Credit repair scams are everywhere. Unfortunately, many people desperately in need of credit help fall victim to these scams, like predators attacking their prey. We’ve seen it all too many times and it’s always a terrible experience each time.
However, with Credit Advice, we would never treat you this way. We are NOT a scam. We handle things by the book in an efficient manner to get you the credit repair help that you need.
We can also school you on how to identify and avoid credit repair scams so that you don’t become another unfortunate statistic. You may have lost so much already. It would be a tragedy if you lost more. Let us show you how to avoid credit repair scams so that you stay protected.
How To Identify Credit Repair Scams
If you don’t have any prior experience with identifying credit repair scams, then this information will help you tremendously. You’ll soon know that you’re encountering a credit repair fraud if the company:
- Tells you not to contact the credit bureaus or reporting agencies directly
- Tells you to provide false information on your credit loan applications
- Insists that you pay them upfront before any work has been completed
- Tells you to dispute accurate information on your credit report
- Neglects to explain your legal rights
- Promises you a new credit identity
The “New Credit Identity” Scam
Credit repair companies that promise you a “new credit identity” claim that they can hide your bad credit history for a fee. However, if you’re naive enough to pay them, these credit repair companies will provide you with a 9-digit number that looks just like a social security number.
They may disguise it as being called a CPN, or credit profile number. They may also have you apply for an EIN, or employer identification number from the IRS. Now, although EIN’s are legitimate numbers that appear on your annual tax returns, it is NOT an appropriate substitute for your own social security number.
These fraudulent credit repair companies may lie about this process being legal or may even be selling stolen social security numbers (often from children). Using a stolen social security number is more commonly known as identity theft. These predators may be having you stealing someone else’s identity without you even knowing it.
It’s a federal crime to:
- Misrepresent your social security number
- Lie on a credit loan application
- Obtain an EIN under false pretenses
If you engage in any of these fraudulent activities, you will be subject to jail time. There is no question about it. This is why you must be aware of the credit repair scams out there. Even if you were unaware as to what these companies were trying to do, the federal government can still prosecute you to the fullest extent of the law.
Your Credit Repair Legal Rights
The Credit Repair Organization Act (CROA) states that it is illegal for credit repair agencies to falsify records or lie about the services that they provide. This law, which is strongly enforced by the Federal Trade Commission (FTC) requires that all credit repair companies thoroughly explain the following:
- Your legal rights presented in a written contract which also details the specific services that they’ll perform on your behalf
- How long it will take to receive credit repair results
- A 3-day legal right to cancel the service
- Any guarantees that they may offer
- The total cost that you will be required to pay for the services
The total cost that you will be required to pay for the services
If a credit repair company that you hired DOES NOT live up to its promises, then you may consider the following options:
- Filing a lawsuit through the federal court for all of your financial losses
- Seek punitive damages
- Join other victims in a class-action lawsuit against the credit repair scam