Credit Repair Vs Credit Restoration, How to Solve A Case in Business Analysis
By Thyra Delos Reyes
There is a slight difference between a credit repair and credit restoration company. A lot of people don’t even know that there is a debate on this matter, but, in reality, there is a huge difference. To start with, when does credit need this kind of service? Someone would apply to get a credit restored, because they want to start a small business, buy a house, refinance it or simply improve their jobs.
What is a credit repair? It is the removal of any negative or deprecating factors from a consumer’s credit report in financial analysis. Some of them are tax liens, late payments, charge-offs, collection accounts, foreclosures, bankruptcies or any other negative information. The process here is done by disputing these items in a credit bureau. A client can choose from sending a letter to the credit bureaus or by disputing online. Such service can be consulted from a consumer or credit repair company that they are able to hire.
A credit repair company instigates only just one to three laws in their dispute letters. Those laws are the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA) and the Fair and Accurate Credit Transactions Act (FACTA). In terms of client acceptance, it follows a service of welcoming any client, who wishes to restore their credits. In letters, it uses canned/boiler templates, which is different from what a credit restoration company has in letters. Moreover, only a few items, at a time, are disputed.
In comparison, a credit restoration applies pre-litigation strategies in its disputes, unlike in credit repair services. This in turn allows added consumer and commercial laws as well as documents in non-compliance. Such are the Credit Card Accountability Responsibility & Disclosure Act (CARD), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), Fair and Accurate Credit Transactions Act (FACTA), Updated Section 312 of the FACTA, Fair Credit Billing Act (FCBA), Federal Trade Commission Opinion Letters (FTC), Gramm-Leach-Bliley Act (GLB), Health Insurance Portability and Accountability Act (HIPAA), Real Estate Settlement Procedures Act (RESPA), the Soldiers and Sailors Relief Act (SSRA), the Truth in Lending Act (TILA), Truth in Savings Act (TIS) and Uniform Commercial Code (UCC). These can be used in combinations of 2 or 3 laws per client’s case, so that the maximum number of resources is reached. In terms of letters, credit restoration is able to draft custom letters whenever applicable. Compared with credit repair, in business analysis, a credit restoration company, also, disputes with the original creditor and not only credit bureaus. Why is this so? This takes place during more aggressive strategies followed in a case. Furthermore, it faces all accounts simultaneously and lets debt collectors undergo a vigorous verification process before winning a case.
Thyra works as a writer at Alphadore, a financial constulancy firm located in Dubai, UAE. It’s a one stop solution designed to help small business owners make smart financial decisions and achieve business goals. Visit the site now at http://www.alphadore.com.
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