Identify Credit Repair Scam in 6 Ways!!
January 16th, 2009. Published under Finance. No Comments.
Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies cant deliver an improved credit report for you using the tactics they promote. Its illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, youre left with the same credit report and someone else has your money.
If you see a credit repair offer, heres how to tell if the company behind it is up to no good:
* The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
* Your rights and what you can do for yourself for free isn’t disclosed to you.
* You are not recommended by the company to contact any of the three major national credit reporting companies directly.
* Even if the information in your credit report is accurate and current, the company tells you they can get rid of most or all the negative credit information in your credit report.
* The company suggests you to apply for an Employer Identification Number to use as a “new” credit identity instead of your Social Security number.
* The company advises you to dispute all the information in your credit report, regardless of how accurate and current it is.
If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: Know that it’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.