Watch Out For Credit Repair Scams
You've heard all the advertisements on the radio, seen the ads in the newspaper, on TV, and perhaps even received the fliers. One credit repair service or another is always promising impossible things. 'We can erase your bad credit, 100% guaranteed!' 'We can remove bankruptcies, liens and bad loans from your credit forever!'
Unfortunately for consumers, any companies making these claims are out to take your money, because these claims are not only illegal, they're pretty much impossible. In fact, attorneys at the nation's consumer protection agency have never seen a legitimate credit repair company make these promises. The only true way to credit repair is with time, effort, and the repayment of debts.
These scam companies are targeting consumers with poor credit histories every day. They promise easy credit repair so consumers can buy that new car or house or get that loan they so desperately need. The truth is, these companies can't deliver what they promise because what they promise is illegal! You can only resolve your credit issues - you can't actually get accurate negative information removed from your credit report.
Yet everyday hundreds of people across the nation fall for these offers. It's not surprising, considering these too good to be too credit repair offers can sound pretty legitimate. The federal government has released several tips on how to recognize fraud companies.
One big sign of a scam from a credit repair company is all about the cash. If they ask you to pay up front, before any services are rendered, be careful. Under the Credit Repair Organizations Act, these companies cannot require you to pay until the services they promised are completed.
If any credit repair service doesn't give you information of your rights and what you can do yourself for free, that should throw up a red flag in your mind. Especially if they go so far as to recommend that you do not contact the three major credit reporting companies directly. Any company that wants to help repair your credit legally will inform you of your rights as well as tactics you can handle yourself to help with credit repair.
Finally, anytime a company promises to remove all negative information from your report, watch out. By law, you can't remove or dispute accurate information on your credit history. Another tactic some scam companies use is the creation of a second (and fraudulent) credit identity. All in all, credit repair should not involve any kind of fake claims at all.
The biggest downfall of using a bogus credit repair company is the legal trouble you may suffer. It is a federal crime to lie on a credit card or loan application and to misrepresent your social security number, among other things. If you're trying to repair your credit, your best course of action is to hook up with a legitimate company and allow them to help you come up with a legal credit repair plan. - 16931
Unfortunately for consumers, any companies making these claims are out to take your money, because these claims are not only illegal, they're pretty much impossible. In fact, attorneys at the nation's consumer protection agency have never seen a legitimate credit repair company make these promises. The only true way to credit repair is with time, effort, and the repayment of debts.
These scam companies are targeting consumers with poor credit histories every day. They promise easy credit repair so consumers can buy that new car or house or get that loan they so desperately need. The truth is, these companies can't deliver what they promise because what they promise is illegal! You can only resolve your credit issues - you can't actually get accurate negative information removed from your credit report.
Yet everyday hundreds of people across the nation fall for these offers. It's not surprising, considering these too good to be too credit repair offers can sound pretty legitimate. The federal government has released several tips on how to recognize fraud companies.
One big sign of a scam from a credit repair company is all about the cash. If they ask you to pay up front, before any services are rendered, be careful. Under the Credit Repair Organizations Act, these companies cannot require you to pay until the services they promised are completed.
If any credit repair service doesn't give you information of your rights and what you can do yourself for free, that should throw up a red flag in your mind. Especially if they go so far as to recommend that you do not contact the three major credit reporting companies directly. Any company that wants to help repair your credit legally will inform you of your rights as well as tactics you can handle yourself to help with credit repair.
Finally, anytime a company promises to remove all negative information from your report, watch out. By law, you can't remove or dispute accurate information on your credit history. Another tactic some scam companies use is the creation of a second (and fraudulent) credit identity. All in all, credit repair should not involve any kind of fake claims at all.
The biggest downfall of using a bogus credit repair company is the legal trouble you may suffer. It is a federal crime to lie on a credit card or loan application and to misrepresent your social security number, among other things. If you're trying to repair your credit, your best course of action is to hook up with a legitimate company and allow them to help you come up with a legal credit repair plan. - 16931
About the Author:
The author, Tawana Rashing, is a credit repair specialist for a major company dedicated to educating consumers on their rights. Her specialties are counseling consumers and creating informative articles for online distribution. In her spare time the writer gardens and leads her local girl scout troupe.
posted by Edgar at
02:03
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