Credit Repair Scams: Warnings & Credit Counseling

September 04, 2017

How to Tell if a Credit Repair Company Is a Scam

Avoid Scammers & Work With Reputable Credit Counselors 

If you have a poor credit rating, the promises made by credit repair companies, to provide clean credit histories and access to fresh lines of credit, may seem like a dream come true. Unfortunately, these offers often are too good to be true and may leave your credit or finances in even worse shape than when you started. Below are some of the critical facts you should know about credit repair scams and typical red flags.

Warning Signs of Credit Repair Scams

Fraudulent credit repair companies often:

  • Demand payment upfront;
  • Fail to explain your legal rights;
  • Instruct you to provide false or misleading information to credit bureaus or lenders;
  • Dispute accurate information on your credit report; and
  • Tell you not to contact or respond to credit reporting agencies yourself.

Companies offering “new credit identities” often charge a fee for what they call a “credit profile number” or “credit privacy number” (CPN). These companies will instruct you to apply for credit using this new number as a quick fix. These numbers are often either stolen Social Security Numbers (SSNs) or fraudulently obtained Employer Identification Numbers (EINs). Using a fraudulent SSN or EIN is a federal crime and you could be held responsible for identity theft. Penalties may include steep fines and possible jail time.

The process of improving your credit score takes time and effort, but it can be done. There are many options and your LegalShield provider law firm is ready to help.

Your provider law firm can help dispute inaccurate information on your credit report and file complaints with the Federal Trade Commission (FTC) and State Attorney General (AG). They may also help you negotiate payment or settlement agreements for outstanding debts. Now that you know the warning signs of a credit repair scam, explore LegalShield legal plans and talk with a lawyer at your LegalShield provider law firm today.

Learn How a LegalShield Lawyer Can Help Protect You From Financial Fraud.