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Written disclosures and a written contract are
required for credit repair services
Under the federal Credit Repair Organizations Act which took
effect on April 1, 1997, credit repair services (except for nonprofit
organizations, banks and credit unions, and creditors themselves)
must give consumers written details of the offer before any agreement
is made. This applies to companies operating either within a state
or interstate, by telephone or any other means. No agreement is
binding unless there is a written contract signed by the buyer,
and he or she has three business days to cancel. No payment can
be requested until the promised services have been fully performed.
Don't pay money upfront for credit repair
services
It's against the law for a company to require payment before
the promised credit repair services have actually been performed.
If the services are offered through an interstate phone call,
the federal Telemarketing Sales Rule says that the company cannot
ask for payment until it has provided you with proof of the promised
results by giving you with a copy of your credit report that has
been issued by a credit bureau more than six months after the
corrections were made.
You can correct your credit record yourself
if you have the time and patience
If there is a mistake in your credit record, contact the major
credit reporting agencies to find out how to make corrections
yourself. It's simple and there is no fee. If you have just been
denied credit because of a mistake in your report, you can get
a copy of it for free. Otherwise, there may be a small charge
for obtaining your report if you want to check for inaccuracies.
The Federal Trade Commission publishes information on credit history
self-help and how to avoid scams.
Don't beleive that no one can remove negative information if it
is accurate. Information can be erased from your credit report.
Negative information remains a part of your record for at least
7 years from the time it is reported (10 years for bankruptcy).
Don't create a second credit file
Don't believe anyone who offers to help you get credit by creating
a second credit file using a tax-id number or a second social
security number. This is sometimes called "file segregation."It's
illegal, and you could be subject to serious penalties.
Get help rebuilding your credit record from
legitimate organizations
Consumer Credit Counseling Service, a nonprofit organization,
provides low or no cost services to consumers who need a plan
to repay debts and improve their credit. Thier service is not
as successful or speedy as some fee based services. Visit our
Credit Repair page for fee based credit
repair services that we have found work for our customers.
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