Legal Credit
Restoration
Handbook
Princeton Law Firm, 2009 Confidential - All Rights Reserved
1
Table of Contents
Introduction ................................................................................................................................ 3
The Credit System ..................................................................................................................... 4
History .................................................................................................................................... 4
Importance ............................................................................................................................. 4
Regulatory Agencies .............................................................................................................. 4
Truth About “Credit Bureaus” ..................................................................................................... 5
Who They Are ........................................................................................................................ 5
What Do They Think About “Credit Repair”?........................................................................... 5
Credit Bureau Complaints....................................................................................................... 5
Your Legal Credit Rights ............................................................................................................ 6
The Law is On Your Side ........................................................................................................ 6
Truth About “Legal Credit Repair” .............................................................................................. 7
How It Works .......................................................................................................................... 7
What Type of Situations Can Be Handled? ............................................................................. 7
Can I Do It Myself? ................................................................................................................. 7
Why Using Princeton Law Firm is More Effective ................................................................... 7
Understanding Your Credit Score .............................................................................................. 9
Introduction ............................................................................................................................ 9
How Mistakes Are Made ......................................................................................................... 9
FICO Score ............................................................................................................................ 9
Categories Evaluated In FICO Scoring .....................................................................................10
Payment History ....................................................................................................................10
Amounts Owed ......................................................................................................................10
Length of Credit History .........................................................................................................10
New Credit ............................................................................................................................10
Types of Credit In Use ...........................................................................................................10
What FICO Doesn’t Consider ....................................................................................................11
Tips To Raise Your Score .........................................................................................................12
Your Credit Report ....................................................................................................................13
Who Tracks Your Report .......................................................................................................13
What’s In Your Credit Report .................................................................................................13
Identifying Information ........................................................................................................13
Trade Lines ........................................................................................................................13
Inquiries .............................................................................................................................13
Public Record and Collection Items....................................................................................13
Making Sense of the Codes Used by Credit Agencies ...........................................................14
The 100 Word Statement.......................................................................................................14
Princeton Law Firm’s Process ...................................................................................................15
Our Guarantee ......................................................................................................................15
Contact Information ...................................................................................................................16
Websites ...............................................................................................................................16
Princeton Law Firm, 2009 Confidential - All Rights Reserved
2
Introduction
Introduction
Congratulations, you have just purchased the finest credit restoration program available at any
price. Give yourself a pat on the back for taking control of your life and exercising your rights in
restoring your credit with Princeton Law Firm.
This handbook is not a “do-it-yourself kit”. The intent of this handbook is to educate the reader
on his/her legal credit rights and the restoration process.
As you read further in this handbook, you will be amazed at how much power you actually have
when it comes to your credit. Having a good credit standing will allow you to increase your
financial well being, leverage your buying power and increase your confidence. We at Princeton
Law Firm have witnessed dramatic changes in our client’s lives as they realize the benefits and
freedom that accompany good credit. Please feel free to contact our office with any questions
you may have throughout this handbook.
Princeton Law Firm has been assisting individuals with credit issues since 1984. Along the way
we have encountered every type of credit report error imaginable. Good news for you we have
the experience to challenge any errors you’re faced with.
As you repair your credit with Princeton Law Firm keep in mind you are getting the best legal
protection possible when it comes to consumer protection. We have strategically placed
attorneys in every state in the country, backing our movement on a national level and have
designed a successful credit restoration system to challenge your Creditors and the Credit
Bureaus.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
3
The Credit System
The Credit System
History
The credit system was developed to give consumers more buying power and to stimulate the
economy. Unfortunately when the use of credit began there was an extreme lack of education
regarding what to do if a consumer were to default on a credit account. Too many consumers
were being taken advantage of with no idea what their legal rights were as a consumer.
In the mid 70’s an individual by the name of William Proxmire, a senator for the state of
Wisconsin, took it upon himself the task of proposing a consumer protection law known today as
the Fair Credit Reporting Act. Mr. Proxmire was successful in his efforts to protect consumers
against the almighty credit bureaus and creditors. The Law was enacted and enforced allowing
consumers to dispute any negative information within their credit history files. The law states
that all credit bureaus and creditors are obligated to provide documented evidence to back the
claims they make about consumers. Furthermore, consumers have the right to make creditors
and credit bureaus verify information on their credit reports on a monthly basis.
