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Avoid Credit Repair Scams

April 19, 2009 by PlasticEconomy.com

If you have poor credit it’s very possible you want to fix right away and with as little effort as possible. Most people don’t feel they have time to go through the steps associated with repairing their credit. Many people have bad credit, and are vulnerable to scam artists who promise to repair your credit quickly and easily.

It is important you don’t fall victim to credit repair swindles that take advantage of consumers with low credit scores.

The Credit Repair Organizations Act is a federal law that governs organizations who handle credit repair. These repair services are required by law to meet certain specifications and obligations to their clients. Always make sure any credit repair company you are considering complies with this act and follows all the federal guidelines.

There are ways you can tell if a credit repair service is a potential scam.

For example, you must be provided with a document called the Consumer Credit File Rights Under State and Federal Law. This document explains your rights, how you can get your credit report and how you can dispute information that is not accurate. Also, you should be given a copy of any and all contracts the company wants you to sign. Read them in detail before signing anything.

In addition, there are certain things the contract should clearly state.

Your contract from any credit repair service should declare how much you are charged for the credit repair, what kind of services are being done for you, the amount of time needed to provide the credit repair services, both the name and address of the service and a statement that allows you to cancel within the next 72 hours.  Also, you should not be asked for payment before the credit repair agency has performed their services.  Additionally, you should be aware that these companies cannot remove accurate information from your report. If they say they can, definitely steer clear.

When investigating credit repair companies you should know that you can do everything that one of these companies can do. The reason you may want to choose a credit repair agency is because the disputing process can become complicated and time consuming, with a a good agency able to take care of this for you.

Before finally deciding on a credit repair service, check their status with the BBB to make sure no complaints have been logged against them.

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