Is credit repair legal? Could you get into trouble for hiring a credit repair clinic, service or attorney? Are there any laws about repairing your credit that you should know about BEFORE you start? In this article we’ll take a quick and easy look at the finer points of LEGALLY upgrading your credit file… without finding yourself in one hot mess! Want to know more? Continue reading as we take a closer look below!
Good news? Credit Repair is your RIGHT (and totally halal too!)
Yes, you have the right to question information on your credit report. Yes, you can hire a professional credit attorney, service or clinic. (although you don’t have to) And YES, you should expect your credit file to be 100% accurate… and if not, you have the right to request that negative items be removed immediately. (although technically the opposite is true)
Are there laws governing credit? How is the government involved?
Yes, the Fair Credit Reporting Act and its 25 years of revisions, interpretations and amendments were passed to protect YOUR interests. It was created, by Congress, to ensure that you are NOT penalized for negative entries on your report that cannot be verified. Old stuff can’t be held against you either. (7 years for most things…10 years for more severe entries in most cases) Believe it or not….while the credit industry is a BIG industry, in many ways, being a “small” person has its advantages. Hundreds of thousands of people have improved their own credit in a DRAMATIC way…and at very little cost. (including you really.. 🙂
Ok…. but what are the 1 credit upgrade techniques that can get you really in trouble with the law?
To be honest? File splitting scams, or obtaining a secondary federal ID number for the purpose of applying for credit, COULD cause you real legal trouble. Many credit clinics teach this approach….and it really doesn’t work. (this essentially requires that you use an alternative to your social security number for credit applications…..often a business tax identification number) Lots of people have had REAL problems for encouraging these kinds of schemes, and more than one person has been jailed for fraud as a result . (Plus it is NOT necessary…… ineffective and unethical to boot!)