Credit Repair Agents: Protect Your Rights as a Buyer

snerfuStarred Page By snerfu, 27th Jun 2014 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Debt

Repairing credit is tough and takes time. Many people want immediate results and employ the first credit repair company that comes along. To know that you are getting the genuine deal you have to understand how credit repair actually occurs. You also have to know your rights as a buyer so that you can be prepared.

Improving credit score

Problem with having a low credit score is manifold. First, there is the high interest rate for credit. Secondly, you do not get as many opportunities when you apply for job openings and when you apply for fresh credit the lender refuses.

Obvious solution to this is to employ a credit repair agent. Do they really work? What can you expect in real terms from them?

Know your rights

First thing is to know what you can do and where you stand as a buyer. You have a right to certain things as a person who avails of credit. Here is how you begin.
1) You can ask how a lender is giving credit scores
2) You can get contract copy from your credit repair agency
As a buyer, you can ask the lending agent to show what basis they have for assigning their scores on your credit report. Each of these lenders (mostly shops where you purchase things on credit) has a robust and rigid system for giving your credit scores. These scores cannot have any basis on your religion, your caste, your family background and your criminal record. Their system has to be independent of who you are and what you do.
Next, as far as your credit repair company is concerned you can ask for a copy of contract as an employer. This will have details about what they hope to achieve and how quickly they will do it.

Ensure your credit repair company is genuine

You can guard against spurious companies who will charge you an amount and then say they can do nothing. Once you have given your money away, there is nothing left to do. Obvious indications that this credit repair agency is a fake:

1. Credit repair agencies have to do certain things when you employ them.
a. Give you a statement saying you can cancel within 3 days
b. Give a copy of document that has details of:
i. Name and Address of credit repair company
ii. Date for completion of services
iii. Amount you have to pay
iv. List of services that they will do for you

2. Credit repair agencies cannot do certain things
a. Ask for payment for services they have not yet done
b. Remove accurate statements in the credit report

Most of these fraudulent companies will eye your money over other things. They will ask you to pay for services in advance. It is not within their right. You do not have to do this. In fact, all legitimate companies will offer you money back guarantee if they do not provide satisfaction. This should be your first indicator.

If you do not receive a statement saying you can cancel the service within the first three days without any questions asked, the company is not genuine. They must list out things that are included in their service. They must give you a time when you can get to see results.

You have to know that you can do all the things a credit service company can do. If there is a statement in your credit report that is untrue, then you can dispute that statement by sending a letter or email to the credit reporting agency. If the statement is true, then neither you nor your credit repair agency can change it.

Positive steps to repair credit

a) Pay off debts
Though you may have a low score, you can improve it if you want. First thing is to check for accuracy. If there are inaccuracies, you can change it. Secondly, you can pay off outstanding debts and keep your credit purchases within the allowed limit. When you make payments on time, it helps improve your credit score.

b) Ask lender to be lenient
Keeping in contact with lenders to whom payment is due will help you in a way. You can ask them to give you time to pay the amount that is due. If those lenders are agreeable to this, then they will remove statement saying you have bad credit. That is within their right. This will help you to get a better credit score.

c) Genuine work
All work done by credit repair agencies must be within Fair Credit Reporting Act. This ensures that your credit repair work will be genuine. This will be within your right. What would a consumer do if they pay money before any work has occurred and the company disappears? Any person can request and get a credit report from three credit bureaus for $30.

Credit repair will take time

You cannot dispute all negative information present in your credit report. It is not within our right. Bankruptcies and judgments will remain in the credit report with bankruptcies remaining for 10 years. Applying for a new credit identity with a new address is a state and federal felony. You cannot repair credit overnight, this process will always take time.

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Company, Credit Repair, Credit Score, Lender, Right

Meet the author

author avatar snerfu
Bachelor, Christian, 53, settled in Madurai, India, like to watch football and tennis on TV. I also have occasional walks but try to read the Bible daily. For amusement, I read the newspaper.

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author avatar Bill Harbin Jr
30th Jun 2014 (#)

Great star page!

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author avatar snerfu
30th Jun 2014 (#)

So kind of you to say so Mr Harbin

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