Do you a bad credit that needs to be repaired quickly? Being desperate for better credit can leave you vulnerable to credit repair scams. Don’t let yourself be taken advantage of. Here are five ways to tell if a credit repair scam service is trying to make you a victim.
1. You are kept in the dark about your legal right.
All legitimate companies that offer credit repair services operate under a set of laws known as the credit repair organization act. These companies are supposed to issue their clients with a copy of consumer credit file rights under state and federal law. This document informs the consumers their rights to obtain a credit report and dispute inaccurate credit information.
If you are not issued with this document, think twice about letting such a company repair your credit. In fact, think thrice and all these thoughts should be NO!
2. You are asked to create a different credit identity
It is never ok to impersonate or give wrong information about your identity. This may get you in trouble with the state laws. If any credit repair company is requiring you to fake your identity, be sure that it is not a legitimate company. It should be reported Federal Trade Commission.
3. You are not issued with a contract, or an incomplete contract is issued.
If you don’t receive any contract from a company you signed on to get services from, this is scam! A genuine contract should contain the following: a) Amount to be charged b) The name and address of the credit repair company c) Details about the service which will be performed d) The date by which these services will be performed e) A statement to let you know that you can cancel the contract within three days if you are not comfortable with it.
4. The company offers to perform illegal services
Some credit repair companies make shady claims that they can help you remove unfavourable but accurately reported information from your credit report. Not only can they do this, but attempting to do so is wrong. You may end up in problem with the state laws. Still, you will be wasting money for a service you will never get.
5. The company requires payment before service
It is against the law to require any payment before any service is delivered to you. Genuine credit repair companies will always let you know the means of payment, and also the payment will be done on completion of the service. This means you should only pay when the have actually completed the service such as removing charge offs.
If you identify any of the five signs of a credit repair scam, please don’t sign a contract with such a company. If you already have signed one, consider cancelling it.