Credit Repair Rocket Fuel

Credit Repair is all About Leverage

You want results. In the universe of credit repair you should focus your attention on the areas where you have legal leverage, and avoid those where you have none. If there are errors on your credit report your leverage will come from the obligations imposed on the credit bureaus by the Fair Credit Reporting Act (FCRA).

Know Where you Stand

The FCRA spells out the responsibilities of the credit bureaus in dealing with the dispute and verification process. All of your credit repair results will be attributable to the FCRA. Take the time to understand your basic rights and the legal responsibilities of the credit bureaus and you will have the power to produce the credit repair results that you need.

Don’t Believe Your Eyes

The vast majority of credit reports contain multiple errors. Many people have the propensity to believe what they see on their credit reports. The credit bureaus are not government agencies, nor are they infallible, far from it. They are big businesses trying hard to manage an unimaginable amount of data. Errors are part of the picture, and it’s time for you to look out for yourself.

Credit Bureaus and the Law

If it were not for the pressure of the government spurred by almost ceaseless consumer complaints about credit reporting inaccuracy things would be much worse. As it is, credit repair is reasonably manageable if you know your rights. It’s all about the FCRA and the obligations it imposes on the credit bureaus. You can succeed if you know your rights and stand your ground.

The Thirty Day Rule

Are there errors on your credit report? Oddly enough there is no point in disputing your issues directly with the creditor, as you would have no leverage; they have no obligation to respond. You need to focus your credit repair efforts on the credit bureaus. Once a credit bureau receives a dispute they have 30 days to verify the information with the creditor. If they cannot verify the information within that timeframe they must cease reporting it and send you a letter stating the outcome.

The Fifteen Day Rule

If a creditor verifies the information with the credit bureau within the allowed timeframe they will send you a letter explaining that the information has been verified. But this is not the end of your rights. If you are not satisfied you may send another letter to the credit bureaus requesting details about their verification process including contact information with the creditor. The credit bureau has 15 days to comply with this request.

Collectors and Psychology

Your credit repair project may bring you in contact with a collector. This is usually an unpleasant experience. Collectors are trained emotional terrorists. I am not kidding. Professional collectors are taught to cause as much fear and discomfort as possible without crossing the line into illegality. They will do and say whatever it takes to wear you down and make you pay. If you have to deal with a collector you had better know your rights.

Collectors and the Law

Collectors fall under the supervision of another important law called the Fair Debt Collection Practices Act (FDCPA). The FDCPA lists unacceptable collection practices as well as certain obligations to respond to specific consumer requests. If you know your rights you can control and even dominate the situation. Your right to validate a debt imposes an obligation on the collector to document the alleged debt and brings a halt to all collection efforts while this process is underway.

Credit Repair and Statues of Limitation

If confronted by a collector you may be able to turn the entire communication to your favor if you know the statute of limitation on the subject debt. The statute of limitation is the time limit that a debt may be collected through the court system. If a collection is beyond the statute of limitation a collector has no way to enforce the collection by suing you. This means two things, first, if you send the collector a cease communication letter he will go away forever, and second, if you would like to resolve an outstanding balance the collector should be very willing to negotiate.

Credit Repair Muscle

You don’t have to go it alone! If you would like to be guided through the process of credit repair, just call on a credit repair professional. Many people are too busy to manage the details involved with doing the job properly. You credit is too important to be left to chance. There is only one way to do it, the right way. Good luck!

Tags: Credit, Finance