Accurate Negative Information Report
When the negative information recorded in your report is accurate, it will only be deleted in the course of time. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid monetary judgment issued against it may be reported for seven years or until the statute of limitations expires, whichever occurs later. The reporting period begins to run from the date on which the event occurred. There is no time limit for reporting criminal convictions, for information reported in response to a job application with an annual salary of $ 75,000 or more, or for information reported as a result of filing a credit or insurance application Life value of more than $ 150,000.
The Law of Credit Repair Organizations
The Credit Repair Organizations Act (CROA) states that it is illegal for credit repair companies to lie about what they can do for you, and to charge you before you render your services. The CROA Act, which is enforced by the Federal Trade Commission, provides that credit repair companies must explain the following:
- Your legal rights by means of a written contract in which you must also detail the services provided by the company.
- Your right to cancel within the next three days without incurring any charges.
- How long will it take to get the results.
- The total cost you will pay.
- Any applicable warranty.
And what if a credit repair company you hired does not keep your promises? You have some options:
- You can sue in federal court to claim the amount of your actual losses or the amount you have paid, the highest amount of money will be applied.
- You can claim payment of punitive damages – money to sanction the company for non-compliance with the law.
- You can meet with other injured parties to file a class or class action lawsuit, and if you win the case, the company must pay attorney fees.
- Report Credit Repair Fraud to the State Attorney General.
Several states have laws that regulate credit repair companies. If you have a problem with a credit repair company, report it to the local consumer affairs office or your state Attorney General’s office.
Federal Trade Commission (FTC)
You can also file a complaint with the Federal Trade Commission. Although the FTC can not resolve individual disputes related to credit issues, it can take action against a company when it presents a repeated pattern of possible violations of the law. File a complaint online at FTC.gov or call 1-877-FTC-HELP.
Where to get legitimate help
Having poor credit report does not mean that you have no chance of getting credit. Companies that provide credit establish their own standards and not all analyze their credit history in the same way. Some lenders may assess your case by concentrating only on the past few years, and if you have improved the level of payment compliance of your bills, you could be able to give credit. It is worth communicating informally with the credit grantors to discuss the criteria and standards they apply to extend credit.
If you are not disciplined enough to make and fulfill a budget, or try to establish a repayment plan with your creditors, or if you are unable to control your growing stack of bills, you may consider contacting an advisory organization Credit. There are several credit counseling organizations that operate as non-profit entities and will work with you to resolve your financial problems. But keep in mind that “non-profit” does not always mean that you will receive free services, at an affordable or even legitimate cost. In fact, some credit counseling organizations – even some that say they operate non-profit – can charge high fees or hide their charges by pushing consumers to make “voluntary” contributions that will only increase their level of indebtedness.
Most credit counselors offer services in local offices, on the internet or by telephone. If possible, try to find an organization that offers advisory services in person. There are several universities, military bases, credit unions, housing authorities and branches of the US Cooperative Extension Service. (U.S. Cooperative Extension Service) operating nonprofit credit counseling programs. Your local bank or financial institution, local consumer protection agency and your friends and family can also be a good source of information and referrals.
If you are considering filing for bankruptcy, keep in mind that applicable bankruptcy laws state that within six months of filing your bankruptcy filing you must receive credit counseling from a government approved organization. At www.usdoj.gov/ust, the U.S. (U.S. Trustee Program), you can access a list of government-approved organizations in each state. This organization, reporting to the US Department of Justice, oversees bankruptcy cases and bankruptcy trustees. Be wary of credit counseling organizations that tell you that they are approved by the government but are not on the list of approved organizations.
Reputable credit counseling organizations can advise you on how to manage your money and your debts, can help you budget, and provide you with educational materials and workshops on this topic. The counselors of these organizations are certified and trained in areas of consumer credit, money and debt management, and budgeting. Counselors will talk with you to address your overall financial situation, and can help you develop a personalized plan to solve your money problems. Typically, an initial counseling session lasts about an hour and, if desired, you can attend other follow-up sessions.