Trying to Find a Legitimate Credit Repair Service
http://greatsmallbusinessideas.com/articles/22686/1/Trying-to-Find-a-Legitimate-Credit-Repair-Service/Page1.html
Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports. By Stuart Hunter
Published on 20/11/2009
The Credit Repair Organizations Act has established guidelines credit repair providers must abide by that you can use to help select a legitimate credit repair service and avoid being victimized by a credit repair scam.
4 Warning Signs of a Credit Repair Scam
The Federal Trade Commission (FTC) enforces consumer protection law and is responsible for protecting you and me from companies that unfairly garner our business through false claims and, quite simply, by breaking the law. With regards to , practices like this became so common that Congress passed a federal law to outline how credit repair organizations can operate. The Credit Repair Organization Act (CROA) was passed to protect consumers and provide them with recourse if they are a victim of a dishonest credit repair organization.
When researching credit repair organizations, there are some key indicators that should alert you to stay clear. According to the Federal Trade Commission, avoid services that:
Require Payment Before Services are Performed - Credit repair companies shouldn't request payment they have worked on your case. Under the Credit Repair Organizations Act, these credit repair companies cannot require payment until they have completed the services promised. This is to protect people from companies that take large upfront payments and then do not perform the agreed upon work.
Do Not Disclose Your Rights - Trustworthy credit repair companies will inform you that you have a right to order one free copy of your credit reports every 12 months from each of the credit reporting agencies, and that you can dispute inaccurate or questionable items on your own. If a company does not provide you with this information, specifically in the form of a CROA required disclosure titled "Consumer Credit File Rights Under State and Federal Law", take your business elsewhere.
Endorse Creating a New Credit Identity - Some sketchy credit repair clinics will actually advise you to create a new credit identity by using an Employer Identification Number (EIN) in place of your Social Security number. This is a serious crime and if any credit repair company suggests this as an option, run the other way.
Lie About Services They Provide - Watch out for credit repair providers that promise to remove negative and accurate items, such as late payments and foreclosures, from your credit reports. No one can guarantee that items will be removed, especially if the items are true.
When researching credit repair organizations, there are some key indicators that should alert you to stay clear. According to the Federal Trade Commission, avoid services that:
Require Payment Before Services are Performed - Credit repair companies shouldn't request payment they have worked on your case. Under the Credit Repair Organizations Act, these credit repair companies cannot require payment until they have completed the services promised. This is to protect people from companies that take large upfront payments and then do not perform the agreed upon work.
Do Not Disclose Your Rights - Trustworthy credit repair companies will inform you that you have a right to order one free copy of your credit reports every 12 months from each of the credit reporting agencies, and that you can dispute inaccurate or questionable items on your own. If a company does not provide you with this information, specifically in the form of a CROA required disclosure titled "Consumer Credit File Rights Under State and Federal Law", take your business elsewhere.
Endorse Creating a New Credit Identity - Some sketchy credit repair clinics will actually advise you to create a new credit identity by using an Employer Identification Number (EIN) in place of your Social Security number. This is a serious crime and if any credit repair company suggests this as an option, run the other way.
Lie About Services They Provide - Watch out for credit repair providers that promise to remove negative and accurate items, such as late payments and foreclosures, from your credit reports. No one can guarantee that items will be removed, especially if the items are true.