My Credit Repair company did nothing… Or DID they?

Credit Repair is a Two-Way Process Between You and Your Credit Repair Specialist

Many people I speak with said they have hired a credit (repair, restoration, management) company before and they did nothing as they claim. “I paid them and nothing happened”.

But then I start asking a few questions and then what comes up is they really didn’t pay attention to instructions and even didn’t pay a few bills on time which depending on the bill dramatically drops their credit score or even had a few new collections pop up on their credit.

Then a few more questions later I find out the company was a “no contract company” with “unlimited disputes” and a monthly fee. There was no follow up, no procedures in place to help the client along.

Most people expect to pay a credit company and everything gets fixed. HOWEVER, what most fail to understand is that your credit report is a mathematical equation. It does not care how old you are, what your race or religion is or how much or little money you make.

Just because you pay a company to fix something doesn’t mean it’s going to get fixed. A credit report must be reviewed an analyzed to determine if the score is able to be increased in the time frame a client is trying to achieve to reach a certain goal.

The main problem is 99% of credit repair sales people (aka- National Sales manager, National Sales Director, Area Manager, Senior Credit Consultant) are commission based. Which brings the problem that they are being told what they want to hear in order to sign them up so they can get paid. While this is totally understandable the issue is their goals are not aligned with the customers goals and time lines.

It is human nature to blame everyone but yourself. People need to understand that correcting credit issues is a two way street. Both parties have responsibilities in the transaction. The customer needs to understand they are paying for a service and needs to know that the company they are hiring have a system in place to help them if they forget part of their responsibilities due to life situations.

While you can’t blame the credit company for you not paying your current bills or new negative information popping up on your credit report. But you can blame them if they do not have a system in place to help you along this credit repair/restoration process, after all is this also not what you’re paying them for?

Understand credit is a fluid concept.. information is typically always being added to it and depending on the type of information being added a score may dramatically jump up (ex: paying down a maxed out credit card) or dramatically drop (current late payment or new collection).

Before hiring a company, take some time to do a little research to make sure they have your best interest at heart. If after every question you are getting pushed to sign up that may indicate they just want your money or they need you money. Either one does not sound like your interests are being placed first.

About Wayne Sanford:

The majority of consumers have no working knowledge of the credit system and the game it plays with their lives. A consumers’ basic credit education has come from late night infomercials, the internet and other sensational media outlets. They have no real idea of how the credit game is played and how they can stack the deck in their favor. Wayne The Credit Guy is the “go-to” advisor willing to put his name and reputation on the line – giving no-nonsense and answers as consumers ante up to the credit game. Roll the dice and learn how the Real World of Credit works and how you can play too. 

Debt Collector B.S.

Great, funny story that I just got from a client a few minutes ago that not only needs to be shared but also to educate consumers to debt collector scare tactics. She called to tell me she got a call from a process serving company asking for her ex-husband’s name (not hers) and said she wanted to know if she would be home to receive the paper serving. She stated do I sound like a man? The answer was no of course so she asked so why would you ask if I would be home to get served papers for someone else that I have no affiliation with for the last 5 years. The lady replied that’s not my job I just make these calls and ask.

She gets a call later in the day from a man who says he is recording the call and has a bit of an attitude with her on a debt that she said the last time she paid on it was in mid-2009. He states the date of last payment was sometime early 2010. Of course the original fee (turns out the card was hers) was approx. $500 but they were trying to collect approx. $1,300.

During her conversation with him he put her on hold 6 times… this is a delay tactic that crappy debt collectors do to make it seem that they are more important than you and make you wait thus making it seem “more official”.

I trained/educated her like I do all my clients to ask what was the charge off date. He kept repeating that he is recording the call for legal purposes to bring to court all of her false responses and then when she mentioned she had an advisor (me) he quickly got very snippy and said well I hope he is an attorney and you can just tell it to the judge this week and then hung up on her.

I told her that is the telltale sign of a BS debt collector. I advised her to contact the original creditor and talk to their collection department (for true peace of mind) and ask them what was the date of charge off and if they sold the account when did they sell it?

Turns out the account was sold in February 2010 to a collection company and while technically she does owe the debt the threats of a lawsuit were illegal and unable to occur as in Texas as in many other states (but different times for different states) is four years. So the debt collector who was the new owner of the account failed to take advantage of the legal remedy they had thus resorted to this type of tactic.

While the statement is obvious that you should always pay your bills, very rarely does anyone ever get credit of some sort with the intention of not paying them. However life happens and if creditors take advantage of every law out there for them, should consumers not do the same?

I’ve tried Credit Repair before and company didn’t help

I’ve tried Credit Repair before and company didn’t help…

I hear this all the time from people and I call it “credit repair scar tissue”. But when I ask them what research they did on the company prior to hiring them I always get “the real estate agent” or “loan officer” told me about them. And that’s great but when I ask did they do any checking of the company out on their own the answer is always no. So when I say to them so you didn’t do any research to see if they operate legally or have any credentials that tells you that they are the company that can help you the answer is none and your surprised you didn’t get any results or the results you were hoping for.

