Only a few Steps away from Financial Freedom
According to the Ministry of Government Services a consumer should take into consideration the following information related to Credit “Repair” CREDIT CONSUMER PROTECTION
“Buy now, pay later!” This phrase has become a mantra for many who embrace the credit concept. But when the bill comes and you have no way of paying it, debt begins to spiral out of control.
That’s when the “Fix bad credit…fast!” line starts to look appealing. And it’s everywhere
Desperate people are often disillusioned when a credit repairer promises to fix their credit. In reality, they often only add to the debt by requiring payment for accomplishing nothing.
If a client is thinking about using a credit repairer or want good advice regarding credit,
A Clients Consumer Rights
Quick Tips on Managing Credit
How to Improve A Clients Credit
If a consumer needs to improve their credit profile, they should start by asking the credit reporting agency that holds his/her file to show them what is in it. This is something they are required to do under the Consumer Reporting Act. If they find anything that is wrong or incomplete – and can prove it – the agency has to correct it, make the information complete or delete it. If their file is corrected, the agency has to inform anyone they can identify who has been given the old information in the past six months to a year.
The only sure way to improve a poor credit rating is to work with creditors and allow time to pass to show that your payment habits have improved. Consumer reports should not contain a bankruptcy discharged more than seven years ago unless you have declared bankruptcy more than once.
From a Clients Consumer Files
The case of the bankrupt consumer
Not every consumer who wants help with his/her credit situation can avoid declaring bankruptcy, even with the help of the credit experts at member organizations of the Ontario Association of Credit Counseling Services. But some consumers report that they have paid credit repair companies up to $1,000 to “clean up” their credit ratings only to discover later that it couldn’t be done.
In one case, a bankrupt man paid more than $900 to a credit repair company to fix his credit rating, with no results. He had found the company through a newspaper ad, and when he visited them, he was told they could fix his credit rating by purging the bankruptcy from his credit file. He signed up and paid in advance. (Note: Prepayment for credit repair services is against the law under Ontario’s new Consumer Protection Act.)
He was told that the company would make all appropriate contacts and that if he contacted the Ministry of Government Services (the former Ministry of Consumer and Business Services) directly, his contract would be cancelled. (The ministry regulates credit reporting agencies in the province.) However, if the consumer had called, he would have learned that the credit repair company could not have his bankruptcy removed from his record. Only time can mend the past; a consumer bankruptcy cannot be included in the credit file more than seven years after the consumer is discharged from bankruptcy.
He also would have learned that he should not prepay for credit repair services and that, if he does, he is entitled to his money back on demand. However, the consumer called the ministry only after he could no longer reach the credit repair company. It had gone out of business, closed its doors and could not be found. The consumer was not only bankrupt, but out-of-pocket a further $900.
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