There are several companies that prey on those with less than desirable credit. Consumers should be very careful when turning to credit repair companies.

Signs You’re Dealing With a Credit Repair Scam:

• Promises of a brand new credit identity or a clean slate to your credit history
• Payment is requested before any service is provided
• Company tries to stop you from contacting CRAs yourself
• Company tries to dispute information on your credit report that’s correct
• Company tells you to lie on credit applications
• Company doesn’t explain legal rights
• Told to use credit profile/privacy number or are told to apply for an EIN from IRS

Your Credit Repair Rights

• Under the Credit Repair Organization Act, credit repair companies can’t lie about what they can do for you or bill you before services are performed
• They must give a written contract detailing services and rights
• Must provide you with the right to cancel at no cost within three days
• Must give details on how long services will take, the total cost, and any guarantees
• If the CROA is violated, you can sue for losses or what you paid

If a Credit Repair Company violates your rights under the CROA, you are entitled to sue them for damages and/or whatever you paid them. Contact us if you feel your rights have been violated.