Introduction:
Today’s article is driven by my desire as CEO of Credlocity to punch back against the credit bureaus. This punch back or like they say in my neck of the woods “clap back” is to expose the credit bureaus and how they manipulate consumers across the country with their misinformation. We will tackle everything from SEO ranking, misinformation, the Fair Credit Billing Act, the Fair Credit Reporting Act, who Jim Akin is, and the need for legislative action by congress to fix these injustices.
In today's digital world, search engine optimization (SEO) is a powerful tool. It can help businesses reach their target audience, but it can also be used for more manipulative purposes. These billion dollar credit bureaus don't use their profits for good or even to just live and let everyone else live, they use these profits to ensure they get more money.What the credit bureaus do is use an estimated 27% of their profits on Search Engine Optimization (SEO). A prime example of this latter use is the case of the three major credit bureaus - Equifax, Experian, and TransUnion. These entities have been found to leverage their high SEO ranking to discourage individuals from seeking the assistance of credit repair companies. They publish blogs which rank very high on search engine results.
Strategic Misinformation and High SEO Rankings:
The major credit bureaus have been accused of using their SEO strength to ensure their blogs rank high on search engines when someone is searching for 'credit repair', 'credit fix', or 'credit fixer'. The goal? To dissuade individuals from seeking the assistance of credit repair companies.
The Experian Blog: A Case Study:
Take, for instance, an Experian blog post penned by John Ulzheimer titled "Can Credit Repair Companies Remove Late Payments?" In this blog, he states, "Credit repair companies cannot have accurately reported late payments deleted from your credit reports". Technically, he is correct. But this statement fails to account for various reasons why a late payment, while technically correct, can be incorrect and in violation of the Fair Credit Billing Act (FCBA).
.Who is John Ulzheimer:
John Ulzheimer is a well-known figure in the credit industry, with a wealth of knowledge and experience in credit reporting and credit scoring. According to the information available from various sources, including his personal website, John Ulzheimer actively presents himself as an expert in consumer credit, credit scoring, and identity theft. He shares valuable insights and advice on his website, and has appeared on CNBC Select to offer guidance on handling bad credit. However, it is worth noting that Ulzheimer's involvement in legal matters as a credit expert witness suggests a level of flexibility in terms of the clients he represents. This means that he can be hired by either plaintiffs against credit bureaus or as a defense expert by the credit bureaus themselves. Additionally, Ulzheimer consistently contributes to the blogs of major credit bureaus and maintains his own websites, showcasing his expertise in the field. While his diverse affiliations may raise questions about potential bias or conflicting interests, the extent to which they impact his work as an expert would require a deeper analysis.
The Fair Credit Billing Act (FCBA):
The FCBA forbids a company from reporting a late payment if they never sent the customer a monthly statement, or if the statement was sent to the wrong address causing the customer to be late. A credit repair company, like Credlocity, a reputable credit repair company in Philadelphia, plays a key role in identifying these errors.
Credit Repair Companies
The Role of Credit Repair Companies:
Contrary to what the credit bureaus' blogs suggest, credit repair companies are not useless. They help consumers find these errors and dispute them on their behalf. They work with the understanding that while an account may be reported in accordance with the Fair Credit Reporting Act (FCRA), there can still be technical violations of other consumer protection laws like the FCBA and the Fair Debt Collection Practices Act (FDCPA).
Understanding Credit Repair:
Credit repair is a process where companies attempt to fix your credit by identifying errors in your credit reports and disputing them on your behalf. These companies often promise to improve your credit report by contacting credit reporting agencies such as Equifax, Experian, and TransUnion and challenging items on the reports.
The Role of Credit Fixer Companies:
Credit fixer companies play a crucial role in the financial sector. They offer services that aim to remove negative information from your credit report, thus improving your credit score. These companies use advanced disputing techniques to challenge negative items on a consumer's credit report.
