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Credit Repair Organization
Anne Said:Should I start a credit repair service?
We Answered:Go to http://www.score.org/ to find the nearest SCORE chapter. Contact them to arrange for a free one on one meeting with a SCORE counselor about how to start a credit repair service.
SCORE is a nonprofit organization. They provide a public service by offering small business advice and training. .
SCORE's 10,500 volunteers have more than 600 business skills. Volunteers share their wisdom and lessons learned in business. The volunteers are working/retired business owners, executives and corporate leaders.
Heather Said:Does anyone know resources of credit repair business?
We Answered:Well first off you have to know everything concerning the following:
The Credit Repair Organizations Act
Ensures that those seeking credit repair are given correct information to enable them to make an informed decision regarding the provision of credit repair services and that they are protected from deceptive or misleading practice.
The Equal Credit Opportunities Act
Prohibits the refusal of credit as a consequence of sex, marital status, race, religion, national origin, age or because of receipt of public assistance.
The Fair Credit Billing Act
Guidelines and procedures to resolve billing errors that appear on credit card accounts.
The Fair Credit Reporting Act (FCRA)
Gives the individual the right to know exactly what information is being reported about them by credit agencies.
The Fair Debt Collection Practices Act (FDCPA)
Rules and regulations to control collection companies and debt collectors and prevent them from using 'dubious practice' to collect outstanding bills.
The Home Ownership and Equity Protection Act (HOEPA)
Protects consumers by restricting certain terms of high cost home loans (eg sub-prime lending).
The Identity Theft and Assumption Deterrence Act?
Identity theft is a Federal crime punishable by up to 15 years imprisonment and fines up to $250,000. Clearly defines the individual whose identity was stolen as a 'victim'.
The Notices of Rights and Duties under the FCRA
Created to promote accuracy, fairness and the privacy of information contained in the credit files created and held by all credit reporting agencies.
The Truth in Lending Act
States that every lender must give every borrower written details of all costs and the terms of repayment prior to entering into a credit agreement.
Next you would need to obtain Liability Insurance in case you make a boo boo and someone decides to sue you. You also need specfic software to compile resources, maintain client information, a data base as well as legal resources that are updated. All of which charge fees for their services.
And last but not least about $12,000 in cash (averge cost for franchise)
So if you want to do what most people can do on their own, go for it afterall, some people just do not understand credit and how it works.
Here is a link I found, I do not endorse this company and have no
afiliation with it. I provide it solely for your information.
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
Barbara Said:Has anybody ever used BCR Consulting for credit repair?
We Answered:My name is Carl Bennet, I work for BCR consulting. I saw this post on a google alert and since the name of our company was mentioned beside the words “Scam” and “Waste of money” I think I should try to clarify a couple of points about credit repair and our company, I certainly hope this post will be Ok with yahoo’s moderators, I’m fully disclosing my affiliation with the company and answering a direct allegation against our business… We try so hard to be 100% compliant with the laws that this type of comments are really hard to sallow in silence
Not ALL credit repair companies are scams, many are I would agree with that, but is fairly easy to spot a fraudulent credit repair company.
Typically all of them will ask for money in advance, a set up fee, half at sign up and half after a month, full payment...
There is several different schemes and many different excuses used by credit repair companies to charge money in advance and make it look legal but the truth is that under the current laws this charges are unlawful.
There is federal legislation to regulate our business and protect consumers from unethical credit repair operations; specifically the Credit Repair Organizations Act (CROA) doesn't allow payments before services are rendered. All other companies try to work around this limitation stating that the set-up fee is the cost of opening the client file and they charge their monthly fee only after they send the letters in behalf of the client.
In my opinion consumers hire credit repair companies to improve their credit, that is the service they seek, all that administrative work and all the mailing is just the cost of doing business, a necessary step to provide the final service, but is not what the company was hired to do, charging money for those things is against the intentions of the law
We publish the full text of this Act and all other consumer laws on our website for anyone to read it ( http://bcrconsulting.us/html/LAW/title15… )
We are one of the few and proud companies in full compliance with the law, no excuses. Our clients hire us to improve their credit and we will not charge them a cent until we deliver a improvement.
