You may be wondering about the role of a credit repair specialist if you are considering hiring one to help clean up your credit report, or you may be thinking about becoming one of these specialists yourself to help others fix their credit.
For those who need credit repair services, you can better understand whether hiring a specialist is in your best interest and determine which specialists are right for you. And if you’re interested in becoming a credit repair specialist, it’s essential to understand the role so you can achieve success for yourself and your clients.
Credit Repair Specialist Certifications
There are no specific professional requirements or licensing for credit repair specialists. This can make it challenging to know who is properly qualified to work on your credit and who you should steer clear of.
Current laws regarding credit repair companies aim to protect consumers from unscrupulous credit repair specialists and other unsafe credit repair companies. The law outlines what credit repair specialists can and cannot do, but it does not specify who can and cannot provide credit repair services.
Although there is no law or regulatory body for credit repair specialists, there are professional organizations that offer education and certifications that can help weed out unqualified credit repair specialists. Look for a credit repair specialist who has been certified by a nonprofit organization like the Association of Credit Counselors or the Financial Planning Association, not from a credit repair software company.
Flexible Education Requirements
There are no educational requirements to become a credit repair specialist, but obtaining a degree or experience in finance or a related field can be beneficial.
Knowledge a Credit Repair Specialist Should Have
A credit repair specialist should be knowledgeable about the laws affecting credit and credit repair. This includes:
- The Credit Repair Organizations Act
- The Fair Credit Reporting Act
- The Fair Debt Collection Practices Act
- The Accurate and Fair Credit Act
Credit repair specialists should also understand the government agencies involved in consumer rights, such as the Federal Trade Commission and the Consumer Financial Protection Bureau. They should be aware of the credit repair laws in their state and the licensing requirements for credit repair organizations and debt collectors.
State Restrictions on Credit Repair
In Georgia, offering credit repair services is considered a criminal offense.
When searching for credit repair specialists, you will find those who offer services both online and locally. You can often find a list of certified counselors online. From there, check potential agents with your local consumer protection agency and the state attorney general’s office. As a final step, ask the agency for any free information they have about their services. You should be able to obtain free information without having to provide any details about your specific case.
Independent Credit Repair Specialist vs. Employee
Some credit repair specialists may work with a credit repair company or a multi-level marketing company. If this is the case, it is essential to vet the organization in addition to the individual specialist you are working with. When working with multi-level marketing companies, be aware that the person who signs you up may not be the one working on fixing your credit. Additionally, with a credit repair company that has a multi-level marketing structure, you may be recruited to join the business and recruit others.
The Law for Credit Repair Specialists
A credit repair specialist may be subject to the Credit Reporting Organizations Act (a law that prevents credit repair companies from exploiting consumers). Additionally, they may also be subject to the telemarketing sales rule.
They must
Credit repair specialists should only charge fees after performing services for you. They should not guarantee specific results or promise that information will be removed from your credit report. Credit repair specialists are required by law to provide a written contract before performing any services on your behalf. They should also not advise you against contacting credit reporting companies directly.
They must ensure that you are aware of your rights to request information on your own for free. Credit repair specialists must give you a three-day waiting period during which you are allowed to cancel your contract. They should also not ask you to waive any rights.
What Does a Credit Repair Specialist Do?
Credit repair specialists review your full credit reports from all three credit bureaus. They may ask you to bring your credit report or may use software to extract and monitor your credit report information. A knowledgeable credit repair specialist will examine your credit report for information that can be removed based on the Fair Credit Reporting Act.
What to Watch For
Trusted specialists will not recommend disputing everything in your credit report just to see what gets removed and what stays.
Credit repair specialists help prepare appropriate letters for credit bureaus and debt collection agencies. These letters should be specific to your credit information, not generic dispute letters that may be ignored by the credit bureaus. They may send the letters on your behalf or provide the letters to you to send.
Professional credit repair specialists can offer a variety of options for how to handle negative items in your credit report, and they can outline the positive and negative aspects of each option, helping you to make the best decision based on your circumstances and long-term credit and financial goals. These options may include disputes, debt repayment, negotiating the removal of information, settlements, or waiting for the reporting time frame to expire.
Information Security and Privacy
The information that credit repair specialists collect from you can be used for identity theft if it falls into the wrong hands. Privacy is extremely important for maintaining your credit repair results. Credit repair specialists should have a system in place to protect their clients’ privacy. They should have a written privacy policy that informs you of what information is collected and how it is used and not used. If your information is submitted electronically, ensure that it is encrypted and securely stored to prevent fraud and identity theft.
Source: https://www.thebalancemoney.com/what-does-a-credit-repair-specialist-do-4175466
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