Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected

Unveiling Credit Report Scams

By Karen Anderson
Published: Wednesday, November 11th, 2009

Credit report tips usually advice credit repair for those with bad credit. However, credit repair scams abound that promise quick credit fix. Unfortunately, many are deceived by these false claims either due to desperation or ignorance. We should remember, however, that quick and easy solutions for bad credit do not exist. On the contrary, they may even come at a high price such as identity theft. Fortunately, there are several indicators that would allow us to unveil credit repair scams.

Among the credit report tips, a major indicator that the company offering credit repair is a scam is that they offer illegal solutions. Most prominent among these is that they claim to give consumers “a new identity” allowing them to transact with a clean slate so to speak. In fact, they even provide a tax identification number and social service number with the new identity.

This is clearly an illegal practice and thus, consumers end up paying a hefty price for this unlawful practice. Of course, one need not mention that committing fraud is a federal crime. When we provide false information when applying for loan or credit, we could be charged and prosecuted.

Another danger signal to watch out for is when we are required by the company to pay even before they have provided any service. Another important advice contained in credit report tips is being familiar with the CROA. There is what we call a Credit Repair Organizations Act that governs credit repair companies. Accordingly, credit repair companies should complete their service first before requiring consumers to pay.

When a credit repair company forbids us to contact any of the three major national credit reporting companies, then we should watch out. There’s a very big chance that their credit repair service employs illegal practices. Moreover, credit repair scams also advise consumers to dispute all information in their credit report. In fact, they contend that they can erase all the date contained in our report. This means that not only our negative credit is erased but everything, and that includes accurate and truthful information.

One of the indispensable credit report tips to consider is knowing our rights. Companies that do not inform the consumers of their rights are also an indication of a scam. Legal credit repair companies usually provide consumers a copy of the “Consumer Credit File Rights Under State and Federal Law.” Accordingly, this provides information to consumers regarding their rights to get a credit report or to dispute erroneous credit report information.

The importance of a contract is often cited in credit report tips. An unscrupulous company does not provide the consumers a contract to view before signing. If a contract is available, it should contain relevant information such as the amount to be charged and the details of the service. The contract should also inform consumers that they are able to cancel the contract after three days even after it has bee signed. Lacking any of these information increases the probability of a scam.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.