Credit Repair Scams And How To Protect Yourself
It is unfortunate that the recent credit crunch has caused a rapid rise in unethical and often illegal credit repair organizations. The credit repair industry as a whole is currently under close scrutiny by The Federal Trade Commission as they are working closely with local states to shut down companies that over promise and under deliver. These companies prey on people who are on the verge of bankruptcy and often make their situation worse.
If you find yourself in the situation that your debts, interest rates and credit rating are fast spiraling out of control you need to make intelligent decisions and steps to quickly improve your situation. If something sounds too good to be true it usually is so you need to use care as you take the steps to fix your bad credit, reduce your debt and get back on your feet.
If you're looking for some decisive steps to get started you can sign up for our Free Step by Step Credit Repair course delivered directly to you via email.
If you find yourself in a situation where you're prepared to pay someone to help fix your credit rating you want to look for an established company that does not have complaints logged against them by the Better Business Bureau, your state's Attorney General or the FTC.
Other danger signs to be wary of:
- Offers to "create a new identity" as these often include fraudulent social security scams.
- Claims to remove accurate negative information from your credit report - you can only remove inaccurate negative information (a good idea).
- Claims to be able to remove liens, debts and bankruptcies.
- Outrageous guarantees about how quickly or effectively they can turn your credit around.
- Asking for money up front before services are rendered - people have often signed contracts and send regular payments only to find the company is not using the money to reduce their debt but to pay their up-front fees. Only after they receive the several thousand dollars do they then begin to work for the client. Unfortunately, by that time the situation is usually much worse.
A legitimate credit repair firm can provide many of the following services:
- Have full disclosure about fees that they charge, including a small startup fee and pay as you go services that you can cancel at any time risk free.
- Give credible references of people they have successfully helped to provide proof that they know what they are doing.
- Have established relationships with the big three credit bureaus along with most creditors.
- Reveal that they can only remove inaccurate information on your credit report.
- Provide comprehensive counseling on budgeting and income requirements for debt servicing.
- Clearly reveal that it can often take 3-6 months and sometimes a year or more to do a complete credit repair process.
Unfortunately, there are times that due to complete loss of income and high debt there is no way for even the best of companies to repair a poor credit score. If a credit repair company finds that your situation is beyond their ability to repair it is their duty to let you know this information as soon as possible in the process and to give you advice on the best way to proceed.
Click for our Free Step by Step Credit Repair and Debt Analysis course delivered to your email
Legal credit repair is within the rights of every consumer - even if you have fairly good credit you want to review your report from time to time and remove any inaccurate information through a legally-acceptable channel. Our credit repair and debt analysis course has detailed steps on this process.
If you believe you may already have been a victim of a fraudulent credit repair company, immediately report the case to the Attorney General in your state, visit www.fraud.org to report your experience and file a claim with the Better Business Bureau.
How To Repair Your Credit?
Sad but true...a low credit score will keep you away from living a better life. Your credit score determines all your payments, like mortgage, car, insurance, and even your credit card rates. More over, most employers will also check your credit score when you apply for a job. A few negative items and you are denied of most of the things. Thus, having realized the significance of a good credit score for customers, credit repair companies have come into the scene-promising customers to help them improve their credit score and fix the negative items.How to repair your credit?· The first thing is to realize that you are completely capable of repairing your credit. No credit repair company will be able to do anything that you are not capable of. Instead of wasting your time and money on credit repair companies, prepare yourself for the task of repairing your credit.· In order to know what you are going to repair you will need to know all the information contained in your credit report. You will need to have the latest copies of your credit reports. Having a complete view of your credit history will help you know how to help yourself.· Read, review your reports, look out for the information which are incorrect or aren’t yours, check out for the errors that been made in reporting payments and late fees, your past accounts that are late, charged off or have been sent to collections· In case you find any incorrect information in your account, you have the right to dispute it, send a letter to the credit bureau informing about the incorrect entries. If you sent a copy of your report highlighting incorrect information it will be much better.· It is important to care of your past due accounts. Do what ever you can to stop your past accounts from being charged-off, and if you have charge offs, pay them, and work with debt-collectors to take care of your collection accounts.· Maxed out cards will cost you credit points, you should thus bring them below your credit limit and continue to pay the balance completely.· Now that you have cleared all your negative items on your credit report, work to create a positive information, you will need a new credit card to re establish your credit score, you can ask for your friend or your family to co-sign a credit for your best bet will be a secured card, and once you get that you must continue to make your monthly payments on time. Sometimes there can be inaccuracies in your credit report, which will lower your overall credit score. When it happens some people turn to credit companies to help them with credit disputes. Most repairing agencies will promise them with much more than they can obtain. No negative information can be removed from your credit reports, unless you can proof that the information is false. If you think that the information is false you can file a dispute and notify the credit bureau. The credit bureau will check the information and if found false will rectify it. If the information is accurate it cannot be removed from your credit reports. However, if you choose to use the service of repairing agency, you are paying for the same work which you are capable to do.These organizations are governed by the Credit Repair Organizations Act. Under this Act a credit repair company is obliged to you to give you a copy of your contract to view before you sign it, the contract has to include the payment that has to be made, a description of the services they perform on your behalf, the date by which the services will be performed, their name and the address, a statements about 3-day cancellation period. If the company does not provide you with the above, asks you to pay before the services have been performed, promises to completely remove all the negative items on your report, and asks you to create a new social security number, then you are being scammed.
