Frequently Asked Questions and Legal Service Information
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Our Services
How do you restore bad credit from identity theft?
How long does it take to restore my credit from identity theft?
Does paying off past-due accounts neutralize their negative status?
Do I need to see my credit reports first?
Our Company
Our Fees
Credit Reports
What kind of information appears on the report?
How long do negative items stay listed?
How much bad credit does it take to be denied credit?
Who looks at my credit report?
What is the difference between and R1 and an R9?
How much does bad credit cost?
Bankruptcy Law
Chapter 13 Individual Debt Adjustment
Chapter 11 Reorganization Under Bankruptcy Code
Credit Law
How do you restore bad credit from identity theft?
Once we've received your credit reports and information, we will dispute negative items on your behalf. We communicate your dispute in such a way that the credit bureaus will accept the dispute and conduct an investigation. While this may sound easy, any person who has attempted to dispute his or her own credit will tell you otherwise. According to federal law, the credit bureaus can ignore your dispute under a variety of conditions. In our experience, a large part of dispute letters sent directly from consumers are rejected under one pretext or another.
At the conclusion of the credit bureau's investigation, a new copy of the credit report is sent directly to you along with any deletions or improvements. First make a copy for yourself. Then, send us the new credit report and the cycle repeats itself to continue improving your credit report.
A disputed credit listing must be accurate and verifiable for it to remain on the credit report. If the credit listing is only somewhat inaccurate, the credit bureau may simply change the item to reflect the accurate status. Very often, though, disputed credit items cannot be verified: the creditor either no longer possesses the information or does not wish to go to the trouble of verifying it. Also, the reinvestigation must be completed within 30 days or the listing must be removed. For these reasons, properly disputed credit listings are often removed with remarkable frequency. Each time an investigation is commenced, the odds of receiving a particular deletion increases.
How long does it take to restore my credit from identity theft?
It is against the law for anyone to promise a particular result within a certain time frame. Though we can give you an idea as to how we have performed in the past, your results may vary. If credit reports are received promptly, many clients see exhilarating progress within the first 60 days.
The progress of your case will depend on your participation (promptly sending in credit reports on a timely basis, and promptly funding your account for continued work), the nature of your case, and the level of credit bureau cooperation.
Do I need to pay my bills?
If there are delinquent accounts appearing on your credit reports that have not been paid off, the actual debt behind the listing remains the same even if the account is deleted from your credit report. You still owe the same money that you owed in the first place.
In certain circumstances, removing the listing without addressing the debt can often only be part of the solution. If you have a large amount of debt, there are other services we can recommend to you depending on your specific situation. Be sure to contact your Credit updating Specialist for assistance.
Does paying off past-due accounts neutralize their negative status?
You would think that would be true, but again, the credit reporting system just doesn't work that way. When you pay an old debt, the negative credit listing doesn't disappear. The most ironic thing is that a paid negative listing is not usually any better than an unpaid negative listing. It is not always true, but in most cases, you won't get much further by paying the old debt.
Negative credit is allowed to stay on the credit report for a maximum of seven years, except for bankruptcy, which may remain on the credit report for ten years. This seven-year clock begins ticking on "the date of last activity"; in other words, when the last action took place on the account. By paying an outstanding, delinquent debt you will change the account status to "paid collection," "paid was late," or "paid was charged off" - which will still stand out as a very negative listing.
Furthermore, you will create a new date of last activity on the day you settle the account. The seven-year clock will reset and begin all over again. When you have outstanding debt, it is almost always prudent to seek professional help so that you may settle your debts without further damaging your credit. We have additional services we can recommend to settle this debt that may be appropriate for your situation and save you a lot of money in the process. Be sure to contact your Credit updating Specialist for assistance.
Do I need to see my credit reports first?
It is not necessary to know exactly what is appearing on the credit report before we begin work. It is only necessary to know that there is a credit problem, which needs to be addressed. The first part of our program is a free consultation to discuss the negative items on your reports, and determine if our services are appropriate for you.
One amazing thing about bad credit is that almost any small amount of bad credit will trigger universal credit denial. A little bad credit isn't much better than a ton. So, if you believe that there might only be a couple of negative listings on your credit report, it still makes sense to use our services for the little time it takes to remove them.
Do you guarantee your service?
It is important to understand there are no guarantees involved when working with your credit. The great thing about our services is that you only pay for items that have been improved or removed from your credit reports due to Identity Theft or errors on your credit report. This is even better than a guarantee. If nothing is improved or removed, you pay nothing. However, we are very confident in our ability to improve your credit.
Can I restore my own credit?
Given some experience and study, you could do some of what our staff does. It is much like your right as a citizen to represent yourself in court. Most people choose to allow an attorney to represent them because the attorney understands the legal system better. However, should you wish, you could represent yourself.
Another factor to consider is the amount of time and follow-up required to coordinate disputes with all three credit-reporting agencies. With that said, we encourage consumers to dispute their own credit if they have the time and knowledge to do so.
How do I get started?
