CREDIT REPAIR

One of the things people are faced with is bad credit. It comes from several things, people don't pay their bills on time. (Now there is a revelation for you). Consumers get more credit then they can pay for as the creditors simply take their chances that people who probably won't pay will pay. Consumers are victimized by creditors who simply will not communicate with them concerning legitimate complaints and problems. Creditors can put things on your report and have no risk of any legitimate discipline even if the item is wrong. Creditors see mortgage lenders as collectors and will keep bad trade lines current so they may get paid. And finally medical bills that are unpaid go on reports quickly against the consumer even if the insurance company was supposed to pay. There are a lot more trust me.

Recently we made a loan to a builder friend of mine and required him to pay off some medical collections that he said were in fact his. He had been given no notice of the ourstanding bills and was happy to pay them. The problem was he could not find the people to pay. The item had been factored (sold) to a collection agency who could not be found. Think about it we required him to pay, he said he would but could not even though he wanted too. Pretty stupid stuff if you think about it.

In our something for nothing culture many so called credit repair companies have cropped up. They offer a fix to your credit woes by a number of legitimate or not so legitimate solutions. They charge plenty and may be a fraud or may not be. If you pay one that is a fraud you will not see them, hear from them or get your money back. To my knowledge there is no enforced law that would prohibit them from false advertising so guess what you are the victim. It is hard to tell the difference. We have a company that is not affiliated with us that we refer people too and they seem to be honest and get results when employeed. It takes a long time, form 6 to 12 months and it is not easy or cheap. They have to fight the creditors to remove the items that are in error or they can't prove were reported correctly. Creditors have no real interest in helping you fix your credit even if they are wrong. Back to the no ethics in business I talk so much about.

Below is a fairly good article that talks about credit repair that is worth looking at. Now that all the loans are pretty much gone that will allow bad credit this seems to be coming on as the new thing even though it has been around for awhile now. It is a new type of fraud in the wrong hands so watch out.

http://www.nytimes.com/2008/01/19/business/yourmoney/19money.html?ref=yourmoney

If you are going to pay someone to fix your credit beware there are plenty of bad people out there ready to extract your money from you and deliver nothing.

More to come

Lonny