Many people who have problems with their credit file don’t know where to turn or where to get help.
The great news is many negative credit listings can be removed from a credit file, like they never existed so the next time that person applies for credit the listing will not show and the credit provider will judge that persons credit worthiness as if the listing never existed.
The key to effective credit repair and how people can fix their credit file is based on the law. What many people don’t know is prior to a credit provider listing a negative credit listing such as a payment default they must follow a very strict legal process, it is this process that is the key to repairing a credit file.
Even though this process is documented in legislation such as the Privacy Act and the National Consumer Credit Protection Act it is common for credit providers to make errors when entering a negative credit listing. This does not mean the consumer may not owe money or may have been late making a payment, what I am referring to the process the credit provider followed before they listed the event with the credit reporting agencies.
For instance, in most cases a debt must be at least 60 days in arrears before a default can be reported. A correctly structured demand notice giving at least 30 days to pay must be mailed to the client at their last known address. This demand notice is a critical document and must comply with the legislation. This notice must state the amount owed, the date that the payment must be made by and that recovery action may commence if payment is not made. Prior conversations people may have had with the credit provider is also highly relevant as if there was any reference to hardship then a number of other laws may apply such as the Banking Code of Practice.
If it can be shown that a credit provider did not follow the required process before the listing a negative credit listing in many cases the offending credit record can be deleted.
A breach of this process does not need to be large, even a small error such as a date or amount inconstancy is often enough to force the removal of the listing.
The key to effective credit repair is having an in-depth knowledge of the laws surrounding credit reporting and how to apply them to the credit listing and process a credit provider followed.
While some people hold this knowledge for the most part there are few that have a solid understanding of credit reporting law and for this reason consulting an expert this this area can make good sense for someone wanting to restore their credit rating.
If you have a problem with your credit file and are asking the question, Can I fix my credit, with the right help the answer in many cases is yes.