This article discusses how to know credit repair spam. There are so many credit repair organizations. They try to take advantage of people with a damaged credit score. How can cardholders be protected from credit repair spams? How do you know a credit repair spam
The credit repair institutions are governed by the Credit Repair Organizations Act. This federal law demands any credit repair service to fulfill some obligations to you. Any credit repair company that doesn’t follow these rules is a scammer.
How To Know A Credit Repair Spam: Signs Of A Credit Repair Spam
- When you did not receive a copy of the “Consumer Credit File Rights Under State and Federal Law” informing you of your rights to obtain a credit report and dispute inaccurate credit report information. Credit repair institutions should inform you that you can do these things on your own
- When you did not see a copy of the contract to review before signing it. Carefully review the contract before signing it.
- A demand for payment before service
- When there is a promise to remove accurately reported information from your credit report.
- They tell you to sign a form to waive your rights.
- When the contract does not have the following information:
- The amount you will pay for the services they will give to you.
- Details about the services to be done for you.
- The date the services will be performed.
- Name and business address of the organization
- A statement indicating you can cancel the contract within 3 days.
How To Know A Credit Repair Spam: Why Trust Credit Repair Spams?
Not all credit repair firms are bad, some are not scammers. Know the followings:
- A sincere credit card firm will meet or consult you before drafting a plan on how to repair your credit. They obtain your credit history and report from you before they do anything.
- They as well explain your rights to you carefully. Such as telling you to dispute an error on your report by writing to the credit bureau.
- No promise of raising your score to a particular point. A real credit card repair firm will tell you how they were able to help their other clients repair or improve their credits.
Also, do not be in a hurry to hire a credit repair firm, do some research to find out which one is real. You can do this with BBB, FTC or involve your state attorney general.
Have You Been Scammed? Here is What To Do
Sue the company that spammed you. Keeping silent about it will hurt you and others who may still go to that company for credit repair. You can as well report the organization to your state attorney general. Moreover, you can as well send a complaint to the Federal Trade Commission, the Better Business Bureau, and the Consumer Financial Protection Bureau. By taking any of these actions, you can recover the money you paid to them while you work harder to rebuild your credit.