Bad Credit Repair: The So Called Secrets Are Not Exactly Secret |
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A cursory glance may suggest
bad credit repair scams essentially deal with consumers. The typical scenario involves con artists taking desperate people for a ride with unethical and illegal intentions. The Information Age has increasingly enhanced the importance of sorting out the relevant from the junk. When the information is not valid, it puts the consumer at risk. The purpose of the Credit Repair Organizations Act was to ward off scamsters claiming bad credit repair for quick means of credit. But beyond the reach of the Act are publishers of books and pamphlets and video makers offering advice on new credit with bad credit repair. While some are genuine, some are partially relevant and many are con jobs. If you are a lawyer or agency that represents debtors or creditors, more results mean increased awareness. Credit Secrets the Credit Bureaus Don't Want You to Know!!! The booklet was the subject of unsolicited bulk e-mail from a California-based bad credit repair company. At a cost of $25, there are 54 pages of shoddy reproductions and no author credit. The booklet starts off by proclaiming that the only option to break free from bad credit is a new credit file within the credit bureau's computer system. It elaborates further in identifying 3 methods. In the first, the same name is used but personal information differs. The second uses the same personal information with only the first or last name changed. The third involves an alias with the same or different personal information. It talks about the ease with which a drivers license or state ID card can be made to match the name and personal information used for fast bad credit repair. Your social security number is the main aspect that needs to be altered. Simply substitute the first 3 numbers, or state code, with those of another state. In dealing with employment references for bad credit repair, the nameless author urges the unemployed to use a company as an employment reference or any owner of a business. He suggests paying money as incentive. One can also give the impression of being employed when not, just with a business phone line placed in a house with an answering machine attached. It can then be listed in the phone book, as creditors check for listing of businesses at times. Creditors may even ask for a job pay stub, which is rather easy. Simply open a business account and order the checks with the most professional looking check stubs. The publication conveniently fails to mention the costs involved in installing a business telephone line or the documentation required by banks for opening a business account. The booklet also contains information on how bank loans can be secured with savings accounts, acquiring secured credit cards, tips on getting friends to add you to their accounts to ensure positive reports on the new credit file, a mind-boggling confusion of foundations with abrupt tips on applying for grants, guidance on setting up your own corporation, investing in real estate particularly with seller financing, starting your own credit union, countries without extradition treaties with the US and a lot of extra but mostly absurd information. A cursory glance may suggest bad credit repair scams essentially deal with consumers. The typical scenario involves con artists taking desperate people for a ride with unethical and illegal intentions. Creditors, lawyers and agencies are not likely to take interest in this particular branch of consumer fraud. For a lawyer dealing in credit, it is nothing less than malpractice to lack knowledge of the credit reporting system. The main reason for people resorting to bad credit repair organizations is their lack of options. They want a solution that they don't know how to get. If the lawyers were to work diligently, such methods would not be necessary. Lawyers should let their clients know the futility of these measures for bad credit repair. When a client falls victim to these scams, lawyers have the right to sue under the Credit Repair Organizations Act to recover fees and punitive damages, but only in the event that the culprit is found. |
