It is a fact that there are some contractors out there who scam homeowners out of their hard-earned money.
At the same time, there are also homeowners who scam contractors because they do not pay their bills, which in many cases leaves roofing business owners in precarious positions.
To help contractors have a better chance of recuperating money lost to homeowners who don’t pay their bills, Doug Smith founded The Credit App.
The Credit App has since teamed up with Equifax to offer contractors the chance to file a report that, once verified, will dramatically affect a homeowner’s credit score.
Smith devised this service because as the former owner of a roofing company, he knew how frustrating it was when a homeowner didn’t pay an invoice for work that had been completed.
By starting The Credit App, Smith is now giving contractors the ability to ensure that some recourse has been taken the next time a homeowner refuses to pay a bill.
The best part about all this is that according to Smith, resolving disputes with homeowners through The Credit App is seamless due to their efficient technology systems that have been implemented.
Says Smith of the steps involved in the resolution process:
“After you file a report on thecreditapp.org, you have to upload a signed contract. You have to provide evidence that the debt is real. Obviously, you could counterfeit one if you wanted to, but that doesn’t really happen.”
“After we receive it, the debtor receives an automated text message, email, and letter stating what’s going on and that your roofing company is reporting them for a claim that they didn’t pay. Then they have two weeks to dispute the claim before we put it on their credit report.”
As far as documentation is concerned, Smith says it is most practical to upload contracts, but that The Credit App also will process material and labor orders, as well as final invoices.
“We are pretty loose with what you upload because it’s always going to go to the debtor and then the debtor is going to be calling and emailing us if it is not owed,”
he says.
While it may seem that Smith has designed a system intended to only benefit contractors, in reality, it is also very easy for homeowners to remedy any false reports that a contractor may submit.
Smith says that once a homeowner uploads a bank statement, voided check, job site photos, or a letter declaring the debt paid, then they are removed from The Credit App system and their credit score will not be affected.
Right now, after a year in business, The Credit App has functioned in the way it was intended to, with contractors raving about the value the system provides.
Currently, Smith says The Credit App is processing twenty to thirty reports per day, and since it only costs $40 to file and process a debt, Smith says he anticipates the company to grow as contractors become more aware of the value his company offers.
What’s more, the $40 price covers debts of any amount.
“Equifax currently has a $200 minimum, but the amount doesn’t matter,”
Smith explains.
“It could be $20,000 or $500, but it all costs $40.”
In spite of their rising popularity, The Credit App still has skeptics, many of whom do not fully understand the services that the company provides to contractors.
“A lot of people think that we are a debt collector, so they pay the $40 and then they email us a month later saying they haven’t been paid yet. The $40 doesn’t include legal representation or me going over to someone’s house and breaking their kneecaps,”
Smith notes.
“Our service is designed to be a tool that contractors can have in their toolbelt.”
This is important because Smith says that he cannot make any guarantees that homeowners will settle their debt once their credit score has been tagged. In the instances where homeowners still don’t pay, Smith reminds contractors that they can still file a lien or take homeowners to small claims court.
But perhaps the best part of The Credit App is that once a contractor files a report, rarely do homeowners dispute it, which suggests that homeowners often understand why their credit score has dramatically decreased.
“It’s really not as many as you would think,”
Smith says in regard to the number of homeowners who contact Smith’s office claiming there has been a mistake.
“Maybe 5-8% of homeowners are disputing the claims.”
“Sometimes when homeowners get our letters in the mail they think it’s a scam, but when it hits their credit report they email in really fast to try to find a resolution.”
Smith adds that when a homeowner sees a drop in their credit score, they will also be able to tell why their score is lower; and as previously mentioned, if a homeowner wants to see their score return to normal, they simply will have to settle the debt outlined in the report.
“There’s nothing for the homeowner to be confused about and all payments go directly to the contractor, and then they can either email us or go to our website and upload proof of payment. Then we can make the change on the homeowner’s credit report,”
explains Smith.
Right now, there are 250 contractors who are using The Credit App.
It doesn’t matter if you are an electrician, plumber, or the owner of a nail salon. If you have debts that you would like to hopefully see settled in the future, then The Credit App can help in making that possible.
Visit their website today to learn more information!
