It is my belief that no consumer should have to pay for credit repair, it is something that is well worth learning and doing on your own. The money spent on credit repair could be saved to apply to outstanding debt that you may have to settle.. There are many credit message boards on the Internet to assist consumers that are not bound by the same rules as a paid credit repair company.
I have provided a short summary of the credit repair act, but for full details you should refer to the link provided in this article.
The Credit Repair Act
http://www.ftc.gov/os/statutes/croa/croa.shtm
* No one can make misleading claims to a consumer about their credit worthiness, credit standing, or credit capacity.
* No one can advise consumers to alter the his or her identification, to prevent the display of information that is accurate and not obsolete to the credit reporting agencies or to any lender.
* Credit repair organizations my not charge a consumer in advance for credit repair services rendered.
‘* Consumer Credit File Rights Under State and Federal Law
You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any ”credit repair” company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years.
You have a right to obtain a copy of your credit report from a credit bureau. You may be charged a reasonable fee. There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The credit bureau must provide someone to help you interpret the information in your credit file. You are entitled to receive a free copy of your credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare assistance, or if you have reason to believe that there is inaccurate information in your credit report due to fraud.
You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. This law prohibits deceptive practices by credit repair organizations.
* You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.
* Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate. However, mistakes may occur.
* You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file. The credit bureau must then reinvestigate and modify or remove inaccurate or incomplete information. The credit bureau may not charge any fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau.
* If the credit bureau’s reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you.
*The Federal Trade Commission regulates credit bureaus and credit repair organizations. For more information contact:
The Public Reference Branch
Federal Trade Commission
Washington, D.C. 20580′.
* The credit repair organization shall maintain a copy of the statement signed by the consumer acknowledging receipt of the statement.
* The copy of any consumer’s statement shall be maintained in the organization’s files for 2 years after the date on which the statement is signed by the consumer.
* A consumer must sign a contract with the credit repair company, and they have a right to cancel service within 3 business days.
* Any consumer may sue a credit repair company within a 5 year statute of limitations.
Tags: Bad Credit, credit repair, Credit Repair Act, credit repair companies
