How does credit repair work?

Credit repair in Pennsylvania starts with understanding the law. The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) are two of the most important pieces of legislation that govern credit repair in the state. Under the FCRA, consumers have the right to dispute errors on their credit reports directly to the credit bureaus. If the dispute is found to be valid, the credit bureau must correct the error. The FDCPA prohibits debt collectors from engaging in unfair and abusive practices when trying to collect a debt. This includes calls before 8 am and after 8 pm, harassing calls, and calls at work. It also bans threatening or false statements. Consumers can also use a credit repair company to improve their credit. Credit repair companies will typically work with lenders and debt collectors to create a payment plan that helps reduce or resolve the debt. Additionally, they will work with the credit bureaus to request removal of negative information, such as late payments and judgments, as well as to dispute inaccurate information. When seeking credit repair, it is important to make sure the provider is legitimate and will work within the bounds of existing legislation. If not, consumers can end up in a worse situation than when they started.

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How does credit repair work?

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