Credit Repair – Laws and Agencies That Assist Consumers
Many laws and agencies protect consumers when it comes to credit repair.
CROA- Credit Repair Organizations Act – has the primary task of protecting consumers from companies that charge them money and falsely promise to get negative but accurate items removed from their credit reports. They also help defend against those companies that offer to dramatically improve low credit scores that are based on correct information.
FTC – The Federal Trade Commission is a bipartisan federal agency with a dual mission to protect consumers and promote competition.
FCRA – Fair Credit Reporting Act – The Fair Credit Reporting Act an American company which promotes the accuracy, fairness, and privacy for all data used by consumer reporting agencies.
FDCPA – Fair Debt Collection Practices Act is a section or subsection of the consumer credit protection act. Its primary purpose is to promote fairness in the collection of consumer debts and provide a way for clarifying and challenging debt information to ensure its validity.
CFPB – Consumer Financial Protection Bureau provides a single point of accountability for enforcing federal consumer financial laws. While also protecting consumers in the commercial marketplace.
These organizations all have ways to help you put pressure on credit bureaus and debt collectors.
Life is not about having all the positive vibes that are in your favor. Sometimes it is good, sometimes times it is unfair, and other times random things occur.
You cannot get what you want quickly and freely. There will always be a consequence for each credit decision that you make. That’s why as an adult, or even young adults need to be extra careful in every step they are taking.
Credit is essential as soon as you become a legal adult. Which in America is 18 years old.
Time will come that challenges will unexpectedly come into your life without your permission – that is life all about. The unexpected always seems to happen.
One of the essential things in our lives is money. You cannot survive and live without it. You need to work hard to have it. You need to use it wisely if you want to have no problem with it.
In our society, there is something we call a “credit score.” It is a three digit number that everyone has assigned to them. A credit score is your financial relationship and track record.
You are being tracked based on every single account, payment history and other factors that indicate to lenders their capacity to repay a loan. It is also a specific number that evaluates a consumer’s, and it is based on a person’s credit history.
At some point in our lives, we cannot escape monetary shortage. It is already part of our living. Not all the people who live here in the United States are equal regarding lifestyle.
Even if we work hard for a living, time will come that you will experience money shortage and you have to lend from someone or a bank company. In giving money from the bank companies, you need to comply with whatever agreement you have with the other party.
Fulfilling a contract you have with a bank means your credit score will gain a positive rating – it will increase positively. But keep in mind that some people failed to comply with the agreed due date of payment, and that will cause trouble or hard time for them.
Their credit score will hurt too bad, and they need to do some credit repairing action. Credit repair is not as easy as you think it would be. It requires time, effort and patience to rebuild your credit score.
In some instances, you do not need credit repair companies that offer services that will help you in restoring your credit score.
But for the people who do not know where to begin or what they need to do, they usually need credit repair companies to guide them along their way.
The service fee is involved in this action before a credit repair company perform their job – nothing is free now, anyways.
A good credit repair company will get first your credit reports from the three leading credit reporting agencies to evaluate and know what your credit issues are.
You might be wondering why do you need to get credit reports from all the three agencies, it is because each agency has its own data furnished also known as lenders, credit card companies, debt collectors, etc. who report your credit information to them.
Do expect that some errors may appear on your credit reports, but do not appear on the others. Once the errors are identified, you have to give the credit repair company any supporting documentation you might have.
For instance, if there is a bill on your credit report that your wife or husband was entirely responsible under your divorce decree, you can use that document to prove that it should not be impacting you.
In some instances, it might be challenging to determine what to include as far as the supporting documentation goes. But worry not, because that is another way a credit repair company can help you.
An example of this is if you are a victim of identity theft and a fraudulent account is being shown in your report, it can be difficult to prove if it is not yours since you basically do not have any documents connecting to the account.
When the data furnished and bureaus already receive the dispute and all the supporting information, they will now work with the credit repair company to evaluate if the item should be removed to the credit report.
