Avoiding Fraud In Credit Repair With Guidelines From The FTC


Many people have been struggling with bad credit lately. Therefore many more people are looking at credit repair solutions for their problems. As of late there have been many more credit repair organizations cropping up but not all of these are completely honest. Some of them are fraudulent and as a consumer you need to beware.

What is the FTC doing?

The FTC is in charge of handling consumer complaints and issues. Over the years the FTC has conducted some serious investigations into the credit repair industry. In February 2006, in an investigation called Project Credit Despair 20 disreputable credit repair companies were brought down. In October 2008, another one called Operation Clean Sweep targeted 36 fraudulent operations.

There are some good and upstanding organizations that can help people with credit repair but a consumer needs to beware and check out their credentials carefully. The FTC has offered some suggestions and warnings to heed for consumers about credit repair organizations.

  • A legal and reputable credit repair company will not charge you in advance of completing some work. Legally they can only charge you after the first work has been performed. After that they can charge you as the work in completed. Completing the work and getting results are not the same however, so guarantees of success should be evaluated carefully.
  • You have the right to complete credit repair on your own and a good credit repair company will disclose your rights. A reputable credit repair law firm can offer affordable legal services for their clients who would prefer to employ a professional rather than spend the time and energy on their own. Credit disputes and interventions can be easier if you let a professional handle it. You should read the entire Fair Credit Reporting Act in order to know all of your rights as a consumer.
  • A legal and reputable credit repair organization will never advocate a new identity. It is against the law to get a new Employer Identification Number to replace a Social Security Number for the intent of avoiding credit problems.
  • Check out how long the company has actually been doing business. Statements that mention ?combined? experience can be misleading. There are some good credit repair organizations that have been in business for a long time, long before the current economic recession hit.
  • The FTC does not give an endorsement to any company and if a company implies that they have FTC endorsement they are being misleading.

If you have credit problems and need some help with your credit repair there are some very good and professional companies that have been around for years that can offer you valuable 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 provide no benefit.


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