Utilizing Credit Repair Services Legally in North Dakota
Many credit repair agencies lure customers by saying that bad credit happens to good people. In fact, they truly are on to something because U.S. government agencies like the FTC note that many Americans face financial crises at some point in their lives.
However, people with huge amounts of debt and seemingly insurmountable bad credit often come through their individual monetary crisis by utilizing credit repair services. North Dakota residents can use this form of credit help by knowing what it is by definition and what advantages typically are available to people who use legitimate credit repair options.
North Dakota Credit Repair Services Defined
Unlike some states, North Dakota does not offer much as far as a legal definition of credit repair services. However, most states consider such a business to be legitimate if it can help people cleanup or improve their credit histories and ratings, help secure an extension of credit from clients’ existing creditors, or offer advice and information about how to repair and maintain credit.
Many states also regulate credit repair services with laws designed to ensure that these entities genuinely help clients rather than take advantage of them. These laws are applied to for-profit organizations and businesses rather than 501(c)(3) credit repair non-profits, lawyers, lenders, brokers, and dealers.
By law, credit repair services in most states cannot promise to remove bad credit from people’s histories or raise people’s scores without going through legal avenues like disputing information reported to the credit bureaus. These entities likewise cannot use false information when advertising, guarantee results, or offer other false premises that could cause people to believe that the credit repair process is easier or less expensive than it can actually be.
Why Use Credit Repair Services?
So why should anyone use credit repair services if the process can be lengthy or cost money? In fact, legitimate and high-quality credit repair companies and organizations can help people navigate rules and laws that may at first glance seem complex and unfair.
One of the most important elements in repairing credit, for example, involves checking one’s credit report for inaccuracies or false information. People typically are encouraged to check their reports one a year. Most states allow people to order at least one credit report from at least one credit bureau on a yearly basis.
People who see wrongful or false details on their reports are advised to dispute the entries immediately. However, making such a dispute requires that people follow a precise process. If they are unsure of what steps to follow or want to know that their disputes are being taken seriously, people may allow a credit repair service to help them with this task.
Another key advantage that centers on using one of these services involves being able to pay a single monthly payment toward all of the debts listed on people’s credit reports. A service may be able to consolidate all of a client’s debt from most of the person’s creditors and then distribute the payment each month among the various creditors until each debt is paid in full.
Many creditors will agree to such terms and even eliminate penalties and interest in return for a regular monthly payment. Credit repair services, however, may be unable to work out such an arrangement for back taxes, owed child support, defaulted student loans, civil judgments, and other government-related debts.
Creditors that receive payments from the credit repair service may cease their debt collection efforts. Clients no longer have to worry about phone calls, letters, and court judgments as long as they make their monthly payment to the service each month.
People who have questions or concerns about credit repair services in North Dakota may find answers by contacting their state attorney general’s office. Credit repair services in other states typically have to pay a surety bond to state attorneys general; the bonds are held for up to two years after a service ceases operation in the state.
North Dakota residents may organize and deal with debts and poor credit by utilizing credit repair services. Before they sign up for these services, however, they may benefit by learning what credit repair is and is not as well as what advantages it may offer.