Debt validation - Credit repair - Posted by michaela-CA
Posted by michaela-CA on April 22, 2007 at 22:24:43:
Since I hadn?t been on this site for quite a while, I thought I?d throw this out here for anybody that may need this for themselves or for buyers, how hav ea difficult time getting approved, due to their credit.
There are ways to legally get rid of a number of trade lines, that report negatively on your reports, and which will then improve your credit scores. There are several types of accounts being reported: Original creditor, Debt collector , medical collection, student loans. I don?t know much about medical and student loans, so I will only write about the first 2.
Original creditors and the Credit Reporting Agencies are ruled by the Fair Credit Reporting Act - Fcra
Debt Collectors, who are assigned the debt by the Original Creditor have to follow the Fair Debt Collection Practices Act - Fdcpa
Go through your reports and determine which each of the negative trade lines is.
Debt Collectors are the easiest to get rid of through Debt Validation. You, as the consumer, have the right to request a Debt Validation from the DC. For example, ask for copies of the original contract with your signature and a notarized statement from an employee directly involved
In getting that debt. Since these are not the original creditors (OC) they do not have that documentation. By law, they have to provide you with validation within 30 days or they will have to stop reporting the trade line to the Credit Reporting Agencies.
Original Creditors can be asked for a validation as well, but they?re not bound to give it, unless it?s in the first 30 days of receiving notification. they?re more difficult to deal with
There?s something called a 1-2 punch, which works for both OC and DC: send them a letter, asking for validation, Certified return receipt requested. Follow up on www.usps.com and once you see confirmation, that the
Letter has been received, send a letter to the Credit bureaus, disputing the item. The OC and DC are not allowed to verify to the CRA, while an item is in dispute. And if they don?t respond to the CRA within 30 days, then the CRA has to delete the trade line off the report.
If they?re in violation, then you can inform them of this and that there?s a $ 1,000 fine for each violation. That will wake some of those up, that haven?t validated and are still reporting.
Once there are violations, then a complaint to the BBB can help wonders. Or a complaint to the Attorney General.
There’s lots more good information at the credit forum at www.creditboards.com and at www.creditinfocenter.com
(those sites are free and I’m not affiliated with them)