Credit Repair Scams

Look before you leap

We would like to acknowledge that there are many legitimate credit repair agencies that are truly vested in helping you to rebuild your credit.  However, as Debt Collection Attorney’s we seem to have occasion to run into more than a few people that have been blindsided or swindled by less than reputable Credit Repair Fraud scams.

The one sure and certain way to keep your credit good, is to be responsible with paying debts, and not overextending your credit.

If you fall behind, the one sure and certain way to minimize the negative impact on your credit is to work with your debt collection professional, and to make a diligent effort to resolve your past due balances.  EVERYTHING else, is an attempt to use the law to dodge your responsibilities.   If you are trying to use loopholes in the law to dodge legitimate responsibilities, you will be running the risk of credit repair fraud.

 

With that said, here are 4 of the major signals that you might be involved with a repair scam, as opposed to legitimate help in repairing your credit.

 

1.  Any Promise to remove negative information.

Negative information usually exists because there were negative credit events in your history.   If any of the negative remarks on your credit are not true, then you have the ability to directly petition the credit reporting agency, and your voice is at least as strong as a credit repair agencies.  No One can “promise” a positive result.  A promise to “attempt” to remove inaccurate data is an honest representation of the credit repair agencies ability.  A promise to remove negative information, should set off alarm bells.

 

2.  Instructions to build a new credit identity.

We have seen this, Don’t Do It, it is illegal.  You have one social security number, that social security number is tied to your credit.  When you start dealing with schemes to get additional social security numbers, for any reason, you are most likely running afoul of the law.   If you are looking for problems far greater than negative credit – congratulations, you have found them!

3.  Significant Upfront Fees and No Option to Cancel.

Can we say “warning warning”.   There are legitimate not for profit agencies that will attempt to work with you through the process of improving your credit.  When agencies start demanding large up front payments, and don’t offer you an exit strategy from their services, its time to take a long hard look at their service.   Isn’t it possible that paying your debt is less expensive than paying a scammer?  Those funds could well be better used elsewhere.

 

4.  No discussion about your legal rights.

You have the legal right to dispute anything on your credit report.  If the credit repair agency is telling you otherwise, or discouraging you from contacting a credit reporting bureau, then they are hiding from you the fact that you can do this on your own.   In fact, our experience is that credit reporting agencies have simople online forms that you can use to register a dispute.  If you are using a credit repair agency simply because their time is more affordable than yours, that is understandable, however, never forget that there is nothing that they can do for you that you cannot do for yourself.  If the credit repair agency is not informing you of what you are able to do on your own, then its time to put up the scam radar.