Who You Should NEVER Trust With Your Credit
So far, we have covered a lot of ground when it comes to your credit report. Hopefully I have covered everything well enough that you, my reader, has a better understanding of credit, credit reports and the credit scoring system. If nothing else, just remember that so many things hinge on having a good credit score; home loans, auto loans, credit cards, insurance, and, in many cases, employment.
In yesterday's Parade Magazine was an article titled "Beware of Quick Credit Fixes". While good advice in general, the information contained in the article was misleading. I'm sure it is intentionally misleading. Here is the article....
Beware Of Quick Credit Fixes
Many companies say they will solve your credit woes, but can they deliver? “If anyone claims they can erase bad credit, give you a new credit identity or remove bankruptcies, judgments, liens and bad loans from your credit file, it’s a scam,” warns Frank Dorman, a spokesman for the Federal Trade Commission. You needn’t pay someone to correct misinformation: Write your own letters. And no one can erase negative information from your record if it’s accurate. “While something is in dispute, it’s temporarily taken off your record, but it will reappear,” says Cate Williams of Money Management International, which provides debt help. If you’ve made credit mistakes, only time and good behavior will fix them. For genuine help (often free), call the National Foundation for Credit Counseling at 1-866-479-6322 or visit www.nfcc.org.
Here is the truth behind the article and a few good reasons why these gentlemen would say what they did.
* If anyone claims they can erase bad credit, give you a new credit identity or remove bankruptcies, judgments, liens and bad loans from your credit file, it’s a scam
Bad debt cannot be "erased". If you owe it, you should pay it.
If someone offers you a "second chance" by getting a new social security number or an Employer ID Number, run. They are trying to scam you and what they are suggesting is illegal.
Bankruptcies, judgments, liens, and bad loans CAN be removed from your credit file and ARE EVERYDAY! If the collectors or creditors cannot show evidence that they acted properly and that the debts are absolutely yours to the satisfaction of the courts, they cannot be listed on the credit report. Case after case is won everyday because they could not show proper proof!
* You needn’t pay someone to correct misinformation: Write your own letters
I agree 100% that you should be able to do this for yourself. I also agree that you should birth your children at home and you can build your own house. They did it 100 years ago, you can do it now. Disagree? OK, but to be as effective as the legitimate credit repair companies (yes, there are a few, but many are scams), you need to be proficient in the FDCPA (Fair Debt Collection Practices Act) and FCRA (Fair Credit Reporting Act), as well as case law and standard procedures for disputing your reports.
Don't have the time it takes to do this? Pay a professional that does it day in and day out. The savings that you will see because of better credit will more than pay for itself.
* And no one can erase negative information from your record if it’s accurate. “While something is in dispute, it’s temporarily taken off your record, but it will reappear,” says Cate Williams of Money Management International, which provides debt help
If it's accurate; that's the issue. Being that 79% of all credit reports have inaccurate information and the law requires that it be properly VALIDATED, many tradelines are removed from the reports because your accuser did not follow the law.
While tradelines are in dispute, they often remain on the report, buy they are notated to be in dispute. If, and only if, they are PROPERLY validated, can they return.
Look up Money Management International (http://www.moneymanagement.org/) and you will see that they provide bankruptcy counseling and education. Why dispute it when you can file a BK and have THAT on your credit report for the next 7-10 years (since they claim you cannot have it removed, but we know better).
To make things far worse, Consumer Credit Counseling Services is a division of MMI. For those unfamiliar with CCCS, they are paid by the credit card companies to help you set up a payment plan to pay off credit card debt. Of course, if you file for BK, it will probably have to be a Ch. 13 repayment plan instead of the Ch. 7 plan in which your debt was wiped out (and the credit card companies OPPOSED with millions of dollars worth of lobbying). Looks like MMI can get, er... help you either way.
* If you’ve made credit mistakes, only time and good behavior will fix them. For genuine help (often free), call the National Foundation for Credit Counseling
For genuine help, look for a group that is not trying to perpetuate lies (as above) in an effort to sell you books and counseling. Call me cynical, but here is a bit from their website under the "Who We Are" section.
More than one-third of all consumers who come to an NFCC agency for counseling are able to manage their debt on their own after receiving financial education and counseling.
So, if I am reading this right, greater than 60% of the people who come to this agency for education and counseling are unable to manage their debt on their own after they get help? Any other programs that they would like to recommend with a 2/3 failure rate. Do these people think that we, as consumers, are stupid? Never mind, this speaks for itself.......
Here is the TRUTH as to why you see articles such as this. These groups, as well as the credit reporting agencies, make money from you and off you. These groups all work together to report negative items on your credit reports. The three major credit reporting agencies are in existance to be a clearinghouse for negative information that they can sell. When they report positive things about you, it is only incidental.
The CRAs are essentially rumor mills. They take whatever information that your creditors want to send them and then resell it when someone asks for a composite picture of your financial status. They DO NOT validate anything unless you discover a problem and call them on it. As a side note, consumers did not even have access to these reports until just a few years ago. Before that, we couldn't dispute any of the rumors.
Statistically, 79% of credit reports have errors and 25% are serious enough to have credit denied. The others are often enough, depending on the error, to decrease your score which means you pay higher interest rates that you deserve. Can you see why the credit card companies (and others to be fair), want to try to convince you that there is nothing that can be done about negative information on your credit report? It's all about the $$$.
For interesting reading, do a search on Evan Hendricks and see what he has found out about these organizations and what he told congress about his findings. It is almost to wild to be believable, but it's true.