Your Raw Food Life
Ftc Credit Report Repair Facts – for Consumers
The FTC claims that Credit Report Repair may be better for you if you do it yourself. You have seen advertisements on TV, local newspapers, internet. All of these credit report repair companies claim the following:
* "Credit Problem? No Problem!"
* " We can get rid of bad credit problems - 100% guaranteed"
* "We can remove bankruptcies, judgments, bad loans and tax liens from your credit file forever
The FTC says "Don't believe these statements. The only thing that will fix your credit is time, conscious effort, and a personal debt repayment plan will improve your credit report.
This article will explain how you can improve your creditworthiness and gives legitimate resources for low or no cost help.
The Scam
All over the US companies appeal to families and individuals that have bad credit problems. They promise for a fee, to clean up your credit report so you can get a car loan, a home mortgage, a job or even a insurance. The fact is, they cannot deliver. After you pay them hundred of dollars or even thousands of dollars in fees, these companies do absolutely nothing to improve your credit report. They typically vanish with your money says the FTC.
Warning Signs
If you feel credit repair with one of these companies is your choice, look out for the following.
* Companies that want you to pay before services are rendered
* Companies that don't tell you your legal rights and what you cannot do yourself for free
* Companies that recommend that you don't contact the credit reporting companies
* Companies that recommend you create a new identity by way of Identification Number.
* Companies that advise you to dispute all information in your credit report
Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed services they claim they can provide. The FTC says to get what they claim they can do in written, and once it is done then pay them.
The FACTS
No one can legally remove accurate information from you credit report. If you owe the debt, it will be on there for 7 years from original collection date. The law allows you the consumer to dispute inaccurate information on your report for FREE. There is no cost to you for doing this. Everything a credit repair company does for a fee, you can do it yourself for FREE. This is all in accordance to the Fair Credit Reporting Act (FCRA)
v You are entitled to Free Credit Report if you are denied for the following
1. Credit Application
2. Insurance
3. Employment
You are to ask for this report within 60 days of receiving this notification. You are also entitled to the free report if you are unemployed and are about to apply for job, if you are on welfare, or if your report is inaccurate because of fraud including identity theft.
v All 3 Credit Bureaus - Equifax, Trans Union and Experian are required to provide you once a year with a Free Credit Report. In order to get this report you must go to annualcreditreport.com.
v You are allowed to dispute items that are not yours for free. Under the FCRA any company that is reporting information about you that is inaccurate, this information must be updated correctly. If you owe the debt it will not be removed.
