Consumer debt counseling

Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will need regular monitoring and regular reviews to be certain the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various areas of interest which can be reported, identifying the numerous mistakes which may be created and learning how to repair credit score errors. One of the best ways to raise your credit score is through Credit Repair.

There are several areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to quite a few problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other problems. By way of instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The usual cause of this problem is the failure to report accurate information.

When there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to make certain that all customers have access to fair and accurate reporting. The federal trade commission enacts many rules and guidelines to help Americans understand and avoid common mistakes and the negative consequences of those mistakes. For instance, the three largest credit repair bureaus in the United States must inform consumers of the differences between debt settlement and bankruptcy in addition to the choices available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action that may be taken against them and other important information. Among the biggest problems that consumers face is the inability to properly understand the Fair Credit Reporting Act and its own rights.

Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. However, it doesn’t matter if these statements are true or not. For instance, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it still legally valid?

This is a tricky question. In theory, it might appear that a creditor has every right to include inaccurate negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative items. But that will hardly ever occur.

Many credit repair services will simply instruct their customers not to take steps to correct the problem. Why would they do that? If a creditor refuses to take steps to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can decide to investigate the dispute and take action to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.

This scenario plays out over every day. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After talking with a dealer, he decides to purchase the car. A couple of months pass by and he predicts the dealer and says the price he’s offered is much less than what he had been told. He asks for a refund and is told he cannot get a refund because the credit report contains an error.

The next step is for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he had done this before employing the credit repair company, he would have managed to make a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to try to make the dispute himself. By using the services of a credit repair company, you are given the advantage of someone else being able to help you in this part of credit repair.