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Using The Law For Credit Repair
Credit repair results are best accomplished with leverage. There is little use in engaging the massive credit reporting system without a clear and precise knowledge of the areas where you will be able to gain a foothold. The system is cumbersome and prone to indolence. Where there is no advantage to the credit bureaus to comply with your credit repair efforts they will certainly find a way to ignore even your most heartfelt pleadings. But use the law properly in your credit repair and you will move mountains. Expect Resistance The credit bureaus are governed by the Fair Credit Reporting Act (FCRA). It is both their gospel and a millstone around their neck. Most of the effective credit repair techniques that you will employ will utilize the routines and procedures mandated for the bureaus by the FCRA. And although the bureaus generally will comply they will not enjoy it and they may even resist. Your efforts must be made with an insight into the procedures that the bureaus have put into place in order to cooperate with the FCRA as well as their passive-aggressive techniques of resistance. Section 611 The most relevant part of the FCRA to your credit repair project is Section 611. This outlines the responsibilities of any national credit bureau, including Experian, Equifax, and TransUnion, to process consumer disputes of the accuracy of information appearing on their credit reports. In brief, the credit bureaus must complete the processing of your dispute within 30 days of receiving the dispute. Within that 30 day period is included 5 days in which the credit bureau must notify the furnisher of the disputed information. Two Sides to the Law The FCRA is not specifically a consumer protection act. It is best as you begin your credit repair project to understand that the FCRA is designed to protect the credit bureaus as much as provide a mechanism for consumers to rectify inaccuracies. All of the requirements imposed on the bureaus are accompanied by an overt acceptance that any methods of quality control implemented in response to the FCRA need only be reasonable. Both the FCRA as well subsequent FTC Staff Opinion Letters have supported the concept that the economic viability of the bureaus must not be threatened. Credit Repair Reality And so, your credit repair project must quickly grapple with reality. The system put into place by the bureaus to process your disputes is not perfect or flawless. And to add to the ineffectiveness that your credit repair may encounter is the business side of the formula which cannot be ignored. Where the bureau is able to ignore or subvert your efforts and get away with it, they may do so. For example, millions of consumers have experienced the rejection of perfectly constructed dispute letters accompanied by clear and adequate identification. The response received will often state that the identification was either not included, or in some way lacking. You should plan on a degree on resistance and calmly adjust your efforts accordingly. Your Roadmap to Success In employing Section 611 in your credit repair effort to remove reporting errors you should keep all of this in mind and proceed with patience and you will succeed. Deal with the system as it is. Frustration is not be productive in dealing with these giant bureaucracies. Here is a roadmap to the land of credit repair success along with some additional insights into the process. It is simple and painless if you do it right. The Simple Way Keep your disputes simple. The credit bureaus have managed to comply with the FCRA by defining a very small list of dispute reasons. The bureau dispute centers are mostly located overseas and staffed by personnel who are trained to very quickly translate your letter into a two digit code representing the nature of your dispute. If you want your credit repair effort to bear fruit, consider the process and make your letter as clear and simple as possible. Extraneous words will only increase the possibility of getting derailed. Destined for Success Don’t give up! As hinted at, the bureaus may very well manage their work load by indiscriminately ignoring or rejecting your dispute. You cannot afford to let a rejection stop you in your tracks. You will quickly discover that persistence pays off. If you know that you have a valid case stick to your guns and rebut any rejection that you get. One of the great secrets to dealing with these bureaucratic behemoths is patience. Take one step at a time. Your credit repair is bound to succeed. Copyright © 2009 Ian Webber. All Content. All Rights Reserved. Article Directory: http://www.articledashboard.com Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida. |
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