Credit Repair Fraud and Schemes To Watch For!
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Doing what you can to get yourself out of credit debt is an excellent idea, but with so many companies to choose from and identity theft so rampant, how can you know if the credit repair company you’re choosing is not fraudulent? Today, many companies offer credit repair counseling, however, it’s important to watch out for credit card repair schemes.
Red Flags Regarding Credit Repair Fraud
What exactly is credit repair fraud and how can you tell if a company is not on the up and up? Credit repair fraud is something that occurs when a company offers a person with bad credit, the chance to clean up the credit report for a fee. Often they will charge for the service, but when it comes right down to it, they do nothing to help and usually disappear before you can blink an eye. Other times they make promises that are not possible, such as telling you they can remove bankruptcies, judgments, and liens as well as bad loans from your credit forever. None of this is true. One of the ways you can tell if a credit repair company is authentic is by paying careful attention to some of the things they promise. If they tell you they can remove accurate or negative information from your credit report, they’re not telling the truth. No one can legally remove accurate and timely information from a credit report. Only incorrect information or items left after a seven or ten year reporting date can be changed on your credit report.
Can Your Credit Be Cleaned Up?
There are definitely things to be cautious about when choosing a credit repair company that promises to clean up your credit. Based on information from the BBB, there are some things to watch out for when considering a credit repair company. If a credit repair company does not tell you your legal rights and what you can do about cleaning up your credit legally, without charging you, they’re not a safe credit repair company. If they recommend that you not contact a credit bureau directly, do not use their services. If they want you to pay for their services before they do anything, steer clear of the company. Other warning signs are if the credit repair company encourages you to take some form of action that seems illegal. Some fraudulent credit card schemes might tell you to create a new credit identity by obtaining a federal employer ID number instead of using a social security number. This type of false advice can lead to you committing fraud.
Questionable Credit Repair Companies
When giving thought to a credit repair company, it’s best to steer clear of the types of companies who state that they can guarantee to remove unsecured debt, ask for and require substantial monthly fees, tell you to stop making payments to your creditors or ask you to pay them directly. The Fair Debt Collection Practices Act (FDPCA) prohibits debt collectors from engaging in unfair or deceptive practices when collecting debts so if you run into trouble, remember the law is on your side. If you have a complaint about a credit repair company, you can contact the Better Business Bureau in your state, the Attorney General’s office or the Federal Trade Commission.
About the Credit Counselors at Straight Credit Counseling
We at Straight Credit Counseling do everything we can to help individuals and families get back on track and totally out of debt. Credit Counseling services offered by Straight Credit Counseling helps individuals repay their debts by using careful budgeting and management of money strategies. A qualified counselor offers advice on how to manage outstanding debt as well as answering various credit questions. If you are ready to improve your credit, the team at Straight Credit Counseling is available to conduct a no obligation consultation. To arrange for a session by phone, please feel free to e-mail us at info@StraightCreditCounseling.com. Contact us today and rest in the knowledge that your credit report will soon be one that you’re proud to present.