You’ve seen the ads on roadside signs, in the newspaper, on TV commercials, and on the internet. They all make the same claims: “Wipe out your debts legally using the protections provided by federal law!”, “We can erase your bad credit — 100% guaranteed.†Don’t believe these statements, they simply take your money and vanish! So now you still have bad credit, and less money.
The Federal Trade Commission advises that the following are warning signs of a credit repair scam. Look for these signs of scam:
- Explain your legal rights and what actions you can take for free.
- Recommend that you not contact a credit bureau directly.
- Suggests that you try to invent a “new” credit report by applying for an Employer Identification Number to use instead of your Social Security Number.
- Recommend you dispute all information, even accurate information, on your credit report.
- They want you to pay for credit repair services before anything is done.
No one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of the disputed information on file and make any necessary corrections. There is absolutely no charge for all of this.
If you can’t resolve your credit problems yourself or you need additional help, you may want to contact a credit counseling service. There are nonprofit organizations in every state that counsel consumers in debt. Counselors try to arrange repayment plans that are acceptable to you and your creditors. They also can help you set up a realistic budget. These counseling services are offered at little or no cost to consumers.
Do not believe any company that tells you they can remove all negative information from your credit report if you pay them. The truth is, if you have bad credit, based on information that is true, no company can just “erase” it. Do yourself a favor and save some money. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
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