Credit repair is often used to describe a methodical process of improving a
individual’s credit scores. If you decide to use a credit repair company, the
The Better Business Bureau suggests you beware of companies that don’t have
your legal rights and what you can do, legally, for free. They too
recommend that you not pay for credit repair services before the services are
always, and advise you not to participate in anything that seems illegal,
such as creating a new credit identity by obtaining a federal employer
identification number to use in place of a social security number.
If you have a complaint about a credit repair company, contact the Better Business Bureau,
your state attorney general’s office and the Federal Trade Commission. If you
decide to respond to a credit repair offer, look for these telltale signs of a
scam: companies that want you to pay for credit repair services before you
provide any services, companies using an email account of a free email
service provider such as @hotmail, @yahoo, @gmail, etc…, companies that you can
not locate any information online about repair companies and they have not been
around for a long time. By law, credit repair organizations must give you a copy
of the “Consumer Credit Filing Rights Under State and Federal Law” before signing
a contract. If they don’t give it to you, look for another company to work for.
with.
Many states have laws that regulate credit repair companies. State Law Enforcement
officials can be helpful if you have lost money to one of these scams. Do you have a
right to sue a repair organization that violates the Credit Repair Organization
Act. This law prohibits deceptive practices by credit repair organizations. Tea
The Federal Trade Commission regulates credit bureaus and credit repair
organizations
Take some time, learn about your credit reports and help yourself
eliminate problems that can keep your scores low. Many credit repairs
companies are scams, but there are several legitimate, by the book, credit
repair companies out there too. Use due diligence when deciding whether
use a credit repair company or not. Ask for references, do a little history.
work in the company and make sure that they do or do not do some of the elements
previously mentioned.