Analysis
Did you know that the Credit Repair Organizations Act and Fair Credit Reporting Act forbid credit repair organizations, attorneys, and consumers from disputing items that are accurate, timely, and verifiable?
This Is Why We Need a Credit Report Analysis
As it is impossible for an attorney, a credit repair organization, or any other third party to know the specifics of each and every line item on your credit report an attempt to repair credit without doing a thorough line by line analysis of the clients credit report. Only the client knows the details of each item and can provide instructions on what to do.
Although clients can do their own credit repair they sometimes lack the detailed knowledge needed to do the full Credit Report Analysis to determine if something is truly accurate, timely, and verifiable and without this specialized knowledge may miss out on some opportunities to legally obtain removal of negative items on their credit reports.
Our service is one of the VERY few that require consumer input via our credit report analysis prior to disputing items on their credit report
A Credit Report Analysis is 100% required is a credit repair company, attorney, or other third party is going to be 100% legally compliant
Background Information Obtained From Section 404 of the Credit Repair Organizations Act which to us clearly indicates that a Credit Report Analysis is required
SEC. 404. Prohibited Practices.
(a) In General.–No person may–(1) make any statement, or counsel or advise any consumer to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the credit repair organization, officer, employee, agent, or other person to be untrue or misleading) with respect to any consumer’s credit worthiness, credit standing, or credit capacity to—(A) any consumer reporting agency (as defined in section 603(f) of this Act); (8) or (B) any person–(i) who has extended credit to the consumer; or (ii) to whom the consumer has applied or is applying for an extension of credit;
Section 404 is a very critical element of the Credit Repair Organizations Act (CROA). It is Important to understand the practices that are prohibited under the law. To support that understanding, we will do our best to explain our understanding and do our best to be in compliance and make sure all our statements made to the credit bureaus (or other parties defined by the provision) are true.
An example of making an untrue statement is saying or advising the consumer to say, “it’s not mine” when disputing a derogatory item on a credit report when in fact the item itself belongs to the consumer. This is how credit repair is done by the majority of companies offering services in today’s market and part of the reason that credit repair industry has a bad reputation.
This does not mean that you cannot dispute every negative item on your credit report, as we go through our credit report analysis with you we will advise you of the most common errors with regard to the accuracy, timeliness, and verifiability of each and every line item. Our credit report analysis process will allow us to dispute items on your credit report not based only on the fact that the account is actually yours but on the actual facts shown on the credit reports, this means we can provide effective credit repair without having to make untrue statements.