Home > Credit Repair > Are All Companies in the Credit Repair Service Industry Just Scams?
Are All Companies in the Credit Repair Service Industry Just Scams? |
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The credit repair service industry: some
important aspects There are a whole lot of credit repair services companies that dupe gullible customers, bringing a bad name to this industry, although there are a few reliable and reputable Credit Repair Services companies also. These unscrupulous companies publish ads promising the impossible task of erasing your bad credit history, creating a new credit identity and removing bankruptcies, judgments, and liens from your records even if they're accurate, timely and legitimate. They prey on honest people who are in a financial mess and are, naturally, looking for a way out for credit repair services. Be aware that no one, not even so-called credit repair services companies, can help you remove or re-rate items in your credit files if they're accurate, within the statute of limitations, and legitimately yours. Do not waste your hard-earned money on such companies, regardless of the claims they make in ads. Your only hope of repairing your bad credit is to repay your debts, let the appropriate time pass, and learn to monitor and control your spending habits. How to find a legitimate credit repair services Before using a credit repair services, there are several criteria to follow to ensure that the company you will deal with is legitimate. If so, it is obligated to provide a copy of Consumer Credit File Rights Under State and Federal Law, according to the Credit Repair Organizations Act. Credit repair services companies are obligated to provide a written contract, clearly enumerating your rights and obligations, before you sign it. This will enable you to go through it thoroughly and seek legal advice, if need be. Legitimate companies do not make tall claims or give guarantees on credit repair services. They do not make promises that they won't be able to keep. The y cannot charge you for any credit repair services until they complete all the services that they had promised. Moreover, they cannot start any credit repair services until you've signed the written contract and even after you sign the contract, they have to wait for three days to give you time to reconsider your decision and cancel the contract without incurring any form of cancellation charges. What are the warning signals to be careful of a particular credit repair services company? There are several warning signals that can alert you about a credit repair services company's dubious activities. 1) According to the Credit Repair Organizations Act; credit repair services companies cannot ask you for any payment until they complete all their promised services. If any company asks you for payment before the completion of its task, you should be on your toes! 2) If, during the preliminary discussions, they do not give you important information regarding what you can do yourself for free or what other options are available for you, you should not deal with such a company. 3) Do not deal with a company that tells you not to contact the credit reporting agencies as they will deal directly with them. Remember that you have the right and you should contact this agency. 4) Avoid a company that suggests anything dubious or fishy, like creating a new credit identity by applying for and using an Employer Identification Number. Remember that if you do anything illegal, you can be charged with fraud. Never make any false statements. How to report a credit repair services company, if you feel cheated? If you think that the credit repair services company has cheated you, contact your local city or county consumer affairs office or your state's attorney general. Many of the attorney generals have installed toll-free hotlines specifically for this purpose and for your convenience. If the credit repair services company has cheated you and deprived you of your hard-earned money, the attorney general would definitely want to know about it. |
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