Active Credit Repair

Debt collectors routinely try to collect on debts that they know would not be enforceable in court. They may even try to get you to restart the debt by making a partial payment or by transferring the old debt to a new credit card. But, in a lawsuit settlement with one of the biggest debt collectors, the FTC lets the debt collection industry know that collecting on expired, or time-barred debts, is not ok.

The FTC sued Asset Acceptance, a company who might be listed on your credit report, following allegations that the company violated several rules including: telling consumers they owed debt that the collector may not have been able to prove, failing to tell consumers that their debts were past the statute of limitations, and failing to tell consumers that a partial payment would extend the statute of limitations.

In addition to a civil penalty of $2.5 million, Asset Acceptance has agreed to inform consumers when their debts are too old to be legally enforceable and to let consumers know that a partial payment would essentially restart the statute of limitations on that account. Asset Acceptance also has to inform consumers when they’ve placed a negative account on the consumer’s credit report.

While a judge hasn’t signed off the terms of the settlement, they set a precedent for what the FTC expects of the collection industry. The agency has also released a new publication, “Time-Barred Debts: Understanding Your Rights When It Comes to Old Debts,” to help consumers better understand what to do about old debts.

You may know that the statute of limitations varies by states. It’s generally between Read more…

When you contemplate signing up with a credit repair agency in an effort to reset your financial priorities and boost your credit score, you need to know what you are getting yourself into for the long haul. Not all agencies claiming to help your score are operating on the up-and-up. Many are just in it for the money and counting on your ignorance of the law and desperation for a better score to make a fast buck.

Here are some tips to help you avoid getting taken in by countless credit repair scams and what you should know about their service contracts.

• Beware promises that are not realistic such as claims of ‘overnight credit repair’ or ability to remove all negative information from your report. Both concepts are impossible and in some cases illegal.

• Realize you can do everything yourself for free. Consumers have the power to repair their own mistakes. They only part of the equation they have to pay out of pocket for is the credit score information which costs about $15 from each reporting agency. Otherwise, all other work is free including filing disputes of inaccurate negative information contained in a credit report. Read more…

One method for eliminating part of your debt load is to request from a creditor or a debt collection agency that a pay for deletion be used to settle your account balance still outstanding. For the consumer, a portion or a full amount of the balance is paid in exchange for a deletion of the account.

There are some collection agents that will lead a consumer to believe a pay for delete negotiation is not legal or they are not able to offer you the option. However, a pay for delete is an acceptable practice for negotiating debts.

Get It in Writing

A key point in a successful negotiation to delete accounts after payment is to ensure all negotiations and made agreements are put in writing. If you are sending a request for a payoff and an account deletion, it should be done by you in writing to the creditor or collection agency and mailed via the certified, return receipt requested option at the post office. It will cost you more in postage but the extra steps will give you the peace of mind that you have left a traceable negotiation on your debt.

Other Tips for Successful Deletion

Once you are able to negotiate a pay for delete scenario with a collection agency or creditor, you will need to Read more…

During the process of credit repair, you may encounter a call (or several) from a debt collector trying to collect on a debt you may not be familiar with or you are not ready to deal with the present time. A powerful and effective tool for dealing with such a scenario is to request a debt validation letter. Making this request is within your right and also protects you from a potentially fraudulent scenario.

What is a Debt Validation?

Debt validation is a legal process which is part of the Fair Debt Collection Practices Act. Debt validation is a request made by a consumer to the creditor asking for proof that the collection agent making content has been assigned to collect the debt. It also helps to establish the total amount you owe as per the original creditor. Read more…

The Federal Trade Commission has sued a Texas company for charging fees to customers before services were rendered.

The lawsuit filed by the Federal Trade Commission alleges that the Texas company, RMCN Credit Services, has been unlawfully charging prospective clients credit repair service fees before any work is performed. The FTC filed the lawsuit as part as their renewed effort to cut down on credit repair companies and their associated scams.

