How do I get started???

If you haven't ordered hard copies of your reports from each bureau, do that first. While the online services give you an indication of what is on your report, it is a trimerge, put into a common format, and things don't always show the same as they do on your hard copy.

After you've done that, go and start reading on this board so you understand a lot of the terms and how the CAs, JDBs, and CRAs do things.

As you come up with questions, post them here so you can get help.

 

If you're going to solicit any credit repair organizations, you need to verify certain things. First, make sure they're licensed and registered with the Secretary of State in which they're incorporated. Secondly, bonding is a good requirement to fulfill as well. Third, make sure they're a member of the Better Business Bureau.

With that said, make sure you call around. If they can't answer simple questions, balk. Some are better than others and while you can do most things yourself, a good agency can provide you insight and benefit for your money.

I wouldn't even bother with larger companies insofar as they're dispute mills. They may assist in some fashion with simple collections but as for unpaid charge-offs, forget it.

 

Welcome to the forum, and hope we can help. This advice is basically a "primer" for all credit repair, it is a bit lengthy, but bear with it. You are starting on a journey, understand that it will take a while, and the most important thing is to follow the process. Here goes:

1) Get current hard copies of all three credit reporting agency reports. It sounds like you've done this already, but if you haven't, get all three. You can get a copy from each agency once a year for free from www.annualcreditreport.com.

2) Get your FICO scores for all three credit reporting agency reports. Go to www.myfico.com. Do not get "credit scores" from other advertised sources, MyFico is the "real" score, the others are referred to as "FAKOs". I recommend that you Google first for "FICO discount codes", for a promotional code to save you 10%-20% off the list price.

3) Study your reports, and scores: read what the legends say about codes and items, read what makes up your credit score, in short study up on what your reports are saying. Make sure you understand what the reports are saying.

4) Read the Fair Credit Reporting Act (FCRA), and the Fair Debt Collections Practices Act (FDCPA). These can be found at www.ftc.gov/consumer. This is a true labor, but it is well worth the time. These two documents outline all the applicable laws, what the credit reporting agencies can, and must, do. They also define how items must be reported, and what you must do. Again, post any questions that you may have here on the forum.

5) Get organized and "supplied". Credit repair is a major project, and organization is a major part. You will need an area to file all your documents, calendars to keep track of actions and to remind you for follow up on items. You will need access to a copier, need to set up a documents file on your computer, etc. You should also stop by your post office and pick up a pile of "Certified Mail Return Receipt Requested" materials, it is easier to have them at your fingers when writing letters, than trying to fill them out at the post office.

6) Read as much of the material here on this forum as you can (before you start disputing and letter writing). Read, read, and then read some more...yes, it is work, but learn from others' mistakes. Again, it is about following the process. If you've fully read the FCRA, then you will note some surprising steps you must take (which do not seem to make sense at times but...).

7) If you feel you have a good understanding of the basics, create a plan of repair based upon priority of negative items on your credit report. For you, the "Charge Offs" seem to be the most impacting.

8) "Opt Out": this is removing your name and information from being solicited to businesses for "promotional" purposes. Howver, this is also a way colleciton agenices can find information on you, and access your report. This is a preventive measure which can easily be done with a phone call. Just follow the instructions on your credit reports.

9) Review your credit reports for accuracy of your personal information. IMPORTANT: remove any previous addresses older than two years. This can be done on-line, or through written request. If you do a written request, mail Certified Mail Return Receipt Requested. Wait until you have received the corrected credit reports before you dispute anything.

10) Plan and prioritize your dispute actions: Dispute your priority items with all of the credit reporting agencies (CRAs). There are different schools of thought here, but I recommend only doing one or two tradeline disputes at a time. If you dispute everything at once, it can be overwhelming to organize and manage. So, keep it simple to start.

11) Disputing: the easiest method is to dispute on-line with the CRAs. If it is at all applicable, dispute as "Not Mine" to start. You do not want to waste this dispute reason. You can also dispute via phone, and mail; if you do dispute via written letter, make sure you send Certified Mail Return Receipt Requested. You can also track progress on line via the postal service. However you dispute, keep documentation of all you actions, keep copious notes of all converations and actions as well. You may need these down the road.

10) Follow up: the CRAs have thirty days to (from receipt of dispute) to complete an investigation, and then report back to you. Make sure you know when these time frames are up.

11) Specific items: If your disputes of the Charge Offs are "verified", and remain on your credit reports, then you will start some actions with the collection agencies (CAs) directly.
Send out "Debt Validation Request" letter to the collection agencies requesting the supporting evidence that you indeed are the person who is responsible for this debt, and that the amount alleged owed is correct, and can be accounted for. Please note that the CAs are only legally bound to provide this IF you request this within thirty days of first notice of the debt by the collection agency. Many CAs will provide this after that period, but they are not required to do so. There are several sample letters here on the forum to use, just keep them simple and short. Avoid use of "legal recourse" language for now. The letters of "Intent To Sue" have lost their effectiveness in recent years, and basically go ignored now.

