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FTC Attack on Credit Repair Companies

The following are excerpts taken from the FTC Website under the topic of Credit Repair and Legacy's rebuttals to FTC claims and opinions:

FTC: If you see a credit repair offer don't believe (the) claims: they're very likely signs of a scam. Here's how to tell if the company behind it is up to no good:

The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

LEGACY's Answer: We uphold the CROA (Credit Repair Organizations Act) and do not charge our clients any credit repair service fees until after work has been completed. Each month our clients are charged a service fee, but it is for the previous month's worth of work we have completed on their behalf.

For more info read Credit Repair Organizations Act.

FTC: The company doesn't tell you your rights and what you can do for yourself for free.

LEGACY's Answer: We absolutely tell clients their rights. We also are very clear about the fact that clients can repair their own credit. Just call any member of our Enrollment or Customer Service Team and they will tell you the same. We also provide the same explanation in our FAQs section on our website - Can I Repair My Own Credit?

Ask yourself this the next time you get your oil changed, eat at a restaurant, hire someone to mow your lawn or clean your house, or any number of services you use; could I do this myself? Answer: more than likely; yes. You hire people to do things you don't have time, don't want or simply don't know how to do. Does the person providing the service tell you that you could be doing these things yourself? Answer: more than likely; no. But, Legacy does.

Next time you go into McDonald's, see if the cashier says, "You know, you really could make your own Big Mac. Here's the recipe. Oh, and let me give you some of the secret sauce to take with you."

FTC: The company recommends that you do not contact any of the three major national credit reporting companies directly.

LEGACY's Answer: Yep, we do tell our clients that. We are representing the client and are performing services on their behalf. Consider someone who has hired an attorney to represent them in legal matters. Doesn't the attorney specifically instruct the client not to talk to their opponent? Why is that? Perhaps because the client may do or say something to compromise the integrity of the situation and sabotage desired results. Legacy takes the same stand. We have a very precise, time-tested method that, if followed accurately, will prove successful. If our client personally contacts the bureaus in addition to our correspondence, our efforts may be rendered futile.

FTC: The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

LEGACY's Answer: Yep, that's true too. Here's the deal, according to the FCRA (Fair Credit Reporting Act) all information on a credit report must be accurate, timely and verifiable - repeat, VERIFIABLE - in order for it to legally remain on a report. If an item does not meet this criterion, the consumer is allowed to dispute it. The bureaus and creditors are given 30 days to provide adequate and documented evidence to verify the information. If the item cannot be verified, it must be removed. Credit bureaus do not verify information before placing it on a credit report. This alone could result in 40% of your credit report being inaccurate in one way or another.

Considering the lucrative profit the bureaus make by selling our information over and over, we are merely asking them to do their job by making sure what they are selling is accurate, timely, and verifiable.

Legacy simply requires that the bureaus and creditors uphold the law. When violations occur, the bureaus and creditors are required to remove the negative item from your report; and we're here to make sure that happens.

Legacy believes in our constitution, which states that the client is innocent until proven guilty; unlike the bureaus, who seem to believe that the consumer is guilty until proven innocent.

For more info read Laws that Protect the Consumer.

FTC: The company suggests that you try to invent a "new" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.

LEGACY's Answer: Legacy engages in no such practices. Although it is possible, and many consumers have been known, to establish a "clean slate" by using an EIN (Employer Identification Number) which has the same 9-digit format as an SSN (Social Security Number), it is also fraudulent. It's a federal crime to lie on a loan or credit application, to misrepresent your SSN, and to obtain an EIN from the Internal Revenue Service under false pretenses.

In addition, if someone should already have an established file, a brand new credit report with nothing on it is suspicious. Plus, no credit history can be just as detrimental as a tarnished credit history. This so-called "clean slate" won't get the consumer very far as creditors aren't likely to lend money to those who don't have an established history that demonstrates creditworthiness.

In conclusion,

There are credit repair companies that may not do things by the book, whether intentionally or ignorantly. And, again, the same as in any industry, there are companies that are misleading, charge hidden fees, make promises that they can't keep, among other grievances. Legacy is not among them. And by no means are we a "scam".

Legacy Legal is a legitimate company that upholds Federal Law and is honest in our dealings (both internally and externally). It is advantageous to both us and the client to be upfront and honest about what we do and why we do it.

Even though the FTC has been branded "the consumer watchdog", they don't always provide the most accurate information that truly helps consumers.

Legacy is a true consumer advocate. We help our clients protect themselves by providing straightforward information about the bureaus, creditors, collectors and other players in the credit industry. And we legally help our clients get the credit they deserve.