Credit Report Repair Scams

admin, 18 June 2008,
Categories: Credit Repair
Tags: credit repair

First Time Visitor? Welcome

FinancialLearn.com is dedicated to finding great deals, free stuff, and promote frugal living. We are delighted to have you here.

Sound Fun? Have our articles delivered to you via RSS Feed or E-mail to be reminded of new and upcoming contests and articles.

Credit repair scams are a dime a dozen. They are advertised by phone, on TV, on the Internet and on the radio. Most of these scams play on the emotions of a person who is having or has had financial difficulties. You are promised wonderful credit that will enable you to purchase, the car, the home, the electronic equipment of your dreams. They promise to be able to save you money on your credit debt because of your new and improved score.

Warning Signs

There are telltale scam signs that are easy to spot when you are looking at a credit repair offer. Here are a few of the signs that a company is trying to rip you off:

· Pay for repair in advance

· They do not tell you your legal rights

· You are not told what you can do yourself for free

· They Recommend that you not contact the credit bureau directly

· Suggest “New” credit identity

· Advise you to dispute all negative information

· Advise you to take an action that seems illegal

· Pay a small amount down and a small amount each month and your credit problems are good as gone

Stay away from any company offering these solutions to your credit problems. A credit repair company cannot require payment for services prior to their completion.

Too good to be true

The age-old adage that if it sounds to good to be true it probable is applies here. If a company is telling you;

· “Credit problems? No problem!”

· “We can remove bankruptcies, judgments, bad loans and liens from your credit file forever!”

· “We erase bad credit – 100% guaranteed”

· “Create a new credit identity – legally”

Walk away! No run – they are only trying to get your money. These are promises that they can’t deliver. If they can get you to pay them each month for the privilege of doing nothing it is almost the same as throwing a $20 dollar bill out the window every few weeks. Actually that may have more value. It can be entertaining. Paying someone not to do what you can do yourself for free is a sad example of emotional advertising run amuck. A credit repair company must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract.

Fraud

If you are given fraudulent advice and act on it you may be subject to prosecution. Mail or wire fraud charges may be applicable if you used either the mail or a phone to apply for credit using false information. It is a federal crime to provide false information when applying for credit. This would include the use of alternate credit identities using a number obtained under false pretense. It is illegal to obtain an Employer Identification Number from the IRS under false pretense.

Next Step: 5 Steps to Credit Repair

Popularity: 14% [?]