As we seek to increase our credit score for financial flexibility, encountering a credit repair specialist is as inevitable as paying your taxes. With around 200 million active accounts managed by each of the three main credit reporting agencies, it is estimated that about a fourth of these have negative items on their credit history that might lower their credit scores. Even as we encounter these credit repair specialists, we wonder if they would be able to help us restore our credit and what do they do or don’t do.
We need to have a better understanding of what the duties of credit specialists are so we will not be taken advantage of by those who prey on the misinformed and the desperate. I’m talking about scammers and they are in every industry, especially in those involving finances and personal information. There are no special licenses or requirements that credit repair specialists must meet so read on and find out what they can legally do and how to avoid getting scammed.
As stated above, they don’t need to be licensed to render services, but a reputable credit specialist should be certified by one of many non-profit organizations like the Association for Financial Counseling & Planning Education or the Credit Consultants Association.
When engaging their help, you will want to make sure that they are well-informed regarding laws affecting credit repair. These include the fair Credit Reporting Act, Fair, and Accurate Credit Transactions Act, Credit Repair Organizations Act and Fair Debt Collection Practices Act. They should also be aware of their state’s special laws about credit repair and bond requirements.
If the specialist you’re speaking to is subject to the Credit Reporting Organizations Act, then you can be sure that he will be prevented from taking advantage of consumers and clients like you. Even then, he might pull a fast one and ask for payment before they have rendered service. This is illegal and the specialist could be slapped hefty penalties for doing so. He needs to provide a contract before starting service and should not promise to have items removed from your report or any specific results.
With their knowledge of credit repair laws, credit specialists should be able to tell you your rights like the ability to file a dispute on your credit report for free. Also, if they persuade you to waive any of your rights, that’s a big red flag. Get out of there ASAP.
In a nutshell, what they do is review your credit reports from all three credit reporting agencies, find inaccurate information on your credit history, and file a dispute designed to modify your records to reflect positive credit interactions. The reason why they do all of this is to make your credit report look very positive to algorithms that calculate your credit score.
Blue Water Credit has highly-trained analysts with years of experience in credit repair, all eager to help you restore your credit. Give us a call at (916) 315-9190 and schedule a consultation now.