Step One
The consumer credit reporting company that is reporting information incorrectly about you must be informed in writing what information is inaccurate. You are to include a copy of documents backing your claim. You are to clearly identify in the claim the following
1. Your full name
2. Address
3. The item in the report that you are disputing
4. The request that it should be removed or corrected
5. Enclose a copy of the report and circle the item in question.
Your credit report dispute letter may look something like this:
Date
You're Name
Mailing Address
City, State, Zip
Re: Disputing Inaccuracies on My Credit Report
Name of Credit Reporting Bureau
Mailing Address
City, State, Zip
Dear Sir or Madam:
I am writing for two (2) reasons:
1. To dispute certain information in my credit file; and
2. To have you investigate/re-investigate and remove inaccurate information from
my Credit Report and prevent its re-insertion. The item(s) I dispute are encircled
on the attached copy of the credit report and further identified by (identify the
items by name of source, such as creditor or tax court, etc. and identify type of
item, such as credit account, judgment, etc.)This item is (inaccurate or
incomplete) because (describe what is inaccurate or incomplete and why). I am
requesting that the item be deleted (or whatever specific change you are
requesting) to correct the information.(If you are enclosing documents such as
copies of cancelled checks, payment records, court documents, send copies
only, you should always retain the originals -- and use the following sentence.)
Enclosed are copies of the following documents supporting my position:
1.
2.
3.
Please reinvestigate this (these) matter(s) and (delete or correct) the disputed
items within the time frame required by the Fair Credit Reporting Act (FCRA) and
inform me in writing of the outcome. Thank you for your time and consideration in
this matter.
Sincerely,
________________________
(Signature)
Your name
Once the investigation is complete, whether they removed the item or not, the creditor must give you something in writing. If the information was deemed incorrect, then they must remove it, and not put it back on your report.
Step Two
Advise the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies only, not your original supporting your claim. The creditors usually provide an address for disputes. If the creditor reports the items to the 3 credit bureaus, they must include the dispute during the reporting time. If you are correct, the creditor must remove the item from the Bureaus it's reporting too.
For information on "How to Dispute Credit Report Errors, go to ftc.gov/credit.
The reporting of correct information
When negative information is being reported about you, and it's accurate the only way it will go away is with time. A consumer credit reporting company can report negative information about you for 7 years and bankruptcies for 10 years. Judgments can be reported for 7 years or until the statue of limitations run out.
Credit Repair Organization Act
By law credit repair companies must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign any contract. They must also give you a written contract that specifies your rights and obligations. Read these documents carefully before you sign anything.
Example of what a credit report company cannot do:
v Charge you for anything until services have been completed
v Make false claims about there services
v Provide any services until they have your signature on a written contract and have completed a 3 day waiting period. During this time you may cancel the contract without any fees occurred.
v Payment terms for services rendered, along with total cost
v Detailed description of services you are paying for
v How long it will take to achieve results
v Any guarantees they offer
v Company address and name
Check your Credit Report at least 4 to 5 times a year.
Even if you don't have poor credit, you need to know what's on your credit report. Here are some good reasons per the FTC.
v Because the information it contains may affect whether you get a loan and the payment terms for that loan
v Make sure the information is accurate, complete, and up to date before you apply for a mortgage, credit card, car, insurance or even a job.
v To help guard against identity theft
Hopefully this has shed some light on credit repair, and the importance of have a recent copy of your free credit report.
internet marketing consultant
FREE CREDIT REPAIR
Free Credit Repair
Every consumer who uses credit has a credit record -- and is it ever powerful.
Every time you apply for credit or a loan, creditors obtain your credit record to verify your worthiness. But, the use of these reports has broadened. Insurance companies have begun to use them to determine premiums or deny coverage. Potential employers may even want to check out your credit worthiness.
If you are hampered by a low credit score, you may do well to make use of credit repair service to improve your credit score.
Rising interest in credit scores
Today, a credit record is more than just a dry report on how many credit cards you have and whether you made every auto payment on time. Credit recording agencies often distill consumers' reports into a three-digit number called a credit score -- and that number alone can determine whether you get easy monthly payments or loan-shark rates. It's not surprising that as credit scores become more important, consumers are taking more interest in these three-digit numbers. A high score saves you money, a low score costs you. This fascination with credit scores has led to more interest in repairing credit to increase scores.
Unfortunately, as the demand for credit repair rises, the opportunity for scams becomes more prevalent, says Marta Moakley, an assistant attorney general in Florida.
"As our economy becomes sluggish and debt levels rise, more people turn to companies that specialize in credit repair for help. Consumers need to be aware that there is potential for fraud."
