In today’s economy, why do we settle for trying to quick fix client’s credit challenges? There are many organizations that claim credit repair is the only way to get clients qualified. Although credit repair does help the past, it does nothing to establish a foundation to help client’s future.

In the program we have established, we have created a way to actually help clients achieve Financial & Credit Independence. No more quick fixes to get clients qualified but a real path to freedom. No longer do clients just want credit repair; they want answers and guidance to prepare for their future.

After completing the program with Financial & Credit Independence, clients will have a better understanding of what credit is, how it works, and how it affects their lives. Their credit scores will increase, and they will have put into practice a plan for financial freedom.

News:
It seems to me that I am hearing a panic around the industry for clients getting denied because of an account in dispute. FCI has developed a system to help in this situation to get the dispute status removed.

The reasoning behind this extremely frustrating dilemma is because of a mishap in the new FICO scoring system. What has been happening is an account in dispute has not been affecting the credit score because the computer is not recognizing the account in the system. Thus creating a huge jump in the fico score of a client. Fannie Mae has now put in place, in their system, any account that is under dispute status will automatically be flagged and or denied. However why should we suffer for the incompetence of a credit scoring system and a company that is putting a strain on our economy?

Because this is new territory for all us, and many loans are getting denied (credit scores even above 750), the Federal Trade Commission is being hit every day with complaints and this will eventually work itself out, but until the trusted government (I say sarcastically) steps in to take over once again:

Did you know?

The Fair Credit Billing Act (FCBA) states a client may question:

• unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• charges that list the wrong date or amount;
• charges for goods and services you didn’t accept or weren’t delivered as agreed;
• math errors;
• failure to post payments and other credits, such as returns;
• failure to send bills to current address – provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
• an explanation or written proof of purchase along with a claimed error or request for clarification

The Fair Credit Billing Act also stipulates that the creditor provide lawfully requested information concerning clients account upon request in a timely manner. Therefore a client that disputes an account and does not ask the creditor to state account in dispute this is a violation. Also upon request the creditor WILL have to remove the information.

Further more if a client is acting in the guidelines of the FCBA and gets denied credit because the creditor put a dispute on their credit, this violates the Equal Credit Opportunity Act.

§ 1691. Scope of prohibition
(a) Activities constituting discrimination
It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction—

• on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to contract);

• because all or part of the applicant’s income derives from any public assistance program; or

• because the applicant has in good faith exercised any right under this chapter.

The Equal Credit Opportunity Act clear states:

The creditor may not threaten your credit rating or report you as delinquent while your bill is in dispute. However, the creditor may report that you are challenging your bill. In addition, the Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants who exercise their rights, in good faith, under the FCBA.

Simply put a client cannot denied credit simply because they disputed a bill.
*(All Acts provide through the FTC website)

FCI now has in place a series of letters that will help client in this situation. If you have a client that is being denied approval for a loan because of a dispute status we can help the process, by sending violations to the credit bureaus as well as the creditors. Please note that it will take some time because of all the new policies in place with dispute letters, account statuses, and response time through mail.

Credit Tips:
Avoiding this situation is unrealistic as so many clients are uneducated in the credit process. Clients hear all the time, “Well just dispute it and if they can’t verify the info it gets removed in 30 days.” Clients need to understand what the law states and through the FCI process we help them have a better understanding of how to properly dispute items, what can or should be disputed, and how to properly handle any negative accounts.

Do not have client dispute an account that they know is theirs to try to boost credit rating.
Do not have client dispute all lines in their credit file.
Do not tell clients a quick fix to their credit challenges is to dispute collection accounts and negative accounts.

FCI has put in place a step by step guidance to help clients. We educated client on what they can do themselves for free, how they can help their current situation, and proper steps needed to help get them qualified.

If we can be of any assistance to you and your business please contact us.

Credit is something that many of us have to learn rather than be taught. We either succeed of fail and through our trails we learn what to and what not to do. Why do we put to chance something that dictates our entire life? Credit use to be used to determine if a bank should lend to you. Now your credit score determines who you are as a person. It affects more than auto and mortgages. Credit is now affecting peoples lives. 78% of employers look at credit first because of the risk they are taking. Someone with a lower credit score is more likely to steal from the company or bring their financial troubles to work, thus hindering their work.

Credit doesn’t stop there. In order to get certain amenities you must have qualifying credit for such things as electricity, cable, telephone service (both cell and home), Internet, etc…So why leave this all up to chance? Credit is something Financial & Credit Independence specializes in. We are dedicated in helping every individual obtain knowledge about how credit works and how they can learn how to maximize their credit scores.

The lack of knowledge when discussing the word “credit” can be terrifying. Because credit affects so many aspects of our lives, not having the proper credit education can make issues involving credit frightening for most. Some people do not know that having bad credit affects all points of their lives. This, in turn, causes people to go to great lengths to avoid being embarrassed by their credit (i.e. going to “buy here, pay here” car lots, calling utility companies that offer low quality services, or renting furniture and/or appliances versus buying them out right.)

Welcome to FCI. I’m constantly updating my site so pardon the dust. If you see anything regarding the site that doesn’t look right, please notify us by using the contact form.

I’m launching a Social Networking drive for my business and would appreciate it if you follow me on twitter, befriend me on myspace and facebook. If you don’t have accounts with either of these outlets, get setup. Its a lot of fun.