Importance
A good credit standing will allow you to save thousands of dollars in high interest rates that are
paid as a result of having a negative credit rating. It is also important to have good credit so you
can obtain car insurance, rent or buy a home, purchase a vehicle, even to be considered for
employment and promotions within your current job.
As you are probably starting to realize, your credit standing is your most important financial tool.
Regulatory Agencies
Creditors and the Credit Bureaus are all regulated by the Federal Trade Commission. The
Federal Trade Commission (FTC) is responsible for making sure consumers are getting a fair
handshake when it comes to dealing with your credit. Unfortunately, consumers end up getting
an unfair handshake more often than not which in most cases can end up destroying ones
financial standing or worse, their life!
The Federal Trade Commission is located online at www.ftc.gov We recommend that if you ever
have a problem with a Creditor or Credit Bureau, you immediately file a formal complaint.
Nothing will happen on the consumer’s behalf unless you speak out.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
4
Credit Bureaus
Truth About “Credit Bureaus”
Who They Are
There are three main credit bureaus and hundreds of sub bureaus who draw their information
from the “big three”. The “big three” are Experian, Trans Union and Equifax. These agencies
house all of your personal financial history.
The Credit Bureaus basically develop relationships with creditors and sell your personal
information to them for a profit. The agencies are not government related, they are owned by
individuals like you. These agencies are multi-billion dollar companies who hold your future in
their hands.
The purpose of a Credit Bureau is to monitor your credit status and provide that information to
Creditors in order to assess the risk in processing loans or credit cards. The problem is an
average of 40-70% of the information on ones credit report is inaccurate in one form or another
which can cost you thousands of dollars in high interest rates not to mention credit denial.
What Do They Think About “Credit Repair”?
The credit bureaus despise the fact that consumers have the right to dispute information on their
credit files. The fact of the matter is, if a credit bureau has to investigate an item on your credit
report it must be done free of charge, therefore resulting in a profit loss for their company.
The idea behind the credit bureaus is the more negative credit you have the better, and the
reason is, if you have bad credit you are more likely to apply for credit more so than an
individual with good credit. What happens is, when a person is denied credit they typically will
go somewhere else to obtain the loan or credit card. As a result, the credit bureaus profit every
time you apply for credit.
So “credit repair” is an evil word within the Credit Bureau arena. But the fact still remains; you
have every legal right and are protected by the federal government in disputing information on
your credit report.
Credit Bureau Complaints
The Federal Trade Commission (FTC) receives more complaints about the Credit Bureaus
mishandling ones credit report than any other complaint in the nation. It is no wonder so many
people are losing thousands of dollars every year due to high interest rates and credit denials.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
5
Your Legal Credit Rights
Your Legal Credit Rights
The Law is On Your Side
Over the years we have been trained through public media financed by the credit bureaus that
we are bad people if we have bad credit. We almost have a sense of fear that we may be
subject to some type of legal repercussion. Well, this way of thinking is simply not true. As a
matter of fact, the law is on your side when it comes to dealing with bad credit. The Fair Credit
Reporting Act (FCRA), Fair Debts Collections Practices Act (FDCPA) and other laws have been
put in place to offer consumers an option to recover from a negative credit situation within
months not years. These laws have been included for your convenience in appendices A and B
of this handbook.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
6
Legal Credit Repair
Truth About “Legal Credit Repair”
How It Works
There are a lot of companies out there claiming they can restore credit with the flick of a wrist.
The truth is they can’t. We have personally tested the majority of credit repair systems out there
and found that Princeton Law Firm is by far the most successful. It takes an extensive amount
of research and testing to develop a proven system that works every time. Princeton Law Firm
has done just that. We have demystified the formula behind credit scoring and discovered the
most effective ways to dispute negative information on a credit report.
Each dispute will typically take on average 45-60 days to complete. If the bureaus have not
provided the proper documentation to back their claims your negative credit is removed. All you
have to do as a client of Princeton Law Firm is sit back and enjoy the results. As a matter of
fact the only thing we ask you to do is forward any information you receive from the credit
bureaus or creditors by mail to us.
