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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

Behind the Scenes of a Million-Dollar Credit Repair Business with Bruce Politano

By: Daniel Rosen March 08, 2022

If there was ever a podcast episode you didn’t want to miss…

THIS is it! 

In today’s podcast episode, this Credit Repair Millionaire teaches dispute tactics about…

How the Bureau’s process dispute letters…

How to remove student loans…

The strategy for removing collections…

The secrets to remove late payments…

And so many more SPECIFICS about his top-secret credit repair strategies!

You seriously don’t want to miss this amazing interview with Millionaire's Club Member, Bruce Politano!

 

10 years ago, Bruce was working for a credit repair company that had grown from 4 to 400 employees in just a couple of years. 

Until he found out about the shady tactics that his company was using to take advantage of credit repair…

After that, he decided that he wanted to start over again cleanly, by starting his own credit repair company. Since then, he’s grown it to over a million dollars in revenue, and he hasn’t looked back since.

And today, he handles more disputes than anyone else I know! 

Head over to YouTube to watch the full interview with Bruce but here’s a few highlights… 

 

How exactly does the dispute process work? 

I think that this is the foundational knowledge of any credit card company. So you create the dispute letter in Credit Repair Cloud, you print them and then you put it in an envelope. And then you put the postage on there, and it goes to the mail system through USPS. USPS is then going to deliver that envelope to the credit Bureaus. 

The Bureaus are receiving 1000s of letters a day. When the mailman comes to the credit bureaus, they come with multiple bins filled with envelopes. Somebody just takes those bins, and now they're in the Bureau. Now think about certified mail. It's the same process, nothing changes. The only difference is that now somebody is actually signing or there's proof that it got to the Bureaus. So the only difference between a certified and a non-certified is to certify you have proof that an envelope got delivered to that address. My personal advice is to save your money on certified mail. 

So now the Bureau has stacks of envelopes that they've got to go through, right? What happens is those envelopes get opened by a machine. And now someone is actually looking at that letter. They're skimming that letter just to try to figure out what kind of letter is this. So they have different categories for each type of letter that they get. They're not reading all the pages of the letters, they're just trying to get an idea.

Now, the biggest myth that I think we have is that some letters don't get investigated. And that's not true. Every single letter that they get gets investigated because they have the duty to investigate it. The Bureau can assume that the letter did not come from the consumer, but they can't prove it. Therefore they can still they still have the obligation to investigate every letter. 

The Bureau then has this letter, and they all go through what's called their E Oscar system. E Oscar is nothing more nothing less than a system that the Bureaus use to communicate with the data furnishers in an electronic fashion. But what information is being communicated between the Bureau and furnisher? That's what the dispute letter is about. So the dispute letter gets scanned into the Oscar. Now, this is where actual humans get involved. 

They're going to read that letter. They're finding the disputes on the letter, and they're entering your code for those disputes. That's what's being communicated via E Oscar to the furnisher. So now the furnisher has to do an investigation on their end. And then they have to respond back with a code to the Bureau and it's either verified or updated or deleted. 

So the furnishers now respond to the Bureau. And what do the Bureaus do? If it's just verified, then they don't change anything. If it's updated, then whatever new information gets transmitted to the Bureau. If it's deleted or no response from the furnisher, the Bureaus delete it or if the furnisher says to delete it, the Bureaus delete it. And that's how the investigation happens. There's a lot more to it. But that's in a summary. That's what it is.

 

What is your secret to permanently deleting a bankruptcy or other public records from a credit report?

So there's a strategy that has been working for many years, and it's starting to start to phase out. But it doesn't matter because it's still a powerful strategy. When you look at a credit report, the Bureau says the furnisher of the data is the courthouse. When you look at the credit report, it says US bankruptcy court XYZ as the furnisher. If you go down to the creditor's information, they have the bankruptcy court information there. So the Bureaus are saying the furnisher of this data is the courthouse. So then what do we do? We send a letter to the courthouse, and we say, “Hey, do you verify or report information to the credit reporting agencies? The reason why I'm asking? I see it on my credit report. They're telling me you told them that you're reporting this information to them. Please let me know if you do this or not right.”

And then we send them another little piece of paper with the letter that says a little box that says, “yes, we verify information with the Bureau or no, you know, we don't verify information of the Bureau”. And there are lines for them to write explanations. And then we also include a return envelope as well with the customer's address and name. So all they have to do is put their response in there and put it in the mail. It's already pre-stamped and everything.

And what happens is, when the court replies, say they reply, no, we don't report anything or verify anything with credit reporting agencies. Now, you take that, and you send that to the Bureau and you say, “Please explain. You're saying they do. They're saying they don't. Who do I believe you're obviously telling me a load of crap? Delete this from my credit report immediately, because I have proof that you're reporting inaccurate information like the wrong furniture. That's damaging.”

A lot of times, the court may not reply the first time. I have to have hit them a couple of months before they finally reply but some courts now have like a template already that they send. And I have leverage, as the Bureau continues to verify, go to the CFPB website and file a complaint with your leverage. Because they may play around with you. They're not going to play around with the CFPB. That is awesome. By the way, they get their information from Pacer, which is a public record database. That's where they're really getting information for.

 

What's your advice to someone starting out with a brand new credit repair business?

I have two. You have to determine what do you want more. Do you want more to be an expert in credit repair, and know all the ins and outs? And how to get all the laws and study everything and be an expert in how to get things removed. Or do you want to be an expert business owner that grows and scales a successful company? Because you can't do both. Well, you have to choose one. There's no right or wrong answer. It's up to you. If I want to know exactly what I'm doing to perfect the craft, then I'm gonna find a way to really monetize that. But if I want to find a way to really scale my business and grow my business, every second that I spend reading these laws, I'm not spending growing my business. So make a choice. Do you want to be the expert and know all the ins and outs? Or do you want to really grow and scale your business to you know, whatever revenue you want to achieve? You got to choose one.

Now Bruce shares SO many amazing golden nuggets, there isn’t room for them all in this blog. Go check out the full episode on YouTube to learn more of Bruce’s secret credit repair hacks! 

And one more thing! If you want to get certified in disputing and launch your very own credit repair business in just a couple weeks, I invite you to join our Credit Hero Challenge!

It’s an amazing program that has helped tons of Credit Heroes get their first clients, get certified in disputing, and gain confidence in knowing they are launching their credit repair business on a solid foundation that allows them to grow and scale FAST! 

We’re starting the next challenge in just a few days, so SIGN UP NOW at creditherochallenge.com!

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

Daniel Rosen  00:00

Hey credit heroes. Today we are going to talk with Bruce Positano, who started a credit repair business from nothing, grew it into a multi million dollar company. And today, he handles more disputes than anyone else I know. And he's here today to share his very best top secret credit repair strategies, so you better stick around. So the big question is this, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing? So we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. Okay, before I dive in, if you are new to my podcast, be sure to click to subscribe and turn on notifications. So you don't miss any of the secrets that I share each week here on the credit repair business secrets podcast. And if you want me to hold you by the hand, as you launch your very own profitable credit repair business, then go to creditherochallenge.com. Okay, let's get into this. Our guest today is the founder of the largest outsourcing agency for credit repair disputing, and today he's going to share some of his top secret credit repair strategies. So please welcome to the podcast, credit repair millionaire Bruce Positano. Oh, hey, Bruce. Welcome, Daniel. Thank

 

Bruce Positano  01:41

you. Thank you for having me here.

 

Daniel Rosen  01:43

I'm so excited. You're here, and congratulations on all your success. How's life? Busy?

