subject: Credit Repair Services And Their Success Rates [print this page] It is difficult to miss the television ads that promise a quick fix to credit reports. They promise to erase bankruptcy and bad loans, or to even give the consumer a new financial identity. There's only one problem. Most of them can?t deliver even half of the promises.
This huge cottage industry is preying on the many consumers who have overwhelming credit card debt, and who have fallen behind in payments. The cold calls or emails promising redemption from financial problems are numerous, and they promise to eliminate all that is negative on credit reports. One, it can't be done, and two, it is usually completely illegal.
Consumers are asked to pay upfront fees for these services, and end up being out the money with no change in their credit report. There are certain things to look for that send up warning flags.
The company wants payment before they provide services. Under the Credit Repair Organizations Act, credit repair companies cannot ask for payment until they have completed the services they have promised. The company doesn't tell explain the consumer's legal rights, and how much of the same thing they provide can be done for free. They recommend that consumers do not directly contact any of the three major national credit reporting companies . The company promises the consumer that they can get rid of most or all the negative credit information in your credit report. Suggest that the consumer try to invent a new credit identity. Often they will suggest no longer using a social security number for identification and replacing it with a employer identification number. They will also suggest disputing all information on a credit report whether is correct or incorrect.
For the unknowing consumer who falls for these tactics, they can end up in plenty of legal trouble. It is quite simply fraudulent. By law, consumers are allowed to dispute false claims on credit reports, and this they can do themselves for no cost. While it takes time to make the disputes in writing and wait for the results and exchanges, if there is inaccuracy, it can be reversed and all without paying a company to do it. There are genuine companies who can help with debt resolution, and all of them will be upfront about what their programs can do to credit ratings. But for the consumer who has discrepancies on their credit report, it is far better to resolve it than hire it done.
