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CreditTechnologi
478 Posts |
 Posted - 06/07/2008 : 06:22:00 AM
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Never Pay In Advance To Fix Your Credit
By Kenneth R. Harney, Washington Post Syndicated Columnist - Saturday, June 7, 2008
http://www.washingtonpost.com/wp-dyn/content/article/2008/06/06/AR2008060600046.html
Picture this: You're eager to take advantage of today's troubled real estate market and buy a foreclosed house at a fire-sale price. But you don't have much money for a down payment. And your credit files are scuffed up with late payments.
What you need is a service that can help put it all together -- linking you into lists of available foreclosures, credit repair and even low-down-payment mortgage financing.
Companies that promise to do at least some of these things -- especially to fix your credit -- sell themselves aggressively on the Internet. But can they really do what they claim? Based on a recent settlement by the Federal Trade Commission, the only conclusion is: If the deal involves paying money upfront, don't do it.
According to a complaint the FTC filed in U.S. District Court in New York, the Home Buyers Consulting Network of Raleigh promised would-be buyers that it could raise their credit scores by 50 to 100 points, help them locate foreclosed houses through a network of participating agents, and connect them with low-cost mortgage money to complete the deal.
Through online and telephone pitches, Home Buyers Consulting Network and its affiliated firms -- GoodCredit.com, the Good Credit Co. and 0DownHomeBuyers.com -- allegedly guaranteed clients that they could "remove accurate, negative information from [their] credit reports permanently, including bankruptcies and past due bills," according to the FTC's complaint. Sales representatives allegedly claimed they could remove bankruptcies from the national credit bureau files and public records.
For their services, the companies typically requested an initial payment of $99 for credit repairs and $399 for credit and home-buying "consulting" services. The client also had to agree to a minimum contract period -- anywhere from six to 12 months -- and make weekly or monthly payments of $19 to $49. The companies promised to refund all money except $99 if the customer was not satisfied.
After consumer complaints and an investigation in cooperation with North Carolina authorities, the FTC filed suit against Home Buyers Consulting Network and its chief executive, Douglas Andersen Moore, for allegedly violating federal credit and consumer protection statutes.
Among the claims:
· Home Buyers Consulting Network and its affiliates falsely promised clients that they could scrub credit records of even the most severely negative information, even though they were not able to do so when the information was "accurate and not obsolete."
· The companies required payment before performing their credit services -- a violation of the federal Credit Repair Organizations Act. The companies also allegedly failed to include mandatory disclosures of consumers' rights to cancel their contracts without penalty within three business days of signing agreements, also in violation of federal law.
In a settlement with the FTC in late May, neither Moore nor the Home Buyers Consulting Network admitted wrongdoing, but they agreed to stop "using any untrue or misleading statements" to pull in customers looking for credit fixes, as well as to cease collecting money upfront for credit-repair services, and to provide the full disclosures to clients required by federal law.
The settlement imposed a $573,000 civil penalty and a $40,000 restitution of funds to customers. However, when Moore and his companies provided documentation that they were financially unable to pay the penalties, the FTC agreed to suspend all but $10,000 of restitution to customers. As part of the settlement, Moore agreed to intensive monitoring of his business practices.
William I. Rothbard, the defendants' attorney, noted that the agreement "does not prohibit" Moore from further involvement in credit, real estate or mortgage activities, and that "he is moving forward."
What's the significance of the settlement for buyers who need to boost their credit scores to qualify for a mortgage in today's tougher underwriting environment?
If the problems in your credit files reflect actual late payments, nonpayments, charge-offs, court judgments, tax liens or foreclosures, don't look for magic or miracles. No legitimate "repair" service -- no matter how much you pay -- can make them disappear permanently.
Most serious credit issues are likely to remain in your files for three to seven years, and bankruptcies and foreclosures for as much as a decade. Tax liens sometimes remain on your records until they're paid.
However, it's different if your credit files contain erroneous information. Either you or an organization that specializes in credit assistance can contact the sources of the bad information and get it corrected on your national bureau files.
But under no circumstances should you pay upfront for credit-repair services. If a company requires you to do so, file a complaint with the FTC at http://www.ftc.gov.
Kenneth R. Harney's e-mail address is KenHarney@earthlink.net.
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Brianquigley
1773 Posts |
Posted - 06/07/2008 : 10:36:15 AM
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I disagree with you. Sorry. My source has been helping my clients for 4 years, and I do not have one complaint from the up front fee.
I will tell you he charges $250 for a single person, and $500 for a couple, and he gets the job done.
