Credit Repair Organizations Act (H.R. 458): Hearing Before the Subcommittee on Consumer Affairs and Coinage of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, One-hundredth Congress, Second Session, on H.R. 458, a Bill to Prevent Consumer Abuse by Credit Repair Organizations, September 15, 1988, Volume 4

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Page 177 - ... right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any "credit repair" company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years. "You have a right to obtain a copy of your credit...
Page 174 - ... the information they dispute is accurate and within the permissible reporting period. Their services are frequently sold on a money-back guarantee basis, but consumers have reported difficulties in obtaining refunds. The company may be out of business, lack the funds to pay by the time consumers seek refunds, or simply refuse to honor the guarantee. Credit repair organizations have caused economic injury to credit bureaus as well as to consumers by generating large numbers of groundless disputes...
Page 39 - Credit bureaus affiliated with our association gather, store, and disseminate factual information relating to the identity and 2 paying habits of consumers. This information flows into credit bureau files from ledgers of credit grantors and from public record sources. Subscribers to credit bureau services are primarily...
Page 148 - organization" means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association. (d) The term "person" means a natural person or an organization. (e) The term "credit...
Page 44 - If the completeness or accuracy of any item of information contained in his file is disputed by a consumer, and such dispute is directly conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant. If after such reinvestigation such information is found to be inaccurate...
Page 125 - Act as a basis - 5 for attempting to improve consumers' credit bureau reports. The Act has always provided a mechanism through which consumers can correct erroneous information in their credit reports. Under the law, when a consumer disputes a reported item of information, the credit bureau must reinvestigate that item unless it decides that the dispute is frivolous or irrelevant. Upon reinvestigation, information that is found to be inaccurate or incomplete must be corrected and information that...
Page 38 - ACB, as we are known in the industry, is a trade association representing over 1,100 collection service offices in the United States. Approximately 80 percent of these offices also hold membership in the credit reporting division of our association. Mr.
Page 122 - ... vulnerability to false credit repair claims. However, for reasons I will outline shortly, the Commission questions whether the disclosures that the proposed legislation presently requires are likely to achieve this goal. The Commission also has - 2 reservations about other provisions of the proposed legislation, including the bonding requirement. In a letter to Chairman Annunzio dated May 11, 1987, the Commission commented at some length on. specific provisions of the proposed legislation. The...
Page 181 - Commission's powers, although the affirmative requirements of the law would simplify enforcement to some extent. 3y including civil penalty authority in the Act, Congress would accord the Commission greater flexibility in selecting enforcement alternatives and would also, we believe, promote more vigorous enforcement. Particularly in cases involving deliberate fraud, the power to require a company to disgorge its profits through imposition of a civil fine may be the only way to address adequately...

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