Activity

Examples of Credit Services from a CNAF would be required to be done on normal non-commercial terms and therefore not to secure the financial assets of the Group in any way. Examples of such services are as follows: administration, consolidation, debt, educational and legal services. Other examples of services that are not normally CNAF activities are as follows: legal services for non-commercial customers, accounting for CNAF costs and expenses, preparation of group reports, management and coordination of internal controls, fund management, mortgage underwriting and loan origination, insurance, public accounting and real estate accounting.

There are many possible problems that could arise out of an organization’s activities with respect to credit report processing. Inaccuracy is one such problem. Under section 766(b) of the Internal Revenue Code there is an important provision which requires the liable party to notify the IRS within a certain time of an inaccurate transaction or item that would have resulted in an erroneous credit report. If this notification is not made, then the liable party is obliged to pay the tax penalty. However, under the new regulations, if the notice is made within a certain time period after the transaction or item had gone through, the liable party may claim tax relief without paying the tax penalty.

Other problems that could have arisen in the process of credit reports processing are mentioned in the section. For example, if a collection agency sends a letter to a debtor informing him that he has been defaulted on a debt, the debt collector can inform the debtor that he is liable under section 632 for reporting the default. The collection agency would be liable for this under the new regulations. However, if finance is sent by certified mail and the debtor has made reasonable efforts to correct the debt, the collection agency would not be liable under the new regulations to inform the debtor of his liability.

A collection account that has been paid but is not reflected in the credit report is referred to as an “in collections”. Collection accounts that are still being processed but are past due is also referred to as an “out of collections”. When the collection account is considered “out of collections”, the debt collector is required to inform the debtor of the same. A notice is sent by certified mail with a request for the borrower to send supporting documentation to support his claim that he does not owe the debt. If the supporting documentation is not provided, the collection account is considered “in collections” and the collection amount shall be debited from the debt collector’s credit score.

Another area where one should be careful is the manner in which the credit reports are processed. Before using credit services organizations, you should make sure that they are legally certified. There are many organizations out there who claim to guarantee credit reports but most do not even have an office in your area. They also offer services but they do not even provide a money back guarantee. You should therefore check their office locations extensively before hiring them to do a credit check on your behalf.

If you find that the credit repair company you are using is not offering a money back guarantee, then you can be doubly sure that the credit report or reports it provides to the debt collectors will not be accurate. Credit repair companies often fail to act when they find fraudulent information on your credit report. In such cases, they take legal action against the erring individual. In some instances, they even sue the erring individual on the basis of Fair Debt Collection Practices Act. If you are unfortunate enough to face such problems with a credit repair company, then it is always advisable to employ a lawyer to deal with the matter.

The Fair Debt Collection Practices Act covers all matters associated with credit bureaus. According to this Act, all credit bureaus must ensure prompt communication and respond to all requests made by consumers. Similarly, a credit repair company must clearly state its terms and conditions related to credit report and disputes before the debtor agrees to their services. This ensures that both the debtor and the credit bureaus are made aware of what they are agreeing upon before entering into any agreement.

Credit repair companies can help improve your credit score significantly. In fact, most experts would recommend that you start paying off your debts right away in order to increase your credit scores in the long run. However, you should never ignore a debt collector if they repeatedly call you. Instead of ignoring them, you should politely tell the collection agency to leave you alone. Once finance don’t, call the consumer agency again and ask for their assistance. If you are lucky, then the agency would stop harassing you.