Credit Repair Scams and how to avoid getting ripped off

How do you avoid getting ripped off by a credit repair scam?

Introduction to Credit Repair and Credit Repair Scams
It’s impossible to turn on the TV, open a newspaper or listen to the radio without coming across an ad for a credit repair rip off and other credit repair scams. These credit repair rip offs or credit repair scams make a variety of impossible sounding claims, all of which promise consumers a quick credit repair. A credit repair scam or credit repair rip off claims include outlandish results for credit repair, including new credit identities, bankruptcy erasure, and even debt forgiveness. The best course of action is to just ignore these credit repair ripoff or credit repair scam services that are flooded all over the internet. Although the claims and promises these credit repair companies promise  sound appealing you need to educate yourself and avoid the bad credit repair companies like the plague. Bogus credit repair is simply not worth the time and money period unless of course you like throwing your money out the window. The only surefire solution to credit repair requires time, a serious commitment and a personal debt repayment plan without the involvement of a shady or sketchy credit repair company.

How the Credit Repair Companies Operate and Ripoff Consumers
Everyday, across the country, disreputable credit repair companies prey on consumers who have poor credit history. These credit repair companies will promise customers that, for a fee, they can improve the customer’s credit rating to the point where they will be able to take out loans. The harsh reality is that these credit repair companies and their credit repair promises are completely empty and usually fraudulent. Only a few credit repair companies out of the thousands out there are legitimate and this is why you must be careful.  Most of these credit repair companies charge customer’s exorbitant amounts of money and some even charge customers on a monthly reoccurring basis to prolong the credit repair scam. The sad truth is finding a legitimate credit repair company is like searching for a needle in a haystack. The honest credit repair companies will really help you resolve your credit problems while the bad credit repair companies will take your money and leave you frustrated.

When dealing with a credit repair company there are a few warning signs that can tip customers off that they are dealing with a credit repair rip-off or credit repair scam. The first major warning sign is when a credit company wants a customer to pay a monthly fee for credit repair services. The next warning sign to be wary of is when these credit repair companies do not inform their customers of their legal rights regarding credit repair. Another sign that customers are dealing with a bad credit repair company is when the credit repair company or mortgage broker suggest or tell you that you should not contact a credit bureau directly. Finally, the biggest and most dangerous warning sign that customers are dealing with a bad credit repair company or mortgage broker is that they suggest the customer try to re-invent a new credit report using a false identity.

When dealing with any credit repair company or mortgage broker most of which by the way are unethical con artists you must be cautious otherwise you could get yourself in serious legal trouble. I have seen credit repair companies and crooked mortgage brokers ask their customers to apply for credit using false information to obtain a loan or to re-establish credit and this kind of fraudulent activity will get you charged and likely prosecuted for mail or wire fraud and a laundry list of other felonies that will land you in prison. Applying for credit by providing false information is a serious federal crime and using the Email, snail mail, telephone or fax to apply for credit with false information carries a steep federal penalty.

Additionally, many credit repair companies and mortgage brokers will suggest you make a false statement on a loan application or a credit application, which by the way is also a serious crime. These shady characters do not care about you and are out to make a quick buck at your expense. Under the Credit Repair Organizations Act is a list of the rules and laws that credit repair companies must follow however this does not guarantee a credit repair company will follow the strict rules set forth by the federal government.

 

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