When your credit report looks worse for wear, you may wonder what you can do to remedy these matters. However, you may come across credit repair companies claiming to fix your report easily. Despite how tempting this may sound, understanding the reality of these businesses and their limitations is critical. Before agreeing to work with a credit repair business, you’ll want to read this blog to learn what you must know about these matters and why connecting with a California credit report lawyer is in your best interest instead.
What Do Credit Repair Companies Actually Do?
Credit repair companies tout their ability to help consumers turn their negative credit reports into positive ones. As such, you’ll find that these companies:
- Request copies of your credit report
- Scan for potential inaccuracies or errors
- Send disputes to reporting agencies
While these may seem beneficial, it’s important to understand that these companies charge consumers for steps they can take themselves.
Why Credit Repair Companies Often Do More Harm Than Good
Though in theory, these companies sound incredibly helpful, you may be surprised to learn they may not be what they seem. Unfortunately, the credit repair industry is rampant with scams, which can negatively impact consumers looking for help.
Common Problems With Credit Repair Companies
- Charging upfront or monthly fees without guaranteed results
- Disputing legitimate debts for temporary credit score changes
- Using generic template letters to dispute debts that lack supporting evidence
- Failing to follow up when disputes are denied
- Creating false expectations about credit “repair”
A Common Misconception: You Can’t “Repair” a Credit Score
Your credit score is reflective of an amalgamation of data points. As such, you cannot manually change your credit score. The only time you can have information removed from your credit report is if the information is inaccurate, incomplete, or unverifiable.
It’s important to understand that:
- Credit repair agencies cannot delete accurate information (even if it is negative)
- These companies cannot force reporting bureaus to remove verified debts
- They cannot permanently improve your credit by disputing information on your report alone
Improving your credit takes a considerable amount of time and dedication. Making on-time payments, keeping your credit utilization rate low, and managing different kinds of credit can all contribute to improving your credit score, though the process will take time to reflect improvements.
Why Working With an Attorney Is Different
If you are impacted by incorrect information on your credit report, connecting with an experienced lawyer is in your best interest to review your legal options. Unfortunately, you may find that working with a repair company can do more harm than good, wasting time and money.
However, a lawyer can help examine the specifics of your case, craft a thorough dispute letter with supporting documentation and evidence, and fight on your behalf against unfair credit report practices.
Legal Authority Credit Repair Companies Don’t Have
- An attorney can investigate violations of the Fair Credit Reporting Act (FCRA)
- A lawyer can demand documentation and compliance from reporting agencies and credit furnishers
- Attorneys may escalate disputes beyond an initial bureau review
- Legal representation creates accountability that agencies must respond to
Your Rights Under the Fair Credit Reporting Act (FCRA)
One of the most important rights that you are granted as a consumer is the Fair Credit Reporting Act (FCRA), which helps regulate how and when your credit report is used, as well as the information that is included. As such, under the FCRA, you have the right to:
- Accurate credit reporting
- Dispute inaccurate or erroneous information on your report
- Have disputes properly and promptly investigated
- Seek damages for violations of the FCRA
Potential Compensation in Credit Reporting Cases
In the event that your rights under the FCRA are violated, you may be entitled to damages, including:
- Statutory damages
- Actual damages
- Attorney fees and costs, depending on the circumstances of the case
Contact Our Experienced California Consumer Firm Today
At Loker Law, we understand how difficult these times can be, which is why we will do everything in our power to help you fight for the justice you deserve. Contact our Arroyo Grande team today to discuss your circumstances with a member of our competent firm to learn how we can represent you if you need assistance.
