Credit Repair Services

Credit repair services are offered by quite a large number of companies on the Internet ostensibly to help debtors erase bad reports in their financial record through a number of actions, some of which are legally questionable. A firm offering a credit repair service will get copies of the consumers financial reports from the three reporting agencies, then contact the creditors for documentation of the debt and the reasons for the negative report. If the individual has documents that directly dispute their claims (of no pay or slow pay, for instance, or purchases never made), the company will follow through with letters of dispute.

Many agencies claim to clear bad reports from a persons record within six months, and some do deliver. Of course, there are fees involved with a credit repair services. Initial fees for analysis, monthly or hourly fees for work done, and other charges can be accrued. Only the debtor knows if it is worth that much money for the credit repair service he could do himself. If a person chooses to hire someone to confront this problem, they should check them out carefully first and should not pay for services until they have been performed. "He that walketh uprightly walketh surely: but he that perverteth his ways shall be known." (Proverbs 10:9)

Some firms selling these services claim to be able to erase a bankruptcy from the consumers record. This can be tempting, but should not be believed. By law a bankruptcy stays on a persons financial record for ten years. One of the credit repair service schemes that is being offered is changing identity by applying for an employer ID number instead of using a Social Security Number. This is illegal, and the consumer, not the company offering credit repair services, can be prosecuted for such actions. Companies who make such claims should be looked at with suspicion. After collecting substantial fees from the consumer over time, these companies are likely to just disappear.

The Federal Trade Commission recommends that debtors provide their own service when fixing financial problems. First, the individual is entitled to one free credit report annually from Equifax, Experian, and TransUnion in their credit repair service process. If there are negative reports the individual wants to dispute, they can get documentation together and send copies with a letter explaining their position to the creditor as part of their service. If the individual is proven right, they can ask agencies to remove the negative report from their file. They are also required by law to send a letter to everyone who has requested a credit report on the consumer in the last six months. If this attempt at credit repair services isn't successful for some reason such as the lack of documentation, the individual can at least put a letter on file disputing the report and explaining why. Other people checking the consumers financial history will take note of that. The best repair companies will make sure the individuals payments to creditors are made on time and in the right amounts.

Add to: File Insurance Business article Teen Photo Images