 

Bruce Positano  01:48

Life is great, man. I got a two year old and a one year old. So it's always busy.

 

Daniel Rosen  01:54

Wow. Well, for people who don't know your story, just tell us a little bit. How did you get into credit repair and why?

 

Bruce Positano  02:03

Yeah, so a little over 10 years ago, I started working for a debt relief company here. And I'm from South Florida. So I started working for a debt relief company here. And they were like a debt settlement with attorneys involved. And when I started working at this company, you know, I was one of four employees. And when I left there, two years later, I was one of 400 employees. So as a company that grew really, really fast. And when I left, I left for a very specific reason. My role at the company, when I left was I was responsible for hiring and training every single employee that came to the business, whether they're doing sales, customer service or processing, I was responsible for those people for training them and hiring them. And I came to find out that this company was just scamming every single one of their clients. They're taking money from their clients and not doing what they say they were doing. Right. And I just, you know, I had to have a heart to heart with myself, you know, I'm responsible for hiring training people to do this. And also, I found myself not being able to sleep right at night. So I quit, I quit. And one of the services that this company was supposed to offer along with their debt relief services was credit repair, right? And that's why I always identified myself, I liked it. I was intrigued by it. And when I decided to quit, I was like, You know what, I don't want to deal with all this debt settlement crap. There's so much, you know, hoops and walls and stuff they got to jump through. I think I'm gonna focus just on the credit repair side. Let me let me give that a try. And I started my credit repair company. You know, I just quit from, you know, the scam company and started my own business and never looked back.

 

Daniel Rosen  03:35

Wow, amazing. And how long did it take before you were able to make a living at it?

 

Bruce Positano  03:41

I mean, it had to be right away. I had no plan B. So you were all in I when I decided to quit when I found out what was going on. Like where the clients were complaining and complaints were coming in and BBB complaints and all that. I literally had like a week or two before I decided no, I don't want anything to do with this anymore. You know, so I didn't have time. You know what, I'm gonna stay like two more months, save some money. No, I decided I want to quit, and it will sink or swim at that point. You know?

 

Daniel Rosen  04:07

And I know you grew that business very fast. You were in the millionaire's club very quickly. So about a year and a half ago, two years ago?

 

Bruce Positano  04:15

Yeah. 2020 20. Yeah,

 

Daniel Rosen  04:19

time sort of changed during the pandemic of the day, for sure. What a year or two feels like 10 years. And it was a new group. You built that up? And then you started this outsourcing business? And would you just speak for me? Correct? Can you explain how that works? And how that can help a credit repair company who wants to you know, someone who's, who's getting their credit repair business, how they're growing it and how that can help them?

 

Bruce Positano  04:46

Yeah, absolutely. So, um, you know, I started my own credit repair company, and I grew that, you know, over, I want to say five or six years and then I sold it. I didn't want to be involved so much on the credit repair side. Because I found another service that I like those easier to perform, and maybe we'll talk about later, but I sold that company with a little over 7000 clients at the time. So I mean, we were decent, right? Um, and I sold the company and I started focusing just on, you know, I was doing student loan relief instead. And that's not to focus on that, but I get a feeling the tug, come back, you know, the credit repair and just like, Come back, come back. So instead of, you know, just coming back with my own credit repair company, again, I decided that, you know, what I went through all the struggles that credit repair company owners go through, I know what it's like. So let me go in and back into the credit repair industry in a different capacity. And that's where dispute for me came up, where we provide pretty much all the services that a credit repair company needs to offer their clients, we can offer those services for the company instead. And what that does is it completely frees up the credit repair company owners time to focus on growing their business, instead of me stuck in their business, right. Like, that was the biggest problem that I had before I could afford employees. Man, I wish it was nine o'clock at night, I'm licking stamps trying to get you know, envelopes out the next day, you know, do the customer service for all these clients and the sales for all the leads coming in, and then creating letters and printing, it was taking up so much of my time that my my company plateaued, I couldn't grow anymore, right? Because my time was all spent in licking stamps, and not going out of building my affiliate base. And you know what I was doing to get clients. So when I created this few formulas for that purpose, let me free up your time, so that you can work on growing your business and being a business owner and not a stamp liquor hit, you know what I would say?

 

Daniel Rosen  06:33

Awesome. So, so now you handle all their disputes, you do the customer service, you and you even set up automations for them, right?

 

Bruce Positano  06:43

Yes. Oh, well, we started with this view for me, it was just um, the disputing the processing, right? And what that looks like is you know, we log into your software, we create the letters, we print the letters, we mail the letters, 3035 days later, we log in, and we update all the results. And we're done. Right? We don't have we have no contact with the client. That's how we started. And from there, you know, our client started asking us, is there any more anything more they can do? Can you help us with the phones? I was like, Hmm, can we help you with the phones, and we found a way to do that we started offering customer service. So now we have a customer service for credit card companies. And then we started building automation. Because again, the main focus, the mission of this for me is to free up the owners time, right. So anything that we can provide to free up your time, we can probably do that. Wow.

 

Daniel Rosen  07:26

Now, how many companies have used your service?

 

Bruce Positano  07:30

I mean, today, probably we got about 900 and something companies.

 

Daniel Rosen  07:34

Wow. That's amazing. And how many dispute letters? Would you say your process on the average month

 

Bruce Positano  07:39

on any given month is between 40 to 50,000? dispute letters? Wow. That's

 

Daniel Rosen  07:44

so crazy.

 

Bruce Positano  07:45

Yeah, that's Bureau letters, not counting, you know, the furniture stuff that we do. And yeah, so we, we stay pretty busy.

 

Daniel Rosen  07:52

Wow. Well, I think it was right, you're probably doing more disputes than anyone I've ever had on the show. So I think it'd be really awesome if we can get into some credit disputing tips and advice for credit heroes who are out there watching and listening. Are you up for that?

 

Bruce Positano  08:10

Absolutely.

 

Daniel Rosen  08:11

That's why I'm here. Okay, awesome. Well, for people just getting started in credit repair. Let's start out with this. Can you please explain how the dispute process works? And what happens from the time you drop off the envelopes at the post office? All the way until the time that the client receives a response?

 

Bruce Positano  08:30

Yeah, absolutely. I think that this is like the foundational question at piece of knowledge at any credit card company or a nice to know, before you know how to dispute a collection account or bankruptcy, you need to know this process, right. And it took me you know, a while to figure it out. And it was only after talking to major industry experts, people who work for decades at the credit bureaus, and even at FICO that it came to figure out how this works. Right. So this isn't something I just read online. This is something that I got from people that were decades inside bureaus, right. So you create the dispute letter in credit repair cloud, you print them and then you put it in an envelope, right. And then what happens right, you put the postage on there, and it goes to the mail system through USPS. Right. USPS is then going to deliver that envelope to the credit bureaus. Okay, now how let's now we're the Bureau's the Bureau's are receiving 1000s of letters a day. 1000s. Right. When the mailman comes to the credit bureaus, they come with their multiple bins filled with envelopes. Right? Somebody just takes those bins, and now they're in the bureau letter. Now think about certified mail. It's the same process, nothing changes, right? The only difference is that now somebody is actually signing or there's proof that it got to the Bureau's so the only difference between a certified and a non certified is out to certify you have proof that an envelope got delivered to that address, right, no proof of what's in the envelope, no proof of, you know, anything else other than an envelope got to the Bureau's and the Bureau's they're receiving those the same way they're receiving regular math, right? The only difference that if there's a return signature requested somebody signing, and it's even a stamp, right? Like they stamp, it's not a physical persons signing, it's a stamp that's on the green receipt that you get back. So now the letters are there. So and the reason why I'm explaining this is because a lot of people like, Oh, I gotta send my letter certified. And I don't want to create like a commotion around it. But my personal experience, right, and I think it can count for something based on how much volume we do is that there is no difference. Because as much as you can prove that something got delivered, you can't prove what that delivered. Right?