The primary law that is dictating your rights when it comes to credit reporting matter is the Fair Credit Reporting Act – but there are also laws aside from this that is on your side when it comes to credit repair.
Credit repair companies cannot tell you exactly when your credit score will improve because some consumers have much more complex issues than others.
Every report and every case is unique, and no professional firm can predict an exact outcome. When choosing a credit repair company to fix your fix your bad credit, do not ask about the future but instead ask about what real clients have seen in the past.
There are credit repair companies that will surely help you in fixing your credit. Here is the list of the best credit repair companies in 2018:
• Lexington Law – it is known for its Cadillac credit repair. With decades of experience in the credit repair field, their advantage is they are offering features and services that other credit repair companies cannot match.
Lexington Law has three different tiers of service. The first one is the Concord Standard. It offers the repair fundamentals such as sending faith letters to your lenders, fixing mistakes on your credit report and looking for legal loopholes to get your credit score back to where it should be.
The second one is the Concord Premiere. It basically adds the second level of assistance including monthly credit monitoring and a credit score improvement analysis. The third and last one is the Premier Plus.
It combines identity fraud alerts and personal finance tools to guide you in monitoring your finances. Their services cost at around $89.95 to $129.95 depending on which tier of service you will avail.
It also offers a low-credit repair option, and it is called “Lex OnTrack” that costs for only $24.95. Lex OnTrack offers a minimum credit repair features but can be a perfect alternative for those who are looking even some minimal changes on their credit score without spending too much amount of money.
Do consider that Lexington Law is the only credit repair company that is being run by actual lawyers, so their reputation is too strong. One more thing that is good about them is that they only charge their customer once the work has already completed.
• Sky Blue – Regarding signing up, it is easier if you will call Sky Blue on their phone so that they will teach you how to sign up or you can visit their website.
Sky Blue offers a low-priced service compare to the other companies and offers 5-star customer service. With that being said, the initial fee costs for $69 only and then only $69 per month after that.
Given the fact that it does not have all the fancy bells and whistles that other companies have, Sky Blue is still one of the best services.
They will give you outstanding repair service including fixing a mistake on our credit report, sending a good faith letter to your lenders and looking for legal loopholes to get your credit score back to where it should be.
The coolest feature that Sky Blue has to offer is that you can pause your service if you feel that you need to take a break or you just cannot afford to pay for a month.
Then obviously, you can un-pause it whenever you are ready. As per Sky Blue’s achievement, it receives a rating of A+ rating from the Better Business Bureaus.
It also offers a full 90-day refund regardless of what will be the reason. Users often reach out to say how accommodating and excellent Sky Blue’s customer service, which is somewhat unusual for a credit repair company.
• CreditRepair.com – it is one of the most popular companies in credit repair. Not only are they well branded but they also include so many extra services like identity theft.
Compared to the previous price, CreditRepair.com now offers a most affordable credit repair option which costs at around $49.95 each month.
This tier of service provides the basics of credit repair such as credit bureau challenges, right interventions, etc. without some of the standard practices hat other credit repair companies do offer.
CreditRepair.com also offers a top-tier service at $99.95 which includes all of their best services, they can provide including credit report monitoring and identity theft protection.
It also interacts directly with credit card issuers and the credit bureaus to make sure that changes have been made. In addition to that, they will also monitor your credit and offers a sleek user interface to help you track your progress easily.
One more good thing about this is just like Lexington Law, it will only charge customers once the work has already completed.
• The Credit People – it is known for their 7-day trial. The Credit People are the only credit repair company that offers a free trial. You can try out their services and performances before committing to them.
But take note that the 7-day trial option they offer has a fee of $39 for a seven day of service. It is almost the same with Sky Blue when it comes to its features. They only offer straightforward repair services.
When it comes to the reputation of the company, reviews are mixed on The Credit People. On Better Business Bureau, it has an A- rating while some online reviews were disappointed about the service, but each and everyone agrees that the money-back guarantee is a great perk for everyone.
