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How Do I Dispute a Credit Repair Company?

The majority of credit repair agencies are very reputable and do a good job repairing credit for people. Unfortunately, there are a few scam artists out there that prey upon those in need of credit repair. To protect yourself, you should now educate yourself about how these companies operate and who they are best served by. These credit repair scams are a sad indication of how the credit repair industry has failed some consumers over the years. If you become the victim of one of these scams, be sure to report it to the authorities as soon as possible.

One of the most common techniques these scam artists use is to charge you a fee up front before providing any credit repair services. FACT: Under state law, credit repair services cannot require you to pay anything before they have done any credit repair work on your credit. They may require an upfront payment when you apply for credit monitoring services or a credit report, but once you've made those payments, they're no longer required. Companies that make money through the charging of up-front fees violate state law and should be avoided. If you do decide to use one of these credit repair services, be sure you understand what you'll be charged and how you can avoid being taken advantage of.

Scammers also make it hard for you to get copies of your credit reports and scores. Most of the time, they will provide you with a free credit report once per year, but a reputable credit repair company won't be hesitant to give you one free credit report each year if that's what you want. A legitimate company won't try to trick you into giving them personal information like your social security number or other sensitive information. The scammers will take your credit scores and report them to the credit reporting bureaus anonymously, then send the scores via snail mail so you never see the results.

You can also expect your credit repair company to remove any inaccurate information from your credit report. However, most of the time this inaccurate negative information comes from credit card companies, which often fail to dispute it with the bureau. This information remains on your credit report for up to six months before it is deleted, which is a long time to deal with. When this negative information is removed, the chances are good that many other negative items will be erased as well. It can take a long time to get all of the inaccurate items removed, and even then there's a decent chance that not all of it will be removed.

The best credit repair service companies like the Pinnacle Credit Management will go out of their way to ensure that the negative information is removed as quickly as possible. The better firms will actually request it from the credit reporting agencies. Once the information has been removed, your consumer protection service provider will notify the credit reporting agencies that the negative information was incorrectly reported. They will notify you, give you a copy of the legally required documents, and ask you to challenge that information in writing.

There is no real trick to how to remove negative information from your credit report. Most reputable credit repair company's simply follow the Fair Credit Reporting Act, and Fair Debt Collection Practices Act, and fill out the necessary forms appropriately. They will inform you of their intent to contact the bureaus and also give you 60 days to do whatever it takes to remedy the problem. If you find that the problem cannot be remedied in that amount of time, and the negative information remains, your credit repair company will ask you for permission to contact the bureau. Usually, your credit repair service will not use this method and will work with the creditor to settle the debt for a smaller amount. This method rarely works because creditors will fight you for permission to release a debt, which means the problem may never be resolved. To get more insight about this topic, read this post: https://en.wikipedia.org/wiki/Credit_management.

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