Credit Repair Scams - learn what to look for, so you don't get taken !
Given the current economic climate, thousands of people everyday are looking for credit repair solutions. Unfortunately, there a many companies out there that claim to "help you repair your credit", that are nothing more than charlatans and rip-off artists. Don't be fooled by these so-called credit experts. Their practices are unscrupulous and often times illegal leaving you worse off than you were and left to face the brunt of legal fines & penalties, as well as the possibility of jail time.
Here is a list of the top credit repair scams and practices. If the company you're dealing with advertises, makes claim to, or talks about these type of actions...
DO NOT give them your personal infomation and certainly don't give them your money.
Credit Scam #1: Accurate negative items can be removed from your credit profile. SCAM
- No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods (View Fair Credit Reporting Act).
According to Eileen Harrington, Deputy Director of the FTC’s Bureau of Consumer Protection, “Credit repair schemes are a big problem for consumers. Credit repair promoters generally charge hundreds of dollars, but don’t deliver on their claims. The fact is, they can’t. No one can legally remove accurate and timely information from your credit report.”
Reporting accurate information as inaccurate information on your credit report is FRAUD and punishable by fines and/or jail time.
Credit Scam #2: We guarantee that the information will be removed within 30 days.SCAM
- The truth is, federal law gives the credit card companies a thirty day window to open an investigation regarding your dispute. They are not required to act on any disputed item prior to the completion of the thirty day investigation window and depending upon their findings, the disputed item may or may not be removed.
Credit repair is a process, not an overnight quick fix. You didn't go from good to bad credit overnight or even in 30 days. So, be wary of companies offering immediate results. Your credit repair can take anywhere from 30 days to several months depending upon the number items you're dealing with and the informatrion you have or do not have to support your case.
Credit Scam #3: You can get a new social security number and create a new credit profile.SCAM
-
You can not create a second credit file by getting a new social security number. Fraudulent companies sometimes offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called “file segregation,” is illegal, and it doesn’t work.
Credit Scam #4: The company doesn’t tell you your rights and what you can do for yourself.SCAM
-
Most people just assume that the business they decide to work with is going to be forthright with them about their credit repair. Unfortunately many find out too late about their credit repair rights and that it would've been far less expensive to do the credit repair themselves.
One of the first things any legitimate credit repair company should do, is tell you that you can repair your own credit if you are willing to take the time to go through the process. To learn more about your rights regarding credit repair, credit reporting and credit billing practices visit the Credit Resource Library.
Credit Scam #5: The credit repair company refuses to tell "HOW" they are going to repair your credit.SCAM
-
The "how" and "process" of credit repair simply involves writing letters to the major credit bureaus, indicating the disputed item(s) and providing the correct supporting documentation for your dispute. THAT'S IT !!
There are no mysterious legal techniques. The credit repair companies and attorneys do not spend endless man hours reviewing your credit information and strategizing about what to do with your particular case. It's the same process for everyone. The letters get written and sent; items are either removed from your credit report or a reason is given why it was not removed; and a follow up letter with additional information is sometimes required.
To learn more about using CreditSource123's credit repair system to facilitate your credit repair visit
Repairing Your Own Credit with CreditSource123
If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost. To find the nearest CCCS office, call toll-free, 800-388-2227, or go to www.nfcc.org.
VIEW ALL CREDIT RESOURCE LIBRARY DOCUMENTS
