Call Lexington Law at
855.620.5875
for a FREE Consultation

How do credit repair companies work?

How do credit repair companies work?

Credit repair companies are businesses that will help consumers clean up their credit report so that they may successfully obtain a mortgage, car loan and/or other assets. The term ‘credit repair’ refers to the legal work and methods that are utilized by a business to dispute inaccurate, misleading or incomplete consumer credit listings.

The majority of consumers believe that there is nothing that can be done to change their credit report information. However, the Fair Credit Reporting Act (FCRA) gives consumers the right to correct any misinformation that might be on their credit report. Therefore, the consumer is totally accountable for making sure that their credit reports are a true representation of their consumer behavior. However, most consumers fail to take the time to learn the pertinent consumer protection rights or prepare a strategy to correct their credit. Also, ever since the FCRA was instituted in 1970, creditors have been working to make it difficult for consumers to access their credit information. Therefore, credit repair companies take on these tasks on the behalf of the consumer. These companies have the experience and knowledge that are required to effectively address a consumer’s troublesome credit history. Credit repair companies can challenge any credit report issues, including everything from tax liens to bankruptcies.

Credit repair companies contact credit bureaus and individual creditors on behalf of the consumer to remove the negative items from their credit reports. It is actually a simple four stage process: obtaining credit reports, legal actions, credit score analysis, and follow-up. To begin the process, the consumer simply has to sign up with a credit repair company and submit a copy of their credit reports. The credit repair company will assist the consumer in obtaining their credit reports from the three major credit bureaus (Equifax, Experian and TransUnion). The consumer will then indicate which specific items need to be disputed. At that point, the credit repair company starts their work on the case.

Once a credit repair company has started the case, the company’s attorneys and paralegals will carefully review the credit reports. At that point, they will prepare the proper legal challenges that apply to the case. Once the consumer has been advised of the findings, the credit repair company will submit the challenges to the creditor. During the process, the credit repair company’s paralegal is available to the consumer to supply helpful information on what steps can be taken to enhance their credit score. The credit repair companies also allow the consumer to monitor their results either through a website or by an email/phone contact at the company. Finally, the credit repair company will follow-up with the consumer regarding the results of the case. The FCRA has made this entire process possible for credit repair companies. As part of the law, the credit bureaus are required to complete their investigation within a maximum of thirty days. If a credit bureau determines that the disputed information is incomplete or inaccurate, they are required to delete the information.

Lexington Law is the top firm in credit repair services as they make the process extremely simple and effective for their clients. Lexington Law Reviews provides all of the information that a consumer needs to know about the company, including Lexington Law’s history, services and program costs. For the most effective challenge against a negative credit rating, consumers should examine Lexington Law Firm Review.

Submit a Comment

Your email address will not be published. Required fields are marked *

/* */