Getting started is simple, our services start with a free credit consultation with one of our knowledgeable credit specialists. In just a few minutes, they will assess your situation, answer your questions, and go over our program. You can be on the road to improving your credit right away. Contact us now.
How do I get updates on my case?
Credit reports will arrive first at your home and then you will forward them to us. So, when we accomplish deletions and improvements, you will be the first one to see the updated credit reports. Additionally, you are always welcome to call or email your representative and request an update of the progress of your case.
How long have you been doing consulting?
Akron Legal Services is a consulting services organization based in the state of Ohio with nearly 7 years of experience in the industry. We have what we believe to be the most innovative and consumer-friendly consulting service available.
What states or countries do you do business in?
We are able to offer our services in all 50 states.
How much does your service cost?
A minimum retainer fee of $300 (depending on the severity of your situation) is all that is required to retain our services. The maximum fee that can be charged is $800 - this is for extreme cases only. For single items, individually, our fees are charged on a per line item, per bureau basis. See our per item rate sheet below for details. Again, our fees are only charged for work completed.
Credit Updating Rate Sheet (cost per item)
| Item Type | Price |
| Bankruptcy | $55.00 |
| Tax lien (State or Fed) | $55.00 |
| Judgment | $55.00 |
| Foreclosure | $55.00 |
| Repossession | $55.00 |
| Late Pay on Child Support (must be current now) | $55.00 |
| Collections or 120 or more days past due | $50.00 |
| Charged off to bad debt or included in bankruptcy | $50.00 |
| Late Pays or past due 90 days | $44.00 |
| Late Pays or past due 30, 60 days | $39.00 |
| Remove prior consumer inserted statement | $33.00 |
| Negative creditor comment | $33.00 |
| SSN#, DOB, Name, Current Address | $11.00 |
Can I cancel the service at any time?
You can cancel services at any time in writing. You will of course be responsible for any completed work at the time of cancellation. Client satisfaction is extremely important to us and we will generally go to any lengths to keep you satisfied with our work and our progress.
What if I cannot afford you right now?
If you feel that you cannot afford our fees at this time, we recommend you revisit the matter once you have successfully balanced your budget. Our services are designed to help those who have passed through credit problems in the past or who have inaccuracies on their credit reports. If you are currently having difficulty making ends meet, we can refer you to several other debt management options that may be appropriate first. Be sure to contact your Credit updating Specialist to help you figure out the best strategy for your circumstances. However, we can slow our dispute process and work out a monthly amount that will fit into your budget.
What is a credit report?
Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.
These credit bureaus collect and maintain information on the vast majority of Americans, but they are not affiliated with the government in any way. The credit bureaus are for-profit corporations and they sell your personal information for money.
The credit bureaus receive your personal information through the same lenders who grant you credit. They have agreements with each of these credit grantors that require the credit grantor to inform the credit bureaus of everything that occurs in your relationship with the credit grantor. If you make a payment late, the negative credit listing is quickly reported to at least one, if not all, of the three major credit bureaus and is added to your credit history. Credit reports are not just a record of how you are currently managing your credit accounts. Credit reports are histories of everything you are doing with your credit now, and everything you have done in the past.
The credit bureaus collect this information, list it on your credit report, and then sell it to other credit grantors who wish to see your credit history before they decide to lend you money. The credit grantors who review your credit are especially interested in any negative credit. If you have shown any tendency to pay late, or to disregard your financial commitments in the past, then the creditors' computers will immediately reject your application.
Just like when you were in high school, your credit report is your financial report card to the world.
What kind of information appears on the report?
Merchant Trade Lines
These include all regular credit lines such as department store cards, auto loans, mortgages, and credit cards. If there is any history of late payment, or if the trade line was included in bankruptcy, charged off, or put into repossession, the listing will be considered negative by all credit grantors.
Collection Accounts
When an account is referred to collections because of delinquency or because of a bad check, this appears on the credit report as a collection account. Collection accounts can appear as paid or unpaid accounts. Any type of collection account, whether paid or not, is considered very negative by all credit grantors.
Public Records
Public records include bankruptcies, judgments, liens, divorce, satisfied judgments, and satisfied liens. All court records, including satisfactions, are considered negative by all credit grantors.
Inquiries
Every time a potential credit grantor looks at your credit file, a credit inquiry appears on at least one of your credit bureau reports. If the numbers of inquiries are few over the last two years, then there may be no negative effect on your credit worthiness. However, if there are many recent inquiries showing on your credit report, credit grantors may become nervous and deny you credit.
How long do negative items stay listed?
The Fair Credit Reporting Act (FCRA) requires that most negative credit items be deleted from your credit bureau file in no more than seven years, except for bankruptcy, which can be reported for up to ten years. These are the time limits for reporting negative credit. The creditor or the credit bureau can choose to have the negative credit information deleted whenever they please. Inquiries may remain on the credit report for up to two years.
Can I see my credit report?
Most credit grantors are not allowed by the credit bureaus to show you your own credit report. But you can purchase your credit report from the credit bureau for a fee. Once you receive your credit report, you may find that you cannot read it because the information is listed in an unfamiliar code. Trans Union and Equifax credit reports are very difficult to interpret and understand. Experian credit reports, however, are relatively easy for most people to read. If you have been denied credit, you have the right to obtain a free credit report from each bureau for 60 days from the date of credit denial.
