Learn about Credit Repair Scams and How to Detect Them
A Credit Article Contributed by Brandie King
Learn about Credit Repair Scams and How to Detect Them
There a lot of unscrupulous companies out there that try to fool consumers with offers to help, when in reality they are mostly credit repair scams.
Types of Credit Repair Scams
1. Guarantees of being able to remove negative information from your credit report, even when it's accurate negative information, is a guaranteed sign that you are dealing with a credit repair scam.
2. If the credit repair company says that they will repair your credit by helping you get a new credit file or by substituting a false Social Security Number, steer clear of them. There is no legal way to get a new credit file and using a false Social Security Number is against the law.
3. When companies require you to pay them before they will perform any services for you they are usually running a credit repair scam. Read the information under "Your Rights Under the Law" below. What usually happens in this type of credit repair scam is that they take your money before doing anything, then disappear without a trace, never to be seen or heard from again.
What to Watch for to Avoid Credit Repair Scams
Before signing up with any company you should contact your state Attorney General and Better Business Bureau to verify the company's reputation and to find out if they have had any complaints filed against them.
Keep a close eye on your credit card bills, which you should still receive each month, and make sure that the payments you are making are actually showing up.
Credit Repair Scams: Your Rights under the Law
According to the Credit Repair Organizations Act you can't be required to pay for services from credit repair companies until after they have completed any services they have promised you.
Credit repair companies are required to provide you with a written contract, which you should read before signing. They also have to provide you with a copy of the signed contract, and any other documents that you signed.
To read the full text version of the Credit Repair Organizations Act on the Federal Trade Commission (FTC) website just go here http://www.ftc.gov/os/statutes/croa/croa.htm.
