Credit Repair Facts
Written disclosures and a written contract
are required for credit repair services.
Credit repair services must give consumers written
details and full disclosures based on the Federal
Credit Repair Organizations Act of 1997 This does
not apply to nonprofit organizations, banks and
credit unions, or the creditors themselves. These
disclosures must be presented before any agreement
is made. This applies to any company operating
in any way in or out of state by telephone or
any other means. There must be a written contract
signed by the buyer and there is a three day right
to cancel policy. No payment can be requested
until the services that were promised have been
Don't pay money upfront for credit repair
In addition it's against the law for a company
to require payment before the promised credit
repair has happened. The Federal Telemarketing
Sales Rule says that if the services are offered
through an interstate phone call. The company
cannot ask for payment until it has provided you
with proof of the promised results. They must
give you a copy of your credit report that has
been issued by a credit bureau more than six months
after the corrections were made before they can
ask for money.
No one can remove negative information
if it is accurate, even for a fee.
No matter what they tell you they cannot remove
correct but negative information from your credit
report. Accurate negative information remains
a part of your record for at least 7 years from
the time it is reported (10 years for bankruptcy).
Only incorrect information can be erased from
your credit report. Any company that advertises,
or promises to remove negative information is
lying, do not do business with them.
You can include an explanation in your
report concerning negative information.
If you have negative information on your report
and it is accurate it cannot be removed, however,
you can place an explanation on the report which
will clarify and explain the situation. If you
got ill and fell behind on payments, or if you
were disputing a purchase leave a short statement
in your file. This can help when applying for
You can't create a second credit file.
If anyone tells you that you can repair your
credit by creating a new or second credit file
don’t listen. This is seriously illegal
and can get you into a lot of trouble. It can
also be called file segregation.