Princeton Law Firm has designed a system that is truly full service. We understand the
importance of you getting on with your life and the true meaning of what “full service” means.
We are here to do all of the leg work and provide you detailed updates on where your case
stands on a regular basis. Most of our clients will be satisfied within 4-6 months sometimes
weeks depending on the situation we are dealing with.
What Type of Situations Can Be Handled?
Princeton Law Firm has handled every type of negative credit situation imaginable. From late
payments, public records to bankruptcy our 4-6 month program works with out fail. It is
important for us to emphasize the fact that there is no negative credit situation we can’t handle.
Our goal is to get your credit scores increased and your negative credit removed as quickly as
possible. While accomplishing that task, we will supply you with a satisfaction guarantee,
complete customer service and continued education.
Can I Do It Myself?
Repairing your credit can be a timely and confusing process if you don’t know what you are
doing. As a matter of fact, we found that most individuals will damage their credit even more in
attempting to accomplish this task on their own. The important thing to understand is that it truly
takes years of experience to understand how the credit bureaus work. It’s exactly like being in a
court of law. If the prosecution does not understand the defendant’s mechanics 100%, it is most
likely that the prosecution will lose its case.
We understand that there are “do-it-yourself kits” being sold every day. We can assure you the
Credit Bureaus have had their hands on every one of them and are trained to look for the
formatted letters that come along with these kits, so if you’re looking to have your credit
recovery movement denied, go buy a kit.
Why Using Princeton Law Firm is More Effective
Experts say that 80% of legal situations are resolved more efficiently and effectively when
handled buy an attorney. Our directing attorney has been representing consumers with credit
issues since 1984.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
7
Legal Credit Repair
Using Princeton allows you the strength to enforce all legal code affiliated with the FCRA,
FDCPA and other laws used to accomplish our results. Most individuals haven’t even heard of
the FCRA.
In a recent meeting with Transunion, Equifax, Experian and Fair Isaac Co. (the people who
developed the credit score) A member of our team was told directly from the credit bureaus that
when attorneys get involved with the disputing process items get deleted. It came straight from
the horse’s mouth that using an experienced attorney can take you the extra mile.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
8
Understanding Your Credit Score
Understanding Your Credit Score
Introduction
There are many types of credit scores including information from credit applications and bank
files, but the most commonly used are credit bureau scores. The purpose for credit scoring is to
give lenders a measurement of your credit risk at a particular point in time. Credit bureau scores
are maintained at a credit reporting agency and are based solely on information in consumer
credit reports.
Check your credit report for accuracy annually and at least 90 days before major purchases
such as mortgages. Mistakes are common and effect your scores considerably.
How Mistakes Are Made
Credit report errors are due to incomplete information or information about someone else.
Clerical errors are often made when entering information from a hand written application. An
individual may have applied for credit under a different name such as “Richard”, “Rich” or “Dick”.
Other errors include inaccurate Social Security numbers or data entry problems when misread
by lenders. Serious problems happen when loan or credit card payments are inadvertently
applied to the wrong account.
FICO Score
The most commonly known score is the FICO score developed by Fair, Isaac. This credit
bureau scoring method is used by all three credit reporting agencies under different names.
Equifax calls their FICO score BEACON, Experian named theirs Experian/Fair, Issac Risk
Model and Trans Union has named theirs EMPIRICA.
Lenders purchase credit scores along with credit reports. Your credit score is calculated by a
mathematical equation using information from your credit report at that agency. Patterns in
hundreds of thousands of other credit reports are compared against this data to identify your
level of future credit risk. In order to calculate a FICO score, your credit report must contain at
least one account which has been open for at least six months and one account that has been
updated in the past six months.
No single score can indicate whether a specific individual will be a “good” or “bad” customer.
The FICO score has been determined by lenders as the best guide for future risk based solely
on credit report data.
Generally speaking, when someone talks about “your score”, they’re referring to your current
FICO score. Scoring does not consider gender, race, nationality, or marital status. In fact, the
Equal Credit Opportunity Act was enacted to prevent lenders from considering such information
when issuing credit. Yet another law set up to protect you, the consumer.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
9
FICO Score Evaluations
Categories Evaluated In FICO Scoring
Payment History
35% of your FICO score is based on this category.