The need for such a service is obvious. Practically every consumer has inaccurate or outdated information on a credit report from one of the three major credit bureaus, says Steve Rhode, president and co-founder of Myvesta.org, a nonprofit agency that counsels people in financial crisis.
These errors can be costly, and it's up to the consumer to get them corrected. The credit bureaus are not obligated to root out errors and provide accurate information. Their job is to record the information presented to them by creditors.
Call for help?
So, if your score is low or your credit report is inaccurate, what are your options? It's like hanging wallpaper -- do you call a professional paperhanger, or tackle it yourself?
The Fair Credit Reporting Act says consumers can dispute mistakes in their credit files for free. But it will take time. Correcting one error may average four hours, says Rhode. That includes applying for your credit reports, reviewing and highlighting errors, documenting the mistake, typing up your letter and mailing it.
Credit repair services offer, for a fee, to do this daunting legwork. They pull credit reports, review for errors and send out dispute letters along with documentation. They add professionalism. They save you time. Some promise to erase bad credit -- 100 percent guaranteed. Others advertise they can remove bankruptcies from your credit file forever.
These repair services, however, don't have any secret remedies for erasing bad credit. Neither you nor the credit repair service has the right to remove accurate and current information from your credit report. The bottom line is: Credit repair services can't do anything for you that you can't do for yourself, free.
The mysterious repair shops
Are credit repair clinics fulfilling their promises to improve credit scores? It's hard to say. We contacted five credit repair clinics to learn about their guarantees and success stories, but not one was willing to talk.
The consumer service agencies were more than willing to talk.
Steve Baker, Director of the Federal Trade Commission in Chicago, says a prevailing myth about credit repair is that there are loopholes in the federal law that allows poor credit to be erased. It doesn't exist.
He says that in the past four years the FTC has not seen a legitimate credit repair clinic. "It's possible that these clinics are providing legitimate services to customers, but I've not seen it yet. When the law says that bankruptcy remains on your credit report for 10 years, just how can it be legally removed?" questions Baker. "And, later when you're asked in a credit application if you've ever filed for bankruptcy, will you lie?"
He cites an example of one consumer who was told to steal his bankruptcy record from the county courthouse, so that the credit bureau could not verify its accuracy.
Dramatic? Yes. But it poses a good question -- how are credit repair services removing bad credit?
"If the credit repair service offers guarantees within the Fair Credit Reporting Act," says Steve Rhode of Myvesta.org, "then it's doing the job. Credit repair services get sleazy when they promise to do a job that's just not possible. They promise to remove accurate, but negative information."
"Scams occur," says Marta Moakley, "when consumers pay fees for services that are never performed, or the consumer is misled on the services provided. Too often the consumer can't afford to lose this money."
Worse yet, consumers have paid money upfront -- and the company disappears.
"Credit protection and credit repair" scams are one of the top consumer complaints reported to the FTC. The actual dollar amount lost by consumers to these scams is difficult to calculate, says Baker, because many people are too embarrassed to complain. But, the FTC estimates the loss to consumers is easily in the millions.
"This is an equal opportunity scam. Everyone has a credit report; anyone can suffer from a poor credit history," says Baker.
Steve Rhode knows of consumers who paid $400 to $2,000 for credit repair services. Do-it-yourselfers can expect to pay $30 for a consolidated credit report -- a report that provides your credit history from the three major credit bureaus -- plus the value of their time.
Finding a reputable company
You may still decide to go the credit repair service route. Here's how to let your fingers cautiously do the walking through the yellow pages.
Do your homework. Research the company before your first visit. Contact the Better Business Bureau to see if the firm has had any consumer complaints. Check with your state attorney general's office or other state consumer agencies to find out if there are any pending legal investigations. The FTC warns against relying on chambers of commerce or other trade associations where membership is based solely on a fee.
Know your rights. Credit repair services must follow specific guidelines from the Credit Repair Organizations Act, which are intended to protect consumers. You should receive an explanation of these rights before signing a written contract. Read them.
You should receive a contract with all of the following information:
The payment terms for services, including their total cost A detailed description of the services to be performed How long it will take to achieve the results Any guarantees they offer The company's name and business address Remember the grace period. The credit repair company cannot perform any services for you until you've signed a written contract and completed a three-day waiting period. You may cancel the contract without paying any fees during this period.
