Lexington Law firm is a credit repair service. They are comprised of a group of credit lawyers and paralegals that will work on your behalf to remove negative items from your credit report.
How Do They Do This?
They are going to work under the Fair Credit Reporting Act, which is a law that was passed by Congress that provides you with the right to dispute any item you feel is inaccurate. This law says that the bureaus must investigate your dispute by contacting the lender or collection agency and asking them to verify the account.
Often in an investigation the lender will not verify the account and therefore the bureaus must remove the item from your report. Why? This is because often times lenders have taken your account and sold that debt to a collection agency.
Once your debt has been sold the lender has no legal rights to collect on it. Thus when the bureaus ask them to verify it, they are only going to be spending time and resources to do so. This is why your account often will not be verified and experts estimate that up to 80% of all investigations result in the removal of a bad credit item.
Can I Do This Myself?
Yes you can write a dispute letter yourself and if you choose to go this route then you must be persistent and organized. You're going to have to be organized because you have to send a letter to each bureau for each item. Frequently the bureaus will respond to your letter by asking you for more information about your dispute.
This is nothing more than the bureau's attempt to frustrate you and get you to give up on correcting your credit information. While the Fair Credit Reporting Act does require them to investigate your dispute, our elected representatives in Washington have made this much more difficult for you.
Congress decided to give the bureaus the power to decide what disputes are valid and should be investigated and which are not. This is one of the biggest diss-service to the U.S. consumer in history because the bureaus have a clear financial motive to avoid investigations.
The bureaus do not earn any income from correcting your information and instead they spend money and time and resources to investigate. They have been fined by the FTC on a regular basis for not complying with the Fair Credit Reporting Act.
Did you know in the late 1990s our government required the bureaus to set up 800 number's for consumers to call and file their disputes. However the bureaus neglected to staff employees to handle these phone calls. There were reports of individuals waiting up to 40 hours before talking to anyone.
The FTC stepped in and fined all three bureaus over $1 million dollars collectively, the biggest fine to date. However critics claim that this is merely a slap on the wrist as the bureaus annually earn billions of dollars in revenue.
This is why many individuals feel they are forced to turn to a professional credit repair service to ensure their disputes are investigated. A professional service also has the resources to use legal action if necessary, they can help negotiate settlement on any open debts in exchange for credit correction, use court intervention, and debt validation. Additionally they are experts in consumer credit laws and are very familiar with how the bureaus operate and try to avoid investigations.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/382880
Article Added on Monday, August 6, 2012
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