The economy over the past few years hit millions of consumers hard and as a result, many are trying to fix the damage that was done to their credit reports. Without a good credit score, it can be nearly impossible to rent an apartment, get a checking account or even find a job.

Before you agree to work with any credit repair agency, there are five facts that you need to know.

Do Your Research on Credit Repair Firms

Be wary of any credit repair company that solicits you, whether it’s through email, direct mail or by phone. This is a multi-million dollar industry and unfortunately, you can’t automatically give a company your trust simply because they sound legit.

It is vital to do your own research on a credit repair firm before proceeding. First and foremost, you should never have to pay for this service until the promised work has been done. Avoid any company that requires you to make an upfront payment in order to “fix” your credit. Even if they claim they will be incurring expenses on your behalf in order to contact your bill collectors and the credit bureaus, you don’t have to pay anything before they do the work. In fact, the Credit Repair Organization Act has made it illegal for these companies to charge you in advance.

Another red flag to look for is a credit repair company that encourages you not to contact the three main credit bureaus, Experian, Equifax and Transunion. Under the Fair Credit Reporting Act, you, the consumer, have every right to contact the bureaus and dispute any information that may be invalid.

Understand Your Rights

Before you work with a credit repair agency, it is vital to fully understand your rights as a consumer. The Fair Credit Reporting Act and the Credit Repair Organization Act both contain information that you need to know in order to protect yourself, both from debt collectors and from shady credit repair companies.

The CROA states that credit repair agencies must provide you, in writing, your legal rights and how they will go about repairing your credit, the amount of time they estimate it will take to accomplish this, and how much you will have to pay to complete the work. Any guarantees they make must be made in writing.

Promises They Can’t Keep

If a credit repair agency tells you that they can remove all of the negative information from your credit report, this tells you that they are not being honest with you. Only negative information on your report that is invalid can be removed. Even if you pay off your debt, the entry will remain on your credit report for a period of up to 10 years.

The dispute process provided by the three main credit bureaus is designed to ensure that all of the information on your credit report is accurate, whether or not it is positive or negative to you. You cannot dispute a debt that is legally yours and have it removed from your credit report. If this was true, no one would have any negative entries on their credit reports.

Creating a “New” Identity

Another common “promise” you may run into with some credit repair agencies is that you can create an entirely new credit identity and you won’t have to worry about your past mistakes. This is completely false and fraudulent and you may end up facing prosecution as a result of this tactic.

If a credit repair agency urges you to apply for an Employer Identification Number (EIN) or encourages you to falsely claim identity theft in order to get a new social security number, this is your best indication that you are dealing with a scam artist. Unfortunately, many consumers find this out the hard way, after they are already in legal problems due to lying on loan applications or misrepresenting their social security number.

Understand Your Options

Don’t get disheartened. Just because there are a lot of wolves in sheep’s clothing doesn’t mean that all credit repair options are bad. There are reputable credit counselors out there who can assist you in legally repairing your credit and getting your life back on track.

The author who contributed this article is Chase Sagum, Financial and Business blogger. Check out more of his content at www.lexingtonlaw.com.

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The interesting thing about the prospects of a world government is that there are aspects of a world government already in place. In the realm of international accounting, many countries are on the same page. After all, if the rules of accounting are different in every country and countries cannot come to any sort of agreement, where would that leave trading and investors? It is possible that trading and accountancy would take on a more piratical form, if not completely influencing a country in the interests of a bigger country.

Much like the metric system (and the imperial system of measurement), it has been seen that international accounting standards would benefit businesses and countries around the world. This is why there are International Financial Reporting Standards. Standardization across the world for accounts was created to make company accounts understandable and comparable across international borders. The need for these standards is a consequence of growing international shareholding and trading. For companies that have dealings in more than one country, such standards are very important.

The IFRS Foundation is a non-profit accounting organization comprised of two bodies: the International Accounting Standards Board and the Trustees. Within the foundation, there is also the IFRS Advisory Council and the IFRS Interpretations Committee. The trustees appoint members of the IASB, advisory council and the interpretations committee as well as establishing operating procedures, exercise oversight and raise the funds needed for operating. The group that oversees the effectiveness of the trustees is the Trustees’ Due Process Oversight Committee. The trustees are also accountable to a monitoring board of public authorities. The IASB is independent from the IFRS Foundation and is responsible for creating the standards that international accounting run by.

113 countries around the world have adopted IFRS and 85 of those countries require IFRS reporting for all domestic, listed, companies. This worldwide standardization is beneficial for companies because it improves the quality of information and reduces the costs of comparing alternative investments. The increased comparability of a set accounting standard will help companies that are involved in foreign activities and investment. International Accounting is made easier by these standards because all participating countries and the businesses therein, are on the same page. Math is now the closest thing to a universal language there is.

Of course, not all countries adopt the complete framework of IFRS. For instance, Australia has received a little criticism for their “Australianising” of the IFRS. Even though Australia was one of the first countries to adopt IFRS for domestic purposes, The Australian Accounting Standards Board was merely creating equivalents to IFRS that reflect local terminology. Some of those changes have been reversed, along with reinstating some options and eliminating some Australian specific disclosure. Australia has been on the side of a standardized international accounting framework since the very beginning, but saw the need to create an Australian version, possibly to keep some of its identity from being confused on an international scale.

Canada was a late joiner to the IFRS where international accounting is concerned. In 2011, it was made mandatory that all Canadian, publicly accountable and profit-oriented enterprises adopt IFRS for financial periods beginning on or after January 1st, 2011.

Taiwan is the most recent to move their businesses into this realm of international accounting. The companies listed in Phase I (listed companies and financial institutions supervised by Taiwan’s Financial Standards Committee) are required, as of January 1st, 2013, to prepare financial statements in accordance with Taiwan-IFRS. Phase II companies, which are credit card companies, credit cooperatives and unlisted public companies, will be required to use Taiwan-IFRS starting from January 1st, 2019. Early adoption was permitted for Phase I companies and is now permitted for Phase II companies.

The IFRS Foundation is a non-profit accounting organization comprised of two bodies: the International Accounting Standards Board and the Trustees. Within the foundation, there is also the IFRS Advisory Council and the IFRS Interpretations Committee. The trustees appoint members of the IASB, advisory council and the interpretations committee as well as establishing operating procedures, exercise oversight and raise the funds needed for operating. The group that oversees the effectiveness of the trustees is the Trustees’ Due Process Oversight Committee. The trustees are also accountable to a monitoring board of public authorities. The IASB is independent from the IFRS Foundation and is responsible for creating the standards that international accounting runs by.

There are many U.S. based agencies that are experienced in international accounting and know well the rules and regulations the IASB sets forth. One of the most experienced would have to be RBZ, a firm that has the large firm technical experience combined with the client attentiveness of smaller firms.

RBZ is an international accounting firm. Our international tax services group provides tax consulting and compliance services to businesses that are based in the U.S. and currently have foreign operations, or are planning to expand internationally. We also assist non-U.S.-based companies that are entering or planning on entering the U.S. marketplace.

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