Credit Repair Scams

Credit Repair Scams

Credit Repair Scams – Credit repair scams are more common than you think. If you’ve ever struggled with a huge amount of debt and are worried that your credit was obliterated beyond repair, chances are you’ve received some offers in the mail to relieve you of your woe in a way that seemed to good to be true.

These credit repair scams make wild promises of helping you get back on your feet and restoring your credit as though it takes no more than a flick of a magic wand. While you can take action against your poor credit (request a re-investigation or work hard at restoring it over time) sadly, there is no quick-fix.

According to Credit Report Problems:

No one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act:

  • You are entitled to a free copy of your credit report if you’ve been denied credit, insurance or employment within the last 60 days. If your application for credit, insurance, or employment is denied because of information supplied by a credit bureau, the company you applied to must provide you with that credit bureau’s name, address, and telephone number.
  • You can dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation. Do not send them original documents

Credit Repair Scams

LaToya Irby from wrote a great article on how to spot a credit scam and listed the following as warning signs:

  1. You aren’t given a copy of the “Consumer Credit File Rights Under State and Federal Law” letting you know your rights to obtain a credit report and dispute inaccurate credit report information.
  2. You aren’t allowed to look over the contract with the company before you sign it.
  3. The contract doesn’t state:
    • The amount you are being charged
    • Details about the services being performed on your behalf
    • The date by which the services will be performed (or the time period required to perform the services)
    • The name and business address of the organization
    • A statement letting you know you can cancel the contract within 3 days
  4. They ask for the money up front.
  5. The company promises to remove information from your credit report, even if its true.
  6. The company promises to create, or asks you to create, a “new” identity with a new social security number or federal employer identification number (EIN).
  7. You’re asked to sign a form waiving your rights under the CROA.
Sadly the old rule of thumb still applies here: if it seems too good to be true, it probably is. Be wary of any website or telemarketer that promises you credit repair miracles. In fact, don’t believe them at all.
Credit Repair Scams
Credit Repair Scams

Related: How to spot a con

Credit Repair Scams

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