Credit Repair and Credit ReportsCredit repair is shrouded in mystery. Why? The credit reporting agencies, along with the much larger banking institutions which depend upon them, desperately need consumers to buy into myths which perpetuate their respective businesses. Unfortunately, though, not knowing the truth can cost a consumer tens or even hundreds of thousands of dollars during an average lifetime. Where credit bureaus are concerned, there are essentially two sets of "truths." On the one hand, there is the PR "truth", which you can find repeated in just about every credit-related book and Internet site. And then, of course, there's the real truth. In order to get control of your credit rating you need to know the difference. Are Equifax, Experian, and TransUnion the only three official credit bureaus? First, the so-called "big three (Equifax, Experian, and TransUnion)" consumer reporting agencies that most Americans are familiar with truly want consumers to believe that they've each been blessed with a sanctioned franchise. Actually, the only reason such corporate behemoths now dominate the landscape is because their progenitors simply managed to swallow up each other as they battled for preeminence through the decades. Greed, not official dictum, paved their way. Even if you didn't click the historical link in the previous sentence and missed out on how, for example, the company which became Equifax once used Welcome Wagon ladies to spy for them), suffice to say there is hardly anything "beloved" about these privacy-busting companies. Moreover, there are indeed other, newer, credit bureaus on the horizon (with names like Innovis, Lakeside, and NCTDE) which hope to eventually eclipse today's major players. In fact, anybody who so desired could start their own credit reporting agency, collect personal information about their friends and neighbors, and then attempt to sell that data to whoever would be nosy enough to purchase it. Sure, federal law puts limits upon what can be reported and to whom, but nothing bars any one of us from entering the field outright regardless. So contrary to the prevailing perceptual reality, there are no official bureaus. And while most Americans perceive their credit reports to have at least the same legal standing as their driving records, the truth is that the government had no role in establishing the for-profit companies which produce them. Put bluntly, no law mandates a credit report's existence, and such documents deserve as much respect as "The Weekly World News" supermarket tabloid or any other similarly unproven list of allegations.
And what about the "accurate records" idea that these beloved and vital American institutions maintain accurate records regarding the financial lives of every adult
citizen? Every serious study to date has reached the same conclusion: Credit reports
do contain errors.
Can Bad Credit be Deleted?
Yes, it can. Despite the fervent proclamations of bureaucrats and credit bureaus everywhere, a simple fact remains: negative credit listings are deleted from peoples' credit reports by the thousands each and every day. An attorney from visited with a regulatory agency for a casual conversation with two agents. The Agency's office, as a matter of course, believed the credit bureaus' claim that bad credit couldn't be deleted. The visiting Lexington attorney asked, "How many negative listings would you have to see deleted from consumer credit reports before you would believe that bad credit can be deleted: ten? fifty? a hundred? one thousand?" The agents responded with only blank stares. "How about 50,000 deleted listings, would that convince you?" continued the Lexington attorney. From his briefcase he pulled a stack of papers six inches high. "In these pages, we have listed the permanent deletion of over 50,000. listings from our clients' files in the last two years alone," he explained. The agents pulled the stack across the conference table and began to pick through the pages, taking in the massive list. "But have you deleted any bankruptcies?" shot back one of the agents, "we know that bankruptcies can't be deleted." The Lexington attorney leaned across the table and ran his finger down the first page. "There's one deleted bankruptcy... and, there's another,... and another,... and another. Should I go on?" asked the Lexington attorney. The agents sat back in their chairs. "You know," began the junior agent, "I have this one listing on my credit report that simply must belong to somebody else..." How is credit repair possible? The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of "completeness and accuracy." When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing. Order a 3-Bureau Credit Report, and see what's in your report. |
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