Many of us have had a copy of an old credit report when we go on a vacation or change a spending limit. But it is important to realize that several credit repair agencies have been making changes to the terms of most new offers, often after consumers have had a complaint with one of their credit repair agencies. When you apply for and receive a credit report at one of the several websites that I linked above, you are probably told that one of my rights is to free up my credit, and another is to charge others to read my report so that they can make informed decisions about my finances.
You may be warning that making sure your copy of your credit report is accurate may actually result in ‘Credit Repair Agencies’ being used by unsuspecting consumers. After all, they are part of the game, and they have something to work with if they want to steal your money or strip away your bonuses.
I have heard from a senior homeowner who has been on credit scores of 120000 for 10 years and he can tell you about one of his problems.
The homeowner now has credit scores of 1179000 and his credit score is at 678800. He was told that if he offered to pay the homeowner 50%, if he got a 20% raise he would have to pay off his credit debt by 15 years and pay off the mortgage with 30%. That isn’t realistic at all, and his 10 year old mortgage bills (with interest rates of 29.85%, interest rate for 25 years) are now worth over $8,000. Since only he had the money to pay off his debt, the homeowner has to pay more than 30%, in this case that mortgage. I think the homeowner should be making 60% less than he did a few years back.
It is very important for you to get the information in a truthful and timely manner, otherwise one of your more cynical clients may report you to a credit reporting agency as a client who has had a bit too much to lose.
I will tell you something that everyone does, but no one has been following up on consumer complaints about credit repair agents that are trying to remove any evidence of their bad credit while trying to secure favorable credit approvals. And I know not a single lender/bank will agree to that type of work with any individual. I know for a fact that one reputed agency won’t require an applicant to pay any fee for their services, as long as the applicant actually does pay a fee.
Now it might be hard for you to work and pay as many as 25%, or even 50%, or 75%, even as much as you possibly can for the services provided by a reputable credit repair company. And I’m not discussing any money to do anything other than to spread the word on consumer-level about the very real harm done by credit repair.
I find what I’m saying rather cynical and I find it very disturbing. But don’t believe a word I tell. This kind of information is based on a sincere misunderstanding of ‘experiences’ and not a genuine misunderstanding of fair use. The only real way to solve this problem is to ask the wrong questions honestly and honestly.
Yes, consumers should have to ask, ‘Why did they do it?’ When the source of the information is obvious, you should then ask, ‘Why is it important that consumers learn about credit repair information before releasing it?’
If you think it is important for consumer to learn about the risks, then you are naive. At best, you’re fooling consumers. At worst, you’re using unfair tactics. And truthfully, there were far better ways. Federal law has more power and you’re entitled to a free press to share information. Thus, you have the right to share information in a manner that is truthful and free (for consumers to correct information and to seek legal remedies).
Disclose it is okay to disclose it; do so; and use common sense.
Credit Repair Scams
Federal law requires that they inform potential creditors of serious damage they may incur if they do not file a bill on time or report the erroneous transaction to a non-receiving creditor. Among other things, collection agencies make false and misleading claims about their ability to collect and recover money from debtors, and they are prohibited from passing along any information to a collection agency about serious collection problems until the agency reports the accurate information to a special collection division.
The Fair Credit Reporting Act (FCRA) requires that collecting, approving, and reporting companies submit to a federal court a complete list of the potential collection mistakes they may encounter.