You should avoid monthly fees, because bogus companies will hang you out to dry, disputing maybe 1-2 tradelines a month. It could take forever to see results with that.
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CreditTechnologi
478 Posts |
Posted - 06/07/2008 : 10:57:28 AM
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quote:
Originally posted by Brianquigley
I disagree with you. Sorry. My source has been helping my clients for 4 years, and I do not have one complaint from the up front fee.
I will tell you he charges $250 for a single person, and $500 for a couple, and he gets the job done.
You should avoid monthly fees, because bogus companies will hang you out to dry, disputing maybe 1-2 tradelines a month. It could take forever to see results with that.
Brian,
The problem is, as you describe it above their practice appears to be a violation of Federal law...
Credit Repair Organizations Act - Public Law 90-321, 82 Stat. 164 “404. Prohibited practices. b) Payment in Advance.-- No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.”
The entire text of the CROA is available at http://www.ftc.gov/os/statutes/croa/croa.shtm
There are some exemptions such as non-profit entities. Aren't you concerned about referring your clients to an entity violating Federal law?
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Brianquigley
1773 Posts |
Posted - 06/07/2008 : 11:04:00 AM
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| I will speak with his company on Monday and report back to the post my findings on how his company is set up |
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hpmfinancial
1471 Posts |
Posted - 06/07/2008 : 12:50:10 PM
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| Brian, if your company provides a service, then charges for it they are not in violation of the Federal Law. Thomas decided to pick an article written on one company in order to make a broad generality that all companies are bad. There are ways to do this legally, notice Thomas has never spoken highly of a credit repair company, as he loves those rapid rescores that are a major ripoff. |
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CreditTechnologi
478 Posts |
Posted - 06/07/2008 : 1:49:44 PM
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quote:
Originally posted by hpmfinancial
Brian, if your company provides a service, then charges for it they are not in violation of the Federal Law. Thomas decided to pick an article written on one company in order to make a broad generality that all companies are bad. There are ways to do this legally, notice Thomas has never spoken highly of a credit repair company, as he loves those rapid rescores that are a major ripoff.
Brian indicated his clients were paying $200/$500 up front, hence my reply.
Consumers can correct most errors on their credit files at no cost without paying a credit repair company, or for rescoring services. Disputes can be handled online, via the phone or by mail and can be completed in as little as a few days - all at no cost whatsoever.
The step-by-step is provided in the Brokers Outpost Training Section at http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=224767
It should be noted that although hpmfinancial is listed as a "Mortgage Agent", in reality he represents a credit repair company.
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hpmfinancial
1471 Posts |
Posted - 06/07/2008 : 3:32:20 PM
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quote:
Originally posted by CreditTechnologies
quote:
Originally posted by hpmfinancial
Brian, if your company provides a service, then charges for it they are not in violation of the Federal Law. Thomas decided to pick an article written on one company in order to make a broad generality that all companies are bad. There are ways to do this legally, notice Thomas has never spoken highly of a credit repair company, as he loves those rapid rescores that are a major ripoff.
Brian indicated his clients were paying $200/$500 up front, hence my reply.
Consumers can correct most errors on their credit files at no cost without paying a credit repair company, or for rescoring services. Disputes can be handled online, via the phone or by mail and can be completed in as little as a few days - all at no cost whatsoever.
The step-by-step is provided in the Brokers Outpost Training Section at http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=224767
It should be noted that although hpmfinancial is listed as a "Mortgage Agent", in reality he represents a credit repair company.
You are incorrect Thomas, most customers are unable to fix their credit due to the illegal methods the bureaus use. That is why the CREDIT BUREAUS HAVE BEEN FINED MILLIONS OF DOLLARS.
Hey captian obvious, thank you for pointing out that I am a credit repair representitive instead of a mortgage broker. This was an error that was made during the sign up process, I have e-mailed Darin as well as called the Brokers Outpost to get this changed, it has not happened yet.
Can you please explain why the credit reports you sell have errors on more then 1 out of 4 reports? |
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CreditTechnologi
478 Posts |
Posted - 06/07/2008 : 8:01:53 PM
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I have been personally involved in the credit reporting industry, specifically serving mortgage brokers and bankers for the past 20 years and have been a participant in the Brokers Outpost since December 2005. Errors are prevalent in consumers’ credit reports and in the past, the repositories have done a less than stellar job at making it easy for consumers to correct mistakes.
