Credit repair companies sound like your knight in shining armor when credit problems interfere with even the smallest tasks of your day-to-day life. While the companies provide a plethora of services aimed to help repair credit once a person finds themselves in debt, credit repair scams only have one goal and that’s taking even more of your money at a time when getting it all together is most important to you.
Do not let desperation to repair your credit cost you undue hardships because you fell for one of the many credit repair scammers out there. Tons of companies are out there waiting to take what they can from unsuspecting people. That is why it is so important to arm yourself with plenty of knowledge. Avoiding credit repair scams is fairly simple if you arm yourself with the knowledge necessary to avoid the scrupulous scammers.
Signs of Credit Repair Scams
Be on the lookout for any of the following signs, which indicate a potential scam.
- You aren’t provided with a copy of the ‘Consumer Credit File Rights’ that let you know your rights to obtain a copy of your credit report and dispute any inaccurate information contained within. Credit repair companies are required by law to inform you of your rights and provide written copies of the information. Companies that do not provide this information may be trying to withhold important information that you need.
- You aren’t given a copy of the contract before you sign it. Never, under any circumstances, sign a document or an agreement that you haven’t taken the time to read. You are making an agreement when you sign a contract and it is permanent once your name is on that dotted line.
- The company promises to provide you with a new identity or social security number.
- The company uses shady tactics to improve your credit, such as removing accurately reported information from the credit report. A scrupulous company may try to say that a case such as identity theft is to blame.
- The contract does not contain certain information, such as the amount you’re being charged, the dates of payment/actions, the business name and address, or a statement letting you know your right to cancel the contract within a period of three days.
- You are asked to pay for services before they’re rendered. Law prohibits a credit repair company from charging their customer an upfront fee. However, many scrupulous companies break the law and require fees from customers beforehand. Never pay a company for promises of what they can do. More than likely, this will result in the loss of your money and time.
- You are asked to waive your rights under the CROA. Any company that asks you to sign your rights away is a shady provider that you should probably avoid. Although the CROA voids any waiver of rights, giving you some protection, getting involved in a company that asks you to do this is better left alone.
Signs of a Scam: Know What to Look Out For & Protect Yourself
This is among the most common signs that suggest the credit repair company you’ve found isn’t exactly honest and upfront and may be attempting to scam you for money on personal information. Always approach credit repair companies with a bit of skepticism until you’ve had the opportunity to get to know them better and confirm they’re working for your best interests.
Every credit repair company out there is not a scammer looking to take you for your hard-earned money, but it is imperative that you know that they do exist. In fact, the majority of credit repair companies want to help their clients improve credit and work their way back to the right financial path. With the right credit repair company, it is more than possible to recover from financial problems without taking drastic measures such as declaring bankruptcy. Your efforts pay off when you research the various credit repair companies and find one that offers exceptional repair services.
Be on the Lookout for Scams
The signs above are among the most common indications that a credit repair company may be up to no good. Compare your credit repair company choices rather than settle for the first provider. Research helps you discover the good, the bad, and the ugly about the company so you can always avoid scams and the headaches they create.