Credit Repair Scams

Boo! There are credit repair scams out there. No need to be afraid – just be a little cautious and a lot skeptical . In general, hold onto your wallet and be wary of any big promises or fast fixes. In specific,

1: A common credit repair scam involves boasting about an “inside relationship” with reporting bureaus and knowing about some super-secret regulation or handshake that will make them delete the unflattering items from your report. There is no such thing.

2. Another popular credit repair scam includes the con, “We can convince your creditor that you really don’t owe this debt.” It’s a nutty rap, like claiming the Internal Revenue Service is illegal or challenging the validity of U.S. currency.

3: Anyone who claims they can get you a new, clean credit report has a place on the repair scam all-star team. Should they try to convince you to apply for a new taxpayer identification number or Employer Identification Number (EIN) for the purpose of rebuilding or rewriting your credit, beware. That’s a felony.

4: A familiar credit repair scam also involves “Clean credit – fast!” or “We have the contacts to get you a mortgage (or credit card loan).” Don’t believe it. Con artists dangle those promises to desperate consumers as an incentive to pay them. Imitating credit-counseling agencies or mortgage companies is its own credit repair scam industry.

5: The Credit Repair Organizations Act prohibits any company from taking money until after it does what it promised. Anyone is trying to bypass that federal law (or banking on the fact that you don’t know about it) by getting you to send, charge or wire money upfront is perpetrating a credit repair scam.