You no doubt see advertisements from myriad credit repair companies touting how many items they were able to get deleted from a consumers file. Assuming for a moment that these claims are true (a big assumption) what they fail to mention is this...
Had the consumer simply followed the dispute process online, via telephone or mail, they would have had the same or better response than that provided by any for-fee credit repair provider, faster and at absolutely no cost.
The Federal government by way of the FACT Act is forcing the repositories to handle these disputes faster including making available live customer service staff via a toll free call. Why would any consumer, especially those in a tough financial position pay anyone to do what they can do themselves faster and at no cost? The answer is they simply don’t know any better. Misinformation (examples of same abound in the brokers outpost) result in consumers believing they cannot correct mistakes without paying someone else to do it. In fact, any consumer can correct errors faster than any credit repair company, and at absolutely no cost. Through www.AnnualCreditReport.com – anyone can obtain copies of their credit files and then dispute any errors found either online, by phone or by mail – all at no cost.
Think about it, what is the magic that credit repair companies claim to possess - what do they actually do to make all these negative items magically disappear? They charge consumers hundreds of dollars to mail form letter disputing any negative items on their credit report without regard as to whether the items occurred or not, or even if it will have an impact on the consumers FICO score. They then continue sending off letters with the hopes some of the items might end up being deleted.
We all acknowledge that inflating a borrower’s income or lying about owner-occupancy is illegal. Why then are so many willing to do whatever is necessary to artificially inflate their credit standing with seemingly little concern as to the outcome. How is paying a credit repair company to hopefully remove negative items from a consumers credit file (even though the items actually occurred) any different than lying about other facets of the consumer credit worthiness?
I make no excuses for the problems inherent within the credit reporting industry, except to say that the bureaus report what is reported to them, or what is gleaned from public records. The creditors themselves (especially collection agencies) bear much of the blame for what is wrong within the credit reporting system.
Credit repair companies can provide a valuable service, especially for those consumers without the time, or patience to dispute items themselves but beware; the overwhelming majority are little more than “snake oil” salesmen preying on consumers who are often the least able to afford it.
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hpmfinancial
1471 Posts |
Posted - 06/07/2008 : 10:04:53 PM
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quote:
Originally posted by CreditTechnologies
I have been personally involved in the credit reporting industry, specifically serving mortgage brokers and bankers for the past 20 years and have been a participant in the Brokers Outpost since December 2005. Errors are prevalent in consumers’ credit reports and the repositories have done less than a stellar job at making it easy for consumers to correct mistakes.
So you admit that working with the bureaus is difficult, at least we agree on something.
quote:
Originally posted by CreditTechnologies
You no doubt see advertisements from myriad credit repair companies touting how many items they were able to get deleted from a consumers file. Assuming for a moment that these claims are true (a big assumption) what they fail to mention is this...
Had the consumer simply followed the dispute process online, via telephone or mail, they would have had the same or better response than that provided by any for-fee credit repair provider, faster and at absolutely no cost.
You just said that the credit bureaus are not easy to work with, if they were, credit repair companies would not exist. Consumers hire us as they know how difficult it is to work with these corrupt organizations.
quote:
Originally posted by CreditTechnologies
The Federal government by way of the FACT Act is forcing the repositories to handle these disputes faster including making available live customer service staff via a toll free call. Why would any consumer, especially those in a tough financial position pay anyone to do what they can do themselves faster and at no cost? The answer is they simply don’t know any better. Misinformation (examples of same abound in the brokers outpost) result in consumers believing they cannot correct mistakes without paying someone else to do it. In fact, any consumer can correct errors faster than any credit repair company, and at absolutely no cost. Through www.AnnualCreditReport.com – anyone can obtain copies of their credit files and then dispute any errors found either online, by phone or by mail – all at no cost.
Credit bureaus often times do not follow the FCRA, that is why credit bureaus are fined millions of dollars each year. Why are you assuming someone who works with credit repair is in a tough financial situation? I know many credit repair companies that only take on clients that certify that this is not creating a financial hardship. You making statements that only misinformed people sign up for credit repair truly shows how misinformed you are.
People hire landscapers as they don't have time or do not want to do landscaping. People hire Realtors as they don't have time or do not know all the ins and outs of buying a house. People hire various companies to do services for them, the reason behind that varies from person to person. Your blanket statements prove nothing except you have no idea what you are talking about.
quote:
Originally posted by CreditTechnologiesThink about it, what is the magic that credit repair companies claim to possess - what do they actually do to make all these negative items magically disappear? They charge consumers hundreds of dollars to mail form letter disputing any negative items on their credit report without regard as to whether the items occurred or not, or even if it will have an impact on the consumers FICO score. They then continue sending off letters with the hopes some of the items might end up being deleted.