"There are no quick fixes in credit repair," insists Moakley. "Common sense tells you that a third party doesn't know your credit history better than you. Through contacting credit bureaus, making your own corrections, consolidating your debts and budgeting, you can improve your own score. You don't need to pay someone to fix it for you. Apply that money toward your debt."
His other interests include fitness, science & technology, modern medicine, poltics, world events and pop culture.
WordPress Yahoo Answers Autoposter Plugin
Whether or not You Believe Credit Repair Works, You are Correct
There are few topics as polarizing as credit repair. Depending on who you talk to, credit repair is usually thought of as impossible, illegal, something you can only do yourself, or something you need professional help to perform. Rarely do you find someone with a perspective on credit repair that is not at the far end of one of these extremes.The fascinating thing is that in most cases, whatever people believe to be true will be true for them.The poster on the Yahoo! Answers forum who states that "there is NO SUCH thing as Credit Repair....it's a scam...." will never realize any benefits from repairing their own credit. By believing that credit repair is impossible, they are fulfilling their own prophecy by ignoring their rights to dispute their own credit. By not believing it can be done, they are proving their own point. This person, and every other person who ignores the possibility of credit repair, will fall into the category of people whose credit scores will only improve through the passage of time.The same is true of people who believe that credit repair companies do not work. Another poster on Yahoo! Answers stated that"There is no such thing as repairing your credit through someone else. If they can, they are doing this via an illegal way and be extremely careful, as it can end YOU up in jail and fined.The ONLY way to repair credit is to do it yourself.Pay your bills on time ;o)"Along with being misinformed about how the credit repair process works, this person is letting their flawed knowledge keep them from so much as investigating the possibility that a credit repair company may be able to help them out. Once again, in believing that it is impossible for a credit repair company to provide any value, this person has assured that they will never receive any value from a credit repair organization.It is truly astounding how many people out there believe that credit repair cannot work and credit repair companies are nothing but scams. It is also unfortunate that it is these voices that seem to be the loudest because not only are they making credit repair an impossibility for themselves, but they are convincing so many other people to not even attempt to repair their own credit.What is equally astounding is how these people can be so passionate about outing credit repair as a pipe dream and a scam when there are so many other people out there who are living proof that credit repair does in fact work. These are the people who have allowed for the possibility that their credit could be repaired and realized the truth about their credit reports.It is hard to believe that anyone could completely dismiss the idea of credit repair when there are stories like this:"I signed up for [credit repair firm] a couple of years ago. They basically write a couple of letters a month on your behalf to either businesses or credit reporting companies asking for verification of debt, that kind of thing, or if you instruct them, actually challenging the debt. After a few rounds of this, negative credit items start to fall off your report. You can totally do this yourself, but it's been worth the cost to me (something like $40/month) since I am too lazy to regularly write this kind of letter. I also like how when the credit bureaus do bother to write back, they're always pretty whiny and pissy about it.Some people seem to think this is some kind of scam (like, paralegals write the letters on your behalf instead of attorneys, and some people don't seem to understand that when you give an attorney "power of attorney," they can write letters as you), but I think it's a fair price for something I was too lazy to do myself. Ultimately, they pretty much got rid of all the negative items on my report except for the ones that were at least semi-legitimate. (I'm not going to pay a parking ticket I got five years ago in a state I'm not going back to.) The ones they did get rid of were things like AOL continuing to charge a credit card after a) I had cancelled the AOL account, and b) I had cancelled the credit card! It just wasn't worth my time to chase this down with AOL or the credit card company.It's annoying that I'm responsible for fixing something that this bogus industry screws up in the first place, but other than that, I'm a happy "credit repair" customer."People who believe that credit repair is impossible will never see any benefit from it. People who believe that credit repair can only be done by themselves will only see the benefits of their personal efforts. People who believe that credit repair companies do not work will never invite the opportunity to have a credit repair company work for them.Ultimately, when it comes to credit repair, we all create our own truths. All anybody can ask of you is to perform your own research instead of letting others choose your truths for you.
