Many people think credit restoration is illegal or immoral. This is simply not true. I am here to give the facts; just the facts.
WHAT IS CREDIT RESTORATION?
Credit restoration removes derogatory items from the credit report using the Fair Credit Reporting Act. It does not remove the financial or moral responsibility for the debt. However, since we are all judged by what is on our credit reports, it is desirable for our 'blemishes' not to show on it.
WHAT IS THE FAIR CREDIT REPORTING ACT?
From Wikipedia, the free encyclopedia:
The Fair Credit Reporting Act (FCRA) is an American federal law...that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States.
Now, I can copy and paste the rest of the dictionary term, but you can easily Google this information. The bottom line is that consumers are entitled to accurate information. But everyone knows that credit reports contain errors. I know mine did. And who hasn't had a least one client (I had Robert Johnson) that you know can't have all that debt!
LEGAL credit restoration uses the FCRA, just like The Miranda Warning is used in criminal law. Note: I am a big fan of the original Law and Order series. if the data is not REPORTED correctly, it must be removed or updated. And the creditors must be able to substantiate the claim.
WHY SHOULD ANYONE USE A CREDIT 'REPAIR' COMPANY?
Well, I like to use the word 'RESTORE' since so many fraudulent companies have turned 'repair' into a dirty word. And not everyone needs to pay someone to do the work. If you are savvy about the law or know you never had a particular debt, it is definitely beneficial for you to dispute on your own. I don't know one mortgage broker that hasn't worked on their own credit or helped a few clients to get the deal done. The FCRA was established for the consumer to dispute items on their reports. But with 29 laws and 524 regulatory subsections... I don't detail my car, sew my clothes or groom my hair because I know professionals that can get me the results I want and I am willing to exchange money for the services.
Remember: The issue is not whether someone incurred the debt or lateness, but whether the information is reported correctly based upon the law. The 'Is' must be dotted and the 'Ts' crossed.
Finally, we all know there are disreputable firms out there for every service. Your job is to investigate who you are doing business with regardless of the product or service. Do they warranty their work? Is the cost affordable? Is it effective? If it sounds too good to be true... I still don't know how those companies that say 'We Can Raise Your Score to 720 in Two Weeks!' get away with that claim. If someone has personally experienced this...I stand corrected. However, if a consumer is looking for real assistance, there are good companies out there.