Home Credit Repair Credit Repair Scams

Credit Repair Scams

721
0
SHARE

It is important to have a good credit score. That is why many people turn to a credit repair company. However, the company that you choose may be a scammer.

These credit repair companies charge you a small fee. They may also make a lot of outlandish promises. However, these companies often do nothing more than just take your money. They may also encourage you to commit fraud by lying on an application.

In order for you to avoid being a victim of a scam, you will need to recognize the signs of a fake credit report company. You will also need to be aware of the rights that you have as a consumer. There are laws that have been put in place to protect people from unscrupulous business practices.

The Credit Repair Organization Act prevents credit repair companies from engaging in dishonest business practices. Credit repair companies are not allowed to collect any money from you until they perform their services. They also have to explain all of the terms before they collect any fees. Furthermore, they are required to do all of the following things.

  • Provide a written contract detailing all of the services
  • Inform you that you can cancel within a certain period of time without being charged any fees
  • Explain how long it will take for your credit score to change.
  • Explain all of the guarantees in detail

How to Tell a Company is a Scammer

  • They will collect fees before working with you.
  • They will tell you not to check your own credit.
  • They tell you to file a dispute on information that is accurate.
  • They tell you to put false information on credit card or loan applications.
  • They tell you to create a new credit identity. For example, they may tell you to use your employee identification number instead of Social Security number.

LEAVE A REPLY