For most consumers, the credit repair process is shrouded in mystery. A confusing world filled with acronyms, secret algorithms, technical terms, and numerous laws with thousands of interpretations which make little to no sense at all.
But in reality, it’s not all that complicated. Lets take a peek behind the shroud and look at the most common misconceptions consumers have about credit repair.
Misconception 1. The credit reporting agencies are government organizations.
Most consumers assume that because of the power the credit bureaus wield, they are a part of the federal government and are subject to bureaucratic oversight.
This is absolutely false.
The 3 largest credit reporting agencies, also known as the credit bureaus (Experian, Equifax, and TransUnion) are all private for-profit corporations with no government affiliation. They answer only to their board of directors and their shareholders.
Don’t be afraid to challenge them and use your consumer rights to the fullest extent of the law.
Misconception 2. The credit repair process is very limited.
False. Most consumers give up on the dream of better credit after unsuccessfully challenging the negative information in their credit reports.
If initial attempts to clean up your credit fail, do not give up. Leverage your consumer protections laws such as the HIPAA, the FDCPA, the FCBA, and go after the original creditors, third party data furnishers, and collection agencies.
Many credit repair issues can be resolved by going after the company reporting the account to the credit bureaus.
For example, you may request that the data furnishers provide you with all of the compliance documents required for reporting your account to the credit bureaus. If they cannot provide you with these documents within a specific time frame, they must delete the derogatory account from your credit report. No questions asked.