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help me create a reputable credit repair business


Proj1423
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I've seen it said that decent credit repair companies don't exist, so I'm thinking of trying to create one. It's not going to be an internet business. It will be "bricks and mortar" and only service people locally. I will have a one on one consultation with them to review the report with them to help them truly understand it. I'm going to choose 4 accounts based on being out of SOL and recently reported. I'll then work with the client to dispute and DV where necessary. Ill keep the client involved as much as possible and make sure they know they could do this themselves. I'll stay compliant with both state and federal Credit Repair Organization Acts. Any helpful suggestions for me to be successful and make the experience pleasant for clients?

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That would be ideal, but I think there's a market for this. People hire a cleaning person not because they are incapable of cleaning, but because they don't have the time or interest to do it themselves. The difference is that there's a much bigger benefit to a more accurate and positive credit profile compared to a cleaner house.

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That trust is gained by looking a person in the eyes and helping them to create a long-term plan involving education and follow-up. I hope to not advertise at all. I want to build through referrals and word of mouth, starting off by working with local banks and mortgage companies.

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Sorry iff I'm cynical, but we've had many people come to the board with a "...I'm gonjna open a credit counseling..." plan.With only one exception I can think of (and she does it for free without putting her name on anything), they all soon realize how lucrative the business can be...if you're willing to tell half truths and mislead your clients into doing things they may not have to do.

 

for a fee.

 

I've got a very dim view of "debt fixers".  The best advice you can offer is come to this board and learn how to deal with this stuff on your own.

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That trust is gained by looking a person in the eyes and helping them to create a long-term plan involving education and follow-up. I hope to not advertise at all. I want to build through referrals and word of mouth, starting off by working with local banks and mortgage companies.

What angle would you work to get local banks and mortgage companies to send clients to you?

It would almost seem like a breach of trust if they did.  I'm just curious, not trying to dissuade your idea.

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What angle would you work to get local banks and mortgage companies to send clients to you?

It would almost seem like a breach of trust if they did.  I'm just curious, not trying to dissuade your idea.

Actually, most debt fixers are really collection agencies that use the "more flies with honey" approach.  In addition to charging the debtor a monthly fee or percentage of their "savings", they have contacts with the major CC companies to "handle" certain clients.

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Actually, most debt fixers are really collection agencies that use the "more flies with honey" approach.  In addition to charging the debtor a monthly fee or percentage of their "savings", they have contacts with the major CC companies to "handle" certain clients.

That makes sense to me. (not ethical sense, but sense as a business model)

 

Just wondering how the OP would make this happen using banks and mortgage companies.

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Bank loan officers are people with feelings. Sometimes they feel bad about having to deny someone and wish they could do more. In this case, they would refer them to me. The benefit for them is the client will remember them and go back for the loan after they become better qualified. I used to be a loan officer back in the subprime days. I've seen the slimiest people do the slimiest things. I just want to do something where I am making a positive impact on peoples lives and something I enjoy doing. This seems like it.

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Bank loan officers are people with feelings. Sometimes they feel bad about having to deny someone and wish they could do more. In this case, they would refer them to me. The benefit for them is the client will remember them and go back for the loan after they become better qualified. I used to be a loan officer back in the subprime days. I've seen the slimiest people do the slimiest things. I just want to do something where I am making a positive impact on peoples lives and something I enjoy doing. This seems like it.

With this attitude, you are starting with the right intentions.  Good for you.

 

Yes, you definitely need to get around the 3rd party issues.

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Bank loan officiers are people with quotas and rules they must follow.  No matter their personal feelings, anything on the credit report that may result in a potential law suit and jeapordize the debtors ability to pay back the loan must be cleared...and, if the debtors history of handling such things is questionable, the loan is denied.

 

You may also want to spend some time reading www.ftc.gov regarding debt counseling.  There are many opinion letters that apply.  Granting power of attorney relieves the debtor of certain rights.  Collecting money for "services rendered" before actually accomplishing anything may get you in trouble.

 

You also want to be well versed in the current IRS rules regarding 1099c's for forgiven debt.  Be sure to read Pub 4681 before you push the "insolvency" angle.

 

My advice?  Sell used cars....

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I find it more rewarding to come on this board and offer what I've learned to others. I'm certainly not the best, but I do know I've helped a dozen people beat creditors or JDBs. I've given those people 86,000 reasons to never give up and taught them what I learned on my own (a lot) and showed them where I started by reading what others had done (a lot). Unfortunately, I don't see them hanging around anymore to offer up what I had given them to empower others.

 

Me, I've decided to change the game of the collection business. I have been in touch with my legislators and AG, who have welcomed me to submit a research paper on existing collection laws here in IL and how they compare to other states (SOL and garnishment will be two issues of contention), as well as how the Collection Agency Act--how it is a good law on paper it does not go far enough to protect borrowers since the JDBs just find a way to get around it. I really, really, really want to end bogus suits here in IL, and pretty much wont stop pissing people and firms off until I get what I want, and the people get what they need.

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I won't touch anything not out of SOL. You can charge up front if you have a trust or bond in place. I'm not sure that forgiveness of debt applies since I'm not doing debt consolidation and won't mess with PFD. I'll educate them about it, but won't do it for them. I'm speaking from experience regarding sympathetic bank loan officers who have an interest in doing good for their customers. If you prefer to help the board, that's good. I want to reach further and help people that don't know help is out here and I'd like to do that locally.

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I'm not questioning your intentions or integrity.  I'm just suggesting you read FDCPA, FCRA, TCPA, FTC Rulings, and IRS regs. before you begin.

 

For example: arguing SOL and winning is one of the triggers for issuhg a 1099c.  Your clients will owe taxes.

 

And, I beleive the trust or bond requirement is a state thing...so, watch your boundaries.

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