Crackdown On Credit Repair Scammers
The Federal Trade Commission (FTC) has started a crackdown on credit repair scammers. The FTC is cracking down on about 20 credit repair operations that deceptively claim they can remove negative information from consumers’ credit reports – even if that information is accurate and timely. See AllPayNews posting, Project Credit Despair’ Snares 20 ‘Credit Repair for more information on the FTC’s credit repair crackdown.
In AllPayNews’ posting there is some great advice for consumers on how to avoid credit repair scams:
“· Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law.
· Avoid any credit repair company that will not tell you your legal rights and what you can do, yourself, for free.
· Avoid any credit repair company that tells you not to contact a credit reporting company directly.
· Avoid any credit repair company that advises you to dispute all of the information in your credit report.
· Avoid any company that suggests creating a “new†credit identity – and then, a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number. That is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution.
The FTC advises that only time, a conscious effort, and a personal debt repayment plan can improve your credit report. ”
Many people with bad credit are vulnerable to credit repair scammers because credit repair scammers offer a quick fix to bad credit. The trouble with bad credit is that it usually takes years to get bad credit and then it takes years to get out of bad credit.
There is hope. See our tips, articles, and resources concerning bad credit and credit repair:
How To Maintain Your Credit | Fixing Your Credit Score | Credit Counselling | Raising Your Credit Score | Debt Solution Ideas
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