Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Legal Credit Repair Services
1. Credit repair: Self-help may be best
The Warning Signs
You see the advertisements in debt repayment plan will
newspapers, on TV, and on the improve your credit report.
Internet. You hear them on the If you decide to respond to a
radio. You get fliers in the mail. This brochure explains how you credit repair offer, beware of
You may even get calls from can improve your credit worthi- companies that:
telemarketers offering credit ness and lists legitimate
•
repair services. They all make resources for low or no-cost Want you to pay for credit
the same claims: help. repair services before any
services are provided;
• •
The Scam
“Credit problems? No Do not tell you your legal
problem!” rights and what you can do
• “We can erase your bad Everyday, companies nation- yourselffor free;
•
credit100% guaranteed.” wide appeal to consumers with Recommend that you not
• “Create a new credit poor credit histories. They contact a credit bureau
identitylegally.” promise, for a fee, to clean up directly; or
• •
“We can remove bankrupt- your credit report so you can get Advise you to dispute all
cies, judgments, liens, and a car loan, a home mortgage, information in your credit
bad loans from your credit insurance, or even a job. The report or take any action that
file forever!” truth is, they can't deliver. After seems illegal, such as creat-
you pay them hundreds or thou- ing a new credit identity. If
Do yourself a favor and save sands of dollars in upfront fees, you follow illegal advice and
some money, too. Don't believe these companies do nothing to commit fraud you may be
these statements. Only time, a improve your credit report; many subject to prosecution.
conscious effort, and a personal simply vanish with your money. (over)
$ Fast Facts $
• Accurate and timely information cannot be removed from your credit
report.
• Credit repair clinics can't do anything to improve your credit report that
you can't do for yourself, at little or no cost.
• Avoid companies that want you to pay for credit repair services before
they provide any services.
• It’s illegal for telemarketers who offer credit repair services to request
payment until six months after they've delivered the services.
2. You could be charged and the credit reporting agency cost to consumers. You can find
prosecuted for mail or wire fraud for a dispute form or submit the office nearest you by check-
if you use the mail or telephone your dispute in writing, along ing the yellow pages of your
to apply for credit and provide with any supporting telephone directory.
false information. It's a federal documentation.
In addition, nonprofit counseling
crime to make false statements
programs sometimes are oper-
on a loan or credit application, to Clearly identify each item in your
ated by universities, military
misrepresent your Social Secu- report that you dispute, explain
bases, credit unions, and
rity Number, and to obtain an why you dispute the information,
housing authorities. They're also
Employer Identification Number and request a reinvestigation. If
likely to charge little or nothing
from the Internal Revenue the new investigation reveals an
for their services. Or, you can
Service under false pretenses. error, you may ask that a cor-
check with your local bank to
rected version of the report be
see if it has a list of reputable,
Thanks to the new Telemar- sent to anyone who received
low-cost financial counseling
keting Sales Rule, it's also a your report within the past six
services.
crime for telemarketers who months. Job applicants can
offer credit repair services to have corrected reports sent to Do-It-Yourself Check-Up
require you to pay until six anyone who received a report For Free
months after they've delivered for employment purposes during
Even if you don't have a poor
the services. the past two years.
credit history, it's a good idea to
The Truth Need Help? Don't Despair conduct your own credit check-
up, especially if you're planning
a major purchase, such as a
No one can legally remove Just because you have a poor
home or car. Checking in
accurate and timely negative credit report doesn't mean you
advance on the accuracy of the
information from a credit report. won't be able to get credit.
information in your credit report
But the law does allow you to Creditors set their own credit-
could speed the credit-granting
request a reinvestigation of granting standards and not all of
process.
information in your file that you them look at your credit history
dispute as inaccurate or incom- the same way. Some may look
Credit bureaus usually are listed
plete. There is no charge for only at more recent years to
in the yellow pages of your
this. Everything a credit repair evaluate you for credit, and they
telephone book under “credit
clinic can do for you legally, you may grant credit if your bill-
reporting agencies.” You may
can do for yourself at little or no paying history has improved. It
want to contact each of them for
cost. According to the Fair may be worthwhile to contact
a copy of your report.
Credit Reporting Act: creditors informally to discuss
their credit standards. For more information, or to file a
• You are entitled to a free complaint, contact the Bureau of
copy of your credit report if If you can't resolve your credit Consumer Protection at:
you've been denied credit problems yourself or you need
(800) 422-7128
within the last 30 days. If additional help, you may want to
your application for credit, contact a credit counseling
FAX: (608) 224-4939
insurance, or employment is service. There are nonprofit
denied because of informa- organizations in every state that TTY: (608) 224-5058
tion supplied by a credit counsel consumers in debt.
E-MAIL:
bureau, the company you Counselors try to arrange repay-
datcphotline@datcp.state.wi.us
applied to must provide you ment plans that are acceptable
WEBSITE:
with that credit bureau's to you and creditors. They also
http://datcp.state.wi.us/
name and address. can help you set up a realistic
• You can dispute mistakes or budget. These counseling ser- (Produced in cooperation with the Federal Trade
Commission)
outdated items for free. Ask vices are offered at little or no i:cpcicfactscrdrp122 2/00