We all acknowledge that inflating a borrower’s income or lying about owner-occupancy is illegal. Why then are so many willing to do whatever is necessary to artificially inflate their credit standing with seemingly little concern as to the outcome. How is paying a credit repair company to hopefully remove negative items from a consumers credit file (even though the items actually occurred) any different than lying about other facets of the consumer credit worthiness?
Per the FCRA only verified information can be placed on your credit report. Credit repair companies do not engage in fraud as you are implying, rather credit bureaus are the ones breaking the law by placing unverifiable information on credit reports. If an item is placed on a report that can not be verified or is inaccurate, then a credit repair company is here to help get those removed, just taking the bureaus to task. You do the same thing with rapid rescores, except you charge hundreds of dollars PER ITEM.
quote:
Originally posted by CreditTechnologiesI make no excuses for the problems inherent within the credit reporting industry, except to say that the bureaus report what is reported to them, or what is gleaned from public records. The creditors themselves (especially collection agencies) bear much of the blame for what is wrong within the credit reporting system.
The credit bureaus are the ones to blame as they put info on a report without verifying it. Had the bureaus had a system in place to prevent creditors from placing unverifiable info on the report in the first place, credit repair companies would not exist. Credit Bureaus permit collection agencies with a reputation of dishonesty continue to ruin peoples credit on a daily basis.
quote:
Originally posted by CreditTechnologiesCredit repair companies can provide a valuable service, especially for those consumers without the time, or patience to dispute items themselves but beware; the overwhelming majority are little more than “snake oil” salesmen preying on consumers who are often the least able to afford it.
Can you please tell us where you came up with this data? You just made some wild accusations here, where is your proof?
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khoiey
1409 Posts |
Posted - 06/07/2008 : 11:03:48 PM
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| Just go to annualcreditreport.com for a free tri-merge report. Then you are able to dispute all information you want there. I have disputed for myself on several accounts which were mine. 30 days later, some accounts were verified and some got deleted because they didn't reply back. No more bs written letters etc. |
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hpmfinancial
1471 Posts |
Posted - 06/07/2008 : 11:06:50 PM
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quote:
Originally posted by khoiey
Just go to annualcreditreport.com for a free tri-merge report. Then you are able to dispute all information you want there. I have disputed for myself on several accounts which were mine. 30 days later, some accounts were verified and some got deleted because they didn't reply back. No more bs written letters etc.
How many of those accounts were deleted? How many were not deleted? |
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khoiey
1409 Posts |
Posted - 06/07/2008 : 11:13:55 PM
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Remember, all of those accounts are all mine. 3 accounts came back not deleted because they responded back and 2 were deleted as "no respond" from creditors. Repulled my credit and now it boosted trans 28 points, equifax 60 points and experian 32 points.
I were able to update my addresses, employment information etc.
I also told my business partner to do it and it came back with similar results. His got a discharged BK 7 and about 2 of the items in BK got deleted as well. His scores were also boosted above 720.
quote:
Originally posted by hpmfinancial
quote:
Originally posted by khoiey
Just go to annualcreditreport.com for a free tri-merge report. Then you are able to dispute all information you want there. I have disputed for myself on several accounts which were mine. 30 days later, some accounts were verified and some got deleted because they didn't reply back. No more bs written letters etc.
How many of those accounts were deleted? How many were not deleted?
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hpmfinancial
1471 Posts |
Posted - 06/07/2008 : 11:14:55 PM
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quote:
Originally posted by khoiey
Remember, all of those accounts are all mine. 3 accounts came back not deleted because they responded back and 2 were deleted as "no respond" from creditors. Repulled my credit and now it boosted trans 28 points, equifax 60 points and experian 32 points.
I were able to update my addresses, employment information etc.
quote:
Originally posted by hpmfinancial
quote:
Originally posted by khoiey
Just go to annualcreditreport.com for a free tri-merge report. Then you are able to dispute all information you want there. I have disputed for myself on several accounts which were mine. 30 days later, some accounts were verified and some got deleted because they didn't reply back. No more bs written letters etc.
How many of those accounts were deleted? How many were not deleted?