12) Have patience, and discipline: I'm not sure which is worse, having success in the beginning, or not having it. Wait patiently for dispute results, and review carefully before acting again. Make sure your dispute actions are planned, and documented. Do not rush the process, this is where mistakes happen, and opportunities are lost. Sometimes it is easy to get excited after seeing some negatives removed, and you start disputing everything at once, or rushing them. FOLLOW THE PROCESS.

13) Take this time to (objectively) analyze what got you into this position: was it a one-time issue of job loss, etc., or was it a mental state of spending more than you should? Find the true root cause for your current situation, and address what you need to do to correct it. This will be one of the most critical things you do in this process.

14) Get a hold of your personal financial situation: start tracking all of your expenses and income, write down and add up all your debt, and itemize it. Most likely you will need to create a debt repayment plan as well, and for this you will need to get a clear picture of your personal financial situation. This can be a daunting exercies, and perhaps a bit depressing, but it is a critical tool to fully correct your situation. I recommend looking at www.about.com/debt for helpful tools and information on personal finance. www.msn.com/money also has great basic information also.

I think this is enough to get you started; I know this may not be what you hoped to hear as advice, but it is the best advice we can give you. There is no overnight solution. As for the "credit repair" firms, you can do all of the same measures yourself, and probably a better job, it will just take some time and effort to learn and do them yourself.

Again, welcome to the forum, and congratulations on taking the first steps. You can do this, but it will take time and serious work. But read all of the "success stories" here on the forum, you will find some great motivation in all of the achievements by others here.

We're always here to help and encourage....never be afraid to ask any question.

Good Luck!

 

bizwiz, that's a great writeup of the process. You're absolutely right about sticking to the plan and only doing a few disputes at a time.

Maybe this should be made a sticky.

 

Thanks,

I appreciate the compliment from another veteran "Senior"...

You're right that we should make a sticky, or item for the "basics", we do see a lot of requests for the way to start this process.

 

Ditto on the bold part (emphasis mine). Reading the law to a CA is a waste of ink. If they know it, you don't need to read it to them. If they don't know it, they aren't going to listen to it from you so. Short and simple.

Likewise on the "Intent to Sue" letters. If you're going to sue them do it. If not, don't. Intent to sue letters will not get their attention, but a summons will.

For each case you want to work with:

1) Figure out what you want the outcome to be (removal of trade line, negotiated agreement, collection agency off your back, all of the above).

2) Determine if it's realistic (e.g. bounce it off some people here) and adjust #1 as necessary. Sure we might all like our past sins of ignorance, negligence or whatever to be forgotten without consequence, but that doesn't happen (often).

3) Figure out what the steps are to accomplish your goal and decide if you can go all the way (e.g. to court) if necessary. If not go back and adjust #1 again. You may need to go to court to present your FDCPA suit or defend yourself against a judgement. Either way, pro se or with a lawyer, you'll have some work and/or expenses ahead of you. Forewarned is fore-armed.

4) Then do it. If you have a long list of things, you might start with the least consequential to practice on. That way if you screw up or do something out of order your damages will be contained and you can apply your lessons learned to the next one up the list.

5) Don't expect things to change quickly: Both your recovering from the past and improving the future will take longer than you might like. This can't be repeated often enough. Figure on spending three months (best case) to a couple of years (depending on how big of a mess you have to clean up) to work this process. Anyone who says they can do more in less time should be suspect.

Finally being your own legal rep (e.g. pro se) is a lot of work. If you're not up to the task of doing the research and standing up in front of a judge, then you might need to hire an attorney. You might not, but understand your limitations.

And when it all seems like it's falling down on top of you, you can always vent here. We've all been there and understand how it feels.

 

That's because they were never done right in the first place. When they are properly prepared, (not in letter form but in legally proper format) they are not ignored and if they do ignore them they will quit ignoring them when they get the actual summons and complaint from federal court. Intent to sue in the letter format presented here and on every other message forum I have ever seen is nothing more than somebody's idea of what a formal intent to sue is.

If you send them a plain old letter telling them you intend to sue them they will probably either trash it or they might do you the honor of putting it up on the company bulletin board so all the employees can laugh their a$$es off.

A properly prepared intent to sue document is not only properly prepared but is also accompanied by a properly prepared complaint which shows what court the document will be filed in, why the court has jurisdiction, what the causes of action are, and has a properly prepared motion and order of the court ready for the judge to sign as well as properly prepared certificates of mailing.

If you don't know how to prepare and send those documents then all you need to do is send one of the letters you find on this or any other board and then sit back in your easy chair and listen intently to see if you can hear the peals of laughter when they open it up. That is about the best result you can hope for.

 

Biz:

Awesome explanation !!

This is one of the best I have ever seen in detail like this.

