Lecture Notes: Utilizing the Trump Loophole for Credit Repair
Introduction
- Topic: Removing negative accounts from personal credit reports.
- Loophole: Known as the "Trump loophole," effective March 2025.
- Objective: Permanently remove adverse credit accounts as if they never existed.
Understanding the Loophole
- Origin: Inadvertent rule established about three years ago.
- Medical-related credit items: Law from 20122 allows removal of medical bills from personal credit reports, including hospital bills and any medical-related expenses.
- Legal Verification: Confirmed with an attorney that the loophole is legal for closed collection accounts.
Types of Accounts
- Adverse Account: Any account negatively impacting credit.
- Examples: Closed accounts, charge-offs, collection accounts.
- Removal Goal: Higher FICO score and improved creditworthiness.
Steps to Utilize the Loophole
- Verify Legal Basis: Confirm legality with a qualified attorney.
- Identify Medical-Related Expenses: Examine if any closed account expenses were medical-related.
- Credit Reports: Obtain credit reports from Experian, Equifax, and TransUnion.
- Highlight Adverse Accounts: Focus on closed accounts, including charge-offs and collection accounts.
- Send Removal Requests: Submit letters to credit bureaus citing the relevant law to remove medical-related accounts.
- Persistent Disputes: Continue disputing every 35 days until removal.
Potential Accounts for Loophole
- Credit Card Expenses: Charges on credit cards for medical-related expenses can be targeted.
- Broad Definition of Medical: Includes dentistry, chiropractic, therapeutic bills, and prescriptions.
Process After Initial Disputes
- File Complaints: If disputes fail, file complaints with state attorney generals and appropriate federal agencies.
- Follow-up: Persistence in complaints can lead to eventual removal.
Maintaining Patience and Persistence
- Time Commitment: The process requires time and consistent effort.
- Tracking Progress: Use an Excel spreadsheet to manage timelines and actions taken.
Final Steps for Hard-to-Remove Accounts
- Lawsuit Consideration: If unsuccessful after six months, consider legal action.
- Future Content: More videos will cover lawsuit processes and rebuilding credit.
Conclusion
- Encouragement: Stay proactive and subscribe for future guidance on credit repair and entrepreneurial strategies.
- Contact: Follow-up videos will provide further details.
Note: The lecture emphasizes the necessity of being proactive and knowledgeable about your credit reports and the laws governing credit reporting. Consistency in dispute filing is key to successful credit report clean-up.