man repairing credit

Different Ways To Spot Credit Repair Scams

Is your credit card debt in one chaotic mess? You’ll want to fix it quickly and with little effort. However being desperate for the solution can easily leave you susceptible to the, now all too common, credit repair scams. To make sure you aren’t be taken advantage of, follow these signs and be wary. Being asked to build a different credit identity. lf your credit repair organization tells you to make up a credit identity, this should be a huge red warning sign.

What you should NOT Do..

Do not agree to their request as it is an act of fraud, which can then be reported to the Federal Trade Commission. These type of scams typically involves you switching your Social Security Number to an Employer Identification Number. While this may temporarily “fix” your debt, it now presents a new problem, namely it being illegal. Also if the company request you to pay before they do the service, watch out As the Federal Law states that credit repair companies and organizations can’t demand money before doing the work.

Are there hefty upfront fee’s?

avoid creid repair scamsAnother big warning sign, is if the company charges you without the option to cancel out within three business days. As mention above it is illegal to charge fees before the service is rendered if you are a credit repair company. Also having a choice to cancel out within three business days is required by law. This is so because you shouldn’t be locked in a contract without a choice to withdraw. Tells You It Can Remove Any Negative Information.

Information can only be removed if it is incorrect. If the information is negative, but is still accurate then the information cannot be removed. If any of the credit repair companies tells you that they can remove unwanted information, stay away as they are not being truthful or are breaking the law. If you have been scammed don’t let the credit repair organizations get away. You can take action by reporting the organization to your state attorney general.

How to avoid credit repair scams from

You can also send a complaint to the Federal Trade Commission and the Better Business Bureau. Also remember that a credit repair company cannot do anything to improve your credit that you yourself can’t do. So next time before you ask for help from the credit repair companies, do some research first with the BBB, FTC and your state attorney general to see if there are any existing complaints about the organizations.