Is Credit Repair As Easy As the FTC Says?
Posted on May 31st, 2007 by Marc Chase Posted in Credit and Debt Law | 6 CommentsIf I’m being honest, I’m getting fed up with the double standard, catch 22 strangle hold the FTC has put the Credit Repair Industry in.
Yes I agree, in many cases credit repair should be easy and most consumers should be able to do it themselves.
Unfortunately what is and what should be are two different things. Let me give you a prime example.
A client of ours had a negative trade line being double reported by Asset Acceptance. We sent dispute letters via certified mail exactly as the FTC recommends.
There was no response, so we helped our client with a small claims case which went just as we expected. The court awarded in favor of our client, ordered Asset to remove the trade line and pay our client $1000.00 for the violation.
Wow that was easy, just like the FTC says it would be. But wait, in March she ran her credit report again and I’ll give you two guesses as to what’s back on her credit report.
Now what? The FTC didn’t mention anything about this, what do we do now? Actually, in theory it should be an easy fix. Send the bureau a copy of the court order and demand they fix this “oversight”.
We did and the results came back just as we expected. The cover sheet they sent back clearly states they deleted the trade line…or did they? Most consumers just read the cover sheet looking for that deletion and move on.
After looking a little further it wasn’t deleted at all, they just claim they deleted it.
I ask you, what normal consumer is going to know how to deal with this? What normal person has the time to go to court every other day just to maintain an accurate credit report? The FTC spends so much time preaching to the world that you don’t need credit repair companies and that the system is set up to protect you.
If creditors, collection agents and the credit bureaus would follow the law, then perhaps there wouldn’t be a need for a credit repair agency, but that isn't reality.
Don't get me wrong, I hate most credit repair companies and I hate the industry! It is filled with a lot of slime, but the other side of the industry isnt any better. There needs to be reform on both sides of the fence.
Here are my thoughts. Credit bureaus and collection agents make "mistakes" and aleays will. Therefore, the credit repair industry is necessary for many people. Just like I dont feel like doing my own taxes, most people dont feel like fighting credit repair battles.
I think the FTC needs to accept the fact that its just as legitimate as any other industry, or at least it could be. Instead of scaring consumers away from it embrace it. Create some ethical guidelines and licensing standards. People deserve the option of hiring a company to help with their credit, but they also deserve to know they wont get ripped off.
That's why we need the help of the FTC. Help bring this industry out of the shadows and turn it into one that consumers can trust.
Right on the money. Credit bureaus will make mistakes, that’s just natural.
I would have no problems paying 30,40,50 per month to get my credit fixed IF i knew it was a legitimate company.
If the FTC did help standardize the industry I think that would weed out the scumbags dragging it down.
Perhaps something similar to a Series 7 license. Back in the day, I think took me about 3 months to study and pass the Series7.
Nothing too overwhelming, but definitely enough for me to take my job seriously.
You make some very valid points Mr. Chase
Credit repair really could be a benefit to many people who don’t have the knowledge to help themselves.
With some regulation, I think it should be a welcomed industry.
You’re right Marc and I think eventually there will be more standards. It kind of reminds me of Napster. Was cool, people loved it,but it took time for people to figure out some regulation which I guess they did finally.
Credit could be a great service to the consumer because I know first hand it gets confusing. Unfortunatly, I got ripped off first before I found you.
Well that makes things a little more difficult doesnt it?
Your point is well taken Marc. I think it should be easy should a consumer want to repair his own credit, but he shouldnt need a law degree to accomplish it.
What did/are you doing with this one and do they owe her another settlement?
Great illustrations!! You have clearly shown what REALLY happens when we simply try to correct, reclaim or retain our accurate, and deserved -credit identity. A picture tells a thousand words!
The CRA’s continue to force consumers to work for free as a type of “quality control inspector”… monitoring, disputing and correcting our own information-for their profits.
Their product (our personal information)is sold over and over with very little, (if any)value placed on whether or not their product is deemed defective. What usually happens when it is deemed a defective product is being sold to the public?
Any other product that was found to be harmful to consumers would be pulled from the market. The corporations involved would be held accountable and the product would be unavailable-at least until scrutinized and determined the product was no longer defective. The CRA’s should be held up to the same standard as any other for profit company. They are not God -therefore, they should not be above the same laws we hold others accountable to.
Excellent Comments Denise and thank you.
Folks, I just took a look at Denise’s site and she has a book she is selling. “Give me back my credit” and you can find it here. http://givemebackmycredit.com/
I have not read it so cannot vouch for it, but what I’ve seen on her site, she seems like a straight shooter. Go check her out.
If anybody buys it, I would love your feedback.