What Does a Credit Repair Specialist do?

So, you were looking up credit repair companies and came across the title "Credit Repair Specialist." Now, you are interested to know what they can do for you. In this post, we will guide you through everything a credit repair specialist does, including their responsibilities, expertise, and how they can help you.

Work profile a credit repair specialist

A credit repair specialist works with a credit repair company to repair an individual's credit report. They check your entire credit report from the three credit bureaus: Equifax, Experian, and TransUnion, and access your credit report to carefully scrutinize it in search of details that the Fair Credit Reporting Act (FCRA) allows to be removed.

A credit repair specialist prepares letters to credit bureaus and debt collection agencies. Unlike the generic dispute statements that the credit bureaus might disregard, these are letters customized to your unique situation and credit information.

Methods for dealing with negative items on credit reports that credit repair experts can advise include: disputing, settling, negotiating removal, and waiting through the credit reporting limit period.

A credit repair specialist ensures that clients know their rights and that their interests are protected. They offer guidance on how to proceed based on the customer's situation and future objectives. In addition, they are responsible for safeguarding their customer's confidential information.

  • Pro-Tip: A 609 letter is a credit repair technique that allows consumers to ask credit bureaus and collection agencies to substantiate/validate the accuracy of negative information on their credit reports. The Fair Credit Reporting Act (FCRA) has a Section 609 that protects customers against unethical credit and collection tactics.

Two types of credit repair specialists

Employed:

If the credit repair specialist works with a multi-level marketing firm or a credit repair organization, it's crucial to thoroughly check out both the company and the professional you're relying on. Keep in mind that the individual who takes care of you when hiring a multi-level marketing firm may not be the person working on your rating. Additionally, a credit repair multi-level marketing firm may ask you to join the company as a member.

Independent:

If you hire an independent credit repair specialist, we still advise that you research their reputation, credentials, and expertise. Based on this, at least with an independent expert, you'll have one point of contact, and you'll know the person who will be taking care of your credit score.

How does the law regulate them?

The Credit Reporting Organizations Act and the Telemarketing Sales Rule may also apply to the credit repair specialist.

The laws that apply are as follows:

  • A credit repair specialist must only charge you after providing a service(s).
  • They should not promise to delete anything from your credit record or make guarantees on particular results.
  • As mandated under law, they must give you a formal contract before working on your behalf.
  • They should not suggest that you avoid contacting credit reporting agencies by yourself.
  • They should grant you a three-day window to break your contract with a credit repair provider.
  • The credit repair specialist should not ask you to give up any rights.

What certifications should they have?

Credit repair specialists are not subject to any particular licensing or training criteria. Because of this, it may be hard to distinguish between credit repair professionals who are genuinely qualified and those you should avoid.

The existing credit repair industry legislation aims to safeguard customers. The legislation specifies what credit repair specialists are permitted and forbidden to do, but it does not indicate who may or may not provide credit repair services.

Despite the need for more relevant authority for credit repair specialists, there are professional organizations offering education and certification that can help differentiate qualified specialists from unqualified ones. 

Ensure the credit repair specialist you engage has the certification from a non-profit organization, such as the Association for Financial Counseling & Planning Education (AFCPE) or the Credit Consultants Association (CCA).

Privacy and security

Your identity could get stolen if the data a credit repair consultant obtains from you gets mismanaged or misused. Managing your credit repair results depends mainly on confidentiality. Credit repair specialists should have mechanisms to safeguard their customers' information. Terms of service should outline how data will get used and how it will not get used. To avoid fraudulent activity, encrypt any digitally provided data and save it safely.

  • Pro-Tip: Information obtained by consumer reporting institutions, such as credit bureaus, is protected by the Fair Credit Reporting Act (FCRA). Many new provisions were introduced to this Act by the Fair and Accurate Credit Transactions Act, most of which deal with record accuracy and identity theft.

How to pick one

A degree or prior work experience in finance or a relevant profession can be beneficial. Moreover, there are no specific educational requirements for credit repair specialists. A credit repair expert should be familiar with the legal guidelines governing credit and credit repair, which include the following:

  • The Credit Repair Organizations Act;
  • The Fair and Accurate Credit Transactions Act;
  • Fair Debt Collection Practices Act;
  • The Fair Credit Reporting Act.

Credit repair specialists must be familiar with the Federal Trade Commission and the Consumer Financial Protection Bureau, two governmental organizations that protect consumers' rights. In addition, credit repair specialists must know the bond criteria in their jurisdiction for debt collectors and credit repair businesses.

Other credit repair specialist criteria are listed below:

  • Understanding of information, security, and privacy;
  • Having some minimal expertise in finance or a related sector;
  • Ability to identify credit problems affecting consumers;
  • Fixing credit reports to start improving their scores using troubleshooting and logical skills;
  • Being certified in credit repair may help.

Final Word 

If you are a consumer looking to hire a credit repair specialist, you must understand the criteria required of a specialist. With this knowledge, you can now find a qualified credit repair specialist and successfully raise your credit score.

About the author Greg Lorenzo

Greg is a financial expert who has been advising his audience on loans for over 10 years. He has a wealth of knowledge and experience in the area, and he is passionate about helping people get the best possible deal on their loans. Greg is an expert in negotiating loans, and he has a proven track record of getting his clients the best possible terms. He is also a strong advocate for financial literacy, and he regularly gives workshops and seminars on the topic.

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