Many wonder if it’s unethical to attempt to remove valid bad credit.
The credit-ranking system has been unfair to American consumers. “Credit repair” is a term that has gained a negative reputation, and has been connected with fraud. As a result, we’re often put in the position of having to defend our efforts to help others repair their credit.
What can feel like credit prison does have alternatives to the problems contaminating the credit report. A credit report should not be viewed as proof of bad credit, simply as an allegation; consumers rarely challenge the allegation. Our clients that we assist with this basically are entering a plea of not guilty when they sign on to use our preferred attorney network for their defense.
Our preferred attorneys put the credit bureaus in the position of having to prove their allegations. If the bureaus say they have already looked into and confirmed the charge then the decision is appealed. We discover eventually that most credit report allegations are falsely based, and at that point they are removed. It is ethically sound, to remove the record of a negative credit item.
Our society has its roots in capitalism and the credit bureaus use consumer information to their advantage. Our legal system takes an oath to truth, equity and the common good; credit bureaus do not take this oath. Why should any citizen be obliged to support any company, let alone massive public corporations, when doing so could ruin his credit and financial standing? The credit bureaus would cling to every bit of credit data, true or false, forever if federal laws didn’t force them to delete many items after seven years’ time. If it weren’t for this law, credit bureaus would not have to remove most items from your report after seven years. If you can remove credit accounts in good standing after a short period time, then why can’t you remove them before the seven-year limitation?
The impact on consumers is not an interest of the credit bureaus. Profit margins – not consumer rights – are the key guides for their judgment.
You cannot always judge someone’s credit worthiness from their credit history. It damages everyone to have good people tagged as deadbeats. Many policies and approaches used by credit bureaus seem to be abusive to the customer. Due to this, we strongly oppose the current system of credit reporting. The debtor is punished unjustly with seven years credit bondage (10 years for bankruptcy and some court decisions). Credit bureaus have never performed a study determining that seven years is the time it takes to restore good credit. This seven-year mark is completely arbitrary. As a matter of fact, according to Dr. Bonnie Guttion, consumer affairs advisor to President Bush, computer models that predict credit information find that “most information that is more than two years old is nonessential”; in addition, our clients feel that seven years is much too long. Within a couple of years, most consumers are able to recover fully from a financial crisis. Despite this, they are often forced to live a reduced life-style and pay high interest on loans while being denied credit based on these reports.
Although credit bureaus claim an error rate of less than 1%, that isn’t necessarily true. However, studies not performed by the bureaus show that mistakes occur at a rate much closer to 79%.
One credit bureau admits to an error rate of more than 50%.
The credit agencies strongly resist the correction of these errors. It is very costly for them, taking up time and money. Bottom line, credit bureaus make their money selling your credit information. A pool of information this large is not culled by anyone but them. No one respecting privacy can win. Mistakes on credit reports can have disastrous results, including the loss of jobs and reputations.
There has recently been a large number of the worst type of file errors, mis-merges. These show the need for a large-scale update of the US credit reporting system. A mis-merge adds another person’s information to the wrong file.
Consumer credit reporting systems are not exclusive to America, as they are used in other countries. Most countries base their credit on current credit status. For example, in England, Equifax and Experian are not allowed to keep credit information for more than five years. The American credit reporting system needs revision. It’s not unpatriotic to want to ensure your credit report is accurate. It is NOT wrong or without any values.
Our clients are consumers who have completely rallied from a hardship, and are excited to return to the credit economy and be fiscally trustworthy. Our goal is to help consumers escape predatory lenders.
Bad credit costs a person thousands of dollars and forces many into a vicious cycle where it’s difficult to escape this punishment. Most people restore their credit to refinance, or to buy “twice the home value” at nearly the same payment. For those who have credit problems paying off someone else’s mortgage is hard for them to do. Many renters have paid off someone else’s mortgage, but still cannot own their own home because of credit problems.
Sadly, even one negative item on your report can have far more impact than a lifetime of good credit. It leaves the unlucky consumers no option but to live in neighborhoods that do not have such a good reputation.
Steve Baker, president of First Financial Freedom Foundation, specializes in helping release his clients from the “credit prison” that too many people find themselves in. When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 615-826-4011 or at sbaker@CreditRestorePros.com.
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