Many of you that have seen me on this board have known that I came to Creditnet after contracting with a local Credit Repair firm to remove my negative credit items. It was only after coming here and listening to your sage advice did I realize how badly I was getting ripped off. In light of your advice, I decided to fire the company and do it myself. However, I had paid them a lot of money and had a signed contract with them for a substantial amount of money. Here is the letter I wrote to them: April 30, 2001 Mr. XXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXXXX La Verne CA 91750 Dear Mr. XXXXX: On February 10, 2001, I signed a service contract with your representative, XXXXXX, for the purposes of credit repair. In addition to the contract, I also granted your company a Power of Attorney empowering you, your employees and your agents to act on my behalf in the effort to clear my credit report of negative credit items. At that time, I presented to Mr. XXXX three postdated checks to be used as my down payment. The total value of these checks is $480. Additionally, the contract detailed a schedule of payments that totaled $1,600. In the course of my research on credit repair and credit repair organizations, I discovered Title IV of the Consumer Credit Protection Act (Public Law 90-321, 82 Stat. 164). This act regulates companies that engage in the act of credit repair and protects consumers from unfair and deceptive business practices. The following is an excerpt from this act: SEC. 404. PROHIBITED PRACTICES b) Payment in Advance.--No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed. Your service contract for credit repair is in violation of this law. Additionally, the act detailed the following concerning the enforceability of a contract that is in violation of the law. It states: c) Contracts Not in Compliance.--Any contract for services which does not comply with the applicable provisions of this title-- (1) shall be treated as void; and (2) may not be enforced by any Federal or State court or any other person. Additionally, that act stated: You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. Upon discovering the above listed information, I contacted the Better Business Bureau of the Southland for information on your company. The following is an excerpt from their report on your company: According to California law, companies offering credit repair must register with the Attorney General and post a $100,000 bond; XXXXXXXXX Financial has not complied with this law. It is quite apparent that your firm is in violation of Federal and state law concerning the regulation of your industry. This disappoints me greatly as I had a favorable impression of your firm. At this time, I feel it is necessary to direct you to take the following actions: 1.) Cease and desist all actions on my behalf immediately 2.) Return to me immediately the original copy of my granted Power of Attorney 3.) Refund to me immediately all monies previously paid. My bank records confirm that you cashed check number XXXX for $120 and check number XXXX for $120. Additionally, return to me the remaining postdated check for $240 that is in your possession. I have already placed a stop payment on this check which is numbered XXXX. Once again, I am deeply disappointed that I have to take these measures, however, I feel very misled and deceived and had every belief that your company was contracting with me in a legal manner. Your company has 15 days from the receipt of this letter to reply to me with my requested original copies and monies enclosed. Time is of the essence. You are currently in violation of the Federal Trade Commission Act. Sincerely, Toothman Well, I expected much resistance. In fact, I had already begun composing my follow-up letter. However, lo and behold, today...a mere 4 days after mailing the letter, I received everything I asked. Amazing. I just want to thank all of you for your help. Last week, I performed my first actions on my own behalf and had 3 incorrect addresses, a collection account and a very old I9 account removed from my good friends at Equifax. Thanks again.
Brilliant Job!!! What an outstanding letter. I am happy that you were able to resolve this with only one letter in a short time period. Way to go!!!
Re: Brilliant Job!!! Well done Toothman. I can't believe you were paying them that much money up front......but then you found the light!
Re: Brilliant Job!!! Good job Toothman. I think money spent on credit repair companies is a huge waste. It would be better spent on the following; stamps, envelopes, paper and ink for your printer. Armed with these weapons, no one can stop you from righting the errors done by huge companies bent on ruining your credit, due to incompetance. I firmly believe you can fix these problems with minimal effort. Especially after reading your eloquent letter. Good job!
Re: Brilliant Job!!! Thank you for the praise everyone!! Yes, I was rather amazed that they caved so quickly. In fact, I received their response before I even got my return receipt from the post office. It proved to me that a well thought out, non-emotional letter with legal substantiation wins the day. I can't believe I was paying all that money too. But I have it all back and, with your help, will be out of subprimeville in no time.