 

Daniel Rosen  10:46

Because once the envelope is opened, they throw away the envelope, right? Yeah. So it's, it's the same letter,

 

Bruce Positano  10:53

same thing. So if you're watching this, my personal advice is save your money on a certified mail. Like there's no need for that you can't prove what was in there. And that's the whole point of it anyway, right. So now the Bureau's have stacks of envelopes that they've got to go through, right? And what happens? What happens is those envelopes, they get open right through a machine. I mean, think about it, you don't have people physically opening envelopes and getting paper cuts, machines are opening that right? And now someone is actually looking at that letter. And they're skimming that letter just to try to figure out what kind of letter is this? Right, because it could be a letter with affidavits and with Attorney stuff and whatever. So they have different categories for each type of letter that they get. They're not reading all the pages of the letters, they're just trying to get an idea. Okay, I placed it in this category or this category or this category. Right into categorise those letters. Right. Now, the biggest I think myth that I think we have an accreditor space is that some letters don't get investigated. And that's not true. Every single letter that they get gets investigated because they have the duty to investigate it. Right. They the Bureau's can assume that the letter did not come from the consumer, but they can't prove it. Therefore they can still they still have the obligation to investigate every letter. Right? Listen, I live in Florida, right. But if I'm on vacation in California, at Daniel's house, and I decided to send something to the Bureau's from California with my Florida address on it, they still have to investigate that. So the fact that oh, the consumer lives in XYZ state and the postmark comes from XYZ state. It's that's all you know, it doesn't matter the Bureau's investigate and I just went through all these questions with the Bureau employees who you know, worked there for decades, and they say numbers, everything gets investigated. So how does investigation happen? The Bureau's then have this this letter, and they all go through what's called their E Oscar system. Right? Now, again, this is a big misconception. What is e Oscar right? E Oscar is nothing more nothing less than a system that the Bureau's use to communicate with the data furnishers in an electronic fashion. That's what it is right? Think of it like a telephone. Right? Like I pick up my phone, and I call Daniel cell phone. The phone is what we're using to communicate with each other. Right without me having to fly across the country to see face to face. That's what he Oscar is right. He Oscar is a system that the Bureau's communicate with the furnishers. Right. But what information is being communicated between the Bureau's and furnishes? That's what the dispute letter is about. So the dispute letter gets scanned into the Oscar. Okay. And what happens is someone an employee, now, this is where actual humans get involved. Okay, they could be in India, in Costa Rica, maybe in the US, depending on the escalation with the letter, they're going to read that letter. And for every account that is disputed on that letter, they code that dispute, okay, so it can get colder, like somebody saying, This is not my account, it's gonna get colder, like, oh, one, right? Or if they're, oh, I was never late, it's gonna get coated, they'll never late code, right. So that's what a physical person is doing. They're finding the disputes on the letter, and they're entering your code for those disputes. That's what's being communicated via e Oscar to the furniture. Okay. Now, what happens on the furniture side is the furniture logs into their E Oscar system. And they see they have a dispute, right? And the dispute says, not mine. So now the furnisher has to do an investigation on their end to figure out is this true? Is this really not theirs? Right. So what processes do they have to go through to figure that out is internal processes that they have for themselves? They have to maybe look for a contract. I mean, that's fine a statement they have to see if this person exists in my database, right? And then they have to respond back with a code to the Bureau's right and it's either verified or updated or delete, right or wrong ACTV which means this came to us, but it shouldn't have come to us. So the furnishers now respond to the Bureau's right. And what are the bureaus? Do they update their records accordingly? If it's just verified, then they don't change anything verify, right? If it's updated, then whatever new information to furnish or transmitted three officers to the bureau there We're going to update that on the consumer report, right? If it's deleted or no response from the furnisher, the Bureau's delete, right so if the Bureau's if the furnishers don't respond, the Bureau's delete or if the furnisher say delete the Bureau's delete, right, and then they package that up, and they send that out back to the consumer. And that's how the investigation happens. Right? So it's pretty, you know, and I just summarise it as much as I could, because I don't want to take too much time. There's a lot more to it. But that's in a summary. That's what it is.

 

Daniel Rosen  15:26

That's awesome. That's the best explanation I've ever heard of it. So awesome. Now, when sending the dispute letters, most people send that they start by sending them to the credit bureau. But when do you send letters to the furnisher? And what's the importance of sending the dispute letters director, the furnisher?

 

Bruce Positano  15:47

Alright, so in everything that I just explained of the process, right, if you get one takeaway from that, is that the Bureau's are just the messenger. That's it. The Bureau's are just the messenger the Bureau's are receiving this dispute. And what do they do with it? Nothing more, nothing less than forwarded to the furniture. And then they just sat there and waited for the furniture to respond back. And so they're just the middleman. They're just a messenger. Right now, the bureaus do have an obligation under the FCRA to maintain accurate records. So it is their obligation, right. But they're getting their data from the furnishers. Right, if the furnisher is sending them inaccurate data, they can't push the blame to the furnitures. They have to own that mistake as well, because they're bound by the FCRA to report accurate data, right? But you can't go to the bureau and say, you're reporting this Synack I mean, you can you this isn't accurate. This is, you know, the wrong balance or the wrong date open, delete this immediately, right, you could do that. But bureaus don't really have the power the power is in the furnishers hand, because the Bureau's are gonna take that this view, they're gonna afford it to the furniture the furniture is gonna see that in a furniture gonna say, No, it's correct, boom, verified, and the business they verify they say it's correct. It's correct. The Bureau's don't have the payment contract the history of the account, all the steams bureaus will have all that the furnishers have that. So in your question, how important is it to go to the furnisher man It's do or die is the furnishers. Right? Now, it can get expensive to go to the furnishers. Right? Because you have three bureaus, right? How many furnishers? Could you have one on a credit report? Right? Yes, are you gonna have more than three different furnishes? Now, for those who don't know what furnishers? are? They're the companies that report the data to the credit bureaus. So Midland Funding is a furnisher. Right, Bank of America is a furnisher. Right, so all the collection agencies, the banks, the credit unions, they're all furnishers. And they're called furnishers their data furnishers because they furnish data to the Bureau's right. So the Bureau's can only do so much even though they're obligated to maintain accurate records. But now, what you do is if you go directly to the furnisher, right, and the furnisher is verifying something to be true that you know is not true, man, they're the source, right? The buck stops in their desk. So now you really have some power to do something to try to get that account removed. Now, what I'm saying is it can get expensive. So normally, our process, we like to go to the Bureau's first get the low hanging fruit removed, right? Oftentimes, you're going to get a couple deletions by going just to the Bureau's. But those things that man, you've been disputing for months and months and months, and they're just not coming out, go to the furniture, now you're highly going to increase your chance of that stuff being either updated or removed or fixed. Right. So once you go to the furnisher depends, right? Like, how much do you charge your clients? Right? If you're charging your clients enough to justify going to bureaus and furnitures, every single round, then great, do that, right. But if you're kind of like, stuck on time and money, then maybe wait so you get some of the low hanging fruit meaning get some furnishes deleted first. So now you only go to the furnaces with what's left of furnishes on a credit report, right in our dispute process that starts around four. So we do rounds once a week three bureaus only, and then rounds four and beyond bureaus and furnishers. We never stopped going to the Bureau's got it. That is great advice.