Legitimate Credit Repair Companies:
While there are many credit repair companies in the market, not all are legitimate. It's crucial to find a company that operates within the law and offers effective credit repair services. A legitimate credit repair company will not demand illegal upfront fees and will deliver on its promises. As CEO of Credlocity not only do we not take money up front or demand illegal fees but we ensure to consistently blog about these illegal credit repair companies and try our hardest to expose and shame these fraudsters. We have written extensively about major scam artists like Alex Miller, Lexington law, Deletion Experts, and Dana Chanel.
Do Credit Repair Services Work?:
The efficacy of credit repair services is often a topic of debate. Credit repair service does in fact work. However, credit repair can be effective in certain circumstances. These services work by identifying and disputing legitimate errors on your credit report, as well as scanning for potential violations of consumer protection laws. While individuals have the option to repair their own credit, choosing a credit repair service has its advantages. Just like hiring a mechanic for an oil change or using a tax expert for filing taxes, credit repair services offer expertise and convenience. Repairing your own credit can involve a significant amount of leg work, such as maintaining detailed records and copies of correspondence. In the event of potential legal action against credit bureaus, having professional assistance can be invaluable. Overall, the decision to use a credit repair service versus doing it oneself depends on individual circumstances and the complexity of the credit issues at hand.
Equifax, Experian, and TransUnion:
Equifax, Experian, and TransUnion are the three major credit bureaus. They maintain credit reports and play a crucial role in the credit repair process. These bureaus are often the entities that credit repair companies contact when disputing errors on a client's credit report.
Credlocity - A Notable Credit Repair Company:
Credlocity is a credit repair company known for its effective services. Consumers often ask, "Is Credlocity credit repair legit?" The company has built a reputation for offering legitimate credit repair services, making it a trusted choice for many seeking to improve their credit. Our services include state of the art credit disputing methods by combining factual disputing, Metro2 Compliance disputing, consumer law, and case law citation. Using this combination of disputing methods have made us rising stars in the credit repair industry.
Best Credit Repair Company:
Identifying the best credit repair company often depends on individual needs. A good credit repair company should offer comprehensive services, including disputing errors, educating clients about credit management, and providing ongoing support. Credlocity offers monthly one on one meetings, credit and financial education, free trials, 100% money back guarantee, and always handles disputes in house, never bringing in a third party to touch a consumer's file.
The Blog by Jim Akin:
Another blog, authored by Jim Akin titled "Can Paying Off Collections Raise Your Credit Score?" states, "you can't remove paid collections from your credit report". Again, this statement is technically true. However, it overlooks the fact that there are other considerations. Did the collection agency follow the FDCPA before reporting the account to the credit bureau? Did the original creditor comply with the FCBA? Often, these laws are violated, albeit technically, and because the account is reported in accordance with the FCRA, it is deemed accurate. This would again be misinformation perpetuated by the big 3 credit bureaus.
The Bigger Picture: Data as a Commodity:
The agenda behind discouraging credit repair services goes beyond just maintaining control. Credit reports contain a wealth of information that is sold to creditors. The more data your credit report has, the more valuable it is. Credit card companies, for instance, can charge a higher interest rate because of a lower score, making it worth buying your credit report.
The Need for Legislative Changes:
There's a pressing need for Congress to amend the FCRA and Credit Repair Organizations Act (CROA) to give credit repair companies better footing to help consumers. Adding teeth to the FCRA to define what "reinvestigation" means and amending CROA to require credit repair companies be licensed by the FTC or CFPB could legitimize the standing of credit repair companies in the financial sector.
Conclusion:
While it's true there are bad actors in the credit repair field, most credit repair companies are not. They play a crucial role in helping consumers navigate the complex world of credit reporting. So, before you believe everything you read online, remember to do your independent research and keep an open mind about the benefits of credit repair services. Don't let the high-ranking blogs of the credit bureaus discourage you from seeking the help that you need.