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Is Credit Repair Still Legal?

I speak to many people everyday and one of the first questions usually asked is whether or not what we do is legal and whether or not it works. Nobody wants to purchase a service that is illegal or doesn’t work.

WHY DOES THIS INDUSTRY SEEM SO SHADY?

This industry does have a way to make used car salesman and members of  congress look good. No offense to the good used car salesman out there, no such apologies to the good members of congress, if you even exist. LOL.There are several reasons why this service and industry just looks so bad and much of it is well earned.

  • Desperate Consumers – Your score is so important that there are many people who will take advantage of that desperation and promise you the world in order to get your hard earned money.
  • Misrepresentation – In order to “make the sale” many people in this business, especially commissioned based salespeople and affiliates, will tell you anything and everything you want to hear. If you need something specific deleted they will tell you it WILL be deleted, if you need it done right away they will tell you it will be done RIGHT AWAY. If you need a specific score they will say NO PROBLEM. These misrepresentations take a few months to show and causes the customer feel betrayed and lied to.
  • Proper Expectations Not Set – It is not the customers job to know how this industry works, I feel it is up to the company to make sure they set the right expectations. If the customer is assuming great results in one month it is up to the company to be clear and concise when explaining to the customer what to expect. If the customer expects one thing and ultimately something else is delivered the customer will have no choice but to feel that the service was bad
  • Low Cost Of Entry – There is no formal training and very few licensing requirements needed to get into this business, this means that many people offering this service just don’t know what they are doing, the result is that nothing comes off your report, thus you feel like you’ve been scammed when in fact you just hired someone who didn’t have a clue.
  • What Are You Paying For? – When people purchase this service from a company they are expecting items to be removed from their report, they assumed (usually due to being mislead by a salesperson) that they were paying to get items deleted from their reports when in fact they were paying for the company to “ATTEMPT” to get items removed. This slight but very distinct difference has lead an extremely high percentage of people being dissatisfied with their results.
  • Reinsertion Of Items Deleted – Most companies will tell customers that once an item is deleted it will never come back. Although this is what the law says everyone in the business knows that items previously deleted have a good chance of returning. Imagine you had an experience with a company who successfully deleted 20 items, 2 years later you see 5-10 of those items back on your report. It would be natural to feel like this just doesn’t work. The fact is that this process does work and it is up to the company to tell you what you can expect with regards to reinsertions, they also need a plan to handle it. Most companies don’t want to tell you the truth because the only solution is to maintain service for up to 7 years. Companies charging monthly know they will have a harder time selling you 7 years of service instead of 1
  • The Media And The FTC Unintentionally Mislead The Public – Every news story you hear and every FTC warning all say the same thing. “You can’t remove accurate negative information from your credit report”  This statement is only partially true. It should say “You can’t remove true, accurate, and verifiable information from your credit report” The FCRA which is the law that governs what is allowed to be on your credit report. It says that in order for an item to be listed on your credit report is must meet the following criteria
    • 100% True – The item in question MUST be yours
    • 100% Accurate – Every detail of the item listed on your report must be 100% accurate. Are ALL the following pieces of information accurate on your report? date of last activity, balance, status, account number, date of late payment, date account opened, limit amount. If you look at the same item on all 3 credit reports and there is a difference one of them MUST be wrong.
    • 100% Verifiable – When we buy a house, car, get a credit card we must sign an agreement. This agreement is what allows you and the company to enforce your rights. If you have a problem with a product you would be required to show a contract showing that you have certain rights. The company must be able to show you a contract that says you must pay and what you must pay. Do you know where that contract you “allegedly” signed 4 years ago is? Does the lender have it? Does the collection agency have it? The fact of the matter is that if they don’t have it your account is therefore not verifiable and cannot be added to your report. Fortunately for you and us most of the banking industry failed and has continued to fail to maintain these important documents. In an effort to save money they have scanned these documents on microfiche and into computers. These scanned documents can easily be dismissed in court and even if they did did hold up they are NEVER sent to collection agencies. This means that most items on a credit report are in fact NOT VERIFIABLE.

IS THIS LEGAL? 

Due to the fact that many people who are doing this illegally causes many to believe that what we are doing is actually illegal. This industry and what we do are all governed by CROA which is a Federal law that dictates how companies in this business must operate. If what we did was illegal there would not be laws governing it.

CAN ITEMS ACTUALLY BE REMOVED?

YES, as explained above the credit bureaus and credit furnishers (creditors and collection agencies) must follow the Federal Law FCRA “Fair Credit Reporting Act” This law dictates to them what can and what can’t be shown on a credit report.

In order for an item to be listed on a credit report it must be 100% true, 100% accurate, and 100% verifiable. If it does not meet these three qualifications it legally must be removed. Unfortunately just because the law says it must be removed doesn’t mean these companies always follow the law. In the real world many of the companies are extremely hesitant to delete items. They are hesitant because they feel that having an item listed on your report is the only leverage they have of making you pay. Many of the companies are willing to bend and even break the law to ensure the item remains on your report.

Due to the tug of war battle happening to remove or keep items on your report the process can be very tedious and time consuming and many people get frustrated and lose patience. If you allow the process to continue your patience will ultimately be rewarded.

CAN ALL TYPES OF ITEMS BE DELETED

Working in this industry for over 10 years I have never seen any particular item type (eg. Charge Off, Collection, Medical Bill, Repo, Foreclosure, Late Payment, Student Loan, Child Support, Bankruptcy, Judgment, Tax Lien, Evictions, etc.) not able to be removed.

All items types “can” be removed from a report, however what we don’t know is when a particular item will be removed

SUMMARY

This industry, like many others, has people in it that are willing to break the law in order to get your hard earned money. Like with any business transaction you need to do your research and make sure you are going to get what you are actually paying for.

This service is a very viable and legal service, similar to investing in the stock market past performance does not guarantee future results, just like when choosing a stock broker your individual results will vary greatly based on your individual circumstances as well as who you ultimately choose to work with. It is imperative to make a fully informed and educated decision.

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