Discovering the Limitation of Credit Repair Services in Utah
People who are desperate to fix their credit often want to use the shortest and easiest route available to a higher credit score. In fact, as Utah’s Division of Consumer Protect observes no short route to better credit exists.
When your credit is blemished and your score is low, you have to utilize the available legal means to improve them. While legitimate credit repair services can help you, you should learn how they may be limited by state law and how the state regulates credit repair businesses in Utah.
Utah’s Credit Repair Services Law
Utah regulates the credit repair service industry in the state with its R152. Commerce, Consumer Protection administrative code. This code, which went into effect October 1, 2016, provides definitions of common credit repair services codes, such as buyer, challenge, credit report, inaccurate information, and others.
It also stipulates what a credit report company can and cannot legally offer to people who sign up for their services. For example, Utah stipulates that one of these businesses cannot legally dispute information on a client’s credit report without first having factual details that the entries on the report are wrong or fraudulent. The company must have a basis for saying that the information is outdated, inaccurate, unverifiable, or that there is an error or details omitted from it.
Further, Utah stipulates that the company must thoroughly investigate the entry to reach this basis and show its findings of its investigations in writing. The report then must be retained for two years.
Utah also clearly outlines what credit repair services cannot promise to clients. By this state code, these companies cannot promise to permanently remove negative information from a customer’s credit report. It also cannot offer services related to disputing credit report information without first investigating the client’s claim or for the intent of temporarily keeping negative yet accurate information from being reported on a client’s credit report.
Legal Credit Repair Services: An Overview
Utah’s Division of Consumer Protection reminds citizens in the state that they can perform many of the services offered by credit repair companies themselves. As the state reminds people, they legally can order one free report from each credit bureau each year. They also can order a copy of their report if they have been denied for credit anytime during the last 60 days.
Once people have their reports, they should then review the information on each copy to make sure that the entries are correct and up-to-date. If they find outdated, inaccurate, or fraudulent information, they can then make an official dispute with the bureau that issued the report. They can make the dispute for free; they will not be required to send in money or use a credit or debit card to pay for submitting the dispute.
Credit repair services do charge customers money for their services, which some people are happy to pay if it means that they can get help contesting information on their credit reports. For example, people who are busy throughout the day and do not have the time to send in disputes and follow up on them may be willing to pay for credit repair services. Likewise, people who are not confident in their own ability to dispute the entry in writing likewise may feel more comfortable allowing a service to help them.
In fact, legitimate credit repair services do exist and are ready to help customers work toward better credit. Like the state of Utah reminds people, the credit repair process takes time. No simple and fast way exists to better credit and a higher credit rating.
If a company promises to raise your score or says that it can remove poor credit from your report permanently, you should avoid that particular business. Likewise, credit repair services by law must provide an opt-out or cancellation time frame, which in most states is three days after customers sign their contract.
Utah closely monitors and regulates the credit repair industry in the state. Before you opt in for one of these services, you are encouraged to learn what credit repair is and is not in the state of Utah and what actions you can take yourself to get better credit.