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Credit Repair Scams

 

How to Indentify Credit Repair Scams

 

 

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. Everyday, companies target people who have poor credit histories with promises to clean up their credit reports so they can get a car loan, a home mortgage, insurance, or even a job – after paying a fee for the service. They make claims such as :

 

“Credit problems? No problem!”

 

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

 

“We can erase your bad credit — 100% guaranteed.”

 

“Create a new credit identity — legally.”

 

The truth is that no one can remove accurate negative information from your credit report. It's illegal.

 

The Federal Trade Commission (FTC) says do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately (dispute credit-report errors) , but it takes time, a conscious effort, and sticking to a personal debt repayment plan. If you need help then choose companies touting credit help carefully. If you get an offer to repair or fix your credit, try to do diligence abe be careful in determing if the offer is legit? Here are some signs that should set off alarms in your head – and make you put the offer in the trash:

 

The company wants you to pay for credit repair services before they provide any services.

Fact: Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the credit repair services they promised.

The company doesn’t tell you your rights and what you can do for yourself for free.

Fact: The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. This investigation doesn’t cost any money.

 

The company recommends that you don’t contact any of the three major national consumer reporting companies (Equifax, Experian, and TransUnion) directly.

Fact: Under the Fair Credit Reporting Act (FCRA), the consumer reporting company and the information provider (the person, company, or organization that provides information about you to the consumer reporting company) must correct inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider in writing.

The company tells you they can get rid of most or all the negative credit information in your credit report, even if the information is accurate and current.

Fact: Any credit repair company that claims to be able to legally remove accurate and timely information from your credit report is lying. There’s no easy fix for bad credit. Improving your credit takes time and a conscious effort to pay your debts.

The company suggests that you apply for an Employer Identification Number to use instead of your Social Security number so you can invent a “new” credit identity – and then, a new credit report.

Fact: If you follow illegal advice like this, you may find yourself in hot water. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, or to get an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

 

A poor credit history and credit habits are just like water leaking into a house. If you let it go on, your problems gets more and more difficult and expensive to fix. The good thing however is that just like any other problem in life, credit problems and poor credit history is nothing that can not be fixed. There’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan. .