You get 100 percent money back guarantee at any point if you are not satisfied with their service.
• Pyramid Credit Repair – it is known for its straight-forward pricing, with one plan that costs $99 per month.
You can sign up for the service as a couple, that would probably be $198 each month but expect a 50% discount on the first month. Pyramid Credit Repair does not charge an initial fee just like other credit repair companies do.
Aside from offering essential credit repairing services, they also provide easy-to-use mobile site and website. It is originally designed to track your credit progress easily.
It also has an excellent customer service and dedicated account managers – that’s why they are known for having a pretty stellar online reputation. It is not registered to Better Business Bureaus but does have a mostly 5-star in most online reviews.
Just like Sky Blue, they also offer a 90-day 100% money back guarantee, which is a good deal after all.
Now that you already know what credit repair companies that you will assist you and other when you hit a terrible credit score, you will also need to have a piece of knowledge about the law that is related to credit repair.
Most people believe that credit repair typically begins and ends with FCRA or also known as the Fair Credit Reporting Act. But that is not the only law regarding credit repair. In this portion, I will state some laws and explain it further.
The first one is the Credit Repair Organizations Act or CROA. It was signed into law in the year 1996, sometime in September. Credit Repair Organizations Act (CROA) was passed to help manage the credit repair industry to protect each and everyone from the improper and deceitful practices common o a credit repair scam.
It requires companies that offer credit repair services to advertise and communicate in a well-manner and honesty to the customers. The Credit Repair Organizations Act is part of the larger set of laws called the Consumer Credit Protection Act.
It also intends to protect the consumer from any unfair advertising and business practices by credit repair organizations. The Credit Repair Organizations Act is the primary law that protects your rights as an individual during the credit repair process.
The second one is the Federal Trade Commission. It is created in the year of 1914, and its primary function is to prevent unfair methods of competition in commerce as part of the battle to bust the trust.
As years go by, the Congress passed an additional law giving the agency a more prominent authority to police anticompetitive actions. The Federal Trade Commission protects consumers by taking complaints about businesses that do not make good and positive output on their promise and cheat people out of money.
They also share these complaints with heir law enforcement partners and then use them to scrutinize fraud and eliminate unfair business actions. It is known to be an independent agency of the United States government, that is established in 1914.
Its primary mission is the promotion of consumer protection and the elimination and prevention of anti-competitive business practices. The Federal Trade Commission is the one that is responsible for providing consumer protection and making sure that the business practices are remaining fair.
It also deals with the complaints that are filed such as deceptive advertising, scams, and monopolistic practices. The third one is the Fair Credit Reporting Act.
As per Wikipedia, the Fair Credit Reporting Act is U.S. federal government legislation enacted to promote the accuracy, fairness, and privacy of the consumer’s information that is contained in the files of consumer reporting agencies.
This means that the credit reporting agencies are not allowed to give your personal and vital information to anyone right away. The Fair Credit Reporting Act that regulates the collection of credit information and the access to credit reports.
This law was passed in the year 1970 to ensure the fairness, the privacy of personal information. The fourth one is the FDCRA or the Fair Debt Collection Reporting Act.
As per Investopedia, it is a federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.
It is also the principal law that governs debt collection practices. This means that the act creates guidelines under which debt collectors may conduct business, define the rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.
Experts say that consumer should face the fact and deal with debt collectors but do keep in mind also their rights and protection. The debt collectors are the people that companies hired on a commission basis by banks and credit card issuers to collect on past-due accounts.
The Fair Debt Collection Reporting Act is the first to look for answers on what is and is not allowed to do when debt collectors come calling. The fifth one is the Fair Debt Collection Practices Act.
Here are some key provisions of the Fair Debt Collection Practices Act is the law:
(1) Protects against harassment – an example of this is excessive phone calls, threats of violence, harm, arrest, and abusive language.
