The short answer is “No they are not”. However, when you are looking at doing credit repair yourself, you must be careful to whom you are listening.

There are credit repair courses available that teach you how to repair your credit and get back on track financially. These courses many times are free and can be taken by anyone. The entire purpose of the courses is to help consumers take control of their finances by teaching them about how to manage their money and learning different methods of spending and saving.

Part of the courses were helping you find better ways to manage your finances and to look at your money as something not to just be spent, but also to be save. Make your money work for you instead of you working for your money. More than that, credit repair courses help fix your credit, and improve credit score & definitely making sure that you can maintain good credit and will not fall into the same problems again in the future.

A few things that credit repair course can do is help you repair the credit that you have. Every repair course will be slightly different, but the results will always be the same, to fix your credit so you do not have further problems. You will learn how to write letters to the three major credit bureaus to make sure that they fix any errors or incorrect information on your reports.

Thousands of people have wrong information reported on their report that further lowers their score. Learning your consumer rights to have the mistakes fixed and corrected is a major part of course. It can be very difficult to get the credit card companies and banks, as well as the bureaus themselves to fix the errors. You will learn what to write, who it needs to be sent to, and what information needs to be included. You will also learn what information can be reported or used against you and what should not, how to have old information removed permanently and removing black marks as well.

Each state has varying rules on information being reported, however learning how to remove these negative marks will further improve credit score. Also, remember that your score will not go up over night. It will take a few months of letter writing and checking your reports to make sure the information was taken off. However, you will slowly begin to see your score improve and go up.

These courses if applied correctly will raise your credit score which is extremely important even if you have no plans of using credit cards and loan again. Having a good credit score can affect many areas of your life as well. With better credit score, the better the offers you will receive and the less hassles you will experience with your application.

Your Credit Score Insider,

Mark

     Can a credit repair company really clear your credit?  Yes, credit repair companies are and have been very successful at helping people clean up their credit reports. It is truly astounding how many people out there believe that credit repair cannot work and credit repair companies are nothing but scams.

     While some credit repair companies are outright frauds, others are not frauds and they use the dispute process to obtain impressive results. For those consumers who have many negative credit issues and do not wish to spend the time or energy disputing their credit reports, credit repair companies are a great and often affordable solution.

     Credit repair companies are regulated by the Federal Credit Repair Organizations Act which prohibits certain actions such as charging for services before they have been performed or offering to create a separate or “new” credit files. Credit repair companies are prohibited from charging or accepting advance payment for their services. They are also required to provide consumers with complete information about the services they will provide.

     Some credit repair companies are operated by “financial professionals” or “credit experts” who may or may not be able to help you resolve any legal issue that comes up while you are going through this process. While some credit repair companies are all about taking individuals for every dime they can get, some of them are actually legitimate.

     Reputable credit repair companies are a viable resource if you are in a position where you need credit repair and don’t feel you have the time or inclination to repair your own credit. However, they are not going to be helpful to everyone.

     Because credit repair companies are not permitted to order credit reports (see the permissible purposes section of the fair credit reporting act), you will need to help them with this process. So for those thinking that this process will be completely “hands off”, you must be aware that you are going to have to be involved with your credit repair.

     The credit repair companies are under immense pressure from government agencies, credit counselors, finance companies and banking institutions: and of course the main credit reference companies who rely on poor credit ratings to earn profits – at times it is difficult to see who the “good guys” are!! There are some reports that many credit repair companies are actually covers for lenders and finance brokers that really just want to sell you a loan.

     Some food for thought…remember that most of these companies are in business to make money. Do you think it might be in their best interest to keep you paying them monthly for as long as possible while they “fix” your credit? Or do you think you might bite the bullet and do your own credit repair cheaper, better, and faster yourself?

   I wanted to share with my readers some insight a couple of colleagues shared with me over the weekend when I was speaking at a Private Money Investment Seminar for Real Estate Investors In Atlanta.

   One of the topics that came up was how these real estate investors could help some of their clients or customers that they are working with on real estate transactions. Some were other investors who needed high scores to qualify for loans, others were investors who needed to sell a property and they wanted their buyers to fix their bad credit.

   Every time you turn on the TV or open the newspaper, you see stories of people who are suffering from the financial effects of bad credit.  They are in over their heads with credit card debt, and may be at risk of losing their homes to foreclosure.  I mentioned to the attendees of my workshop presentation that “Hey, you know a little something about credit repair – you will able to raise your own credit score recently.  You are the perfect candidate to help other people solve their credit problems.  You can become a credit restoration specialist.”

 In this article I wanted to give y’all some tips for preparing for this fast growing field.

Tip #1:  Get smart.  

   Gather all of the information you will need to be successful.  Invest in manuals or other educational materials that provide you with proven tips and techniques for helping others with their credit problems. My book Crushing The Credit Bureaus would be a good start.

Some publishers offer home study courses, eBooks, and even audio CDs that will help you build the knowledge base you will need.

Tip #2: Stay legal.  

