Credit Furnishers Favored Over Consumers Under the Coronavirus CARES Act

NEW YORK - April 11, 2020 - PRLog -- PRESS RELEASE
As part of  Wise Rise's ongoing efforts on financial education the new free software was debuted at FreeCreditRepairSoftware.com to assist those in need. Jody Katz (former Collection Agency Manger) and Waqas Zulfiqar (former Wealth Manager) have teamed up at Wise Rise to continue their commitment to help create a financially healthy lifestyle through innovation—

If you miss one or more loan, credit card, or mortgage payments because of the coronavirus (COVID-19) pandemic, the creditor can report you as delinquent to the three main credit reporting bureaus—Equifax, Experian, and TransUnion—and your credit score will take a hit. But if you make an agreement for payment relief before you fall behind, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) prohibits that creditor from adding negative information to your credit reports.

If you aren't able to work out an agreement with a creditor and you fall behind in payments on a debt, that creditor may report the delinquency to the credit reporting bureaus. As a concession, some creditors have said they'll use a special code, one for natural disasters that adds a comment to the report, for delinquent debts during the pandemic. This code might make a difference if a potential creditor actually reads the full report when making a lending decision. But any debt reported as delinquent still shows up as negative on reports and can hurt your FICO credit score. FICO doesn't factor this kind of code in when calculating credit scores.

Prior to the CARES Act before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller. The Cares Act now allows dispute investigations take longer than the statutory timeframe. CFPB will consider a consumer reporting agency's or furnisher's individual circumstances and does not intend to cite in an examination or bring an enforcement action against a consumer reporting agency or furnisher making good faith efforts to investigate disputes as quickly as possible.

FreeCreditRepairSoftware.com will avoid you having to pay monthly service charges for credit repair in a new day where a 30 day investigation is no longer required. The software will not only assist in dispute letter generation. Subscribers will also receive information on consumer rights and credit worthiness trends and improvement tactics.