The following information is provided without charge as an educational service to consumers who are, 1) in disagreement with information they have found in their confidential Credit Reports published by the various national credit bureaus and, 2) considering the use of professional Credit Repair firm to assist in the removal of such information. |
The people who believe credit repair is “immoral” include the credit bureaus, commercial lenders and most creditors. Obviously, the removal of negative information before the maximum time specified by law works against their best interests so their position is predictable.
But the pro “immoral” group also includes a number of Christian organizations, and other well-meaning people, who believe that if someone has actually committed a bad credit practice, they should have to carry the related negative information on their credit reports until the system releases them. In other words, there should be no grounds for exoneration before the specified time because credit reports would no longer reflect the “truth.”
The reality of our time is that consumer credit is very easy to obtain. In fact, it is almost forced upon us through aggressive creditor marketing programs and consumers are typically granted more credit than is reasonably justified. The fact is we in America have become a people who have never been taught to live without credit and have actually come to believe we can’t live without it. Creditors are quick to take advantage of our lack of education, experience and wisdom.
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| 1.- |
Credit bureaus are private companies originally created by creditors to assist them in collecting slow paying debtors. They are in the business of collecting sensitive information about the private lives of everyone who has a social security number and they enjoy increasingly huge profitability as the bad debt problem in the United States increases. In no other sector of society could this invasion of privacy legally persist. |
| 2.- |
Credit bureaus are not government agencies or even quasi-governmental agencies. They carry no legal authority to regulate anything. |
| 3.- |
The so-called “statute of limitations” governing the length of time negative information is allowed to be published on credit reports (7 years for most reporting, 10 for bankruptcies) has NOT been set by the credit bureaus. The time limits were set by the Federal Government in the Fair Credit Reporting Act of 1970 specifically to PROTECT consumers from the abuses of credit bureaus. |
| 4.- |
The time limits imposed by the legislation of 1970 are maximum limits and do not preclude the possibility that negative information can be dropped before the expiration of the time limits. Credit bureaus are not required to publish negative information; they are allowed to. |
| 5.- |
Estimates are that 50 to 80 per cent of all credit reports carry some form of inaccurate information. Much of this information is damaging to consumers who are largely unaware of how to correct it. |
| 6.- |
Information on a credit report is no more than an allegation and a consumer has the legal right to appeal that allegation by utilizing the available legislation. |
In sum, credit bureaus are the central focus of a secular system for profit that actually increases the bondage that comes from credit. They are paid for by giant multinational corporate clients and are not monolithic agencies with some official authority. They have a history of consumer abuse and are notoriously error-prone. From generic target marketing lists to invasive personal investigations, they collect a pool of information larger than any in the world. The loser is the one who values privacy as reputations can be ruined by sloppy collection and dissemination of information.
Another of the things that is often not considered with the morality issue is that credit reports are now used for more than just credit evaluation purposes by creditors. They are also used by landlords to qualify prospective tenants and by an increasing number of employers to evaluate job applicants. Regarding the latter, it frequently happens that individuals are denied access to the more lucrative segments of the job market because of negative credit history.
We should also consider that many people have negative information on their credit reports because of a temporary incident in their lives. For example, an increasingly common problem for the American family today is when one of the adults loses his or her job and the family is unable to make all the various monthly payments until new work is found. American companies are no longer loyal employers for the long term and are increasingly driven by the bottom line. Or, another problem can occur when one of the family members is unexpectedly medically unable to work for a period of time and bill paying falls behind. These are not isolated incidents; in fact, 50 percent of all personal bankruptcies are related to a temporary medical problem.
Here at Cornerstone Financial Ministries we have concluded that it is indeed fair and reasonable, and unquestionably moral, for consumers to avail themselves of existing legislation to protect their interests to the fullest extent possible. To this end, we see ourselves as an advocate for consumers and make ourselves available to educate and assist them in taking practical advantage of the legislation. We also have a responsibility to help consumers avoid future credit abuse and make related counseling available, free of charge, to those who are willing to receive it. |