This is the most important factor in a credit score. Lenders look at how well you pay your credit
accounts on time. When factoring in other credit reports, 60%-65% show no late payments at
all. Keep in mind, recent delinquencies or collection items will count more seriously than if they
are older.
Amounts Owed
30% of your FICO score is based on this category.
This category identifies how much debt is too much debt. Owing a great deal of money on many
accounts may indicate an individual is overextended and may make payments late or not at all.
It is important to note that even if you were to pay your monthly credit card bill off each month,
your credit report will indicate the balance as of last statement prior to payoff. Other
considerations include original loan amount compared to current balance, number of accounts
open with and without balances as well as types of revolving credit accounts.
Length of Credit History
15% of your FICO score is based on this category.
Simply, the longer you have a credit history the better the score in this category.
New Credit
10% of your FICO score is based on this category.
A request by a lender for your credit report is considered an inquiry by the bureaus. Several
inquiries in a short period of time is interpreted as greater risk and will decrease your score.
FICO does not penalize for rate shopping as is not associated with higher risk. FICO scores on
inquires over the past 12 months however, inquires remain on your credit report for two years.
Types of Credit In Use
10% of your FICO score is based on this category.
A variety of credit accounts are considered when calculating your FICO score. These include:
credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans.
Opening an account of each type will not increase your score. The total number of accounts you
have is also considered.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
10
FICO Score Evaluations
What FICO Doesn’t Consider
FICO does not consider the following:
Race, color, religion, national origin, sex and marital status
Age
Salary, occupation, title, employer, date employed or employment history
Where you live
Any interest rate being charged on any type of credit account
Child/family support obligations or rental agreements
Certain types of credit report inquires such as requests made by lenders in promotional
“pre-approved” credit inquires and requests made by lenders to review your account with
them.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
11
Tips
Tips To Raise Your Score
Pay your bills on time
Bring late or missed payments current and remain current
Accounts that have been turned over for collection and have been paid in full will remain
on your credit report for seven years
If you find yourself overextended, contact your creditors to make new arrangements or
speak with a legitimate credit counselor
Keep revolving credit balances to a minimum
Consider paying off debt rather than transferring balances
Don’t close unused credit cards to raise your score immediately
Don’t open unnecessary credit card accounts or too many too rapidly to increase
available credit
Do rate shopping in a focused period of time
If you’ve had credit problems, re-establish credit by managing your current credit
accounts
It’s OK to check your own credit report through an organization authorized to provide
credit reports to consumers or credit reporting agencies
Princeton Law Firm, 2009 Confidential - All Rights Reserved
12
Your Credit Report
Your Credit Report
Who Tracks Your Report
Credit reporting agencies maintain files on millions of borrowers. Lenders making credit
decisions buy credit reports on their prospects, applicants and customers from the credit
reporting agencies.
Your report details your credit history as it has been reported to the credit reporting agencies by
the lenders who have extended credit to you. Your credit report lists what types of credit you
use, the length of time your accounts have been open, and whether you’ve paid your bills on
time. It also tells lenders how much credit you’ve used and whether you’re seeking new sources
of credit. It gives lenders a broader view of your credit history than do other data sources, such
as bank’s own customer data.
Actually, your credit report doesn’t exist until you or a lender asks for it. It is then compiled by
the credit reporting agency based on the information stored in that agency’s files. The
information is supplied by lenders, by you and by court records.
Updates are sent to each of the credit reporting agencies, usually once per month. These
updates include information about how their customers use and pay their accounts.
What’s In Your Credit Report
Although each credit reporting agency formats and reports this information differently, all credit
reports contain basically that same categories of information.
Identifying Information
Your name address, Social Security number, date of birth, and employment information are
used to identify you. These factors are not used in scoring. Updates to this information come
from information you supply to lenders.
Trade Lines
This section on your report lists your credit accounts. Lenders report on each account you have
established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the
date you opened the account, your credit limit or loan amount, the account balance and your
payment history.
