Creditwrench teaches the secrets of the debt collection industry and how to defeat their abusive practices without lawyers. We know how to win!
Saturday, June 30, 2007
New Oklahoma Laws.

New Oklahoma Laws

It appears that much of Oklahoma Laws have been rewritten or recodified and new laws have been passed as well.

Among the many interesting aspects of the new laws are the ones dealing with consumer credit.

Oklahoma Statutes Citationized
Title 24. Debtor and Creditor
Chapter 8 - Credit Services Organization Act
Section 132 - Definitions
Cite as: O.S. ยง, __ __

As used in the Credit Services Organization Act:

1. "Buyer" means any individual who is solicited to purchase or who purchases the services of a credit services organization;

2. a. "Credit services organization" means any person who, with respect to the extension of credit by others, sells, provides, performs, or represents that the person can or will sell, provide, or perform, in return for the payment of money or other valuable consideration from any source, any of the following services more than twelve times in a calendar year:

(1) improving a buyer's credit record, history, or rating,

(2) obtaining an extension of credit for a buyer, or

(3) providing advice or assistance to a buyer with regard to division (1) or (2) of this subparagraph,

So how does that affect Creditwrench and it's operation? Not at all for the simple reason that Creditwrench makes no claim whatever that the educational materials provided by Creditwrench will improve a buyer's credit record, history or rating.

Although Creditwrench does refer persons to companies who may or may not lend money to an applicant Creditwrench does nothing at all to help obtain any extension of credit for a buyer. Our referral is nothing more than providing a list of possible lenders to whom the prospective buyer may apply.

The sole purpose of Creditwrench is to provide educational materials, not credit repair or credit repair services. We often tell people that we believe that people should not pay anyone to do their credit repair for them.

We also strongly advise against providing false information to credit bureaus or lenders by any means whatever. Providing false information to lenders either directly or indirectly is a federal offense and can, if convicted lead to a state or federal prison sentence.

Recently there has been a great deal of attention being paid to the practice of buying tradelines of people with high credit scores and a long credit history. The way this works is that some companies offer to have those with poor credit scores added as authorized users to credit card accounts of people with high scores. They claim that this will quickly add a hundred or more points to one's credit score. They claim that this is not an illegal practice which is true. It is not an illegal practice to get yourself added to someone else's credit history by having that person add you as an authorized user on their credit cards.

Where the problem can arise is when you apply for a loan or a credit card and your artificially elevated score is used as the basis for extending credit. So long as you do not default on the loan you may never run into problems but in the event that you default the lender may discover that you provided false information in making the loan application. Experian has announced that their scores will soon be adjusted to take note of persons who have elevated scores as a result of being authorized users thereby borrowing the scores of persons other than themselves. This will greatly affect the scores of persons who have used that method of artificially enhancing their credit scores. Other credit reporting agencies will soon follow with the same actions.

Those who have been selling such tradelines should have recognized the potential for harm their products might cause and should have warned their customers that providing false information to a lender can result in legal action against them by lenders or government or both. Of course, if they had done that then nobody would purchase such products from them.

But the whole point is that Creditwrench does not provide information about credit repair and does not offer credit repair services.

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