Credit Repair Scams

For many Americans struggling to extract themselves from financial ruin after spending years making poor monetary choices, credit repair services can seem like a light at the end of the tunnel. When you're not sure how to get back on the road to a solid credit score, who better to turn to than the experts?

Unfortunately, there are good credit repair services and bad credit repair services out there, with some of the latter being scams designed to prey on people working to get their life in order. While this may make some reluctant to seek out the help that they need, there are ways to determine if the credit repair services you're investigating will actually deliver what they promise. It's important to make sure that your desire for a quick and easy fix doesn't overwhelm your good judgment. After all, fast credit repair fixes that turns out to be fraudulent will only worsen your situation.

One of the first steps that legitimate credit counseling services will take is to provide you with a document outlining your rights under "State and Federal Law". This is meant to inform you of your rights regarding your personal credit report. A scam artist offering supposed credit repair help won't want you to know what steps you can take on your own.

Make sure that you're given time to peruse the contract that you'll be signing. Legitimate credit repair specialists have nothing to hide in their contract. The contract should include the amount you will be charged, what steps the repair specialist will be performing on your behalf, the time frame for these services to be performed, the credit repair advice organization's name and mailing address, and a cancellation clause designed to protect you.

If you have been the victim of a scam, it's important to notify the attorney general in your state, the Better Business Bureau and the Federal Trade Commission to prevent the service from continuing their fraudulent activities. The latter two organizations can also be helpful in identifying which businesses have already had complaints filed against them.