Question by Aline B: How can I pursue action against someone who stole money from me in exchange for “credit repair”?
Nearly a year ago I paid someone to repair my credit. She is licensed. I have a written contract. She has done nothing to help my credit and will not respond to email or telephone inquiries. How can I report her to state licensing agencies (Texas) and the credit bureaus?

Best answer:

Answer by My Take on It
This is the problem with those who claim (outrageously) that they can *repair your credit*. They won’t be able to remove anything derogatory that is there legally. It may come off for a month, while they investigate..but will go back on just as quick and stay there for the duration of the SOL. If you earned that bad mark, it is meant to be there for other creditors to see, so they can make an educated guess on whether you are a good risk for a loan.

If there is some sort of licensing board that oversees credit repair people, I guess you could complain to them. You could lodge a complaint with the BBB against her. Even if you tried to sue her in small claims, I highly doubt you would prevail.

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When you fail to pay a debt, after a certain amount of time it goes into “collections”. This simply means that the debtor sells the unpaid account at a discounted rate to a collection agency that specializes in collection tactics, such as calling every 10 minutes and putting a block on your bank account (yes they can do that, if a judgement is issued). Sooner or later, probably sooner, your credit report will show the collection agency and the debt amount. This is very bad for your credit. There are some options you have that you may not realize.

Erroneous Information

If the debt is not yours, then it is not legal to have it on your credit report. To handle this, just send a credit dispute letter to the credit bureaus and tell them what is going on. If the debt truly is not yours, they will find out and remove it from your credit report.

Debt Validity/Integrity

If you do have a debt with the collection agency on the report but for a different amount than reported, or if you have already paid it, then you can ask the credit bureaus to validate the debt. They will give the collection agency a set period of time, usually 30 days, to provide proof of the debt and debt amount. If they fail to do that for any reason, the debt is removed from your credit report.

Seven Years of Bad Luck Doesn’t Just Apply To Mirrors

After seven years from the date that the account went delinquent, that debt must be removed from your credit report completely, never to be reported again. Some debt collectors, being the spineless rats that they are, actually try to change the dates of the debt to make it eligible for reporting longer. This is done frequently and it is why many people see debts fifteen years old on their credit reports. They think that it can never come off, but that isn’t true. If your debt is more than seven years old, then send a dispute letter to the credit bureaus and provide proof, if you can, of the date of the delinquent account. The credit bureau will likely find out the true date and remove it.

Deletion for Sale

One option is to offer the debt collection agency a one-time payment in exchange for them deleting the record off of your credit report. They will probably say no, but keep pushing them. This is like a game to them really. They are not selling a product, they don’t create anything, they contribute absolutely nothing to society but chomping at the bit of middle class America. You must make them think that you will never, ever, make a payment on the debt. Tell them that they should take the offer now or settle for nothing. If you are persistent, they might eventually budge. They will try to get as much as they can from you. So low ball them first. Offer a ridiculously low amount, so when they come back with a counter offer it will be around the amount you truly intended on paying. Most importantly, make them send you a letter of debt dismissal and settlement. THIS IS IMPORTANT. It is your only physical proof that they agreed to remove the debt.

In the end, your only option may have to be to pay the debt. I suggest that you call them and arrange a payment plan. Even if it is ten dollars a month, it is something, and it will stop these idiots from calling your house every ten minutes.

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You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. Companies, like this one, have the same powers over your credit report as you do. The simple fact is that you cannot remove an accurate , legitimate debt from your credit report without paying it or settling it with the debtor, period. There are ways, however, to remove ones that are not legitimate. You do not need anyone to assist you to accomplish these tasks.

There are companies, however, that can perform all of the legal measures available for you. This can be anything from submitting credit disputes, to requesting debt validations, to setting up a debt repayment plan for you. Many different law firms specialize in this area. If you are too busy, or just would rather have someone else do it, then I would highly recommend one of these programs. They are usually very affordable, and there is almost always some level of benefit to the consumer. Just watch out for the incredulous promises like, “all negative items removed from your credit report” and other similar claims.

If you do have the time and energy, and you know for a fact that some of the items on your credit report are erroneous, then I also recommend taking your credit into your own hands. If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.

After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score. This letter is an example of an erroneous entry removal request that you would send to the credit bureaus, just adjust it in the appropriate areas, and send it to the credit bureau.

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