WP Robot WordPress Plugin
Banks. Another Possible Scam
On October 31, 2008, I received two messages within a couple hours of each other from two banks. The first message was from a so-called “First National Bank of DeRidder, Louisiana” asking to do a survey and it would credit $99.99 into my account. Of Course, it would not immediate tell me to what account credit would be applied. So, I did the survey using fatuitous name and info. along with a police departments phone number and YES, here it was, the next page asked me for my CREDIT CARD number. How sweet you may say. REALLY??!! Continue reading below.At about 11:10AM, I received the second message from Clarkston State Bank, which would not provide a location address. The phone numbers to this site was a third party numbers for reporting lost or stolen credit or debt cards. However, even when I found the number and contacted the company, the out-going message only gave the street address and not a city, state, or zip. Odd! Clarkston State Bank message is:“Important Message Alert on E Mail Phishing ScamWe have received reports of an email circulating around the internet requesting the recipients to visit a link in the email and complete a survey. This link brings you to a fraudulent website that looks very similar to the Clarkston State Bank website. The survey requests the recipient's card account number and PIN in order to deposit $99.99 to the account for completing the survey. If you received this email solicitation and inadvertently provided your card information for this survey through the website, please take the necessary steps to cancel your card and report any unauthorized usage of the card to your Bank.”BACK TO MY INFORMATION TO YOU:This is my problem with both banks. The first bank is definitely scamming. Its website address is generated through “ucla.edu” (either University of Central Louisiana or the actual UCLA in CA (not sure which one). The second bank does not leave much room to be desired, since:
1. The first bank’s website does NOT look anything like the second bank’s site (as Clarkston Bank stated).
2. A reputable business (especially a bank) would provide phone number and an address. None exists on this bank’s main page or any other pages for that matter.
3. The “Contact US” provides a phone number; however, no one answers. This page of the site requires you to place your personal information so that the bank representative would contact you (possibly through email). ODD!In my opinion this is not professionalism and I don’t know if I would trust this bank either. Please share your stories and experiences with me through my website which is displayed in the “about Author” or “Author’s Bio” or through email at Author@MasterCreditRepair.net. If my bio is not displayed with the article, please search me through search engines and tell me your thoughts and experiences. Go to our website and join the membership…With best wishes, thanks and love;Mike Samadi
For over 12 years he has been assisting consumers with their creditor, merchant and government agencies issues. When people were consumed and troubled by issues for a year or more- he, in a few hours or a day would solve most (if not all) their difficulties.
His believes in: "More Lost by Indecision than by Bad Decision", "Knowledge is wealth", "Ask and you shall receive" among others.
He had been college professor for years and is continually pursuing motivation speaking.
football gifts
Credit Repair: Avoiding Scams!
The Credit Repair Professional
The credit repair business requires a clear grasp of the interaction of many factors. Credit bureaus, creditors, and collectors are each regulated under their own set of federal laws. There are state laws that may supercede the federal laws. In the background of all of this activity is Fair Isaac and Company that formulates your FICO Score based on the makeup of the information on your report. Credit repair professionals must have a working knowledge of all of these factors and more.And the Not-So-Professional
True credit repair professionals provide an incredibly valuable service. But there are also those that misrepresent themselves and the services they offer. These deceptive practices will waste your money, and in some cases leave you worse off than ever. Here is our list of the top offences…Authorized User Alert
Some so-called credit repair companies have been brokering "authorized user" status on credit card accounts. This involves making the customer an authorized user on someone else's credit card to boost the customers FICO score. This is not illegal, but you should be aware that Fair Isaac and Company, in response to this practice, has eliminated authorized user benefits from the new FICO scoring model. According to Fair Isaac, one of the three credit bureaus will begin using the new scoring model in September 2007. The other two credit bureaus will adopt the new model by mid-2008.The New Identity Trap
There is a busy little credit repair sub-culture that offers to help you establish a new identity by applying for an Employer Identification Number (EIN) which they suggest that you use in place of your Social Security Number. This amazes us! And it is a serious crime that could put you in prison. Steer clear.Promises Promises
Watch out for companies that guarantee results such as a specific increase in your credit scores in a specific period of time. Professional, reputable credit repair companies can produce dramatic results! But given the fact that there is no way to predict the responsiveness of the credit bureaus, creditors, or collectors it is inappropriate to make such promises, and a sure sign of bad business.The One-Dimensional Credit Repair Problem
Beware of credit repair companies that offer credit bureau disputes, and nothing more. They are most likely using software that simply pumps out dispute letters - repeatedly. This one dimensional approach to credit repair is certain to produce disappointment. Effective credit repair requires the skill to challenge the bureaus, creditors, and collectors alike; all with the knowledge and understanding of the legislation that governs them, and a grasp of how each change in your report can affect your FICO scores.Power Corrupts
