THE LAWS THAT MAKE CREDIT RESTORATION POSSIBLE
This is an excerpt from the Fair Credit Reporting Act (FCRA)
611. Procedure in case of disputed accuracy
(A) In general. If the completeness or accuracy of any item of information contained in a consumer’s file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly of such dispute, the agency shall reinvestigate free of charge and record the current status of the disputed information, or delete the item from the file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer.
The following are laws most commonly referenced during the credit repair process:
The Fair Credit Reporting Act (FCRA) tells the credit bureaus what they can and can’t do. Reporting of data that is provided by creditors must be done in accordance with the guidelines under this act. With the large amount of data that is transferred between the reporting agencies and data furnishers, it is common for violations to occur. http://www.ftc.gov/os/statutes/fcra.htm
The Fair Credit Billing Act (FCBA) is a subset of the Truth in Lending Act. The Truth in Lending Act is the law that governs creditor’s actions and behaviors. http://www.ftc.gov/os/statutes/fcb/fcb.pdf
The FCBA is not a commonly used law in the credit industry. Utilization of this law might not be common, but when it is properly used, it is an extremely effective tactic. The Fair Credit Billing Act is used to force original creditors to validate debts and provide additional documentation to substantiate their data reporting.
The Fair Debt Collections Practices Act (FDCPA) regulates debt collectors. The Fair Debt Collection Practices Act has provided clear rules that debt collectors must follow when attempting to collect a debt. The rules are not well known by consumers, and collectors often fail to abide by the required rules. Enforcement of a consumer’s rights under this act proves to be another useful tactic in credit repair.http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
The New York State Credit Services Business Law This is the Law that Governs Credit Repair Companies based in New York State (see section 3):http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=@PLGBS0A28-BB+&LIST=LAW+&BROWSER=EXPLORER+&TOKEN=04203863+&TARGET=VIEW
Credit Repair Organization Act (CROA) This is the Law that Governs Credit Repair Companies. Title IV of the Consumer Credit Protection Act (Public Law 90-321, 82 Stat. 164) is amended to read as follows (see section 3): http://www.ftc.gov/os/statutes/croa/croa.shtm
