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ispute is frivolous or
irrelevant, the credit bureau then must reinvestigate the
matter. The credit bureau must correct any information that it
finds is not reported accurately. Information that cannot be
verified must be deleted. If you disagree with the results of
the credit bureau's reinvestigation, you may file a brief
dispute statement explaining your side of the story. At your
request, the credit bureau will note your dispute in future
credit bureau reports.
Be aware that when negative information in your report is
accurate, only the passage of time can assure its removal.
Credit bureaus are permitted by law to report bankruptcies for
10 years and other negative information for 7 years. There is
nothing that you (or anyone else) can do to require a credit
bureau to remove accurate information from your credit file
until the reporting period has expired. Don't be misled by ads
aimed at people with bad credit histories, judgments, or
bankruptcies. Promises to "repair" or "clean up" a bad credit
history can almost never be kept.
How to Deal with Your Debts
A sudden illness or the loss of your job may make it
impossible for you to pay your bills on time. Whatever your
situation, if you find that you cannot make your payments,
contact your creditors at once. Try to work out a modified
payment plan with your creditors that reduces your payments to
a more manageable level. If you have paid promptly in the past,
they may be willing to work with you. Do not wait until your
account is turned over to a debt collector. At that point, the
creditor has given up on you.
Automobile loans present special problems. Most automobile
financing agreements permit your creditor to repossess your car
any time that you arc in default on your payments. No advance
notice is required. If your car is repossessed you may have to
pay the full balance due on the loan, as well as towing and
storage costs, to get it back. Do not wait until you are in
default Try to solve the problem with your creditor when you
realize you will not be able to meet your payments. It may be
better to sell the car yourself and pay off your debt than to
incur the added costs of repossession.
How to Evaluate Credit Repair Companies
If you are having trouble paying your bills, you may be
tempted to turn to a company that claims to offer assistance in
solving debt problems. Such businesses may offer debt
consolidation loans, debt counseling, or debt reorganization
plans that are "guaranteed" to stop creditors' collection
efforts. Before signing up with such a business, investigate it
thoroughly. Be sure you understand what services the business
provides and what they will cost you. Do not rely on oral
promises that do not appear in your contract. Also, check with
the Better Business Bureau and your local consumer protection
office. They may be able to tell you whether other consumers
have registered complains about the business.
Consumers who turn to such businesses for help sometimes
encounter additional problems. For example, debt consolidation
or other large short-term loans may have high hidden costs and
may require your home as collateral. An unscrupulous company
may misrepresent the terms of such loan agreements; if so, you
could end up losing your home.
Businesses offering debt counseling or reorganization may
charge substantial fees or a percentage of your debts, but fai
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