credit repair scam warning sign #3
Not only is this sound advice, but when dealing with credit repair companies, it's the law. The Credit Repair Organizations Act states that:
"No services may be provided by any credit repair organization for any consumer unless a written and dated contract (for the purchase of such services) which meets the requirements of subsection (b) has been signed by the consumer"
This contract must contain certain elements such as the credit repair organization's principal business address, a full description of the credit repair services to be performed, the terms and conditions of payment, and a disclosure statement reading "You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract."
If a credit repair company does not have a contact for you to review and sign, you can scratch them off your list. Of course, once you have the contract, make sure to read it carefully. You might be surprised by how much if a difference there is between what a credit repair company says they are able to do on their website or over the phone, and what they are willing to agree to when it really matters.
1) Offer to Create a New Credit Report
2) Require Large Upfront Payments
3) Don't Have a Contract
4) Only Accept Cash, Checks, or Money Orders
5) Use a Third Party Payment System
Don't Have a Credit Repair Contract
Remember, when it comes to repairing your credit, it isn't a one way street.
The credit repair contract should also include things that you will be expected to do in order to give the company the best chance to achieve your desired results such as making sure they have updated copies of your credit report and letting them know which negative items on your report should be disputed.
Also keep in mind that fulfilling your end of the bargain isn't only important in getting the best results. When credit repair companies offer money back guarantees, many times those guarantees are nullified by a lack of participation on your part. If you do not do your part according to the credit repair contract, you let the credit repair company off the hook if they are unable to achieve the guaranteed results.
When it comes to paying for services, talk is cheap, get it in writing. Credit repair services are no different. If you are paying a company to help you repair your credit, make sure you have a contract in place that states what the credit repair company will do for you, and what your obligations are in return.
The credit repair contract should also include things that you will be expected to do in order to give the company the best chance to achieve your desired results such as making sure they have updated copies of your credit report and letting them know which negative items on your report should be disputed.
Also keep in mind that fulfilling your end of the bargain isn't only important in getting the best results. When credit repair companies offer money back guarantees, many times those guarantees are nullified by a lack of participation on your part. If you do not do your part according to the credit repair contract, you let the credit repair company off the hook if they are unable to achieve the guaranteed results.
Not only is this sound advice, but when dealing with credit repair companies, it's the law. The Credit Repair Organizations Act states that:
"No services may be provided by any credit repair organization for any consumer unless a written and dated contract (for the purchase of such services) which meets the requirements of subsection (b) has been signed by the consumer"
This contract must contain certain elements such as the credit repair organization's principal business address, a full description of the credit repair services to be performed, the terms and conditions of payment, and a disclosure statement reading "You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract."
If a credit repair company does not have a contact for you to review and sign, you can scratch them off your list. Of course, once you have the contract, make sure to read it carefully. You might be surprised by how much if a difference there is between what a credit repair company says they are able to do on their website or over the phone, and what they are willing to agree to when it really matters.
Warning Signs of a Credit Repair Scam
1) Offer to Create a New Credit Report
2) Require Large Upfront Payments
3) Don't Have a Contract
4) Only Accept Cash, Checks, or Money Orders
5) Use a Third Party Payment System
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I signed up with Lexington Law about 1 1/2 years ago at the suggestion of a man I did not know as I was waiting in line at the bank. He heard me talking about my bad credit, and how my life had literally been ruined and I couldn't even get an apartment. He told me about Lexington Law on the internet and told me he had signed up and that it was the best thing he had ever done. He explained that it would take more than a year, maybe longer but that it would be well worth the investment and that slowly, over time, it would become apparent that my credit history really was improving. I have made bad choices in my past that directly affected my credit. However, I have matured and knew I needed to do something legally but was afraid I could never afford an attorney to clean up my credit. ... moreCarol
Lexington Law Customer