 

Daniel Rosen  19:14

Okay, since you're the student loan guy, I got to ask this, what is your secret tip to getting student loans removed? More often than not?

 

Bruce Positano  19:25

Alright, so and this is something that it was it's proven by trial and error for multiple times, right? In credit repair, nothing is guaranteed. And I'm not want to sit here and say I'm, it's guarantee you're gonna get student loans deleted every time if you use the strategy. I'm not that guy. I'm never going to do that. I'm never going to tell you that. Or I will tell you use that in my experience more often than not, when done this way. We see some sort of better success rate. All right now, this works for federal student loan debt only, okay, only for federal student loan debt. If it's a private student loan debt This strategy doesn't apply. Okay, so that's the disclaimer there. When you dispute a student loan, it's taken the same way as any other account. Right. But with student loans, there's programmes that the Department of Education offers to borrowers or federal student loan debt programmes that include consolidation of the loans and lowering monthly payments with income driven plans and different forgiveness programmes and things like that. So and that's actually what I got into when I sold my credit card company. So I mean, I've still been doing this, you know, for last five years, and I never stopped. What happens is, when you consolidate a federal student loan debt, what happens is, when you look at a credit report, you'll never see one student loan account, right? Like you're gonna see 458 10 different, you know, Naviance, or Great Lakes or Fed Loans. rarely see one, right, you're always gonna see multiple events. And why is that for every semester, that you go to school, the Depart of education disburses alone to pay for that semester. And all the credit report, that's what it looks like. Right? So if I see 10 accounts, I know that guy went to school for 10 semesters, because the disbursement that the Department of Education gives to the student is per semester. So for every semester, you gotta pay for classes, books, blah, blah, blah. That's why there's multiple loans on a report, right? When they graduate, or they're no longer in school full time for six months, they have to start paying those loans back. And it's one payment for all the disbursements right. On the credit report, it looks like you have six different loans. But really, it's one payment that's going to cover the entire debt. And if you miss that one payment, what happens to all six of those on a report? They all show to miss payment.

 

Daniel Rosen  21:49

Oh, wow, that really sucks.

 

Bruce Positano  21:51

It's terrible. Right now, the department education gives you a 90 day cushion. So in order for it to show late, you have to be 90 days past due or more. So they will report your 30 or 60 days late, they will only report you once you go 90 days late. Right. So I mean, it's a little bit better. They're the only furnishers that will do that everybody else you're 30 days late boom, you named right. So federal student loan debt, you will never see a 30 or 60 day late payment on a federal student loan debt on a credit report. You will always be okay. Okay. Okay. 90 days late. Right. And people use that as a dispute reason. How is it that I'm, you know, on time in March, and then in April 90 days late, right. But that's why they didn't report you're late. Right? They reported you 90 days late when you're 90 days late. So what does the consolidation do? The consolidation takes those six loans. I'm using six as an example. Obviously, they take those six loans, and the Department of Education pays them all off. Right to the to the servicer, so Navigant Fed Loans, Great Lakes, mohila, Sallie Mae, these all servicers of the department of education loans, right servicers Think, think of them like the bank that is collecting the debt. So the Depart of education says, You know what, here for loans, I'm gonna pay you off these six loans. Okay. And then the Department of Education reissues one brand new loan, in a total amount of the six loans that they had before, back to the client back back to the bar, right. So on the borrower's credit report, what does that look like? All six loans, the old ones are paid in full and closed, right? It doesn't say that was paid in full through consolidation, like, it reports exactly like it would as if the client had mailed them a check to pay them off in full. It's exactly how it's gonna report. So all those old loans are now paid and close. Right? That's the benefit of itself. Right? Like, now it looks like you borrowed a bunch of money, you paid a bunch of money back, right? It looks good on you. And one loan is reissued back to the student in the form of one account, and the total debt amount, right. So you had $30,000, between six loans. Now, you still have $30,000 in the form of one loan. Right. And that's what happened. So now, those six loans, if you're disputing them, they're all loans. It's probably because there's some sort of negative aspect to them, probably a payment history problem, right? So what happens is, once those while those loans are open, and they have a balance, every single month, they get reported, because it's an open account, it has a balance every single month, the furnisher right there is going to report to the Bureau's what what the account information is, right. But what happens once they're closed and paid? What reports what does happen? Nothing, right. There's nothing to report the accounts paid off, you pay off your auto loan you trade in your car, or is the lender still reporting that loan to the reports? It's not? Right. So student loans, the same thing? Those old loans are all paid in close, meaning they're no longer reporting every single month anymore. You have one brand new account. Now is the time to dispute those old loans, because the chances of the furnishers even responding to the dispute are very slim and That's why they come off. They're close, they're paid, they're not going to go back and dig old graves to try to find stuff to verify information. They're just gonna delete, we don't care. Wow, that's brilliant. Yeah, now doesn't happen every time. Remember, it's in the beginning. Last thing happens every single time. But more often than not, if you're patient enough to go through that process of first consolidating your clients loans, waiting for the loan to report as paid and the new loan report and now you hit them, then your chances are increased? For sure.

 

Daniel Rosen  25:28

I love that. That's real gold. Now, what about what's your strategy for removing collections?

 

Bruce Positano  25:36

Alright, so let's talk about collections for a second. What is a collection? Right? It could be one of two things. One, your debt defaults with Bank of America, Chase Wells Fargo, whoever would the original creditor where you incurred the debt originally? Normally, what happens is after about 180 days, the debits charged off, right? And what is the charge off? It's nothing more nothing less than an accounting term. Right? It means that we're writing the debt off as a loss. Right. And at that point, the furnace, the original creditor, let's say, Chase, they have an option to sell the debt to a collection company, or to hire a collection company to collect on the debt. Right? There's a difference. When they sell off the debt. They're selling off all the rights to that debt, they no longer owe it. Midland Funding now owes it owns it. When they hire a collection company. Still their debt, the collection company just hired to collect the debt. Right? Either way, now you have a collection on your credit report for the you know, Chase credit card, right? It'll say, Chase, charge off balance zero, hopefully, right if they sold the debt, and then Midland Funding, original creditor Chase balance $5,000. That's how it shows up. Right? Right. So what collection companies by debt, they buy them in bulk right there, they go to chase, and they say, Hey, what do you got for me? You got anything to sell, and Chase is gonna be like, they're gonna bundle all of these defaulted debts, total of $100,000. And then the fund is gonna say, Cool, I'll give you 15 grand for all of that. Right? And Chase will be like, huh, but I take zero, which I'm getting from the clients, or do I take the 15 Grand that I'm being offered for Midland Funding? Right, and I'm in the funny purchases all these debts from Chase. They all the rise of them now is they're dead they're going to collect. Right? So that's very important, because Midland Funding, just purchase a bunch of debt from Chase. But all the purchase, Daniel was what? Name, email, phone number and debt amount? Do you think that Chase sent documents and documents and documents from every single one of those debts that they sold them in a funny over 2 million funding? They don't, they don't, wow, they don't, they just saw the customer's information. Now Midland Funding goes to goes to, you know, collected. So that's how it works. Now. When your collection companies, they have to first validate a debt before they're able to collect it. And there's something called a Dunning period, right? Where the collection company needs to notify the consumer that they now own this debt, and they're going to come collect it, right. And the consumer has 30 days from that done in periods of request validation of that debt from the collection company, right before the collection company can actually start pursuing the debt in a legal manner. Right. So my strategy for collections is very simple. A collection company cannot collect a debt, they have not validated to the consumer. Correct. So what we do is we will send a debt validation request to the collection company, not to the Bureau's bureaus don't validate anything. collection companies validate, right? original creditors, Chase Bank of America, Wells Fargo, they don't validate anything, they verify things, right. So there's a difference between validation is a term they're not interchangeable. Validation is under FDCPA for collection companies. Right. So now I've sent a debt validation letter to Midland Funding. And I'm going to wait three to five days, and then I'm going to send a dispute to the credit bureau for that same account. Okay. Now, if the collection company verifies the debt with the Bureau, before they validate the debt to the consumer, that's considered an attempt to collect the debt. If the collection company verifies debt information with the Bureau's that's considered an attempt to collect the debt, because they're verifying a debt to the Bureau's right, and they cannot collect a debt that they have not validated yet. Right. So why don't we send a letter to the collection company first, because we want to make sure that they receive our notice of validation request validation first, before the Bureau's even get our dispute because now we know they received our validation request before they received the verification request from the Bureau. And if they verify that that's the bureau before they validated that to the consumer, that's the FDCPA violation. Wow. Right? Can you use FDCPA violations as leverage to potentially get accounts removed? Absolutely. Right. And if you work with an attorney, the attorneys will eat that up all day, all day, they'll love that. Right. So now you're not only potentially getting the accounts removed, you're potentially even getting money back for your consumer, if your companies partner with an attorney. So that's our strategy, when it comes to collections, we always go to the world send a validation letter to the collection agency first, wait a few days, then send a regular dispute to the bureaus. And if the collection company should verify the debt without validating to the consumer, which happens more often than not, then you really got something, you got some leverage now, right? There's a difference when you file a BBB complaint, or a CFPB complaint with leverage versus just there didn't respond to my dispute. You know what I'm saying? Like there's, when you have more leverage, you have more power. So that's the name of the game, right? You want more power on your side to fight them with than not. And that's why every strategy that we have, is focused around trying to get as much power on the consumer side as we can to push against the collection agencies and bureaus to get stuff removed.