The FTC has been working to ensure that consumers who are undergoing financial problems are not being victimized by so-called credit repair service companies. The agency found that RMCN Credit Services were charging consumers a retainer fee that went as high as $2,000 for some clients. The retainer fee went towards fees to cover with credit repair help.

The RMCN retainer fee was a direct violation of federal laws that do not allow credit repair agencies to collect any kind of fee without first performing specified credit repair services. The FTC found the Texas company to be charging the retainer fee to clients upfront before work was completed on behalf of the client. Read more…

For those who are pursuing a military career,  a poor credit score can be the downfall of a much anticipated promotion or the ability to obtain security clearances necessary for the job. While consumers in general need a good credit score to ensure they don’t pay extra for utility services, car insurance premiums, and loan interest rates, bad credit can seriously affect the lives of those in the military.

Pioneer Services has stepped in to help military families who are struggling under the burdens of bad credit and big debts. The company has created a kit with a downloadable PDF information sheet which provides the data a consumer needs to improve credit and reduce debts. The kits also contains podcasts and other interactive information to increase financial literacy among military families.

Military families are often hit hard by the burden of debt and bad credit due to low-end pay rates, frequent re-location, and basic consumer credit mistakes others often make. However, because of the risk to one’s career within the military, Read more…

While 60% of respondents to a Visa Inc survey were technically wrong when they said employment is used to calculate credit scores, they weren’t that off base. Employment status can have an impact on your credit score, even though it’s not directly included in your score.

Consider the things that do affect your credit score: how you pay your bills, the amount of debt you have, the length of time you’ve had credit, the types of accounts you have, and the number of times you’ve applied for credit. Your employment history directly impacts several of those factors.

Your job affects how you pay your bills.

Whether you have a job – and how much that job pays – impacts your ability to pay your bills on time. If you’re unemployed or your job doesn’t have a great salary, that can keep you from paying your bills on time. Payment history is 35% of your credit score and missing payments has a detrimental affect on your credit score. On the other hand, consistent employment and a good salary enable you to pay your bills on time every month and possibly in full.

Having a job lets you keep your debt levels low.

If you’re currently unemployed, that employment status can affect the amount of Read more…

Your credit score plays a crucial role in any of your future financial pursuits, which is why it is important to actively work on establishing and maintaining good credit. For some, this may involve implementing credit repair strategies and CreditRepair.org helps you do just that! Check out the following articles that elaborate on how to format credit repair letters, when to utilize this strategy, as well as explain the reasons why such proactive methods are important in rebuilding your credit score. Many of these resources also offer concrete examples which help you decide which letter is best suitable for your needs. Dive in and let the knowledge guide you on your way to a better credit score! Read more…

Negative records on your credit report can cause a substantial drop in your credit score. While the tips and strategies we teach at CreditRepair.org may be helpful for many, they will not be as effective in case you have negative records, which keep bringing your score down.

Deleting Negative Records

There are professional credit repair agencies, which specialize in removing negative items from clients’ credit reports. We highly recommend Lexington Law because of their astonishing track record (see the short sample on the left), client testimonials, company ratings and true expertise in this space.

Client Testimonials

If you want to learn about a company’s services, the best people to ask are its current and former clients! Watch the video below to see what people have to say about their experience with Lexington Law and the result of the service on their credit scores and reports.

Based on information from various credit counseling agencies operating in Florida, women are more likely to reach out to debt counselors and other agencies to get help dealing with personal debt issues. Women currently make up more than 62% of the client base at one of the largest credit counseling agencies in Florida as reported by the Orlando Sentinel.

Many of the clientele are single mothers or divorcees trying to make ends meet as the Head of Household. A credit scores and histories are being relied on heavily by a number of industries women are seemingly taking a proactive measure to get their finances back on track. The women are faced with the daily pressures of family life, eliminating debt, and keeping food on the table.

During the recession between 2007 and 2009, many male workers had their jobs eliminated with 4 millions jobs lost in construction during that time. These downsizing measures and significant job losses spurred women into becoming the chief or sole breadwinner of the family unit.

Along with the burden of making more money came the added burden of Read more…