Self Help Credit Repair Guide

Transcription

1 Self Help Credit Repair Guide This report will inform you of your rights under the Fair Credit Reporting Act (FCRA) and what you can do about it! In 1971 Congress passed legislation to protect consumer s credit rating. The Fair Credit Reporting Act was enacted to force the credit bureaus into showing backup documentation for any negative items they report on a consumer s credit. There have been a number of revisions to further protect consumers from unscrupulous credit reporting and still the credit bureaus flaunt the law! The Truth Is They Don t Have The Proof Required By The Courts! Disputing your credit (in this case) is not about contesting the accuracy but challenging unverified information. The burden of proof lays with the credit reporting agency not the consumer or the creditor. In recent court cases in favor of the consumer against the credit bureaus the same scenario is repeated: YOU JUST CAN T HIDE FROM BAD CREDIT! Case Law: The court reasoned that such a result was the only one consistent with the language of 1681i(a), which requires "that the ` consumer reporting agency shall within a reasonable period of time re-investigate' and `promptly delete' inaccurate or unverifiable information." Id. (quoting 15 U.S.C. 1681i(a)) (emphasis in Stevenson ). The court expressly rejected the same argument made here by TUC (TransUnion Corp.): "that where fraud has occurred, the consumer must resolve the problem with the creditor." Id. Rather, the statute places the burden of investigation squarely on" the consumer reporting agency. Id. The FCRA evinces Congress's intent that consumer reporting agencies, having the opportunity to reap profits through the collection and

2 dissemination of credit information, bear "grave responsibilities," 15 U.S.C. 1681(a)(4), to ensure the accuracy of that information. The "grave responsibility imposed by 1681i(a) must consist of something more than merely parroting information received from other sources. Therefore, a reinvestigation" that merely shifts the burden back to the consumer and the credit grantor cannot fulfill the obligations contemplated by the statute. The Longer You Wait The More It Costs You! Illegal reporting can cost you thousands of dollars each year in higher interest rates, longer loan terms, higher fees. It can cost you a job or a promotion, keep you from getting an apartment or a security clearance. It can hurt your chances of opening your own business or keeping your business open. It costs you more in Auto and Homeowners insurance! The sooner you act the more money you will save! How Safe Haven Credit Is Different There are far too many choices in credit repair companies. So what sets us apart? A dedicated Customer Support group to answer all of your questions and over 15 years of experience in dealing with the credit bureaus. Assistance in getting new credit even if you currently have bad credit. Concise and Powerful information on increasing your credit scores. Strong tactics. We want your process completed as quickly as possible not dragged out over years. Month to month Membership fee. Use your membership only until your reach your qualification goal. Cancel at any time! There are no other fees! Customized credit disputing. Customized step by step credit restoration. One of the lowest costs in our industry, only $79 per month! Top Ten Credit Repair Tips 1. Monitor Your Credit. Know what is being reported about you. Order your credit report annually for free. Go to This is a free yearly report and your right by Law! 2. Dispute. The law allows you to contest any information on your report. Do so. Even though the CRAs will do everything within their power to intimidate you from challenging what they report, you are protected under the FCRA and they must comply. You can clearly contest this information yourself! You do not need a credit repair company to assist you. However, there are many factors which you might consider in doing so. Write a letter to each bureau reporting negative credit and ask them to investigate negative accounts. Under the FCRA they are required to respond within 30 days, and to have contacted the original creditor and beyond to determine the validity of each account. Any account not verified must be deleted.

3 If an account is verified, you can dispute it with the original creditor as well. Ask an original creditor to investigate an account and provide original documentation proving the account belongs to you and how dollar amounts and fees were calculated, etc. It is typical of the bureaus to get only electronic verification of an account, they never see or go after original documentation. And in many cases, creditors do not keep records of closed accounts or old accounts. If they do not have the records to back up what was reported it must be removed. 3. Protecting your credit. Identity theft continues to plague consumers Fraud Alert. When your report is flagged with a fraud alert it tells lenders to double check and review your credit information each time someone applies for a loan in our name 3.2. Security Freeze. By freezing your credit, you lock credit information at all credit bureaus so that the agencies are unable to release your data unless you give them permission to do so Learn about credit suppression. The credit bureaus are FOR PROFIT companies! They sell your credit information. Putting a promotional suppression statement on your credit file prevents the bureaus from selling your information Opt Out. Read the fine print on credit agreements. Companies you do business with retain the right to pull your credit and share your credit information with other companies they own or do business with. But they provide you a method called opting out to reduce or eliminate this sharing process. 4. Raising Your Credit Scores Lower Your Debt To Credit Ratio. Try to keep a low debt-to-credit ratio the ratio of your credit card balances to credit limits, meaning that if you own a credit card, your card balances should be only a small fraction of your available credit. For instance, if you have a limit of $1,000, your balance should stay well under $300. Aim to keep your balance below 30% of your limit on each card or if you re a customer with a good history, ask your current credit card issuers to raise your limits. Most will oblige. Most lenders look at both your total debt-to-credit ratio as well as the debt-to-credit ratio of each credit card, the less you utilize your credit, the better. Do your best to maintain favorable ratios for both Pay on Time. Goes without saying, your score is very sensitive to whether you pay your bills on time. One missed payment could lower your score significantly. In fact, missing just one payment can lower your credit score by as much as 100 points. So stay on top of your credit card, loan, and utility bill deadlines. If possible, set up automatic payments that take an amount you specify every month from your checking account, making at least the minimum payments. Don t blemish your credit report with late payment Adding an Authorized User on a credit card. This is a simple procedure that each creditor will do if requested. This gives the new user the good credit history added immediately to their credit file. 5. Don t apply for unnecessary credit. Though new credit is the least important factor in your score, it is still an important issue to consider. Unless it is necessary, don t open credit accounts you don t intend to use as it will lower your credit score. This is because it has been statistically proven that those acquiring more credit are a bigger lending risk than those

