Fee to fix credit report

[Anonymous]

Hello,

Three years ago I had terrible credit and my average score was 508, I initially paid Lexington Law Firm to clear my report.  After 3 months of no change, I decided to do the work myself.  I went to different website and followed everything that pertained to my situations, asked questions and followed advice that was given to me. Thanks to God and help that I obtained, I was able to remove judgements and over 30 negative items off my credit report. Last time I checked my credit score with TU: 762, Ex : 740 and with Eq: 743 a few months ago.

A friend approached me to help him clear his credit report, the only negative he has are 4 judgements and 3 negative charged off credit cards.  I offered to assist him with cleaning his credit report and he said he wants me to do all the leg work. I offered to help him write lettters, showed him how all he had to do was copy and paste form letters.  He is refusing to do anything in regards to fixing his credit, he asked me to do it for him. He said he would pay me to do all the work for him. 

What would be a good fee to charge?

At my previous job, I had access to computer, fax and able to print freely.  So, I did all of my credit repair while at my old job.  At my new job, I do not have access to the internet as I did with my previoius employment. 

How much should my fee by?

[Anonymous]

If he was my best friend, i'd do it for free. Otherwise, i'd charge 500-1000?

[Anonymous]

my $.02

bill him like an accountant or attorney, since that is basically the type of work you'd be doing.  take a retainer fee of say, $50 or $100 to start.  keep track of your billable hours, charge a reasonable fee per hour, and send him a monthly invoice.  this is a long-haul project as you know all too well, so a flat fee would not do either of you justice.  it would be too much for him to pay all at once.  you'd get shorted if he paid only what he could pay up front.  

billing monthly, you'd both have incentive to keep up the business relationship as you'd be paid monthly, and he'd see changes/progress in monthly increments.  also, you can demonstrate to him first-hand why he should pay on time each month.

you'll also want to enroll in a daily puller, (there's a CMS thread somewhere on the forum) which will cost $12-20/mo depending on which one you use.

someone with more experience can help you set a per hour fee.  

[llecs]

Just be careful with the law. In some areas, it is unlawful to have a credit repair business, even if it is for a friend. Check out the Credit Repair Organizations Act and your state's laws.

[RobertEG]

+1.

Advice on the side is much different from representation as a credit repair business, which is what you become once you take $$.

You have no authority, unless you strike a representational contract with him, to contact any creditor, debt collector, or CRA on his behalf.

And if you dont have power to act as his agent, they wont talk to you. Are you licensed to do this?  IRS will also consider that as income.

If he refuses to do anything under his own name, then you are entering into perilous grounds, without legal authority, to act as his rep.

I would not offer anything other than personal advice.  If he is unwilling to put his signature onto any letter of dispute, PFD, DV, or GW, then he is not serious about credit repair, and, in my opinion friendship should not be your guiding issue.  Mixing business and frienships can sour both, in a minute.

To be the Wizard of Oz, behind the curtains, I would bill him for the very, very low professional fee, on the side, of at LEAST $50 an hour.

[ABattle]

I'm currently working on starting my own credit repair business & there is much to think about b/c this is a very time consuming process & you have to make sure you aren't violating any rights & doing everything by the books.

[Itsmeagain]

4 judgments and 3 charge offs and he doesn't want to participate?

My first question would be; "How did you get into this mess"?

My second question would be; "What do you intend to do with your good credit"?

I would hate to do all that hard work for someone who is irresponsible, even for money.

[Anonymous]

Hello,

Thanks for all the advice!!!!   I went to his place and showed him where to pull his credit report and showed him the exact website to go for help.  I showed him how to cut and paste, if he did not want to type letters.  His response was that his "Secretary does all his typing for him."   I showed him how to dispute, one week later I asked him did he send the letters to the credit bureau and he said "No, he was waiting for me to do it."  

I can understand perfectly how overwhelming it can be when cleaning up your credit, since I initally was terrifed and elected to pay Lexington Law Firm, until I took the bull by the horns and cleaned it up with the help of God.  I had no friend to guide me and I was embarrased and ashamed that my credit was in ruins.   My friend is very intellingent and has a well paying job earning over 100+ yearly.  He is used to dictating to employees and not used to actually doing hands on work himself. 

As to the questions of Judgements and charged-off,  I wondered how did this occur and why knowing his salary.  Being financially irresponsible has destroyed his marriage.  I really feel for my friend since his marriage is over and he is living in a little studio apt paying $740 a month in NYC.   So I offered to step in and help him fix his credit, he felt since he was not going to help and it takes time that I would pay me.  I told him he is my friend, he does not have to pay me to help. I will freely help him. 

There are no credit to speak to, his debts are all judgements and charged off debts.  He "claims" he has the money to do a pay to delete. 

[llecs]

I will say this on basis of personal experience. Disputing is the last thing you'd ever want to do, especially if it is legit. Bad things can happen.

[Anonymous]

The first thing to know for sure is there is no PFD on judgements. Judgements have to be vacated through the courts. There is a process that is involved and no guaranty that they will be vacated. With this being said does not mean that the law-firm/creditor will not accept payment for the process of removing the judgement. But it is not as simple as make a payment and it comes off.

IMO taking on this venture will not be easy and may cause numerous additional problems, which in point can ruin the friendship completely. 

Good Luck