Getting a Personal
Cash Advance in Spite
of Poor Credit

10 Tips to Avoid Credit-Repair Scams
by Ken Amaro

Every year, one resolution should be to check your credit history.

Unfortunately if you wait until a problem erupts, you may fall victim to individuals or companies that charge to fix your credit.

Here are 10 ways to tell if you are the target of a credit- repair scam.

1. You are not informed of your rights.
If a company representative doesn't explain your rights under the Fair Credit Reporting Act, that's a tip-off. To protect yourself, learn your rights under the law.

2. You're not asked to sign a service contact.
The law now requires these companies to give you an agreement telling you exactly what they will do, fees they plan to charge and when those fees will be considered collectible. Make sure you get everything in writing.

3. You can't find no physical address.
Most reputable companies will have a location, an address that you can go to. If they don't, it is fair to assume that they have something to hide and you have a reason to leave.

4. The business won't explain its process.
If representatives won't tell you how the service works, are avoiding your questions or simply say 'Just trust us,' buyer beware.

5. The company promises to delete bad credit.
If it claims the ability to delete collections, late payments, repossessions or even a bankruptcy filing, be wary. No one can just delete anything. It is up to the credit bureaus. And if the information is correct, it will remain.

6. You get a cold call after filing bankruptcy.
Bankruptcy filings are public record. If you get an unexpected call from a credit-repair agency that promises it can get you a new credit report quickly, don't believe the hype. It will only take money you can't afford to lose.

7. Representatives say they accept only cash.
Don't let desperation cloud your judgement. Pay by check or some other form of reversible payment, so you can create a paper trail. You may need it to protect you.

8. The company claims to know a secret loophole.
If a salesman tells you that the company has a secret system to improve your credit or that it can do something you can't do, don't believe it.

9. The company claims it can create a new credit report.
The pitch is for a new record with all of the bad items completely gone. That is illegal, and you may be the one in trouble. Don't do it.

10. The company demands a large up-front payment.
This is a huge red flag. The recent Federal Credit Repair Organizations Act prohibits companies from accepting payment before service is rendered. So if someone wants a bunch of money before helping you on your credit, run the other way.

Details: the Federal Trade Commission, www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-credit-repair.shtml

Copyright 2011 Gannett Company, Inc. All Rights Reserved

Source: Gannett News Service, http://www.gannett.com/,
February 23, 2011, byline: Ken Amaro  

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