Is There Such a Thing As Legal Credit Repair?
Contributed by Caryn e Zent
Avoid Scams; Look For Legal Credit Repair
Is there such a thing as legal credit repair? Yes! But be careful; there are tons of advertisers who claim to erase bad credit, create a "new credit identity," remove negative items from your credit report, et cetera. Don't believe their claims -- these schemes are illegal. You will save yourself headaches, money and the possibility of prosecution if you are aware of what is out there.
There are certainly legitimate sources available to help you repair your credit legally, but it will take effort from you. There is no guaranteed fast or instant fix. Some consumers have paid companies thousands of dollars and have nothing to show for it; rip-off artists disappear after you have paid up-front for credit repair. There are some red flags to watch for in looking for credit repair assistance, and there are specific federal laws governing the conduct of credit repair companies.
How Do I Know If It's Legal Credit Repair?
Watch out for companies who do the following:
*Ask you to pay in advance
*Don't tell you about things you can do for free
*Advise you to dispute all information contained in your credit report, even items you know are legitimate
*Tell you not to contact the credit bureaus
*Suggest that you reinvent yourself by applying for an employer identification number to use instead of your social security number
You must be given a written contract the clearly sets forth your obligations and the services offered. Before you sign a contract, you must by law be given a copy of the "Consumer Credit File Rights Under State and Federal Law." You are protected under law from the following: companies that perform services before you sign a contract, charge you before they have completed what was promised, make false claims about their services.
