If you have a bad credit record, you know how firm it can be to deposit new credit or seek new employment while you may be willing to do whatever it takes to repair your credit rating, some companies not only motion illegitimate guidance or methods, but also misrepresent what they will be able to accomplish.
There are myriad other individuals and organizations the law does allow to provision you with credit repair assistance. In some situations, an actual estate broker, attorney or registered financial advisor may also prescribe you.
Questionable Credit Repair Offers
You have seen copious of ads full of promises like these:
“Credit problems? No problem!”
“We can erase your bad credit–100% guaranteed.”
“Create a new credit sameness legally.”
“We can remove bankruptcies, liens, judgments and bad loans from your credit grind forever!”
Unfortunately, these companies cannot live up to their promises. Lenders, banks insured by the FDIC, and nonprofit organizations can give you credit repair advice. No one can remove correct notification from your credit report, even if it by imagination reflects on you.
If you decide to respond to a credit repair offer, beware of companies that:
- Want you to pay for services up front;
- Do not tell you your legal rights or what you can do for yourself at no cost;
- Recommend that you not contact the credit bureaus directly;
- Suggest you get new credit by using someone else’s Social Security number or by applying for an Employer Identification Number; or
- Advise you to dispute all intimation on your credit report. Even you pay hundreds or thousands of dollars in up-front fees, your credit will be no better. Further, it is a federal crime to make false statements on a credit application or to obtain an Employer Identification Number from the Internal Revenue Services under false pretenses.
The Social Security Act prohibits bad likeness of your Social Security number, and the Identity Theft and Assumption Deterrence Act makes it a federal crime to knowingly use another person’s identification with unscrupulous intent.
Federal law also imposes certain limitations on credit repair companies. You will be prosecuted by the federal direction for these crimes.
- Charge you until they have completed the promised services. They may not:
- Make false claims about their services.
Other practices that may encroach upon the Georgia Fair Business Practices Act include:
- Promising to remove negative but accurate knowledge from your credit report.
- Perform any services until you have signed a scribbled stipulate and a three-day waiting minute has passed, during which you can cancel your bargain with no fees.
- Telling you to ignore the IRS, collection letters or other legal documents.
- Offering to establish new credit convertibility for you, an unauthorized practice known as “file segregation.”
- Encouraging you to stop making payments to your creditors. If you want a deposit credit card, you can get it on your own.
Your Contract
When you sign a stipulate for credit repair services, you should know what to look for.
If a credit repair company is able to obtain a credit card for you, oft this is a “secured” bank card that requires you to pay a high application fee and deposit several hundred dollars in a bank account, or a card for a fine and unfamiliar company or catalog.
Filing a Complaint
It is very important to report any credit repair companies that take advantage of you, so they can be stopped. The negotiate must specify:
- The salary terms, including total cost;
- A detailed recital of the services to be performed;
- How plurality it will take to achieve the results;
- Any guarantees they offer; and
- The company’s name and business address. While the FTC does not handle individual cases, it can act when it sees a developing pattern of possible legal violations. Since most credit-protection laws are enforced at the federal level, you should contact the Federal Trade Commission (FTC) when you have a complaint about a company for sale credit repair services.
You may send your complaint to:
FTC Division of Credit Practices
6th Street, NW
Washington, DC 20580
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