   This past week there were over 30 Credit Repair Companies that were shut down by the FTC. Most of them I had never heard of, but some of them were household names in the credit repair world. There are an increasing number of laws and regulations being enacted to protect consumers in financial trouble.  

   You need to be aware of them all.  And remember that some of the legal information will be specific to your state.  You may even have to be licensed or certified to practice in your area.  You will want to share legal disclosures and disclaimers with your clients; this protects you from legal risk while informing your client of what you can and cannot do legally.

Tip #3:  Be reputable.

   Consumers in trouble will be wary of those offering to help – they may have been burned by a shady credit repair company in the past.  It’s up to you to deal with your clients honestly, and with integrity. Joining a better business bureau or other professional organization in your area will help add to your credibility.
Tip #4:  Loose Lips, Sink Ships.  

   Your clients will be entrusting you with private, personal financial information.  You must respect the confidentiality of the information you are given.  A sure way to ruin your career in credit restoration is by violating that trust by sharing that information with others.

Tip #5:  Select a method.  

   You can provide your credit restoration services on a private, one-to-one basis, or by holding credit counseling classes for a group of clients.  You might offer a free seminar, where you describe what you can do to improve your client’s credit and raise their credit scores.  Use the seminar to build your base of paying clients.

Tip #6:  Stay current.  

   Lawmakers are finally taking action to help solve the average American’s credit problems.  You need to find a resource that provides you with frequently updated information about today’s laws, regulations, and techniques related to repairing credit.

   The success of your credit restoration business will depend on your ability empathize with your clients, negotiate with their lenders, and carefully document all your efforts.  Credit repair is an art, not a science.  You won’t be able to help 100% of your clients.  But if you are realistic in your goals and apply yourself diligently, your clients (and your bank account) will thank you.

Stay Tuned,

Your Credit Score Insider,

Mark

When You Send A “Debt Validation Letter” To A Collection Agency And You Are Lucky Enough To Live In The Lone Star State, The CA Has 30 Days To Validate Or They MUST Remove The Item…

Dear Friend,

     Not only must the Collection Agency stop reporting the negative item to the credit bureuas, they potentially face a stiff fines and penalties! How great is that? I am going to break this post down into two sections for ease of reading.

     There are many templates of validation letters out there on the Internet. I have taken the best parts of them and added my own based upon what I know has helped my students and I with 100% removal of Collection Agency accounts from credit reports.

     I use the same template, just change the account details to fit your particular situation.  Remember, these codes and regulations apply to residents of Texas only. If you wish to find out more about credit repair, simply go to www.CrushingTheCreditBureaus.com 

     By law a collection agency  must cease collecting and contact the Original Creditor (OC) to get validating documents and send those document to you. Now there is a lot of debate about what constitutes proper validation – but in court (where it matters) they MUST show these things:

1. Signed agreement or contract: They need this to prove you entered into a legal obligation with the OC and to justify any extra fees they are tacking on such as collection fees and/or interest. They can not just simply decide to charge you interest or fees.

2. Statements for the life of the account: These are to show what monies were paid into the card and what charges were made. This is also to determine exactly what you owe and how much you have already paid into the account (not to mention it sets the dates for SOL.)

3. Documentation from the OC (or the last debt collector): Do they now legally own the account. They must have a bill of sale, a transfer, whatever they use to transfer ownership of the account.

4. Licensing and/or bonding: If your state requires them to have these things, make sure they have them! If you can’t find them when you are researching, then ask them for it!

Using my sample letter as a reference, I will detail the parts of the letter.

Opening:

You just want to list all the important information here, the certified letter #, the account number, anything else you included if you sent more (such as the fact I sent a letter to both a CA and a CA collecting on behalf of the CA.)

Opening (before the mention of the finance code):

Basically you just want to open with the basics of your research. You found the debt on your report, you got a call, etc. You also want to mention if you could find no bond and/or licensing info (if required).

Body of the Letter (after the finance code, before the written inspection):

Here you want to list in detail any inaccurate information you have uncovered and ask for it to be corrected or removed. You also want to add a partial cease & desist paragraph that basically tells this CA that they are no longer allowed to contact you by phone at all, that if they wish to converse with you it will be through the mail service. Now the finance code part is only for Texas, though other states may have similar laws, you would need to research it or stay specifically to the FDCPA and FCRA.

Written Inspection:

This is also just for Texas, it is the requirement to be able to later sue the company. I try to write it out in very precise, numbered paragraphs that spells out what the problem is, what I want done about it and the consequences if these things are not done. In the case of debts, it is to properly validate and to correct the credit report inaccuracies.

For those of you not in Texas, or just wanting to use the federal laws, just make a statement that you will not tolerate any violations of your rights and that includes not validating an account they have listed on the credit reports until they have provided validation.

Be warned, if you want the CAs to comply, you will likely have to drag them to court to do so, but remember you can recoup all costs of court! Keep copies of EVERYTHING! Including the letter you write!

