| By :
Ian Webber
The Controversy For reasons beyond my comprehension, credit repair is controversial. Okay, I take that back, it is not beyond my comprehension; as with all industries, there are a few bad apples which taint public perception. Add to that a sadly misguided and ill-constructed campaign by the FTC, plus a few not-so-bright reactionary members of the media, and you get a controversy. The Truth And now, the truth; the credit reporting system is massive, complex, and prone to error. Credit reporting errors cause serious financial harm, often to those who can afford it the least. The solution is credit repair. And the most practical means of harnessing the potential is through a reputable service. The option, oft touted by industry critics, of self-correction, is impractical for the overwhelming percentage of people, even impossible. The Bureaucracy If you were to find a single, simple account error on your report, resolving it through an online dispute portal might just work! Any credit repair effort more complex and you are almost certain to fail or worse yet, become a victim of bureau resistance leaving you feeling inadequate, threatened, and scared. Most people need an advocate. To dissuade them is criminal. A Righteous Effort The 2003 FACTA amendment to the Fair Credit Reporting Act mandated that the major credit bureaus make a credit report available to consumers one time per year at no cost. This initially seemed like a great credit repair boon. The intent was to provide consumers a chance to identify and correct errors on their reports. Sadly, the free reports provided by the bureaus are in three equally cryptic formats. The average consumer does not have a chance. What You Pay For If you wonder at the claim that these free reports are less than user friendly, take a look at the reports that the bureaus offer if you are willing to pay. The difference is like night and day. It is clear that effort has gone into making the for-money reports usable. Data is sorted, columns are employed, and information is put into easy categories. Once can only wonder why all of this design skill was withheld from the free reports. The Need for Help Beyond the basic readability of credit reports, there are a plethora of legal and reporting compliance issues that are nearly impossible to spot without training, but can nevertheless ruin credit scores and hence the financial life of the victim. The only real hope that most people have is to hire a credit repair company. Doing it Right I do not mean to rail on so pointedly against anyone who has taken a stand against credit repair. They are probably well meaning, and some of their objections are accurate in as much as they apply to bad and abusive business practices. But the industry is not without oversight. Guidelines are provided by the Credit Repair Organizations Act. Those who do not conform should be disciplined. But the majority of companies, doing business properly should be recognized as valuable. Spread the Good Word Credit repair works. And for an amazing number of people it is necessary. Over recent years credit has become more important. Aside from resulting in significant extra loan costs, poor credit can even limit employment opportunities. And in a growing number of cases, poor credit is exacerbated by reporting errors that could be rectified by credit repair. If you know someone who has suffered from the fallout of bad credit, tell them the good news; credit repair can help. Copyright © 2010 Ian Webber. All Content. All Rights Reserved.
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