If you’ve been in the credit business for a long, you’ve probably had a customer contact you about running an expert credit sweep service. I’ll explain why this technique is unethical, unlawful, and harmful to your image as a Credit Magician.
Credit sweeps are a high-volume credit restoration strategy in which every item on a person’s credit report is disputed all at once.
Credit sweep services are often promoted to those who have suffered identity theft by an illicit credit repair organization masquerading as a professional one.
A “credit sweep” may only be performed if your client has a police record demonstrating that they were a victim of identity theft and that every single item on their credit report is fake, which is not always the case.
Is A Credit Sweep Legal?
Let me state it clearly. Credit sweep services are against the law.
On the Credit Cadabra Community Facebook page, there are a plethora of intriguing posts concerning expert credit sweeps. One of our most recent postings discusses credit sweeps.
It is possible to dispute anything on a credit report in very rare circumstances – for example, if the victim of identity theft is a minor. However, the majority of your adult consumers have probably applied for a credit card, auto loan, mortgage, or similar product at some time in their lives. That is not to say that anything on their account is bogus.
If you run a credit sweep and dispute everything in your client’s credit history, but even ONE of the accounts is established by your client, you have committed fraud.
Be Wary of Credit “Expert” Sweep Scams
Be careful of mimicking other credit repair organizations’ practices if they offer quick results.
Making false or misleading representations to credit repair customers is not only unethical and unlawful under the Credit Repair Organizations Act, but it may also lead to criminal penalties.
The word credit sweep should not even be spoken until your client has a police report indicating their identity was stolen. If your customer indicates they know of a firm that has a workaround or can submit a police complaint retrospectively, it’s time to have a “serious chat” with them.
Sadly, we have some bad apples in the credit repair business who would go so far as to submit fraudulent police reports in order to quickly erase negative things from a credit repair. You have a moral duty to safeguard your client from this sort of fraud, which might put them in serious jeopardy.
For example, in 2013, following a year-long investigation by the Las Vegas Metropolitan Police Department and the United States Secret Service, a firm named Tradeline Pros found itself in deep water for credit sweeps.
On its website, Tradeline Pros promises to “eliminate 75% of unfavorable entries from your reports in the first month.” As it turns out, these incredible outcomes were just that. Unbelievable.
Tradeline Pros falsified 174 police complaints claiming their customers were victims of identity theft when they were not.
The defendants in the case were charged with a litany of offenses, including racketeering, operating a forgery laboratory, and forging.
What Is a Better Option Than a Credit Sweep?
Disputing in stages — using the factual dispute approach — is an efficient and, more importantly, lawful strategy to obtain the greatest outcomes for your clients.
With a factual dispute, you’ll look through a client’s credit report for mistakes and devise a strategy to challenge them.
Inaccuracies may range from inaccurate account numbers, dates, account status, and account kinds to incomplete account information such as missing dates, account numbers, and balances.
You may seek for inconsistencies or discrepancies in:
- Late payments
- Incorrect/Conflicting Personal information
Credit bureaus may also be lacking backup paperwork for anything reported on a credit report, which is grounds for a dispute.
Going through the factual dispute procedure is the only legal method to undertake credit restoration.
If you haven’t already, I strongly advise you to enroll in our Basic Disputing Course. In this three-hour session, our resident Credit Repair Expert Corey Gray explains in detail how to deal with the first eight rounds of disputes. He covers all themes, regulations, and techniques, including Factual Disputes.
Operating morally and honestly is the foundation of your reputation, what will benefit your customers the most, and what will help convince people all across the nation that credit repair is a reputable profession with fantastic outcomes!
Do Credible Disputes Take a Long Time?
The benefit of a credit sweep is that it is quick, comprehensive, and involves less paperwork (unless you get slapped with criminal charges.) Even if credit sweeps were totally legal, it’s worth remembering that factual disputes take no longer than one bad credit sweep (assuming you use the correct tools).
When you utilize Credit Cadabra service for disputes, you can ensure that you are acting ethically and lawfully for your lenders.