Lookout For Legitimate Credit Repair Services |
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Even though there are many reputable credit repair companies out there, the disreputable ones have destroyed the industry. Many people have been cheated by their illegal and fraudulent ways of functioning. As a result, the industry has fallen to disrepute due to a whole host of credit repair services companies that make blatantly false claims and either fail to deliver on their promises, or simply disappear with the consumer's money.
They lure gullible consumers with their flashy advertisements promising impossible things. They prey on basically honest folks, who've run into financial difficulty and are looking for some help to get out of a sticky situation. Regardless of what the ads proclaim, nobody, including so-called credit repair services companies, can force credit reporting agencies to remove or re-rate accurate items in your credit files. The only real way to repair your credit is to repay debts and wait for the appropriate time limitations to pass. Also learn to monitor and control spending habits. However, not all credit repair services are out to cheat you of your money. If you think that using a credit repair service would be beneficial in your situation, there are several things you can do to ensure that the company you choose is legitimate. According to the Credit Repair Organizations Act, it's mandatory that the credit repair services give you a copy of the Consumer Credit File Rights under State and Federal Law. They need to give you a copy of this document before you sign any contract. This is to ensure that you take a well informed decision. Credit repair services companies must also provide you with a written contract that clearly identifies your rights and contractual obligations. This must be given to you before you sign the contract, giving you the opportunity to review it and seek legal counsel and advice, if you so desire. Another feature of legitimate companies is that they won't make outrageous claims, or give you any guarantees on credit repair services. They will also not make any promises that they might not be able to fulfill, especially since there are no guarantees in this business. This is just one of the warning signs whether a company is legitimate. There actually are several key warning signs if the credit repair services company, you're considering using, is not legitimate. If the credit repair services company tells you that you'll have to pay, before they actually provide you with any services, it's almost a sure chance that the company is not reputable or reliable. This is because, according to the Credit Repair Organizations Act, credit repair services companies cannot make you pay, until they've actually completed the promised services. If a credit repair services company fails to inform you of your options, it's probably not one you"d want to deal with. For example, if they don't inform you that you can directly deal with the credit reporting agencies and that there is no need to go through the credit repair services company. No legitimate company would tell you not to do something that you have very right to do, and should do in any case. So, how can you trust them if they omit important information during your preliminary discussion? Another sure sign of a untrustworthy company is any suggests to try anything, that sounds fishy or illegal, like creating a new credit identity by applying for and using an Employer Identification Number. The fact is that if you do anything illegal, and thus knowingly or unknowingly commit some act of fraud, you can be charged with mail or wire fraud. But if you've already entered into a contract with credit repair services, only to discover that they have conned you out of your money, you need to report the company to the authorities. The best place to start is with your local city or county consumer affairs office, or with your state's attorney general. Many state attorney generals have implemented toll-free hotlines specifically for this purpose. And don't be shy about using it. |
