Credit Repair Fraud Information
A Credit Article Contributed by Brandie King
The following article contains information on credit repair fraud.
Credit Repair Fraud: Warning Signs
Here are some things to be on the look out for to help you avoid credit repair fraud if you are considering using a company to help you repair your credit.
- the company seems overly anxious or goes to great lengths to convince you they are great
- barely there explanations of your rights as a consumer
- before doing anything else the company launches into a discussion about their fees without answering any of your questions
- the company has a contract that is almost impossible to understand
- the company asks you for fees up front and refuses to do any work until those fees are paid
- the company asks you to put false information on loan and credit applications and/or they ask you to misrepresent your SS#
- the company promises you a new identity
- the company doesn't tell you what you can do for yourself free
- the company recommends that you shouldn't contact a credit bureau directly
- the company advises you to dispute information on your credit report that you know is true.
Credit Repair Fraud: Ways to Keep from Getting Scammed
Keep all of the following in mind to keep yourself from suffering from credit repair fraud.
- Contact your state Attorney General and Better Business Bureau, verify the company's reputation, and find out if they have had any complaints filed against them.
- Before signing up with a credit repair company call your creditors and verify that they will work with that company.
- Do not sign up with any companies who have called you over the phone or contacted you through SPAM. Talk to friends and family and do your own research to find a good company.
- Make sure that you understand all of the services that are offered.
- Find out exactly what fees you will be charged and for what, whether or not they are monthly or one-time fees, and whether or not you will still have to pay the fees if you cancel their services.
- Get any promises and guarantees that the company makes in writing and make sure you read the written agreement carefully.
- You should still receive credit card bills in the mail each month and those bills should show the payments you are making through the credit repair company. Keep a close eye on your credit card bills and make sure that the payments you are making are actually showing up.
Credit Repair Fraud: Alternatives to Using a Credit Repair Company
- Contact a Consumer Credit Counseling Service (CCCS) near you.
- Order your credit reports from the three major credit bureaus (Experian, Equifax, and Trans Union), request their policies and instructions on disputing errors and inaccuracies, and do it yourself.
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Credit Repair Fraud: Contact Information
- You can find your local CCCCS by calling 1-800-388-2227.
- Equifax, 1-800-685-1111, http://www.equifax.com
- Experian, 1-888-EXPERIAN (397-3742), http://www.experian.com
- Trans Union, 1-800-916-8800, http://www.transunion.com