One thing I always tell future clients is go check out my website and credentials and do a little reading up on them and then call me and we can discuss your credit file and what your goals are.

In life you need to be proactive and understand that there are many people out there looking to take advantage of others so you need to do a little research. I recently had a husband ask me if they both needed to hire me to help them. I told him “so you’re asking me if you should pay me for two people instead of one?”. After pointing out to him never ask someone you plan on writing a check to as most people will say yes.

What I asked him back was “do you need both of your incomes in order to purchase the house you want?” If the answer is yes then both of you need to hire me, if the answer is no then only the one with the income getting the loan needs to hire me”. Now the funny part of the story is when he told his wife he was going to ask me she said “of course he’s going to say yes, he wants us both to pay him!”.

I made sure to tell him to relay this story to his wife of what my answer was before he told me what his wife said, lol.

Also, many people who are mad at credit repair companies and complain typically find them on the internet and their “sales person” said it’s not a contract and is month to month so you can cancel whenever you want. Another way to phrase it is “we want to keep charging you as long as we can so we will drag this process out since that’s how we make more money”.

And if they are charging you monthly with “no contract” then they will typically tell you to send in all reports received from the credit bureaus and if you do not get all of them in 45 days then you need to call them and tell them that.

How many people do you think actually remember that part? Then they forget, time gets away from them and then before they realize it several months have gone by and when you call to complain they tell you that you were supposed to have contacted them so it’s basically your fault. However they have billed you for several months even though they have not done any work.

How is that monthly fee that was so much cheaper for you working out now?

Most of these companies know nothing about the home or car buying process and typically cause more problems than they can help you. Unfortunately you don’t find out about this until hundreds or thousands of dollars later.

Bottom line, it’s your money so put a little effort in and check out the company before you hire them.

Know your rights when the Debt Collector calls

Know your rights when the Debt Collector calls

Dallas Credit Guru Wayne The Credit Guy Talks About Creditor Phone CallsWhile there are some polite and honest debt collection companies doing their job, just know they are the extreme minority. So let’s have some education about what they can or cannot do as they operate mostly under intimidation, manipulation and fear.

Once your account goes to an outside collection agency the account is usually “charged off” which means 180 days of nonpayment has gone by and federal law requires the debt be written off their books. The coding of this account on your credit report cannot get any worse.

This charge off date is what is measured for the seven years the account can stay on your credit report. So the negative account will stay on your credit file for seven years. The OTHER issue to be very concerned about is the legal statute of limitations. This is the timeline you have for the creditor to file a lawsuit against you which will turn into a judgment and if that happens no bank will lend you money with a judgment against you, even with a 810 credit score.

Each state has their own timeline for how long a creditor can sue you. Most states including Texas and California are four years. But some states like Illinois and West Virginia are ten years (never going to move there!). The best way to confirm the date for your state or to ensure the timelines have not been changed is to go to the Secretary of your state’s website to confirm these dates.

So once you have confirmed this information and a debt collector calls you and threatens to sue you understand it is a civil matter only. The sheriff or constable is not coming to your house to arrest you. And if the debt is old enough so you know they can’t sue you once you tell the debt collector that and that they broke the law by saying that knowing they can’t they typically get off the phone with you rather quickly since they now know you are an informed consumer.

Also… debt collectors buy debt from creditors for pennies on the dollar so NEVER pay more than 50% of the debt if you choose to pay the debt. In the past I have gotten collectors to go down as far as 30% for debts only a few years old.

But UNDERSTAND that if the debt is 5-6 years old and you do pay it make sure in the paperwork you get BEFORE you make any type of payment that it says the debt is settled in full. And the account WILL stay on your credit report for another seven years even though it will show a zero balance. It DOES NOT get removed unless you are able to negotiate that as part of the agreement but most debt collectors will not remove it but it can happen.

Installment and Revolving Accounts

Go out and build your credit they say, don’t just go out there blindly and do it. If you hire a credit repair company they should tell you EXACTLY how to build your credit file.

Too many times i hear how clients were just told to “go get some credit” with no direction. That’s sad, you as a customer are paying for specific knowledge to help you achieve a certain goal.

Learn how all good credit is not created equal….

Credit controls our lives, But people do not know how important credit really is until you need it TODAY and then it’s too late.

Majority of Credit Repair companies out there you speak to are sales commission only sales people. So they typically tell you what you want to hear to get your money.

While there is nothing you cannot do that a credit repair company can do REMEMBER… there is a difference between disputing and getting results.

Having a credit company who understands the underwriting criteria of future lenders and how they look at you is more important than you can possibly realize.

Bad credit, credit repair, repair credit, How to repair credit, fix credit, credit fix, how to fix credit…. No matter how you say it you don’t realize how important credit is until you need something today and then it’s too late.