 

Daniel Rosen  31:19

Got it? That's, that's amazing. Now, you mentioned FCRA. Attorneys, do you recommend that each credit repair business have a relationship with a FCRA? Attorney?

 

Bruce Positano  31:29

Absolutely. And it's easier, it's easier than than you think to do that. I mean, there's a lot of industry attorneys that are around that have been doing this for a very long time. And they love to work with credit repair companies, right. And, you know, just like those Accident Attorneys, like you don't pay them unless they win, right? They get paid from from the lawsuit settlement, just like your client will get paid, potentially, right. And the ultimate goal is to try to get the account removed, you know, so if you're really trying to do everything in your power to help the consumer get that removed, you're not really doing everything in your power until your partner with an attorney to try to get that stuff off. Got it.

 

Daniel Rosen  32:06

Okay, how about what is your mortgage and foreclosure strategy?

 

Bruce Positano  32:12

Alright, so with mortgage foreclosure, it's a little bit different. Let's go back to loss, right, because the only reason credit repair works is because of the consumer protection laws that are in place. Right? Where else it wouldn't work. Credit Bureau wouldn't exist. You know, bureaus, don't just do things because, you know, you motivated them to notice because there's leverage, right. So the only way you get leverage against the Bureau's and the furnishers, is if you can catch them doing something they shouldn't be doing. Right. So let's talk about mortgages. So there's a law in the real estate world called RESPA. Right, which is a Real Estate Settlement Procedures Act. And there's a bunch of different things in there, that pertains to realtors, and to lenders and to all that. But there's something that's really powerful, something called a qualified written request for Q WR. Okay. And what that is, is a consumer can send what's called a qualified written request letter to the original creditor who the mortgage was with, okay, and what that qualified written request is, it's requesting all documentation regarding real estate loan, everything, not just the closing Doc, you ever closed on a house? If you bought a house? You know what it's like,

 

Daniel Rosen  33:26

right? Oh, yeah, you're signing like through a phone book. It's, it's a giant stack.

 

Bruce Positano  33:31

So just the starting documents of a real estate loan is like this, right? Now, imagine every single billing statement for that account. Right? The older you've had a mortgage for, the more statements you're gonna have, right? If, if the bank says I owe them $3,000. Today, and I've had this account for, let's say, three years, the only way that I know that the $3,000 balance on the current statement is correct, is if I know what was the previous statement, and the previous and the previous and the previous all the way to inception. Because what if there was a math error in any one of those statements? Then is my last name oh to $3,000? Balance? Correct? It's not. Right. So that's what the qualify request is. you're requesting all documents regarding that account? Directly to the mortgage bank, the lender who will lend the mortgage right? And what are they going to do? Do you think they're going to go into their, their filing cabinet, open up the drawer like the Bruce Almighty movie, right? And then get all those documents and scan them all or make a competence? Chances are, they're not going to do that. Right? So because of what is easier for me to do is to lead as opposed to send you all this information. They just delete, or they will ignore you. They won't respond, which is great. Because now Hey, you didn't respond. Hey, you didn't Hey, it is fun CFPB complaint Hey, I've been requesting requested requested haven't responded, and it wants to get something from the CFPB they're probably gonna respond, right? And now do you think they still want to go into their big filing cabinet? Get everything? Or do you think they're just going to remove the account?

 

Daniel Rosen  35:13

They're just going to remove it right? Well, the

 

Bruce Positano  35:17

name of the game is leverage, right? That's the name of the game who has the most leverage, the banks have the most leverage? Or you finding a way to get more leverage against them? That's the name of the game.

 

Daniel Rosen  35:25

Amazing. Okay, what are your secrets to removing late payments from a credit report?

 

Bruce Positano  35:31

So late payments are very tricky, right? Late payments are tricky. And you have to be careful. Let's talk about late payments when it comes to how much does it impact you, right? Speaking of a mortgage account, right? If you're trying to get a mortgage, for example, a 30 day late payment will affect your credit score for two years. Okay, a 60 day late payment will affect your score for five years, a 90 day late payment, or longer is a key derogatory item, it's gonna affect your score for seven years. Right? Now, you got a late payment on a credit report that happened 16 months ago, 18 months ago, it's getting set up 24 months range, right? Let it go. My personal opinion, in a couple more months, it's not even going to be impacted to score anymore. And the impact, and it's gradual, right? It's gonna thin you hard when it's first 30 days late. Or once it's been three months that a 30 day late happen, or six months out of 30 day late happened or a year down the 30 daily happen, it starts losing its impact on the score, it starts impacting less and less and less up towards 24 months, it's no longer than impacting it at all. So first, you have to consider is it worth even disputing in the first place? Right? If it is, right, if it is, how many late payments are there? Right? If you're talking about one or two late payments, on an account that you've had for three years or five years, they've never been late before, your chances of getting a goodwill adjustment are high. And I've had that happen personally on mine, I had a bad motorcycle accident couple years ago, I was in the hospital for 11 days. God knows what I went through. And I didn't make a payment on one of my account on my American Express card. Right? I was in a hospital couldn't figure it out. Right? Couldn't do it. I looked at my credit report and crap, I forgot the American Express payment. Right? Dude, I called up American Express got to speak to whoever the highest supervisor was that I could explain my situation, the next monthly payment was gone. Right? So based on the relationship that you've had with your lender, right with the furniture, are you willing to do a goodwill adjustment on this? Right? I'll always start there. Right? If it's just one or two late payments on a really aged account, and chances are they're gonna work with you, they will do their adjustment. All right, now, you're talking about you got a whole bunch of 60 and 90 day lates. And, and all that, and you're worried about getting the whole account removed, because it's still open. But you have all these late payments, I wouldn't even go after delay payments, I'll go after the entire trade line and try to get the trailer because the chance of you removing multiple late payments and keeping the account. I don't think I've seen it. I don't think I've ever seen it. Right. So at that point, it's more advantageous to try to get the whole thing removed than to try to fix eight different late payments on an account, especially if they're all key derogatory payments, right? So I go, you know, if it's one or two late payments, there's a 30 day late and or a 36. And then you never been laid before. Obviously something happened, write a letter meant, you know, I got sick, or I lost my job or whatever it is, we've had such a great relationship. Otherwise, please, please, please, are you willing to, you know, forgive this late payment, do a Google adjustment. Here's what I've done on my site to make sure this never happens. Again. I've enrolled in auto pay or whatever, send a letter like that, and just all the banks will adjust. Now your account has like bird poop all over it. Chances are you just just try to get the whole counter movements that

