Great article straight from the FTC  Website.

Remember folks…there is nothing a credit repair firm can do you for you that you can’t do for yourself…often quicker and cheaper!

Click Here For Full Story:

A credit repair company that falsely claimed it would help boost consumers’ credit ratings will settle Federal Trade Commission charges filed last year as part of “Operation Clean Sweep,” a federal-state crackdown on credit repair scams.

The FTC charged the Chicago-based defendants with falsely promising to remove negative information from consumers’ credit reports, even if it was accurate and current, in violation of the FTC Act and the Credit Repair Organizations Act. They also allegedly violated federal law by requiring payment before any service was provided to consumers. According to the FTC’s complaint, the defendants’ advertising stated, “We would never charge a large fee up front, or make you wait a long period of time to refund your money if we do not get results. You WILL see results in 60 days, or your money will be refunded in full . . . .” They charged $495 per person and $665 for a couple and required $219 or $269, respectively, in advance.

The settlement order bars the defendants from further violations and from misrepresenting:

• They can improve consumers’ credit reports by permanently removing negative information, even when it’s accurate and current;
• They can otherwise improve a consumer’s credit report or ability to obtain credit;
• The full cost of their services and any restrictions on consumers’ use of those services;
• Their refund or cancellation policy; or
• The benefits of using their goods or services.

The order imposes a $226,793.90 judgment that will be suspended once they pay $20,000. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition. The order prohibits the defendants from collecting any payments from consumers who purchased their services before October 23, 2008, when the court halted their business practices and froze their assets. The order further bars them from
disclosing or benefitting from customer information, and failing to properly dispose of customer
information.

The defendants are Advantage Credit Repair LLC and Mark D. Solomon. The Commission vote to authorize staff to file the stipulated final order was 4-0. The proposed order was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division.

The Commission appreciates the assistance of the Better Business Bureau of Chicago & Northern Illinois in this case.

The FTC offers consumer information, “Credit Repair: How to Help Yourself,” athttp://ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm, and advises that only time, a conscious effort, and a personal debt repayment plan can improve a credit report. The first step is to learn what information is in the credit report. If there are errors or mistakes, federal law provides the right to have them corrected – free of charge. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – provide consumers with a free copy of their credit report once every 12 months, if requested. To order your free report, consumers can visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form.

Hello again and Happy New Year to all of my subscribers.

If cleaning up your credit reports and increasing your credit scores is a goal for you in 2010, then this may be the most important message you will have seen this month!

Since January seems like a good time to get started on New Years Resolutions and you want to repair credit report, then follow along as I guide you through the process of getting your credit reports (notice I didn’t say credit scores, more on that later)

To take full advantage of all the content available to you now, and increase your score as fast as possible, you’re going to need to get the bureaus “standardized” reports. You can only get them through the mail.

UPDATE: Alright, I’ve changed my tune a little on this one. If you are in a BIG hurry, you can get them online at www.freeannualcreditreport.com. Print the reports and save the link information. This usually takes about 30-45 minutes. Transunion gives you their “standardized” report online. Equifax and Experian give you reports that are very similar and easy to work with.

Annual Credit Report Service: 1-877-322-8228
OR www.freeannualcreditreport.com

If you don’t qualify for a free report, then call:

Experian 1-888-397-3742 (Depending on calling area)
Equifax 1-800-685-1111 (Depending on state of residence)
Transunion 1-866-726-7388 ($7.95 for report & score)

** Have a credit or debit card and about $28 available.

OR

If you have an old copy of your credit report, you can dispute an address, or wrong name, and mail it to each bureau. Request a free updated report in your dispute, and mail it first class.

Always remember to include in your dispute your:

Full name
Current address
SSN
Date of birth
Previous address

… As well as a copy of a government issued photo ID and your SSN card (or a copy of some type of utility bill in your name that matches your address.)

OR

If you’ve been denied credit, insurance, or other benefits within the last 60 days, mail a letter to each bureau requesting a free report with a copy of the denial notice.

OR

Some prefer to use one of the bureaus online 3-in-one services so they can monitor their reports. Do what works for you! In any case, get as many reports as possible so you can compare them and find different angles of factual dispute.