 

You're probably right about the reason for their ineffectiveness, but in my (very limited) experience if you're trying to get money out of them, they'll wait until the last possible minute. An "intent to sue," no matter how well prepared, still has no teeth and hence is easily ignored. A summons with an answer deadline cannot be so easily ignored. A judgment, even less so (even though they still can, if they want, I suppose).

Every case is different, but I'm thinking that law suits are like guns, you don't pull it out unless you plan to use it and use it first. Just waving one around without the intent to use it is just asking for trouble. Consequently, if I'm going to sue, I'm not going to just threaten. But, like I said, every case is different.

 

I'm afraid I'm going to have to disagree with that sentence. (LOL) I think they are all the same or so nearly so it really don't make much difference. If it is time to send an intent to sue then it is time to send it.

Bill Bauer uses them quite extensively and very effectively. Intent to sue is the final letter in his creditwrench course and he, like you advises that if you are going to point the gun then you definitely need to go ahead and pull the trigger.

He also uses them in his teaching about how to defeat arbitration. He has his students send them to NAF threatening to sue for injunctive relief because arbitration denies the debtor of his due process right to a fair and impartial hearing before a jury of his peers. What normally happens is that NAF then suspends the arbitration for 6 months to await the outcome of the pending hearing. Often Wolpoff or Mann Bracken or whoever forgets about the arbitration for up to a year or more or forgets about it entirely and brings suit without arbitration. In the event they attempt to reinstate the arbitration after 6 months then he has his students start the process all over again but this time not only send the same intent to sue but actually has his students file for the injunctive relief in their local courts. So far NAF has never responded to the student's motion for injunctive relief and that is probably because the student is not asking for any monetary relief or damages. He has yet to have them proceed with arbitration but I see no reason why they could not do so if they chose to do it. After all, they would not suffer any damages or incur the wrath of a court if they did. The attorney who tried to get it reduced to a judgment would quickly find out that he can't bring the case because the court has already ruled that the case would have to go to a jury trial. So obviously a properly prepared intent to sue has very definite uses and can be extremely effective if properly done and the sender is actually ready and willing to pull the trigger and file the cases, go to court and do the best he can.

 

I can see how that would certainly come in handy.

 

Cap1 is one of the hardest to deal with, so be prepared for the worst.

As for the CAs for these, send a Debt Validation Request (look in the sample letters forum for a template). Wait for the resposne from the CA, then you may try to go for a "Pay For Delete" with the CA. It will be nearly impossible to get the Cap1 tradeline removed, short of fraud or identity theft.

 

Question About myFICO.com

Awesome advice bizwiz. I have a question about step two of your process.

I was going to sign up with TrueCredit.com (TransUnion's product which is highly regarded on these boards) to monitor my reports as I (hopefully) get some derogs dropped off. But I have decided against it based on your advice above to get "real" FICO scores.

So here's my dilemma. Should I sign up for the free trial at myFICO.com to get my Equifax FICO score, a free trial at Experian to get my Experian PLUS score, and a free trial at TrueCredit.com to get my TransUnion proprietary score? Or, are you saying that there is such a thing as a FICO score compiled from the Equifax report, a FICO score compiled from the Experian report and a FICO score compiled from the TransUnion report. If that's the case, I would have to sign up for FICO Deluxe or the Suze Orman FICO kit at myFICO.com, netither of which offers a free trial.

If the only "FICO" is an "Equifax FICO" then I will just get their free trial (and my FICO score) as well as the other FAKO scores from the other sites. Then, I'll cancel my free trials and after all my cleanup work is done, I'll sign up for a monitoring service. Does this make sense?

Thanks,

Alex

 

If you think your credit needs repair, then save your money on FICO and just get TrueCredit to keep an eye on things.

If you want a "baseline" and want to pay $45 for it, you can, but why bother if you think you need to do some work.

Get TrueCredit to see where you are and keep an eye on things.

If you need to work on your reports, to go http://www.annualcreditreport.com and get the official version from each of the credit reporting agencies and start working on them. Then, when you think you've improved or need to see where you are before you apply for a loan, go ahead and pay for your FICOs.

 

I already pulled my three free reports--I keep saying "my" but they are actually my girlfriends reports. My credit repair will happen after I use her as a guinea pig and learn the do's and dont's. Anyway, I saw some derog that needs to be worked on. The reason I want the scores also is because it's step #2 above, and I was also thinking that it makes sense to make a note of them now and then hopefully observe the change after I have put in some work.

I went ahead and signed her up at myFICO.com for a ScoreWatch trial
got her FICO Score (670) and another copy of her Equifax report.
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I also signed her up at TrueCredit.com for a TransUnion Credit Monitoring Unlimited trial
got her TU Score (683) and another copy of her TransUnion report.
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I also signed her up at Experian.com for a TripleAdvantage trial
got her PLUS Score (673) and another copy of her Experian report.

Now, I'm ready to go to step 3! ;-)

Thanks Again - Alex