Steering Clear Of Credit Repair Scams With Guidance From The FTC- writedeal.com

Jun 8th 10 Posted by Laura D Rodriguez in Blogging

Steering Clear Of Credit Repair Scams With Guidance From The FTC

These days there are many people who are having difficulties with bad credit. The current economic downturn has afflicted many people and more and more people are considering credit repair remedies to remedy their circumstances. Therefore it makes sense that there are companies cropping up in the credit repair industry and a few of these businesses are deceptive and they cannot help you.

The Federal trade commission has looked into credit repair agencies previously and there are several heavy regulations relating to credit repair organizations. Even so, bad companies still show up. There has been several investigations throughout the years. In February 2006, an investigation called Project Credit Despair brought to light 20 disreputable companies and again in October 2008, an investigation dubbed Operation Clean Sweep found 36 fraudulent operations.

There are several good and upstanding businesses that will help people with credit repair but a consumer needs to beware and look for their credentials carefully. The FTC has offered some recommendations and warnings to heed for consumers about credit repair organizations.

1. It is against the law for a credit repair organization to charge you before any work has been finished. After the first work has been performed then they can charge you and subsequently after more work is performed. However, be aware that completion of work does not guarantee results and you are paying for work completed not necessarily the results of that work, which could take some time to be realized.

2. A good and reputable company will disclose your rights to you. You have the right to complete credit repair on your own and a credit repair organization is there to assist you if you don’t want to take the time or you feel unsure of your own expertise. Many people find great benefit in allowing a professional to handle their disputes and interventions with lenders and credit bureaus but it’s not necessary to employ a professional to assist you.

3. Trying to obtain a new identity through an Employer Identification Number or an EIN to replace your SSN with the intent to avoid your credit history is against the law. Any company that advocates that is one to be very cautious of.

4. Beware of firms that may try to misrepresent their expertise. Check out how long the actual company has been doing business rather than just taking their word for how much experience they have. Combined experience of all of the associates is much different than years actually in business.

5. Any firm that implies an endorsement from the FTC is being dishonest. The FTC does not specifically endorse any company.

For those who have credit problems and need some help with your credit repair there are some very good and professional businesses that have been around for years that can offer you invaluable assistance. It is important, however, to check out the qualifications very carefully because you could come across some companies that will take your money and offer no benefit.

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