Many people who have taken out loans feel that sometimes they are charged extra and that there is some false information circulating around in their credit reports.
If you believe that you have been suffering from the aforementioned set of circumstances, then you should try and contact a credit repair organization. As the name suggests, these organizations try to repair your credit history report by finding out the errors and the discrepancies. Once they have collected sufficient information to support your claims, these organizations would then write letters to the concerned lenders in order to inform them and help you in getting the record straight.
However, it is important to note that this is a lengthy process and you must remain patient should you decide to go down this road. Also, it is of paramount importance that you verify first whether the Credit Repair Organization that you are choosing to sign with is legitimate or not. One way to ensure this is to look for companies that do not charge you anything before any work has been done as per the regulations laid down in the ‘Credit Repair Organizations Act’.
Some important things to consider
Taking the discussion further, it is strongly advised that you remain vigilant and report any activity which is in violation of the law. For example, it is possible that fake companies or individuals might approach you pretending to offer credit repair services and ask you upfront payment. If this is the case, then you must report the concerned party to the Federal Trade Commission as soon as possible and avoid any further contact with them altogether.
The law regarding credit repair organizations clearly states that unless some service has been provided, these organizations cannot ask for any form payment. Hence upfront payments in this case are strictly prohibited by the law.
It is also important that you have knowledge about your rights and what services/products are owed to you by the credit repair companies. One example is the acquisitions of a free credit report. A good credit repair company will make sure that you get your three reports from the credit authorities. These companies would also ensure that you are aware of the special privileges for example, the right to acquire another free report if you have been denied credit.
The credit repair companies cannot remove any information from your credit report if the information is true. You must keep this in your mind while choosing a company. If some organization claims that they can have the negative aspects removed then you need to be careful as they are most probably a fraudulent organization. For example, if you have filed for bankruptcy any time during the last 7 years, then this information will appear on your credit report.
Anyone who claims to have this information altered should be reported to the concerned authorities immediately.
A word of advice
Before we conclude this article, a word of advice for the people who are looking to work with credit repair organizations. Be very vigilant about which company you choose and do your homework. If you indulge in any unlawful activity regarding your credit report then legal action will be taken against you even if you were instructed by the company to do so. That is why it is always better to be safe than sorry. Choose wisely.
We tell you what’s behind the companies that promise to repair your credit. Take your precautions before you take that step.
False fraudsters who promise to eliminate debts
An expert tells you how to avoid being a victim of tricksters.
What to keep in mind:
– Never sign a contract or payment plan agreement unless it is administered by a nonprofit credit counseling service.
-Be careful with debt restructuring plans, since although they may reduce your monthly payments, it may take longer to pay.
-The amount of money you owe may increase because you may be charged additional financing charges. Many people end up with a bigger debt because they did not understand the terms of the debt restructuring agreement.
-Never deal with a company that offers to change your social security number or get a new identity to apply for credit. This is a fraud and a federal crime. Any company that offers to do this is doing something forbidden and you can be arrested if you follow these recommendations.
How to identify a fraudulent agency.
If you decide to respond to a credit repair offer, beware of companies that:
“They want you to pay them for credit repair services before any service is provided.
– Do not tell you what your legal rights are and what you can do yourself for free.
– They recommend that you do not contact the credit reporting agency directly.
– Suggest that you try to create a “new” credit report by submitting an application for an Employer Identification Number * instead of using your Social Security number.
-They advise you to dispute all the information set in your credit record or to take any action that may seem illegal. Such as creating a new credit identity. If you take illegal advice and commit fraud, you can be prosecuted.
-No one can legally remove correct negative information from your credit history.
-But the law allows you to request an investigation of the information in your credit history.
-Anything a credit repair consultant can do for you legally, you can do it yourself for a low cost or at no cost. In accordance with the Fair Credit Reporting Act.
Have you been a victim?
-Contact your local consumer protection agency or your state’s Attorney General’s Office. Many public prosecutor’s offices have free hotlines for consumers. Check the local phone book.
-Contact a credit counseling service. There are non-profit organizations in all states that advise indebted consumers.
-You are entitled to one free report per year if you certify in writing that (1) you are unemployed and plan to search for a job within the next 60 days, (2) receive social assistance, or (3) your report is inaccurate because of Of fraud. Otherwise, a credit reporting agency may charge you up to $ 9.00 for a copy of your credit report.