 

Daniel Rosen  39:02

got it especially if the account is closed, right? Because then they're not going to work with you, especially if the account is closed. Yeah, absolutely. How about your killer strategy to get rid of repossessions?

 

Bruce Positano  39:13

Alright, so repos are, again, different monster, right? It all goes back to laws. And I'll tell you, if you're spending your time not understanding and learning how credit repair works, you're spending your time doing the wrong things, right. The service that you're getting paid for, is to try to remove inaccurate, unverifiable obsolete information from a credit report, right? If it's accurate, and verifiable and not obsolete, it's not gonna come off, right? So that's why you can't guarantee it because you don't know if it's going to be proven to be accurate and it's going to be verifiable, right. So you don't know that until you start the process. So with repossessions it's the same thing what laws are around the repossessions, right, you got to study those and there's different loopholes. that you can get through. And when it comes to to repossessions, what we like to do is first we ask how old right we find out how old the repossession is, if it just happened in a car was financed, right? Not least, but financed, and they had GAP Insurance, right? Did they get their GAP insurance money back after the repo? Right? And if not, then now you're starting to see some inaccuracies on the account itself, right? This used to work tremendously well, a few years ago was Santander Bank, you know, but then there's other laws that are regarding contracts with auto loans, right? And you got to read them, and you got to know them, and it's gonna be different for every single account. But my strategy is very simple. I go to the Bureau's first, right, I'll hit them three times, the Bureau's are just sending my request over to the furnishers. Anyway, right, then I'll find something, oftentimes you'll find some loans, auto loans or leases, they have to be multiples of six. Always, your loan will always be able to be divided by six, meaning it's 12. month long. 2430 3672 84. Right. 66? If you see a 67, under the term for the loan, how's that? All those are the are divided by the variable by six, right or so that's a violation there. Right? Now, remember, you're sending all this stuff to the Bureau's, the Bureau's and all this stuff to the lender? The lender is verifying everything, when you get the lender to verify something that you know is not right. That's your leverage, right? That's your leverage. So that's what we do. We want them to verify it, right? Like if you're not deleting that, I want you to verify it, right? I want to get that letter back that says verified, because then I can take that letter from the Bureau's that said, verified? Not once, not twice, but three times, right. And I can write a letter now to the lender. And I can say you verified not only once or twice, but three times that XYZ is ABC, right? It's correct. It's clearly not, because bla bla bla bla bla, you you're reporting inaccurate information on my credit report, you're violating my consumer rights under the FCRA. I demand you remove this damaging information on my credit report immediately, right. And leverage. It's all about leverage, find what's wrong on the account, make, try to get the Bureau's to verify wrong information. So now you have even more leverage when you go directly to the furnisher. And you rub that all over their face. You say you did this? That's awesome. You messed up, get it off my report now, or I may have to find some legal help against you. Right, never say I'm gonna sue you, I may have to look at my options with an attorney. I like that you have that language in your letters to the furnishers. And you scare them?

 

Daniel Rosen  42:51

Awesome. Well, we're on a roll here. Okay. How do you wipe out inquiries from a credit report?

 

Bruce Positano  42:58

So I have a love hate relationship with increase and with what people say about increase. I personally don't care for increase. And I'll tell you why. We all know acres are 10% of your credit score, right? And from a 300 on a 50. That's, you know, 550 points to get to play with. So that's a potential 55 points that you can gain or lose on anchors alone. Right. But that's assuming that you got all your increase today. Because just like late payments over time, they lose their weight. Okay. And a big misconception when people dispute anchors. Number one rule is never dispute an angry title or an open account. Never do that. Okay. We made a mistake, actually, recently with one of our clients. And we did that their credit card, the oldest account that they had on our credit report got shut down, because we disputed an anchor with an open account. Never do that. Right. Where humans will make mistakes, you know, so they happen. So I know that happens when you dispute increase to open tides open accounts, you run the risk of that account getting shut down. Right, because what is an inquiry an inquiry 100 times out of 100 times they actually happen? Because unlike anything else on the credit report, inquiries are placed on the report by the Bureau's themselves that are reported to them by furnishing. How does that work? When you apply for a credit card with Chase? Before Chase approves or denies you What do they do? They go to the credit bureau and they say hey Equifax let me see a copy of Bruce's credit report. At that point before Equifax releases a report to chase. Equifax is going to notate on their own records. Chase has requested a copy of Bruce's credit report, meaning that's the inquiry. So the Bureau's put the anchors on report themselves. They're not reported to them by the bank. So someone requested that information with the Bureau's when I put it on there, right. That's number one. Nine times out of 10. The consumer did it unless their identity was stolen. Right. So first, let's understand how the anchors get on a report in the first place. The Bureau's placed them there. Then I'll report it to them by the furniture That's the first thing. The second thing, when people have a tonne of inquiries on their credit report, more often than not, it's because of a car loan, or mortgage, right? And we all know you go to the dealership, they ding your credit 300 times, I'm being facetious, 1012 times whatever. And because they're shopping around trying to get the trying to get you the best rate for your brand new car, right. But what happens is, according to FICO, and FICO algorithm, within a 30 to 45 day period, all inquiries tied to auto loans will only count as one, the only thing you want. So if I go here to Honda, and I apply for a car there, and Honda runs my credit and tries to approve me with six different banks today. And I was like, ma'am, I gotta think on this, and I walk across the street to Toyota. And Toyota does the same thing. And then two weeks later, and I'm going to drive a Benz, I go to Mercedes, and they think my credit, the only anchor that's hurting me is the first one from Honda, within that 30 day period, right. So even though you have multiple inquiries on your credit report, only, it's only hurting your score once because you're not trying to buy six different cars, you're trying to buy one car, you're shopping around for a loan, so you're not going to get penalised as if you had apply for six different credit cards, right? Same is true for mortgages, right? Man, I'm gonna apply for a mortgage for this lender, they were on my credit, I didn't like what they gave me they gave me a 4% rate and it's 2022. No, I'm gonna go over there, I got the two and a half rate with them. Only the first one counts within a 30 day period towards hurting the score. Right. So that's next thing to understand is like Matt, increase, only stay on the report for two years. And after 12 months, they don't even impact the score anymore. So how old is the inquiry? If it's close to 12 months or older than 12 months? I don't care if you're removing the scores and changing, right. And they come off after 24 months. So now, people dispute all the inquiries that did not get approved for right. So they bought the Honda and then did dispute all the other inquiries. That's great and dandy, but it's not really doing much to the consumer, right. And even when you apply for a mortgage, they're going to ask you, man, you have a lot of inquiries on your credit report. Here's a piece of paper and you got to tell me what each one of those inquiries are for. They're not saying denied, because you have too many inquiries when it comes to a mortgage right now, for a credit card. Right? It's the same thing. If you apply for a credit card with Chase today, and then you apply for a credit card Bank of America tomorrow, and then you go with one Wells Fargo tomorrow as well. Those are all separate inquiries, because you apply for three different accounts. Right. So when people are denied for too many inquiries on their credit report, they're not the banks are not denying them because of too many inquiries due to auto loan accounts or mortgage accounts, is because you've been applying for credit very often recently. Right? And that makes you risky. Like why are you trying to borrow money so much? Right? Maybe I don't want to lend you anything. Right. So let's say you are going to dispute the inquiry. Then again, FCRA says everything on a credit has to be accurate, verifiable and timely. Right? So with anything, I'm not saying it's not mine, can you verify it's mine? Right? We never just do it, not mine. That's just that's just unethical. Right? We're never going to do that. Unless it really isn't. Unless the customer is like, I have no idea what this is, this is not mine. Right? Then I'll say, Okay, are you willing to file an affidavit with the FTC with the government agency? If you're lying, you're gonna get in trouble? Are you willing to file that? Are you even willing to go file a police report? Because somebody stole your identity? If this isn't us, somebody did it. Right? And then that's how you know if they're lying or not, because if they're just not mine, because they know it could work, and they're not willing to do all the other stuff, then you know, they're probably not going to do it. But anyways, then you'd say, hey, please verify that you have permissible purpose for me to pull my credit, because that's it right? On the FCRA. The lenders need to have permissible purpose to pull your credit, meaning you got to have authorised them. Do you have my credit application on file? I'd like to see that. Because I don't remember. I don't remember the day I did that. Right. I bought a car two months ago. Can I tell you the date that I applied for the car? No. So I'm not lying. I don't remember when I apply for this. Please send me my original credit application. If you can't prove permissible purpose, you're not allowed to report this removed from my credit report. There's a legal and ethical way to do things without lying. without calling the Bureau's and doing this new little scheme. Oh, I didn't authorise this delete lol. But as long as you get the right person on the phone, it's going to work. And then you're doing that you could do that. But why be shady if you can do it the right way. Right? So it's all about know your stuff. And there's no reason for you to want to do things in an unethical or illegal way. Right? Ask for the permissible purpose, ask for the documents. They have to provide it. If they can't provide they know how to report it. And now you have leverage. That is

