Important Tips about Indiana Credit Repair Laws
Indiana lawmakers have created guidelines designed to protect people who want to improve or cleanup their credit records, histories, and ratings. The specifics of these laws are available on the website for the state of Indiana. People who want to raise their credit scores and improve their credit records are encouraged to read these details before they hire a credit repair service to help them with this task.
Common Ploys of Indiana Credit Repair Services
Many credit repair companies in the U.S. and in Indiana use common ploys to get people to sign up for their services. Some of the things that they promise people involve being able to remove negative information like court judgments, garnishments, bank levies, bankruptcies, collections, and other debt activity. Some of these businesses also promise that they can help debtors create a new credit identity and perhaps even get a new Social Security number.
However, Indiana lawmakers remind citizens in the state that these services are not realistic and should not by state and federal law even be promised to clients. These companies prey on people’s desperation to regain good credit and high credit scores. They take advantage of clients by charging high fees and by hiding the fact that most factual negative information cannot legally be removed from people’s files until the entries reach their lawful time limits.
Credit Repair Reminders for Indiana Citizens
Indiana lawmakers have made available on the state’s website a number of precautions that people should keep in mind before signing up for credit repair services. The first reminder centers on the fact that negative and factual information cannot legally be removed from one’s credit file. The negative entry must expire on its own.
Federal and state law stipulate that bankruptcies can remain on a person’s record for up to 10 years. Debts like defaulted credit card bills, medical bills for which garnishment was necessary to collect the debt, and delinquent bank loans can stay on the record for up to seven years. As long as the debts are factual, they cannot be removed through a dispute.
However, people can remove entries that are fraudulent, misplaced, outdated, or outright wrong. If they can prove any of these circumstances, people can request that the information be removed from their file.
Likewise, it is illegal for any credit repair service to set up a new credit file for a client. People must deal with the credit file under their own Social Security number. No credit repair business can establish a new file or secure a new Social Security number for anyone.
Indiana lawmakers also remind people that they can order a free copy of their credit report once a year to check for wrongful or fraudulent information. They can dispute these details themselves without having to hire a service to do it for them. All three major credit reporting bureaus indicate how to make a dispute on their websites.
Finally, people in Indiana who were scammed by a credit repair service can pursue legal recourse under the state’s current law. People can sue the service in court and recoup twice the amount of their damages or $1000 plus attorneys fees.
Indiana Requirements for Credit Repair Services
Indiana allows companies and individuals to operate as credit repair services as long as they comply with several important requirements. Indiana first requires that these services provide a full list of disclosures to clients including the fact that people can clean up or improve their credit rating, history, and record on their own.
Second, the state requires that credit repair services provide clients with a full three days to cancel or change their minds about their services. The credit repair entity cannot penalize or charge clients during that three-day cancellation period.
Finally, credit repair services must set aside $25,000 that will be used as a surety bond to satisfy customer claims. This amount of money may be drawn upon if the service is sued in court and found civilly liable.
Indiana protects its citizens with credit repair services laws. People can act in their own best interests by knowing the boundaries and expectations of credit repair services in Indiana.