Stay away from a credit repair firm that does any of the
following:
1. Promises you the moon. Most negative information stays on
your credit report for seven years; judgments and lawsuits are
reported for seven years or until the statute of limitations
runs out; bankruptcy remain for up to 10 years.
2. Advises you to dispute all negative information in your
credit report. The company will flood the top 3 credit bureaus
with letters disputing both inaccurate and accurate information.
The theory being that most creditors will fail to respond within
30 days and that item will be permanently deleted.
3. Offers to help you get a new credit identity. The company
tells you to apply for an Employer Identification Number or EIN
number. Which has the same number of digits as a Social Security
number. Then they instruct you to apply for credit using this
and a different address. This practice, known as file
segregation, is a federal and state felony.
4. Asks you to pay for credit repair before services are
provided. This is a direct violation of the Credit Repair
Organizations Act, which states that credit repair companies
can't charge you fees until after they have completed the
promised services.
The Credit Repair Organizations Act:
By law, credit repair organizations must give you a copy of the
"Consumer Credit File Rights Under State and Federal Law" before
you sign a contract. They also must give you a written contract
that spells out your rights and obligations. Read these
documents before signing the contract.
The law contains specific protections for you. For example, a
credit repair company cannot: 1. Make false claims about their
services.
2. Charge you until they have completed the promised services.
3. Perform any services until they have your signature on a
written contract and have completed a three-day waiting period.
During this time, you can cancel the contract without paying any
fees. Your contract must specify: 1. The payment terms for
services, including their total cost;
2. A detailed description of the services to be performed;
3. How long it will take to achieve the results;
4. Any guarantees they offer; and
5. The company's name and business address.
Credit repair companies often make illegal or false claims to
lure consumers. They target people with poor credit histories,
particularly those with recent bankruptcies who may have
difficulty getting new credit or loans.
These organizations falsely claim they can legitimately erase
bad credit; remove bankruptcies, judgments, and liens; and
create a new credit identity. Moreover, they charge fees Of $200
or more for legal steps you can easily do yourself.
About the author:
Vincent Dail Is A Credit Repair Specialist. he has written
several articles on credit repair and debt elimination. Visit:
Raise
Your Credit Score Yourself And
Credit Repair
Specialist We review and list some of the very best credit
repair companies.