 

Daniel Rosen  49:55

really good advice. Okay, here's the big one people always want to know What is your secret to permanently deleting a bankruptcy or other public records from a credit report?

 

Bruce Positano  50:09

So there's a strategy that, you know, has been working for for many years, and it's starting to start to phase out. Right? I want to phase out. Nothing, it doesn't work anymore. still does. But if you're caught onto it, right. I mean, there's so many companies now using a strategy that they know what's happening. But it doesn't matter because it's still a powerful strategy. Right. You go, when you when you look at a credit report, the bureau says the furnisher of the data is the courthouse. Right? When you look at the credit report, it says us bankruptcy court XYZ as the furnisher you go down to the to the creditors information, we have everybody's addresses, they have the bankruptcy court information there, right. So the Bureau's are saying the furnisher of this data is the courthouse. Okay. So then what do we do? We send a letter to the courthouse, and we say, Hey, do you verify or report information? To the credit reporting agencies? Reason why I'm asking? I see it on my credit report. They're telling me you told them that you're reporting this information to them. Please let me know if you do this or not right. And then the way we do it is we send them another little piece of paper with the letter that says a little box that says, Yes, we verify information with the Bureau's or no, you know, we don't verify information of the Bureau. And there's lines for them to write explanations or whatever. And then we also include a return envelope as well with the customer's address and name. So all they have to do is put their response in there and put it in the mail. It's already pre stamped and everything, so we do it. And what happens is, when the court replies, they reply, no, we don't report anything or verify anything with credit reporting agencies. Right. Now, you take that, and you send that to the bureau and you say, Please explain. You're saying they do. They're saying they don't. Who do I believe you're obviously telling me a load of crap? Delete this from my credit report immediately, because I have proof that you're reporting inaccurate information like credit report, the wrong furniture that's damaging. You're telling me all the wrong people money. Right. So that that strategy seems to work. And when the court replies, a lot of times, the court may not reply the first time I have to have hit them a couple months, before they finally reply by some courts now have like a template already that they send, because I see like, Man, I'm going to get the same exact letter some of the courthouses saying they don't reply to, or furnish information, the Bureau's Great, take that, put it in a dispute letter to the bureau and fire it off. Right. And I have leverage, right at the Bureau's continue to verify, get you a little leverage, go to the CFPB website and file freakin complaint with your leverage. Right? Because they may play around with you. They're not going to play around with the CFPB. That is awesome. Yeah, by the way, they get their information from Pacer, which is a public record database. That's where they're really getting information for.

 

Daniel Rosen  53:01

Does it help to freeze LexisNexis at a time? Or any of that kind of stuff again?

 

Bruce Positano  53:05

Um, I mean, we don't. But I don't know how much more effective it would be if you did it. Because I'm, we've never had to do it that way. You know, but some people do it. They swear by it. And I'm sure it works. Even I'm sure it works. I'm not saying it doesn't work. There's more than one way to skin a cat. Absolutely. If I can do it with less effort, then I'm gonna do with less effort. But if it takes that, then we'll do that. Right.

 

Daniel Rosen  53:30

Awesome. Okay, I want to talk about student loans. Now, I understand you're earning over $100,000 A month by offering student loan relief services. And now you're teaching other credit repair companies to do the same? What are student loan relief services? And how can credit repair companies add this to their services?

 

Bruce Positano  53:53

Yeah. So how did I get into this? Remember, when I sold my my really successful credit repair company, it was to do this. So I had a huge motivating factor to do this. The programmes that the Department of Education offers to borrowers like the consolidation programmes, the income driven repayment programmes, the forgiveness programmes, the rehabilitation of defaulted loans, those are all things that the consumer can do and get in and then do for themselves. Just like fixing your credit, right, just like filing your taxes. So when I explained the student loan relief services, I like comparing them to to taxes, I can go to TurboTax and I can find out all taxes, right? The consumer can go on the student aid.gov website and consolidate their loans. They can, right it's not difficult, takes us less than 15 minutes to do. Right. So it's not hard if you know what you're doing. Right? Or I can take my taxes to a CPA who I paid 1000s of dollars for to do it. But they saved me so much more money because they know the loopholes, the ins and outs of how to do things better than I do because they do this for Living? So do I trust them to file my taxes more than I trust myself? Absolutely. Right. So the civil service the same thing, like you learn everything about all the programmes that the private education offers the ins and outs, how to qualify, who do not qualify? What are the loopholes, and then you use that knowledge to help your client and you do it for them. Right, just like an accountant or CPA, They've filed your taxes, on your behalf with the IRS, you on your clients that have deal with the Department of Education to help them with their student loan debt. So what we did was, at first, we had an affiliate programme with credit repair companies, hey, you're you have clients, when you have personal loans, send them my way, I'll send you 100 bucks for every single one worked tremendously for years. But then it got to a point where we were so busy, we're getting so many referrals, we couldn't handle them anymore, right? Which was a pretty good problem to have. But it's our reputation. Right? So I'm like, Man, instead of saying, no, stop referring them to me. I was like, let me teach you how to do this yourself, and stop referring them to me, keep the money yourself, instead of you making 100 bucks is a referral fee. I'm charging your clients $699 700 bucks, I'll happily pay you 100. If I'm making 700, right? How about you make a 700? Let me show you how to do it. Right. So I created this whole course it's like as detail, like a monkey can sit in front of a computer. And after they're done, they can go online and do this right and know how to help people, there's so long, and I created a course as a way to still help the credit repair business owners be able to help their clients with their student loans without having to keep referring to me, right. And what that did is a lot of people took advantage of that they took the course and they're doing it themselves. And some people decide, You know what, no, I still want to refer them to you. So it's fine. We still get enough referrals, but not too much where we can handle them, you know? So the course is teaches you think about your credit bureau challenge. But for student loans, that's awesome. It teaches you from A to Z, what the services are, how they work, who qualifies how to process how to submit how to follow up, literally takes you by the hand and walks you from A to Z. How do you even get the leads? How do you enrol the client, how to perform the service, how you get paid everything, so that we're not about to be involved anymore, you just take the course and you know how to do it yourself. Amazing, and oh, what's the link for that? Student loan companion.com forward slash course. Got it. If you go to just a student loan companion calm, you can register for a webinar where I just explained pretty much what the services are. But I don't teach you how to do it. You know, if you want to learn how to do it, you got to get the course. But if you want to know what they are, just watch the recording of the webinar. And you'll know exactly what it is. But if you're for the courses, student loan companion.com forward slash course.