Or company also provide free credit repair help, anyone is welcome to use our “Do It Yourself” page to make questions or request professional advise on how to proceed on any given situation, some of our clients actually prefer to do all the work and save money, we never had a problem with that, our staff will do their best to help them, we know chances are that they will succeed on the easy items and probably, they will hire us to work on the last, hard to remove accounts, for us this service is also a way to promote our business, they would recommend us to friends and family.
I’d like also to make a couple of comments on edancer post.
The idea that legitimate items are impossible to remove before the end of the seven and a half years reporting period is not true.
The Fair Credit Reporting Act states very clearly that only timely, accurate and verifiable information may stay in a consumer credit report if the consumer disputes such information.
This means that if somebody defaulted in a credit card, let’s say 4 years ago, and now want to improve his or her credit, the first obvious step is to discover if the credit card company still have documents to support their reporting.
Many banks and credit card companies get rid of old delinquent records as soon as the Truth in Lending Act and banking regulation allow them. Keeping all those delinquent records on file cost money so many companies just delete them hoping that the consumer will never dispute the information reported to the credit bureaus because is true and accurate, if the consumer disputes this companies find themselves unable to verify the information therefore it is deleted from the credit report.
Of course these banking lobbies work very hard to convince the general public that there is no way to remove accurate information but the law is the law and I don’t think that there is anything wrong with a consumer taking all possible advantage of it, these big corporations take advantage of every single loop hole they can find to increase their profits at consumer’s expense on daily .basis.
All these financial institutions have to do to put legitimate credit repair companies out of business is comply with the consumer laws, if they are in full compliance there is nothing we can do to remove the derogatory accounts, I don’t think is asking to much from them.
Some banks already seems to understand this, for instance Capital One and Chase started a couple of years ago to keep all delinquent records for at least seven years, if you have a loan with them and money is short give them preference on your payments, removing those derogatory accounts from your report later will be a problem.
Gerald Said:can someone please tell me a real credit repair company ,and how do o know if there real are fake ?
We Answered:The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
* companies that want you to pay for credit repair services before they provide any services.
* companies that do not tell you your legal rights and what you can do for yourself for free.
* companies that recommend that you not contact a credit reporting company directly.
* companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
* companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the one on page 6. Send your letter by certified mail, “return receipt requested,” so you can document what the consumer reporting company received. Keep copies of your dispute letter and enclosures.
Consumer reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.
When the investigation is complete, the consumer reporting company must give you the results in writing and a free copy of your report if the dispute results in a change. If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reportincompany also must send you written notice that includes the name, address, and phone number of the information provider. If you request, the consumer reporting company must send notices of any correction to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.
If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.
Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct – that is, if the information is found to be inaccurate – the information provider may not report it again.
For more information, see How to Dispute Credit Report Errors at ftc.gov/bcp/conline/edcams/credit/ .
Reporting Accurate Negative Information
When negative information in your report is accurate, only the passage of time can assure its removal. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting: information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.
For more information, see Building a Better Credit Report at ftc.gov/bcp/conline/edcams/credit/ .
Elsie Said:What experience(s) has anyone had when using a credit repair/restoration company?
We Answered:I work for a credit report repair company. The truth is that no one can offer services that you couldnt do on your own. They should be paid for services not for results because they cannot guarantee that items will be removed even if you really want them too. The best any one can offer is a warranty on their services meaning if they cannot get items removed within a certain time frame that you may be refunded money.
Another sign that a company is fraudulent is if they require payment for work before it is offered. Everyday I hear of someone paying thousands of dollars upfront for credit repair.... this is wrong...very wrong!
All legitimate credit repair organizations will have a contract! More than a handshake.
No one can estimate how long credit report repair takes!
People who are searching for a credit report repair company should probably read the Credit Repair Organizations Act at http://www.ftc.gov/os/statutes/croa/croa… It has a lot of big words and some of it seems to be nothing more than legal mumbo jumbo but read through so that you know your rights.
You should also check with the BBB to see how long the company has been is business, and that they actually exist. The BBB really isn't good for anything more than that.
I hope this helps people in their search!!!
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