If you have negative information in your credit file, as
reflected by the Big Three reporting companies, Experian,
Equifax, and TransUnion, proves to be accurate, there is little
you can do about it. Only the passage of time will guarantee
that information's ultimate removal from your file. The
reporting companies will generally list negative credit
information for seven years, and bankruptcy information will
remain on your report for ten years. The time limits generally
begin being counted from the time the event initially took place.
There are other limitations, as well, such as unpaid judgments
against you. Those can be reported in your credit file either
for seven years or until the statute of limitations for that
particular type of judgment expires, whichever is longer.
However, there are no limitations as to how long criminal
convictions may be listed. The same is true for information that
was reported due to your applying for employment that would pay
more than $75,000 a year, or because you've applied for credit
or life insurance in excess of $150,000.
If you decide to seek professional help, the Credit Repair
Organizations Act (CROA) has clearly detailed your rights as a
consumer. You must be given a copy of the booklet "Consumer
Credit File Rights Under State and Federal Law" BEFORE you sign
any legal contract with an organization. Your contract must be
in writing, and must clearly spell out all your rights and
obligations. Of course, it's then your duty as a diligent
consumer to read all the documents you're given, and then to ask
questions if they contain anything you don't understand BEFORE
you sign.
The CROA contains a number of quite specific provisions designed
to protect consumers. The most obvious provision is that no
credit repair company can make deliberately false or misleading
claims about the services they're capable of providing to their
clients.
There are a number of specific points that must be clearly
addressed in a contract with a credit repair company. The
company's name, address, and contact information must be
included, the contract must specify the total cost for their
services, as well as a detailed description of the services
they'll perform in order to earn those fees. The time frame for
the work's completion must also be clearly specified, as well as
any guarantees they may offer for their services.
You can't be charged up front for a credit repair company's
services, and you can't be required to pay until they've
performed all the services they initially promised you in the
written contract. Credit repair companies are also prohibited
from performing any services in your behalf until you have
signed a written contract and then have been given a three-day
waiting period. At any time during those three days, you have
the right to cancel your contract with a credit repair company
without being required to pay any fees.
Don't let your difficult financial situation blind you to your
rights under the CROA. You have specific rights when it comes to
dealing with credit repair companies. Insist on them.
Copyright © Jeanette J. Fisher
About the author:
Jeanette
Fisher teaches six ways to build credit. Free credit ebook "Credit
Tips for Mortgage Financing" http://worryfreecredit.com
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