(2) Allows consumers to look for proof that they owe the money that debt collectors want. (3) Prohibits disclosure of debts to others who are not legally authorized to know anything about the debts. (4) Bans contacts with the consumer at convenient times.
(5) Grants consumer the right to sue the debt collectors by an individual or in class actions for violation of the law. This law intends to prohibit third-party collection agencies from harassing, threatening and another inappropriate manner towards someone who owes money.
Now that you already know what to do in case this happens to you do not be afraid to fight for your right even if you owe money from someone. It is best to have knowledge about this to know what to do in case situation like this occur.
The sixth one is the Consumer Financial Protection Bureau or simply CFPB. It is also known as the Bureau of Consumer Financial Protection. It is responsible for consumer’s protection in the financial sector.
People who are keeping their money in the banks and credit unions, pay for goods and services with their own credit cards and rely on loans to buy houses, cars, appliances, etc. are protected by the Bureau of Consumer Financial Protection.
It’s is to promote transparency and fairness for credit cards, mortgages and any other consumer financial products, goods and services. It is known to be established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
There are some key points that you need to remember about credit repair. First, do not expect significant changes overnight. Because credit repair takes time and requires regular credit monitoring and a shift in the way you go about personal finance.
Second, it can be tough to navigate the complex world of the credit industry all by yourself most especially when it comes to disputing negative information on your credit file.
Third, it is never a bad idea, and there is nothing wrong to consult a credit repair expert if you are not sure about the law or any methodology regarding credit repair and credit services.
Fourth, do consider that the credit repair process is lengthy and requires extra time and effort especially if you have a sizable credit history.
Fifth, taking with debt is also hand in hand with taking a closer look at your spending habits and finding ways on how can do save and lower down your spending.
Sixth, if you enlist the services of credit repair companies such as Lexington Law, Sky Blues, etc. you can cancel it anytime. Lastly, know how to educate yourself on your rights as a consumer including what the Credit Repair Organization Act and Federal Trade Commission are all about.
Now you already know the laws and agencies that you should know, always fight for your rights especially if you know that you are in the correct position.
Specifically, in debt collectors, you do not really know how traumatic it can be until you experience something you cannot imagine with a debt collector.
Some people cannot think properly after the incident happened to them. Sometimes they tend to forget their rights and what the debt collector disobey. It is safe and vital that you have knowledge about laws that would really save you from something or from someone.
As a person, you do not want to be humiliated by someone. Everyone deserves respects even if it is about money. Obviously, you can know what kind of attitude a single person has when it comes to money.
Some might get mad easily to the point that they cannot control themselves and their mouth and some are not. In this new generation, money plays a huge part in everyone’s lives.
Sadly, some people are being controlled by the power of money. They forget who they are and where they come from. So if you do not want to have constant balance from the bank companies or from someone, always use your brain when it comes to money decision.
Still, purchase what you need the most and what are the essential things you need. You can live without having luxurious items. It feels so good when you do not have debt and when you have a good credit score rather than having debt or credit card balances plus hitting your credit score too bad – it’s double trouble, right?
If you want to enjoy all the things in your life accordingly, start to practice having a good credit score. Because given the fact that you will not waste your time rebuilding it. Your credit score will determine how comfortable your life will be because even getting a job will base on your credit score.
I hope that this article truly helps you understand the laws and agencies that will surely assist you in credit repair. As a consumer, always be a responsible one and do not ever overuse your power and your rights. Do not degrade someone just because you think that you have all the reasons with you.
Keep in mind that these credit repair companies require service fee for their work. Luckily, there are credit repair companies that will only charge you once they already completed their work but some need initial costs to start and begin with the process.
Most credit repair companies cost too much amount of money but worry not because they have all the services you might be needing in performing the procedure.
Some credit repair companies do offer budget-friendly offers but do expect that they can only do essential credit repair services. I hope you do not need to undergo this kind of situation because honestly, this is not an easy one.
So, practice the habit of charging only the goods and services that you think you can afford to pay at the right time.