Friday, September 26, 2014

Credit Repair SCAM - how it worked.

Credit Repair Services received a bad reputation in the past few years because of some shady individuals out to make a quick buck off on unknowing consumers.  The scam revolved around the among other things, the XB codes on credit reports in response to disputes; unscrupulous individuals saw a chance to make a quick buck by "guaranteeing" immediate improvement of credit scores.  They charge outrageous up-front sums of money; collected the money and then filed a blanket "*not mine" dispute on every negative account on your credit report.

*Lying on a dispute is never REAL credit repair.  The only form of real credit revolves around FACTUAL Disputes - protection of consumer rights as laid out by FCRA, HIPPA, FACTA, etc.

Anyway, these scam credit repair companies take your money, file the disputes, and then after a few days re-pull your credit report showing the AMAZING jump in credit scores seemingly overnight.  This is exposed as a scam after the "dispute" (I want to call lying) process runs it course and these items that were disputed suddenly begin counting against the client scores again.  When an item is in "dispute," it will state so on the credit report and also place a code (XB) on the report so that the scoring model does NOT account for the derogatory information on the account against the score.  Once this "in dispute" code (XB) is removed from that account - it is again accounted for in the score.

Hmmm...remember that "company" that took your money...they are suddenly no where to be found, don't return phone calls....


REAL CREDIT REPAIR is done by REAL Credit Professionals.
Credit Management Solutions

Tuesday, September 23, 2014

Do Not File Disputes Online with the Credit Bureaus! Why!?

Do Not File Disputes Online with the Credit Bureaus!
Why?  "Expeditious Dispute Resolution" Section in FCRA (Section 611a(8)) states, "The agency shall not be required to comply with the paragraphs 2, 6, and 7 with respect to that dispute if they delete the trade line within 3 days."

Paragraph 2 - Forward your dispute to the creditor along with the provided documentation.
Paragraph 6 - Send you the results of the dispute in writing
Paragraph 7 - Provide the items that verify the information

Disputing your accounts online through this "expedited process" essentially ensures that NOTHING happens permanently or positively to your credit report.  In response to an online dispute (which is ENCOURAGED and desirable by agencies (Equifax, Experian, and Transunion), the agency in question can do 1 of 2 things. 

1 - Delete the item within 3 days.  Sounds great, right?!  Wrong.  If they agency deletes the item within 3 days, the agency does not have to comply with paragraphs 2,6, and 7.   (Paragraph 2)They do not have to forward the dispute to the creditor.  Creditor isn't even notified that the item is in dispute. (Paragraph 6) They do not have to tell you what they did.  (Paragraph 7)They don't have to provide any information needed to verify the information.  What happens here is you file this dispute, you hear nothing back from anybody and when the next period comes back around for the original creditor to report to credit (creditors report information typically every 30 days) - the item reappears on credit EXACTLY as it was before.

2 - Send your dispute using the e-Oscar dispute resolution system that is in place.  This system takes your entire dispute and dilutes it down to 1 of 26 existing codes.  It should be mentioned that over 90% of all online disputes are diluted into one of 5 codes rendering the other 21 codes literally unused or useless.  The creditor then received a notice from the credit bureau with a code about your account (such as code 001 - "not mine"); the creditor checks it's records and replies back - verified account it's yours.
Long story short - the credit agency either does nothing, doesn't tell you it did nothing, and nothing happens OR the credit agency asks the original reporting creditor if they information they reported is correct.  In every single case, the creditor is going to check its records that it used in the FIRST place to report to your credit report and reply back that the information is correct.

Do not put yourself through this experience.  Call a professional credit restoration/repair/consulting company.  Get real advice on how to protect YOUR rights as laid out by FCRA!

Credit Management Solutions LLC