Problems with Credit Repair Services
There are numerous companies in the credit industry that target consumers who have poor credit with assurances that the company can clean up an individual’s credit to help improve their credit score or help them obtain a new loan. The sales pitches from these companies sound encouraging, especially for those individuals that have poor credit or have had a bad experience due to their poor credit and poor credit scores.
Unfortunately, most of these companies can not deliver on their promises or significantly improve a credit report using the tactics they promote. In fact, the Credit Repair Organization Act was passed by Congress to protect consumers from deceitful practices by organizations who claim to repair credit and to help further restrict these organizations from ripping off consumers.
The Credit Repair Organization Act prohibits fraud and misleading practices by credit repair companies and establishes rules regarding compensation and disclosures to consumers who user their services. The Act states that services must be under written contract, which must include a detailed description of the services and contract performance time and spells out the consumer’s rights and obligations. The credit repair organizations are also not allowed to receive payment before any promised service is “fully performed.”
The Credit Repair Organization Act further states that credit repair organizations must give consumers a copy of the “Consumer Credit File Rights Under State and Federal Law” before they sign a contract. And now, many states have laws regulating credit repair companies as well.
Even though these organizations have a somewhat tarnished image, just because you have a poor credit report doesn’t mean you can’t get credit or assistance improving your credit history and credit score. Even without the heavy regulation and the poor image, these organizations are charging consumers for something they can do for themselves without charge. Free credit score help is the solution, not being charged for questionable services.
Free credit score help comes mainly by removing incorrect information from your credit file ( regardless of how small the inaccurate information may be ), getting outstanding debt balances and court judgments removed from your credit file by making agreements with the creditor to remove the account based on a settlement and rebuilding a good credit history with new accounts in your credit report.
The keys to improving a credit report and credit score are based on obtaining access to a free credit report which every consumer is entitled to by law, disputing and correcting inaccurate information in your credit report and improving and building a better credit report.
You don’t need to pay a credit repair organization to improve your credit, nor do you need to pay for service to help improve your credit score and credit history. The Credit Repair Organization Act was passed because of the volume of complaints in the industry and the misleading practices. Take advantage of all your rights and improve your credit score on your own for free.
Getting a Free Credit Report
The Fair Credit Reporting Act entitles everyone to one free copy of their credit report each year from each credit reporting companies. The law allows you to order one free copy of your report from each of these nationwide consumer reporting companies every 12 months. You may order the reports from the three nationwide consumer reporting companies at the same time or you can order two of the company’s reports or you can order your report from each of the company’s one at a time at varying times. It’s your choice.
The free credit reports is requirement mandated by federal law to provide you with a free copy of your credit report once every 12 months, if you ask for it. The three nationwide consumer reporting companies or credit bureaus, Equifax, Experian, and TransUnion, have set up a central website, a toll-free telephone number, and a mailing address to use in order to request a copy of your free annual credit report.
To order your credit report you can go to www.annualcreditreport.com or call 1-877-322-8228 or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
The three credit reporting agencies provide access to your free report through these means only. The process was established to comply with the Fair Credit Reporting Act, consumers are not to contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through www.annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
To order your free credit report you need to provide your name, address, social security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, the consumer reporting company may ask you for some information that only you would know and they can verify such as the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.
If you request your free credit report online at www.annualcreditreport.com, you should be able to access the report immediately. If you order your report by calling toll-free 1-877-322-8228, your credit report will be processed and mailed to you within 15 days. If you order your credit report by mail using the Annual Credit Report Request Form, your request will be processed and mailed back within 15 days of receipt of the request.
In addition to the annual free copy of your credit report, you may also be entitled to a free credit report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice that will be given to you will provide the name, address, and phone number of the consumer reporting company that provided your credit report to the company that made the adverse decision. You are also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days or if you’re on welfare or if your report is inaccurate because of fraud, including identity theft. Otherwise, the three consumer reporting companies will charge you for a copy of your credit report.
There is only the one website that is authorized to fill orders for the free annual credit report you are entitled to under law, which is www.annualcreditreport.com. Any other websites that advertise offers such as “free credit reports,” “free credit scores” or “free credit monitoring” are not part of this service that is mandated by The Fair Credit Reporting Act to allow access to your credit report. In most of these case and advertisements, the “free” product comes with conditions or strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unintentionally authorizing the company to start charging fees to your credit card.
www.annualcreditreport.com and the nationwide consumer reporting companies do not send emails asking for your personal information and for the most part do not even market the free service. If you get an email, see an internet ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies or market a free credit report, you may just want to hang up or ignore the advertisement since there is most likely a fee associated with their service or even worse, it’s just a scam.