Since the economic recession took hold, more and more people have been struggling with bad credit. Therefore it stands to reason that there is much more demand for credit repair solutions and there has been an upswing in the number of new credit repair organizations and companies cropping up. As a consumer you need to know what you should look for it you are contemplating credit repair services.
The Federal Trade Commission has looked into credit repair agencies in the past and there are some heavy regulations regarding credit repair organizations. Even so, bad companies still show up. There have been numerous investigations throughout the years. In February 2006, an investigation called Project Credit Despair brought to light 20 disreputable companies and again in October 2008, an investigation dubbed Operation Clean Sweep found 36 fraudulent operations.
Even so there are some good, upstanding credit repair organizations that can assist you in improving and repairing your credit. However, it is very important that you check out their credentials very carefully. The FTC has given some warnings and some things to look out for when you are searching out a credit repair organization.
? It is unlawful for a credit repair organization to charge you before any work has been completed. After the first work has been performed then they can charge you and subsequently after more work is performed. However, be aware that completion of work does not guarantee results and you are paying for work completed not necessarily the results of that work, which could take some time to be realized.
? A good and reputable company will disclose your rights to you. You have the right to complete credit repair on your own and a credit repair organization is there to assist you if you don?t want to take the time or you feel unsure of your own expertise. Many people find great benefit in allowing a professional to handle their disputes and interventions with lenders and credit bureaus but it is not necessary to have a professional assist you.
? Trying to obtain a new identity through an Employer Identification Number or an EIN to replace your Social Security Number with the intent to avoid your credit history is against the law. Any company that advocates that is one to be very cautious of.
? Beware of companies who may misrepresent their expertise. ?Combined? experience claims can be very misleading. Check out how long the actual company has been in business doing credit repair. There are some credit repair organizations that have been doing business for years, since long before the current credit crunch and recession.
? Beware of any company that implies an endorsement from the FTC. The FTC does not specifically endorse any company and a company that implies or states that is misleading consumers.
There are some professional and trustworthy credit repair companies out there that have been in business for years that can assist you with your credit difficulties. It is up to you, however, to do your own due diligence and determine if a company is providing an honest service that can benefit you.
