Below you will find some reasons why a person can be penalized with 7 years of negative credit reporting.  The so called "Fair" Credit Reporting Act law removes all incentive to pay.  At the bottom you will find some examples of how the UN-FCRA makes it almost impossible for any company that issues credit to collect on a bad debt.  You can thank Congress for all of this... and please, don't forget to ask Congress to change it.

Unemployment... if you are laid off from your job and miss a few payments you will be punished for 7 years with a negative credit report.  (I guess Congress wants to remind you that it was your fault that you were laid off?)

College Students... if you default on a credit card as a struggling student and then decide to be responsible and pay it off when you get a job.  The UN-FCRA allows you to be punished with a negative credit report for anywhere from 8 to 20 years depending on how fast you pay off the debt.  (I guess this is the way Congress has decided to reward you for getting a college education, with up to 20 years of negative credit... doesn't seem like a very "fair" reward to me, how about you?)

Death of a spouse... if you should be so unfortunate as to lose a loved one, the stress and change could cause you some short term financial hardship.  If you are late, or miss any payments you will be penalized for the next seven years with a negative credit report.  (I guess Congress wants to remind you of your loss, and this is their idea of sympathy?)

Accident... if you are hurt in a car accident and miss some work and thus miss a couple payments, you will be punished for the next 7 years with a lowered credit score.  (I guess Congress thinks it was your fault that you got rear ended because they force you to explain it every time you apply for credit for the next seven years!  That's "fair"?)

Disability... if you should be so unfortunate as to become disabled at work, or from a sports injury, and can't make ends meet then the UN-FCRA allows for 7 years of negative credit reporting on your account.  (I'm sure Congress isn't trying to promote work place safety here... they just didn't think about the negative effect this law would have.) 

Illness... God forbid that you or anyone in your family should suffer from an unexpected illness, like cancer, because if anyone misses a payments due to the stress on your family they will be punished for the next 7 years with a negative credit report.  (I guess Congress wants to remind America that you are not human if you get sick and that no matter what, all payments should be made like a robot... right, and this is a "fair" law?)

Divorce... it's not planned, but it happens, and you better not be late or miss any payments due to the stress or change in lifestyle because you will be punished for the next 7 years if you do.  (I guess Congress is trying to promote family values when this happens, or is it more likely that they just didn't consider that fact that people are human?)
 
Congress did not considered the negative ramifications of this poorly written law at all.

If you are a company that issues credit you can thank the UN-FCRA for making it so hard for you to collect a debt that someone has defaulted on.  After all, why would anyone want to pay when they are rewarded by not paying?
 
Yes, think about it...
If they don't pay it costs nothing and the penalty is 7 years of negative credit history. 
But, if they choose to make payments, then it's money out of pocket every month, PLUS...
Their credit report remains negative the entire time they are making payments, PLUS... 
They are punished for an additional 7 years after the final payment is made!

The way the UN-Fair Credit Reporting Act is currently worded, the negative credit reporting punishment could be up to 20 years if someone decides to pay off a bad debt.  Why pay?  I mean people aren't stupid, and, under this poorly thought out law ignoring your responsibility is a much better choice than paying.   After all, who wouldn't choose to have money in your pocket and 7 years of negative credit, versus no money in your pocket and up to 20 years of negative credit history?  

It's a no brainer, the UN-FCRA is destroying America and breaking our financial backbone.
The law is poorly worded, and the effects are widely damaging to every aspect of American life.

Please contact your Senators and Congressman/woman and tell them they must change this law.  Feel free to use the sample letter from our website, or write your own letter.   Everyone in America is affected by this law, and every  personal story that Congress can hear will help prove the point that we need change, and we need it now.

A change in the FCRA will force the credit bureaus, Equifax, Experian, Trans Union and others to comply, but it has to start with Congress.