Your first step in legal credit restoration is looking into the laws regarding credit and other areas closely related.
Not only will you learn what can be done legally to improve your credit
situation, you will prove to safeguard yourself from businesses that
want to draw you into situations that create more problems than just a bad credit score!
One topic of interest in legal credit restoration is the idea of creating a new credit file.
This is a situation that can lead one into trouble if not studied well.
Though there are legitimate reasons for using an alternative credit file there are many companies and websites dedicating time to help people with bad credit accomplish this.
You may be risking much with this activity possibly even being considered guilty of making false statements on a credit application.
There are those that argue this is completely legal yet the ways of doing this in my opinion leave a strong stench of dishonesty.
Read for yourself the pros, cons and details required for this venture and see if it is right for you. new legal credit file.
This page, Legal Credit Restoration has a primary purpose to list
the summaries of laws that can be found throughout my website.
The use of these laws can help in a true legal credit restoration that you won't be looking over your shoulder worrying about.
The first is the Credit Repair Organizations Act part of the fair credit reporting act. This went into effect in 1997.
This was put into place to stop credit repair companies from using practices
such as creating a new credit identity (which the Federal Trade
Commission calls file segregation) without counseling their clients on
the true legal aspects of that new identity, along with other unethical
practices that these companies sometimes used.
Next is another of the fair credit reporting act called Consumer Credit File Rights.
A prime area concerning the use of credit is the consumer credit protection act.
The first among these Acts of the consumer credit protection is the truth in lending act .
This Act requires lenders, first in the line of lending mortgages and now with credit cards lenders to include a disclosure.
Whether it be a line on a monthly statement or a separate piece of paperwork that lets the customer know the true cost of that transaction.
Next of the laws of the consumer credit protection act is one that deals with money transfers and how they are handled by financial institutions, the electronic funds transfer act .
Though not an act but an area of concern are unauthorized electronic fund transfers as non-reputable businesses seem to abound and increased credit fraud are the order of this failing economy.
In the area of debt collection of the consumer protection is the Fair Debt Collection Practices Act.
This as many know puts boundaries on how far the debt collectors can go in their pursuit of debt collection.
The next law on this list is the Fact Act or Fair and Accurate Transactions Act.
Now for the more recent Card Act or as other known as the credit card accountability, responsibility and disclosure act.
As most know this one was put in place to put the brakes on the abuse of some financial institutions and their fee happy accessing of accounts. Though much more needs to be done here!!
One protection though some may not understand it as so is the newer debit card and ATM overdraft protection or overdraft fee legislation.
Other laws related to legal credit restoration