Beware Of Credit Repair Frauds

When you have bad credit and are desperate to repair it, you begin to seek shortcuts to do so. Scammers are always on the lookout for such people and take advantage of them. When you approach a credit repair company, ensure that is genuine and follows all the regulations laid down under the Credit repair Organizations Act. Given below are 7 signs that indicate that the company is not genuine and is a scam.

1. Every credit repair company must inform you of your rights by giving you a copy of “Consumer Credit File Rights Under State and Federal Law”.
2. You must also be give a copy of the contract that has been drawn up for review before signing it.
3. The contract should contain details of the fee that is being charged and the services being provided. It should include the date of commencement and end of the services and should also contain details of the organization such as its name, add and telephone number. Genuine contracts contain a clause that states that you are under no obligation to continue with the contract and if you so wish, you can cancel it within 3 days.
4. The company is a fraud if you are asked to pay upfront fees. These fees are charged before the services are provided.
5. Remember that there is no magical solution to bad credit. It takes time and perseverance and if the credit repair company has promised to remove all information, they are cheating you.
6. If the company asks you to create a Federal Employer identification number or a social security number, beware of them as they are offering you illegal solutions.
7. If you are given a form for signature that waives your rights, then the company is a scam.

Rather than approach such companies, work on your report to improve it. You can repair bad credit much better than the company and more so because you are aware of the problems and also the solutions. However, if you have been scammed, then take action by lodging a complaint with the State attorney general. Beware of such companies and investigate their background with the FTC, or BBB before signing any contract with them.