Two Important Credit Repair Laws
These two laws will help you in your quest to improve your credit scoreThe Fair Credit Reporting Act
The Fair Credit Reporting Act is usually where the credit repair process begins. The Fair Credit Reporting Act (FCRA) governs how the credit bureaus treat consumers. The FCRA is what empowers you to dispute and remove items on your credit report to improve credit score. Here is an overview of what the FCRA covers:
- Gives you the right to get your credit report at a reasonable price or for free
- Specifies who can access your credit report
- Sets the reporting period for most items at 7 years (10 years for bankruptcy)
- Regulates how the bureau handles customer complaints
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) largely deals with abusive collections practices, but it also has relevance to improve credit score with credit repair. This is the law that lets you demand proof that the debt collector owns the debts they say they do. In other words, if a debt collector cannot substantiate that your account is in collections, this derogatory item can be removed from your credit report. Here is an overview of the FDCPA:
- Defines acceptable collections behaviors
- Regulates the correspondence and communication of collectors with debtors
- Affords you the right of debt validation (the right to request further information about the debt to verify its authenticity)...this is most important to improve credit score
- Regulates how collectors communicate with others about your debt
If you have any futher questions check out our credit repair FAQ page.
