You see the ads in newspapers, on TV, and on the Internet. You pay attention them on the radio. You may even get calls from telemarketers in the market credit repair services. You get fliers in the mail. Don’t take on trust these statements. They all make the same claims:
‘Credit problems? No problem!’
‘We can erase your bad credit-100% guaranteed.’
‘Create a new credit identity-legally.’
‘We can remove bankruptcies, judgments, liens, and bad loans from your credit pulverize and subtraction forever!’
Do yourself a and save some money, too. Only time, a conscientious effort, and a project for repaying your arrears will improve your credit report.
The Warning Signs
If you should decide to respond to an proposal to repair your credit, ponder twice. They’re just not true. If you follow after prohibited warning and commit fraud, you may be material to prosecution.
You could be charged and prosecuted for or wire fraud if you use the or telephone to apply for credit and furnish false information. Don’t do business with any company that:
* wants you to pay for credit repair services before any services are provided
* does not tell you your legal rights and what you can do yourself — for free
* recommends that you not contact a consumer reporting company directly
* suggests that you try to back form a ‘new’ credit report by applying for an Employer Identification Number to use instead of your Social Security number
* advises you to dispute all notice in your credit report or take any action that seems illegal, such as creating a new credit identity. They also must give you a scribbled compromise that spells out your rights and obligations. It’s a federal crime to make false statements on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
The Credit Repair Organizations Act
By law, credit repair organizations must give you a copy of the ‘Consumer Credit File Rights Under State and Federal Law’ before you sign a contract. The law contains specific consumer protections. Read these documents before signing the contract. During this time, you can cancel the bargain without paying any fees.
Your negotiate must specify:
* the total cost of the services
* a detailed recital of the services to be performed
* how plurality it will take to achieve the results
* any ‘guarantees’ they offer
* the company‘s name and business address.
Where to Complain
If you’ve had a problem with any of the scams described here, contact your local consumer protection agency, temper Attorney General (AG), or Better Business Bureau. For example, a credit repair company cannot:
* make false claims about their services
* charge you until they have completed the promised services
* perform any services until they have your signature on a inscribed barter and have completed a three-day waiting period. Check with your local directory assistance. Many AG’s have toll-free consumer hot-lines. Many AG’s have toll-free consumer hot-lines.