Avoiding Credit Repair Scams
Avoiding Credit Repair Scams
Copyright 2005 Money and Credit Info
Credit repair services seem to be in abundance these days. You see them everywhere: on television, on your local newspapers, and on the Internet. Most credit repair services promise to be the total solution to your financial woes.
Unfortunately, many of these credit repair companies exist only to cheat money out of their customers. If you’re not careful, you could be an unwitting prey to their devious plots. After you’ve paid them hundreds of dollars in fees, these credit repair companies simply vanish because they can’t deliver what they have promised. The only real way to improve your credit report is with time, effort, and a personal debt repayment plan.
Before you decide to engage a credit repair service, be aware of some danger signs. A credit repair service should not want you to pay for credit repair services before any services are provided. Another warning sign is if a credit repair service recommends that you not contract the credit bureau directly or refuses to answer questions about your legal rights as a debtor.
Some of these phony credit repair services will even advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity by applying for an Employer Identification Number to use instead of your Social Security Number. Following their suggestions would only make you liable for some federal offenses. Falsification of public documents is primary among them, as the documentations involved partake of a public nature.
Negative information on your credit report is generally reported for seven years. Bankruptcy information can be reported for ten years. Default information regarding US government insured or guaranteed student loans can be reported for seven years.
While no one can legally remove accurate and timely negative information from a credit report, the good news is that the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete. According to the Fair Credit Reporting Act, you can dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing. Include supporting documentation, clearly identify each item in your report that you dispute, explain why you dispute the information, and request a reinvestigation. Make sure you remember to keep a copy of the dispute for your records. If the new investigation reveals an error, ask that a corrected version of the report be sent to anyone who received your report within the past six months. If the reinvestigation does not resolve your dispute, have the credit bureau include your version of the dispute in future reports.
Most States have active monitoring plans against fraudulent credit repair services. If you feel that you’ve been victimized by one of these deceitful entities, do report such violation to the local authorities. Remember, they can only be quelled if we would all act against their deceptive practices.
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