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Is Credit Repair Legal?

You must undestand that repairing your credit, regardless the reasons why it is damaged is 100% legal. In fact, the law is on your side. There are several federal laws that protect you from the big bad credit bureaus - the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable federal statutes and state laws. These are the laws that apply to credit reporting and debt collection. You have specific rights regarding both. Understanding your rights is basic to moving forward. Read and re-read until you are familiar with these laws. You have the right to dispute any information contained on your credit report. This is done by writing the CRA. The CRA then is required to verify that information with the furnisher. They have 30 days by law to do so. If such information cannot be verified, it must be deleted.
Note that whether the account is "really" yours or not has no bearing on their responsibility to verify it. If it cannot be verified, it must be deleted. Period!
You also have the right to "validation". This is demanding that the creditor reporting the information prove to you that the account is really your responsibility, and that the balances, etc are accurate. In the case of collection agencies, they must also prove that they have legal right to collect the debt.
They must STOP all collection activity, including reporting and verifying, until they supply proper validation to you after a written request. Although no time limit is specified for them to validate, they cannot continue collection activities until they provide such validation Sometimes, Collection Agencies will stop collection activities and return the account to the original creditor rather than validate. (This is perfectly legal.)