- Understand how credit repair works and if the service is valuable for your situation.
- Review Lexington Law's methods and standing and make sure that they are the right fit for you.
- Do your homework on what credit repair options are available to you, and if you want to hire a firm or self-manage the credit repair process.
BILL'S ANSWER
Since first writing our review of Lexington Law and evaluating their services in particular, and credit repair more generally, we received hundreds of comments from clients and consumers.
Many comments are complaints about the service and several wonder whether credit repair is a scam, so we would advise each consumer to do their homework and find out if the product is a good fit for their needs.
Credit repair is not effective for debts that are not paid off. Even if they fall off your credit report, they will reappear at the next reporting period. You need to get out of debt, before using credit repair to get a debt off of your credit report.
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Lexington Law Review
Given the constraints of the Fair Credit Reporting Act (FCRA), Lexington Law Firm’s strategy appears to be a reasonable credit repair strategy. Under the FCRA, if a consumer credit reporting agency receives what it (in its sole opinion) deems as a frivolous challenge, then that credit reporting agency can just ignore the request We reached out to the three credit reporting bureaus to get their opinion on Lexington Law and credit repair, and it is very clear that Experian does not think highly of this firm or of the credit repair industry. The other bureaus failed to respond before this review was completed.
When it comes to credit repair success, since credit reporting is so complex, and the credit reporting agencies are dealing with so much data, it can really be a mix of an art and a science to get credit report listings fixed or deleted. Lexington Law is generally considered to be a reputable firm, and any company of that size will have complaints and sites out there that try to claim that they are a scam, but of course each consumer needs to do their own homework. I actually personally visited Salt Lake City on a diligence and review tour to see the Lexington Law operation in action and it is very impressive. They have been doing this for quite some time and they appear to have good systems in place.
Letter of Deletion
If you want more information in general on what a deletion letter does and how it works I can give you some free information here. A letter of deletion is a request (which I have included a sample of below, and how to submit it online for free) to remove inaccurate marks from your credit report.
No one can remove accurate and timely negative information from a credit report legally. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for doing this on your own. If you paid the accounts in full and as agreed, then you can try to get them removed.
Following up with the credit bureaus might be a time-consuming proposition, depending on how many items you have that need to be removed. To get these items removed from your credit report you have two options:
1. Pay for the services of a credit repair firm
Lexington Law is this type of firm. There are many firms that specialize in the area of credit repair. Be careful about the firm that you choose and make sure that it is a reputable firm. You can check with the Better Business Bureau to learn about the performance of a particular company. You need to do proper research on the firm that you will eventually do business with. By law, credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you. For example, a credit repair company cannot:
- Make false claims about their services
- Charge you until they have completed the promised services
- Perform any services until they have your signature on a written contract and have completed a three-day waiting period.
Your contract must specify:
- The payment terms for services, including their total cost
- A detailed description of the services to be performed
- How long it will take to achieve the results
- Any guarantees they offer
- The company’s name and business address
2. Do it yourself
Bills.com offers a debt self-help center that can help you solve you debt problems on your own for free. You will first need to obtain a copy of your credit report from each of the three credit bureaus. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through AnnualCreditReport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time.
Check your reports for the action items. All the bureaus now have provisions to dispute items online, but in most cases you will need a copy of the respective report and other information to do so. Once you are ready, contact each of the three bureaus at the contact information provided below:
| Equifax | Experian | TransUnion |
|---|---|---|
| 800-685-1111 | 888-397-3742 | 800-916-8800 |
| Equifax.com | Experian.com | TransUnion.com |
| File a credit dispute online at Equifax | File a credit dispute online at Experian | File a credit dispute online at TransUnion |
Sample Letter of Deletion
Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the following:
| FTC Sample Letter of Deletion |
|---|
|
Date
Complaint Department Dear Sir or Madam: I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received. This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information. Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible. Sincerely, Your name Enclosures: (List what you are enclosing) |
Conclusion
Neither Lexington Law nor trying credit repair on your own will resolve debts you still owe. You have to clear your debts, before credit repair will work.
Once you resolve the issue with the credit bureaus, tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct — that is, if the information is found to be inaccurate — the information provider may not report it again.
There are also certain Web sites that provide kits for as little as $13.95, these kits have letter templates and tips to help you repair your credit all by yourself. You can learn more about credit, credit scoring and credit repair on our site.
Generally we do not believe that firms like Lexington Law, Ovation Law, and other credit repair industry leaders are scams, even though they do have lots of complaints against them. Be sure to evaluate each company’s complaint volume against the size of its overall client base and do your own homework.
I hope this information helps you Find. Learn & Save.
Best,
Bronx, NY | January 31, 2012
Los Angeles, CA | January 31, 2012
January 31, 2012
Westchester, NY | January 27, 2012
January 27, 2012
Mcdonough, GA | January 24, 2012
January 24, 2012
Indio, CA | January 25, 2012
January 20, 2012
Milwaukee, WI | January 18, 2012
January 17, 2012
January 17, 2012
Miami, FL | January 12, 2012
January 13, 2012
It is my opinion that credit repair is effective for debts that are paid off. Unpaid debts, even if removed, can reappear on your report.
I can't speak authoritatively about the rent-to-own company's requirements, but if you are paying them a fee for to view their listings, I would be quite wary.
Henderson, NV | January 15, 2012
Since you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
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