The media, newspapers, internet are full of information, but sadly, much of the information concerning credit is inaccurate. Let’s check out some common credit myths:
Credit Myth: “The credit bureaus are government agencies.” Sadly and completely false. Credit bureaus are for profit companies. They collect data to sell to lenders and providers and are not affiliated with the government. They are governed under the Federal Trade Commission.
Credit Myth: “Credit Repair is against the law.” Yeah…I saved the very worst for last. Credit repair is completely legal. Federal law explicitly protects it. The Federal Credit Reporting Act and Credit Repair Organizations Act specifically states it’s legal for you both to repair your own credit, or hire someone to do it on your behalf. There are certain requirements of credit repair organizations, as outlined in Credit Repair Organizations Act, to govern them, and therefore, it is definitely a legal practice.