Four Laws That Can Help You in the Credit Repair Process

If you are seeking to repair your credit, you would do well to acquaint yourself with the rights afforded to you by the laws of the land. You will find that certain laws can be very helpful for you to know when going through the credit repair process. There are four legal statutes in particular that you should study with interest.

The Fair Credit Reporting Act sets certain controls on what others may do with your credit information. The Act deems consumer reporting agencies responsible for providing people with the credit information that the agencies possess. The agencies are also required to make an investigation when someone files a dispute claim with them regarding credit information, and to correct the record if necessary. When a correction has been made after a dispute investigation, the agency may not reinclude the negative information that was removed until it has sent notice to the reportee within five days.

The Act also mandates how long negative information can be kept in a person’s report; once the time limit has expired, the information can no longer remain on the record. Most can be stricken from the record seven years after the initial negative report. A bankruptcy is retained on the record for ten years, however, while a tax lien is retained until seven years after they have been fully paid.

The Fair and Accurate Credit Transactions Act specifies that everyone is entitled to a free credit report once every 12 months from each of the three national credit reporting agencies, which are Experian, Equifax, and TransUnion. This act also contains provisions for protecting people from becoming victims of identity theft and credit fraud.

The Fair Debt Collection Practices Act offers people protection against harassment and other abusive practices by creditors. The act also states that debt collectors are required to let people know of their right to dispute an item of credit. If someone does file a dispute, the creditor is required to inform the credit reporting bureaus of the matter.

The Credit Repair Organizations Act regulates the practices of credit repair companies and professionals. It requires them to inform you of your rights and obligations before you sign a binding contract. It also makes it illegal for credit repair specialists to make false service claims or extract their fee before providing the services they were contracted to do. It further specifies that after the contract signing there must be a five day waiting period during which the company cannot act, and in that time you are allowed to get out of your contract without having to pay any fee.

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