 

Daniel Rosen  57:46

Got it and the webinars student loan companion.com Okay, I got a student loan question. Okay. When you default on a student loan, do they start garnishing your wages?

 

Bruce Positano  57:59

They can federal student loan debt, anything that we're talking about student loans here, today's gonna be relating federal student loan debt. What is the default, when you miss 270 consecutive days worth of payments, or nine months? Right? Once you go nine months past due, your loan goes into default status. And what happens when your loan goes into default status is that the part of education takes them away from the servicer fellows, Naveen Selime, whoever, and assigns them to a collection agency to service them. They have an internal collection agency called debt management, but they can also outsource it to another collection company. Okay. Now that collection company is servicing the debt, they can garnish 15 to 25% of every single paycheck that you get, because you default a lot, but doesn't stop there. They can also take your taxes. So if you have an income tax refund coming back to you. No, you don't. It's going to go all to the service or the student loan that just pay out what you still owe. So if you have $3,000 back coming, coming to you for from your income tax, but you owe $5,000 of defaulted student loans, that money is not even going to go to your account. It's going to go from the IRS to the Depart of education. Right. They're probably like next door to each other in the Department of Building. Right. So that's gonna go there to go towards the 5008 Oh, and that's the terrible thing about student loans, like they will follow you to the grave until you pay them off.

 

Daniel Rosen  59:25

Is there a way to stop the wage garnishments?

 

Bruce Positano  59:28

Yes, so there is there's two ways to stop the wage garnishment. Well, the actually there's one way to stop the wage garnishment you got to go through what's called a rehab programme. Okay, the rehab programme is a programme that is set up directly with a collection agency where you're asking them to rehabilitate your loans, and what that looks like is they're going to look at your your living expenses. They're going to look at your income, they're going to look at your family size, and they're going to determine what is an affordable payment that you can make, right? It can be as low as $5 a month. Okay, let's assume you get the $5 payment For the next nine months, you have to make that $5 payment on time, the whole point of the rehab programme is to prove to the Depart of education that you can make on time payments, again, that are affordable, right? Because why did you default because you're gonna make on time payments. So now you want to rehabilitate it, can you prove that you can make on time payments, that's what the rehab programme is, right? Once you make your fifth out of the nine payments that you have to make the wage garnishment can be lifted, so they're not going to let the wage garnishment. So you made at least five payments, right? You still have to make the remaining payments to complete nine payments to get the loans out of default, but the wage garnishment will stop after the fifth payment.

 

Daniel Rosen  1:00:39

Got it? Wow, this here like a walking Encyclopaedia of all this stuff. It's amazing. Like a whole hour has flown by so fast. Um, what's your advice to someone starting out with a brand new credit repair business?

 

Bruce Positano  1:00:52

I have two. Okay, that just comes to mind right away. And you can pick and choose what you want from this. Okay? You have to determine what do you want more? Okay? Do you want more to be an expert in credit, repair, and know all the ins and outs? And how to get all the laws and study everything and be an expert in how to get things removed? Or do you want to be an expert business owner that grows and scales a successful company? Because you can't do both? Well, you have to choose one. Right? No right or wrong answer. There's no right or wrong answer. It's up to you. Right? If I want to know exactly what I'm doing on a perfect that craft, then I'm gonna find a way to really monetize that. Right. But if I want to find a way to really scale my business and grow my business, every time that every every second that I spend reading these laws, I'm not spending growing my business. So make a choice. Do you want to be the expert and know all the ins and outs? Or do you want to really grow and scale your business to you know, whatever revenue you want to achieve? You got to choose one.

 

Daniel Rosen  1:01:53

That's good advice. That's really, really good advice. Okay, I want to switch gears real quick. I'm going to ask you a bunch of questions. Rapid fire. Oh, boy, answer was the first thing that pops into your head. Okay. All right. What's the most important lesson you've learned as a business owner? Be ethical? Awesome. What's your biggest superpower in business? I think transparency.

 

Bruce Positano  1:02:16

People value that. Right? If you're transparent, people do business with you. They know like and trust. They don't know like, and trust me, then I'm only in business for a short while. It's not going to last.

 

Daniel Rosen  1:02:29

What does business ownership mean to you? Freedom? Hmm. What drives and motivates you? My family? And what is your definition of success?

 

Bruce Positano  1:02:40

Freedom.

 

Daniel Rosen  1:02:43

Me too. That is awesome. Bruce, I appreciate you so much. Thanks for coming on here. Thanks for being such a friend of credit repair cloud. I really, really appreciate you for having me. Oh, my pleasure. This has been amazing. And how can people learn more about your outsourcing? Where do they go?

 

Bruce Positano  1:03:03

They can go to dispute for me.com. So the four is spelled out fo r so dispute for me calm. There's some information on there. They can book a call if they want to speak with somebody. So you have our website dispute free.com is the best way to learn more about our outsourcing services.

 

Daniel Rosen  1:03:20

Awesome. And one last time the the site where credit heroes can learn how to offer and monetize student loan relief services that

 

Bruce Positano  1:03:29

is student loan companion.com forward slash course.

 

Daniel Rosen  1:03:33

Awesome. Well, thank you again, Bruce. Thanks for being so awesome. Congratulations on the millionaire's club and all of your success. And thank you again for being here.

 

Bruce Positano  1:03:42

Thank you credit for our cloud. I really appreciate you guys.

 

Daniel Rosen  1:03:44

We appreciate you. And to everyone out there. If you're enjoying this podcast, be sure to click below to subscribe so you don't miss any of the secrets that we share each week on the credit repair business secrets podcast. And do me a favour rate me and review me give me a thumbs up, help me out so we can move up the charts, leave a comment or ask a question, because I read each and every one of them. And I will see you on the next episode. And until then be a credit hero and keep changing lives. Hey, everybody, it's Daniel again. And really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud Community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting started, and you dream of having a successful business of your own, so you can quit your nine to five and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own Credit Repair Business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online and go to creditherochallenge.com That's credit hero challenge.com and join the next challenge. And there's a challenge that starting in just a few days. So go get started right now at creditherochallenge.com

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