Credit Repair and the Law
There are United States Federal Laws that regulate what you are dealing with when you are trying to repair or establish credit. It’s a good idea to know about a couple of them, as the credit report companies and bill collectors usually are bound by them.

The Fair Credit Reporting Act (FCRA) regulates what information is available on a credit report, how long it remains, and who can access it. It also sets procedures (due process) for disputing items on these reports. With the rampant growth of credit problems, credit fraud, identity theft, and more, the laws are changing too.

A credit report is your confidential information. In most cases, others can’t inquire and look without your permission. It used to be written permission, though many sources these days will inquire from your word (online, over the phone, etc). Inquiries into your credit report will show on it for a year as well.

As far as the law is concerned, they can maintain 7 years of information and up to 10 where there is a legal judgment involved. They include address information, social security number(s), credit accounts you may have with various financers, and how you pay. Late information, over limit, and any non-payment information will be shown as well.

It’s wise to get your own consumer copy periodically, to check what is on there. With that you can see who’s been looking, what is on there (that might be incorrect) and possibly things that aren’t even yours.

Should you find incorrect information, or things that aren’t yours, you should contact the credit reporting company and get a dispute going on the particular item.

The Fair Debtor Collections Protection Act (FDCPA) regulates what those collecting debts outside of the original creditor (collection agencies) can do.

When you get caught up in debt, often those you owe stop bothering after a reasonable time and pass the account onto collection agencies. These agencies for a fee try harder to get the money. The fees are often 25-50% of the amount they collect. They make good money getting others money.

There are regulations they must abide by though. First off they can’t discuss your debt with anyone besides you, those you authorize, the creditor, and potentially other creditors (regulated by the FCRA). So they can’t just call your neighbors and tell them bad things about you. This is one of the reasons this set of laws were created back in the 70s.

It also limits the times they can call you, and also allows for you to tell them not to call you under certain circumstances, though mostly in writing. They aren’t allowed to simply harass you. Their job is to get the bill legally paid and no more. They are not authorized in any official government capacity and cannot say they are. What they can do is threaten legal action if they actually intend to take it, but not lie about it as a pressure tactic.

Often accounts will get put with one agency, then after a while without results will get sent to others. Collection accounts (and payment history on them) will very likely show up on your credit report as well. If you agree to pay, and do so, it can help to build your credit.

These are just a few details on the laws that help protect you in the area of credit, its repair, and so on. From here, you have a better leg to stand on, and remember, it’s a tough world out there…
 
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