Does credit repair sound too good to be true? When it comes to credit repair, the law is on your side. There are laws created by the FTC to protect you from the collection agencies, credit reporting agencies, and even credit repair companies. Legally repairing your credit repair is not only the smart way to go, but usually cheaper and carries a lot less risk!
The FTC is on to most companies that follow the following tactics. Watch out for anyone making claims that just seem too good to be true. Remember if you follow the wrong advice and commit fraud, the burden falls on you.
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Illegal Credit Repair Tactics
- Obtaining a new social security number or starting up a “brand new” credit file. Some of these shady companies will teach you how to start your own new credit file by applying for an E.I.N. or Employer Identification Number for you to use instead of your current Social Security number. Please avoid such companies.
- Companies that want you to pay in full for credit repair services before they actually provide such service.
- Any Company that doesn’t share with you your legal rights and the fact that you can try to repair your credit for free.
- Remember, you commit fraud when you lie or make false statements to obtain credit.
Now let’s look at what you should do to repair your credit.
Credit Repair Tactics that are Legal
- You have the right to dispute erroneous information on your credit reports. Not only is this legal, but it’s your federal right. The Fair Credit Reporting Act allows you to dispute items on your credit reports directly with the credit bureaus. The burden of proof lies directly on the credit bureaus. If they cannot verify that the information reporting on your credit report is correct, then it must be removed by law.
- The Fair Debt Collection Practices Act gives you the right to verify any debt a debt collector is trying to collect on. You have the right to demand from the collection agencies what they are trying to collect for, the exact amount they are trying to collect on, and how they came up with that amount among other things. Just because a debt collector says you owe money does not imply that you do!
- Sometimes if a negative item is being reported correctly and you do in fact owe the debt then the best thing to do is make a settlement offer. I suggest asking for removal of the item from your credit reports once you have made payment. A general rule of thumb is to start at 50% of the original debt and go from there. As always, get everything in writing before you agree to anything. Once you make payment promises are often forgotten.
If this all seems a little over your head don’t be afraid. There are professionals out there who can repair your credit for you.
Call 1-800-220-0084 Now for a Free Credit Consultation to See How Lexington Law Can Help You!
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