Credit Repair Scams: Tell-tale Signs to Avoid

The Federal Trade Commission (FTC) alerts consumers against trying to get credit repair service from illegal credit repair companies.

Yes, experiencing financial crisis can make any person prone to fraud and rip-offs. Knowing the signs of false credit repair agencies

may help you stay away from being a victim of credit repair scams. What are the indications of a fake credit help service?

Upfront payment. A legal credit repair or credit counselling agency will never ask for an advanced payment prior to providing service

since that is an infringement of the laws and regulations stipulated in the Credit Repair Organizations Act.

Advises you to lie or use false information. If your credit counselor recommends that you violate the law, then this is a sure sign

that you are dealing with a fake agency. For example, you may be advised to use a different Social Security Number or replace your SSN

with your EIN (Employer Identification Number) to switch your credit identity.
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Keep in mind that lying or using false information just to be free from your all your responsibilities will never solve the problem

instead, it will only worsen the situation you are in. In the long run, you will find yourself in an even deeper problem than you are

in at this time. Furthermore, you can be charged and prosecuted for the crime of fraud.

Promises to instantly fix your credit history. If the debts in your credit report are correct, it is impossible for you or any of the

three credit report agencies to remove those charges. In restoring your good credit history, paying your creditors is actually the

only solution.credit repair

You are not told about your rights. The first thing a genuine credit counselor will do is to present you your consumer rights that is

based on the Fair Credit Reporting Act (FCRA). Before signing up for a credit repair, you should be given a copy of the Consumer

Credit File Rights Under State and Federal Law. Make sure that your agreement clearly stipulates the precise service you will be

provided, the approximated time frame before you can see result, and all the fees that you are expected to pay.

You are not given practical advice. There are many steps which can be done to help yourself get out of bad credit without spending a

cent. For instance, you can get a free copy of your credit report if you think you have been a victim of ID theft or fraud; if you

have been previously refused credit or employment; or if you are without a job and intend to look for a new one within the next 60

days.credit repair

You can also obtain a copy of your free credit report by checking out www.annualcreditreport.com. The website is backed up by the

three credit report agencies— Equifax, Experian, and TransUnion.