Have you heard any of the following claims? “We can repair your credit in just 10 days – GUARANTEED!” “We can remove negative items from your credit file and replace them with positive ones!” “We can help you create a new identity with perfect credit!”… If any of these claims sound too good to be true, that’s because they are. Don’t be scammed. If you commit fraud by following illegal advice, you could be subject to prosecution.

Major warning signs to look for from scam credit repair companies are companies that:

- Claim they are able to create a new identity, employer identification number, or social security number for you

- Claim you need to pay them to dispute inaccurate items in your credit report (you can do this yourself for free)

- Advise you to dispute ACCURATE items in your credit report

- Do not explain your legal rights and personal responsibilities when it comes to credit repair

- Do not provide you with a clear credit repair contract that includes all of the services they will provide along with a total cost and completion date

- Expect you to pay costs up front before completing any counseling or credit repair services.

In September 1996, the Federal Trade Commission enacted the Credit Repair Organizations Act (CROA) to protect consumers from scam artists posing as credit repair companies. Some specific protections are:

- Credit repair companies cannot make claims about the services they provide that are illegal. Remember, if it sounds too good to be true, it probably is.

- Credit repair companies cannot charge you for any services up front. You can only be charged once their promised (and legal) services have been completed.

- Credit repair companies cannot perform any services without a signed contract stating the exact measures they will take to help you repair your credit, how much it will cost in total, and how long it will take before you see results.

- All credit repair companies must complete a three day waiting period after you sign the contract to give you the opportunity to review and/or cancel the contract without obligation if you change your mind.

If you feel you have been a victimized by a shady credit repair organization, you have the right to sue them under the Credit Repair Organizations Act (CROA). You may be entitled to damages that you have suffered due to their unethical activities. You can file a complaint by with the Federal Trade Commission (FTC) online at https://www.ftccomplaintassistant.gov or by calling 1-877-FTC-HELP.

By: Ken S