Credit Repair Scams – Beware
You’ve probably heard many, many stories of people who have hired credit repair companies for assistance to improve their bad credit report, but who have instead been cheated by credit repair scams. So that you can understand what actions must be taken to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must learn how they function.
They know that those who find themselves suffering financial hardship are in such desperate straits as to grasp at whatever is told them, in the hope that these fake agencies are really able to lead them out of financial despair, so they can regained their serenity. They in many cases are so disheartened by the system, which is downright cruel to people who suffer from credit problems, that they’ll take any measures to get it fixed.
Most of those who seek out help near bankruptcy, or at least contemplating it. It is these who are most vulnerable to credit repair scams.
The reason? Because they feel a sense of urgency, and are unable to internalize the fact that the credit repair process requires at minimum 6 – 12 months. Very often, they feel that they don’t have much time, and unless they act right now, disaster awaits them in the future. Ironically, when they sign up with these company’s instead of solving their financial problems, they will lose whatever little money they still had, since they’ve been chasing a mirage.
Heed these warning signs that could indicat credit repair scams:
1. They promise the impossible – many of these agencies promise they will have every negative account removed from your credit report. They will also guarantee that your score will increase in a very short time.
They attempt to do this by disputing every adverse trade line in your report. The credit reporting agencies may initially remove some or most of the disputed items which they are unable to verify within the required 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.
But if the credit bureaus verifies the items at a later date, they’ll go back on the credit report – plus you will have earned the reputation of being a hustler!
2. They tempt you to bend the rules – they use illegal means, such as using the identity of others to increase your overall credit, by offering to give you a new Social Security Number, so that you can “start your financial life over.”
Beware! Such tactics could put you in hot water. Not only is it illegal to take up a “new” SSN, the number could have a police record attached to it, or any such things that will be far worse that having bad debt.
3. They require all their fees be paid up front – these credit repair scams ask for their fees in full before any services have been rendered. This makes sense, because they know that sooner or later you will discover that they cannot really remove bad credit or improve your credit score as quickly as they claimed. And at that point, you would understandably be reluctant to pay their fees.
In conclusion, credit repair scams are avoidable. Just remember that no matter how desperate your situation, don’t ignore the warning signs!
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