OR

Instantly get a free Experian report online by initiating a 90 day fraud alert. This alert will transmit to Equifax and Transunion, so you might not want to do this if you are seeking any credit within that period of time. If you do apply for credit within 12 months, make sure the fraud alert is removed PRIOR to applying. You can get your free instant report here:

https://www.experian.com/consumer/cac/InvalidateSession.do?code=SECURITYALERT

Remember, this is a tactic I recommend to get the most information on a credit report for your dispute process.

When you want to get your FICO scores, I always recommend going to www.myfico.com/12.

Until next time,

Mark

   Hello Everyone and welcome to 2009! I have been pouring over the many  e-mails that my students and followers of this blog have been sending to me. I will address some of the more common questions and topics each week here at the blog. One that keeps coming up is; what to do if you have been caught up in this financial crisis that most Americans have found themselves in.

   First off, Don’t Panic! I know that losing a home, losing a job, being WAY behind on credit card payments, or having a car repossessed  may seem like the end of the world. Trust me…is isn’t. This too shall come to pass as they say.

 

   Today, many Americans are falling on economic hard times.  Through no fault of their own, companies have downsized and passed out pink slips to countless good employees.  Even if new positions are found the next day, they generally come with a significant pay cut. Thus, it is impossible to meet mortgages, pay student loans, or keep up with minimum credit card payments. Even when the economic crisis is over, many individuals will need to know how to repair credit following financial hardship.

 

   Generally, credit report repair can take up to seven years to accomplish.  Credit history, good or bad, stays on the books for a significant amount of time. Potential lenders need to know how money issues have been handled in the past, how finances are today, and whether individuals are a good credit risk for tomorrow.

 

   However, knowing how to repair credit is the first step in rediscovering financial freedom and getting out from under the burden of debt for good!

Begin by:

 

·      Living within your means

·      Getting rid of temptation

·      Making payment arrangements with creditors

·      Combining debt

·      Seeking advice

 

   Learning how to repair credit may sound simple in planning, but the execution may be one of the most difficult tasks you have ever undertaken.

 

Live within your means

   In today’s society, it is so easy to get into the mode of buy now, pay later.  Department stores sometimes offer significant discounts if customers apply for the store credit card.  Even the federal government wants to give incentives for lenders to provide more credit for potential borrowers. Of course, any savvy individual knows how this philosophy can spell financial disaster. 

 

Instead of falling into the financial trap, live within your means and discover how to repair credit by simply saying “no” once in awhile.  For example, if a daily latte does not fit into the family budget, start putting coffee in a thermos before going to work.  If going out to eat, followed by a movie on Friday night means gambling on whether the utility bill can be paid this month, make a simple dinner at home and rent a movie.

 

Getting rid of temptation

   Learning how to repair credit means getting rid of temptation to keep digging in that pit of financial woes.  Make sure you cannot spend it, if you do not have it. Yes, it is time to put ALL of the credit cards through the shredder.  If the pain is too great, a good friend will be glad to do the deed for you. Then, you can escape the trap the majority of Americans have fallen into over the last few years.  Pay cash, or walk away.

 

Making payment arrangements with creditors

   The next step in learning how to repair credit is contacting all the companies to whom you owe money.  Set up a feasible plan to eradicate the debt.  Most people are willing to work with customers who are genuinely making an effort to escape the debt trap. They simple need to have a plan you can both live with, until the debt is resolved.

 

Combining debt

   One of the biggest obstacles to learning how to repair credit and reach financial freedom is the massive interest rates on credit cards.  Most people would faint if they truly understood the interest being charged each month, and how many years it will take to achieve a zero balance with only the minimum payment.  Multiply the problem by six or seven credit cards and it is now a financial disaster!

 

   One of the first lessons in learning how to repair credit is combining debt.  Many card companies offer cheap interest rates on balance transfers. Naturally, they would rather be making a profit than leaving the charge to a competitor. By transferring debt from a credit card with higher interest, you might save hundreds, if not thousands, of dollars over time.

 

Seek advice

   Last, but definitely not least, seek the advice of a credit repair expert.  For example, if you live in Texas, you may want to look up credit repair San Antonio in the yellow pages or online.  The key is to find someone who has the knowledge to help you get out of debt ASAP.  Then, credit repair can begin in earnest, as the wounds of debt begin to heal.

 

   Look, there are many credit repair books, tapes, seminars, and services out on the Net. Of course I am bias to my credit repair advice, but there are also some very reputable sources of info. Just realize that you can do better than most so called credit repair companies. 

Stay tuned!

Your Credit Score Insider 

Mark

www.CrushingTheCreditBureaus.com