How to Learn About Debt Collection Laws and Credit Repair

It's always a good idea to know your rights when it comes to debt collection and your credit report even if you are in good standing with all of your creditors. You never know when the unthinkable might occur or when a friend or family member may need your help with accurate information in a crisis.

Instructions

1

Read the FCRA (Fair Credit Reporting Act) and the FDCPA (Fair Debt Collection Practices Act). Print out a copy of each and keep it somewhere where you can refer to them when and if you need to. (All links provided below)

2

Don't listen to your lender. As much as we'd like to believe that our lenders have learned all there is to know about credit management in their line of work, the sad truth is that most of what they know comes from what customers and other lenders have told them. Laws can change frequently and hearsay cannot be considered accurate information. The recommendations lenders make can sometimes make your credit situation worse, not better.

3

Find supportive forums. The web is littered with credit forums. The regulars on these forums have usually already learned the ins and out of credit and debt management and have a lot to teach for those that are willing to listen.

4

Don't believe anything a collection agency tells you. While collection agencies are prohibited from "misrepresenting" themselves they are not prohibited from legally misrepresenting information. It's in their best interests to tell you whatever they feel will get you to pay them.

5

Seek out professionals. Don't make an appointment at a debt consolidation/debt management company to learn about paying your debts and improving your credit score. The employees there will very rarely have the information that you are seeking. In most states starting a debt consolidation firm only requires a normal business license and not any specialty training for employees other than a basic overview of the nature of the business.

6

Get a free consultation with a credit specialist or a credit attorney. You can usually find a credit specialist or credit attorney that would be more than happy to give you a free consultation and answer your credit and debt management questions. Both have special training and can give your case the one on one attention that it needs. Note that I said credit attorney and not bankruptcy attorney. More than once I have seen bankruptcy attorneys give wrong information to their clients when it comes to credit because that is not their field and they do not keep up with changing laws and regulations. Be careful.

7

Become familiar with Whychat. Whychat is a credit professional who made a name for himself on the internet fighting illegal debt collection practices. He runs a website littered with valuable free information and links to help anyone learn as much as they can about credit and credit repair ( http://whychat.5u.com/ ).