Fair Credit Billing Act

Category: Finance, Credit.

Statistics show that 80% of Americans have either bad or erroneous information on their credit reports. If you ask me a more startling statistic is 90% of the information on the internet teaching you how to improve your credit is bad or erroneous.

That means there's a great chance credit repair could be right for you. Let me explain. If they cannot prove it's your debt in that time frame, they must delete it" . If you' ve done any research on credit repair, surely you' ve seen free dispute letters, If you haven' t let me show you the pitch. "The FTC says under the FCRA credit bureaus have 30 days to investigate any dispute. Then it's followed with a generic dispute letter stating the following. "This debt is inaccurate, under the laws of the FCRA please investigate this account and delete it from my file" . Use some common sense for a moment. I' ve said it for years and finally people are beginning to realize, these letters rarely work anymore.

If it was that easy, we could all go charge until we' re blue in the face and not worry about our bills because we have the magic letters. The real way to improve your credit score is understanding the laws. With that said, credit repair works and better then ever, just not with that method. When I say that, I mean actually using the law as opposed to just quoting it in your dispute letter. Understanding how a debt's" date of last activity" is calculated is paramount. Obviously, I can' t cover every law here but I can point out a few violations that are present in nearly every trade line. 1) Re aging debts- Among the most common violations on nearly every credit report. Chances are it won' t be reported accurately.

Because collectors like to date it from the time they" bought the debt" and that is wrong and a sure fire way to have it removed. Why? You can find" date of last activity" and" Re aging Debts" in both the FCRA and the FDCPA. 2) Statute of Limitations( SOL) - Another very common infraction. I' m referring to how long a collection agent is allowed to attempt to collect and/ or sue on an account. The SOL I' m referring to is not the SOL for how long a debt can be reported on your credit file. You might be surprised to learn that its only 3 to 4 years in many states. 3) Also, you must learn the Fair Credit Reporting Act( FCRA) I recommend an abbreviated version if you don' t want to die of boredom. You' re mainly looking for balances, date of last activity for each account, Credit Limits and payment history.

Learn how to read a credit report. Learn the FDCPA- again abbreviated version should work. This is where you' ll score most your points. This law governs 3rd party collection agents. These guys can' t seem to follow the rules. Fair Credit Billing Act.

Other laws to look at: The truth in lending act. Hippaa- Medical disputes. If you don' t see where I' m going with this, it's about finding actual violations of your rights, not depending on luck, loopholes and generic letters. Service members Civil relief act- special Military laws. It will take some time, there are a lot of laws to learn. IF there are violations of your rights, there is a great chance ANY debt, accurate or not can come off.

You don' t have to be a lawyer, but you do have to get out that fine toothed comb and figure out who has made mistakes. It comes down to negotiating a trade off between you, and the" violator" 4) Opt Out with the credit bureaus. They alert them of disputes you' re making, banking information, address changes? Did you know that credit reporting agencies alert your creditors of new applications of credit you may be applying for? That's right, collectors subscribe to credit bureau services which enable them to more easily track you. More times then not, collection agents will obtain the necessary licensing, bonding and insurance requirements in their home state only because the cost is so high too obtain in every state. 6) If your state and requires bonding, the collector must, licensing or insurance posses them all or is not allowed to collect. Opt out and this information is no longer available to your creditors. 1- 888- 5- optout. 5) Check licensing information for collection agents.

Therefore, it is not a valid collection and must be removed from your credit report. Sounds easy enough, but you' d be surprised. You can check your Attorney Generals Website for requirements. 7) Request the collector show proof he is allowed to collect the debt. When you request validation of a debt, the collection agent must show proof he has a contract with the original creditor that he has the right to collect on their behalf. 8) Furthermore, he must get proof you actually owe the debt. That is not sufficient. You' d be surprised how many collectors have nothing more then their internal records. He must get the original contracts directly from the original creditor and send them to you. 9) Send your disputes to different addresses.

Send your disputes certified mail, return receipt requested to different addresses. Credit reporting agencies have dozens of addresses which you can find on the net. You are not required to send disputes to any specific address. That's not your problem, if somebody signs for your letter when it arrives. Many of the addresses take much longer to get to the dispute department. It's their responsibility to get it to the right department. Credit repair can be very easy when you employ all the tricks and secrets of credit repair that you have at your disposal.