How many total negative accounts do you have? |
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khoiey
1409 Posts |
Posted - 06/07/2008 : 11:16:58 PM
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Those were the negative accounts that I have. A lot of people either don't know how to start fixing their credit or slacking off like me. However, the tools are there for you to use.
quote:
Originally posted by hpmfinancial
quote:
Originally posted by khoiey
Remember, all of those accounts are all mine. 3 accounts came back not deleted because they responded back and 2 were deleted as "no respond" from creditors. Repulled my credit and now it boosted trans 28 points, equifax 60 points and experian 32 points.
I were able to update my addresses, employment information etc.
quote:
Originally posted by hpmfinancial
quote:
Originally posted by khoiey
Just go to annualcreditreport.com for a free tri-merge report. Then you are able to dispute all information you want there. I have disputed for myself on several accounts which were mine. 30 days later, some accounts were verified and some got deleted because they didn't reply back. No more bs written letters etc.
How many of those accounts were deleted? How many were not deleted?
How many total negative accounts do you have?
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johncm
470 Posts |
Posted - 06/08/2008 : 08:18:16 AM
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You know, there is a right way and a wrong way to do everything. There is always more to a story when you speak to the other side. But the facts are, CB continue to to ruin peoples credit and it is up to them to take care of blatant errors. That all by itself should be a crime. The big 3 have been fined numerous time. Why? Because they are the good guys? Please. If they did there jobs right, we would not have all these credit repair services. Most of these are just as bad, but there are a handful that actually help.
Back to the topic, the bbig three and CT claim people can repair errors themselves. While this is true, people are intimidated by the process and or give up. Or in some cases do not give up and consume their life just taking care of what should have never happened in the first place.
As long as the public keeps getting SCREWED by the big 3 scum, we will have and need a third party service. I guess the next thing will be we don't need attorney. We can fight all of the lawsuits ourselves. |
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CreditTechnologi
478 Posts |
Posted - 06/08/2008 : 08:26:13 AM
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quote:
Originally posted by hpmfinancial
Per the FCRA only verified information can be placed on your credit report. Credit repair companies do not engage in fraud as you are implying, rather credit bureaus are the ones breaking the law by placing unverifiable information on credit reports. If an item is placed on a report that can not be verified or is inaccurate, then a credit repair company is here to help get those removed, just taking the bureaus to task. You do the same thing with rapid rescores, except you charge hundreds of dollars PER ITEM.
This is incorrect. Can you show us where in the FCRA you find this? The FCRA does not require every single item reported, and then subsequently updated be verified prior to inclusion.quote:
Originally posted by hpmfinancial
quote:
Originally posted by CreditTechnologiesCredit repair companies can provide a valuable service, especially for those consumers without the time, or patience to dispute items themselves but beware; the overwhelming majority are little more than “snake oil” salesmen preying on consumers who are often the least able to afford it.
Can you please tell us where you came up with this data? You just made some wild accusations here, where is your proof?
"We've Never Seen a Legitimate Credit-Repair Operation"
Steven Baker, director of the Federal Trade Commission's Chicago regional office.
Here's what the Federal Trade Commission says about credit repair...
Credit Repair: Self Help May Be Best You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims: “Credit problems? No problem!”, “We can erase your bad credit — 100% guaranteed.”, “Create a new credit identity — legally.”, “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!” Do yourself a favor and save some money, too. Don’t believe these statements...The entire article is available on the FTC website at http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm
Here’s an interesting question - What percentage of the disputes filed by credit repair companies pertain to items that did occur? In looking at credit repair advertising, it seems they never inquire as to if the item or debt was incurred, but rather – pay us and we’ll remove these negative items from your credit report. I think there is an important distinction to be made,
I believe there is a difference between correcting errors on a consumer’s credit file and the practices of many credit repair companies promising, for a fee, to remove virtually any item including those that the consumer acknowledges did occur. For instance, lets assume that by mailing multiple dispute letters a credit repair company is able to remove a judgment, foreclosure or bankruptcy from a consumers credit file (as many claim to be able to do.) The removal of the item from the consumer’s credit report has no impact on the debt. The consumer is still liable, and all methods of collecting are still available to the debtor, including re-reporting the item to the repositories.
All that has been accomplished (often temporarily) is the consumers credit file now fails to disclose those items, and any potential lenders can be defrauded into believing the consumer has no such existing debts or derogatory payment history.
Take it to the next step. After consulting with an applicant and deciding to refer them to a credit repair provider and after having debts removed that the consumer has indicated were are in fact owing – do you then counsel the applicant not to disclose those items on the 1003 – and what about the Section VIII and IX declarations…
a. Are there any outstanding judgments against you?
b. Have you been declared bankrupt within the past 7 years?
c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.;
Do you then take the application and sign your name to it knowing full well that debts and required history has been suppressed? (After all – you referred them to the credit repair company in the first place.)
