Progressive Rants and Raves

The most important thing you should look for when searching for ethical credit repair services is the affiliations of the organization under consideration. Every trustworthy agency will be happy to share with you their references on request. Here are a few tips that you should keep in mind in order to steer clear of scam credit repair companies.

1. Make certain the agency is affiliated with the Ethical Credit Repair Alliance (ECRA) or a like-minded regulatory body. You will often hear it advised to select businesses who have membership in the BBB (Better Business Bureau) However, in the case of. those businesses affiliated with the ECRA are most likely to be the best choices.

This body accepts only those members who agree to a stringent code of ethics and the member companies will represent the best interests of their clients. All credit repair companies who are members of this organization will be held to high ethical standards in their business practices. This means protection for you, the consumer, from being “taken” by a predatory scammer.

2. Know what credit repair is before seeking help. Most of those who end up being cheated while they are seeking ways out of a financial jam, do not understand credit repair. It’s important to know what these companies are able to do and what they cannot do.

Only when you know clearly this difference, can you identify those companies who offer you false promises. For instance, derogatory accounts on your credit report cannot be removed if the credit bureaus verify their accuracy. Many credit repair companies telling you that they can give you a clean credit report within a month or less. Think this over carefully for a moment; is this possible to do by legal means? If you answer “No” are you sure you want to engage in methods that are illegal?

3. Avoid unsolicited offers you receive through email. At a time when you find yourself in financial desperation, don’t think for a moment that it’s good fortune that sent you such an e-mail. Such e-mails are sent out by unscrupulous agencies who use unethical means to gather e-mail addresses, and are sending out millions of spam emails in hopes of tricking some needy soul whom they can “take for a ride”!

Beware of such emails. Most of the time these are fraudulent companies hoping to prey on the unwary. Proper credit repair organizations will contact you through various media only after you have indicated you’re interested in receiving them.

4. It is illegal to create a “new identity.” This is one huge fallacy that many people choose to believe, primarily because it looks like the “Silver bullet” that will resolve all their difficulties. This is so easily believed because, again, most people do not understand credit repair. This method is called “File segregation” and it’s most definitely illegal!

Your credit score reflects your entire history of financial behavior. How can you get a second and “new” such history And if you do so, does it seem to you like this would be legal? So it’s easy to see that the credit repair companies that offer this “solution” as a way out of your troubles are fraudulent.

5. If an agency wants full payment prior to rendering any services, look out! Federal Law stipulates that the agency must provide you with a written contract and that they cannot charge you a fee prior to completion of the services offered. You also have a right, by law, to cancel the contract within three days time.

A credit repair business can ask for an upfront charge for initial services, such as a credit report analysis, and then charge a fee every month as they continue to work on improving your credit. But if an agency insist on full payment upfront, there’s a good chance it’s because they know you will refuse to pay once you know that they cannot deliver on their promises. Organizations such as these are fraudulent and you would be will advised to run the other way!

6. Repairing credit is a lengthy process. As we discussed, no reputable company is able to fix credit in a short time or remove verifiable derogatory accounts from your credit report.

At best, less serious issues can be fixed in about 2 -3 months, by getting erroneous information deleted, and through improving how you deal with your finances. More serious problems like foreclosures and repossessions will remain on your report for seven years, notwithstanding the best management of your finances. It will be 10 years before bankruptcies can be deleted. If you are given guarantees of a fast removal, you can be sure of fraud.

7. Not given a contract? Look elsewhere! Always insist on a written contract; and according to the law, this is your right. Dishonest agencies would prefer there’s no contract, and if they do present one, there will be an absence of information regarding what services will be provided, the amount of the payments, and so on. You will acquire an insight into these agencies based on the nature of their contract. If they do not present you with a contract.

8. If anything is guaranteed, beware! Even the top quality companies will make guarantees in regard to results of their credit repair services. They can assure you – after they study your report – that they will improve your score by any available legal means. But to guarantee results is dishonest and unrealistic.

However, the unfortunate reality is, people prefer to hire a organization when they are told what they want to hear, rather than hire a company who is telling the truth. Avoid this all too common self deception! Even though promises of results are more appealing, credit repair companies that guarantee results are ripoffs.

9. Look for counseling services. Many quality credit repair companies will give you free counseling services.

If the agency you are looking at does not, look a bit further. It might not be a trustworthy agency. Trustworthy agencies encourage their clients to become knowledgeable in regard to credit repair. The services the agency performs are for those matters that need professional intervention to improve one’s credit.

10. Wrong advice is a red flag! There are those businesses that encourage you to dispute all the negative entries on your credit report stating “this is not mine..” While this may result in a higher credit score in the short term, the creditors whose trade lines were disputed may later counter it, and the credit bureaus will verify it with subsequent investigations.

Given the fact that the record-keeping habits of the credit bureaus is appallingly poor, it’s extremely likely that there are inaccuracies on your credit report. But credit repair companies that advise you to claim “this is not my account” if it in fact is yours, are not to be trusted.

As you can see, there are plenty of warning signs to alert you of a possible ripoff. The most important action you must take before hiring credit repair companies is to educate yourself on what “credit report” and “credit score” mean. You also need to know the minimum applicable laws prior to hiring assistance with your credit. A good start is to pay a visit to the FTC Bureau of Consumer Protection website and the Ethical Credit Repair Alliance.