Should I Trust the Companies That Offer Credit Repair Services? (cont.)
Contributed by Melanie Vannuys
Following any illegal advice from anyone will not only NOT help your credit situation, it WILL land you behind bars. If you use the telephone or mail to commit fraud, you can be charged with mail or wire fraud and will be subject to prosecution. It is a federal crime to apply for an Employer Identification Number to create a new credit "identity." Lastly, under the Credit Repair Organizations Act, companies that offer credit repair services can NOT require you to pay until services have been rendered.
What Do I Do If I've Been Taken Advantage Of By A Company Offering Credit Repair Services?
The sad truth is you're not alone. If you have had a problem with a credit repair company, don't be embarrassed to report them! You can prevent them from taking advantage of other unsuspecting people. There are laws in place to protect you.
The Credit Repair Organizations Act has specific protections in place for consumers. The company you decide to deal with cannot:
* make false claims about their services;
* charge you until they've completed their services;
* perform any services until your signature is on a written contract and have completed a three-day waiting period. This three-day period allows you to think things through and cancel if you wish, without paying any fees.
