Know About Credit Report Repair Scams |
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You must stay away from fake credit report
repair companies. There are far too many people in this world who are more than ready to "help" you repair whatever is not working properly, including
your credit report. However, it is necessary to apply the sieve and discard the fake companies that may be trying to dupe you, thus, placing you at
a big risk. No doubt, there are many good companies also, but it is necessary to identify them. To protect consumers from such fake companies that promise to clean up your credit report and help you to obtain credit, the Credit Repair Organizations Act was enacted. It has been successful to a significant extent but beyond its scope there are people who publish books, pamphlets, and videos offering instructions on how to repair a bad credit rating and get new credit. As can be expected, some of these are legitimate, others are slightly flawed and there are a whole lot of publications that encourage outright fraud. Whatever may be your field, it would be best for you to fully realize the implications of acting per the suggestions in these publications so that you do not overstep the legal limits. Why is it necessary to know about credit report repair scams? Basically, a credit report repair scam is the work of con artists who take advantage of gullible ignorant customers and sell them advice that is unethical and sometimes illegal. On the other hand, even creditors, lawyers, and agencies should be aware of what this type of scam is all about. If a lawyer who is representing a merchant, a collection agency or a consumer regarding credit, does not know how the credit reporting system works, he is definitely resorting to malpractice. Normally, the lawyers are supposed to educate the ordinary masses that seek the help of credit report repair organizations because they are ignorant of the procedures. If the lawyers guide them properly, they won't fall into the trap of the perpetrators of the scams. However, if a consumer falls prey to such advice, lawyers can sue under the Credit Repair Organizations Act and recover fees plus punitive damages--assuming, of course, that the culprit can be located. The creditors' lawyers can easily increase their recovery if they become conversant with the modus operandi of the fake companies that perpetrate such credit report repair scams. Being aware of the tactics of these companies can enable these lawyers to investigate thoroughly by asking pertinent questions such as: whether you've used aliases or different Social Security or other identification numbers; whether you've acquired a new Social Security number, claiming that you have been a stalking victim in an effort to convince the Social Security Administration that you need a different number; whether you've applied for and used an Employer Identification Number (EIN) as a substitute for a Social Security number; whether you've created a new credit file with the new numbers or moving, whether you've been repeatedly disputing your credit report and thereby got the disputed negative remarks removed temporarily and whether you've used secured bank loans to establish credit. The FTC and the National Association of Attorneys General announced last month enforcement actions against 43 credit report repair companies, 14 of them doing business on the Internet. The type of internet credit report repair scam that they normally were doing was that for a large fees, they would give instructions to consumers to secure a federal ID number (which is usually used by businesses) and use that in place of a Social Security number to apply for credit. Credit bureaus normally rely on a Social Security number to match an application with a record in their databases and as such there is presumably no match between the person applying for credit and the consumer with the existing negative credit record. Knowledge is power and so to escape these scams, try to know more about them. b |
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