How to Use Credit Reporting Laws
to Your Advantage

Credit Reporting Laws were put in place to protect you.

I recently read an article online concerning the Credit Repair Organizations Act. It was published by a major credit information website. I was very disappointed to see that the author took the same old worn out point of view concerning credit repair organizations. Once again, he lumped all credit repair organizations together as unethical predators.

For some reason, despite the fact that consumers are in desperate need of help to exercise their rights under the credit reporting laws, many still choose to criticize and judge the entire credit repair industry based upon the unscrupulous actions of a few bad apples.

More than ever, consumers are in need of help to legally improve their credit. Ironically, most of the credit reporting laws were actually put in place because of the abuses of the credit industry players themselves. With or without the permission of consumers, the credit bureaus collect, report, and market consumers' personal credit information for profit. It's a $4 Billion to $6 Billion industry; and growing.

Yet, consumer studies have shown that over 76% of the credit reports sold by the Big 3 Credit Bureaus contain errors. Moreover, most consumers are not versed enough, concerning their credit rights under the credit laws, to adequately resolve the inaccurate, outdated, and unverifiable credit information repeatedly reported by the credit bureaus in violation of the credit reporting laws.

What's wrong with offering consumers the option of working with reputable credit improvement companies or credit repair attorneys to help legally improve their credit? We hire accountants and tax attorneys familiar with tax laws to help us with our taxes. We hire realtors and real estate attorneys familiar with real estate laws to help us when purchasing property. Why not hire a reputable credit repair professional or credit repair attorney familiar with credit laws to help us with our credit scores?

It's true, as a consumers you can fix your own credit and write credit dispute letters to the credit bureaus to deal with the negative items reporting on your credit reports. However, oftentimes consumers are too busy or simply choose not to get bogged down in the minutia of the credit laws necessary to battle with the credit bureaus and/or creditors to resolve their credit report issues.

There are literally hundreds of State and Federal credit laws enacted to protect you. Here's a few examples of some of the credit laws and ways to use them when battling with the credit bureaus and creditors to legally improve your credit:

  1. Let's say your credit card statement contains a charge that you didn't make. Under the federal Truth in Lending Act, if you report the error within 60 days, your responsibility is limited to $50.
  2. What if you don't receive your credit card bill on time and as a result, your payment is made late? If you notify your credit card company (preferably in writing) of the error within 60 days, per the Fair Credit Billing Act, you may be able to avoid being charged additional interest for the late payment. You may also use the Fair Billing Act to demand copies of your credit card statements to verify if your payments were applied timely. This can be beneficial to you when disputing inaccurate "late payments" on your credit reports.
  3. Mistakes happen. What if you are sent a collection notice from a collection company for a debt you know nothing about? Under the federal Fair Debt Collection Practices Act, you have 30 days to notify the debt collector you dispute the validity of the debt and you can require the debt collector to provide you with validation of the debt to prove it's yours. Until they do so, they are prohibited from reporting the collection account to the credit bureaus.
  4. The Fair and Accurate Credit Transactions Act of 2003 (FACTA) entitles you to a free credit report once every 12 months from each of the Big 3 Credit Bureaus. You can order it free online at www.annualcreditreport.com.
  5. The Fair Credit Reporting Act gives you the right to dispute inaccurate, outdated, and unverifiable credit information on your credit reports, with the credit bureaus. They must reply to your dispute letter within 30 to 45 days of the dispute.

These are just a few of the credit reporting laws that were enacted to protect you as a consumer from the abuses of the credit industry players. So know your credit rights and use them. Otherwise consider hiring a reputable credit repair organization to help you. No matter what the critics say.../p>



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