Is Credit Repair Legal?

In a recent study, it was found that over 80% of credit reports across the United States contained serious inaccuracies, such as wrong social security numbers, collections or charge-offs that do not belong to consumers, and late payments that never occurred.

Under the Fair Credit Reporting Act (FCRA) you have a right to dispute inaccurate information. There are specific guidelines as to when and how the reporting agencies must respond.

Tips for Success:

1. Send all correspondence using certified mail, so you can document each letter by date received.

2. Dispute inaccuracies by name, account number, and specific description of what’s wrong.  Send your disputes to both the credit bureau and the creditor or collection agency.

The credit bureaus, creditors, and collection agencies have 30 days to investigate your dispute.  If they exceed 30 days and continue to report negative information on your credit report, they are in violation of the Fair Credit Reporting Act.

Violations can be taken to small claims court and monetary awards of $1,000.00 are standard.

About The Author

Brian Diez

Brian Diez is a nationally recognized credit expert. He has been quoted in the Wall Street Journal, Yahoo Finance, Dow Jones' Market Watch and Credit.com.