No one is arguing that errors in credit files are prevalent, and I grant you that the odds of being “caught” in the above scenario are likely slim, but does that make it any less unethical?
Does anyone else see anything wrong with this?
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htdifinancial
1557 Posts |
Posted - 06/08/2008 : 11:06:32 AM
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quote:
Originally posted by CreditTechnologies
In looking at credit repair advertising, it seems they never inquire as to if the item or debt was incurred, but rather – pay us and we’ll remove these negative items from your credit report.
That's because it's advertising. Those questions are taken care of by consultation. Why would there be items covered under consultation listed in an advertisement.
quote:
Originally posted by CreditTechnologies
Credit repair companies can provide a valuable service, especially for those consumers without the time, or patience to dispute items themselves but beware; the overwhelming majority are little more than “snake oil” salesmen preying on consumers who are often the least able to afford it.
That's why there's NACSO. Hopefully this will help the industry. |
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CreditTechnologi
478 Posts |
Posted - 06/08/2008 : 11:24:52 AM
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quote:
Originally posted by htdifinancial
quote:
Originally posted by CreditTechnologies
In looking at credit repair advertising, it seems they never inquire as to if the item or debt was incurred, but rather – pay us and we’ll remove these negative items from your credit report.
That's because it's advertising. Those questions are taken care of by consultation. Why would there be items covered under consultation listed in an advertisement.
quote:
Originally posted by CreditTechnologies
Credit repair companies can provide a valuable service, especially for those consumers without the time, or patience to dispute items themselves but beware; the overwhelming majority are little more than “snake oil” salesmen preying on consumers who are often the least able to afford it.
That's why there's NACSO. Hopefully this will help the industry.
Great points Dom,
So consumers respond to advertising believing the credit repair company can delete virtually anything negative on their file, then during a consultation, HTDI and members of NACSO learn which items they believe did not occur and/or are incorrect? So you do not dispute bankruptcies, judgements or other negative items if the consumer acknowledges they did occur simply in an attempt to obtain deletion?
Do you also require members to adhere to all applicable laws including the CROA regarding billing practices (e.g. no up-front billing?)
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htdifinancial
1557 Posts |
Posted - 06/08/2008 : 11:46:50 AM
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Regarding advertisements and what the client believes, there are HUGE variables to that. All that I can control, at HTDI for example, is what our advertising states. If a company is advertising "Remove all derogs from your credit report" that is misleading unless they follow it up "or your money back" (I still wouldn't authorize that), then the consumer would be 100% in hoping that 100% of items can be removed.
That is why it is essential to discuss with each potential client realistic expectations of service. We have lost countless deals to unknown companies that we've been told by the potential client "we were told this could be deleted, if you can't guarantee that then we'll go with ABC company". We tell them we can't guarantee the removal of any items and if it is verifiable then it won't be removed. They go with ABC company, still don't get it removed and have less than stellar results.
Also, there are all different kinds of techniques about trying to maximize client results. No law of any kind requires a negative item to be on a report for a specific period of time. It only LIMITS how long it can report. There is nothing wrong with asking a creditor or credit bureau to remove an item. If they don't want to, they don't have to by law if it is accurate.
For NACSO, we will do our best to ensure their billing is applicable. NACSO will look at many aspects of a company before approving membership applications, with the idea that it will be as close to a safe haven for consumers as possible. But even with that, there are still no guarantees.
This is why NACSO will go further than the CROA and require other items, such as submission of pictures of office, providing adequate client support options, and the option of having employees be NACSO certified which one can attain by taking an online test.
Could a company comply with everything NACSO requires and be "smoke and mirrors"? Yes, but we hope that with the rigorous application process a company would rather lie and say they were a member than go through the application process. Hopefully, and it might just be that "Hope", none of members of NACSO would do anything to discredit the industry or NACSO's standards.
But that's also why there is the NACSO complaint system, which will take complaints on all companies, members and non members, and if a NACSO member is not complying with their obligations in upholiding NACSO standards, their membership can be rescinded without refund. |
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thomasd7
69 Posts |
Posted - 06/25/2008 : 6:57:03 PM
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man what a war thats going on, Sheesh! For the record, I think everybody here has altrustic motives as well as profit motives, 9 times out of 10 you cant profit without both..
Anyone remember who said...
"It is a weak mind that first seeks to incriminate"
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