Debt Collection Consolidation and Settlement

Credit Repair Series (3 of 3): Credit Repair Agencies

By: CameronPassmore 

In Part 2 of our series, we covered how to identify and correct inaccurate information on credit reports. In Part 3, we will discuss the businesses that offer these services professionally: credit repair agencies.

Overview and Concerns
A “credit services organization” (or agency) is defined under Colorado law as, “any person, including a nonprofit organization exempt from taxation under section 501 (c) (3) of the federal “Internal Revenue Code of 1986″, who, with respect to the extension of credit by others, represents that such person can or will, in return for the payment of money or other valuable consideration by the buyer, improve or attempt to improve a buyer’s credit record, history, or rating.” CRS § 12-14.5-103(2). It should be noted that attorneys acting in their normal capacity are excepted from this definition.

Not only has the State of Colorado taken the time to define this occupation legally, but an entire series of laws (known as the Colorado Credit Services Organization Act, CRS § 12-14.5-101, et seq.) has been written with an eye to protect consumers. The state legislature has summarized their concerns, “[c]ertain advertising and business practices of some credit services organizations have worked a financial hardship upon the people of this state, often those who are of limited economic means and inexperienced in credit matters. Credit services organizations have significant impact upon the economy and well-being of this state and its people.” CRS § 12-14.5-102(1)(b).

The savvy consumer should be aware that bad actors are present within the field of credit repair. At a minimum, remember that nobody can promise results. Other things to look out for include: payment up-front, offers such as “guarantee plans,” agencies that sell advice, etc. Most of the time when a credit report contains an inaccuracy, a savvy consumer will be able to address the issue themselves, provided they are willing to see the process through to its end.

Complex Matters
This series has been aimed at educating consumers on how to obtain their credit report and how to challenge inaccurate credit report information. A great deal of the time, a credit repair agency will not be able to offer you anything you cannot get for yourself. That said, every credit situation is different, and complex issues can arise regarding liens, taxes, and collection actions. If the credit repair task ahead of you is complex, credit repair agencies do have the benefit of repetition, and a reputable agency is one possible way to resolve complex issues.

Selecting a credit repair agency, should you decide you need one, is beyond the scope of this series. However, at minimum, savvy consumers should use the usual due diligence before selecting anyone to help them with any financial issue. A partial list of research tools appears below:

Google

(you can search business reviews in the Google Local section of your Google+ account)

Better Business Bureau

Do your homework before contacting an agency: the last thing your credit horror story needs is a sequel. In the end, remember that when it comes to credit repair you will always be your primary advocate. Stay credit vigilant, and good luck.

Know Your Coverage

By: CarmenFeldman 

The Affordable Care Act, which has  sometimes been referred to as Obamacare, added some rights and protections which allow consumers of health care to more easily understand their health plan’s coverage. Every health plan must now provide a summary of benefits and coverage (SBC). This document must be written in plain language and must be easy-to-understand. Here is an example of what an SBC looks like. As you can see, the document not only breaks down the amount of co-pays you will have to pay for various treatments, but also gives you coverage examples.

The idea behind the SBC is to create a standard document which allows you to compare health plans as you are shopping for coverage on the exchange. However, it is also a great tool to have when you are trying to prepare yourself for your next doctor’s visit. No matter if you bought insurance on the exchange, or already have insurance through your employer, every health plan has to provide a SBC. You can ask your insurance company for a copy at any time. Along with the SBC, your insurance company will also be able to provide you with a uniform glossary of all the terms you will come across in the SBC- to make understanding it a little easier.

If you are nevertheless struggling with understanding your coverage, call your insurance company customer helpline!

Credit Repair Series (1 of 3): How to Obtain a Credit Report for Free

By: CameronPassmore

Learning that your credit rating has slipped can send you into a panic. Our credit ratings are our reputations, financially, after all. It is a thing we own, like our cars or our homes. Thus, waking up one morning to learn our credit ratings have been damaged can be unnerving to say the least.

What’s more, while a leaky roof or a dented door is easy enough to understand, who really knows where all these credit numbers come from, anyways? They just seem to manifest themselves. And, if you are among the many who do not understand the intricate workings of credit scores, know that you are in good company (the author of this blog post has limited knowledge at best).

The problem is that this great unknown “credit thing,” combined with the feeling of loss associated with a credit downgrade, can lead to rash behavior. Or at the very least a sort of dependance on institutions who claim to know the game, and promise to make it all better…. for a price. But there is hope: you do not need to know how credit scores are formed to know what you might do about your own.

Credit Service Organizations have No Special Powers

These organizations check, and attempt  (more on this in Part 2) to repair your credit for you. But they ultimately can do nothing you couldn’t do yourself… for close to free.

Step One: Get Your Report

You obviously need the whole story before you will know how to proceed. Colorado law requires that credit bureaus provide you with one free credit report a year, upon request. There are services on the internet that will pull such reports for you, but they are always looking to offer something more. To save time and possibly money, send the request directly. The three major bureaus are:

Equifax: PO Box 740241; Atlanta GA 30374; (800) 685-1111; www.equifax.com

Experian: PO Box 949; Allen TX; 75013; (888) 397-3742; www.experian.com

Trans Union: PO Box 6790; Fullerton, CA 92834; (877) 322-8228; www.transunion.com

It should be noted that these bureaus will request personal data before they will send a report. This includes your social security number. But rest easy: most, if not all, of the information they will want they already have. The purpose of requesting it is to make certain you are who you say you are. Identify theft can only further damage your credit: don’t be afraid to provide the necessary info, this keeps us safe.

Not only may you obtain a report once a year for free, but if you are denied credit the creditor must give you the name and address of the bureau that supplied the report upon which the decision was made (it will most probably be one of the three above). If you contact them within 60 days, you may receive a copy of that report for free.

Once you receive your credit report you can begin to repair to to the extent possible. This will be covered in part two of our series on credit repair.