How to Recognize a Credit Repair Scam

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As you attempt to start consolidating and potentially negotiating some of your outstanding debt, you will probably find yourself wondering if you should go it alone or ask for professional help.

The ease of accessibility to credit cards has made getting in over your head in debt all too easy. The problem arises when you finally realize just how high your balance(s) and minimum payments have gotten. Once your minimum monthly payments become too much for you to afford, you’ve got a problem that needs attention ASAP.

There are several really effective methods you can use in order to strategically pay your debt down until it’s paid off entirely. However, if your debt has reached alarming heights, you will probably find more success if you work with a professional in the debt relief arena.

Credit repair companies are everywhere these days. Since you’re currently dealing with high levels of outstanding debt, you probably receive ads from many of these companies on the regular. Many such companies claim they’ll help you pay off your debt in record time, raise your credit score by leaps and bounds and erase bad marks from your credit report. Some companies even go so far as to promise you a completely new credit history.

Outlandish promises are red flags that should warn you to avoid sharing your personal information. If it sounds too good to be true, rest assured that it is too good to be true. Some other signs of fraudulent credit repair activity include:

  • An offer of a new Social Security Number – A fraudulent credit repair company may attempt to assign you a number to use instead of your Social Security Number, to prevent lenders from seeing your bad credit history. Also called a Credit Privacy Number, these are illegal and are often stolen Social Security Numbers.
  • Advising you to fudge the truth on loan applications – Anyone who tells you to lie to obtain money is a scammer!
  • Requiring you to pay them a hefty sum up front – A reasonable retainer fee requested by a certified debt relief attorney is legitimate and legal. Requests for large amounts of money without seeing results is a reason to walk away.
  • Disputing claims on your credit report that you know to be true
  • Failing to advise you of your legal rights

Instead of following the advice of a fraudulent credit repair company, reach out to a debt relief attorney who has experienced significant success in negotiating with lenders. Ask your attorney for testimonials of previous clients so you’ll know if he’s been able to help people in your same situation before.

Our credit repair methods have saved many, many clients from financial ruin. We can often help you avoid bankruptcy if that is something you desire. On the other hand, we can help you through bankruptcy as well. Bankruptcy is a great way to get a fresh financial do-over.

Negotiating with banks and lenders is our specialty. We can often knock significant amounts off of your overdue balances. We’ll help you formulate a debt payoff schedule and we’ll be with you every step of the way until your outstanding debt is eradicated. Contact us to learn more about how we can help!

 

Image credit: The Comedian
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2 Responses to How to Recognize a Credit Repair Scam

  1. Pingback: Is Fear Keeping You from the Financial Help You Need? | Veitengruber Law

  2. Pingback: What is Credit Counseling? Is it Right for Me? | Veitengruber Law

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