The Law

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The fair credit reporting act (FCRA) is the law for the credit reporting agencies (CRA)

The credit reporting agencies are violating your rights by not following federal law.

The fair credit reporting act requires the CRAs to have physical copies of the contract documents that were signed with creditors and which they report. But everything that they are reporting is transferred to them from the creditors electronically. It is not sent by mail as a hard copy.

This means that the CRAs do not review and/or verify any credit applications, signed contracts, or any documents, before they report the items on your credit report.

Here is a link to the fair credit reporting act where you can find all of the information regarding credit reporting on this page.

The FCRA requires the CRAs to verify all accounts with your original contract together with your signature.

The FCRA requires all CRAs to verify all information received from the creditors before adding this information to your credit file. But since this would be very time-consuming and expensive to hire the manpower to do it properly, they are simply doing everything electronically. This is not how it should be done according to the FCRA

Section 2 of page 39 of the FCRA states that if asked, the credit reporting agency must provide a copy of your original contract.

  1. (2) summary of rights requires to be included with agency disclosures. A consumer reporting agency shall provide to a consumer, with each written disclosure by the agency to the consumer under this section. (page 39)

This section means that the CRAs must answer your request by providing you with copies of the original documents you signed.

Section (2)(e) of page 39 says that if the accounts are outdated or cannot be verified, they must be removed.

  1. (2)(e). A statement that a consumer reporting agency is not required to remove accurate derogatory information from the file of a consumer, unless the information is outdated under section 605 or cannot be verified. (page 39).

There are two parts to this section: one states that if your negative entries are outdated they have to be removed, and the other, that the CRA must verify that the account is valid.

Section 1 of page 40 states that the CRAs must provide a copy of the original contract you signed which they don’t have.

3.(1) a business… shall provide a copy of application and business transaction records in the control of the business entity, whether maintained by the business entity or by another person on behalf of the business entity. (page 40).

This section states that the CRAs must provide you with a copy of the original application or documents you signed when you made a business transaction or applied for a credit card.

They do not have these on file because they received everything electronically.

(the most significant issue, with signature of a faxed or scanned document, is whether it can be proven that the party, which purportedly signed the contract, did in fact sign it.)

Section (2)(b) states that the credit reporting agencies must have your application on file as proof of verification.

  1. (2) verification (b) of the information in the consumer’s application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on credit worthiness or insurability. (page 5).

This section states that in order for you account to be considered verified, your credit application – or a copy of the original document – must be provided. Creditors and lenders have this in their possession, not the the CRAs.

Since the credit reporting agencies do not keep your application on file, they do not have the right to report your information.

According to the FCRA, proper verification requires that the CRAs must have copies of the original signed credit applications in their files.

The goal of the dispute with the CRA is not whether your reported information is valid or not, but whether the CRAs have the right to report your negative items unless they can provide a copy of the original signed credit application.

If requested properly you will force them to delete your negative entries because they don’t have verifiable proof those accounts belong to you.

According to the FCRA all CRAs must provide a copy of verifiable original creditor documentation. If they cannot provide this verification then according to the FCRA all those items are deemed unverified. And all unverified accounts must be deleted.

We use the proper sections of the FCRA in our paperwork in order to get the unverified negative entries removed.