Debunking the Latest Viral ‘Credit Expert’ Claim
DON’T TRUST STRANGERS ON THE INTERNET
Yet another viral video from a supposed credit expert has made its rounds online. This alleged expert claims that in 2023, Congress passed a new law titled “ FCRA law” to “permanently remove any negative debt older than two years and is affecting your credit score.” This person goes on to sell $20 letters written to these companies to help those in need. If you think this sounds suspicious, you’d be right. Unfortunately, this video preys on people with bad credit, including those with massive hospital bills, home loans, or student loans. Though this post garnered over 70,000 likes in two weeks, this law and how it claims to repair your credit do not exist. The law mentioned, FCRA, was actually passed in 1970. It’s called the Fair Credit Reporting Act, and it requires most negative credit information to be removed from your credit report after seven years. You don’t need to send any letters to assure this information is removed, much less one costing $20 and paid to a nebulous online “expert” with no credentials. “I’m not aware of any law that comes close to this,” says David Silberman, the former acting deputy director of the Consumer Financial Protection Bureau, in an interview with the Associated Press. And Richard Franks, the head of Lightbox at Intuit Credit Karma, told USA TODAY, “Another protection under the FCRA ensures that old negative information, like late payments or bankruptcy, aren’t held “Anyone claiming they have the ‘magic bullet’ to remove recent and accurate credit information, no matter how negative, is likely a potential scammer.”
against the consumer forever; credit agencies must remove most negative credit information after seven years, and remove bankruptcies after 10 years.” Several proposals have been made to shorten the seven- year timeline, but nothing has yet passed. U.S. Rep. Ayana Pressley, a Massachusetts Democrat, introduced H.R. 4120 in 2021 to add this amendment for “comprehensive reforms” to the law. The bill includes improvements to the disputing process, free credit scores, removal of adverse information for private education loan borrowers, and credit restoration for victims of predatory activities. The bill has yet to make it out of the House Committee on Financial Services. It’s essential to research and fact-check claims like the one in this viral video. If it seems too good to be true, it most likely is. If someone claims to be an expert, take the next step and check their credentials. Does their social media account lead to another website where you can read their full bio? Did they go to school for their chosen field or otherwise gain mentorship? The Federal Deposit Insurance Corporation (FDIC), started in 1933 by Congress to place faith in the banking system after the Great Depression, warns, “Watch out for scammers who falsely claim to be lenders, loan servicers, financial counselors, or representatives of government agencies who can help with your mortgage.” These government agencies and professionals will not reach out through text, email, or phone calls to ask for sensitive information. They are not advertising their services on a viral video and charging $20 for unnecessary credit repair letters. Once again, if it sounds too good to be true, it is. While you can advocate for your credit, beware of claims that someone will help you on your journey. Anyone claiming they have the “magic bullet” to remove recent and accurate credit information, no matter how negative, is likely a potential scammer. By law, no one can remove this information within two years. Use your common sense and triple-check claims, and you can’t go wrong.
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