Legal Credit Restoration


Your first step in legal credit restoration is looking into the laws regarding credit and other areas closely related.

credit repair law

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.



    There are several areas you can use this Act to guide you.



       First what a credit repair company is required to do and cannot do when providing services to you.

           It can additionally be considered guidance for the course one takes themselves in credit repair.




Next is another of the fair credit reporting act called Consumer Credit File Rights.

    This works closely with the credit repair organizations act to keep consumers in the know about what they lawfully can do with their credit.


A prime area concerning the use of credit is the consumer credit protection act.

    This Act has been in constant change (added to and amended) since it's inception in 1972. It encompasses many other Acts that govern how our finances are handled by the companies we do business with. A primary concern this Act addresses is that consumers are aware of the cost of obtaining credit.


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.

  • This Act regulates credit transactions and how merchants and financial institutions handle them.
  • It was put into place to help consumers safeguard against identity theft.



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


If you are in a Bankruptcy or contemplating one knowing all that you can of your situation beforehand makes the decision making process that much smoother.


Sometimes houses are surrendered during a bankruptcy but there are legal requirements the bank must follow in the course of foreclosure. The following summary of the servicemembers civil relief act is part of those requirements (an attorney must ascertain whether an active duty servicemember lives at the premises).


Sometimes during a bankruptcy especially a pro se bankruptcy the debtor will decide on the use of a non attorney petition preparer . There are legal requirements on their part in their use.




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