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5 Myths of Credit Repair

Credit 5 Myths CREDT REPAIR МҮTH MYTH BUSTED The nature of credit bureaus. Credit bureaus are official, quasi-governmental agencies, and American institutions that work alongside your creditors to keep every adult citizen towing the financial line. fact They are for-profit businesses and have no government affiliation. UNITED Comptroller of the Currency CRAS (Credit Reporting Agencies) and those furnishing data to them are subject to the FIROLROR THE C COMMISSION 1863 authority of two government bodies - The Federal Trade КМСМXУ * FEDER Commission (FTC) and the Office of the Comptroller of the Currency (OCC) AIR CREDI The Fair Credit Reporting Act is a federal law that defines how CRAS should operate and provides consumers the ability to challenge their credit reports. FCRA REPORTING ACT cfpb Starting September 30, 2012, the Consumer Financial Protection Bureau will also have Consumer Financial Protection Bureau oversight over CRAS, including the three big national credit bureaus, and conduct on-site examinations to ensure compliance with the law. MYTH BUSTED ΜΥΤΗ Your credit report is reviewed carefully. fact REQUIRED BY FEDERAL LAW to contain information that is fairly reported, 100% accurate, and fully substantiated upon consumer request. Awarded $5.3 Million JUDY 2$ Judy Thomas of Klamath Falls, Oregon, was awarded $5.3 million in a successful lawsuit against TransUnion. The award was made on the grounds that it took her six years to get them to remove incorrect information in her credit report. 79 PERCENT of credit reports include errors of some kind 200 PEOPLE said their credit reports listed them as DEAD in a recent study.* 200 25% of the complaints filed with the FTC involved mistakes about credit cards, mortgages and car loans. MYTH BUSTEL MYTH Including a credit statement alongside 3 the baddies on your credit is helpful. fact Statement may be viewed as an admission of guilt fact Loans are approved or denied based on numbers- the FICO score, and not words. fact Statements may be viewed as excuses GUILTY MYTH BUSTED МҮТH A Negative items must remain for 7 years. In the United States, credit reporting is entirely voluntary, with no enforceable minimum time period. If creditors cannot (or would rather not) document FAIR, ACCURATE, and SUBSTANTIATED credit reporting, then their credit report data must be removed. fact These are only MAXIMUM ALLOWABLE PERIODS. Information furnishers can remove nformation whenever they like at their option. Negative Information Reporting Period Limit Bankruptcy (Chapter 13) years MYTH BUSTED Bankruptcy (Chapter 7, 11, and 12) 10 years MYTH BUSTED Civil suits, civil judgments, and records of arrest (Foreclosures. Child Support, Small Claims) 7 years or until the governing statute of limitations has expired, whichever is the longer period BUSTED Paid tax liens MYTH BUSTED 7 years Accounts placed for collection or charged to profit and loss/Collection Accounts years MYTH BUSTED Any other adverse item of information, other than records 7 years MYTH BUSTED of convictions of crimes years from date of reported Closed accounts MYTH BUSTED closing if they have delinquencies, 10 years if there's a balance Late Payments years MYTH BUS 180 days from date of delinquency + 7 years Charge-offs MYTH BUSTED 7 years BUSTED Student loan default Inquiries 2 years MYTH BUSTED years, if there's no delinquencies; 7 years if there is delinquency Lost credit card MYTH BUSTED Collection or charged off accounts not greater than $100 З years MYTH BUSTED Forever Unpaid Tax Liens in effect unless a state law exists with greater consumer protection Unpaid Federal Student Loans Forever BUSTED Criminal Conviction Forever YTH BUSTED MYTH BUSTED MYTH Seeking help in repairing credit is unlawful. fact Attorney Generals (AGs) have authority to file a lawsuit under the Fair Credit Reporting Act. Thousands of consumers contacted the Federal Trade Commission HELP and/or their state attorney general to help them deal with the biggest national credit-reporting agencies-Equifax, Experian and TransUnion. The nature of the complaints filed with each entity: Nature of Complaint Attorney General FTC Unable to access free credit report, file a dispute or get phone help. 30% 38% Errors on account that belongs to 24% 54% the consumer. Credit report merged with another's. 6% 8% Incorrect name, Social Security number or other demographic information. 5% 42% Charge money for free credit report. 3% 8% Reported as deceased. 1% 1% Victim of identity theft. 1% 7% plain-a-bad-mark-or-a-mistake-in-my-credit-file/ rt-epsjpg * sources mers.html Q Credit CURRENC AMERICA RAL TRADE

5 Myths of Credit Repair

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5 Myths of Credit Repair - BUSTED!


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