How You Can Recognize a Credit Repair Scam
You’ve most likely seen the ads in your daily paper, on cable TV, and on the world wide web. You can hear them singing on the radio. You find their ads stuffed into your mail box, and maybe you have enjoyed cold calls while eating dinner, offering you credit repair wonders. They tend to make these or similar claims:
“Credit problems? Not a problem!”
“We can delete all your bankruptcies, liens, judgments and repossessions from your credit file for ever!”
We can erase bad credit, fast, legal and all guaranteed.
Create a completely new credit identity – legally.
It is not too good to believe these claims: they are very often signs of a scam. Some professionals even state they have never seen a legitimate credit repair company trying to make those claims. The fact is there is often not a quick fix for credit and creditworthiness. You can actually improve your credit report legitimately, but it takes some time, a conscious effort, and also sticking to a personal debt repayment plan.
Here are some hints that should trigger red flags as they show a Credit Repair Scam
All the time, companies target uninformed consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies cant deliver an improved credit report for you using the tactics they promote. No one can legally remove accurate, but negative information from your credit report. So after you hand them over thousands of dollars in fees, you are often left with the same credit report and someone else has your money.
If you analyze a credit repair offer, here is how to tell if the organization or firm behind it is criminal:
The service firm does not notify you of your rights and does not recommend that you do certain actions yourself to save money.
The company insists that you refrain from getting into communication with any of the three major national credit reporting companies directly yourself.
The firm suggests that you try to invent a new or false credit identity – and then get a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number.
The organization wants you to pay for credit repair services before they provide you any services. Under what is called the the Credit Repair Organizations Act, companies that are offering to repair credit, cannot require you to hand over the money, until they have completely delivered the services they have advertised.
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