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Common Credit Repair ScamsAs more and more people get deeper into debt, and ever-increasing number of credit repair scams are showing up to take advantage of unsuspecting people desperate to repair their credit.
So many individuals turn to credit repair agencies in the hope of finding relief from their situation. Many of these credit agencies are reputable while many more are unfortunately, credit repair scams, which only want to take advantage of people. One of the most common scams is when the credit repair agency claims that they or their software can delete all negative information from your credit report. This is a lie. The three major credit bureaus Experian, Equifax, and Trans Union, do not allow access to their computer databases. Therefore, the credit repair agency cannot alter or delete any information from any of these credit bureaus. Non of the credit bureaus would permit anything that would compromise the security of the data in their files. If these so called credit repair agency could erase all the negative information from accounts, then this would actually render the entire credit reporting system useless as anyone could go in and alter any record at any time. Most of these bad credit repair agency will tell or suggest for you to establish a new credit identity or new credit file by acquiring an Employer Identification Number (EIN) which is a nine-digit from the IRS that you will use instead of your social security number on loan and credit applications. The only problem with this is that it is a felony to lie on a loan or credit application. Another popular scam is when the credit repair agency asks for an up front flat fee for its services, before the ever do anything for you. When this happens, run for the door. Once you give them your money, they will vanish and so will your money. Many times these agency are outside US borders, which makes both the FTC and state governments powerless to help you. Therefore, you have to know whom
you're doing business with, where they are located, and also verify that they are ligament service by contacting the Better Business Bureau. In addition, never pay for any credit repair services up front. The following is a list of warning signs to beware of when looking for a credit repair agency: You have to pay for the credit repair services before any services have been provided.
The credit repair agency does not inform you of your legal rights, or provide you with a written copy of your rights.
They strongly recommend that you do not directly contact any credit bureau.
The credit repair agency either suggest or creates a new credit identity for you by applying for an Employer Identification Number for you to use instead of your social security number.
The credit repair agency advises you to dispute all negative information in your credit report. When you are trying to repair your credit, there are three things to remember:
Accurate and timely negative information cannot be removed from your credit report.
It is illegal to create a new credit identity by using a false Social Security Number.
Only time and a well-devised payment plan to repay your debts will improve your credit report. If something sounds too good to be true it probably is.
Don't get scammed and waste your money.
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