Credit Repair Fact or Fiction?
You are the trusted real estate advisor so it’s likely that past clients will contact you when they are struggling with their mortgage payment or experiencing a short sale, foreclosure or deed-in-lieu that will show up on their credit report. Here’s some credit reporting facts you can share:
The Credit Bureaus are a branch of the government, infallible, and above reproach. FICTION - The credit bureaus are publicly & privately traded companies in business to impress stockholders. They are not government agencies. They are one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes.
A recent survey by an independent research group revealed more than 70% of credit reports contained mistakes or errors. The prevalence of errors has lead to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.
Is Credit Repair Legal? FACT - You bet it is! As a consumer you have rights under the Fair Credit Reporting Act (FCRA) passed in 1970. Essentially this gives you the right to have the information about you reported accurately, the information can be verified and if you dispute an item they have 30-40 days to respond. The other law that protects you is CROA, the Credit Repair Organizations Act. If credit repair was illegal then there would not be a law governing Credit Repair Organizations!
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