When there are errors in your credit reporting, taking the time to dispute them with the correct parties can be overwhelming. However, leaving the information can have a negative impact on your credit score, so taking action is imperative. As such you may decide to enlist the assistance of credit repair companies to handle disputing the errors on your behalf. Unfortunately, you may find that you do not receive a favorable outcome in these matters. As such, if you’re not sure why working with these companies is not in your best interest, keep reading. The following blog explores what you must know and why choosing to work with a San Diego County credit reporting error lawyer to help you through these matters is recommended.
What Do Credit Repair Companies Do?
Many credit repair companies promise consumers they can help improve their credit, whether they are a victim of identity theft or fraudulent errors, in exchange for compensation. As such, if you work with a credit repair company, they will examine your credit report, send dispute letters for errors, and contact debt collectors to help you receive relief from harassment. While this may seem like a great way to repair your credit without the stress of doing it yourself, you’ll find this may not be the best option for several reasons.
Why Should I Avoid Working With Them?
While these companies often tout their ability to help consumers without their involvement, you’ll find that legally, disputes must come directly from the consumer. Under the Fair Credit Reporting Act, the law states that disputes must come directly from the consumer. As such, when a credit reporting company submits a dispute on your behalf, even with your express permission, it is essentially meaningless to the reporting agency. They legally do not have to investigate the dispute because it did not come from you.
It’s also important to understand that these companies often use template letters to send to reporting agencies, and as a result, these letters are flagged by the agencies and dismissed before they even look into your case. Even if the agencies could investigate disputes filed on behalf of a consumer, repair companies often do not include important information in the disputes, resulting in a dismissal as key information may be missing from the dispute.
Finally, you’ll find that unfortunately, the credit repair industry experiences incredibly high levels of fraud. Many individuals have realized those turning to these agencies are down on their luck, meaning they are more easily swayed to do something to help their credit. As such, these companies use deception and fraud to take advantage of consumers, like charging for fees and services they failed to provide.
When there are errors on your credit report, working with an experienced consumer attorney instead is in your best interest. At Barthel Legal, our firm can help guide you through the process of filing a dispute while providing specific advice to help you fight for the best possible outcome in these matters. If you need help, contact our team today to learn more.