Inquiries
When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This
is how inquiries appear on your credit report. The inquiries section contains a list of everyone
who accessed your credit report within the last two years. Reports typically list both “voluntary”
inquiries, spurred by your own requests for credit, and “Involuntary” inquires, such as when
lenders order your report so as to make you a pre-approved credit offer in the mail.
Public Record and Collection Items
Credit reporting agencies also collect public record information from state and county courts,
and information on overdue debt from collection agencies. Public record information includes
bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
13
Your Credit Report
Making Sense of the Codes Used by Credit Agencies
Credit Reporting Agencies use codes to determine your FICO score. These codes are called
score reason codes. These codes appear on your individual credit report and are used to
identify why you may have been declined credit. For example, you may have a code of D2 on
your credit report, which would mean Delinquency on Accounts. Fair Isaac has approximately
132 different codes used in determining your FICO score. Princeton Law Firm understands
each code used by all three bureaus, allowing us to more effectively dispute your negative credit
items.
The 100 Word Statement
The credit bureaus will allow you to include a statement that is attached to an item that is
disputed on the basis of accuracy and validity free of charge. If your statement is only
explaining extenuating circumstances or other reasons why you haven’t been able to pay your
debts, the credit bureaus will most likely charge you a fee.
The truth about this statement is the bureaus are only required to list a summary of your
statement as they see fit and in most cases very few creditors even read it. We suggest
explaining your situation directly to the creditor. At least they will get the full story. To make
matters worse, the statement may stay on your credit report even longer than the disputed
negative information.
Princeton Law Firm believes the 100 word statement to be a pacifier the credit bureaus hand
out to avoid spending the money to complete a formal and legal dispute of an item.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
14
PLF’s Process
Princeton Law Firm’s Process
At Princeton Law Firm, we use a legal four-point process to produce results. Through several
tests, we have found this strategy to have the best impact both legally and economically.
The first step is to audit the credit bureaus or creditors using the Fair Debt Collection Practices
Act and the Fair Credit Reporting Act. These two laws have been established to protect
consumers like you. Creditors and credit bureaus are legally obligated to produce documented
evidence within 30 days to back the claims they make about you. If they cannot validate their
claims, they must promptly remove any undocumented information from your credit report. This
process takes 45-60 days, on average, to produce significant results.
For an additional fee, we also offer our clients the legal option of having a certified dispute sent
directly to the creditor. This approach will generally create the quickest result-usually within a
30-day period.
The second legal step we take is to look at your credit score. Many consumers have no idea
what information is used to calculate the credit score that is used for almost every financial
transaction they attempt to secure. Princeton Law Firm examines the coded factors that go into
calculating your score and devises a formula to increase your scores over the time you retain
our firm.
With our knowledge and expertise, we have raised credit scores significantly, in a short period
of time, without ever removing a negative item from a report. You should be aware that there
are hundreds of factors involved in determining a credit score. Your negative credit history is
only 35% of that. You can count on our team to legally address 100% of the factors involved in
calculating your credit score.
The third step of the legal process is to build your credit. Princeton Law works closely with
associates in the banking and credit industry. Our associates have been building credit for
consumers and businesses worldwide for over 15 years. This unique part of our process makes
all the difference in achieving the perfect credit score. You will not find this service with any
other company.
The fourth step of the legal process is to educate. Our legal team has found that educating our
clients is essential to securing long-term credit recovery. While you retain our services, we will
educate you on topics that may include the secrets of credit scoring, credit building, credit
repair, mortgage loans, credit cards, and federal laws. This knowledge will help you to make
future credit decisions and enable you to maintain and improve your new credit standing.
Our Guarantee
It would be illegal as well as unethical to guaranty a specific result pertaining to our
representation. However, we do guaranty that if you retain our firm for 6 months and have not
seen any permanently deleted items from your report or a credit score increase as a result of
our work, we will gladly refund your service fees.
Princeton Law Firm, 2009 Confidential - All Rights Reserved
15
Contact Info
Contact Information
Websites
Federal Trade Commission
www.ftc.gov
Fair Isaac, Company
www.fairisaac.com
Princeton Law Firm
www.princetonlawfirm.com
Princeton Law Firm, 2009 Confidential - All Rights Reserved
16