How to Spot any Credit Repair Scam
Credit repair is the only solution when your credit rating is not very good. Even though some people do it by themselves, there are those who parents. If you need assistance, you should know how to spot if the company is reputable or not.
The first thing you have to know about credit repair companies is that they are governed by a law known as the Credit Repair Businesses Act. This means you possess certain rights that you should know about and any organization who violates the guidelines is probably just a con.
You can tell if it is a credit repair scam if
The actual credit repair company does not offer you a pamphlet which says your rights under federal and state laws.
If they have a copy, you must have the ability to read and review it before you are asked to signal anything.
Upon reviewing the contract, it should be indicated there how much money you’ll cough up for their services, the help they will offer, the particular date by which this can be done as well as the name and address of the organization. There also needs to be a clause within the contract telling that you can cancel the contract inside 3 days.
The credit repair business tells you to pay at the start for their services even if they have not done anything at all yet. The law declares that they can only be paid after they have done operator in helping you repair your own credit.
If they promise that they can remove anything in your credit report. If this is not possible, they might even state that they will help you develop a new federal company identification number which of course is illegal.
Last but not least, the credit repair agency provides you with a piece of paper which you have to sign stating that a person waive your legal rights under the CROA or Credit Repair Firm Act.
There are certain items that a credit repair company can do and improving your credit report from their end isn’t one of them. This is something you have to do yourself because you are the one that owes your creditors the money.
All they can do is facilitate a deal that is great for both parties like a debt consolidation loan plan which you have to meet.
Should the information produced in your credit report be wrong, again you’ll find nothing you can do because you are the only one that has the supporting documents which usually prove these issues are already resolved. You may not also need the help of any credit repair agency because you can send out a letter together with the files to the crediting agency.
When it just so happens the credit repair agency has requested payment up front, not informed you for your rights as a customer, want you to waive your rights or perhaps tell you to do something illegal, walk away and also report them to the actual authorities. After that, continue looking for a legitimate credit repair company.
To tell if this company is a scam or otherwise not, you can also check with the greater Business Bureau and any other agencies in your area which are responsible for preventing such things to happen. No one wants to be come any victim but when you need credit repair, it is possible.