What is Credit Restoration?

By
Real Estate Sales Representative with Tara Colquitt, The Credit Woman, LLC

Many people think credit restoration is illegal or immoral. This is simply not true. I am here to give the facts; just the facts.

WHAT IS CREDIT RESTORATION?

Credit restoration removes derogatory items from the credit report using the Fair Credit Reporting Act. It does not remove the financial or moral responsibility for the debt. However, since we are all judged by what is on our credit reports, it is desirable for our 'blemishes' not to show on it. 

WHAT IS THE FAIR CREDIT REPORTING ACT?

From Wikipedia, the free encyclopedia:

The Fair Credit Reporting Act (FCRA) is an American federal law...that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States.

Now, I can copy and paste the rest of the dictionary term, but you can easily Google this information. The bottom line is that consumers are entitled to accurate information. But everyone knows that credit reports contain errors. I know mine did. And who hasn't had a least one client (I had Robert Johnson) that you know can't have all that debt!

LEGAL credit restoration uses the FCRA, just like The Miranda Warning is used in criminal law. Note: I am a big fan of the original Law and Order series. if the data is not REPORTED correctly, it must be removed or updated. And the creditors must be able to substantiate the claim.

WHY SHOULD ANYONE USE A CREDIT 'REPAIR' COMPANY?

Well, I like to use the word 'RESTORE' since so many fraudulent companies have turned 'repair' into a dirty word. And not everyone needs to pay someone to do the work. If you are savvy about the law or know you never had a particular debt, it is definitely beneficial for you to dispute on your own. I don't know one mortgage broker that hasn't worked on their own credit or helped a few clients to get the deal done. The FCRA was established for the consumer to dispute items on their reports. But with 29 laws and 524 regulatory subsections... I don't detail my car, sew my clothes or groom my hair because I know professionals that can get me the results I want and I am willing to exchange money for the services.

Remember: The issue is not whether someone incurred the debt or lateness, but whether the information is reported correctly based upon the law. The 'Is' must be dotted and the 'Ts' crossed.

Finally, we all know there are disreputable firms out there for every service. Your job is to investigate who you are doing business with regardless of the product or service. Do they warranty their work? Is the cost affordable? Is it effective? If it sounds too good to be true... I still don't know how those companies that say 'We Can Raise Your Score to 720 in Two Weeks!' get away with that claim. If someone has personally experienced this...I stand corrected. However, if a consumer is looking for real assistance, there are good companies out there.  

Posted by
  • Would you give a thief direct access to your checking account? 
No? Unfortunately, you may be doing just that by regularly using your debit card. And I use mine all the time. Debit cards may look identical to credit cards, but there’s one key difference. With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. On the other hand, debit cards draw money directly from your checking account, rather than from an intermediary such as a credit card company.
Because of that, even clear-cut cases of fraud where victims are protected from liability by consumer protection laws can cause significant hardship
While debit card fraud is always a possibility, being careful where you use it can help keep your checking account balance out of the hands of criminals.
For details on four risky places, please click on the link below.
http://www.bankrate.com/finance/checking/risky-places-swipe-debit-card-1.aspx#ixzz1pmyqVPXu

 

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Tags:
credit
credit scores
credit repair
credit restoration
fair credit reporting act
tara colquitt

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Rainer
41,052
Tara Colquitt
Credit Counselor
Tara Colquitt, The Credit Woman, LLC

Wayne: Two months later and I can definitely attest to that!

Chuck: You are right. People must be vigilant about their credit and protecting it.

Barbara: Thanks for the wonderful comment. My goal is to be educational. And, yes, I am a smiley person!

March 15, 2008 05:25 AM
Rainmaker
34,789
Ronell Moore
Small Business Consultant, Business Lending SBA Loans 7(a) and 504, Loans Loans, Loans
TM Holdings Group
I will be looking forward to doing business with you, thanks
March 20, 2008 10:14 AM
Rainer
41,052
Tara Colquitt
Credit Counselor
Tara Colquitt, The Credit Woman, LLC
Ronell: The beauty of ActiveRain! 8-)
March 20, 2008 12:47 PM
Rainmaker
162,126
Lorinda Ward
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach
Keffer Realty

Hi Tara!  Thank you for contacting me I will definitely be using your service I know some would be buyers would be happy to use your service.

Have a wonderful day!

March 23, 2008 06:42 PM
Rainer
41,052
Tara Colquitt
Credit Counselor
Tara Colquitt, The Credit Woman, LLC
Lorinda: Thanks for writing your blog about wanting to help people that you have to turn away. A winning situation for everyone. It was great talking to you today.
March 24, 2008 10:13 AM
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Rainer
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Tara Colquitt

Credit Counselor
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Additional Information

I will be writing about credit and the changes in the industry. Also, since I have extensive experience in real estate as an investor, I may write about this topic also.