Credit repair software allows users to quickly increase their credit scores and correct inaccurate information on their credit files. The process is simple; the credit bureau will send the user a software update or an email that informs them of any information that needs to be updated. The user then has a choice to either update the file themselves or report the error directly to the credit bureau. This is much faster than calling the credit bureaus directly and it is also less expensive. Credit repair is a useful service for many consumers, but there are others who may not benefit from this service.
The majority of credit repair services are non-profit organizations that are designed to improve your credit scores. Some of these companies have a huge number of supporters who https://strongcreditrepair.com/ believe that the negative information on their reports should not be allowed to remain. Unfortunately, some of these credit repair companies use questionable tactics to help get rid of negative information. Some of these unethical firms have issued cease and desist orders to companies that do not follow the law.
In addition to cease and desist orders, some companies have even gone as far as to legally challenge or attempt to remove information from credit reports. One such case occurred in the state of Texas. A credit repair organization sued a collection agency for attempting to remove a debt settlement agreement from the plaintiff’s file. The court ordered the agency to remove the debt from the report because the agreement was signed when the plaintiff was in financial distress. The credit repair organization lost the lawsuit, but won the argument in court.
Other types of credit repair companies may make false statements about their services in an attempt to receive payment from a client. For example, some companies may recommend that a person buy a car before making payments. If an interested consumer agrees to this, the company may add an additional fee for late payments. The consumer may think that they have made all of their payments on time, when in reality, the company is making false statements about when they will pay the money.
Some credit repair companies also recommend that people buy “pay per delete” credit cards. This is similar to the pay per click advertising that major search engines use. The consumer thinks that they are getting a good deal, when in reality they are spending more than they intended to. This is a great choice for people who tend to be online a lot, because they do not have to pay for anything until they actually make a purchase.
All of the three nationwide credit bureaus allow consumers to dispute inaccurate and misleading claims on their accounts. However, one should exercise caution when deciding which of the three nationwide credit repair companies to use. Not all of the companies will provide you with the same service, so it is important that you find a reputable credit counseling company. Do a careful review of the three nationwide credit bureaus and check out the customer reviews. You can also go to the state attorney general’s office or local library to research the reputation of each credit counseling company.