The Standard Procedure

All credit repair services revolve around federal laws that have been enacted to protect consumers’ rights. The Federal Trade Commission (FTC) is the government agency charged with regulating companies to make sure they are abiding by all regulations. By understanding the following laws, you will know your rights when dealing with creditors and credit bureaus.

1. The Fair Credit Reporting Act (FCRA) is intended to ensure that all information on credit reports is fair and accurate. Consumers are allowed to challenge any information they believe to be incorrect on their report. The credit bureaus have 30 days to complete an investigation to verify the item in question through the creditor. If the creditor cannot provide sufficient evidence of the debt, then the item must be promptly removed from the report.
2. The Fair Debt Collection Practices Act (FDCPA) is intended to prevent abuses by creditors trying to collect a debt. Some of the practices that have been banned as unfair are harassing phone calls, threats of arrest and other deceptive statements to the consumer. They are also not allowed to contact friends, neighbors or employers with information about the existence of the debt. Violations of these regulations could result in the debt being cancelled.
3. The Fair and Accurate Credit Transactions Act is designed to protect consumers from identity theft crimes. It states that creditors must use reasonable means to determine the identity of an individual before completing transactions or opening an account in their name. It also has provisions that help consumers restore their credit after a crime by allowing fraud alerts to be placed on credit reports. This forces creditors to take extra care when verifying identity.
4. The Fair Credit Billing Act is to protect consumers from billing errors on credit cards and other revolving accounts. It states that you have 60 days from the mailing of the first bill containing the error to challenge the item in writing. The creditor cannot report the debt as unpaid while the item is under investigation.
5. The Truth in Lending Act (TILA) is to protect consumers from deceptive practices by banks or other lenders when seeking a loan. It states that the consumer must be made aware of all fees and interest rates associated with the loan. The lender must state an Annual Percentage Rate (APR), which will give the consumer the actual annual cost of the loan.

These laws provide a guideline for some of the ways in which NYCCR can help to repair your credit report and improve your score.