Dan Willis here we’re talking about how do credit repair companies work, the actual mechanics and the process now. The very first step is your initial consultation during which are going to get a copy of all three of your current reports, and this needs to be updated.
A very current recent copy – and you’re, going to review this in detail to identify any of those questionable, negative derogatory items that you’d like to challenge and potentially have removed. You’re, also going to need to explain or share some of the details about each specific item.
For instance, if you’ve been through a divorce and one of the accounts it’s on your credit report, was actually signed. Your ex-spouse, you know that would be one of the reasons now. The based upon these specific circumstances and the reason and the type of account will indicate how best to move forward, and this is really specific and we’re, going to go ahead and just discuss.
All of the ways in the very first place. Is the credit report dispute process? This is going to use your rights under the fair credit reporting act fcra, and this allows and enables you to dispute any item on your credit report.
So long as you believe it’s made an error misleading or incorrect, and there is no argument. Credit reports are not accurate, even according to the FTC 2013 study, which revealed millions of Americans have airs on their credit reports.
Now the credit bureaus once they get your dispute and find it valid, which is one of the catch, will share in a minute. They’re required to investigate the item. So, for example, if you disputed an item on your current board and let’s, just say that it was a charged off credit credit card when the credit bureaus get your dispute and find a valid which will share in a second, they’re going to contact that credit card company and they’re, going to ask them to verify the account and here’s, one of the good news.
First, the overwhelming majority of credit bureau investigations do not result in item being verified and if the item is not verified, even if it’s, a hundred percent accurate, even if its honor percent true and completely legitimate.
If it’s not verified when the credit bureaus and veste gate according to the law, it must be removed from your credit report. Now that’s for a variety of reasons. In this case, though, for example, with a charged off credit card, chances are that account has been sold to a collection agency and maybe four or five or six different collection agencies.
But the point the reason that credit card company is very reluctant to verify an item. Even if it’s totally accurate is after they sell the rights to it. There’s, nothing for them to gain. It only costs them money and time.
Annoyance expense only an expense to verify that item once they no longer have the rights to your account, just as an example, and there’s much more to that in the catch here, the credit bureaus and they get in trouble.
For this all the time they’ve, been fined over and over and over again by our government for violating consumer rights, and especially those under the Fair Credit Reporting Act and in typical politician fashion.
The credit bureaus are now required are now enabled to first decide if your dispute is valid, which they are required to investigate, which costs them money or if it’s invalid or frivolous, which they don’t have to investigate, which totally Is unconscionable makes absolutely no logical sense, especially since the Fair Credit Reporting Act.
The legislation requires the credit bureaus to investigate and part of this, we believe, is big money, Washington lobbyists, the credit bureaus, earn billions of dollars in revenue every single year. We can buy stock in two of the three right now and they, of course, are lobbying spending millions of dollars in Washington to try and erode some of these laws, and we ‘
Ll share an example just to fully illustrate this Julie Miller in 2013. Sued Equifax and won over 18 million dollars. She had invested two years trying to get the most obvious heirs off of her credit reports.
They were accounts that weren’t hers. She did every single thing she was supposed to and Equifax kept telling her that her dispute was frivolous and they kept requesting more information. She sent them her w-2, she said, pay stubs, she said samples, she sent DNA, she sense a lot.
She said everything and did everything she’s supposed to according to the law, and she was still stuck for years with a bad credit score that wasn’t accurate and wasn’t representative and the credit bureau Equifax in This case specifically had to pay over 18 million dollars, but only 200.
I think it’s, 200 less than 250. Thousands of dollars of that was the actual damages that Julie Miller encountered in her life. The other remaining 17 plus million bucks was to say to the other two credit bureaus.
This is what happens when you start screwing these consumers. So obviously an egregiously like this, so you very well are welcome to do it yourself and by all means most folks. Don’t have quite as terrible of a situation as Julie Miller.
However, you can expect endless frustration, to put it mildly, and that’s. One of the reasons why many people turn to professionals for help and if you’d, like a free credit consultation, you can call toll free 1, 877 or 18.
Some 596. Now the credit report dispute process – and there have been amendments to that recently, which now allow you to dispute a data furnisher directly. This would be disputing that credit card company from our earlier example directly, for example, or a collection agency or whomever directly, rather than the credit bureaus just as a sidebar.
The other thing, the Fair Debt Collection Practices Act, the FDCPA. This is incredibly powerful tool. If you’re currently dealing with any debt collections, there are many rights in the basic takeaway.
Is these collection agencies must follow strict guidelines to verify and validate that this is a legitimate debt and if you have legitimate debt, that’s. Okay, but you need to do this – do due diligence on it before you go paying it off, because most people mistakenly just go about paying off old debt collections believing this is how to improve their credit score, and it very rarely if ever works like that.
We should explain so much more. We’re just time here, but of course, if you do have some legitimate debts after you’ve done the due diligence. You may need to pay them, but you should pay them and there’s a whole little process about this.
You need to pay them, so this item will ultimately get off of your credit report. That’s, the best most effective way to get a better credit score, especially with an item from a collection agency. Lastly, a paid collection on your credit report is not a good positive credit building item that’s, still a bad negative, damaging item.
It’s going to hack cause you to have a lower credit score now. The last thing, seven years is the maximum amount of time to any negative item, with the exception of a bankruptcy can remain on your credit report that’s, the maximum.
There is no minimum amount of time that any item must remain. On your credit, let us repeat: there is no minimum amount of time that any negative item must remain on your credit report and if you’d, like some help, you can get a free credit consultation by calling toll 3.
1. 877. 418. Some 596. Again, that’s, where a free credit consultation and the toll free phone number is 1 877 for 187 596. This is Dan Willis weren’t included. I’ll link in the description below over to an article on our website for the full scoop.
We also have a free report available there. These seven proven ways to boost your credit score and, of course, subscribe and join our congregation because coming up next, we’re, going to be talking about the best credit repair companies and some of the costs.
What you can anticipate when it comes to actually forking out some cash, so it is surprisingly much more affordable than many people think so have a wonderful day and looking forward to talking to you again here soon,