Most of us have seen the claims: We can help you repair your credit. What most of these advertisements are out for, is to get your money. In fact, consumers who have credit problems may very likely find themselves shelling out hundreds and even thousands of dollars to unscrupulous frauds who claim to be able to help. These tips for avoiding credit repair scams can help you stay out of trouble and not spend your hard earned dollars for nothing. Know your consumer rights Debtors should be aware of their consumer rights granted under the Consumer Protection laws. Many consumers are not aware that they may request their credit reports free of charge one time annually. In fact, the Federal Trade Commission (FTC) worked with the three major credit bureaus to allow consumers this right. Do not fall for advertisements that offer free credit reports with the subscription of other services. Know the statutes of limitations Collection agencies call consumers on debt that they have often forgotten about. Some of these agencies use “strong-arm” tactics to get debtors to pay something on old debts. The primary reason for this is that the collection agent is only paid if the consumer makes payments, the secondary reason is that a payment restarts the statute of limitations on the debt. Make sure you know the debt statute of limitations in your state. Understand your rights to dispute Consumers have the right to dispute any information that they believe is erroneous on their credit reports. This does not have to be done by an attorney or a “credit repair company”, it may be done by the consumer at no charge. Credit reporting agencies are required by law to respond to all disputes. Know the signs of a scam The following are some hints that you may be facing a credit repair scam: • Upfront payments — the company is asking the consumer to pay an upfront fee before they do any work • Misinformation — the company does not advise you of your rights to remove certain items on your own or tells you to not contact the credit reporting agency • Suggests fraud — any company that suggests the debtor dispute valid debt or apply for a new social security number is likely not legitimate When a consumer receives a solicitation for a credit repair service, they should be provided with a copy of the Consumer Credit File Rights Under State and Federal Law. This document explains the consumers rights and helps protect them against fraud by credit repair scams. According to the Federal Trade Commission, consumers have a right to receive a contract that clearly spells out what the credit repair company intends to do on their behalf. It is important to note that under specific laws, credit repair companies cannot request payment prior to performing the services promised to consumers. Category:Home › Other • Pomegranates: A newly discovered superfood • Where did the joke why did the chicken cross the road come from and why is it funny? • Can mothers diagnosed with bipolar disorder make good parents? • Spiritual evolution of human consciousness • Tips for getting a college basketball scholarship • Living with Pseudotumor cerebri (PTC) • Caring for the caregiver • Technologys impact on society
