Beware Consumer Credit Repair Services
A Credit Article Contributed by Brandie King
Beware Consumer Credit Repair Services
There are a lot of companies out there that offer consumer credit repair services, but there are a very few of them that aren't just out for your money or that aren't just trying to scam you. You should always be extremely wary and careful if you are considering using one of the consumer credit repair services. This article will help you to learn what you should watch out for and what your rights are.
Consumer Credit Repair Services: What to Watch out For
Whether you are looking for, or are already using, this type of company there are things that you need to watch out for. These are signs that the company is not legitimate and may be trying to scam you.
- they seem to be going overboard with trying to get you to believe they are wonderful
- their explanations of your rights are skimpy and they don't tell you what you could do on your own free
- it is impossible to comprehend the contract you have with them
- they ask you to pay them before performing any services for you
Consumer Credit Repair Services: What Your Rights Are
The Federal Trade Commission has passed a law that covers what credit repair companies can and cannot do, as well as covering what your rights as a consumer are. The law is called the "Credit Repair Organizations Act" and you can read it in its entirety at http://www.ftc.gov/os/statutes/croa/croa.htm. Here is a summary of parts of this law.
- Credit repair companies have to provide you with a written contract, as well as a copy of that written contract (and anything else you are required to sign) after you sign it.
- Credit repair companies can't require you to pay before they do anything, can't lie about what they do or their services, and can't provide any services to you until after they have the written contract with your signature on it.
Consumer Credit Repair Services: Additional Tip
No matter what services this type of company is providing to you, you should still get all of your credit card statements in the mail every month. This provides you with the perfect opportunity to check up on the credit repair company to make sure they are doing what they say they are doing. If you actually read the credit card statements when you receive them, you should be able to see any payments you have sent the credit repair company show up on your statements.
If the payments you are making to them aren't showing up on your statements, or are showing up late, then you will know there is a problem. You will know that the company is scamming you in one or both of two ways. They are scamming you by either keeping your money and not sending it to your creditors or they are sending your payments to your creditors late. Either way they are not doing what they promised and therefore are violating the law.