Next time we are going to talk about who you can trust to help you clean up your credit report.
Scott
Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.
In yesterday's Parade Magazine was an article titled "Beware of Quick Credit Fixes". While good advice in general, the information contained in the article was misleading. I'm sure it is intentionally misleading. Here is the article....
Beware Of Quick Credit Fixes
Many companies say they will solve your credit woes, but can they deliver? “If anyone claims they can erase bad credit, give you a new credit identity or remove bankruptcies, judgments, liens and bad loans from your credit file, it’s a scam,” warns Frank Dorman, a spokesman for the Federal Trade Commission. You needn’t pay someone to correct misinformation: Write your own letters. And no one can erase negative information from your record if it’s accurate. “While something is in dispute, it’s temporarily taken off your record, but it will reappear,” says Cate Williams of Money Management International, which provides debt help. If you’ve made credit mistakes, only time and good behavior will fix them. For genuine help (often free), call the National Foundation for Credit Counseling at 1-866-479-6322 or visit www.nfcc.org.
Here is the truth behind the article and a few good reasons why these gentlemen would say what they did.
* If anyone claims they can erase bad credit, give you a new credit identity or remove bankruptcies, judgments, liens and bad loans from your credit file, it’s a scam
Bad debt cannot be "erased". If you owe it, you should pay it.
If someone offers you a "second chance" by getting a new social security number or an Employer ID Number, run. They are trying to scam you and what they are suggesting is illegal.
Bankruptcies, judgments, liens, and bad loans CAN be removed from your credit file and ARE EVERYDAY! If the collectors or creditors cannot show evidence that they acted properly and that the debts are absolutely yours to the satisfaction of the courts, they cannot be listed on the credit report. Case after case is won everyday because they could not show proper proof!
* You needn’t pay someone to correct misinformation: Write your own letters
I agree 100% that you should be able to do this for yourself. I also agree that you should birth your children at home and you can build your own house. They did it 100 years ago, you can do it now. Disagree? OK, but to be as effective as the legitimate credit repair companies (yes, there are a few, but many are scams), you need to be proficient in the FDCPA (Fair Debt Collection Practices Act) and FCRA (Fair Credit Reporting Act), as well as case law and standard procedures for disputing your reports.
Don't have the time it takes to do this? Pay a professional that does it day in and day out. The savings that you will see because of better credit will more than pay for itself.
* And no one can erase negative information from your record if it’s accurate. “While something is in dispute, it’s temporarily taken off your record, but it will reappear,” says Cate Williams of Money Management International, which provides debt help
If it's accurate; that's the issue. Being that 79% of all credit reports have inaccurate information and the law requires that it be properly VALIDATED, many tradelines are removed from the reports because your accuser did not follow the law.
While tradelines are in dispute, they often remain on the report, buy they are notated to be in dispute. If, and only if, they are PROPERLY validated, can they return.
Look up Money Management International (http://www.moneymanagement.org/) and you will see that they provide bankruptcy counseling and education. Why dispute it when you can file a BK and have THAT on your credit report for the next 7-10 years (since they claim you cannot have it removed, but we know better).
To make things far worse, Consumer Credit Counseling Services is a division of MMI. For those unfamiliar with CCCS, they are paid by the credit card companies to help you set up a payment plan to pay off credit card debt. Of course, if you file for BK, it will probably have to be a Ch. 13 repayment plan instead of the Ch. 7 plan in which your debt was wiped out (and the credit card companies OPPOSED with millions of dollars worth of lobbying). Looks like MMI can get, er... help you either way.
* If you’ve made credit mistakes, only time and good behavior will fix them. For genuine help (often free), call the National Foundation for Credit Counseling
For genuine help, look for a group that is not trying to perpetuate lies (as above) in an effort to sell you books and counseling. Call me cynical, but here is a bit from their website under the "Who We Are" section.
More than one-third of all consumers who come to an NFCC agency for counseling are able to manage their debt on their own after receiving financial education and counseling.
So, if I am reading this right, greater than 60% of the people who come to this agency for education and counseling are unable to manage their debt on their own after they get help? Any other programs that they would like to recommend with a 2/3 failure rate. Do these people think that we, as consumers, are stupid? Never mind, this speaks for itself.......
Here is the TRUTH as to why you see articles such as this. These groups, as well as the credit reporting agencies, make money from you and off you. These groups all work together to report negative items on your credit reports. The three major credit reporting agencies are in existance to be a clearinghouse for negative information that they can sell. When they report positive things about you, it is only incidental.
The CRAs are essentially rumor mills. They take whatever information that your creditors want to send them and then resell it when someone asks for a composite picture of your financial status. They DO NOT validate anything unless you discover a problem and call them on it. As a side note, consumers did not even have access to these reports until just a few years ago. Before that, we couldn't dispute any of the rumors.
Statistically, 79% of credit reports have errors and 25% are serious enough to have credit denied. The others are often enough, depending on the error, to decrease your score which means you pay higher interest rates that you deserve. Can you see why the credit card companies (and others to be fair), want to try to convince you that there is nothing that can be done about negative information on your credit report? It's all about the $$$.
For interesting reading, do a search on Evan Hendricks and see what he has found out about these organizations and what he told congress about his findings. It is almost to wild to be believable, but it's true.
Next time we are going to talk about who you can trust to help you clean up your credit report.
Scott
Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.
posted by Malinut at
11:00 PM
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