If you’ve been overwhelmed by debt, fallen behind on payments and have collectors hounding you to pay up, it can be tempting to jump on a credit repair deal that offers to change your nightmarish situation overnight. However, there are numerous credit repair scammers who prey on consumers in such predicaments and appeal to their desperation by offering a variety of options which are unattainable or illegal.
Legitimate credit repair is definitely a viable option for those plagued with a poor credit history and should be sought out. Having bad credit can hinder your chances of getting loans and other financial necessities of life. But you should beware of predatory companies, and the best way to avoid them is to understand their ploys and what a legitimate credit repair company will provide.
Scam Warning Signs
The Federal Trade Commission has provided a list of things to watch out for when dealing with credit repair companies. If you come across any of the following tactics, you should avoid such companies and continue shopping around.
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You are not advised of your legal right to repair your credit yourself for free
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You are required to pay for services upfront which have not yet been rendered
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You are advised not to directly contact credit bureaus and/or to dispute all negative information on your credit report
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You are encouraged to partake in illegal actions such as changing your Social Security Number, obtain an Employer Identification Number, ride “piggyback” on someone else’s good credit account, etc
You should understand that you can be prosecuted for fraudulent activity. Many scammers who advise such activity have already taken your money and disappeared, leaving you to face the crimes which they have instigated.
What a Legitimate Company Will Provide
The Credit Repair Organizations Act was created to provide consumers protection from scams. This legislation clearly outlines what credit repair companies can and cannot do.
A legitimate credit repair company will not charge you any upfront fees, but instead will request payment only after services have been rendered. They will also provide you with a contract and advise you that you have three days to cancel the contract once it has been submitted.
A legitimate credit repair contract will contain the following information:
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The company’s full name and business address
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Total cost and a Terms of Service (TOS) for payment
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Detailed description of all services
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An estimated time for completion of the services
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Any associated guarantees, if applicable
When shopping around for legitimate credit repair companies, consider Repair-Credit-Today.com. We have a long standing reputation for providing professional legal help with credit repair that gets results.