Over time, Congress has passed several laws to protect consumers rights. The most commonly recognized is the Fair Credit Reporting Act. The object of this Act is to "assure accuracy and fairness of credit reporting." Credit Agencies were given the job of assembling and evaluating a consumer credit and other information about consumers. This is to be done with fairness, impartiality and respect for the consumer's right to privacy.
The cards are stacked in favor of big business when it comes to credit related issues. For someone that is considering Do It Yourself Credit Repair, it is very important to have an experience of the law that Congress passed to protect the consumer.
A credit agency is a for-profit corporation, which means they are a business that expects to make a profit for its owners and / or investors. The Credit Agencies compile and maintain files on consumers countrywide. They assemble, appraise, maintain and furnish consumer reports to 3rd parties with regard to a consumer's credit worthiness, credit standing, or credit capacity. Their customers are banks, credit unions, shops, businesses, employers, collection companies, etc.
Do you see how this might be a conflict of interest? First off, the credit bureaus receives this information from their customers (ie, banks, etc), at face value, implying that the information is accurate. They evaluate it, allot a worth to it (credit score) and then sell this information to whoever has a legal right to receive a credit report. This exchange of info is done covertly and without any input whatsoever from the consumer. In fact, a consumer may be completely unaware that there's anything prejudicial on their credit report until they apply for a job or attempt to purchase an item using credit.
While a rapist is presumed innocent until proven guilty, a consumer is presumed guilty without one shred of evidence other than the creditor or collection company word. The Credit Agency does not seek any input whatsoever from the consumer prior to putting derogatory information on a person's credit report.
This is truly an uphill battle, especially for someone who is considering DIY credit repair. Many times, the only recourse is filing a lawsuit. Each year thousands of lawsuits are filed against credit bureaus, creditors and collection companies because of errors found on credit reports. While winning a legal action might be gratifying and will, at last, correct the record, the defamatory information remains on a person's credit report throughout the entire trial, which can take years.
Having derogatory items on your credit report is, in essence, a 7 to 10 year sentence in today's version of "debtor's prison." What is staggering is that you are automatically convicted without the benefit of a trial or any type of proceeding. In today's economy, many people, who are otherwise qualified, have lost job opportunities based solely on what is on their credit report. Is this really what Congress had in mind when they passed the Fair Credit Reporting Act ?.
Shouldn't we be asking "why are murderers and rapists given the benefit of doubt without offering the same protections to consumers"? Congress should be ashamed of itself!