4 who are not. Last but certainly worth a mention is that the length of your credit history accounts for 15% of your score. Those with long, established credit histories fare much better than those who are just becoming financially established. Sure there is little you can do about this, except to maintain a solid track record of using borrowed money wisely by sticking to the above tips. 6. Understand how the law protects your credit. Sections 609, 611 and 623 gives consumers clear protection against the credit bureaus and creditors under the FCRA (The Fair Credit Reporting Act) Section 609 states that the CRAs (credit reporting agencies) are required to clearly disclose all information about the consumer when it is requested Section 611 describes the procedure in case of disputed accuracy. It shows the required timelines in which the CRAs must comply and that they must go beyond accepting a third party source for information & verification (in most cases, the CRAs use E-Oscar an electronic method where no physical viewing of any documentation occurs). Without physical proof there would be no legitimate accuracy only hearsay. This can be challenged under the law Section 623 describes the requirements of a creditor (referred to as a furnisher of information ) when a case is disputed for accuracy. In July of 2009 Congress amended the FCRA holding creditors/furnishers to the same high responsibility of reporting accurate information as the CRAs. If an account is challenged then the creditor must provide the same proof documents as the CRAs. In so many cases, creditors destroy information within 24 months and are unable to provide original documents which are required under the law. Without proof, the creditor must permanently remove the information they are reporting about you. 7. Debt settlement. This can be a tricky thing when reported on your credit report. Knowing how to write a simple yet effective debt settlement letter is very important because it is the first step you need to take to renegotiate yourself out of debt. Debt settlement, also known as debt negotiation, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. A debt settlement letter (often called debt settlement agreement ) is a binding contract between you and the creditor and if done correctly, can help get out of debt faster and in the process, improve your credit score. There are a number of things that should always be included in one of these letters to make sure you aren t setting yourself up for trouble. Here s an overview of what you need to include along with a sample letter: 1. Always make sure your name, address and zip code are located on the letter, along with today s date. 2. The creditors name and address should follow, along with your account number. 3. Address the letter to someone helpful you spoke with by phone if possible. 4. Explain your debt situation and what you plan to do. 5. List the amount of debts you have and what you can do to improve your chances of repayment, such as a new job. 6. Be sure to include a proposed settlement amount, along with your terms. When you receive a letter back agreeing to your terms, include a payment. 7. Sign the letter and date it.

5 8. Debt collection. This can be a nightmare! However, even here you are protected under the FDCPA (Fair Debt Collections Practices Act). Much like the FCRA, debt collectors must be able to document several things when trying to collect a debt. What does the debt collector need to provide as debt validation? Proof that the collection company owns the debt/or has been legally assigned the debt. This is basic contract law. It is very difficult to get a judgment without a direct contract between collection agency and the original creditor. At a minimum, some account statements from the original creditor. If you really want to get sticky, you can pin them down on the amount of the debt by requiring complete payment history, starting with the original creditor. (How the heck did they calculate this debt? What fees/interest have tacked on to this debt and how were these fees determined?) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept Copy of the original signed loan agreement or credit card application. (Your contract with the original creditor establishing the debt between you.) However, account statements from the original creditor can fulfill these requirements. Proof that this debt collection company has the right to collect the debt in your state (is licensed). As is too often the case, the collection company may not be able to fulfill all of these requirements. If they can t they are prohibited from both collecting the debt and reporting the debt to the credit bureaus. 9. Be Careful of Creditors pulling your credit. Each time a creditor pulls your credit for review it will reduce your credit score. The larger the purchase (a home vs. a credit card) the greater the reduction. There are some rules to reduce this affect, for instance when shopping for a car, have your credit reviewed within a very short time period (say 7 days) by several dealerships and your credit will only reflect a single credit pull. 10. Closing accounts with long credit histories. This can actually have a negative effect on you credit. Having established a long positive history is one of the biggest factors in maintaining a solid credit score. Be cautious about which accounts you close. With newly established accounts, be sure to use them sparingly to establish a positive credit history. 11. Use online banking. This new convenience saves you money and protects you because the bank pays your bills by either direct deposit to creditors or checks to creditors written with no account numbers on the check in case they are stolen. 12. Pay for a credit monitoring service. Yes there is a cost, however if you don t have the time to monitor your own report this will protect you and give you piece of mind. This self help guide may be all you need. However, if you feel overwhelmed by the task of restoring your own credit, Safe Haven Credit can help. Call us for a FREE credit consultation. We are happy to explain our program or offer alternatives to assist you in reaching your goals. The next part is up to you. Our program has successfully helped 100 s each month. Let us help you get started. Enrollment is simple and our process is easy. Feel free to give us a call to discuss your case. (877) CustomerSupport@SafeHavenCredit.com

6 Legal Disclaimer Please note this information is NOT to be considered legal or financial advice. It is for educational purposes ONLY. Furthermore, it is not intended to lead you in to any particular course of action. We recommend that each person do his/her own due diligence. We feel every American should know what the law is. Any actions you may take as a direct result of your discoveries obtained from this presentation are and will be of your own free will. We do not advocate any unlawful actions. We simply promote the law, as written, and as found within the information acquired. We cannot and do not give any legal or financial advice to any entity under any circumstances. We simply provide information, education, laws, codes, sources, cases, history, and other documentation to allow you the reader come to your own conclusions and pursue further research if you so desire. We believe everyone should and MUST adhere to the law as written.