I’m going to stray a bit from the category of credit repair scams and touch on two of the more egregious offenders in the credit reporting industry. Many people mistake size for honesty. Power can corrupt, and the journey to the dark side is often led by corporate attorneys who constantly test the limits of consumer’s tolerance. Credit repair can be tricky enough, but getting hoodwinked by the credit bureaus can be downright discouraging. Here are offenders that we encounter on a daily basis. False Credit
Every day untold numbers of consumers go to TransUnion's "True Credit" website and pay for what they believe to be their credit scores. What they get are deceptively named "TrueCredit" scores which vary significantly from the FICO scores used by lenders. Here is the (almost impossible to find) small print from the TransUnion website. "TrueCredit is not connected in any way with Fair, Isaac and Company; the credit score provided here is not a so-called FICO score. The credit scores of TransUnion may not be identical in every respect to any consumer credit scores produced by any other company."Not Free Credit Report
Are you starting your credit repair effort? You can get all three of your credit reports for free, one time per year, from AnnualCreditReport.com. Don’t be fooled by Experian's freecreditreport.com website! Here is the fine print: "When you order your free report here, you will begin your free trial membership in Triple AdvantageSM Credit Monitoring. If you don't cancel your membership within the 30-day trial period, you will be billed $12.95 for each month that you continue your membership." And it may not be so easy to cancel. The Office of the Attorney General of Florida lists the following issues in their investigation of Experian: "Deceptive advertising, misleading domain name, and failure to honor cancellations in violation of Chapter 501, Part II, Florida Statutes (Florida Deceptive and Unfair Trade Practices Act)."
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
garmin nuvi 250
Credit Report & Repair Scams
Credit Report & Repair Scams Newspapers, radio, TV and the Internet are filled with advertisements that offer for a fee to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. This section is designed to help you understand credit reports and credit repair scams. Credit Reports Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following: * Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit." * "Serious" errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer; Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:
* Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information; Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness. Consolidate debt your debt now free -- quote now! One of the first steps to credit repair, is understanding credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards. Good credit can open many doors. If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront. The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as "FICO" scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks. FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau's data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau. FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring! FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer. The 5 most important factors to determining your credit score are: * Your payment history * The amount of outstanding debt you have compared to your credit limit * Your credit history * The types of credit you use * Negative information Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. Credit Repair Scams You've seen it in newspapers, maybe even heard it on the radio or television -- Erase accurate negative information in your credit file! -- The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio. Credit Repair Scam #1 - File Segregation If you filed bankruptcy, you may be the target of a credit repair scam called "file segregation." In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea but, file segregation is illegal. If you use it, you could face fines or even a prison sentence. Credit Repair Scam #2 - New Credit Identity If you have filed for bankruptcy, you may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet. When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration. After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references. That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time. Credit Repair Company's And False Claims Credit Repair False Claim #1: You will not be able to get credit for 10 years. Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. And, given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes. Credit Repair False Claim #2: The company or "file segregation" program is affiliated with the federal government. The federal government does not support or work with companies that offer such programs. Credit Repair False Claim #3: The "file segregation" program is legal. It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws. Your Rights Under The Credit Repair Organizations Act This law prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights. Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge. Finding Help for Credit Problems It's a good idea to try to solve your debt problems with your creditors as soon as you foresee or realize that there is a financial problem. If you can't resolve your credit problems yourself or need additional help, contact debt-consolidation-Kimberly.com We are a full service debt consolidation organizations with clients nation wide that counsels and educates individuals and families on debt problems, budgeting and using credit wisely. We work directly with your creditors to help resolve your debt problems by negotiating a repayment schedule that is affordable for you and acceptable to the creditor.
WP Robot