I’ve been in the credit industry for over 3 years now. One of the biggest deceptions many of these Credit Repair companies spread is telling their audience that collections should be ignored and no need to pay any of them. That is misinformation to the masses. First of all, Credit Repair is 100% legal. The purpose of credit repair is to remove anything inaccurate, outdated, unverifiable on one’s credit report. Sure, about 80% Americans have inaccurate information on their credit report. But telling clients to ignore their debt is just out right crazy. Clients must first understand the statute of limitations. A statute of limitations is the amount of time a person can take in order to take legal action on a certain event. It starts on the last date of activity: a payment, a payment arrangement, or acknowledgement of the debt.
CHECK OUT EACH STATE’S STATUTE OF LIMITATION
| State | Oral | Written | Promissory | Open |
|---|---|---|---|---|
| Alabama | 6 | 6 | 6 | 3 |
| Alaska | 3 | 3 | 3 | 3 |
| Arizona | 3 | 6 | 6 | 3 |
| Arkansas | 3 | 5 | 3 | 3 |
| California | 2 | 4 | 4 | 4 |
| Colorado | 6 | 6 | 6 | 6 |
| Connecticut | 3 | 6 | 6 | 3 |
| Delaware | 3 | 3 | 3 | 4 |
| Florida | 4 | 5 | 5 | 4 |
| Georgia | 4 | 6 | 6 | 6 |
| Hawaii | 6 | 6 | 6 | 6 |
| Idaho | 4 | 5 | 5 | 5 |
| Illinois | 5 | 10 | 10 | 5 |
| Indiana | 6 | 6 | 10 | 6 |
| Iowa | 5 | 10 | 5 | 5 |
| Kansas | 3 | 5 | 5 | 3 |
| Kentucky | 5 | 10 | 15 | 5 |
| Louisiana | 10 | 10 | 10 | 3 |
| Maine | 6 | 6 | 6 | 6 |
| Maryland | 3 | 3 | 6 | 3 |
| Massachusetts | 6 | 6 | 6 | 6 |
| Michigan | 6 | 6 | 6 | 6 |
| Minnesota | 6 | 6 | 6 | 6 |
| Mississippi | 3 | 3 | 3 | 3 |
| Missouri | 5 | 10 | 10 | 5 |
| Montana | 5 | 8 | 8 | 5 |
| Nebraska | 4 | 5 | 5 | 4 |
| Nevada | 4 | 6 | 3 | 4 |
| New Hampshire | 3 | 3 | 6 | 3 |
| New Jersey | 6 | 6 | 6 | 6 |
| New Mexico | 4 | 6 | 6 | 4 |
| New York | 6 | 6 | 6 | 6 |
| North Carolina | 3 | 3 | 5 | 3 |
| North Dakota | 6 | 6 | 6 | 6 |
| Ohio | 6 | 8 | 15 | 6 |
| Oklahoma | 3 | 5 | 5 | 3 |
| Oregon | 6 | 6 | 6 | 6 |
| Pennsylvania | 4 | 4 | 4 | 4 |
| Rhode Island | 10 | 10 | 10 | 10 |
| South Carolina | 3 | 3 | 3 | 3 |
| South Dakota | 6 | 6 | 6 | 6 |
| Tennessee | 6 | 6 | 6 | 6 |
| Texas | 4 | 4 | 4 | 4 |
| Utah | 4 | 6 | 6 | 4 |
| Vermont | 6 | 6 | 5 | 3 |
| Virginia | 3 | 5 | 6 | 3 |
| Washington | 3 | 6 | 6 | 3 |
| West Virginia | 5 | 10 | 6 | 5 |
| Wisconsin | 6 | 6 | 10 | 6 |
| Wyoming | 8 | 10 | 10 | 8 |
Credit Repair is beneficial if you are planning on buying a home or new vehicle in the near future. We clean up a client’s report to give one a credit boost and advise clients how to rebuild credit. Just because the debt was sold to a collection agency, doesn’t mean a company won’t come back and sue you for your debt. After the debt has passed statute of limitations, you could simply leave it alone.
Things You should dispute on your report
•Late payments that were indeed on time
•Accounts that does not belong to you
•Information that is outdated
• Personal information that’s incorrect
Things You Should Not Do while repairing credit
•Lying and saying, “this account is not mine” When in fact, it is yours
•Claiming fake identity theft
*Lying and making false claims can land you in prison
Dangers of Ignoring your obligations within statute of limitations
Failing to communicate and work things out with debt collectors could put you in a position to getting sued. You will have to go to court. I’ve also seen clients getting hit with wage garnishment. You risk the chance of your wages being garnished monthly until debt collectors have reach amount owed plus late fees, etc. Again, understand statutes of limitations. Debt collectors can sue or garnish wages. Make it a habit to pay on time. If you borrow, you need to make sure you pay it back. Make it a habit to communicate with creditors if you know you cant make the payment this month or you know you’ll be late. This is how you create healthy relationships with creditors and you take control of your finances.
