Credit Restoration – Using Section 609 of the Fair Credit Reporting Act to Restore Credit A simple, relatively unknown but proven legal strategy can be implemented to raise credit scores 60 to 120 points. Take notice of 609(c) (2) (E): "A consumer reporting agency is not required to remove accurate derogatory information from a consumer's file, unless the information is outdated under section 605 or cannot be verified." If accurate derogatory information in the consumer's file cannot be verified, the reporting agency is required to remove it. This law requires every company that reports credit events, not just the original creditor companies, to be able to produce verifiable proof of the negative event. It holds the credit reporting agencies accountable for the negative information they pass on. This is obviously related to the right of debtors to challenge the accuracy of negative events reported on them. The intent of the government was to protect debtors from having inaccurate information used against them. The burden of proof is not entirely on the original creditors. All parties reporting this data are responsible for its accuracy. The companies that report credit events, besides the original creditors, are the credit bureaus; principally Experian, Equifax and TransUnion. Did they maintain verifiable records of people's debts? I started challenging the credit bureaus to verify the negative credit events in the credit reports of clients by producing a copy of the Original Creditor's Documentation. He did not challenge the accuracy of these events, just used a legal strategy to challenge the credit bureaus ability to verify their accuracy. In effect, he used Section 609 of the law to demand the credit bureaus justify their reporting. If they couldn't verify the data, they had no right to continue to maintain it on their credit reports. The credit bureaus began to comply. They removed the negative events from the credit records. The credit reporting agencies don't maintain original document records of credit applications and events. They don't have a signature on a Visa card application. They don't have a signature on a car loan application. They don't have a signature on a bankruptcy filing. All they have are electronic blips in their databases. They simply accept what the creditors have reported to them about debtors. Even though the debtor knows it's accurate, the credit bureaus do not. They can't verify the accuracy of a single piece of data in their database. The credit bureaus are regulated by the government due to the nature of their business, but it's important to understand they are private companies. They are not legally or morally obligated to report anything on anyone. For example, most people know that most negative events remain on a credit report for seven years (ten years for Chapter 7 bankruptcies). This is not a legal requirement. In fact, they could take all bankruptcies off all records tomorrow, if they chose to. They are simply not allowed by law to report these events for more than seven years (or ten). They're not forced to report them at all. Of course, it's their business. That's why they do it. But they have a choice and when forced to verify the data they report they will choose to take negative events off. Essentially, credit restoration doesn't eliminate negative credit events. It does make them in effect "invisible" to anyone looking at a credit report and this of course is reflected in the credit score.
The Fair Credit Reporting Act can be viewed at http://www.ftc.gov/os/statutes/031224fcra.p Under section 609 (Consumer Disclosure Section) of the FCRA (Fair Credit Reporting Act) we simply petition the CREDIT BUREAUS (Equifax, Experian & Trans Union) to provide documented PROOF of the account that is being challenged. That proof would include….any document on the letterhead of the business challenged with your signature affixed to the bottom verifying the account was indeed yours. Without this very important piece of verifiable proof it is illegal for the credit bureaus to post your very private financial information on a public document. Verification of the account would allow them to post that account on the credit report. YOUR BENEFIT…… The credit bureaus have not been able to provide a SINGLE piece of verifiable proof. The credit bureaus have every ability to collect a copy of the original document, but they simply don’t. Who else out there is challenging the section of law regarding the possession of such documents? No one. We are not considered a threat to the credit bureaus and therefore, they will and have not been forced by Congress or any other Consumer Advocacy Group to change their reporting habits. At first it was a matter of storage ( microfiche )…..now it is a matter of simply doing business as it has been done since 1972.As far as not being able to obtain the document…..they could but the CREDITOR pays the CREDIT BUREAU to report the activity of each client. It would cost the CREDITOR more money to facilitate this request from the bureau when it should have been done in the beginning. You begin to have more people asking why the documentation wasn’t supposed to be presented in the first place….and the credit bureaus don’t want that! The Promotional Suppression stops the Credit Bureau from selling your information to marketing firms that would pull your credit. The CREDIT FRAUD ALERT actually stops someone from pulling your credit without first contacting the client for permission to do so. This is automatically done to protect every client and is not taught anywhere else. The old fashion way typically involves the CLIENT writing letters to creditors reporting information and attempting to prove you did not make a late payment, or that the information being reported is somehow inaccurate, or misleading. They require the client to provide the information they need to assist in the dispute process, which can be time consuming and a nerve wracking experience for the client. Traditional Credit Repair is a lengthy and expensive process which often fails to deliver what has been promised to the customer. Because credit repair companies must, by law, charge a start up fee and then charge a monthly fee it is in the credit repair companies best financial interest to draw the process out as long as possible. We do not do this! Traditional Credit Repair is often successful after having some items removed, only to have it re-reported later. This type of Credit Repair cannot delete ALL types of negative information from a credit report, and therefore, may not have the desired outcome. Our Credit consulting method, deals directly with the credit bureaus; we do not write letters to creditors or ask that information be changed or modified to improve a credit score. Instead, we assist our clients in disputing the credit bureaus legal right to report our private financial information. We force the credit bureaus to comply with the FCRA, by making them produce verifiable proof they can legally report your private financial information. This means the credit bureaus MUST have a copy of an original document with your signature on it. If the credit bureaus do not remove or change an item they are reporting to current paid as agreed once they cannot produce a document with your signature on it, they are in violation of federal law and subject themselves to a $1,000.00 fine for each item they report. It matters not how accurate the information may be. If the credit bureau cannot provide documentation with your signature on it, they cannot legally report that information. There are NO negative items which cannot legally be removed from a credit report if the credit bureaus cannot, or will not provide verifiable proof that the item reported is yours. True Credit Restoration is permanent and the information, once removed or changed, cannot be re-reported without penalty for reporting information the credit bureau KNOWS they do not have the documentation for. When compared side by side, our credit consulting system is much more economical and effective than ANY credit repair system. We have a proven system which has an astoundingly successful deletion rate. No other company can come close to our numbers.