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Credit Repair

Credit Repair and The Law

Many consumers have the mistaken idea that credit bureaus are federally supported organizations backed by a vast array of laws meant to protect creditors. Nothing could be further from the truth. Aside from the government simply recognizing the need for credit reporting, credit bureaus have absolutely nothing to do with the government. Credit bureaus are simply huge bureaucratic companies which exist for the soul purpose of making money by selling information about you—which is information they never bother to verify.

Because of the vast potential for error in the credit reporting system, the United States Congress has enacted laws to protect the consumer from being victimized by the credit bureaus. It is your right and responsibility to make use of these laws.

The Law versus Practical Reality

As the credit bureaus computerized their processes and greatly expanded their reach and influence in the late 1960s and early 1970s, consumer complaints began to mount at the FTC and state attorney general offices. The credit reporting agencies quickly became huge bureaucracies second only in size to the federal government. The credit bureaus expressly served only the needs of their clients, the credit grantors. Consumers were negatively affected by the credit bureaus, but they had no way to correct or change their credit information until 1971.

The United States Congress enacted the Fair Credit Reporting Act (FCRA) to insure that credit bureaus investigate the credit items disputed by consumers. This federal law set guidelines, which gave the consumer the right to challenge the accuracy, validity, and verifiability of the credit listings appearing in their consumer credit report. It also required that the credit bureau delete any credit listing if it was inaccurate or could not be verified.

In theory, the FCRA charges credit bureaus with responsibility to the consumer as well as the credit grantor. In reality, the credit bureaus resist, resent, and reject consumer disputes. The credit bureaus would rather be left alone to make a profit. And, each time a consumer challenges his credit, profit is lost.

Credit bureaus first defend their profits by erecting walls of stall tactics, including requests for more information, clarification, and additional identification. The vast majority of consumers give up before they even receive copies of their credit reports. The entire dispute system is designed to frustrate and discourage consumers.

Many consumers have the idea that credit bureaus must complete their investigation within thirty days or be forced to remove all disputed information. They threaten to sue the credit bureaus if they don't conclude their investigation in time. In practice, such thinking is delusional. Nobody forces the credit bureaus to do anything. However, if you submit a valid dispute letter, and the credit bureau investigates it, the chances of success are good.

If a credit bureau cannot verify an item, it must be removed. Many creditor grantors are simply reluctant to take the time to verify the data. While the credit bureaus are in the business of reporting credit histories, creditor grantors are not.

Credit Repair Articles

Establishing a good Consumer Credit Report is not only Smart,

But Essential For Consumers Wanting a Better Life.

Credit Repair Primer

Answers To Common Credit Repair Questions

How To Dispute Credit Report Errors

How to Build a Credit History and Establish Credit

Sample Credit Report Dispute Letter

Legal Credit Repair Methods

Can Bad Credit Be Deleted from a Credit Report?

About Collection Agencies

Consequences of an Adverse Credit History

16 Illegal Creditor Actions

About Identity Theft

Credit and Your Consumer Rights

Beyond The Statute of Limitation: Time-Barred Debts

Consumer Financial Rights: Federal and State Laws

Charge-Offs: How it relates to consumers & their credit report

About Experian: Consumer Credit Reporting Agency

About Equifax: Consumer Credit Reporting Agency

About TransUnion: Consumer Credit Reporting Agency

About Dun & Bradstreet: Business Information

About Creditors

Tips For Parents:Teaching Children The Financial Facts of Life

Ways to Cope Financially During and After a Big Change

Write-Off: Uncollectable Debt


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