Here’s The Letter I Have Used In The Past:

NCO Medivac POB 41448 Philadelphia PA 19101

Re: Accounts listed with credit reporting agencies (Equifax, Transunion, and Experian)

Account Numbers: ###### ######

Certified Mail # #### #### #### #### ####

Included: Letter to West Asset Management

Dear NCO Medivac:

     You are reporting the above listed accounts on the various credit reporting agencies, namely, Equifax, Transunion and Experian. Please be aware that these accounts are under my maiden name of Jacqueline Smythe.

     I have also checked with my Secretary of State for the required $10,000 surety bond that is mandatory in order to pursue collections within the state of Texas. However, I could not find a listing for this particular office. If you do not have such surety bond, then you must cease all collection activities and remove these accounts from my credit report immediately.

     If you do carry the required bond, I will need to know the name of the surety company as well as the bond number.

Also, as per the Texas Finance Code § 392.202.

     I am disputing the accuracy of these items. According to the above referenced Texas statue you must cease any and all collection activity and respond to this letter in 30 days with proper validation, or you must delete these items from any and all credit reporting agencies you reported this inaccurate information to and permanently cease all collection attempts.

     Please be advised that I am requesting Proper Validation, not verification. I already know you allege I owe these debts. I need proper documentation from the original creditor such as billing statements and anything with my signature.

     I also need documentation that you are legally able to collect these debts on behalf of the original creditor or that you have bought the accounts. I am also entitled to a breakdown of monies owed and proof that any and all charges and interest fees are legal in the state of Texas.

     These accounts are also listed incorrectly in respect to the various credit reporting agencies. For example, with Experian you are reporting the accounts as type: Installment and Terms: 1 months. With Transunion you are reporting them as Factoring Company Account, and with Equifax you are reporting these accounts as an open loan. On all of these accounts the correct account type is Collection Agency/Attorney or simply Collection. As you know, reporting accounts like this is extremely damaging to my credit health as they are being reported incorrectly. I am sure this was done in error, so am giving you the chance to correct this oversight.

     I am advising you now that it is inconvenient to receive any telephone calls from your office. Should you need to correspond with me, it will be in writing via United States Postal Service at the above listed address.

     I am also sending you a copy of the letter I am sending to your collector, West Asset Management who claims to be collecting on your behalf on this account: 3667140. I do not know which account this is as the number and the amount demanded ($343.00) does not match any that you have listed on my credit report.

     I am giving you notice now, according to Texas Business and Commerce Code, Chapter 17, that if you don’t provide me with proper validation that this act causes me and will continue to cause me mental anguish and detrimentally affect the health of my credit as well as you unlawfully attempting to collect an alleged debt without the required surety bond.

     By this code I can and will take you to court and seek damages under Texas code that can be not more then $500 for each violation and under the above code can be trebled, as well as all reasonable costs incurred with taking this action. I have included a copy of the code for your review.

Business & Commerce Code § 17.505. NOTICE;

INSPECTION.  (a)                                                                                                                      

This is a written notice to cure the violations listed below.  You have 60 days before I will file suit.

1.   Immediately discontinue all collection activity and remove the above referenced accounts from my Experian, Transunion and Equifax credit reports as you carry no surety bond, or if you do in fact carry such bond, then provide me with the surety company and bond number.

2.   Provide me with validating documentation: documents from the original creditor such as billing statements and anything with my signature.  Also provide documentation that gives you the legal right to collect upon these accounts, such as proof that you collect for the original creditor or proof of the purchase of these accounts.  Also any and all documentation that accounts for all the monies said owed and that such monies are legal in the state of Texas.

3.  Correct the incorrect reporting of the above referenced accounts such as described above.  (Type as Factoring, Installment and open loan.  The correct type is Collection Agency/Attorney or just Collection).

4.  Discontinue all collection activities that includes but is not limited to reporting any information (other then correcting the mistakes listed above) to the Credit Reporting Agencies of Experian, Transunion and Equifax, continued attempts to collect the alleged amounts owed, verifying any information to the above named three credit reporting agencies.

5.   If the above cannot be met within the 30 day time frame as governed by Texas law, you will then remove the accounts from Experian, Transunion and Equifax and discontinue all collection activity.  Further, this account will not be sold as this account will be considered disputed and un-validated and selling it would be in violation.

Each of these violations carries penalties of not more then $500.00 each and is subject to trebling of amount as allowed under the codes § 17.50. RELIEF FOR CONSUMERS (Business & Commerce Code) and § 392.404. REMEDIES UNDER OTHER LAW (Finance Code).

I hope we can resolve this matter quickly and to my satisfaction, otherwise I will take immediate and swift action as is my right.

Sincerely,

Your Name

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Stay tuned for Part 2 of this post tomorrow

Thanks for visiting my blog. What you will find here is real world credit repair information that I have personally used to increase my credit scores and improve my bad credit.

No hype, no empty promises, just tips, tactics, and techniques to delete negative information from your credit report and learn how to boost your credit scores.

There are many strategies, tips, and techniques available on the Internet on how to repair your credit. Unfortunately most of them are old, outdated, and ineffective!

Having great credit scores is the most effective way to improve your finances.  When you build and maintain excellent credit you control your future.

Discover how to repair bad credit and improve credit scores.

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