Many wonder if it’s ethical to attempt to remove bad credit issues from a credit report.  I say, “Yes, it is,” and here’s why.


Before we get to the meat of this, let’s first define what “Credit Repair” is.  I define credit repair as contacting the original creditor and making arrangements to satisfy the debt owed in exchange for correctly reporting the satisfied debt with the credit reporting system.


But what happens when the information that is reported is incorrect?  Incorrect amount owed…incorrect charge-off date…who is the original debtor…


The credit reporting and ranking system has been and continues to be unfair to American consumers. Many times creditors, most notably, Medical doctors or labs, will sell your outstanding debt to a third party collection company for .03 to .12 cents on the dollar.  I usually see this occur when your health insurance company has questioned a claim or has refused to pay the claim.  Your doctor or lab usually will not call you or send you a invoice for the amount owed and will immediately sell to a third party collection company.  This is just one of many examples out there and happens with credit card companies as well.


You are forced to participate in something we did not volunteer for and are punished for mistakes whether they are ours or not.  We cannot opt out of this system and no consideration is made for circumstances that are beyond our control.


A credit report should not be viewed as proof of bad credit, but rather simply an allegation.  Unfortunately, consumers rarely challenge the allegations. When my clients sign on to use our preferred credit attorney network for their defense, they are basically saying “please VALIDATE your claim” to the creditor or credit bureaus and entering a plea of not guilty.  The root of the problem is that the collection agencies are often in violation of how they report the information on the Consumers credit report; which affects the score.


The key to credit validation is it addresses the creditors on a compliance and legal level.  Credit Validation takes in the raw data from the credit report like the subscriber codes of each creditor that has reported to the Bureaus and takes in each line how they reported the information for each and every account.  The system automatically detects all the violations per account to address on the investigation submitted by the validation system (normally about 7 violations per account).


Examples of what violations are: not reporting charge off date right is a violation, not reporting original creditor is a violation, not reporting original account number is a violation, the list goes on…… The creditors/collection agency’s have to abide by the rules and regulations that the Federal Trade Commission puts in place on how they are reporting.


They must report it accurately, regardless if the debt is owed. For example: the date of last activity is usually being reported inaccurately (the number one violation) it should be the original creditors charge off date, not the date the collection agency purchased it, usually around .03 – .12 cents on the dollar. Most collection agencies do not report accurately and they typically put the charge off date as recent so they will more likely get paid on the debt they purchased.

Putting the creditors (the one actually reporting the derogatory credit item) or credit bureaus in the position of having to prove or confirm or validate their allegations is a major way someone can improve their credit.


Many times it is discovered that most credit report allegations are falsely based, and at that point, if the information is incorrect, the negative items are removed.


Our society has its roots in capitalism and the credit reporting system feed on this and uses consumer information to their advantage. The credit reporting system is not motivated by the terrible consequences bad credit can have on a consumer.  Profit margins – not consumer rights – are what motivate them.


Although the credit reporting system claim an error rate of less than 1%, studies performed by independent agencies show that mistakes occur at a rate nearing 79%.  One credit bureau admits to an error rate of more than 50%, but they still choose to err on the negative side rather than the positive.  Read that again…”mistakes occur at a rate nearing 79%”. 


And that’s why I offer to help my clients recover from this devastating hardship.  My clients are excited to fix their credit and to return to the credit economy and be fiscally trustworthy. My goal is to help my clients escape from people who prey on people with damaged credit.


So to answer the question posed at the beginning of this article, yes, I believe it is ethically sound to remove the record of a incorrect negative credit item from your credit report.


If you would like help or wish to discuss your situation, please contact my office @ 972.523.8353 or by email and we will discuss ways I can help you do this.  I look forward to speaking with you and getting your life back.

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