How much bad credit does it take to be denied credit?
Even one small late pay listing may result in credit denials. It is a myth that a large amount of positive credit can outweigh some negative credit. Any negative credit whatsoever can become a substantial credit obstacle.
Who looks at my credit report?
With the passing of each year, your credit report is used more and more often as a yardstick to measure your character. Prospective creditors will always review at least one of your credit reports before granting you credit. Today it is increasingly common for insurance companies to review your credit before extending auto or health insurance. Many employers now check credit before they consider you for a position. If you rent, you may have already been through a credit check to determine your worthiness as a renter.
What is the difference between and R1 and an R9?
"R" refers to a revolving account, "I" refers to an individual account, and "M" refers to a mortgage account. The creditor supplies this rating. It is their rating of you as a borrower. There are only two ratings that are not negative. A rating of "1" is good and a rating of "0" means that they don't have enough history with you to rate you.
Every other rating, "2" through "9" is negative. In our experience, creditors don't look at these ratings when you apply for financing. The creditor usually looks for late pays or other notations such as "charge off" or "collections." However, any rating but a "1" or "0" indicates that you have problems with the account.
What is a charge off?
When you become very delinquent on an account, the creditor will probably charge it off. This means that they have written the debt off as a loss for tax purposes. This does not mean that they have given up collecting on the debt. The creditor is now likely to either sell the debt or send it to collections.
How much does bad credit cost?
As you consider using our services, you would do well to look at the price you are already paying for bad credit. If the cost of our service can produce much greater savings, you would be wise to make the investment. Below are just a few examples of the cost of bad credit.
Credit Cards
Most, if not all, prime credit cards are entirely out of reach to consumers with bad credit. The few credit cards that are available to consumers with bad credit (known as "sub-prime" cards) typically require exorbitant setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.
Automobile Financing
If you are making payments on a car, you are probably paying between $2,000 and $7,000 more just for having bad credit. This added interest shows up every month in a higher payment. Take a look:
| $25,000 car paid over 5 years | |||
| Credit Status | Rate | Payment | Cost of Bad Credit |
| Perfect | 4% | $460.41 | $0 |
| Mildly Damaged | 8% | $506.91 | $2,790.00 |
| Damaged | 15% | $581.71 | $7,278.00 |
Home Mortgage
Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $60,000 and $190,000 more in interest if you are buying the home with bad credit.
| $150,000 home paid over 30 years | |||
| Credit Status | Rate | Payment | Cost of Bad Credit |
| Perfect | 5% | $805.23 | $0 |
| Mildly Damaged | 7% | $997.95 | $69,379.20 |
| Damaged | 10% | $1,316.36 | $184,006.90 |
Does enough good credit offset any bad credit?
Any amount of bad credit is devastating to your chances of being approved by a credit grantor. Most credit grantors never actually look at your credit report. A computer pulls your credit report, rates your credit standing, income, indebtedness, and stability, and then spits out an acceptance or denial. Even one or two slow pays will usually trigger a credit card or personal loan denial. The slightest amount of negative credit will cause the interest on an auto loan to skyrocket. You will probably find that even a little bad credit, regardless of how much good credit you have, is an unacceptable barrier to credit approval.
What is the Fair Credit Reporting Act (FCRA)?
Below is a summary of the FCRA. The full Act can be obtained directly from the Federal Trade Commission's web site at www.ftc.gov.
Fair Credit Reporting Act (Summary) Public Law 91-508
The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of "completeness and accuracy." If, after a reinvestigation by the credit bureau, the disputed information "is found to be inaccurate or can no longer be verified, the [credit bureau] shall promptly delete such information." The credit bureaus are required to complete the investigation within a "reasonable period of time." This period has been set at thirty days. The credit bureaus can ignore the consumer dispute if they have reason to believe that the dispute is "frivolous or irrelevant." The FTC commentary on the FCRA cites, as an example of a frivolous dispute, a dispute wherein the consumer challenges all negative items on his credit report without providing any allegations regarding specific items in the credit file. However, "A [credit bureau] must assume a consumer's dispute is bona fide, unless there is clear and convincing evidence to the contrary." When a consumer challenges a negative credit listing on the basis of extenuating circumstances, such as health problems, divorce, job loss, etc., the credit bureaus are entitled to ignore that dispute. When a consumer submits a dispute which is neither frivolous nor irrelevant by credit bureau standards, the credit bureau must "at a minimum... check with the original sources or other reliable sources of the disputed information and inform them of the nature of the consumer's dispute." In some cases of consumer dispute, "Reinvestigation and verification may require more than asking the original source of the disputed information the same question and receiving the same answer." In other words, when a consumer files or re-files a valid dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing. In theory and law, the process is deceptively simple, thus leading many people to think that they can easily handle this themselves "for the price of a few postage stamps." Most quickly discover that the credit bureaus have made it much more difficult than one would imagine.
