Ethical Credit Repair
An Ethical Perspective: Is it Ethical to Remove a Negative Credit Listing?
The question “should I help my client restore their credit rating?” is a highly contested one.
From a credit provider’s perspective, there are understandable concerns. The removal of a negative credit listing could be viewed as an attempt to mask the applicant’s true financial position and not allow them to apply an appropriate risk rating. Certainly these concerns are founded if the credit listing in question is genuine in nature and therefore a true and accurate reflection of the credit worthiness of the applicant. However what about a faulty, incorrect or just plain unfair listing?
As it is appropriate for a credit provider to score an applicant on a genuine negative credit listing, it cannot be appropriate to judge in the same way when the listing is incorrect. To do so would be the same as throwing the applicant in prison even though they did not commit a crime. Of course, credit providers cannot be expected to trawl through credit listings in an attempt to work out what is and is not correct. They can only react to the information they are given and apply a risk rating accordingly.
An Ethical Perspective: Credit Repair and the Credit Industry
Some credit providers and credit reporting agencies have been highly critical of companies offering credit restoration services. We are the first to admit that not all credit repair companies operate in an ethical fashion, which is regrettable. This has no doubt contributed to the negative sentiment around credit repair. Unlike these other companies, Clean Credit is proud of its transparent approach and high success rate. We focus on negative credit listings that have been processed incorrectly. These said listings are unfair as they are either completely incorrect, are are filled with faulty information or were marked in a way that did not give the client enough time to react. Clean Credit’s credit repair focuses on helping people who are have been a victim to incorrect negative listings.
An Ethical Perspective: The Credit Reporting System in Australia
The credit reporting system has not been kind to the Australian consumer. In today’s tight financial market, even one small negative credit listing has the potential to affect someone’s ability to obtain credit for years. In fact, a simple misunderstanding with a phone carrier can lead to a default listing that will be recorded for up to five years. To think that someone could struggle with getting a home loan due to something that potentially happened years earlier doesn’t seem appropriate, nor is it necessarily a reflection of their current financial position. The question “does the punishment suite the crime?” must be asked.
Just as if you were in court being convicted of a crime you didn’t commit, people deserve the option to plead “not guilty”. Defending your rights with regard to an incorrect credit listing is no different.
In many ways a negative credit listing is no more than an allegation. Most consumers never challenge that allegation and suffer, sometimes unnecessarily for years as a result. Given the listing is incorrect, the consumer has every right to take an affirmative defence and insist the listing party substantiate their allegation.
Credit history information often misrepresents the credit worthiness of the consumer. When a credit provider inappropriately labels someone as not credit worthy, they damage everyone: the credit reporting agencies, the economy and most importantly the individual.
With these points in mind, the removal of a genuinely contestable negative credit item is without doubt, ethically sound.
Clean Credit is proud to help people remove incorrect negative listings from their credit file that are wrongfully affecting their lives. Through our highly successful credit repair service, we can help you improve your credit rating and move on with your life.
Take your first steps towards restoring your credit rating and improving your credit score.