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The Possible Crimes of Credit Repair Companies

By Janet Lacey
Published: Sunday, December 20th, 2009

Everyday many individuals are made to believe that credit repairing would require professional help from credit repair companies. Credit account holders are continually bombarded with advertisements that make everything appear helpless and irreparable unless a corporate and professional help will come. This is the advertisement plan of most credit repairing companies because just like all other profit oriented companies they make money out of needs; even if the needs have to be imposed. Individuals who would really want to improve their credit worthiness standing should see their future credit rating beyond these companies. A real improvement in credit worthiness ratings can only be achieved from the personal perspective of credit account holders.

Many credit repairing companies promise instant, assured and almost magical improvement in the credit account holders’ credit worthiness ratings. These promises are sometimes fulfilled through wrong means like falsification of documents and identity fraud. There are credit repairing companies that advise its clients to create a new credit identity, instead of finding ways to improve the credit report and score of their clients. It is a shortcut in giving what their clients want and a shortcut in making profits for their company. Looking at the down side of this repair strategy, those who have committed identity fraud just to increase their credit worthiness rating will be persecuted and punished for at least 15 years behind bars.  

Most credit repair companies hide a general truth about repairing credits. It can be done personally and for free. There are laws which have been enacted and passed by the United States’ legislation, individuals are now more equipped with the needed tools to repair their credit worthiness rating. For example, the FCRA entitled every American citizen to get free annual reports and scores from the major credit bureaus. By just accessing these free documents, credit account holders can find the points where they can make their credit worthiness rating better.

Authorities are now recognizing that not all registered credit repair companies will follow the right way of repairing credit. There are those that would commit fraud just to make their clients appear more credit worthy. In line with these negative potentials of credit repairing companies a law has been passed that prohibits these companies from charging fees until a 3 day right of rescission. These companies are prohibited from charging fees in the condition mentioned after they have delivered their services. Those who will not abide this law will be automatically charged with violations against the Credit Repair Organizations Act.

In the event that a credit repair company starts to violate the legal rights of their clients, the client can access many authorities to apprehend the company involved. These authorities would include the State’s Attorney General (AG), Federal Trade Commission (FTC) and National Fraud Information Center (NFIC). Among these authorities the AG has been the most commonly contacted office. The Attorney General’s office can assist credit account holders who have been violated by credit repair companies through advising on the needed paper works and giving orientations on how the complaint will proceed. Clients of credit repairing companies should not hesitate to contact these authorities. Recent cases of fraud committed by credit repairing companies have been stopped through client reported complaints.

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